<html> <head> <title>Rule 20:06:21:58 Nonforfeiture benefit requirement.</title> <META NAME="Keywords" Content="Administrative Rules 20:06:21:58"> <META NAME="Description" Content="Administrative Rules 20:06:21:58 Nonforfeiture benefit requirement."> <meta http-equiv=Content-Type content="text/html; charset=windows-1252"> <meta name=Generator content="Microsoft Word 15 (filtered)"> <style> <!-- /* Font Definitions */ @font-face {font-family:"Cambria Math"; panose-1:2 4 5 3 5 4 6 3 2 4;} /* Style Definitions */ p.MsoNormal, li.MsoNormal, div.MsoNormal {margin:0in; margin-bottom:.0001pt; font-size:12.0pt; font-family:"Times New Roman",serif; color:black;} h1 {mso-style-link:"Heading 1 Char"; margin:0in; margin-bottom:.0001pt; text-align:justify; page-break-after:avoid; font-size:12.0pt; font-family:"Times New Roman",serif; color:black; font-weight:normal;} a:link, span.MsoHyperlink {color:blue; text-decoration:underline;} a:visited, span.MsoHyperlinkFollowed {color:#954F72; text-decoration:underline;} span.Heading1Char {mso-style-name:"Heading 1 Char"; mso-style-link:"Heading 1";} .MsoChpDefault {font-size:10.0pt; color:black;} @page WordSection1 {size:8.5in 11.0in; margin:1.0in 1.25in 1.0in 1.25in;} div.WordSection1 {page:WordSection1;} --> </style> </head> <body lang=EN-US link=blue vlink="#954F72"> <div class=WordSection1> <p class=MsoNormal style='text-align:justify'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b>20:06:21:58.&nbsp;&nbsp;Nonforfeiture benefit requirement.</b></p> <p class=MsoNormal style='text-align:justify'>&nbsp;</p> <p class=MsoNormal style='text-align:justify'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (1)&nbsp;&nbsp;This section does not apply to life insurance policies or riders containing accelerated long-term care benefits.</p> <p class=MsoNormal style='text-align:justify'>&nbsp;</p> <p class=MsoNormal style='text-align:justify'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (2)&nbsp;&nbsp;To comply with the requirement to offer a nonforfeiture benefit pursuant to the provisions of &#167;&nbsp;20:06:21:57:</p> <p class=MsoNormal style='text-align:justify'>&nbsp;</p> <p class=MsoNormal style='text-align:justify'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (a)&nbsp;&nbsp;A policy or certificate offered with nonforfeiture benefits shall have coverage elements, eligibility, benefit triggers, and benefit length that are the same as coverage to be issued without nonforfeiture benefits. The nonforfeiture benefit included in the offer shall be the benefit described in subdivision (5) of this section; and</p> <p class=MsoNormal style='text-align:justify'>&nbsp;</p> <p class=MsoNormal style='text-align:justify'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (b)&nbsp;&nbsp;The offer must be in writing if the nonforfeiture benefit is not otherwise described in the Outline of Coverage or other materials given to the prospective policyholder;</p> <p class=MsoNormal style='text-align:justify'>&nbsp;</p> <p class=MsoNormal style='text-align:justify'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (3)&nbsp;&nbsp;If the offer required to be made under &#167;&nbsp;20:06:21:57 is rejected, the insurer shall provide the contingent benefit upon lapse described in this section. Even if this offer is accepted for a policy with a fixed or limited premium paying period, the contingent benefit on lapse in subdivision (4)(d) still applies;</p> <p class=MsoNormal style='text-align:justify'>&nbsp;</p> <p class=MsoNormal style='text-align:justify'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (4)(a)&nbsp;&nbsp;After rejection of the offer required under &#167;&nbsp;20:06:21:57, for individual and group policies without nonforfeiture benefits issued after May 19, 2002, the insurer shall provide a contingent benefit upon lapse;</p> <p class=MsoNormal style='text-align:justify'>&nbsp;</p> <p class=MsoNormal style='text-align:justify'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (b)&nbsp;&nbsp;In the event a group policyholder elects to make the nonforfeiture benefit an option to the certificateholder, a certificate must provide either the nonforfeiture benefit or the contingent benefit upon lapse;</p> <p class=MsoNormal style='text-align:justify'>&nbsp;</p> <p class=MsoNormal style='text-align:justify'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (c)&nbsp;&nbsp;The contingent benefit on lapse is triggered every time an insurer increases the premium rates to a level which results in a cumulative increase of the annual premium equal to or exceeding the percentage of the insured's initial annual premium set forth below based on the insured's issue age, and the policy or certificate lapses within 120 days of the due date of the premium so increased. Unless otherwise required, policyholders shall be notified at least 30 days prior to the due date of the premium reflecting the rate increase.