Alabama Administrative Code › Title 482 - ALABAMA DEPARTMENT OF INSURANCE › Chapter 482-1-091 - LONG TERM CARE INSURANCE › Section 482-1-091-.07 - Unintentional Lapse

Current through Register Vol. 42, No. 9, June 28, 2024
Each insurer offering long-term care insurance shall, as a
				protection against unintentional lapse, comply with the following:
(a)
1.
			 Notice before lapse or termination. No individual long-term care policy or
			 certificate shall be issued until the insurer has received from the applicant
			 either a written designation of at least one person, in addition to the
			 applicant, who is to receive notice of lapse or termination of the policy or
			 certificate for nonpayment of premium, or a written waiver dated and signed by
			 the applicant electing not to designate additional persons to receive notice.
			 The applicant has the right to designate at least one person who is to receive
			 the notice of termination, in addition to the insured.
Designation shall not constitute acceptance of any liability on
				the third party for services provided to the insured. The form used for the
				written designation must provide space clearly designated for listing at least
				one person. The designation shall include each person's full name and home
				address. In the case of an applicant who elects not to designate an additional
				person, the waiver shall state: "Protection against unintended lapse. I
				understand that I have the right to designate at least one person other than
				myself to receive notice of lapse or termination of this long-term care
				insurance policy for nonpayment of premium. I understand that notice will not
				be given until thirty (30) days after a premium is due and unpaid. I elect NOT
				to designate a person to receive this notice."
2. The insurer shall notify the insured of
			 the right to change this written designation, no less often than once every two
			 (2) years.
3. When the policyholder
			 or certificateholder pays premium for a long-term care insurance policy or
			 certificate through a payroll or pension deduction plan, the requirements
			 contained in Subparagraph 1. of this Subparagraph (a) need not be met until
			 sixty (60) days after the policyholder or certificateholder is no longer on
			 such a payment plan. The application or enrollment form for such policies or
			 certificates shall clearly indicate the payment plan selected by the
			 applicant.
4. Lapse or termination
			 for nonpayment of premium. No individual long-term care policy or certificate
			 shall lapse or be terminated for nonpayment of premium unless the insurer, at
			 least thirty (30) days before the effective date of the lapse or termination,
			 has given notice to the insured and to those persons designated pursuant to
			 Subparagraph 1. of this Subparagraph (a), at the address provided by the
			 insured for purposes of receiving notice of lapse or termination. Notice shall
			 be given by first class United States mail, postage prepaid; and notice may not
			 be given until thirty (30) days after a premium is due and unpaid. Notice shall
			 be deemed to have been given as of five (5) days after the date of
			 mailing.