‘‘(v) An individual who would be de-
scribed in clause (iii) for the taxable year 
if—
‘‘(I) the requirements of clause 
(iv) are met with respect to the indi-
vidual, and 
‘‘(II) the requirements of sub-
paragraph (B) are met with respect to 
the individual in lieu of the support 
test of section 152(a). 
‘‘(B) RESIDENCY
TEST.—The require-
ments of this subparagraph are met if an indi-
vidual has as his principal place of abode the 
home of the taxpayer and—
‘‘(i) in the case of an individual who 
is an ancestor or descendant of the tax-
payer or the taxpayer’s spouse, is a mem-
ber of the taxpayer’s household for over 
half the taxable year, or 
‘‘(ii) in the case of any other indi-
vidual, is a member of the taxpayer’s 
household for the entire taxable year. 
‘‘(C) SPECIAL RULES WHERE MORE THAN 
1 ELIGIBLE CAREGIVER.—
‘‘(i) IN GENERAL.—If more than 1 in-
dividual is an eligible caregiver with re-
spect to the same applicable individual for 
taxable years ending with or within the 
same calendar year, a taxpayer shall be 
treated as the eligible caregiver if each 
such individual (other than the taxpayer) 
files a written declaration (in such form 
and manner as the Secretary may pre-
scribe) that such individual will not claim 
such applicable individual for the credit 
under this section. 
‘‘(ii) NO AGREEMENT.—If each indi-
vidual required under clause (i) to file a 
written declaration under clause (i) does 
not do so, the individual with the highest 
modified adjusted gross income (as defined 
in section 32(c)(5)) shall be treated as the 
eligible caregiver. 
‘‘(iii) MARRIED
INDIVIDUALS
FILING 
SEPARATELY.—In the case of married indi-
viduals filing separately, the determination 
under this subparagraph as to whether the 
husband or wife is the eligible caregiver 
shall be made under the rules of clause (ii)
(whether or not one of them has filed a 
written declaration under clause (i)). 
‘‘(d) IDENTIFICATION
REQUIREMENT.—No credit 
shall be allowed under this section to a taxpayer with re-
spect to any applicable individual unless the taxpayer in-
cludes the name and taxpayer identification number of 
such individual, and the identification number of the phy-
sician certifying such individual, on the return of tax for 
the taxable year. 
‘‘(e) TAXABLE YEAR MUST BE FULL TAXABLE 
YEAR.—Except in the case of a taxable year closed by rea-
son of the death of the taxpayer, no credit shall be allow-
able under this section in the case of a taxable year cov-
ering a period of less than 12 months. 
‘‘(f) CARRYFORWARD OF UNUSED CREDIT.—If the 
credit allowable under subsection (a) exceeds the limita-
tion imposed by subsection (b)(4) for the taxable year, 
such excess shall be carried to the succeeding taxable year 
and added to the credit allowable under subsection (a) for 
such taxable year.’’. 
(b) CONFORMING AMENDMENTS.—
(1) Section 6213(g)(2) of the Internal Revenue 
Code of 1986 is amended by striking ‘‘and’’ at the 
end of subparagraph (L), by striking the period at 
the end of subparagraph (M) and inserting ‘‘, and’’,
and by inserting after subparagraph (M) the fol-
lowing new subparagraph: 
‘‘(N) an omission of a correct TIN or phy-
sician identification required under section 
25C(d) (relating to credit for taxpayers with 
long-term care needs) to be included on a re-
turn.’’. 
(2) Section 23(b)(4) is amended by striking 
‘‘this section’’ and inserting ‘‘this section and section 
25C’’. 
(3) Section 24(b)(3)(B) is amended by striking 
‘‘23 and 25B’’ and inserting ‘‘23, 25B, and 25C’’. 
(4) Section 25(e)(1)(C) is amended by inserting 
‘‘25C,’’ after ‘‘25B,’’. 
(5) Section 26(a)(1) is amended by striking 
‘‘and 25B’’ and inserting ‘‘, 25B, and 25C’’. 
(6) Section 904(h) is amended by striking ‘‘and 
25B’’ and inserting ‘‘, 25B, and 25C’’. 
(7) Section 1400C(d) is amended by striking 
‘‘and 25B’’ and inserting ‘‘, 25B, and 25C’’. 
