Washington Administrative Code › Title 284 - Insurance Commissioner, Office of the › Chapter 284-23 - Washington life insurance regulations › ACCELERATED LIFE INSURANCE BENEFITS › Section 284-23-650 - Disclosure statement

Current through Register Vol. 24-14, July 15, 2024
(1) For purposes
				of this section, "policy" includes any agreement, amendment, certificate, con-
				tract, endorsement, plan, or statement of coverage that provides for life
				insurance benefits.
(2) The words
				"accelerated benefit" must be included in the required title of every life
				insurance policy or rider that includes a provision for accelerated benefits.
				Accelerated benefits that do not meet the definition of long-term care
				insurance in
				RCW
				 48.83.020(5), shall not be
				described, advertised, marketed, or sold as either long-term care insurance or
				as providing long-term care benefits.
(3) Possible tax consequences and possible
				consequences on eligibility for receipt of medicare, medicaid, Social Security,
				supplemental security income (SSI), or other sources of public funding shall be
				included in every disclosure statement.
(a)
				The disclosure form shall include a disclosure statement. The disclosure
				statement shall be prominently displayed on the first page of the policy,
				rider, or certificate. The disclosure statement shall contain substantially the
				following: "If you receive payment of accelerated benefits from a life
				insurance policy, you may lose your right to receive certain public funds, such
				as medicare, medicaid, Social Security, Supplemental Security, supplemental
				security income (SSI), and possibly others. Also, receiving accelerated
				benefits from a life insurance policy may have tax consequences for you. We
				cannot give you advice about this. You may wish to obtain advice from a tax
				professional or an attorney before you decide to receive accelerated benefits
				from a life insurance policy."
(b)
				For accelerated benefits that do not meet the definition of long-term care
				insurance in
				RCW
				 48.83.020(5), the disclosure
				statement must begin with the following statement: "This accelerated life
				benefit does not and is not intended to qualify as long-term care insurance
				under Washington state law. Washington state law prevents this accelerated life
				benefit from being marketed or sold as long-term care insurance or as providing
				long-term care benefits.
(c) The
				disclosure form must be provided (i) to the applicant for an individual or
				group life insurance policy at the time application is made for the policy or
				rider; and (ii)(A) to the individual insured at the time the owner of an
				individual life insurance policy submits a request for payment of the
				accelerated benefit, and before the accelerated benefit is paid, or (B) to the
				individual certificate holder at the time an individual certificate holder of a
				group life insurance policy submits a request for payment of the accelerated
				benefit, and before the accelerated benefit is paid. It is not sufficient to
				provide this required disclosure statement only to the holder of a group
				policy.