Current through 2024-13, March 27, 2024
A.
Renewability. The terms "guaranteed renewable" or "noncancelable"
shall be used in any long-term care insurance policy along with a disclosure,
as required by Section
8, defining or explaining the terms.
(1) No policy shall contain any renewal
provision other than "guaranteed renewable" or "noncancelable."
(2) The term "guaranteed renewable" may be
used only if the insured has the right to continue the insurance in force by
the timely payment of premiums and if the insurer (a) has no unilateral
contractual right to change any policy provision while the insurance is in
force or (b) has no right to decline renewal, except on prior approval from the
superintendent to a rate change on a class basis that applies statewide. The
definition of "class" may not be based on health status or claims
experience.
(3) The term
"noncancelable" may be used only if the insured has the right to continue the
policy in force by the timely payment of premiums and the insurer has no
unilateral right to change any policy provision or the premium rate.
(4) The term "level premium" may be used only
when the insurer does not have the right to change the premium.
B.
Limitations and
Exclusions. A policy may not be issued as long-term care insurance if
the policy excludes or limits coverage by the type of illness, medical
condition or accident or the kind of treatment, except as follows:
(1) A preexisting condition or disease, which
shall be defined and covered as required under
24-A
M.R.S.A.
§5075(2);
(2) Mental or nervous disorders; however,
there shall be no exclusion or limitation for any disorder or disease, such as
Alzheimer's Disease, which demonstrably is the result of an organic
cause;
(3) Alcoholism and drug
addiction;
(4) Illness, medical
condition or treatment arising from:
(a) War
or act of war (whether declared or undeclared);
(b) Participation in a felony, riot or
insurrection;
(c) Service in the
armed forces or units auxiliary thereto;
(d) Suicide, attempted suicide or any
intentionally self-inflicted injury; or
(e) Aviation (this exclusion applies only to
non-fare paying passengers).
(5) Treatment in a government facility
(unless otherwise required by law); services for which benefits are available
under Medicare or other governmental program (except Medicaid); any federal or
state workers compensation, employer liability or occupational disease law; any
vehicle no-fault law; services provided to the insured by a person in the
insured's immediate family; and services for which usually no charge is made in
the absence of insurance coverage.
(6) Expenses for services or items paid under
another long-term care insurance or health insurance policy;
(7) In the case of a qualified long-term care
insurance contract, expenses for services or items to the extent that the
expenses are reimbursable under Title XVIII of the Social Security Act or would
be so reimbursable but for the application of a deductible or coinsurance
amount.
(8)
(a) This Section is not intended to prevent
any exclusion or limitation based on the type of provider. However, no
long-term care issuer may deny a claim because services are provided in a state
other than the state of policy issued under the following conditions:
(i) When the state other than the state of
policy issue does not have the provider licensing, certification or
registration required in the policy, but where the provider satisfies the
policy requirements outlined for providers in lieu of licensure, certification
or registration; or
(ii) When the
state other than the state of policy issue licenses, certifies or registers the
provider under another name.
(b) For purposes of this section, "state of
policy issue" means the state in which the individual policy or certificate was
originally issued.
(9)
This subsection is not intended to prohibit territorial limitations.
C.
Extension of
Benefits. Termination of insurance shall be without prejudice to any
benefit payable for institutionalization if the institutionalization began
while the insurance was in force and continues without interruption after
termination. The extension of benefits beyond the date of termination may be
limited to the duration of the benefit period, if any, or to payment of the
maximum benefits, and also may be made subject to any waiting period or other
applicable policy provision.
D.
Continuation and Conversion of Group Coverage
(1) Every group long-term care insurance
policy or rider shall contain a provision for continuation or conversion of the
group coverage to individual coverage.
(2) "Continuation of coverage" means a
provision that maintains coverage under the group policy that would otherwise
terminate and under which maintenance of coverage is subject only to the timely
payment of premiums. Group policies that restrict payment of benefits or
services, or that contain incentives for the insured to use certain health care
providers or facilities, may provide continuation of coverage with benefits
substantially equivalent to benefits under the group policy. The superintendent
may make a determination as to the substantial equivalency of benefits, taking
into consideration any difference between managed care and non-managed care
plans, including such factors as provider system arrangements, availability of
services, benefit levels and administrative complexity.
(3) "Conversion of coverage" means a policy
provision entitling an insured, without establishing insurability, to have the
group insurer issue a converted (i.e., an individual) policy
upon termination of the group coverage for any reason, including discontinuance
of the policy in its entirety or with respect to an insured class. The right to
conversion may be subject to the condition that the insured be covered under
the group policy (or in combination with a group policy it replaced)
continuously for at least six months prior to the termination.
