Source: https://www.law.cornell.edu/uscode/text/26/4980C
Timestamp: 2017-05-28 22:24:28
Document Index: 346083267

Matched Legal Cases: ['§ 4980', '§ 4980', '§ 4980', '§\u202f4980', '§\u202f326', '§\u202f327', '§\u202f325']

26 U.S. Code § 4980C - Requirements for issuers of qualified long-term care insurance contracts | US Law | LII / Legal Information Institute
U.S. Code › Title 26 › Subtitle D › Chapter 43 › § 4980C 26 U.S. Code § 4980C - Requirements for issuers of qualified long-term care insurance contracts
§ 4980C.
Requirements for issuers of qualified long-term care insurance contracts
There is hereby imposed on any person failing to meet the requirements of subsection (c) or (d) a tax in the amount determined under subsection (b).
The amount of the tax imposed by subsection (a) shall be $100 per insured for each day any requirement of subsection (c) or (d) is not met with respect to each qualified long-term care insurance contract.
In the case of a failure which is due to reasonable cause and not to willful neglect, the Secretary may waive part or all of the tax imposed by subsection (a) to the extent that payment of the tax would be excessive relative to the failure involved.
(c) ResponsibilitiesThe requirements of this subsection are as follows:
(1) Requirements of model provisions
(A) Model regulationThe following requirements of the model regulation must be met:
Section 13 (relating to application forms and replacement coverage).
Section 14 (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 waiting period or because of any applicable preexisting condition.
Section 20 (relating to filing requirements for marketing).
(iv) Section 21 (relating to standards for marketing), including inaccurate completion of medical histories, other than sections 21C(1) and 21C(6) thereof, except that—
in addition to such requirements, no person shall, in selling or offering to sell a qualified long-term care insurance contract, misrepresent a material fact; and
no such requirements shall include a requirement to inquire or identify whether a prospective applicant or enrollee for long-term care insurance has accident and sickness insurance.
Section 22 (relating to appropriateness of recommended purchase).
Section 24 (relating to standard format outline of coverage).
Section 25 (relating to requirement to deliver shopper’s guide).
(B) Model ActThe following requirements of the model Act must be met:
Section 6F (relating to right to return), except that such section shall also apply to denials of applications and any refund shall be made within 30 days of the return or denial.
Section 6I (relating to policy summary).
Section 6J (relating to monthly reports on accelerated death benefits).
For purposes of this paragraph, the terms “model regulation” and “model Act” have the meanings given such terms by section 7702B(g)(2)(B).
(2) Delivery of policy
If an application for a qualified long-term care insurance contract (or for a certificate under such a contract for a group) is approved, the issuer shall deliver to the applicant (or policyholder or certificateholder) the contract (or certificate) of insurance not later than 30 days after the date of the approval.
(3) Information on denials of claimsIf a claim under a qualified long-term care insurance contract is denied, the issuer shall, within 60 days of the date of a written request by the policyholder or certificateholder (or representative)—
provide a written explanation of the reasons for the denial, and
make available all information directly relating to such denial.
The requirements of this subsection are met if the issuer of a long-term care insurance policy discloses in such policy and in the outline of coverage required under subsection (c)(1)(B)(ii) that the policy is intended to be a qualified long-term care insurance contract under section 7702B(b).
(e) Qualified long-term care insurance contract defined
For purposes of this section, the term “qualified long-term care insurance contract” has the meaning given such term by section 7702B.
(f) Coordination with State requirements
If a State imposes any requirement which is more stringent than the analogous requirement imposed by this section or section 7702B(g), the requirement imposed by this section or section 7702B(g) shall be treated as met if the more stringent State requirement is met.
(Added Pub. L. 104–191, title III, § 326(a), Aug. 21, 1996, 110 Stat. 2065.)
Pub. L. 104–191, title III, § 327, Aug. 21, 1996, 110 Stat. 2066, provided that:
The provisions of, and amendments made by, this part [part II (§§ 325–327) of subtitle C of title III of Pub. L. 104–191, enacting this section and amending section 7702B of this title] shall apply to contracts issued after December 31, 1996. The provisions of section 321(f) [set out as an Effective Date note under section 7702B of this title] (relating to transition rule) shall apply to such contracts.
“(b)Issuers.—
The amendments made by section 326 [enacting this section] shall apply to actions taken after December 31, 1996.”