Section 3 AAC 28.562 - Requirements for application forms and replacement coverage(a) An application form must include the questions prescribed by the director designed to elicit information as to whether, as of the date of the application, the applicant has another long-term care insurance policy or certificate in force or whether a long-term care policy or certificate is intended to replace another accident-and- sickness or long-term care policy or certificate presently in force. A supplementary application or other form to be signed by the applicant and agent, except where the coverage is sold without an agent, containing the questions may be used. With regard to a replacement policy issued to a group defined by AS 21.53.200(3)(A), the questions may be modified only to the extent necessary to elicit information about health or long-term care insurance policies other than the group policy being replaced, if the certificate holder has been notified of the replacement.(b) An agent shall list other health insurance policies that the agent has sold to the applicant, including;(1) policies sold that are still in force; and(2) policies sold in the past five years that are no longer in force.(c) Upon determining that a sale will involve replacement, an insurer, other than an insurer using direct response solicitation methods, or its agent, shall furnish the applicant, before issuance or delivery of the individual long-term care insurance policy, a notice regarding replacement of accident-and-sickness or long-term care coverage. One copy of the notice shall be retained by the applicant and an additional copy signed by the applicant shall be retained by the insurer. The required notice shall be provided in the manner prescribed by the director.(d) Insurers using direct response solicitation methods shall deliver a notice regarding replacement of accident-and-sickness or long-term care coverage to the applicant upon issuance of the policy. The required notice shall be provided in the manner prescribed by the director(e) If replacement is intended, the replacing insurer may notify, in writing, the existing insurer of the proposed replacement. The existing policy shall be identified by the insurer, name of the insured, and policy number or address including zip code. Notice shall be made not later than five working days from the date the application is received by the insurer or the date the policy is issued, whichever is sooner.(f) A life insurance policies that accelerate benefits for long-term care must comply with this section if the policy being replaced is a long-term care insurance policy. If the policy being replaced is a life insurance policy, the insurer shall comply with the replacement requirements of 3 AAC 26.790 - 3 AAC 26.81. If a life insurance policy that accelerates benefits for long-term care is replaced by another policy, the replacing insurer shall comply with both the long-term care and the life insurance replacement requirements.Eff. 3/27/2022, Register 241, April 2022Authority:AS 21.06.090
AS 21.53.020
AS 21.53.030
AS 21.53.050
AS 21.53.090
AS 21.53.200