</p> <p class=MsoNormal style='text-align:justify'>&nbsp;</p> <div align=center> <table class=MsoNormalTable border=0 cellspacing=0 cellpadding=0 style='border-collapse:collapse'> <tr style='page-break-inside:avoid'> <td width=318 colspan=2 valign=top style='width:238.5pt;border:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt'> <p class=MsoNormal align=center style='text-align:center'>Triggers for a Substantial Premium Increase</p> </td> </tr> <tr> <td width=159 valign=top style='width:119.25pt;border-top:none;border-left: solid black 1.0pt;border-bottom:none;border-right:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt'> <p class=MsoNormal style='text-align:justify'>&nbsp;</p> </td> <td width=159 valign=top style='width:119.25pt;border:none;border-right:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt'> <h1>Percent Increase Over</h1> </td> </tr> <tr> <td width=159 valign=top style='width:119.25pt;border:solid black 1.0pt; border-top:none;padding:0in 5.4pt 0in 5.4pt'> <p class=MsoNormal align=center style='text-align:center'>Issue Age</p> </td> <td width=159 valign=top style='width:119.25pt;border-top:none;border-left: none;border-bottom:solid black 1.0pt;border-right:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt'> <h1>Initial Premium</h1> </td> </tr> <tr> <td width=159 valign=top style='width:119.25pt;border-top:none;border-left: solid black 1.0pt;border-bottom:none;border-right:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt'> <p class=MsoNormal align=center style='text-align:center'>&nbsp;</p> </td> <td width=159 valign=top style='width:119.25pt;border:none;border-right:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt'> <h1>&nbsp;</h1> </td> </tr> <tr> <td width=159 valign=top style='width:119.25pt;border-top:none;border-left: solid black 1.0pt;border-bottom:none;border-right:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt'> <p class=MsoNormal align=center style='text-align:center'>29 and under</p> </td> <td width=159 valign=top style='width:119.25pt;border:none;border-right:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt'> <p class=MsoNormal align=center style='text-align:center'>200%</p> </td> </tr> <tr> <td width=159 valign=top style='width:119.25pt;border-top:none;border-left: solid black 1.0pt;border-bottom:none;border-right:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt'> <p class=MsoNormal align=center style='text-align:center'>30-34</p> </td> <td width=159 valign=top style='width:119.25pt;border:none;border-right:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt'> <p class=MsoNormal align=center style='text-align:center'>190%</p> </td> </tr> <tr> <td width=159 valign=top style='width:119.25pt;border-top:none;border-left: solid black 1.0pt;border-bottom:none;border-right:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt'> <p class=MsoNormal align=center style='text-align:center'>35-39</p> </td> <td width=159 valign=top style='width:119.25pt;border:none;border-right:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt'> <p class=MsoNormal align=center style='text-align:center'>170%</p> </td> </tr> <tr> <td width=159 valign=top style='width:119.25pt;border-top:none;border-left: solid black 1.0pt;border-bottom:none;border-right:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt'> <p class=MsoNormal align=center style='text-align:center'>40-44</p> </td> <td width=159 valign=top style='width:119.25pt;border:none;border-right:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt'> <p class=MsoNormal align=center style='text-align:center'>150%</p> </td> </tr> <tr> <td width=159 valign=top style='width:119.25pt;border-top:none;border-left: solid black 1.0pt;border-bottom:none;border-right:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt'> <p class=MsoNormal align=center style='text-align:center'>45-49</p> </td> <td width=159 valign=top style='width:119.25pt;border:none;border-right:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt'> <p class=MsoNormal align=center style='text-align:center'>130%</p> </td> </tr> <tr> <td width=159 valign=top style='width:119.25pt;border-top:none;border-left: solid black 1.0pt;border-bottom:none;border-right:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt'> <p class=MsoNormal align=center style='text-align:center'>50-54</p> </td> <td width=159 valign=top style='width:119.25pt;border:none;border-right:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt'> <p class=MsoNormal align=center style='text-align:center'>110%</p> </td> </tr> <tr> <td width=159 valign=top style='width:119.25pt;border-top:none;border-left: solid black 1.0pt;border-bottom:none;border-right:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt'> <p class=MsoNormal align=center style='text-align:center'>55-59</p> </td> <td width=159 valign=top style='width:119.25pt;border:none;border-right:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt'> <p class=MsoNormal align=center style='text-align:center'>90%</p> </td> </tr> <tr> <td width=159 valign=top style='width:119.25pt;border-top:none;border-left: solid black 1.0pt;border-bottom:none;border-right:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt'> <p class=MsoNormal align=center style='text-align:center'>60</p> </td> <td width=159 valign=top style='width:119.25pt;border:none;border-right:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt'> <p class=MsoNormal align=center style='text-align:center'>70%</p> </td> </tr> <tr> <td width=159 valign=top style='width:119.25pt;border-top:none;border-left: solid black 1.0pt;border-bottom:none;border-right:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt'> <p class=MsoNormal align=center style='text-align:center'>61</p> </td> <td width=159 