‘‘(A) MODEL REGULATION.—The following 
requirements of the model regulation must be 
met: 
‘‘(i) Section 9 (relating to required 
disclosure of rating practices to consumer). 
‘‘(ii) Section 14 (relating to applica-
tion forms and replacement coverage). 
‘‘(iii) Section 15 (relating to reporting 
requirements). 
‘‘(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. 
‘‘(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). 
‘‘(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) 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.
SEC. 5. TREATMENT OF EXCHANGES OF LONG-TERM CARE 
INSURANCE CONTRACTS. 
(a) IN GENERAL.—Subsection (a) of section 1035 of 
the Internal Revenue Code of 1986 (relating to exchanges 
of insurance policies) is amended by striking the period 
at the end of paragraph (3) and inserting ‘‘; or’’ and by 
adding at the end the following new paragraph: 
‘‘(4) a qualified long-term care insurance con-
tract for another qualified long-term care insurance 
contract.’’. 
(b) QUALIFIED LONG-TERM CARE INSURANCE CON-
TRACT.—Subsection (b) of section 1035 of such Code (re-
lating to definitions) is amended by adding at the end the 
following new paragraph: 
‘‘(4) QUALIFIED LONG-TERM CARE INSURANCE 
CONTRACT.—The term ‘qualified long-term care in-
surance contract’ means— 
‘‘(A) any qualified long-term care insur-
ance contract (as defined in section 7702B), 
and 
‘‘(B) any contract which is treated as such 
by section 321(f)(2) of the Health Insurance 
Portability and Accountability Act of 1996.’’. 
(c) EFFECTIVE DATE.—
(1) IN GENERAL.—The amendments made by 
this section shall apply to exchanges after December 
31, 1997. 
(2) WAIVER OF LIMITATIONS.—If the credit or 
refund of any overpayment of tax with respect to a 
taxable year ending before the date of the enactment 
of this Act resulting from the application of section 
1035(a)(4) of the Internal Revenue Code of 1986, as 
added by this section, is prevented at any time by 
the operation of any law or rule of law (including res 
judicata), such credit or refund may nevertheless be 
allowed or made if the claim therefor is filed before 
the close of the 1-year period beginning on the date 
of the enactment of this Act. 
Æ