Page:United States Statutes at Large Volume 110 Part 3.djvu/335

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PUBLIC LAW 104-191—AUG. 21, 1996 110 STAT. 2065 "(5) CROSS REFERENCE.— Tor coordination of the requirements of this subsection with State requirements, see section 4980C(f).. SEC. 326. REQUIREMENTS FOR ISSUERS OF QUALIFIED LONG-TERM CARE INSURANCE CONTRACTS. (a) IN GENERAL.— Chapter 43 is amended by adding at the end the following new section: "SEC. 4980C. REQUIREMENTS FOR ISSUERS OF QUALIFIED LONG-TERM CARE INSURANCE CONTRACTS. "(a) GENERAL RULE. — There is hereby imposed on any person failing to meet the requirements of subsection (c) or (d) a tax in the amount determined under subsection (b). " (b) AMOUNT.— "(1) IN GENERAL.—The amount of the tax imposed by subsection (a) shall be $100 per insured for each day any requirement of subsection (c) or (d) is not met with respect to each qualified long-term care insurance contract. "(2) WAIVER. —In the case of a failure which is due to reasonable cause and not to willful neglect, the Secretary may waive part or all of the tax imposed by subsection (a) to the extent that payment of the tax would be excessive relative to the failure involved. "(c) RESPONSIBILITIES. —The requirements of this subsection are as follows: "(1) REQUIREMENTS OF MODEL PROVISIONS. — "(A) MODEL REGULATION.—The following requirements of the model regulation must be met: "(i) Section 13 (relating to application forms and replacement coverage). "(ii) Section 14 (relating to reporting requirements), except that the issuer shall also report at least annually the number of claims denied during the reporting period for each class of business (expressed as a percentage of claims denied), other than claims denied for failure to meet the waiting period or because of any applicable preexisting condition. "(iii) Section 20 (relating to filing requirements for marketing). "(iv) Section 21 (relating to standards for marketing), including inaccurate completion of medical histories, other than sections 21C(1) and 21C(6) thereof, except that— "(I) in addition to such requirements, no person shall, in selling or offering to sell a qualified long-term care insurance contract, misrepresent a material fact; and "(II) no such requirements shall include a requirement to inquire or identify whether a prospective applicant or enrollee for long-term care insurance has accident and sickness insurance. "(v) Section 22 (relating to appropriateness of recommended purchase). "(vi) Section 24 (relating to standard format outline of coverage).