1.1 	A bill for an act
1.2 	relating to insurance; conforming regulation of qualified long-term care insurance 
1.3 	to requirements for state participation in the federal long-term care partnership 
1.4 	program; amending state long-term care partnership program requirements;
1.5 	amending Minnesota Statutes 2004, sections 62S.05, by adding a subdivision; 
1.6 	62S.08, subdivision 3; 62S.081, subdivision 4; 62S.10, subdivision 2; 62S.13, 
1.7 	by adding a subdivision; 62S.14, subdivision 2; 62S.15; 62S.20, subdivision 1; 
1.8 	62S.24, subdivisions 1, 3, 4, by adding subdivisions; 62S.25, subdivision 6, 
1.9 	by adding a subdivision; 62S.26; 62S.266, subdivision 2; 62S.29, subdivision 
1.10 	1; 62S.30; Minnesota Statutes 2005 Supplement, section 256B.0571; proposing 
1.11 	coding for new law in Minnesota Statutes, chapter 62S.
1.12 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.13 	ARTICLE 1
1.14 	QUALIFIED LONG-TERM CARE INSURANCE REGULATORY CHANGES

1.15 	Section 1. Minnesota Statutes 2004, section 62S.05, is amended by adding a 
1.16 	subdivision to read:
1.17 		Subd. 4.Extension of limitation periods. The commissioner may extend the 
1.18 	limitation periods set forth in subdivisions 1 and 2 as to specific age group categories in 
1.19 	specific policy forms upon finding that the extension is in the best interest of the public. 

1.20 	Sec. 2. Minnesota Statutes 2004, section 62S.08, subdivision 3, is amended to read:
1.21 		Subd. 3.Mandatory format. The following standard format outline of coverage 
1.22 	must be used, unless otherwise specifically indicated:
1.23 	COMPANY NAME
1.24 	ADDRESS - CITY AND STATE
1.25 	TELEPHONE NUMBER
1.26 	LONG-TERM CARE INSURANCE
1.27 	OUTLINE OF COVERAGE
2.1 	Policy Number or Group Master Policy and Certificate Number
2.2 	(Except for policies or certificates which are guaranteed issue, the following caution 
2.3 	statement, or language substantially similar, must appear as follows in the outline of 
2.4 	coverage.)
2.5 	CAUTION: The issuance of this long-term care insurance (policy) (certificate) 
2.6 	is based upon your responses to the questions on your application. A copy of your 
2.7 	(application) (enrollment form) (is enclosed) (was retained by you when you applied). 
2.8 	If your answers are incorrect or untrue, the company has the right to deny benefits or 
2.9 	rescind your policy. The best time to clear up any questions is now, before a claim 
2.10 	arises. If, for any reason, any of your answers are incorrect, contact the company at this 
2.11 	address: (insert address).
2.12 	(1) This policy is (an individual policy of insurance) (a group policy) which was 
2.13 	issued in the (indicate jurisdiction in which group policy was issued).
2.14 	(2) PURPOSE OF OUTLINE OF COVERAGE. This outline of coverage provides 
2.15 	a very brief description of the important features of the policy. You should compare 
2.16 	this outline of coverage to outlines of coverage for other policies available to you. This 
2.17 	is not an insurance contract, but only a summary of coverage. Only the individual or 
2.18 	group policy contains governing contractual provisions. This means that the policy or 
2.19 	group policy sets forth in detail the rights and obligations of both you and the insurance 
2.20 	company. Therefore, if you purchase this coverage, or any other coverage, it is important 
2.21 	that you READ YOUR POLICY (OR CERTIFICATE) CAREFULLY.
2.22 	(3) THIS PLAN IS INTENDED TO BE A QUALIFIED LONG-TERM CARE 
2.23 	INSURANCE CONTRACT AS DEFINED UNDER SECTION 7702(B)(b) OF THE 
2.24 	INTERNAL REVENUE CODE OF 1986.
2.25 	(4) TERMS UNDER WHICH THE POLICY OR CERTIFICATE MAY BE 
2.26 	CONTINUED IN FORCE OR DISCONTINUED.
2.27 	(a) (For long-term care health insurance policies or certificates describe one of the 
2.28 	following permissible policy renewability provisions:
2.29 	(1) Policies and certificates that are guaranteed renewable shall contain the following 
2.30 	statement:) RENEWABILITY: THIS POLICY (CERTIFICATE) IS GUARANTEED 
2.31 	RENEWABLE. This means you have the right, subject to the terms of your policy, 
2.32 	(certificate) to continue this policy as long as you pay your premiums on time. (company 
2.33 	name) cannot change any of the terms of your policy on its own, except that, in the future, 
2.34 	IT MAY INCREASE THE PREMIUM YOU PAY.
2.35 	(2) (Policies and certificates that are noncancelable shall contain the following 
2.36 	statement:) RENEWABILITY: THIS POLICY (CERTIFICATE) IS NONCANCELABLE. 
3.1 	This means that you have the right, subject to the terms of your policy, to continue this 
3.2 	policy as long as you pay your premiums on time. (company name) cannot change any 
3.3 	of the terms of your policy on its own and cannot change the premium you currently 
3.4 	pay. However, if your policy contains an inflation protection feature where you choose 
3.5 	to increase your benefits, (company name) may increase your premium at that time for 
3.6 	those additional benefits.
3.7 	(b) (For group coverage, specifically describe continuation/conversion provisions 
3.8 	applicable to the certificate and group policy.)
3.9 	(c) (Describe waiver of premium provisions or state that there are not such 
3.10 	provisions.)
3.11 	(5) TERMS UNDER WHICH THE COMPANY MAY CHANGE PREMIUMS. 
