<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.s022715a2-773c-41a9-865c-c8a042f7c941Normal { text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-top: 0; margin-left: 0; margin-right: 0; margin-bottom: .001pt; } span.s022715a2-773c-41a9-865c-c8a042f7c941DefaultParagraphFont { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s022715a2-773c-41a9-865c-c8a042f7c941DefaultParagraphFont-000000 { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s022715a2-773c-41a9-865c-c8a042f7c941000001 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s022715a2-773c-41a9-865c-c8a042f7c941DefaultParagraphFont-000002 { 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="s022715a2-773c-41a9-865c-c8a042f7c941Normal"><span xml:space="preserve" class="s022715a2-773c-41a9-865c-c8a042f7c941DefaultParagraphFont">    </span><span class="s022715a2-773c-41a9-865c-c8a042f7c941DefaultParagraphFont-000000">20:06:21:01.03.  Long-term care insurance.</span><span xml:space="preserve" class="s022715a2-773c-41a9-865c-c8a042f7c941DefaultParagraphFont"> The term, long-term care insurance, includes group and individual annuities and life insurance policies or riders that provide direct coverage or supplement long-term care insurance. The term also includes a policy or rider that provides for payment of benefits based upon cognitive impairment or the loss of functional capacity. The term also includes qualified long-term care insurance contracts. Long-term care insurance does not include any insurance policy that is offered primarily to provide hospital confinement indemnity coverage, major medical expense coverage, or disability income or related asset-protection coverage. With regard to life insurance, this term does not include life insurance policies that accelerate the death benefit specifically for one or more of the qualifying events of terminal illness, medical conditions requiring extraordinary medical intervention, or permanent institutional confinement, and that provide the option of a lump-sum payment for those benefits, and where neither the benefits nor the eligibility for the benefits is conditioned upon the receipt of long-term care. However, any rider to a life insurance policy that accelerates benefits and:</span></p><p dir="ltr" class="s022715a2-773c-41a9-865c-c8a042f7c941Normal"><span xml:space="preserve" class="s022715a2-773c-41a9-865c-c8a042f7c941000001"> </span></p><p dir="ltr" class="s022715a2-773c-41a9-865c-c8a042f7c941Normal"><span xml:space="preserve" class="s022715a2-773c-41a9-865c-c8a042f7c941DefaultParagraphFont">    (1)  the amount of the accelerated benefit is unrelated to the reimbursement of long-term care services;</span></p><p dir="ltr" class="s022715a2-773c-41a9-865c-c8a042f7c941Normal"><span xml:space="preserve" class="s022715a2-773c-41a9-865c-c8a042f7c941DefaultParagraphFont">    (2)  contains no separate premium for the rider; and</span></p><p dir="ltr" class="s022715a2-773c-41a9-865c-c8a042f7c941Normal"><span xml:space="preserve" class="s022715a2-773c-41a9-865c-c8a042f7c941DefaultParagraphFont">    (3)  is not marketed as long-term care insurance</span></p><p dir="ltr" class="s022715a2-773c-41a9-865c-c8a042f7c941Normal"><span xml:space="preserve" class="s022715a2-773c-41a9-865c-c8a042f7c941000001"> </span></p><p dir="ltr" class="s022715a2-773c-41a9-865c-c8a042f7c941Normal"><span class="s022715a2-773c-41a9-865c-c8a042f7c941DefaultParagraphFont">is not subject to the requirements for long-term care insurance.</span></p><p dir="ltr" class="s022715a2-773c-41a9-865c-c8a042f7c941Normal"><span xml:space="preserve" class="s022715a2-773c-41a9-865c-c8a042f7c941000001"> </span></p><p dir="ltr" class="s022715a2-773c-41a9-865c-c8a042f7c941Normal"><span xml:space="preserve" class="s022715a2-773c-41a9-865c-c8a042f7c941DefaultParagraphFont">    Notwithstanding any other provision of SDCL chapter </span><a href="https://sdlegislature.gov/Statutes?Statute=58-17B"><span class="s022715a2-773c-41a9-865c-c8a042f7c941DefaultParagraphFont-000002">58-17B</span></a><span xml:space="preserve" class="s022715a2-773c-41a9-865c-c8a042f7c941DefaultParagraphFont">, any product advertised, marketed, or offered as long-term care insurance or as an alternative to long-term care or nursing home insurance that conditions benefits based upon activities of daily living (ADLs) is subject to the provisions of chapter </span><a href="https://sdlegislature.gov/Rules?Rule=20:06:21"><span class="s022715a2-773c-41a9-865c-c8a042f7c941DefaultParagraphFont-000002">20:06:21</span></a><span class="s022715a2-773c-41a9-865c-c8a042f7c941DefaultParagraphFont">.</span></p><p dir="ltr" class="s022715a2-773c-41a9-865c-c8a042f7c941Normal"><span xml:space="preserve" class="s022715a2-773c-41a9-865c-c8a042f7c941000001"> </span></p><p dir="ltr" class="s022715a2-773c-41a9-865c-c8a042f7c941Normal"><span xml:space="preserve" class="s022715a2-773c-41a9-865c-c8a042f7c941DefaultParagraphFont">    </span><span class="s022715a2-773c-41a9-865c-c8a042f7c941DefaultParagraphFont-000000">Source:</span><span xml:space="preserve" class="s022715a2-773c-41a9-865c-c8a042f7c941DefaultParagraphFont"> 28 SDR 157, effective </span><span xml:space="preserve" class="s022715a2-773c-41a9-865c-c8a042f7c941DefaultParagraphFont">May 19, 2002; 32 SDR 203, effective </span><span class="s022715a2-773c-41a9-865c-c8a042f7c941DefaultParagraphFont">June 5, 2006.</span></p><p dir="ltr" class="s022715a2-773c-41a9-865c-c8a042f7c941Normal"><span xml:space="preserve" class="s022715a2-773c-41a9-865c-c8a042f7c941DefaultParagraphFont">    </span><span class="s022715a2-773c-41a9-865c-c8a042f7c941DefaultParagraphFont-000000">General Authority:</span><span xml:space="preserve" class="s022715a2-773c-41a9-865c-c8a042f7c941DefaultParagraphFont"> SDCL </span><a href="https://sdlegislature.gov/Statutes?Statute=58-17B-4"><span class="s022715a2-773c-41a9-865c-c8a042f7c941DefaultParagraphFont-000002">58-17B-4</span></a><span class="s022715a2-773c-41a9-865c-c8a042f7c941DefaultParagraphFont">.</span></p><p dir="ltr" class="s022715a2-773c-41a9-865c-c8a042f7c941Normal"><span xml:space="preserve" class="s022715a2-773c-41a9-865c-c8a042f7c941DefaultParagraphFont">    </span><span class="s022715a2-773c-41a9-865c-c8a042f7c941DefaultParagraphFont-000000">Law Implemented:</span><span xml:space="preserve" class="s022715a2-773c-41a9-865c-c8a042f7c941DefaultParagraphFont"> SDCL </span><a href="https://sdlegislature.gov/Statutes?Statute=58-17B-2"><span class="s022715a2-773c-41a9-865c-c8a042f7c941DefaultParagraphFont-000002">58-17B-2</span></a><span class="s022715a2-773c-41a9-865c-c8a042f7c941DefaultParagraphFont">.</span></p><p dir="ltr" class="s022715a2-773c-41a9-865c-c8a042f7c941Normal"><span xml:space="preserve" class="s022715a2-773c-41a9-865c-c8a042f7c941000001"> </span></p></div></body></html>