§ 18-106. Outline of coverage and buyer's guide

   (a) Required. --

   (1) A carrier shall provide to each applicant an outline of coverage and buyer's guide.

   (2) The carrier shall deliver the outline of coverage and buyer's guide:

      (i) in the case of solicitation by the carrier or insurance producer of the carrier, before the presentation of an application or enrollment form; and

      (ii) in the case of direct response solicitation, with the application or enrollment form.

(b) Contents of outline of coverage. -- The outline of coverage shall include:

   (1) a description of the principal benefits and coverage provided in the policy or contract;

   (2) a statement of the principal exclusions, reductions, and limitations in the policy or contract;

   (3) a statement of the renewal provisions, including any reservation in the policy or contract of a right to change the schedule of premiums;

   (4) a statement that the outline of coverage is a summary of the policy or contract issued or applied for and the policy or contract should be consulted to determine the governing contractual provisions; and

   (5) any expected premium increases or additional premiums to pay for automatic or optional benefit increases, including a reasonable hypothetical or graphic demonstration of the potential premiums that the applicant will need to pay at age 75 for benefit increases.

(c) Information in buyer's guide. -- The buyer's guide shall include information about buying a policy of long-term care insurance, including a reference to the right of the buyer to cancel a policy during the first 30 days after the policy is delivered.

(d) Comparison of benefit levels. -- A carrier shall provide an applicant with a graphic comparison, over a period of at least 20 years, of the benefit levels of a policy that increases benefits over the policy or certificate period compared to the benefit levels of a policy that does not increase benefits.

HISTORY: An. Code 1957, art. 48A, § 647; 1997, ch. 35, § 2; ch. 70, § 13, 14; 2001, ch. 731; 2007, chs. 28, 29; 2009, chs. 597, 598.