The policy, and the materials describing the policy, must fully and clearly state the benefits and limitations of the policy. Currently, by the choice of insurers, all insurance policies for long term care services sold in New York State are indemnity policies . This means that they pay a specific dollar amount for each day you receive long term care services. Premiums for a class of policyholders can change if the insurance company makes that request AND if the State Insurance Department approves the change.
Premiums are certain to change if the optional inflation protection feature is chosen.
In New York State, an insurer of long term care services cannot post-claims underwrite. It is important to understand, however, that even though an insurer cannot post-claim underwrite, the insurer may have the right to deny benefits or rescind the policy if the applicant does not include all relevant medical information that the insurer requests on the application. In New York State, insurance policies for long term care services MAY have policy exclusions and a deductible or waiting period . For more information see Long Term Care and Your Taxes . To protect consumers , the New York State Insurance Department, based on New York State law, sets minimum standards for long term care insurance.