New Hampshire Code of Administrative Rules
Ins - Commissioner, Insurance Department
Chapter Ins 3600 - LONG-TERM CARE INSURANCE
Part Ins 3602 - NEW HAMPSHIRE LONG-TERM CARE PARTNERSHIP PROGRAM
Section Ins 3602.05 - Exchanges
Universal Citation: NH Admin Rules Ins 3602.05
Current through Register No. 12, March 21, 2024
(a) The insurer shall exchange long-term care coverage that was purchased on or after February 8, 2006 for partnership coverage in one of the following ways:
(1)
For all non-certified partnership policies or certificates, by adding an
endorsement that all the provisions required to qualify the policy as a New
Hampshire partnership policy have been met and the policy is a New Hampshire
partnership policy; or
(2) By
exchanging an existing policy or certificate for a new partnership policy or
certificate or by adding a rider or endorsement to an existing policy or
certificate.
(b) The following provisions shall apply to any exchange:
(1) If the new coverage has an actuarial
value of benefits equal to or lesser than the actuarial value of benefits of
the existing coverage, based on uniform assumptions as determined on the date
of issue for a new insured, then:
a.. The new
policy or certificate shall not be underwritten; and
b. The rate charged for the new policy or
certificate shall be determined using the original issue age and risk class of
the insured that was used to determine the rate of the existing
policy;
(2) If the new
coverage has an actuarial value of benefits exceeding the actuarial value of
benefits of the existing coverage, based on uniform assumptions, as determined
on the date of issue for a new insured, then:
a. The insurer shall apply its new business,
long-term care underwriting guidelines to the increased benefits only;
and
b. The rate charged for the new
policy or certificate shall be determined using the method set forth in
subparagraph (b)(1)b. above for the existing benefits, increased by the rate
for the increased benefits using the current attained age and risk class of the
insured for the increased benefits only;
(3) Any exchange offer shall be made to all
policyholders and certificate holders on a nondiscriminatory basis;
(4) Except for an exchange of a non-certified
partnership policy or certificate pursuant to (a)(1) of this section, an
exchange offer shall be deferred for any policyholder or certificateholder who
is currently within an elimination period under the policy or is receiving
benefits under the policy. Such deferral shall continue so long as the
eligibility for benefits or elimination period exists;
(5) In addition to the requirements of this
part, all exchanges shall comply with the requirements of Ins 3601, provided
however that
Ins 3601.23 shall not
apply to the exchange of a non-certified partnership policy or certificate for
a New Hampshire partnership policy or certificate when the new coverage has an
actuarial value of benefits equal to or lesser than the actuarial value of
benefits of the original non-certified partnership policy or
certificate;
(6) The new coverage
offered shall be on a New Hampshire partnership policy or certificate form that
is approved for sale in the general market;
(7) The insurer shall issue the disclosure
notice as set forth in
Ins
3602.06(a)(2); and
(8) The insured shall not lose any rights,
benefits, or built-up value that have accrued under the original policy with
respect to the benefits provided under the original policy, including, but not
limited to, rights established because of the lapse of time related to
pre-existing condition exclusions, elimination periods, or incontestability
clauses.
(c) Policies issued pursuant to this section shall be considered exchanges and not replacements.
#9654, eff 2-16-10
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