Nonforfeiture Benefits

Section 2012.86  Nonforfeiture Benefits a)         Except as provided in subsection (b), a long-term care insurance policy may not be delivered or issued for delivery in this State unless the policyholder or certificateholder has been offered the option of purchasing a policy or certificate including a nonforfeiture benefit as specified in Section 2012.127 of this Part.  The offer of a nonforfeiture benefit may be in the form of a rider that is attached to the policy.  In the event the policyholder or certificateholder declines the nonforfeiture benefit, the insurer shall provide a contingent benefit upon lapse that shall be available for a specified period of time following a substantial increase in premium rates. b)         When a group long-term care insurance policy is issued, the offer required in subsection (a) shall be made to the group policyholder.  However, if the policy is issued as group long-term care insurance as defined in Section 351A-1(e)(4) of the Code, other than to a continuing care retirement community or other similar entity, the offering shall be made to each proposed certificateholder.