                                 CODE OF VIRGINIA

DISCLOSURE (§ 38.2-5207)

In order to provide for fair disclosure in the sale of long-term care insurance
policies:

1. An outline of coverage shall be delivered to an applicant for an individual
long-term care insurance policy at the time of application for an individual
policy. In the case of direct response solicitation, the insurer shall deliver
the outline of coverage upon the applicant&#8217;s request, but regardless of
request shall make such delivery no later than at the time of policy delivery.
The Commission shall prescribe a standard format, including style, arrangement,
and overall appearance, and the content of an outline of coverage. In the case
of agent solicitations, an agent shall deliver the outline of coverage prior to
the presentation of an application or enrollment form. In the case of direct
response solicitations, the outline of coverage shall be presented in
conjunction with any application or enrollment form.
			Such outline of coverage shall include:
			a. A description of the principal benefits and coverage provided in the
policy;
			b. A statement of the exclusions, reductions and limitations contained in the
policy;
			c. A statement of the renewal provisions, including any reservation in the
policy of a right to change premiums. Continuation or conversion provisions of
group coverage shall be specifically described;
			d. A statement that the outline of coverage is a summary of the policy issued
or applied for and that the policy should be consulted to determine governing
contractual provisions;
			e. A description of the terms under which the policy may be returned and
premium refunded; and
			f. A brief description of the relationship of cost of care and benefits.

2. A certificate delivered or issued for delivery in this Commonwealth shall
include:
			a. A description of the principal benefits and coverage provided in the
policy;
			b. A statement of the exclusions, reductions and limitations contained in the
policy; and
			c. A statement that the group master policy should be consulted to determine
governing contractual provisions.

3. The Commission shall adopt and publish a Long-Term Care Insurance Consumer
Guide. After adoption and publication by the Commission, a copy of the Consumer
Guide shall be provided at the time of delivery of the policy or certificate.

4. No long-term care insurance policy or certificate shall be marketed as a
qualified long-term care insurance policy or federally tax-qualified long-term
care insurance contract unless the policy or contract contains a statement
prominently disclosing that such policy or certificate is a qualified long-term
care insurance policy or federally tax-qualified long-term care insurance
contract.

HISTORY: 1987, c. 586; 1990, c. 285; 2000, c. 559.