Idaho Administrative Code › Title IDAPA 18 - Insurance, Department of › Rule 18.04.11 - LONG-TERM CARE INSURANCE MINIMUM STANDARDS › Section 18.04.11.013 - UNINTENTIONAL LAPSE

Current through August 31, 2023
01.
Notice
			 Before Lapse or Termination
. Each insurer offering long-term care
			 insurance, as a protection against unintentional lapse, complies with the
			 following: (3-31-22)
a. No individual
			 long-term care policy or certificate is issued until the insurer has received
			 from the applicant either a written designation of at least one (1) 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 (1)
			 person who is to receive the notice of termination, in addition to the insured.
			 Designation cannot constitute acceptance of any liability on the third party
			 for services provided to the insured. The form used for the written designation
			 will provide space clearly designated for listing at least one (1) person. The
			 designation includes each person's full name and home address. In the case of
			 an applicant who elects not to designate an additional person, the waiver
			 states: "Protection against unintended lapse. I understand that I have the
			 right to designate at least one (1) 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." The insurer notifies the insured of the right to change this
			 written designation, no less often than once every two (2) years.
			 (3-31-22)
b. When the policyholder
			 or certificate holder pays premium for a long-term care insurance policy or
			 certificate through a payroll or pension deduction plan, the requirements
			 contained in Subsection
			 013.01.a. need not be met
			 until sixty (60) days after the policyholder or certificate holder is no longer
			 on such a payment plan. The application or enrollment form for such policies or
			 certificates clearly indicates the payment plan selected by the applicant.
			 (3-31-22)
c. Lapse or termination
			 for nonpayment of premium. No individual long-term care policy or certificate
			 can 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
			 Subsection 013.01.a., at the address
			 provided by the insured for purposes of receiving notice of lapse or
			 termination. Notice is given by first class United States mail, postage
			 prepaid; and notice cannot be given until thirty (30) days after a premium is
			 due and unpaid. Notice is deemed to have been given as of five (5) days after
			 the date of mailing. (3-31-22)