<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.se397b5b3-fbbc-4636-a3a4-c091014581c0Normal { 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.se397b5b3-fbbc-4636-a3a4-c091014581c0DefaultParagraphFont { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.se397b5b3-fbbc-4636-a3a4-c091014581c0DefaultParagraphFont-000000 { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.se397b5b3-fbbc-4636-a3a4-c091014581c0000001 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.se397b5b3-fbbc-4636-a3a4-c091014581c0DefaultParagraphFont-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="se397b5b3-fbbc-4636-a3a4-c091014581c0Normal"><span xml:space="preserve" class="se397b5b3-fbbc-4636-a3a4-c091014581c0DefaultParagraphFont">    </span><span class="se397b5b3-fbbc-4636-a3a4-c091014581c0DefaultParagraphFont-000000">20:06:21:57.  Nonforfeiture benefits.</span></p><p dir="ltr" class="se397b5b3-fbbc-4636-a3a4-c091014581c0Normal"><span xml:space="preserve" class="se397b5b3-fbbc-4636-a3a4-c091014581c0000001"> </span></p><p dir="ltr" class="se397b5b3-fbbc-4636-a3a4-c091014581c0Normal"><span xml:space="preserve" class="se397b5b3-fbbc-4636-a3a4-c091014581c0DefaultParagraphFont">    (1)  Except as provided in subdivision </span><span class="se397b5b3-fbbc-4636-a3a4-c091014581c0DefaultParagraphFont">20:06:21:57(2), a long-term care insurance policy may not be delivered or issued for delivery in this state unless the policyholder or certificate holder has been offered the option of purchasing a policy or certificate including a nonforfeiture benefit. The offer of a nonforfeiture benefit may be in the form of a rider that is attached to the policy. In the event the policyholder or certificateholder declines the nonforfeiture benefit, the insurer shall provide a contingent benefit upon lapse that shall be available for a specified period of time following a substantial increase in premium rates.</span></p><p dir="ltr" class="se397b5b3-fbbc-4636-a3a4-c091014581c0Normal"><span xml:space="preserve" class="se397b5b3-fbbc-4636-a3a4-c091014581c0000001"> </span></p><p dir="ltr" class="se397b5b3-fbbc-4636-a3a4-c091014581c0Normal"><span xml:space="preserve" class="se397b5b3-fbbc-4636-a3a4-c091014581c0DefaultParagraphFont">    (2)  When a group long-term care insurance policy is issued, the offer required in subdivision </span><span xml:space="preserve" class="se397b5b3-fbbc-4636-a3a4-c091014581c0DefaultParagraphFont">20:06:21:57(1) shall be made to the group policyholder. However, if the policy is issued as group long-term care insurance as defined in SDCL </span><a href="https://sdlegislature.gov/Statutes?Statute=58-17B-2"><span class="se397b5b3-fbbc-4636-a3a4-c091014581c0DefaultParagraphFont-000002">58-17B-2</span></a><span class="se397b5b3-fbbc-4636-a3a4-c091014581c0DefaultParagraphFont">(4)(d), other than to a continuing care retirement community or other similar entity, the offering shall be made to each proposed certificateholder.</span></p><p dir="ltr" class="se397b5b3-fbbc-4636-a3a4-c091014581c0Normal"><span xml:space="preserve" class="se397b5b3-fbbc-4636-a3a4-c091014581c0000001"> </span></p><p dir="ltr" class="se397b5b3-fbbc-4636-a3a4-c091014581c0Normal"><span xml:space="preserve" class="se397b5b3-fbbc-4636-a3a4-c091014581c0DefaultParagraphFont">    </span><span class="se397b5b3-fbbc-4636-a3a4-c091014581c0DefaultParagraphFont-000000">Source:</span><span xml:space="preserve" class="se397b5b3-fbbc-4636-a3a4-c091014581c0DefaultParagraphFont"> 28 SDR 157, effective </span><span xml:space="preserve" class="se397b5b3-fbbc-4636-a3a4-c091014581c0DefaultParagraphFont">May 19, 2002; 30 SDR 39, effective </span><span class="se397b5b3-fbbc-4636-a3a4-c091014581c0DefaultParagraphFont">September 28, 2003.</span></p><p dir="ltr" class="se397b5b3-fbbc-4636-a3a4-c091014581c0Normal"><span xml:space="preserve" class="se397b5b3-fbbc-4636-a3a4-c091014581c0DefaultParagraphFont">    </span><span class="se397b5b3-fbbc-4636-a3a4-c091014581c0DefaultParagraphFont-000000">General Authority:</span><span xml:space="preserve" class="se397b5b3-fbbc-4636-a3a4-c091014581c0DefaultParagraphFont"> SDCL </span><a href="https://sdlegislature.gov/Statutes?Statute=58-17B-4"><span class="se397b5b3-fbbc-4636-a3a4-c091014581c0DefaultParagraphFont-000002">58-17B-4</span></a><span class="se397b5b3-fbbc-4636-a3a4-c091014581c0DefaultParagraphFont">.</span></p><p dir="ltr" class="se397b5b3-fbbc-4636-a3a4-c091014581c0Normal"><span xml:space="preserve" class="se397b5b3-fbbc-4636-a3a4-c091014581c0DefaultParagraphFont">    </span><span class="se397b5b3-fbbc-4636-a3a4-c091014581c0DefaultParagraphFont-000000">Law Implemented:</span><span xml:space="preserve" class="se397b5b3-fbbc-4636-a3a4-c091014581c0DefaultParagraphFont"> SDCL </span><a href="https://sdlegislature.gov/Statutes?Statute=58-17B-4"><span class="se397b5b3-fbbc-4636-a3a4-c091014581c0DefaultParagraphFont-000002">58-17B-4</span></a><span class="se397b5b3-fbbc-4636-a3a4-c091014581c0DefaultParagraphFont">.</span></p><p dir="ltr" class="se397b5b3-fbbc-4636-a3a4-c091014581c0Normal"><span xml:space="preserve" class="se397b5b3-fbbc-4636-a3a4-c091014581c0000001"> </span></p></div></body></html>