An Act To Require Insurance Companies To Reissue QualifYing Long-term Care Partnership Policies
Maine Legislature, Session 125, LD 0642
Committee Amendment CA_A_H209 (House)
Amends: 24-A MRSA §5082

COMMITTEE AMENDMENT "A" to H.P. 472, L.D. 642, Bill, "An Act To 
Require Insurance Companies To Reissue QualifYing Long-term Care Partnership 
Policies" 
Amend the bill by striking out everything after the enacting clause and before the 
summary and inserting the following: 
'Sec. 1. 24-A MRSA §5082 is enacted to read: 
§5082. Long-term Care Partnership Program; availability of qualified policies 
1. Definitions. As used in this section, unless the context otherwise indicates, the 
following terms have the following meanings. 
A. "Eligible policyholder" means: 
0) An individual who holds a qualified individual policy issued before or during 
the notice period by an insurer that actively markets individual partnership 
policies in this State on or after the effective date of this section and is not 
receiving benefits or in a waiting period to receive benefits; or 
(2) An employer or other group policyholder that holds a qualified group policy 
issued before or during the notice period by an insurer that actively markets 
group partnership policies in this State on or after the effective date of this 
section. 
B. "Long-term Care Partnership Program" means the Long-term Care Partnership 
Program established in Title 22, section 3174-00. 
C. "Notice period" means the period between July 1, 2004 and the date an insurer 
begins actively marketing partnership policies in this State. 
D. "Partnership policy" means a long-term care insurance policy with an effective 
date of July 1, 2009 or later that is offered with the intent to meet the requirements of 
the Long-term Care Partnership Program. 
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COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT ,A" to H.P. 472, L.D. 642 
E. "Qualified policy" means a long-term care insurance policy that is offered with 
the intent to meet the requirements of26 United States Code, Section 7702B(b). 
2. Notice. The following provisions apply to an insurer that actively markets a 
partnership policy in this State on or after the effective date of this section. With respect 
to an employer group, an insurer shall provide any notice required under this section to 
the employer that is the policyholder of a qualified policy. 
A. An insurer that actively markets partnership policies in this State as of the 
effective date of this section shall provide notice to an eligible policyholder that 
purchased a qualified policy during the notice period that the policyholder may be 
able to participate in the Long-term Care Partnership Program. The insurer shall 
initiate the exchange process in accordance with subsection 4 within 12 months ofthe 
effective date of this section. 
B. An insurer that begins to actively market partnership policies in this State after the 
effective date of this section shall provide notice to an eligible policxholder that 
purchased a qualified policy during the notice period that the policyholder may be 
able to participate in the Long-term Care Partnership Program. The insurer shall 
initiate the exchange process in accordance with subsection 4 within 12 months of the 
date the insurer begins to market partnership policies in this State. 
3. Request for review. In addition to the requirements of subsection 2, at the 
request of an eligible policyholder of a qualified policy issued prior to the notice period, 
an insurer that actively markets partnership policies in this State shall review the qualified 
policy to identify whether the qualified policy meets the requirements of the Long-term 
Care Partnership Program and take an action described in subsection 4, paragraph A or B. 
If a request for review under this subsection is made more than 12 months after the 
effective date of this section, the insurer has no obligation to review the policy. 
4. Exchange process. An insurer that actively markets partnership policies in this 
State shall identify those qualified policies issued during the notice period that currently 
meet all the requirements of the Long-term Care Partnership Program as specified in 
Bureau of Insurance Bulletin 368 dated January 22, 20 I 0 for use with the Long-term Care 
Partnership Program and those that do not meet all of the requirements and: 
A. For those qualified policies that currently meet all of the requirements, issue to 
each policyholder the Important Notice Regarding Your Policy's Long-term Care 
Insurance Partnership Status, as prescribed in the Appendix of Bureau of Insurance 
Bulletin 368 dated January 22, 2010, along with a policy amendment reflecting the 
effective date of the partnership status; and 
B. For those qualified policies that do not meet all of the requirements, notify each 
policyholder that the policy may be eligible for an exchange to a partnership policy. 
The insurer shall also notify the policyholder that the exchange is subject to 
underwriting and that the premium for the new policy is based on the policyholder's 
attained age on the date of the exchange. The policyholder has 60 days from the date 
of the notice to consider this offer. If the policyholder accepts the offer after 60 days, 
the insurer is not obligated to process an exchange. If the policyholder requests 
additional coverage, the additional coverage is also subject to underwriting and the 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT "A" to H.P. 472, L.D. 642 
premium for the additional coverage must be based on the policyholder's attained age 
on the date the changes take effect. 
5. 
Individual policyholder no longer receiving benefits. 
If an individual 
policyholder is not an eligible policyholder because the policyholder is receiving benefits 
or is in a waiting period to receive benefits, that individual policyholder has 12 months 
from the expiration of any waiting period after which the policyholder does not begin to 
receive benefits or from the expiration of any period when benefits have ended to request 
a review by an insurer as otherwise provided under subsection 3. 
6. Applicability. If an insurer does not actively market both individual and group 
partnership policies in this State, this section applies to that insurer only with respect to 
the particular market in which the insurer actively markets partnership policies.' 
SUMMARY 
This amendment is the majority report of the committee and replaces the bill. The 
amendment requires an insurer that actively markets long-term care insurance policies 
that qualify for the Long-term Care Partnership Program pursuant to the Maine Revised 
Statutes, Title 22, section 3l74-GG to provide notice to an individual or employer that 
purchased a tax-qualified long-term care insurance policy on or after July I, 2004 but 
before the date the insurer began actively marketing partnership policies that the 
individual or employer may be eligible to participate in the Long-term Care Partnership 
Program. The amendment also requires the insurer to identify whether a policy meets the 
requirements of the Long-term Care Partnership Program. If a policy meets the 
requirements, an insurer is required to notify the policyholder and amend the policy's 
effective date to reflect partnership status. If a policy does not meet all of the 
requirements, an insurer is required to offer an exchange of the policy and apply its 
underwriting and rating standards. 
The amendment also permits a policyholder of a tax-qualified policy purchased prior 
to July 1, 2004 to request that an insurer review the policy to determine whether the 
policy meets the requirements of the Long-term Care Partnership Program. If a 
policyholder makes a request more than 12 months after the effective date of the 
provision, the insurer is not obligated to review the policy. 
FISCAL .\U I t. h '-'" < "u_u 
(See attached) 
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COMMITTEE AMENDMENT 
Approved: 04129111 
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LD642 
LR 798(02) 
An Act To Require Insurance Companies To Reissue Qualifying Long-term Care Partnership Policies 
Fiscal Note for Bill as Amended by Committee Amendment 1\" 
Committee: Insurance and Financial Services 
, 
Fiscal Note Required: Yes 
Fiscal Note 
Potential future biennium savings - General Fund 
Fiscal Detail and Notes 
To the extent that provisions in this bill increase participation in the Long-term Care Partnership Program, future year 
savings in costs for the State's Medicaid program may result. The amount and timing of these savings cannot be 
determined at this time. 
LR0798(02) - Fiscal Note - Page I of 1