110 STAT. 2064
PUBLIC LAW 104-191—AUG. 21, 1996
protection shall permit the signature to be on an
application or on a separate form.
"(XI) Section 23 (relating to prohibition against
preexisting conditions and probationary periods in
replacement policies or certificates),
"(ii) MODEL ACT.—The following requirements of
the model Act:
"(I) Section 6C (relating to preexisting conditions).
"(II) Section 6D (relating to prior hospitalization).
"(B) DEFINITIONS. —For purposes of this paragraph—
"(i) MODEL PROVISIONS.— The terms 'model regulation' and 'model Act' mean the long-term care insurance model regulation, and the long-term care insurance model Act, respectively, promulgated by the
National Association of Insurance Commissioners (as
adopted as of January 1993).
"(ii) COORDINATION.— Any provision of the model
regulation or model Act listed under clause (i) or (ii)
of subparagraph (A) shall be treated as including any
other provision of such regulation or Act necessary
to implement the provision.
" (iii) DETERMINATION.— For purposes of this section
and section 4980C, the determination of whether any
requirement of a model regulation or the model Act
has been met shall be made by the Secretary.
"(3) DISCLOSURE REQUIREMENT.—The requirement of this
paragraph is met with respect to any contract if such contract
meets the requirements of section 4980C(d).
"(4) NONFORFEITURE REQUIREMENTS.—
"(A) IN GENERAL.—The requirements of this paragraph
are met with respect to any level premium contract,
if the issuer of such contract offers to the policyholder,
including any group policyholder, a nonforfeiture provision
meeting the requirements of subparagraph (B).
"(B) REQUIREMENTS OF PROVISION.—The nonforfeiture
provision required under subparagraph (A) shall meet the
following requirements:
"(i) The nonforfeiture provision shall be appropriately captioned.
"(ii) The nonforfeiture provision shall provide for
a benefit available in the event of a default in the
payment of any premiums and the amount of the benefit may be adjusted subsequent to being initially
granted only as necessary to reflect changes in claims,
persistency, and interest as reflected in changes in
rates for premium paying contracts approved by the
Secretary for the same contract form.
"(iii) The nonforfeiture provision shall provide at
least one of the following:
"(I) Reduced paid-up insurance.
"(II) Extended term insurance.
"(Ill) Shortened benefit period.
"(IV) Other similar offerings approved by the
Secretary.
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