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The Vermont Statutes Online
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.)