valign=top style='width:119.25pt;border:none;border-right:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt'> <p class=MsoNormal align=center style='text-align:center'>66%</p> </td> </tr> <tr> <td width=159 valign=top style='width:119.25pt;border-top:none;border-left: solid black 1.0pt;border-bottom:none;border-right:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt'> <p class=MsoNormal align=center style='text-align:center'>62</p> </td> <td width=159 valign=top style='width:119.25pt;border:none;border-right:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt'> <p class=MsoNormal align=center style='text-align:center'>62%</p> </td> </tr> <tr> <td width=159 valign=top style='width:119.25pt;border-top:none;border-left: solid black 1.0pt;border-bottom:none;border-right:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt'> <p class=MsoNormal align=center style='text-align:center'>63</p> </td> <td width=159 valign=top style='width:119.25pt;border:none;border-right:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt'> <p class=MsoNormal align=center style='text-align:center'>58%</p> </td> </tr> <tr> <td width=159 valign=top style='width:119.25pt;border-top:none;border-left: solid black 1.0pt;border-bottom:none;border-right:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt'> <p class=MsoNormal align=center style='text-align:center'>64</p> </td> <td width=159 valign=top style='width:119.25pt;border:none;border-right:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt'> <p class=MsoNormal align=center style='text-align:center'>54%</p> </td> </tr> <tr> <td width=159 valign=top style='width:119.25pt;border-top:none;border-left: solid black 1.0pt;border-bottom:none;border-right:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt'> <p class=MsoNormal align=center style='text-align:center'>65</p> </td> <td width=159 valign=top style='width:119.25pt;border:none;border-right:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt'> <p class=MsoNormal align=center style='text-align:center'>50%</p> </td> </tr> <tr> <td width=159 valign=top style='width:119.25pt;border-top:none;border-left: solid black 1.0pt;border-bottom:none;border-right:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt'> <p class=MsoNormal align=center style='text-align:center'>66</p> </td> <td width=159 valign=top style='width:119.25pt;border:none;border-right:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt'> <p class=MsoNormal align=center style='text-align:center'>48%</p> </td> </tr> <tr> <td width=159 valign=top style='width:119.25pt;border-top:none;border-left: solid black 1.0pt;border-bottom:none;border-right:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt'> <p class=MsoNormal align=center style='text-align:center'>67</p> </td> <td width=159 valign=top style='width:119.25pt;border:none;border-right:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt'> <p class=MsoNormal align=center style='text-align:center'>46%</p> </td> </tr> <tr> <td width=159 valign=top style='width:119.25pt;border-top:none;border-left: solid black 1.0pt;border-bottom:none;border-right:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt'> <p class=MsoNormal align=center style='text-align:center'>68</p> </td> <td width=159 valign=top style='width:119.25pt;border:none;border-right:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt'> <p class=MsoNormal align=center style='text-align:center'>44%</p> </td> </tr> <tr> <td width=159 valign=top style='width:119.25pt;border-top:none;border-left: solid black 1.0pt;border-bottom:none;border-right:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt'> <p class=MsoNormal align=center style='text-align:center'>69</p> </td> <td width=159 valign=top style='width:119.25pt;border:none;border-right:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt'> <p class=MsoNormal align=center style='text-align:center'>42%</p> </td> </tr> <tr> <td width=159 valign=top style='width:119.25pt;border-top:none;border-left: solid black 1.0pt;border-bottom:none;border-right:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt'> <p class=MsoNormal align=center style='text-align:center'>70</p> </td> <td width=159 valign=top style='width:119.25pt;border:none;border-right:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt'> <p class=MsoNormal align=center style='text-align:center'>40%</p> </td> </tr> <tr> <td width=159 valign=top style='width:119.25pt;border-top:none;border-left: solid black 1.0pt;border-bottom:none;border-right:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt'> <p class=MsoNormal align=center style='text-align:center'>71</p> </td> <td width=159 valign=top style='width:119.25pt;border:none;border-right:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt'> <p class=MsoNormal align=center style='text-align:center'>38%</p> </td> </tr> <tr> <td width=159 valign=top style='width:119.25pt;border-top:none;border-left: solid black 1.0pt;border-bottom:none;border-right:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt'> <p class=MsoNormal align=center style='text-align:center'>72</p> </td> <td width=159 valign=top style='width:119.25pt;border:none;border-right:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt'> <p class=MsoNormal align=center style='text-align:center'>36%</p> </td> </tr> <tr> <td width=159 