Rule 20:06:21:47 Policy summary for individual life insurance policy containing long-term care benefits.
20:06:21:47. Policy summary for individual life insurance
policy containing long-term care benefits. At the time an insurer delivers
an individual life insurance policy which provides long-term care benefits
within the policy or by rider, the insurer must deliver a policy summary. If
the policy is the result of direct response solicitation, the insurer must
deliver the policy summary upon the applicant's request, but no later than the
time of policy delivery. The summary must 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; and
(4) If applicable to the
policy type, the summary must also include:
(a) A disclosure of
the effects of exercising other rights under the policy;
disclosure of the premiums attributable to the long-term care component of the
policy or certificate;
(c) Current and
projected maximum lifetime benefits; and
(d) A disclosure of
guarantees related to long-term care costs of insurance charges.
(5) A statement that any
long-term care inflation protection option required by §§ 20:06:21:06.01
to 20:06:21:06.05, inclusive, is not available under this policy.
The provisions of the policy summary
listed above may be incorporated into a basic illustration required to be
delivered in accordance with §§ 20:06:38:04 to 20:06:38:11, inclusive, or
into the life insurance policy summary which is required to be delivered in
accordance with § 20:06:14:04.
23 SDR 55, effective October 20, 1996; 28 SDR 157, effective May 19, 2002.
Authority: SDCL 58-17B-4.
Implemented: SDCL 58-17B-4.
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