HB 1701 -- Long-Term Care Insurance Co-Sponsors: Luetkenhaus, Ward This bill makes several changes to the Long-term Care Insurance Act. In its main provisions, the bill: (1) Clarifies that the term "long-term care insurance" includes any insurance policy that meets the requirements of a "qualified long-term care insurance contract," as defined in section 7702B of the Internal Revenue Code; (2) Requires the issuer of a long-term care contract to state clearly in its enrollment materials whether the contract is intended to be tax-qualified, pursuant to section 7702B; (3) Requires the issuer to deliver the certificate of insurance to the applicant within 30 days of approval; (4) Requires the policy summary to state whether it includes cost inflation protection; (5) Requires issuers to provide a written explanation for a denial of coverage within 60 days of receiving a written request for an explanation from the applicant. The issuer must provide all information directly related to the denial; (6) Allows issuers to rescind long-term care contracts upon a showing of misrepresentation. The degree of misrepresentation that must be proven will vary, depending on the length of time the policy has been in effect; (7) Prohibits a long-term care contract to be field issued based on health status; (8) Prohibits an issuer from recovering benefits paid to the policyholder when the issuer rescinds the policy; (9) Requires issuers to offer a policy that includes a nonforfeiture benefit. If that benefit is declined, the issuer must then offer a contingent benefit upon lapse. The contingent benefit must be available for a specified period of time if the issuer increases the premium substantially; (10) Requires the Department of Insurance to promulgate rules creating the standards for nonforfeiture benefits, contingent benefits upon lapse, the length of time these benefits must run, and the extent to which premiums may be increased. The department must also promulgate rules regarding marketing practices, agent compensation, agent testing, penalties, and reporting practices for long-term care insurance; and (11) Allows insurers or agents in violation of long-term care insurance requirements to be fined $10,000 or three times the commission paid for each policy involved, whichever is greater.Copyright (c) Missouri House of Representatives