Okla. Stat. tit. 36, § 36-4426.2: Nonforfeiture benefits

A. 1. No insurer may offer a long-term care insurance policy

unless the insurer also offers to the applicant the option to

purchase a policy that provides for nonforfeiture benefits.

2. This section shall not apply to life insurance policies or

riders containing accelerated long-term care benefits.

3. For certificates issued on or after the effective date of

this act, under a group long-term care insurance policy as defined

in Section 4424 of Title 36 of the Oklahoma Statutes, which policy

was in force at the time this act became effective, the provisions

of this section shall not apply.

B. The Insurance Commissioner shall promulgate rules which are

consistent with the National Association of Insurance Commissioners

(NAIC) Long-Term Care Model Regulation and which specify the types

of nonforfeiture benefits to be included in policies and

certificates, the standards for the benefits, and the date

nonforfeiture benefits must commence.

C. 1. For purposes of this section, the nonforfeiture benefit

shall be a shortened benefit period providing paid-up long-term care

insurance coverage after lapse. The same benefit amounts and

frequency in effect at the time of lapse, but not increased

thereafter, shall be payable for a qualifying claim, but the

lifetime maximum dollars or days of benefits shall be determined as

specified in paragraph 3 of this subsection.

2. Nonforfeiture benefits for qualified long-term care

insurance contracts shall include at least a reduced paid-up

insurance benefit, an extended term insurance benefit, the offer of

a shortened benefit period, or other similar offerings approved by

the Insurance Commissioner, and shall be provided as specified in

regulations. The issuer of such a contract may refund premiums upon

the death of the insured or upon complete surrender or cancellation

of the contract or policy, as long as the refund does not exceed the

aggregate premiums paid for the contract or policy.

3. The standard nonforfeiture credit shall be equal to one

hundred percent (100%) of the sum of all premiums paid, including

the premiums paid prior to any changes in benefits. The insurer may

offer additional shortened benefit period options, as long as the

benefits for each duration equal or exceed the standard

nonforfeiture credit for that duration. However for lapses

occurring at the end of the third policy year and thereafter, the

minimum nonforfeiture credit shall not be less than thirty (30)

times the daily nursing home benefit at the time of lapse. In

either event, the calculation of the nonforfeiture credit is subject

to the limitation set forth in subsection D of this section.

4. Nonforfeiture credits may be used for all care and services

qualifying for benefits under the terms of the policy or

certificate, up to the limits specified in the policy or

certificate.

5. There shall be no difference in the minimum nonforfeiture

benefits as required under this section for group and individual

policies.

D. All benefits paid by the insurer while the policy or

certificate is in premium paying status and in paid-up status shall

not exceed the maximum benefits which would have been payable if the

policy or certificate had remained in premium paying status.