(4) "Converted policy" means an individual
policy containing benefits identical to (or benefits the superintendent
determines to be substantially equivalent to), or in excess of, the group
policy from which conversion occurs. If the converted policy restricts benefits
or services, or contains incentives for the insured to use certain health care
providers or facilities, the superintendent may consider, in determining
substantial equivalency, any difference between managed care and non-managed
care plans, including such factors as provider system arrangements,
availability of services, benefit levels and administrative complexity. There
shall be credit for that portion of the waiting period satisfied, except with
respect to an increase in benefits the insured voluntarily selects.
(5) The insured shall apply in writing for
conversion in a manner the insurer directs and shall pay the first premium, if
it becomes due, no later than 31 days after termination of the group policy.
The converted policy shall be issued effective on the day following the
termination of coverage under the group policy, and shall be renewable
annually.
(6) The premium for the
individual policy shall be calculated based on the insurer's age at the time of
inception of coverage under the group policy unless the group policy from which
conversion is made replaced previous group coverage. When the terminated group
coverage replaced other group coverage, the premium for the individual policy
shall be calculated on the basis of the insured's age at the inception of
coverage under the first group policy.
(7) Continued or converted coverage is
mandatory for the insurer, except when:
(a)
Termination of the group coverage was the result of failure to timely pay the
premium or contribution; or
(b) The
terminated coverage is replaced no later than 31 days after the termination by
new group insurance, which begins no later than the day after the date of
termination; the new group policy provides benefits identical (or substantially
equivalent, as the superintendent may determine) to the terminated coverage;
and the premium is calculated as described in Section 6.
(8) Notwithstanding any contrary provision in
Section 6, an individual policy issued pursuant to conversion may contain a
reduction of benefits provision if the insured has another long-term care
policy which pays benefits based on incurred expenses. The reduction of
benefits may occur if the additional coverage, when combined with the benefits
under the converted policy, exceeds 100% of incurred expenses. The insurer may
enforce a reduction of benefits provision only if the converted policy requires
a reduction or refund of premium reflecting the reduced benefits.
(9) The converted policy may provide that its
benefits together with the benefits under the terminated group policy shall not
exceed benefits payable under the group coverage, had it remained in
force.
(10) Notwithstanding any
provision of Section 6, an insured whose eligibility for group coverage is
based on his/her relationship to another person, shall be entitled to a
continuation of the group policy if the qualifying relationship ended because
of death or dissolution of marriage.
(11) For the purposes of Section 6, a
managed-care plan is a health care or assisted living plan designed to
coordinate patient care or to control costs through utilization review, case
management or use of provider networks.
E.
Discontinuance and
Replacement. If a group policy is replaced by another group policy
issued to the same policyholder, the successor insurer shall offer long-term
care coverage to all persons insured, as of the termination date, under the
previous policy. Coverage and premiums under the successor policy:
(1) Shall not result in an exclusion for any
preexisting condition for which there would be coverage under the replaced
policy; and
(2) Shall not vary or
depend on the insured's health or disability status, claim experience or prior
use of long-term care services.
F.
Premiums
(1) The premium charged to an insured shall
not increase because of either:
(a) The
increasing age of the insured at ages beyond 65; or
(b) The duration the insured has been covered
under the policy.
(2)
The purchase of additional coverage shall not be considered a premium rate
increase for the purpose of the calculation required by Section
26, the portion of the premium
attributable to the additional coverage shall be added to and considered part
of the initial annual premium.
(3)
A reduction in benefits shall not be considered a premium change, but, for the
purpose of the calculation under Section
26, the initial annual premium shall
be based on the reduced benefits.
G.
Electronic Signatures
(1) In the case of an employee group as
defined in
24-A M.R.S.A.
§2804, a labor union groups as defined
in
24-A M.R.S.A.
§2805, or a trustee groups as defined in
24-A M.R.S.A.
§2806, any requirement that an insurer
or producer obtain the insured's signature shall be deemed satisfied if:
(a) The insurer, producer or policyholder
receives the insured's consent by telephonic or electronic enrollment. A
verification of enrollment information shall be provided to the
enrollee;
(b) The telephonic or
electronic enrollment provides necessary and reasonable safeguards to assure
the accuracy, retention and prompt retrieval of records; and
(c) Such enrollment contains reasonable and
necessary safeguards to protect the confidentiality of information which
24-A M.R.S.A.
§§2201 -
2220 define as
privileged information.
(2) On request, the insurer shall make
available to the superintendent records that demonstrate the insurer's ability
to confirm enrollments and the amounts of coverage.
H.
Certificateholder's Right to Copy of
Group Policy. Every group long-term care insurance policyholder shall
inform the certificateholder of the right, at his/her request to the insurer
and at no charge to the certificateholder, to receive a copy of the group
policy from the insurer or the policyholder. Every certificate also shall
disclose that if there is any inconsistency between the policy and the
certificate, the policy shall control.