OAR 836-052-0716
Disclosure Statement
(1)
An insurer offering long-term care insurance coverage in this state shall deliver a disclosure statement as provided in this rule to the insured under a long-term care insurance policy, rider or certificate or separately but at the same time as delivery of the policy, rider or certificate.(2)
The disclosure statement must include the following matters:(a)
A statement of the premium. The statement must give the total annual premium for the policy, rider or certificate and, if the premium varies with an applicant’s choice among benefits options, must indicate the portion of annual premium corresponding to each benefit option;(b)
The terms of renewability. The terms used to describe renewability must be used in accordance with OAR 836-052-0526 (Policy Practices and Provisions). The terms must be stated on the first page of the policy and must be one of the following, defined as follows:(A)
A policy is “guaranteed renewable” when renewal cannot be declined by the insurer for any reason, but the insurer can revise rates on a class basis;(B)
A policy is “noncancellable” if the insurer cannot decline renewal and cannot revise rates.(c)
Initial and subsequent conditions of eligibility;(d)
A statement of nonduplication of coverage provisions;(e)
Coverage of dependents;(f)
Preexisting conditions;(g)
Termination of insurance;(h)
Continuation or conversion of coverage;(i)
Any probationary periods;(j)
Limitations, exceptions and reductions;(k)
Elimination periods;(l)
Requirements for replacement;(m)
Recurrent conditions;(n)
Definitions of terms;(o)
Option to apply for new benefits(3)
The disclosure statement:(a)
Must be printed in not less than twelve point type;(b)
May not contain material of an advertising nature.(4)
The disclosure statement must include the following statement: CAUTION: Issuance of this long-term care insurance (policy) (rider) (certificate) is based upon your answers to the questions on your application. (A copy of your (application) (enrollment form) is enclosed.) — OR — (You retained a copy of your (application) (enrollment form) when you applied.) If your answers are incorrect or untrue, the company may deny benefits or rescind your policy.(5)
When long term care benefits are provided through early payment of a portion of a life insurance policy death benefit, the disclosure statement must include the following statements:(a)
“NOTICE: The long term care benefits described here are provided as part of a life insurance policy. Your premiums pay for life insurance. Whenever long term care benefits are paid from this policy, the payments will reduce the available cash value and death benefit under the life insurance policy”;(b)
A statement of disclosure regarding tax consequences, as described in OAR 836-052-0546 (Required Policy Provisions)(6).
Source:
Rule 836-052-0716 — Disclosure Statement, https://secure.sos.state.or.us/oard/view.action?ruleNumber=836-052-0716
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