Illinois Administrative Code
Title 50 - INSURANCE
Part 2012 - LONG-TERM CARE INSURANCE
Section 2012.80 - Requirement to Offer Inflation Protection
Current through Register Vol. 48, No. 12, March 22, 2024
a) 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:
b) Where the policy is issued to a group, the required offer in subsection (a) shall be made to the group policyholder; except, if the policy is issued to a discretionary group, as defined in Section 351A-1(e)(4) of the Code, other than to a continuing care retirement community, the offering shall be made to each proposed certificateholder.
c) The offer in subsection (a) shall not be required of life insurance policies or riders containing accelerated long-term care benefits.
d) Insurers shall include the following information in the outline of coverage:
e) Inflation protection benefit increases under a policy which contains such 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.
f) An offer of inflation protection which 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.
g) Inflation protection as provided in subsection (a)(1) of this Section shall be included in a long-term care insurance policy unless an insurer obtains a rejection of inflation protection signed by the policyholder as required by this Section. The rejection may be either in the application or on a separate form. The rejection shall be considered a part of the application and shall state, "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 plan(s) ________, and I reject inflation protection."