<html xmlns="http://www.w3.org/1999/xhtml"><head><meta charset="UTF-8" /><title></title><meta name="Generator" content="PowerTools for Open XML" /><style>span { white-space: pre-wrap; } p.s3e222766-fc1a-4336-b022-c98d2c3c2f80P0 { margin-top: 0; margin-bottom: 0; margin-left: 0; margin-right: 0; text-indent: 0.00in; text-align: justify; background: white; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; } span.s3e222766-fc1a-4336-b022-c98d2c3c2f80C0 { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s3e222766-fc1a-4336-b022-c98d2c3c2f80C0-000000 { color: #0000FF; font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s3e222766-fc1a-4336-b022-c98d2c3c2f80C0-000001 { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s3e222766-fc1a-4336-b022-c98d2c3c2f80000002 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s3e222766-fc1a-4336-b022-c98d2c3c2f80C0-000003 { color: #0000FF; font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } </style></head><body><div><p dir="ltr" class="s3e222766-fc1a-4336-b022-c98d2c3c2f80P0"><span xml:space="preserve" class="s3e222766-fc1a-4336-b022-c98d2c3c2f80C0">    </span><a href="https://sdlegislature.gov/Rules?Rule=20:06:21:86"><span class="s3e222766-fc1a-4336-b022-c98d2c3c2f80C0-000000">20:06:21:86</span></a><span class="s3e222766-fc1a-4336-b022-c98d2c3c2f80C0-000001">.  Right to reduce coverage and lower premiums.</span><span xml:space="preserve" class="s3e222766-fc1a-4336-b022-c98d2c3c2f80C0"> Each long-term care insurance policy and certificate shall include a provision that allows the policyholder or certificateholder to reduce coverage and lower the policy or certificate premium in at least one of the following ways:</span></p><p dir="ltr" class="s3e222766-fc1a-4336-b022-c98d2c3c2f80P0"><span xml:space="preserve" class="s3e222766-fc1a-4336-b022-c98d2c3c2f80000002"> </span></p><p dir="ltr" class="s3e222766-fc1a-4336-b022-c98d2c3c2f80P0"><span xml:space="preserve" class="s3e222766-fc1a-4336-b022-c98d2c3c2f80C0">    (1)  Reducing the maximum benefit; or</span></p><p dir="ltr" class="s3e222766-fc1a-4336-b022-c98d2c3c2f80P0"><span xml:space="preserve" class="s3e222766-fc1a-4336-b022-c98d2c3c2f80C0">    (2)  Reducing the daily, weekly, or monthly benefit amount.</span></p><p dir="ltr" class="s3e222766-fc1a-4336-b022-c98d2c3c2f80P0"><span xml:space="preserve" class="s3e222766-fc1a-4336-b022-c98d2c3c2f80000002"> </span></p><p dir="ltr" class="s3e222766-fc1a-4336-b022-c98d2c3c2f80P0"><span xml:space="preserve" class="s3e222766-fc1a-4336-b022-c98d2c3c2f80C0">    The insurer may also offer other reduction options that are consistent with the policy or certificate design or the carrier's administrative processes.</span><span xml:space="preserve" class="s3e222766-fc1a-4336-b022-c98d2c3c2f80C0"> In the event the reduction in coverage involves the reduction or elimination of the inflation protection provision, the insurer shall allow the policyholder to continue the benefit amount in effect at the time of the reduction.</span><span xml:space="preserve" class="s3e222766-fc1a-4336-b022-c98d2c3c2f80C0"> The provision shall include a description of the ways in which coverage may be reduced and the process for requesting and implementing a reduction in coverage.</span></p><p dir="ltr" class="s3e222766-fc1a-4336-b022-c98d2c3c2f80P0"><span xml:space="preserve" class="s3e222766-fc1a-4336-b022-c98d2c3c2f80000002"> </span></p><p dir="ltr" class="s3e222766-fc1a-4336-b022-c98d2c3c2f80P0"><span xml:space="preserve" class="s3e222766-fc1a-4336-b022-c98d2c3c2f80C0">    </span><span class="s3e222766-fc1a-4336-b022-c98d2c3c2f80C0">The premium for the reduced coverage shall be based on the same age and underwriting class used to determine the premium for the coverage currently in force and be consistent with the approved rate table.</span></p><p dir="ltr" class="s3e222766-fc1a-4336-b022-c98d2c3c2f80P0"><span xml:space="preserve" class="s3e222766-fc1a-4336-b022-c98d2c3c2f80000002"> </span></p><p dir="ltr" class="s3e222766-fc1a-4336-b022-c98d2c3c2f80P0"><span xml:space="preserve" class="s3e222766-fc1a-4336-b022-c98d2c3c2f80C0">    The insurer may limit any reduction in coverage to plans or options available for that policy form and to those for which benefits will be available after consideration of claims paid or payable. If a policy or certificate is about to lapse, the insurer shall provide a written reminder to the policyholder or certificateholder of his or her right to reduce coverage and premiums in the notice required by § </span><a href="https://sdlegislature.gov/Rules?Rule=20:06:21:22"><span class="s3e222766-fc1a-4336-b022-c98d2c3c2f80C0-000003">20:06:21:22</span></a><span class="s3e222766-fc1a-4336-b022-c98d2c3c2f80C0">.