Taking Care of Mom and Dad: Prohibited Provisions

Many states have passed LTC regulations based on NAIC (National Association of Insurance Commissioners) model laws. These model laws prohibit certain provisions from being included in long-term care insurance policies.

LTC policies may not be canceled, nonrenewed or otherwise terminated on grounds of age or deterioration of mental or physical health. Benefits policies may not provide coverage for skilled nursing care only, or provide more coverage for skilled care in a facility than for lower levels of care.

No LTC insurance benefits may be reduced because of out-ofpocket expenditures made by your parents or by someone else on their behalf. Although the provisions differ slightly from state to state, the most common consumer protections are summarized below.