valign=top style='width:119.25pt;border-top:none;border-left: solid black 1.0pt;border-bottom:none;border-right:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt'> <p class=MsoNormal align=center style='text-align:center'>73</p> </td> <td width=159 valign=top style='width:119.25pt;border:none;border-right:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt'> <p class=MsoNormal align=center style='text-align:center'>34%</p> </td> </tr> <tr> <td width=159 valign=top style='width:119.25pt;border-top:none;border-left: solid black 1.0pt;border-bottom:none;border-right:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt'> <p class=MsoNormal align=center style='text-align:center'>74</p> </td> <td width=159 valign=top style='width:119.25pt;border:none;border-right:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt'> <p class=MsoNormal align=center style='text-align:center'>32%</p> </td> </tr> <tr> <td width=159 valign=top style='width:119.25pt;border-top:none;border-left: solid black 1.0pt;border-bottom:none;border-right:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt'> <p class=MsoNormal align=center style='text-align:center'>75</p> </td> <td width=159 valign=top style='width:119.25pt;border:none;border-right:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt'> <p class=MsoNormal align=center style='text-align:center'>30%</p> </td> </tr> <tr> <td width=159 valign=top style='width:119.25pt;border-top:none;border-left: solid black 1.0pt;border-bottom:none;border-right:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt'> <p class=MsoNormal align=center style='text-align:center'>76</p> </td> <td width=159 valign=top style='width:119.25pt;border:none;border-right:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt'> <p class=MsoNormal align=center style='text-align:center'>28%</p> </td> </tr> <tr> <td width=159 valign=top style='width:119.25pt;border-top:none;border-left: solid black 1.0pt;border-bottom:none;border-right:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt'> <p class=MsoNormal align=center style='text-align:center'>77</p> </td> <td width=159 valign=top style='width:119.25pt;border:none;border-right:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt'> <p class=MsoNormal align=center style='text-align:center'>26%</p> </td> </tr> <tr> <td width=159 valign=top style='width:119.25pt;border-top:none;border-left: solid black 1.0pt;border-bottom:none;border-right:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt'> <p class=MsoNormal align=center style='text-align:center'>78</p> </td> <td width=159 valign=top style='width:119.25pt;border:none;border-right:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt'> <p class=MsoNormal align=center style='text-align:center'>24%</p> </td> </tr> <tr> <td width=159 valign=top style='width:119.25pt;border-top:none;border-left: solid black 1.0pt;border-bottom:none;border-right:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt'> <p class=MsoNormal align=center style='text-align:center'>79</p> </td> <td width=159 valign=top style='width:119.25pt;border:none;border-right:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt'> <p class=MsoNormal align=center style='text-align:center'>22%</p> </td> </tr> <tr> <td width=159 valign=top style='width:119.25pt;border-top:none;border-left: solid black 1.0pt;border-bottom:none;border-right:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt'> <p class=MsoNormal align=center style='text-align:center'>80</p> </td> <td width=159 valign=top style='width:119.25pt;border:none;border-right:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt'> <p class=MsoNormal align=center style='text-align:center'>20%</p> </td> </tr> <tr> <td width=159 valign=top style='width:119.25pt;border-top:none;border-left: solid black 1.0pt;border-bottom:none;border-right:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt'> <p class=MsoNormal align=center style='text-align:center'>81</p> </td> <td width=159 valign=top style='width:119.25pt;border:none;border-right:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt'> <p class=MsoNormal align=center style='text-align:center'>19%</p> </td> </tr> <tr> <td width=159 valign=top style='width:119.25pt;border-top:none;border-left: solid black 1.0pt;border-bottom:none;border-right:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt'> <p class=MsoNormal align=center style='text-align:center'>82</p> </td> <td width=159 valign=top style='width:119.25pt;border:none;border-right:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt'> <p class=MsoNormal align=center style='text-align:center'>18%</p> </td> </tr> <tr> <td width=159 valign=top style='width:119.25pt;border-top:none;border-left: solid black 1.0pt;border-bottom:none;border-right:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt'> <p class=MsoNormal align=center style='text-align:center'>83</p> </td> <td width=159 valign=top style='width:119.25pt;border:none;border-right:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt'> <p class=MsoNormal align=center style='text-align:center'>17%</p> </td> </tr> <tr> <td width=159 valign=top style='width:119.25pt;border-top:none;border-left: solid black 1.0pt;border-bottom:none;border-right:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt'> <p class=MsoNormal align=center