(1) The commissioner shall adopt rules
requiring disclosure to consumers of the level, type, and amount
of benefits provided and the limitations, exclusions, and
exceptions contained in a long-term care insurance policy or
contract. In adopting such rules the commissioner shall require
an understandable disclosure to consumers of any cost for
services that the consumer will be responsible for in utilizing
benefits covered under the policy or contract.
(2) Each long-term care insurance policy or contract shall
include a provision, prominently displayed on the first page of
the policy or contract, stating in substance that the person to
whom the policy or contract is sold shall be permitted to return
the policy or contract within thirty days of its delivery. In
the case of policies or contracts solicited and sold by mail, the
person may return the policy or contract within sixty days. Once
the policy or contract has been returned, the person may have the
premium refunded if, after examination of the policy or contract,
the person is not satisfied with it for any reason. An
additional ten percent penalty shall be added to any premium
refund due which is not paid within thirty days of return of the
policy or contract to the insurer or insurance producer. If a
person, pursuant to such notice, returns the policy or contract
to the insurer at its branch or home office, or to the insurance
producer from whom the policy or contract was purchased, the
policy or contract shall be void from its inception, and the
parties shall be in the same position as if no policy or contract
had been issued.
(3) No later than January 1, 2010, or when the insurer has
used all of its existing paper long-term care insurance policy
forms which were in its possession on July 1, 2009, whichever is
earlier, the notice required by subsection (2) of this section
shall use the term insurance producer in place of agent.
[2008 c 217 § 67; 1986 c 170 § 5.]
NOTES:
Severability -- Effective date -- 2008 c 217: See notes following RCW 48.03.020.