Indiana Administrative Code › Title 760 - DEPARTMENT OF INSURANCE › Article 2 - LONG TERM CARE INSURANCE COVERAGE › Rule 8 - Application Forms and Replacement Coverage › Section 8-3 - Notice regarding replacement of accident and sickness or long term care insurance

Current through July 10, 2024
Authority: IC
				  27-8-12-7
Affected: IC
				  27-8-12
Sec. 3.
Upon determining that a sale will involve replacement, an
				  insurer, other than an insurer using direct response solicitation methods, or
				  its insurance producer, shall furnish the applicant, prior to issuance or
				  delivery of the long term care insurance policy, a notice regarding replacement
				  of accident and sickness or long term care coverage. One (1) copy of such
				  notice shall be retained by the applicant, and an additional copy signed by the
				  applicant shall be retained by the insurer. The required notice shall be
				  provided in the following manner:
NOTICE TO APPLICANT REGARDING
REPLACEMENT OF ACCIDENT AND SICKNESS
OR LONG TERM CARE INSURANCE
[Insurance company's name and address]
SAVE THIS NOTICE! IT MAY BE IMPORTANT
TO YOU IN THE FUTURE.
According to [your application] [information you have
				  furnished], you intend to lapse or otherwise terminate existing accident and
				  sickness or long term care insurance and replace it with a long term care
				  insurance policy to be issued by [company name]. Your new policy provides
				  thirty (30) days within which you may decide, without cost, whether you desire
				  to keep the policy. For your own information and protection, you should be
				  aware of and seriously consider certain factors that may affect the insurance
				  protection available to you under the new policy. You should review this new
				  coverage carefully, comparing it with all accident and sickness or long term
				  care insurance coverage you now have, and terminate your present policy only
				  if, after due consideration, you find that purchase of this long term care
				  coverage is a wise decision.
STATEMENT TO APPLICANT BY INSURANCE PRODUCER [BROKER OR OTHER
				  REPRESENTATIVE]: (Use additional sheets, as necessary.)
I have reviewed your current medical or health insurance
				  coverage. I believe the replacement of insurance involved in this transaction
				  materially improves your position. My conclusion has taken into account the
				  following considerations, which I call to your attention:
1. Health conditions, which you may presently
				have (preexisting conditions), may not be immediately or fully covered under
				the new policy. This could result in denial or delay in payment of benefits
				under the new policy, whereas a similar claim might have been payable under
				your present coverage.
2. State law
				provides that your replacement policy or certificate may not contain new
				preexisting conditions or probationary periods. The insurer will waive any time
				periods applicable to preexisting conditions or probationary periods in the new
				policy (or coverage) for similar benefits to the extent such time was spent
				(depleted) under the original policy.
3. If you are replacing existing long term
				care insurance coverage, you may wish to secure the advice of your present
				insurer or its insurance producer regarding the proposed replacement of your
				present policy. This is not only your right, but it is also in your best
				interest to make sure you understand all the relevant factors involved in
				replacing your present coverage.
4.
				If, after due consideration, you still wish to terminate your present policy
				and replace it with new coverage, be certain to truthfully and completely
				answer all questions on the application concerning your medical health history.
				Failure to include all material medical information on an application may
				provide a basis for the company to deny any future claims and to refund your
				premium as though your policy had never been in force. After the application
				has been completed and before you sign it, reread it carefully to be certain
				that all information has been properly recorded.
__________________________
(Signature of Insurance producer, Broker, or Other
				  Representative)
__________________________
[Typed Name and Address of Insurance producer or Broker] The
				  above "Notice to Applicant" was delivered to me on:
__________________________
(Date)
__________________________
(Applicant's Signature)