</span></p><p dir="ltr" class="s3e222766-fc1a-4336-b022-c98d2c3c2f80P0"><span xml:space="preserve" class="s3e222766-fc1a-4336-b022-c98d2c3c2f80000002"> </span></p><p dir="ltr" class="s3e222766-fc1a-4336-b022-c98d2c3c2f80P0"><span xml:space="preserve" class="s3e222766-fc1a-4336-b022-c98d2c3c2f80C0">    This section does not apply to life insurance policies or riders containing accelerated long-term care benefits.</span></p><p dir="ltr" class="s3e222766-fc1a-4336-b022-c98d2c3c2f80P0"><span xml:space="preserve" class="s3e222766-fc1a-4336-b022-c98d2c3c2f80000002"> </span></p><p dir="ltr" class="s3e222766-fc1a-4336-b022-c98d2c3c2f80P0"><span xml:space="preserve" class="s3e222766-fc1a-4336-b022-c98d2c3c2f80C0">    </span><span xml:space="preserve" class="s3e222766-fc1a-4336-b022-c98d2c3c2f80C0">A premium increased notice required by subdivision </span><a href="https://sdlegislature.gov/Rules?Rule=20:06:21:60"><span class="s3e222766-fc1a-4336-b022-c98d2c3c2f80C0-000003">20:06:21:60</span></a><span class="s3e222766-fc1a-4336-b022-c98d2c3c2f80C0">(5) shall include:</span></p><p dir="ltr" class="s3e222766-fc1a-4336-b022-c98d2c3c2f80P0"><span xml:space="preserve" class="s3e222766-fc1a-4336-b022-c98d2c3c2f80000002"> </span></p><p dir="ltr" class="s3e222766-fc1a-4336-b022-c98d2c3c2f80P0"><span xml:space="preserve" class="s3e222766-fc1a-4336-b022-c98d2c3c2f80C0">    (1)  An offer to reduce policy benefits provided by the current coverage consistent with the requirements of this section;</span></p><p dir="ltr" class="s3e222766-fc1a-4336-b022-c98d2c3c2f80P0"><span xml:space="preserve" class="s3e222766-fc1a-4336-b022-c98d2c3c2f80C0">    (2)  A disclosure stating that all options available to the policyholder may not be of equal value; and</span></p><p dir="ltr" class="s3e222766-fc1a-4336-b022-c98d2c3c2f80P0"><span xml:space="preserve" class="s3e222766-fc1a-4336-b022-c98d2c3c2f80C0">    (3)  In the case of a partnership policy, a disclosure that some benefit reduction options may result in a loss in partnership status that may reduce policyholder protections.</span></p><p dir="ltr" class="s3e222766-fc1a-4336-b022-c98d2c3c2f80P0"><span xml:space="preserve" class="s3e222766-fc1a-4336-b022-c98d2c3c2f80000002"> </span></p><p dir="ltr" class="s3e222766-fc1a-4336-b022-c98d2c3c2f80P0"><span xml:space="preserve" class="s3e222766-fc1a-4336-b022-c98d2c3c2f80C0">    </span><span class="s3e222766-fc1a-4336-b022-c98d2c3c2f80C0-000001">Source:</span><span xml:space="preserve" class="s3e222766-fc1a-4336-b022-c98d2c3c2f80C0"> 33 SDR 230, effective July 2, 2007</span><span class="s3e222766-fc1a-4336-b022-c98d2c3c2f80C0">; 44 SDR 184, effective June 25, 2018</span><span class="s3e222766-fc1a-4336-b022-c98d2c3c2f80C0">.</span></p><p dir="ltr" class="s3e222766-fc1a-4336-b022-c98d2c3c2f80P0"><span xml:space="preserve" class="s3e222766-fc1a-4336-b022-c98d2c3c2f80C0">    </span><span class="s3e222766-fc1a-4336-b022-c98d2c3c2f80C0-000001">General Authority:</span><span xml:space="preserve" class="s3e222766-fc1a-4336-b022-c98d2c3c2f80C0"> SDCL </span><a href="https://sdlegislature.gov/Statutes?Statute=58-17B-4"><span class="s3e222766-fc1a-4336-b022-c98d2c3c2f80C0-000003">58-17B-4</span></a><span class="s3e222766-fc1a-4336-b022-c98d2c3c2f80C0">.</span></p><p dir="ltr" class="s3e222766-fc1a-4336-b022-c98d2c3c2f80P0"><span xml:space="preserve" class="s3e222766-fc1a-4336-b022-c98d2c3c2f80C0">    </span><span class="s3e222766-fc1a-4336-b022-c98d2c3c2f80C0-000001">Law Implemented:</span><span xml:space="preserve" class="s3e222766-fc1a-4336-b022-c98d2c3c2f80C0"> SDCL </span><a href="https://sdlegislature.gov/Statutes?Statute=58-17B-4"><span class="s3e222766-fc1a-4336-b022-c98d2c3c2f80C0-000003">58-17B-4</span></a><span class="s3e222766-fc1a-4336-b022-c98d2c3c2f80C0">.</span></p><p dir="ltr" class="s3e222766-fc1a-4336-b022-c98d2c3c2f80P0"><span xml:space="preserve" class="s3e222766-fc1a-4336-b022-c98d2c3c2f80000002"> </span></p></div></body></html>