Rule 20:06:21:57 Nonforfeiture benefits.
(1) Except as provided in
subdivision 20:06:21:57(2), 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 including 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 certificateholder declines the nonforfeiture
benefit, the insurer shall provide a contingent benefit upon lapse that shall
be available for a specified period of time following a substantial increase in
(2) When a group long-term
care insurance policy is issued, the offer required in subdivision
20:06:21:57(1) shall be made to the group policyholder. However, if the policy
is issued as group long-term care insurance as defined in SDCL 58-17B-2(4)(d), other than to a continuing care retirement community or other similar entity, the offering shall be made to each proposed certificateholder.
28 SDR 157, effective May 19, 2002; 30 SDR 39, effective September 28, 2003.
Authority: SDCL 58-17B-4.
Implemented: SDCL 58-17B-4.
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