431:10-209

Warranties, misrepresentations in applications

[§431:10H-209] Lapse or termination for nonpayment of premium. No individual long-term care policy or certificate shall lapse or be terminated for nonpayment of premium unless the insurer, at least thirty days before the effective date of the lapse or termination, has given notice to the insured and to those persons designated in section 431:10H-208 at the address provided by the insured for purposes of receiving notice of lapse or termination. Notice shall be given by first class United States mail, postage prepaid and notice may not be given until thirty days after a premium is unpaid. Notice shall be deemed to have been given as of five days after the date of mailing. [L 1999, c 93, pt of §2]the policy shall be all of the members of the association, or all of any class or classes thereof;

(3) The premium for the policy shall be paid either from the association’s own funds or from charges collected from the insured members specifically for the insurance, or from both. No policy may be placed in force unless and until at least seventy-five per cent of the then eligible members of the association, excluding any as to whom evidence of individual insurability is not satisfactory to the insurer, have elected to be covered and have arranged for payment of their individual contributions to the association. Except as provided in paragraph (4), a policy on which no part of the premium is to be derived from funds contributed by the insured members specifically for their insurance shall insure all eligible members;

(4) An insurer may exclude or limit the coverage on any person as to whom evidence of individual insurability is not satisfactory to the insurer;

(5) Charges collected from the insured members specifically for the insurance, and the dues of the association if they include the cost of insurance, may be determined according to each attained age or in not fewer than four reasonably spaced attained age groups;

(6) The policy shall cover at least twenty-five persons at date of issue; and

(7) The amounts of insurance under the policy shall be based upon some plan precluding individual selection either by the members or by the association.

As used in this section, “professional persons” means persons practicing a profession requiring examination and licensing under chapters 448, 453, 464, 466, and 605. [L 1987, c 347, pt of §2; am L 2004, c 122, §51]