(8) The table of sections for subpart A of part 
IV of subchapter A of chapter 1 of such Code is 
amended by inserting after the item relating to sec-
tion 25B the following new item:
‘‘25C. Credit for taxpayers with long-term care needs.’’.
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
the date of the enactment of this Act. 
SEC. 4. ADDITIONAL CONSUMER PROTECTIONS FOR LONG-
TERM CARE INSURANCE. 
(a) ADDITIONAL
PROTECTIONS
APPLICABLE
TO 
LONG-TERM CARE INSURANCE.—Subparagraphs (A) and 
(B) of section 7702B(g)(2) of the Internal Revenue Code 
of 1986 (relating to requirements of model regulation and 
Act) are amended to read as follows: 
‘‘(A) IN GENERAL.—The requirements of 
this paragraph are met with respect to any con-
tract if such contract meets—
‘‘(i) MODEL
REGULATION.—The fol-
lowing requirements of the model regula-
tion: 
‘‘(I) Section 6A (relating to guar-
anteed renewal or noncancellability), 
and the requirements of section 6B of 
the model Act relating to such section 
6A. 
‘‘(II) Section 6B (relating to pro-
hibitions on limitations and exclu-
sions).
‘‘(III) Section 6C (relating to ex-
tension of benefits). 
‘‘(IV) Section 6D (relating to 
continuation or conversion of cov-
erage). 
‘‘(V) Section 6E (relating to dis-
continuance and replacement of poli-
cies). 
‘‘(VI) Section 7 (relating to unin-
tentional lapse). 
‘‘(VII) Section 8 (relating to dis-
closure), other than section 8F there-
of. 
‘‘(VIII) Section 11 (relating to 
prohibitions against post-claims un-
derwriting). 
‘‘(IX) Section 12 (relating to 
minimum standards). 
‘‘(X) Section 25 (relating to pro-
hibition against preexisting conditions 
and probationary periods in replace-
ment policies or certificates). 
‘‘(XI) The provisions of section 
26 relating to contingent nonforfeiture 
benefits, if the policyholder declines
the offer of a nonforfeiture provision 
described in paragraph (4). 
‘‘(ii) MODEL ACT.—The following re-
quirements of the model Act: 
‘‘(I) Section 6C (relating to pre-
existing conditions). 
‘‘(II) Section 6D (relating to 
prior hospitalization). 
‘‘(III) The provisions of section 8 
relating to contingent nonforfeiture 
benefits, if the policyholder declines 
the offer of a nonforfeiture provision 
described in paragraph (4). 
‘‘(B) DEFINITIONS.—For purposes of this 
paragraph—
‘‘(i) MODEL PROVISIONS.—The terms 
‘model regulation’ and ‘model Act’ mean 
the long-term care insurance model regula-
tion, and the long-term care insurance 
model Act, respectively, promulgated by 
the National Association of Insurance 
Commissioners (as adopted as of October 
2000). 
‘‘(ii) COORDINATION.—Any provision 
of the model regulation or model Act listed
under clause (i) or (ii) of subparagraph 
(A) shall be treated as including any other 
provision of such regulation or Act nec-
essary to implement the provision. 
‘‘(iii) 
DETERMINATION.—For 
pur-
poses of this section and section 4980C, 
the determination of whether any require-
ment of a model regulation or the model 
Act has been met shall be made by the 
Secretary.’’. 
(b) 
EXCISE
TAX.—Paragraph 
(1) 
of 
section 
4980C(c) of such Code (relating to requirements of model 
provisions) is amended to read as follows: 
‘‘(1) REQUIREMENTS OF MODEL PROVISIONS.—
‘‘(A) MODEL REGULATION.—The following 
requirements of the model regulation must be 
met: 
‘‘(i) Section 9 (relating to required 
disclosure of rating practices to con-
sumer).’’
‘‘(ii) Section 14 (relating to applica-
tion forms and replacement coverage). 
‘‘(iii) Section 15 (relating to reporting 
requirements), except that the issuer shall 
also report at least annually the number of
claims denied during the reporting period 
for each class of business (expressed as a 
percentage of claims denied), other than 
claims denied for failure to meet the wait-
ing period or because of any applicable 
preexisting condition. 
