Section Ins 3602.07 - Inflation Protection Requirements for Long-Term Care Partnership Policies and CertificatesPursuant to §1917(b)(1)(C)(iii)(IV) of the Social Security Act 42 U.S.C. § 1396p(b)(1)(C)(iii)(IV), an insurer shall not issue a policy or certificate marketed or represented as a partnership policy unless the policy or certificate complies with the following inflation protection requirements:
(a) For a person who is less than 61 years of age, as of the date of purchase, the policy or certificate shall provide compound annual inflation protection from the date of purchase as follows:(1) At the time of purchase, insurers shall offer to each applicant the option to purchase compound annual inflation protection that automatically increases each year on a compounded basis at a rate of not less than 5.0 percent annually throughout the interval of coverage. The inflation protection shall automatically increase benefits each year on a compounded basis;(2) If the applicant declines the offer of inflation protection specified in (1) above, then the insurer shall offer and the applicant shall purchase and retain compound annual inflation protection until the insured attains age 61 or goes on claim status, whichever comes first. The inflation protection is required to automatically increase benefits each year on a compounded basis at a rate that the insured elects, which may be in a range from one percent to 4 percent or tied to the consumer price index for all urban consumers (CPI-U); and(3) A person who is less than 61 years of age that has purchased a long-term care partnership policy or certificate with the required compound inflation protection specified in this paragraph may, upon attaining 61 years of age, choose to amend the compound inflation protection provision in the policy or certificate in accordance with the requirements specified in (b) below.(b) For a person who is at least 61 years of age but less than 76 years of age as of the date of purchase, the policy or certificate shall provide an acceptable level of inflation protection from the date of purchase as follows: (1) Regardless of the insured's health status, the insurer shall offer and the insured shall purchase and retain inflation protection until the insured attains age 76 or goes on claim status, whichever comes first;(2) Acceptable coverage shall include automatic annual inflation protection, either simple or compound, paid with either level or stepped premium;(3) Inflation protection as required by this paragraph shall be in a range of from one percent to 5 percent or tied to the consumer price index for all urban consumers (CPI-U); and(4) A person who is less than 76 years of age that has purchased a long-term care partnership policy or certificate with the required inflation protection specified in this paragraph may, upon attaining 76 years of age, choose to amend the inflation protection provision in the policy or certificate in accordance with the requirements specified in (c) below.(c) For any person who has attained the age of 76, inflation protection may be provided but is not required. However, the long-term care inflation protection option specified in Ins 3601.12 relating to Requirement to Offer Inflation Protection shall be offered to any applicant for a partnership policy who has attained the age of 76.(d) An option to purchase inflation protection at a future time shall not constitute compliance with the inflation protection requirements set forth in (a) and (b) above.(e) The inflation protection provisions in this section shall not be available under the following policies: (1) Riders for group and individual annuities and life insurance policies that provide long-term care insurance; and(2) Life insurance policies: a. That accelerate the death benefit for one or more of the qualifying events of terminal illness, medical conditions requiring extraordinary medical intervention, or permanent institutional confinement;b. That provide the option of a lump-sum payment for those benefits; andc. Where neither the benefits nor the eligibility for the benefits is conditioned upon the receipt of long-term care.N.H. Admin. Code § Ins 3602.07
Amended by Volume XXXVIII Number 06, Filed February 8, 2018, Proposed by #12472, Effective 2/16/2018, Expires 2/16/2028.