South Carolina Code of Regulations › Chapter 69 - DEPARTMENT OF INSURANCE › Subchapter 69-44 - LONG TERM CARE INSURANCE › Section 69-44.7 - Unintentional Lapse

Current through Register Vol. 48, No. 6, 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." The insurer shall notify the insured of the right to change this
			 written designation, no less often than once every two (2) years.
(2) 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 A(1) of this Section 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.
(3) 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 A(1) of this
			 Section, 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.