C.R.S.
Section 10-19-103
Definitions
(1)
“Applicant” means:(a)
In the case of an individual long-term care insurance policy, the person who seeks to contract for benefits; and(b)
In the case of a group long-term care insurance policy, the proposed certificate holder.(1.5)
Repealed.(2)
“Certificate” means any certificate issued under a group long-term care insurance policy, which policy has been delivered or issued for delivery in this state.(3)
“Commissioner” means the commissioner of insurance.(3.5)
“Dementia diseases and related disabilities” has the same meaning set forth in section 10-16-102 (16.5).(4)
“Group long-term care insurance” means a long-term care insurance policy which is delivered or issued for delivery in this state and issued to one of the following:(a)
One or more employers or labor organizations, or to a trust or to the trustees of a fund established by one or more employers or labor organizations, or a combination thereof, for employees or former employees or a combination thereof or for members or former members or a combination thereof, of the labor organizations;(b)
Any professional, trade, or occupational association for its members or former or retired members, or combination thereof, if such association:(I)
Is composed of individuals all of whom are or were actively engaged in the same profession, trade, or occupation; and(II)
Has been maintained in good faith for purposes other than obtaining insurance;(c)
Intentionally left blank —Ed.(I)
An association or a trust or the trustee of a fund established, created, or maintained for the benefit of members of one or more associations. Prior to advertising, marketing, or offering such policy within this state, the association or the insurer of the association shall file evidence with the commissioner that the association has at the outset a minimum of one hundred persons and has been organized and maintained in good faith for purposes other than that of obtaining insurance, has been in active existence for at least one year, and has a constitution and bylaws which provide that:(A)
The association holds regular meetings not less than annually to further purposes of the members;(B)
Except for credit unions, the association collects dues or solicits contributions from members; and(C)
The members have voting privileges and representation on the governing board and committees.(II)
Thirty days after such filing, the association will be deemed to satisfy such organizational requirements, unless the commissioner makes a finding that the association does not satisfy those organizational requirements.(d)
A group other than as described in paragraph (a), (b), or (c) of this subsection (4), subject to a finding by the commissioner that:(I)
The issuance of the group policy is not contrary to the best interest of the public;(II)
The issuance of the group policy would result in economies of acquisition or administration; and(III)
The benefits are reasonable in relation to the premiums charged.(5)
“Long-term care insurance” means any insurance policy or rider advertised, marketed, offered, or designed to provide coverage for not less than twelve consecutive months for each covered person on an expense-incurred, indemnity, prepaid, or other basis for one or more necessary or medically necessary diagnostic, preventive, therapeutic, rehabilitative, maintenance, or personal care services provided in a setting other than an acute care unit of a hospital. “Long-term care insurance” includes group and individual annuities and life insurance policies or riders that provide directly or that supplement long-term care insurance. The term shall also include qualified long-term care insurance contracts. This term does not include life insurance policies that accelerate the death benefit specifically for one or more of the qualifying events of terminal illness, medical conditions requiring extraordinary medical intervention, or permanent institutional confinement and that provide the option of a lump-sum payment for those benefits and in which neither the benefits nor the eligibility for the benefits is conditioned upon the receipt of long-term care. “Long-term care insurance” also includes a policy or rider that provides for payment of benefits based upon cognitive impairment or the loss of functional capacity. Long-term care insurance may be issued by insurers, fraternal benefit societies, nonprofit hospital, medical-surgical, and health service corporations, prepaid health plans, health maintenance organizations, or any similar organizations to the extent they are otherwise authorized to issue life or health insurance. “Long-term health-care insurance” shall not include any insurance policy that is offered primarily to provide basic medicare supplement coverage, basic hospital expense coverage, basic medical-surgical expense coverage, hospital confinement indemnity coverage, major medical expense coverage, disability income or related asset protection coverage, accident-only coverage, specified disease or specified accident coverage, or limited-benefit health coverage. Notwithstanding any other provisions contained herein, any product advertised, marketed, or offered as long-term care insurance shall be subject to the provisions of this article.(6)
“Policy” means any policy, contract, subscriber agreement, rider, or endorsement delivered or issued for delivery in this state by an insurer, fraternal benefit society, nonprofit hospital, medical-surgical, or health service corporation, prepaid health plan, health maintenance organization, or any similar organization.(7)
Repealed.(8)
Intentionally left blank —Ed.(a)
“Qualified long-term care insurance contract” or “federally tax-qualified long-term care insurance contract” means an individual or group insurance contract that meets the requirements of 26 U.S.C. sec. 7702B (b) of the federal “Internal Revenue Code of 1986”, as amended, as follows:(I)
The only insurance protection provided under the contract is coverage of qualified long-term care services. A contract shall not fail to satisfy the requirements of this subparagraph (I) by reason of payments being made on a per diem or other periodic basis without regard to the expenses incurred during the period to which the payments relate.(II)
The contract does not pay or reimburse expenses incurred for services or items to the extent that the expenses are reimbursable under Title XVIII of the federal “Social Security Act”, as added by the “Social Security Amendments of 1965”, Pub.L. 89-97, as amended, or would be so reimbursable but for the application of a deductible or coinsurance amount. The requirements of this subparagraph (II) do not apply to expenses that are reimbursable under said Title XVIII only as a secondary payer. A contract shall not fail to satisfy the requirements of this subparagraph (II) by reason of payments being made on a per diem or other periodic basis without regard to the expenses incurred during the period to which the payments relate.(III)
The contract is guaranteed renewable, within the meaning of 26 U.S.C. sec. 7702B (b)(1)(C) of the federal “Internal Revenue Code of 1986”, as amended;(IV)
The contract does not provide for a cash surrender value or other money that can be paid, assigned, pledged as collateral for a loan, or borrowed except as provided in subparagraph (V) of this paragraph (a);(V)
All refunds of premiums and all policyholder dividends or similar amounts under the contract are to be applied as a reduction in future premiums or to increase future benefits; except that a cash refund may be issued in the event of death of the insured or a complete surrender or cancellation of the contract, so long as the refund does not exceed the aggregate premiums paid under the contract;(VI)
The contract meets the consumer protection provisions set forth in 26 U.S.C. sec. 7702B (g) of the federal “Internal Revenue Code of 1986”, as amended.(b)
“Qualified long-term care insurance contract” or “federally tax-qualified long-term care insurance contract” also means the portion of a life insurance contract that provides long-term care insurance coverage by rider or as part of the contract and that satisfies the requirements of 26 U.S.C. sec. 7702B (b) and (e) of the federal “Internal Revenue Code of 1986”, as amended.
Source:
Section 10-19-103 — Definitions, https://leg.colorado.gov/sites/default/files/images/olls/crs2023-title-10.pdf (accessed Oct. 20, 2023).
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