Section Ins 3602.05 - Exchanges(a) The insurer shall exchange long-term care coverage that was purchased on or after February 8, 2006 for partnership coverage in one of the following ways: (1) For all non-certified partnership policies or certificates, by adding an endorsement that all the provisions required to qualify the policy as a New Hampshire partnership policy have been met and the policy is a New Hampshire partnership policy; or(2) By exchanging an existing policy or certificate for a new partnership policy or certificate or by adding a rider or endorsement to an existing policy or certificate.(b) The following provisions shall apply to any exchange: (1) If the new coverage has an actuarial value of benefits equal to or lesser than the actuarial value of benefits of the existing coverage, based on uniform assumptions as determined on the date of issue for a new insured, then: a.. The new policy or certificate shall not be underwritten; andb. The rate charged for the new policy or certificate shall be determined using the original issue age and risk class of the insured that was used to determine the rate of the existing policy;(2) If the new coverage has an actuarial value of benefits exceeding the actuarial value of benefits of the existing coverage, based on uniform assumptions, as determined on the date of issue for a new insured, then: a. The insurer shall apply its new business, long-term care underwriting guidelines to the increased benefits only; andb. The rate charged for the new policy or certificate shall be determined using the method set forth in subparagraph (b)(1)b. above for the existing benefits, increased by the rate for the increased benefits using the current attained age and risk class of the insured for the increased benefits only;(3) Any exchange offer shall be made to all policyholders and certificate holders on a nondiscriminatory basis;(4) Except for an exchange of a non-certified partnership policy or certificate pursuant to (a)(1) of this section, an exchange offer shall be deferred for any policyholder or certificateholder who is currently within an elimination period under the policy or is receiving benefits under the policy. Such deferral shall continue so long as the eligibility for benefits or elimination period exists;(5) In addition to the requirements of this part, all exchanges shall comply with the requirements of Ins 3601, provided however that Ins 3601.23 shall not apply to the exchange of a non-certified partnership policy or certificate for a New Hampshire partnership policy or certificate when the new coverage has an actuarial value of benefits equal to or lesser than the actuarial value of benefits of the original non-certified partnership policy or certificate;(6) The new coverage offered shall be on a New Hampshire partnership policy or certificate form that is approved for sale in the general market;(7) The insurer shall issue the disclosure notice as set forth in Ins 3602.06(a)(2); and(8) The insured shall not lose any rights, benefits, or built-up value that have accrued under the original policy with respect to the benefits provided under the original policy, including, but not limited to, rights established because of the lapse of time related to pre-existing condition exclusions, elimination periods, or incontestability clauses.(c) Policies issued pursuant to this section shall be considered exchanges and not replacements.N.H. Admin. Code § Ins 3602.05
Amended by Volume XXXVIII Number 06, Filed February 8, 2018, Proposed by #12472, Effective 2/16/2018, Expires 2/16/2028.