HRS §431:10H-208
Protection against accidental policy lapse
Long-term care insurers must follow rules to protect you from losing coverage by mistake. When you apply, you can name someone to get a warning if your policy is about to end for nonpayment. You can also choose not to name anyone, but you must sign a form saying you understand.
The statute, as written — Unintentional lapse
(a) Each insurer offering long-term care insurance, as a protection against unintentional lapse, shall comply with this section. (b) No individual long-term care policy or certificate shall be issued until the insurer has received from the applicant a written designation of at least one person, in addition to the applicant, who is to receive notice of lapse or termination of the policy or certificate for nonpayment of premium, or a written waiver dated and signed by the applicant electing not to designate additional persons to receive notice. The applicant has the right to designate at least one person who is to receive the notice of termination, in addition to the insured. Designation shall not constitute acceptance of any liability on the third party for services provided to the insured. The form used for the written designation shall provide space clearly designated for listing at least one person. The designation shall include each person's full name and home address. (c) In the case of an applicant who elects not to designate an additional person, the waiver shall state: "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 thirty (30) days after a premium is due and unpaid. I elect NOT to designate a person to receive this notice." (d) The insurer shall notify the insured of the right to change this written designation, no less often than every two years. (e) When the policyholder or certificate holder pays premium for a long-term care insurance policy or certificate through a payroll or pension deduction plan, the notice requirement contained in subsection (c) need not be met until sixty days after the policyholder or certificate holder is no longer on a payment plan. The application or enrollment form for these policies or certificates shall clearly indicate the payment plan selected by the applicant.
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