tion to be available if the individual’s par-
ents or guardians are absent.
‘‘(2) ELIGIBLE CAREGIVER.—
‘‘(A) IN GENERAL.—A taxpayer shall be
treated as an eligible caregiver for any taxable
year with respect to the following individuals:
‘‘(i) The taxpayer.
‘‘(ii) The taxpayer’s spouse.
‘‘(iii) An individual with respect to
whom the taxpayer is allowed a deduction
under section 151 for the taxable year.
‘‘(iv) An individual who would be de-
scribed in clause (iii) for the taxable year
if section 151(c)(1)(A) were applied by
substituting for the exemption amount an
amount equal to the sum of the exemption
amount, the standard deduction under sec-
tion 63(c)(2)(C), and any additional stand-
ard deduction under section 63(c)(3) which
would be applicable to the individual if
clause (iii) applied.
‘‘(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.’’.
(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 (K), by striking the period at
the end of subparagraph (L) and inserting ‘‘, and’’,
and by inserting after subparagraph (L) the fol-
lowing new subparagraph:
‘‘(M) an omission of a correct TIN or phy-
sician identification required under section
25B(d) (relating to credit for taxpayers with
long-term care needs) to be included on a re-
turn.’’.
(2) 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 25A the following new item:
‘‘Sec. 25B. Credit for taxpayers with long-term care needs.’’.
(c) EFFECTIVE DATE.—The amendments made by
this section shall apply to taxable years beginning after
December 31, 2000.
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 13 (relating to re-
quirement to offer inflation protec-
tion), except that any requirement for
a signature on a rejection of inflation
protection shall permit the signature
to be on an application or on a sepa-
rate form.
‘‘(XI) Section 25 (relating to pro-
hibition against preexisting conditions
and probationary periods in replace-
ment policies or certificates).
‘‘(XII) 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 Sep-
tember 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 the Internal Revenue Code of 1986 (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 marketing).
‘‘(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 include those portions of the personal work-
sheet described in Appendix B relating to con-
sumer protection requirements 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 6I (relating to policy
summary).
‘‘(v) Section 6J (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) 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.
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