Compilation of Rules and Regulations of the State of Georgia › Department 120 - OFFICE OF COMMISSIONER OF INSURANCE, SAFETY FIRE COMMISSIONER AND INDUSTRIAL LOAN COMMISSIONER › Chapter 120-2 - RULES OF COMMISSIONER OF INSURANCE › Subject 120-2-16 - LONG TERM CARE INSURANCE › Rule 120-2-16-.07 - Unintentional Lapse

Current through Rules and Regulations filed through June 27, 2024
Each insurer offering long-term care insurance shall, as a
				  protection against unintentional lapse, comply with the following:
(1)
(a)
				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 30 days after a premium is due and unpaid. I elect NOT to
				designate a person to receive this notice." The insurer shall notify the
				insured of the right to change this written designation, no less often than
				once every 2 years.
(b) 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 paragraph (1)(a) need not be met until 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.
(c) 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 30 days
				before the effective date of the lapse or termination, has given notice to the
				insured and to those persons designated pursuant to paragraph (1)(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 30 days after a premium is due and
				unpaid. Notice shall be deemed to have been given as of 5 days after the date
				of mailing.