(a) Except as provided in subsection (b), a long-term care insurance policy may not be delivered or issued for delivery in this state unless the policyholder or certificate holder has been offered the option of purchasing a policy or certificate including a nonforfeiture benefit. The offer of a nonforfeiture benefit may be in the form of a rider that is attached to the policy. In the event the policyholder or certificate holder declines the nonforfeiture benefit, the insurer shall provide a contingent benefit upon lapse that shall be available for a specified period of time following a substantial increase in premium rates.

Terms Used In Tennessee Code 56-42-108

  • Certificate: means any certificate issued under a group long-term care insurance policy, which policy has been delivered or issued for delivery in this state. See Tennessee Code 56-42-103
  • Commissioner: means the commissioner of commerce and insurance. See Tennessee Code 56-42-103
  • Group long-term care insurance: means a long-term care insurance policy that is delivered or issued for delivery in this state and issued to:
    (A) One (1) or more employers or labor organizations, or to a trust or to the trustees of a fund established by one (1) or more employers or labor organizations, or a combination thereof, for employees or former employees, or a combination of employees or former employees, or for members or former members, or a combination of members or former members, of the labor organizations. See Tennessee Code 56-42-103
  • Long-term care insurance: includes group and individual annuities and life insurance policies or riders that provide directly or supplement long-term care insurance. See Tennessee Code 56-42-103
  • Policy: means any policy, contract, subscriber agreement, rider or endorsement delivered or issued for delivery in this state by an insurer, fraternal benefit society, nonprofit health, hospital or medical service corporation, prepaid health plan, health maintenance organization or any similar organization. See Tennessee Code 56-42-103
  • State: when applied to the different parts of the United States, includes the District of Columbia and the several territories of the United States. See Tennessee Code 1-3-105
(b) When a group long-term care insurance policy is issued, the offer required in subsection (a) shall be made to the group policyholder; however, if the policy is issued as group long-term care insurance as defined in § 56-42-103(4)(D), including a continuing care retirement community or other similar entity, the offering shall be made to each proposed certificate holder.
(c) The commissioner shall promulgate regulations specifying the type or types of nonforfeiture benefits to be offered as part of long-term care insurance policies and certificates, the standards for nonforfeiture benefits, and the rules regarding contingent benefit upon lapse, including a determination of the specified period of time during which a contingent benefit upon lapse will be available and the substantial premium rate increase that triggers a contingent benefit upon lapse as described in subsection (a).
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