Section 3.4314 - Requirements for Acceleration-of-Life-Insurance Benefits That Fund Long-Term Care ExpensesWhen a life insurance contract provides for payment of long-term care expenses funded through an acceleration-of-life-insurance benefit provision, the long-term care provisions of the contract must meet the following requirements of Subchapter Y of this chapter (relating to Standards for Long-Term Care Insurance Coverage under Individual and Group Policies):
(1) Terms must be defined consistently with § 3.3804 of this title (relating to Definitions);(2) Definitions and descriptions of providers must be consistent with the requirements of § 3.3812 of this title (relating to Policy Standards for Provider);(3) To the extent that the acceleration-of-life-insurance provisions provide for payment of home health or adult day care expenses, such provisions must meet applicable standards contained in § 3.3815 of this title (relating to Standards for Home Health and Adult Day Care Benefits);(4) Conditions triggering eligibility for benefits must comply with § 3.3818 of this title (relating to Standards for Eligibility for Benefits); and(5) To the extent that the acceleration-of-life-insurance benefit is intended to fund long-term care expenses that will qualify for favorable tax treatment under federal law, the long-term care provisions of the contract must further comply with the provisions of § 3.4315 of this title (relating to Requirements for Benefits Represented To Be Qualified for Favorable Federal Tax Treatment) that are applicable to expenses paid for a "qualified long-term care illness," as defined in §3.4315, and any additional federal requirements for favorable tax treatment.28 Tex. Admin. Code § 3.4314
The provisions of this §3.4314 adopted to be effective March 1, 1998, 23 TexReg 1585; transferred effective April 16, 1999, 24 TexReg 3092.