Current through Register Vol. 48, No. 12, March 22, 2024
a) In accordance with section 6021 of the
Deficit Reduction Act of 2005 (
42 USC
1305 ) and the Illinois Long-Term Care
Partnership Program Act [215 ILCS 132 ], in addition to the applicable
provisions of this Part, the provisions of this Section shall apply to any
qualified State long-term care insurance partnership policy.
b) The policy provides the following
inflation protections:
1) If the policy is
sold to an individual who has not attained age 61 as of the date of purchase,
the policy shall provide compound annual inflation protection at a rate of at
least 3%, or at a rate based on the changes in the Consumer Price Index for All
Urban Consumers: U.S. city average as determined by the Bureau of Labor
Statistics of the U.S. Department of Labor.
2) If the policy is sold to an individual who
has attained age 61 but has not attained age 76 as of the date of purchase, the
policy shall provide inflation protection expressed in simple or compound
interest annually at a rate of at least 3% or at a rate based on the changes in
the Consumer Price Index for All Urban Consumers: U.S. city average as
determined by the Bureau of Labor Statistics of the U.S. Department of
Labor.
3) If the policy is sold to
an individual who has attained age 76 as of the date of purchase, the policy
may, but is not required to, provide some level of inflation
protection.
c) Offers of
Exchange
1) An insurer shall offer, on a
onetime basis, in writing, to all existing policyholders that were issued a
long-term care policy on or after May 5, 2008, the date of the last long-term
care (LTC) regulation revision, the option to exchange their existing LTC
coverage for coverage that is intended to qualify under Illinois' Long-Term
Care Partnership Program (LTCPP). The insurer shall provide written
notification of this onetime offer within 12 months from the date on which the
company begins to offer partnership coverage in this State. The offer shall be
made on a nondiscriminatory basis without regard to the age or health status of
the insured and shall remain open for a minimum of 90 days from the date of
mailing by the insurer.
2) The
mandatory offer of an exchange shall only apply to products issued by the
insurer that are comparable to the type of policy form, such as group policies
and individual policies, and on the policy series that the company has
certified as partnership qualified. This exchange may be subject to
underwriting.
3) Premiums may be
adjusted based on the results of the underwriting process or the exchange may
be denied by the insurer.
4) A
policy received in an exchange after the effective date of Illinois' LTCPP is
treated as newly issued and is eligible for qualified policy status. For
purposes of applying the Medicaid rules relating to qualified LTC partnership
policies, the addition of a rider, endorsement or change in schedule page for a
policy may be treated as giving rise to an exchange. The effective date of the
LTC partnership policy shall be the date the policy was exchanged.
d) Filing Requirements for
Long-Term Care Insurance Partnership Policies
1) A partnership policy shall not be issued
or issued for delivery in this State unless filed with and approved by the
Director in accordance with the procedures set forth in Section 143 of the
Code. Any policy submitted for approval as a partnership policy shall be
accompanied by a properly executed Partnership Certification Form (Exhibit
M).
2) Insurers requesting to make
use of a previously approved policy form as a qualified State LTC partnership
policy shall submit to the Director a Partnership Certification Form signed by
an officer of the company. The Partnership Certification Form shall be
accompanied by a copy of the policy or certificate form listed, the approval
date, and a bookmark for each of the requirements listed in sections II and III
of the form. A Partnership Certification Form shall be required for each policy
form submitted for partnership qualification.
e) Partnership Disclosure Notice
A partnership policy issued or issued for delivery in this
State shall include a Partnership Disclosure Notice (Exhibit L) explaining the
benefits associated with a partnership policy and indicating that, at the time
issued, the policy is a qualified State LTC insurance partnership policy. The
Partnership Disclosure Notice shall also include a statement indicating that,
by purchasing this partnership policy, the insured does not automatically
qualify for Medicaid.
f)
Producer Training Requirements
The training requirements for a producer to sell, solicit or
negotiate LTC insurance, which includes the LTCPP, are listed in Section
2012.121.
The training requirements must be met before any producer attempts to sell,
solicit or negotiate an LTC partnership policy.