Nebraska Administrative Code
Topic - INSURANCE, DEPARTMENT OF
Title 210 - NEBRASKA DEPARTMENT OF INSURANCE
Chapter 46 - LONG-TERM CARE INSURANCE
Section 210-46-011 - Requirement to Offer Inflation Protection

Universal Citation: 210 NE Admin Rules and Regs ch 46 ยง 011

Current through September 17, 2024

011.01 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:

011.01(A) Increases benefit levels annually in a manner so that the increases are compounded annually at a rate not less than five percent (5%);

011.01(B) Guarantees the insured individual the right to periodically increase benefit levels without providing evidence of insurability or health status so long as the option for the previous period has not been declined. The amount of the additional benefit shall be no less than the difference between the existing policy benefit and that benefit compounded annually at a rate of at least five percent (5%) for the period beginning with the purchase of the existing benefit and extending until the year in which the offer is made; or

011.01(C) Covers a specified percentage of actual or reasonable charges and does not include a maximum specified indemnity amount or limit.

011.02 Where the policy is issued to a group, the required offer in subsection 010.01 shall be made to the group policyholder; except, if the policy is issued to a group defined in Neb.Rev.Stat. § 44-4508(4) other than to a continuing care retirement community, the offering shall be made to each proposed certificateholder.

011.03 The offer in subsection 011.01 shall not be required of life insurance policies or riders containing accelerated long-term care benefits.

011.04 Insurers shall include the following information in or with the outline of coverage:

011.04(A) A graphic comparison of the benefit levels of a policy that increases benefits over the policy period with a policy that does not increase benefits. The graphic comparison shall show benefit levels over at least a twenty (20) year period.

011.04(B) Any expected premium increases or additional premiums to pay for automatic or optional benefit increases.

011.04(C) An insurer may use a reasonable hypothetical, or a graphic demonstration, for the purpose of this disclosure.

011.05 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.

011.06 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.

011.07 Inflation protection

011.07(A) Inflation protection as provided in subsection 011.01(A) 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 in this subsection. The rejection may be either in the application or on a separate form.

011.07(B) 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 Plans _____________________, and I reject inflation protection.

Disclaimer: These regulations may not be the most recent version. Nebraska may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.