style='text-align:center'>84</p> </td> <td width=159 valign=top style='width:119.25pt;border:none;border-right:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt'> <p class=MsoNormal align=center style='text-align:center'>16%</p> </td> </tr> <tr> <td width=159 valign=top style='width:119.25pt;border-top:none;border-left: solid black 1.0pt;border-bottom:none;border-right:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt'> <p class=MsoNormal align=center style='text-align:center'>85</p> </td> <td width=159 valign=top style='width:119.25pt;border:none;border-right:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt'> <p class=MsoNormal align=center style='text-align:center'>15%</p> </td> </tr> <tr> <td width=159 valign=top style='width:119.25pt;border-top:none;border-left: solid black 1.0pt;border-bottom:none;border-right:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt'> <p class=MsoNormal align=center style='text-align:center'>86</p> </td> <td width=159 valign=top style='width:119.25pt;border:none;border-right:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt'> <p class=MsoNormal align=center style='text-align:center'>14%</p> </td> </tr> <tr> <td width=159 valign=top style='width:119.25pt;border-top:none;border-left: solid black 1.0pt;border-bottom:none;border-right:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt'> <p class=MsoNormal align=center style='text-align:center'>87</p> </td> <td width=159 valign=top style='width:119.25pt;border:none;border-right:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt'> <p class=MsoNormal align=center style='text-align:center'>13%</p> </td> </tr> <tr> <td width=159 valign=top style='width:119.25pt;border-top:none;border-left: solid black 1.0pt;border-bottom:none;border-right:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt'> <p class=MsoNormal align=center style='text-align:center'>88</p> </td> <td width=159 valign=top style='width:119.25pt;border:none;border-right:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt'> <p class=MsoNormal align=center style='text-align:center'>12%</p> </td> </tr> <tr> <td width=159 valign=top style='width:119.25pt;border-top:none;border-left: solid black 1.0pt;border-bottom:none;border-right:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt'> <p class=MsoNormal align=center style='text-align:center'>89</p> </td> <td width=159 valign=top style='width:119.25pt;border:none;border-right:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt'> <p class=MsoNormal align=center style='text-align:center'>11%</p> </td> </tr> <tr> <td width=159 valign=top style='width:119.25pt;border:solid black 1.0pt; border-top:none;padding:0in 5.4pt 0in 5.4pt'> <p class=MsoNormal align=center style='text-align:center'>90 and over</p> </td> <td width=159 valign=top style='width:119.25pt;border-top:none;border-left: none;border-bottom:solid black 1.0pt;border-right:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt'> <p class=MsoNormal align=center style='text-align:center'>10%</p> </td> </tr> </table> </div> <p class=MsoNormal style='text-align:justify'>&nbsp;</p> <p class=MsoNormal style='text-align:justify'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp; (d)&nbsp;&nbsp;A contingent benefit on lapse is also triggered for policies with a fixed or limited premium paying period every time an insurer increases the premium rates to a level that results in a cumulative increase of the annual premium equal to or exceeding the percentage of the insured's initial annual premium set forth below based on the insurer's issue age, and the policy or certificate lapses within 120 days of the due date of the premium so increased, and the ratio in subdivision (4)(f)(ii) is 40 percent or more. Unless otherwise required, policyholders shall be notified at least 30 days prior to the due date of the premium reflecting the rate increase.</p> <p class=MsoNormal style='text-align:justify'>&nbsp;</p> <table class=MsoNormalTable border=1 cellspacing=0 cellpadding=0 style='margin-left:126.95pt;border-collapse:collapse;border:none'> <tr> <td width=312 colspan=2 valign=top style='width:233.75pt;border:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt'> <p class=MsoNormal align=center style='text-align:center'>Triggers for a Substantial Premium Increase</p> </td> </tr> <tr> <td width=156 valign=top style='width:116.75pt;border:solid black 1.0pt; border-top:none;padding:0in 5.4pt 0in 5.4pt'> <p class=MsoNormal style='text-align:justify'>&nbsp;</p> </td> <td width=156 valign=top style='width:117.0pt;border-top:none;border-left: none;border-bottom:solid black 1.0pt;border-right:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt'> <p class=MsoNormal align=center style='text-align:center'>Percent Increase</p> </td> </tr> <tr> <td width=156 valign=top style='width:116.75pt;border:solid black 1.0pt; border-top:none;padding:0in 5.4pt 0in 5.4pt'> <p class=MsoNormal align=center style='text-align:center'>Issue Age</p> </td> <td width=156 valign=top style='width:117.0pt;border-top:none;border-left: none;border-bottom:solid black 1.0pt;border-right:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt'> <p class=MsoNormal align=center style='text-align:center'>Over Initial Premium</p> </td> </tr> <tr> <td width=156 valign=top style='width:116.75pt;border:solid black 1.0pt; border-top:none;padding:0in 