§8091. Policy summary for life insurance policy providing long-term care benefits

Link to law: http://legislature.vermont.gov/statutes/section/08/154/08091
Published: 2015

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Title

08

:
Banking and Insurance






Chapter

154

:
LONG-TERM CARE INSURANCE











 

§

8091. Policy summary for life insurance policy providing long-term care

benefits

(a) If an

individual life insurance policy provides long-term care benefits within the

policy or by rider, a policy summary shall be delivered at the time of policy

delivery. In the case of direct response solicitations, the insurer shall

deliver the policy summary upon the applicant's request, but regardless of

request shall make delivery no later than at the time of policy delivery. In

addition to complying with all applicable requirements, the summary shall also

include:

(1) an

explanation of how the long-term care benefit interacts with other components

of the policy, including deductions from death benefits;

(2) an

illustration of the amount of benefits, the length of benefits, and the

guaranteed lifetime benefits if any, for each covered person;

(3) any

exclusions, reductions, and limitations on benefits of long-term care;

(4) a statement

that any long-term care inflation protection option required by subdivision 8085(b)(6)

of this title is not available under this policy;

(5) if

applicable to the policy type, the summary shall also include:

(A) a disclosure

of the effects of exercising other rights under the policy;

(B) a disclosure

of guarantees related to long-term care costs of insurance charges; and

(C) current and

projected maximum lifetime benefits.

(b) The

provisions of the policy summary listed in this section may be incorporated

into a basic illustration required to be delivered or into the life insurance

policy summary which is required to be delivered in accordance with the

Department's rules. (Added 2003, No. 124 (Adj. Sess.), § 2, eff. Jan. 1, 2005.)
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