Alabama § 27-47-2 - Deduction for Premiums Paid for Long-Term Care Insurance Contract; Treatment of Contract; Coverage.
Full text of Alabama Code of Alabama § 27-47-2 — Deduction for Premiums Paid for Long-Term Care Insurance Contract; Treatment of Contract; Coverage., with citation guidance and answers to common questions.
§ 27-47-2. Deduction for Premiums Paid for Long-Term Care Insurance Contract; Treatment of Contract; Coverage.
(a) The premiums paid for a long-term care insurance contract are deductible pursuant to Section 40-18-15, if the contract meets the following requirements:
(1) Offers coverage only for qualified long-term care services and benefits incidental to the coverage.
(2) Guaranteed renewal.
(3) No cash surrender value.
(4) All refunds of premiums and all policyholder dividends or similar amounts under the contract are to be applied as a reduction in future premiums or to increase future benefits, except for a refund of premiums on surrender or cancellation of the policy.
(b) For purposes of this chapter, a long-term care insurance contract shall be treated as an accident or health insurance contract. The amount of coverage under the long-term care insurance contract shall be equal to or greater than Medicaid coverage for a period of at least three years.
(c) An insurance contract shall not fail to be treated as a long-term care contract by reason of the payments being made on a per diem or other periodic basis without regard to the expenses incurred during the period to which the payments relate.
(d) A long-term care insurance contract may cover Medicare reimbursable expenses where Medicare is a secondary payor.
(e) In the case of long-term care insurance coverage provided by a rider on a life insurance contract, this chapter shall apply as if the portion of the contract providing long-term care coverage was a separate contract.
(f) The deduction is available to the person or entity who pays the premiums.
Source: official Alabama text · Last verified 2026-08-27
Frequently Asked Questions About Alabama § 27-47-2
What does Code of Alabama § 27-47-2 cover?
Section 27-47-2 ("Deduction for Premiums Paid for Long-Term Care Insurance Contract; Treatment of Contract; Coverage.") is part of the Code of Alabama, the codified statutory law of Alabama. It sets out the legal rule or procedure described in the text above. Statutes are amended regularly, so always verify against the official source.
How do I cite Alabama § 27-47-2?
A common citation format is "Code of Alabama § 27-47-2" (Alabama). Legal writing may require the code abbreviation, section number, and year or edition. Match the style required by your court, professor, or publisher.
Is this the official text of Alabama law?
No. This page is for research and education and may not include the most recent amendments. For official current law, check the Alabama official source linked on this page or consult a licensed Alabama attorney.
How does Alabama § 27-47-2 apply to my situation?
Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in Alabama can advise on how this section applies to you. Contact your state or local bar association for a referral.
Sources & Verification
Not legal advice. Verify against the official source and consult a licensed attorney in Alabama.