5.4pt 0in 5.4pt'> <p class=MsoNormal align=center style='text-align:center'>&nbsp;</p> </td> <td width=156 valign=top style='width:117.0pt;border-top:none;border-left: none;border-bottom:solid black 1.0pt;border-right:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt'> <p class=MsoNormal style='text-align:justify'>&nbsp;</p> </td> </tr> <tr> <td width=156 valign=top style='width:116.75pt;border-top:none;border-left: solid black 1.0pt;border-bottom:none;border-right:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt'> <p class=MsoNormal align=center style='text-align:center'>Under 65</p> </td> <td width=156 valign=top style='width:117.0pt;border:none;border-right:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt'> <p class=MsoNormal align=center style='text-align:center'>50%</p> </td> </tr> <tr> <td width=156 valign=top style='width:116.75pt;border-top:none;border-left: solid black 1.0pt;border-bottom:none;border-right:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt'> <p class=MsoNormal align=center style='text-align:center'>65-80</p> </td> <td width=156 valign=top style='width:117.0pt;border:none;border-right:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt'> <p class=MsoNormal align=center style='text-align:center'>30%</p> </td> </tr> <tr> <td width=156 valign=top style='width:116.75pt;border:solid black 1.0pt; border-top:none;padding:0in 5.4pt 0in 5.4pt'> <p class=MsoNormal align=center style='text-align:center'>Over 80</p> </td> <td width=156 valign=top style='width:117.0pt;border-top:none;border-left: none;border-bottom:solid black 1.0pt;border-right:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt'> <p class=MsoNormal align=center style='text-align:center'>10%</p> </td> </tr> </table> <p class=MsoNormal style='text-align:justify'>&nbsp;</p> <p class=MsoNormal style='text-align:justify'>This provision is in addition to the contingent benefit lapse provided by subdivision (4)(c) and if both are triggered, the benefit provided shall be at the option of the insured;</p> <p class=MsoNormal style='text-align:justify'>&nbsp;</p> <p class=MsoNormal style='text-align:justify'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (e)&nbsp;&nbsp;On or before the effective date of a substantial premium increase as defined in subdivision (4)(c) of this section, the insurer shall:</p> <p class=MsoNormal style='text-align:justify'>&nbsp;</p> <p class=MsoNormal style='text-align:justify'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (i)&nbsp;&nbsp;&nbsp;&nbsp;Offer to reduce policy benefits provided by the current coverage consistent with the requirements of &#167;&nbsp;20:06:21:86 so that required premium payments are not increased;</p> <p class=MsoNormal style='text-align:justify'>&nbsp;</p> <p class=MsoNormal style='text-align:justify'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (ii)&nbsp;&nbsp;&nbsp;Offer to convert the coverage to a paid-up status with a shortened benefit period in accordance with the terms of subdivision (5) of this section. This option may be elected at any time during the 120-day period referenced in subdivision (4)(c) of this section; and</p> <p class=MsoNormal style='text-align:justify'>&nbsp;</p> <p class=MsoNormal style='text-align:justify'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (iii)&nbsp;&nbsp;Notify the policyholder or certificateholder that a default or lapse at any time during the 120-day period referenced in subdivision (4)(c) of this section is deemed to be the election of the offer to convert in subdivision (4)(d)(ii) of this section unless the automatic option in subdivision (4)(f)(iii) applies;</p> <p class=MsoNormal style='text-align:justify'>&nbsp;</p> <p class=MsoNormal style='text-align:justify'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (f)&nbsp;&nbsp;On or before the effective date of a substantial premium increase as defined in subdivision (4)(d), the insurer shall;</p> <p class=MsoNormal style='text-align:justify'>&nbsp;</p> <p class=MsoNormal style='text-align:justify'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (i)&nbsp;&nbsp;&nbsp;&nbsp;Offer to reduce policy benefits provided by the current coverage consistent with the requirements of &#167;&nbsp;20:06:21:86 so that required premium payments are not increased;</p> <p class=MsoNormal style='text-align:justify'>&nbsp;</p> <p class=MsoNormal style='text-align:justify'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (ii)&nbsp;&nbsp;&nbsp;Offer to convert the coverage to a paid-up status where the amount payable for each benefit is 90 percent of the amount payable in effect immediately prior to lapse times the ratio of the number of completed months of paid premiums divided by the number of months in the premium paying period. This option may be elected at any time during the 120-day period referenced in subdivision (4)(d); and</p> <p class=MsoNormal style='text-align:justify'>&nbsp;</p> <p class=MsoNormal style='text-align:justify'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (iii)&nbsp;&nbsp;Notify the policyholder or certificateholder that a default or lapse at any time during the 120-day period referenced in subdivision (4)(d) shall be deemed to be the election of the offer to convert in subdivision (4)(f)(ii) if the ratio is 40 percent or more;</p> <p