Section 687B.082 - Notification regarding partnership status1. Except as otherwise provided in subsection 3, after the Division approves a filing associated with the partnership status of a form, the insurer or similar organization issuing the form shall notify each policyholder and certificate holder with a long-term care insurance contract or certificate issued or delivered in this State:(a) If the long-term care insurance contract or certificate requires no additional features to make it a partnership contract or partnership certificate, that the long-term care insurance contract or certificate is now intended to be a partnership contract or partnership certificate.(b) If the long-term care insurance contract requires additional features to make it a partnership contract or partnership certificate, of an offer, subject to the conditions described in subsection 4, to upgrade the long-term care insurance contract or certificate with the intention to make it a partnership contract or partnership certificate.2. The notices described in subsections 2 and 3 of NAC 687B.058 must be provided at the time of notification to the parties notified pursuant to subsection 1.3. The requirements of subsection 1 do not apply to:(a) A policy of life insurance or a rider to a policy of life insurance that accelerates benefits for long-term care;(b) A disability income insurance policy or a rider to a disability income insurance policy that contains long-term care eligibility triggers;(c) A long-term care insurance contract or certificate issued before January 1, 2007;(d) A long-term care insurance contract or certificate issued by the insurer or similar organization but not approved by the Division as a partnership contract or certificate; or(e) A long-term care insurance contract or certificate issued to any policyholder or certificate holder who: (1) Is currently eligible for benefits;(2) Is within an elimination period;(4) Previously received benefits under the long-term care insurance contract or certificate; or(5) Is not eligible to apply for the new coverage because of limitations under the new long-term care insurance contract or certificate relating to the issue age of the insured.4. The insurer may condition the offer described in paragraph (b) of subsection 1 on the insured meeting all eligibility requirements for any additional features that bear new risk, including, without limitation, enhancement of protection against inflation to the level identified in subsection 8 of NAC 687B.076. Eligibility requirements include, without limitation, any underwriting requirements and payment of premiums to add any new coverage.5. The insurer shall make any new coverage pursuant to the offer described in paragraph (b) of subsection 1 available: (a) By adding a rider or endorsement to the existing long-term care insurance contract and charging a separate premium for any new benefits provided under the rider or endorsement based on the present age of the insured; or(b) By exchanging the existing long-term care insurance contract or certificate for one based on the age of the insured at the time the long-term care insurance contract or certificate was originally issued for all benefits provided under the existing long-term care insurance contract, and based on the present age of the insured for all new benefits that were not included in the existing long-term care insurance contract.6. The forms associated with methods of upgrade described in subsection 5 intended for use by the insurer or similar organization must be included as part of the filing for partnership program status.7. Not more than 18 months after the Division approves the partnership program status of a filing associated with a long-term care insurance contract or certificate, the insurer or similar organization shall complete:(a) The conversion of all long-term care insurance contracts and certificates to partnership status as described in paragraph (a) of subsection 1; and(b) The upgrades identified in subsection 5 for policyholders and certificate holders found eligible pursuant to subsection 4 who have accepted the offer described in paragraph (b) of subsection 1.8. A long-term care insurance contract or certificate issued pursuant to this section: (a) Must satisfy the requirements of NAC 687B.0335;(b) Shall be deemed an exchange; and(c) Is not subject to the provisions of NAC 687B.125 to 687B.135, inclusive.9. An insurer or similar organization may upgrade any long-term care insurance contract or certificate associated with a filing approved pursuant to subsection 1 with issue dates before January 1, 2007, to partnership program status at any time in the form of an exchange. For any such exchange:(a) The exchange must take place for a new long-term care insurance contract or certificate, as described in paragraph (b) of subsection 5.(b) The requirements of paragraph (a) of subsection 8 must be met.(c) The exchange offer must be made in a uniform and nondiscriminatory fashion, including, without limitation, making the offer for existing long-term care insurance contracts and certificates with an effective date on or after a justifiable date. For the purposes of this paragraph, February 8, 2006, is presumed to be a justifiable date.(d) The applicability conditions in subsection 3, with the exception of paragraph (d) of subsection 3, apply to the exchange.10. The provisions of this section do not:(a) Prohibit an insurer or similar organization from offering a long-term care insurance contract or certificate to any policyholder or certificate holder. Insurers and similar organizations may require that policyholders and certificate holders meet all eligibility requirements, including underwriting and payment of required premiums.(b) Prevent any prospective applicant from applying for the newly available partnership contract or partnership certificate approved by the Division in subsection 1.Nev. Admin. Code § 687B.082
Added to NAC by Comm'r of Insurance by R028-10, 12-16-2010, eff. 10-1-2011