General Laws of Massachusetts - Chapter 176U Long-term Care Insurance - Section 5 Nonforfeiture benefits

[Text of section applicable as provided by 2012, 312, Sec. 5.]

Section 5. (a) Except as provided in subsection (b), a long-term care insurance policy shall not be delivered or issued for delivery in the commonwealth unless the policyholder or certificate holder has been offered the option of purchasing a policy or certificate that includes 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 certificate holder 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.

(b) When a group long-term care insurance policy is issued, the offer required in subsection (a) shall be made to the group policyholder. If the policy is issued as group long-term care insurance to a group defined in clause (4) of the definition of group long-term care insurance, other than to a continuing care retirement community or other similar entity, the offer shall be made to each proposed certificate holder.

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Last modified: September 11, 2015