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.