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AN ACT concerning long-term care insurance; affecting the definition of
  preexisting condition; amending K.S.A. 40-2228 and repealing the ex-
  isting section.
Be it enacted by the Legislature of the State of Kansas:
  Section 1.  K.S.A. 40-2228 is hereby amended to read as follows: 40-
2228. (a) The commissioner may adopt reasonable rules and regulations:
  (1)  To establish specific standards for policy provisions of long-term
care insurance policies. Such standards shall be in addition to and in
accordance with applicable laws of this state, and shall address terms of
renewability, initial and subsequent conditions of eligibility, nonduplica-
tion of coverage provisions, coverage of dependents, preexisting condi-
tions, termination of insurance, probationary periods, limitations, excep-
tions, reductions, elimination periods, requirements for replacement,
recurrent conditions and definitions of terms; and
  (2)  to specify prohibited policy provisions not otherwise specifically
authorized by statute which, in the opinion of the commissioner, are un-
just, unfair or unfairly discriminatory to any person insured under a long-
term care insurance policy.
  (b)  Rules and regulations adopted by the commissioner shall:
  (1)  Recognize the unique, developing and experimental nature of
long-term care insurance; and
  (2)  recognize the appropriate distinctions necessary between group
and individual long-term care insurance policies.
  (c)  The commissioner may adopt rules and regulations establishing
loss-ratio standards for long-term care insurance policies if a specific ref-
erence to long-term care insurance policies is contained in the rules and
regulations.
  (d)  No long-term care insurance policy may:
  (1)  Be canceled, nonrenewed, or otherwise terminated solely on the
grounds of the age or the deterioration of the mental or physical health
of the insured individual or certificateholder; or
  (2)  contain a provision establishing any new waiting period in the
event existing coverage is converted to or replaced by a new or other form
within the same company, except with respect to an increase in benefits
voluntarily selected by the insured individual or group policyholder.
  (e) (1)  No long-term insurance policy or certificate shall use a defi-
nition of preexisting condition which is more restrictive than the follow-
ing:  ``Preexisting condition'' means the existence of symptoms which
would cause an ordinarily prudent person to seek diagnosis, care or treat-
ment, or a condition for which medical advice or treatment was recom-
mended by, or received from a provider of health care services, within:
a condition for which medical advice or treatment was recommended by,
or received from a provider of health care services, within six months
preceding the effective date of coverage of an insured person.
  (A)  Six months preceding the effective date of coverage of an insured
person who is 65 years of age or older on the effective date of coverage;
or
  (B)  twenty-four months preceding the effective date of coverage of
an insured person who is under age 65 on the effective date of coverage.
  (2)  No long-term care insurance policy shall exclude coverage for a
loss or confinement which is the result of a preexisting condition unless
such loss or confinement begins within: six months following the effective
date of coverage of an insured person.
  (A)  Six months following the effective date of coverage of an insured
person who is 65 years of age or older on the effective date of coverage;
or
  (B)  twenty-four months following the effective date of coverage of an
insured person who is under age 65 on the effective date of coverage.
  (3)  The commissioner may extend the limitation periods set forth in
subsections (e)(1) and (e)(2) above as to specific age group categories or
specific policy forms upon finding that the extension is not contrary to
the best interest of the public.
  (4)  The definition of preexisting condition shall not prohibit an in-
surer from using an application form designed to elicit the complete
health history of an applicant, and, on the basis of the answers on that
application, from underwriting in accordance with that insurer's estab-
lished underwriting standards.
  (f)  No long-term care insurance policy shall require prior institution-
alization as a condition precedent to the payment of benefits.
  (g)  In order to provide for fair disclosure in the sale of long-term care
insurance policies:
  (1)  An outline of coverage shall be delivered to an applicant for a
long-term care insurance policy at the time of application. In the case of
direct response solicitations, the insurer shall deliver the outline of cov-
erage upon the applicant's request, but regardless of request, shall make
such delivery no later than at the time of policy delivery. Such outline of
coverage shall include:
  (A)  A description of the principal benefits and coverage provided in
the policy;
  (B)  a statement of the principal exclusions, reductions and limitations
contained in the policy;
  (C)  a statement of the renewal provisions, including any reservation
in the policy of a right to change premiums; and
  (D)  a statement that the outline of coverage is a summary of the
policy issued or applied for, and that the policy should be consulted to
determine governing contractual provisions.
  (2)  A certificate issued pursuant to a group long-term care insurance
policy which policy is delivered or issued for delivery in this state shall
include the information required by subsection (B)(4) of K.S.A. 40-2209,
and amendments thereto.
  (h)  No policy shall be advertised, marketed or offered as long-term
care insurance unless it complies with the provisions of this act.
  Sec. 2.  K.S.A. 40-2228 is hereby repealed.
  Sec. 3.  This act shall take effect and be in force from and after its
publication in the statute book.