Nebraska Administrative Code › Topic - INSURANCE, DEPARTMENT OF › Title 210 - NEBRASKA DEPARTMENT OF INSURANCE › Chapter 46 - LONG-TERM CARE INSURANCE › Section 210-46-007 - Unintentional Lapse

Current through June 17, 2024
007.01 Each insurer
				offering long-term care insurance shall, as a protection against unintentional
				lapse, comply with the following:
007.01(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 thirty (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 two (2) years.
007.01(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 subsection 007.01(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 shall clearly
				indicate the payment plan selected by the applicant.
007.01(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 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
				007.01(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.