California Insurance Code

§ 10235.40

INS § 10235.40 Effective Jan 1, 2020Div. 2 · Part 2 · Ch. 2.6 · Art. 4

Statute text

(a)An individual long-term care policy or certificate shall not be issued until the applicant has been given the right to designate at least one individual, in addition to the applicant, to receive notice of lapse or termination of a policy or certificate for nonpayment of premium. The insurer shall receive from each applicant one of the following:

(1)A written designation listing the name, address, and telephone number of at least one individual, in addition to the applicant, who is to receive notice of lapse or termination of the policy or certificate for nonpayment of premium.

(2)A waiver signed and dated by the applicant electing not to designate additional persons to receive notice. The required waiver shall read as follows: “Protection Against Unintended Lapse. I understand that I have the right to designate at least one person other than myself to receive notice of lapse or termination of this long-term care insurance policy for nonpayment of premium. I understand that notice will not be given until 30 days after a premium is due and unpaid. I elect not to designate any person to receive the notice. Signature of Applicant Date”

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Legislative history

Amended by Stats. 2019, Ch. 625, Sec. 1. (AB 1209) Effective January 1, 2020.