Weekly Tip: Clarification Amendments to the Long-Term Care Core Uniform Standards

 

Weekly Tips

Clarification Amendments to the Long-Term Care Core Uniform Standards

10/17/2017

Concluding the series on the amendments to the individual Long-Term Care Uniform Standards, this week we will review the clarification amendments made to the Core Standards for Individual Long-Term Care Insurance Policies, Individual Long-Term Care Application Standards, Individual Long-Term Care Insurance Standards for the Outline of Coverage, and the Standards for Forms Required to be Used with an Individual Long-Term Care Insurance Application.

First, the Scope of the Core Standards for Individual Long-Term Care Insurance Policies was updated to reflect that the Uniform Standards apply to accelerated death benefits that are identified, marketed, or offered as providing coverage for long-term care services. It is important to note that the Additional Standards for Accelerated Death Benefits do not apply to these products or riders that fall within the scope of the individual Long-Term Care policy Uniform Standards. This is a clarification, and does not change the manner in which the Uniform Standards have been applied to accelerated death benefits for long-term care services.

Next, references to the Shopper’s Guide to Long-Term Care Insurance in the Individual Long-Term Care Application Standards and Appendix A of the Individual Long-Term Care Insurance Standards for the Outline of Coverage were amended to clarify that they are specific to the NAIC-adopted Shopper’s Guide, and not state-specific guides.

Finally, there were clarification updates to certain definitions within certain ILTC Uniform Standards:

  1. The definition of individual long-term care insurance in the Core Standards for Individual Long-Term Care Insurance Policies was clarified to note that long-term care insurance does not include life insurance policies that accelerate the death benefit for chronic illness, or annuities with guaranteed living benefits when the guaranteed withdrawal increases for certain qualifying events. In those cases, the Additional Standards for Accelerated Death Benefits, and Additional Standards for Guaranteed Living Benefits respectively apply.
  2. The definition of “similar policy” in the Individual Long-Term Care Application Standards was amended to reference all of the long-term care insurance policies and amendments, riders or endorsements issued by the company in the same long-term care benefit classification as the policy being considered. 
  3. The definitions of “policy” and “rider” were added to the Individual Long-Term Care Insurance Standards for the Outline of Coverage. “Policy” means a long-term care insurance policy or contract providing long-term care insurance. “Rider” means an endorsement, rider or amendment to a life insurance policy or an annuity contract which provides long-term care insurance.

For further information regarding the process and procedures associated with the submission of ILTC product filings, please review the updated Filing Information Notice (FIN) issued by the Insurance Compact Office on October 10, 2017 – FIN 2017-2: Individual Long-Term Care Filings.

If you have any questions about this Weekly Tip, or the Insurance Compact, please contact the Insurance Compact Office at Comments@insurancecompact.org.