Section R590-285-21 - Right to Reduce Coverage and Lower Premiums(1)(a) Every limited long-term care insurance policy and certificate shall include a provision that allows the policyholder or certificateholder to reduce coverage and lower the policy or certificate premium in at least one of the following ways:(i) reducing the maximum benefit; or(ii) reducing the daily, weekly, or monthly benefit amount.(b) The insurer may also offer other reduction options that are consistent with the policy or certificate design, or the insurer's administrative processes.(c) In the event the reduction in coverage involves the reduction or elimination of the inflation protection provision, the insurer shall allow the policyholder to continue the benefit amount in effect at the time of the reduction.(2) The provision shall include a description of the process for requesting and implementing a reduction in coverage.(3) The premium for the reduced coverage shall:(a) be based on the same age and underwriting class used to determine the premium for the coverage currently in force; and(b) be consistent with the approved rate table.(4) The insurer may limit any reduction in coverage to plans or options available for that policy form and to those for which benefits will be available after consideration of claims paid or payable.(5) If a policy or certificate is about to lapse, the insurer shall provide a written reminder to the policyholder or certificateholder of the policyholder's or certificateholder's right to reduce coverage and premiums in the notice required by Subsection R590-285-6(1)(c) of this regulation.(6) The requirements of Subsections R590-285-21(1) through (5) shall apply to any limited long-term care policy issued in this state on or after January 1, 2022.(7)(a) A premium increase notice required by Subsection R590-285-8(5) shall include: (i) an offer to reduce policy benefits provided by the current coverage consistent with the requirements of this section; and(ii) a disclosure stating that all options available to the policyholder may not be of equal value.(b) The requirements of this Subsection R590-285-21(7) shall apply to any rate increase implemented in this state on or after January 1, 2022.Utah Admin. Code R590-285-21
Adopted by Utah State Bulletin Number 2021-05, effective 2/23/2021