[§431:10A-527.5] Life insurance policies offering long-term care benefits. (a) At the time of policy delivery, a policy summary shall be delivered for an individual life insurance policy that provides long-term care benefits within the policy or by rider. In the case of direct response solicitations, the insurer shall deliver the policy summary at the time of the applicant's request, but regardless of request shall deliver the policy summary no later than at the time of policy delivery. The policy summary shall comply with the requirements of section 431:10A-527 and shall also include:
(1) An explanation of how the long-term care benefit interacts with other components of the policy, including deductions from death benefits;
(2) An illustration of the amount of benefits, the length of benefits, and the guaranteed lifetime benefits if any, for each covered person;
(3) Any exclusions, reductions, and limitations on benefits of long-term care; and
(4) If applicable to the policy type, a disclosure of the effects of exercising other rights under the policy, a disclosure of guarantees related to long-term care costs of insurance charges, and current and projected maximum lifetime benefits.
(b) When a long-term care benefit funded through a life insurance vehicle by the acceleration of the death benefit is in benefit payment status, a monthly report shall be provided to the policyholder. The report shall include:
(1) A description of and the amount of any long-term care benefits paid out during the month;
(2) An explanation of any changes in the policy due to long-term care benefits being paid out; and
(3) The amount of long-term care benefits existing or remaining. [L 1991, c 48, §1]