‘‘(iv) Section 22 (relating to filing re-
quirements for advertising). 
‘‘(v) Section 23 (relating to standards 
for marketing), including inaccurate com-
pletion of medical histories, other than 
paragraphs (1), (6), and (9) of section 
23C, except that—
‘‘(I) in addition to such require-
ments, no person shall, in selling or 
offering to sell a qualified long-term 
care insurance contract, misrepresent 
a material fact; and 
‘‘(II) no such requirements shall 
include a requirement to inquire or 
identify whether a prospective appli-
cant or enrollee for long-term care in-
surance has accident and sickness in-
surance.
‘‘(vi) Section 24 (relating to suit-
ability). 
‘‘(vii) Section 29 (relating to standard 
format outline of coverage). 
‘‘(viii) Section 30 (relating to require-
ment to deliver shopper’s guide). 
The requirements referred to in clause (vi) shall not in-
clude those portions of the personal worksheet described 
in Appendix B relating to consumer protection require-
ments not imposed by section 4980C or 7702B. 
‘‘(B) MODEL ACT.—The following require-
ments of the model Act must be met: 
‘‘(i) Section 6F (relating to right to 
return), except that such section shall also 
apply to denials of applications and any re-
fund shall be made within 30 days of the 
return or denial. 
‘‘(ii) Section 6G (relating to outline of 
coverage). 
‘‘(iii) Section 6H (relating to require-
ments for certificates under group plans). 
‘‘(iv) Section 6J (relating to policy 
summary). 
‘‘(v) Section 6K (relating to monthly 
reports on accelerated death benefits).
‘‘(vi) Section 7 (relating to incontest-
ability period). 
‘‘(C) DEFINITIONS.—For purposes of this 
paragraph, the terms ‘model regulation’ and 
‘model Act’ have the meanings given such terms 
by section 7702B(g)(2)(B).’’. 
(c) ADDITIONAL PROTECTIONS.—
(1) IN
GENERAL.—Paragraph (1) of section 
7702B(g) of such Code (relating to consumer pro-
tection provisions) is amended by striking ‘‘and’’ at 
the end of subparagraph (B), by striking the period 
at the end of subparagraph (C) and inserting a 
comma, and by adding at the end the following new 
subparagraphs: 
‘‘(D) the inflation protection requirement 
of paragraph (5), 
‘‘(E) the lifetime deductible requirement of 
paragraph (6), 
‘‘(F) the interchangeability requirement of 
paragraph (7), and 
‘‘(G) the care management/care coordina-
tion requirement of paragraph (8).’’
(2) REQUIREMENTS.—Subsection (g) of section 
7702B of such Code is amended by redesignating
paragraph (5) as paragraph (9) and by inserting 
after paragraph (4) the following new paragraphs: 
‘‘(5) INFLATION PROTECTION REQUIREMENT.—
The requirement of this paragraph is met if the con-
tract provides for benefit levels to rise at a rate 
which is meaningful to account for reasonably antici-
pated increases in the cost of long-term care services 
covered by the contract. 
‘‘(6) LIFETIME DEDUCTIBLE REQUIREMENT.—
The requirement of this paragraph is met if the con-
tract requires that no more than 1 deductible 
amount applies for all benefits provided during the 
entire lifetime of the covered individual. 
‘‘(7) INTERCHANGEABILITY
REQUIREMENT.—
The requirement of this paragraph is met if the pol-
icyholder has the sole discretion to designate how 
any maximum benefit amount under the contract is 
allocated among the benefits provided under the con-
tract. 
‘‘(8) CARE MANAGEMENT/CARE COORDINATION 
REQUIREMENT.—
‘‘(A) IN
GENERAL.—The requirement of 
this paragraph is met if the contract requires 
that the covered individual is assigned a care 
manager/coordinator.
‘‘(B) CARE MANAGER/COORDINATOR.—For 
purposes of subparagraph (A), the term ‘care 
manager/coordinator’ means an individual who, 
either alone or as part of a team, is responsible 
for performing assessments and reassessments, 
developing plans of care, coordinating the provi-
sion of care, and monitoring the delivery of 
services.’’
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to policies issued more than 1 year 
after the date of the enactment of this Act.
Æ