1 | A bill to be entitled |
2 | An act relating to long-term care policies; amending s. |
3 | 627.94073, F.S.; revising provisions requiring that |
4 | insurers notify policyholders of the right to designate a |
5 | secondary addressee to receive a notice of termination; |
6 | requiring that a canceled policy be reinstated if the |
7 | policyholder failed to pay the premium due to an extended |
8 | hospital confinement; providing construction; providing an |
9 | effective date. |
10 |
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11 | Be It Enacted by the Legislature of the State of Florida: |
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13 | Section 1. Subsections (2) and (3) of section 627.94073, |
14 | Florida Statutes, are amended, and subsection (5) is added to |
15 | that section, to read: |
16 | 627.94073 Notice of cancellation; grace period.-- |
17 | (2) A long-term care policy may not be canceled for |
18 | nonpayment of premium unless, after expiration of the grace |
19 | period in subsection (1), and at least 30 days prior to the |
20 | effective date of such cancellation, the insurer has mailed a |
21 | notification of possible lapse in coverage to the policyholder |
22 | and to a specified secondary addressee if such addressee has |
23 | been designated in writing by name and address by the |
24 | policyholder. For policies issued or renewed on or after October |
25 | 1, 1996, the insurer shall notify the policyholder, at least |
26 | once annually every 2 years, of the right to designate a |
27 | secondary addressee. The applicant has the right to designate at |
28 | least one person who is to receive the notice of termination, in |
29 | addition to the insured. Designation shall not constitute |
30 | acceptance of any liability on the third party for services |
31 | provided to the insured. The form used for the written |
32 | designation must provide space clearly designated for listing at |
33 | least one person. The form must also inform the policyholder to |
34 | update any change made to the address of the secondary |
35 | addressee. The designation shall include each person's full name |
36 | and home address. In the case of an applicant who elects not to |
37 | designate an additional person, the waiver shall state: |
38 | "Protection against unintended lapse.--I understand that I have |
39 | the right to designate at least one person other than myself to |
40 | receive notice of lapse or termination of this long-term care or |
41 | limited benefit insurance policy for nonpayment of premium. I |
42 | understand that notice will not be given until 30 days after a |
43 | premium is due and unpaid. I elect NOT to designate any person |
44 | to receive such notice." Notice shall be given by United States |
45 | Postal Service proof of mailing or certified or registered mail |
46 | to the policyholder and the secondary addressee at the addresses |
47 | provided to the insurer. first class United States mail, postage |
48 | prepaid, and Notice may not be given until 30 days after a |
49 | premium is due and unpaid. Notice shall be deemed to have been |
50 | given as of 5 days after the date of mailing. |
51 | (3) If a policy is canceled due to nonpayment of premium, |
52 | the policyholder is shall be entitled to have the policy |
53 | reinstated if, within a period of not less than 5 months after |
54 | the date of cancellation, the policyholder or any secondary |
55 | addressee designated pursuant to subsection (2) demonstrates |
56 | that the failure to pay the premium when due was unintentional |
57 | and due to the policyholder's cognitive impairment, or loss of |
58 | functional capacity, or continuous hospital confinement of the |
59 | policyholder for a period in excess of 60 days. Policy |
60 | reinstatement shall be subject to payment of overdue premiums. |
61 | The standard of proof of cognitive impairment or loss of |
62 | functional capacity shall not be more stringent than the benefit |
63 | eligibility criteria for cognitive impairment or the loss of |
64 | functional capacity, if any, contained in the policy and |
65 | certificate. The insurer may require payment of an interest |
66 | charge not in excess of 8 percent per year for the number of |
67 | days elapsing before the payment of the premium, during which |
68 | period the policy shall continue in force if the demonstration |
69 | of cognitive impairment is made. If the policy becomes a claim |
70 | during the 180-day period before the overdue premium is paid, |
71 | the amount of the premium or premiums with interest not in |
72 | excess of 8 percent per year may be deducted in any settlement |
73 | under the policy. |
74 | (5) For purposes of this section, the terms |
75 | "policyholder," "applicant," and "insured" are interchangeable. |
76 | Section 2. This act shall take effect July 1, 2008. |