class=MsoNormal style='text-align:justify'>&nbsp;</p> <p class=MsoNormal style='text-align:justify'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (g)&nbsp;&nbsp;For any long-term care policy issued in this state, in the event the policy or certificate was issued at least twenty (20) years prior to the effective date of the increase, a value of 0% shall be used in place of all values in the above table, and values above 100% in the table in subdivision (4)(c) shall be reduced to 100%;</p> <p class=MsoNormal style='text-align:justify'>&nbsp;</p> <p class=MsoNormal style='text-align:justify'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (5)&nbsp;&nbsp;Benefits continued as nonforfeiture benefits, including contingent benefits upon lapse in accordance with subdivision (4)(c) but not subdivision (4)(d) of this section, are described in this subdivision:</p> <p class=MsoNormal style='text-align:justify'>&nbsp;</p> <p class=MsoNormal style='text-align:justify'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (a)&nbsp;&nbsp;For purposes of subdivision (5), attained age rating is defined as a schedule of premiums starting from the issue date which increases age at least one percent per year prior to age 50, and at least three percent per year beyond age 50;</p> <p class=MsoNormal style='text-align:justify'>&nbsp;</p> <p class=MsoNormal style='text-align:justify'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (b)&nbsp;&nbsp;For purposes of subdivision (5), the nonforfeiture benefit shall be of a shortened benefit period providing paid-up long-term care insurance coverage after lapse. The same benefits (amounts and frequency in effect at the time of lapse but not increased thereafter) will be payable for a qualifying claim, but the lifetime maximum dollars or days of benefits shall be determined as specified in subdivision (5)(c) of this section;</p> <p class=MsoNormal style='text-align:justify'>&nbsp;</p> <p class=MsoNormal style='text-align:justify'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (c)&nbsp;&nbsp;The standard nonforfeiture credit will be equal to 100 percent of the sum of all premiums paid, including the premiums paid prior to any changes in benefits. The insurer may offer additional shortened benefit period options, as long as the benefits for each duration equal or exceed the standard nonforfeiture credit for that duration. However, the minimum nonforfeiture credit may not be less than 30 times the daily nursing home benefit at the time of lapse. In either event, the calculation of the nonforfeiture credit is subject to the limitation of subdivision (6) of this section;</p> <p class=MsoNormal style='text-align:justify'>&nbsp;</p> <p class=MsoNormal style='text-align:justify'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (d)&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;The nonforfeiture benefit shall begin not later than the end of the third year following the policy or certificate issue date. The contingent benefit upon lapse shall be effective during the first three years as well as thereafter;</p> <p class=MsoNormal style='text-align:justify'>&nbsp;</p> <p class=MsoNormal style='text-align:justify'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (ii)&nbsp;&nbsp;Notwithstanding subdivision (5)(d)(i) of this section, for a nonforfeiture benefit shall begin on the earlier of:</p> <p class=MsoNormal style='text-align:justify'>&nbsp;</p> <p class=MsoNormal style='text-align:justify'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (1)&nbsp;&nbsp;The end of the tenth year following the policy or certificate issue date; or</p> <p class=MsoNormal style='text-align:justify'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (2)&nbsp;&nbsp;The end of the second year following the date the policy or certificate is no longer subject to attained age rating;</p> <p class=MsoNormal style='text-align:justify'>&nbsp;</p> <p class=MsoNormal style='text-align:justify'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (e)&nbsp;&nbsp;Nonforfeiture credits may be used for all care and services qualifying for benefits under the terms of the policy or certificate, up to the limits specified in the policy or certificate;</p> <p class=MsoNormal style='text-align:justify'>&nbsp;</p> <p class=MsoNormal style='text-align:justify'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (6)&nbsp;&nbsp;All benefits paid by the insurer while the policy or certificate is in premium paying status and in the paid up status will not exceed the maximum benefits which would be payable if the policy or certificate had remained in premium paying status;</p> <p class=MsoNormal style='text-align:justify'>&nbsp;</p> <p class=MsoNormal style='text-align:justify'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (7)&nbsp;&nbsp;There may be no difference in the minimum nonforfeiture benefits as required under this section for group and individual policies;</p> <p class=MsoNormal style='text-align:justify'>&nbsp;</p> <p class=MsoNormal style='text-align:justify'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (8)&nbsp;&nbsp;The requirements set forth in this section shall become effective 12 months after adoption of this provision and shall apply as follows:</p> <p class=MsoNormal style='text-align:justify'>&nbsp;</p> <p class=MsoNormal