Long-Term Care Insurance *****
Disclosure
Just like before, the outline of coverage and the Buyer's Guide are the same as has been previously discussed, so here is yet another review.
Outline of coverage (long-term care)
The outline of coverage must be delivered at the time of application or no later than at the time of policy delivery, give a description of benefits, a statement of exclusions limitations in the policy, and a statement of renewal provisions, including any right to change premiums. For long term care policies it must also include:
- a statement that the outline of coverage is a summary of the policy and that the policy should be consulted to determine governing contractual provisions;
- a graphic comparison of the benefit levels of a policy that increases benefits over the policy period and a policy that does not increase benefits, showing benefit levels over a period of at least 20 years; and
- any premium increases or additional premiums required for automatic or optional benefit increases. If the amount of premium increases or additional premiums depends on the age of the applicant at the time of the increase, the insurer must also disclose the amount of the increased premiums or additional premiums for benefit increases that would be required of the applicant at the ages of 75 and 85 years.
Buyer's Guide *****
This is also called a shopper's guide and must be delivered prior to presenting an application. Life insurance policies or riders containing accelerated long-term care benefits are not required to furnish the above-referenced guide, but shall furnish the Policy Summary required under Florida law.
For all other insurance policies, the Buyer’s guide is given before the first premium is paid, but that for LTC it’s given before the application is presented to the customer.
Advertising and Marketing ***
All insurance companies have to file their advertisements, no matter the type of media, with the Office of Insurance Regulation. The insurance company can start using the advertising immediately upon submitting it for approval to the Office of Insurance Regulation (so the company does NOT have to wait for the ad to be approved), but if it is disapproved they must immediately stop using it.
A qualified long-term care insurance policy must include a disclosure statement within the policy and within the outline of coverage that the policy is intended to be a qualified long-term contract. The disclosure must be prominently displayed and must read as follows:
"This long-term care insurance policy is not intended to be a qualified long-term care insurance contract. You need to be aware that benefits received under this policy may create unintended, adverse income tax consequences to you. You may want to consult with a knowledgeable individual about such potential income tax consequences.