Alabama Administrative Code
Title 482 - ALABAMA DEPARTMENT OF INSURANCE
Chapter 482-1-091 - LONG TERM CARE INSURANCE
Section 482-1-091-.11 - Requirement To Offer Inflation Protection
Current through Register Vol. 42, No. 5, February 29, 2024
(1) No insurer may offer a long-term care insurance policy unless the insurer also offers to the policyholder in addition to any other inflation protection the option to purchase a policy that provides for benefit levels to increase with benefit maximums or reasonable durations which are meaningful to account for reasonably anticipated increases in the costs of long-term care services covered by the policy.
Insurers must offer to each policyholder, at the time of purchase, the option to purchase a policy with an inflation protection feature no less favorable than one of the following:
(2) Where the policy is issued to a group, the required offer in Paragraph (1) of this rule shall be made to the group policyholder; except, if the policy is issued to a group defined in Paragraph d. of Subdivision (4) of Section 27-19-103, Code of Ala. 1975, other than to a continuing care retirement community, the offering shall be made to each proposed certificateholder.
(3) The offer in Paragraph (1) of this rule shall not be required of life insurance policies or riders containing accelerated long-term care benefits.
(4)
(5) Inflation protection benefit increases under a policy which contains these benefits shall continue without regard to an insured's age, claim status or claim history, or the length of time the person has been insured under the policy.
(6) An offer of inflation protection that provides for automatic benefit increases shall include an offer of a premium which the insurer expects to remain constant. The offer shall disclose in a conspicuous manner that the premium may change in the future unless the premium is guaranteed to remain constant.
(7)
I have reviewed the outline of coverage and the graphs that compare the benefits and premiums of this policy with and without inflation protection. Specifically, I have reviewed Plans ______, and I reject inflation protection.
Author: Reyn Norman, Associate Counsel
Statutory Authority: Code of Ala. 1975, §§ 27-2-17, 27-19-100, et seq.