style='text-align:justify'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (a)&nbsp;&nbsp;Except as provided in subdivisions (8)(b) and (8)(c) of this section, the provisions of this section apply to any long-term care policy issued in this state on or after the effective date of this amended regulation;</p> <p class=MsoNormal style='text-align:justify'>&nbsp;</p> <p class=MsoNormal style='text-align:justify'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (b)&nbsp;&nbsp;For certificates issued on or after May 19, 2002, pursuant to a group long-term care insurance policy as defined in SDCL <A HREF="/statutes/DisplayStatute.aspx?Type=Statute&Statute=58-17B-2">58-17B-2(4)(a)</A>, which policy was in force at the time this amended regulation became effective, the provisions of this section shall not apply;</p> <p class=MsoNormal style='text-align:justify'>&nbsp;</p> <p class=MsoNormal style='text-align:justify'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (c)&nbsp;&nbsp;The provisions of subdivision (3) relative to acceptance of an offer and subdivisions (4)(d) and (4)(f) apply to any long-term care insurance policy or certificate issued in this state after December 31, 2007, except for new certificates on a group policy as defined in subdivision (5)(a), for which the provisions apply after June 30, 2008;</p> <p class=MsoNormal style='text-align:justify'>&nbsp;</p> <p class=MsoNormal style='text-align:justify'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (9)&nbsp;&nbsp;Premiums charged for a policy or certificate containing nonforfeiture benefits or a contingent benefit on lapse are subject to the loss ratio requirements of &#167;&nbsp;20:06:21:05 or &#167;&#167;&nbsp;20:06:21:63 to 20:06:21:68, inclusive, whichever is applicable, treating the policy as a whole;</p> <p class=MsoNormal style='text-align:justify'>&nbsp;</p> <p class=MsoNormal style='text-align:justify'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (10)&nbsp;&nbsp;To determine whether contingent nonforfeiture upon lapse provisions are triggered pursuat to subdivision (4)(c) or subdivision (4)(d), a replacing insurer that purchased or otherwise assumed a block or blocks of long-term care insurance policies from another insurer shall calculate the percentage increase based on the initial annual premium paid by the insured when the policy was first purchased from the original insurer;</p> <p class=MsoNormal style='text-align:justify'>&nbsp;</p> <p class=MsoNormal style='text-align:justify'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (11)&nbsp;&nbsp;A nonforfeiture benefit for qualified long-term care insurance contracts that are level premium contracts shall be offered that meets the following requirements:</p> <p class=MsoNormal style='text-align:justify'>&nbsp;</p> <p class=MsoNormal style='text-align:justify'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (a)&nbsp;&nbsp;The nonforfeiture provision shall be appropriately captioned;</p> <p class=MsoNormal style='text-align:justify'>&nbsp;</p> <p class=MsoNormal style='text-align:justify'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (b)&nbsp;&nbsp;The nonforfeiture provision shall provide a benefit available in the event of a default in the payment of any premiums and shall state that the amount of the benefit may be adjusted subsequent to being initially granted only as necessary to reflect changes in claims, persistency, and interest as reflected in changes in rates for premium paying contracts approved by the director for the same contract form; and</p> <p class=MsoNormal style='text-align:justify'>&nbsp;</p> <p class=MsoNormal style='text-align:justify'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (c)&nbsp;&nbsp;The nonforfeiture provision shall provide at least one of the following:</p> <p class=MsoNormal style='text-align:justify'>&nbsp;</p> <p class=MsoNormal style='text-align:justify'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (i)&nbsp;&nbsp;&nbsp;&nbsp;Reduced paid-up insurance;</p> <p class=MsoNormal style='text-align:justify'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (ii)&nbsp;&nbsp;&nbsp;Extended term insurance;</p> <p class=MsoNormal style='text-align:justify'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (iii)&nbsp;&nbsp;Shortened benefit period; or</p> <p class=MsoNormal style='text-align:justify'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (iv)&nbsp;&nbsp;Other similar offerings approved by the director.</p> <p class=MsoNormal style='text-align:justify'>&nbsp;</p> <p class=MsoNormal style='text-align:justify'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b>Source:</b> 28 SDR 157, effective May 19, 2002; 30 SDR 39, effective September 28, 2003; 33 SDR 230, effective July 2, 2007; 44 SDR 184, effective June 25, 2018.</p> <p class=MsoNormal style='text-align:justify'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b>General Authority:</b> SDCL <A HREF="/statutes/DisplayStatute.aspx?Type=Statute&Statute=58-17B-4">58-17B-4.</A></p> <p class=MsoNormal style='text-align:justify'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b>Law Implemented:</b> SDCL <A HREF="/statutes/DisplayStatute.aspx?Type=Statute&Statute=58-17B-4">58-17B-4.</A></p> <p class=MsoNormal style='text-align:justify'>&nbsp;</p> </div> </body> </html>