(1)    Permitted cancellation and refund.

      (a)    No insurer that provides coverage under a long-term care insurance policy may prohibit the insured under the policy from canceling the policy before the expiration of the agreed term.

      (b)    If an insured under a long-term care insurance policy cancels the policy before the expiration of the agreed term, the insurer shall issue a prorated premium refund to the insured.

      (c)    If an insured under a long-term care insurance policy dies during the term of the policy, the insurer shall issue a prorated premium refund to the insured’s estate.

   (2)   Policy provision. Every long-term care insurance policy shall contain a provision that apprises the insured of the insured’s right to cancel and the insurer’s premium refund responsibilities under sub. (1).