Vermont § 8095 - Nonforfeiture benefits

§ 8095. Nonforfeiture benefits

• (a) Except as provided in subsection (b) of this section, a long-term care insurance policy
  may not be delivered or issued for delivery in this State unless the policyholder
  or certificate holder has been offered the option of purchasing a policy or certificate
  that includes a nonforfeiture benefit. The offer of a nonforfeiture benefit may be
  in the form of a rider that is attached to the policy. In the event the policyholder
  or certificate holder declines the nonforfeiture benefit, the insurer shall provide
  a contingent benefit upon lapse of the policy that shall be available for a specified
  period of time following a substantial increase in premium rates. (b) When a group long-term care insurance policy is issued, the offer required in subsection
  (a) of this section shall be made to the group policyholder. However, if the policy
  is issued as group long-term care insurance as defined in subdivision 8082(4)(D) of this title, other than to a continuing care retirement community or other similar entity, the
  offering shall be made to each proposed certificate holder. (c) The Commissioner shall adopt rules specifying the type or types of nonforfeiture benefits
  to be offered as part of long-term care insurance policies and certificates, the standards
  for nonforfeiture benefits, and the rules regarding contingent benefit upon lapse
  of the policy, including a determination of the specified period of time during which
  a contingent benefit upon lapse will be available and the substantial premium rate
  increase that triggers a contingent benefit upon lapse as described in subsection
  (a) of this section. (Added 2003, No. 124 (Adj. Sess.), § 2, eff. Jan. 1, 2005.)