3.12 	(In bold type larger than the maximum type required to be used for the other 
3.13 	provisions of the outline of coverage, state whether or not the company has a right to 
3.14 	change the premium and, if a right exists, describe clearly and concisely each circumstance 
3.15 	under which the premium may change.)
3.16 	(6) TERMS UNDER WHICH THE POLICY OR CERTIFICATE MAY BE 
3.17 	RETURNED AND PREMIUM REFUNDED.
3.18 	(a) (Provide a brief description of the right to return -- "free look" provision of 
3.19 	the policy.)
3.20 	(b) (Include a statement that the policy either does or does not contain provisions 
3.21 	providing for a refund or partial refund of premium upon the death of an insured or 
3.22 	surrender of the policy or certificate. If the policy contains such provisions, include a 
3.23 	description of them.)
3.24 	~~(5)~~(7) THIS IS NOT MEDICARE SUPPLEMENT COVERAGE. If you are 
3.25 	eligible for Medicare, review the Medicare Supplement Buyer's Guide available from 
3.26 	the insurance company.
3.27 	(a) (For agents) neither (insert company name) nor its agents represent Medicare, the 
3.28 	federal government, or any state government.
3.29 	(b) (For direct response) (insert company name) is not representing Medicare, the 
3.30 	federal government, or any state government.
3.31 	~~(6)~~(8) LONG-TERM CARE COVERAGE. Policies of this category are designed to 
3.32 	provide coverage for one or more necessary or medically necessary diagnostic, preventive, 
3.33 	therapeutic, rehabilitative, maintenance, or personal care services, provided in a setting 
3.34 	other than an acute care unit of a hospital, such as in a nursing home, in the community, 
3.35 	or in the home.
4.1 	This policy provides coverage in the form of a fixed dollar indemnity benefit for 
4.2 	covered long-term care expenses, subject to policy (limitations), (waiting periods), and 
4.3 	(coinsurance) requirements. (Modify this paragraph if the policy is not an indemnity 
4.4 	policy.)
4.5 	~~(7)~~(9) BENEFITS PROVIDED BY THIS POLICY.
4.6 	(a) (Covered services, related deductible(s), waiting periods, elimination periods, 
4.7 	and benefit maximums.)
4.8 	(b) (Institutional benefits, by skill level.)
4.9 	(c) (Noninstitutional benefits, by skill level.)
4.10 	(d) (Eligibility for payment of benefits.)
4.11 	(Activities of daily living and cognitive impairment shall be used to measure an 
4.12 	insured's need for long-term care and must be defined and described as part of the outline 
4.13 	of coverage.)
4.14 	(Any benefit screens must be explained in this section. If these screens differ for 
4.15 	different benefits, explanation of the screen should accompany each benefit description. If 
4.16 	an attending physician or other specified person must certify a certain level of functional 
4.17 	dependency in order to be eligible for benefits, this too must be specified. If activities of 
4.18 	daily living (ADLs) are used to measure an insured's need for long-term care, then these 
4.19 	qualifying criteria or screens must be explained.)
4.20 	~~(8)~~(10) LIMITATIONS AND EXCLUSIONS:
4.21 	Describe:
4.22 	(a) preexisting conditions;
4.23 	(b) noneligible facilities/provider;
4.24 	(c) noneligible levels of care (e.g., unlicensed providers, care or treatment provided 
4.25 	by a family member, etc.);
4.26 	(d) exclusions/exceptions; and
4.27 	(e) limitations.
4.28 	(This section should provide a brief specific description of any policy provisions 
4.29 	which limit, exclude, restrict, reduce, delay, or in any other manner operate to qualify 
4.30 	payment of the benefits described in paragraph ~~(6)~~ (8).)
4.31 	THIS POLICY MAY NOT COVER ALL THE EXPENSES ASSOCIATED WITH 
4.32 	YOUR LONG-TERM CARE NEEDS.
4.33 	~~(9)~~(11) RELATIONSHIP OF COST OF CARE AND BENEFITS. Because the costs 
4.34 	of long-term care services will likely increase over time, you should consider whether and 
4.35 	how the benefits of this plan may be adjusted. As applicable, indicate the following:
4.36 	(a) that the benefit level will not increase over time;
5.1 	(b) any automatic benefit adjustment provisions;
5.2 	(c) whether the insured will be guaranteed the option to buy additional benefits and 
5.3 	the basis upon which benefits will be increased over time if not by a specified amount 
5.4 	or percentage;
5.5 	(d) if there is such a guarantee, include whether additional underwriting or health 
5.6 	screening will be required, the frequency and amounts of the upgrade options, and any 
5.7 	significant restrictions or limitations; and
5.8 	(e) whether there will be any additional premium charge imposed and how that 
5.9 	is to be calculated.
5.10 	~~(10)~~(12) ALZHEIMER'S DISEASE AND OTHER ORGANIC BRAIN 
5.11 	DISORDERS. (State that the policy provides coverage for insureds clinically diagnosed as 
5.12 	having Alzheimer's disease or related degenerative and dementing illnesses. Specifically, 
5.13 	describe each benefit screen or other policy provision which provides preconditions to the 
5.14 	availability of policy benefits for such an insured.)
5.15 	~~(11)~~(13) PREMIUM.
5.16 	(a) State the total annual premium for the policy.
5.17 	(b) If the premium varies with an applicant's choice among benefit options, indicate 
5.18 	the portion of annual premium which corresponds to each benefit option.
5.19 	~~(12)~~(14) ADDITIONAL FEATURES.
5.20 	(a) Indicate if medical underwriting is used.
5.21 	(b) Describe other important features.
5.22 	(15) CONTACT THE STATE DEPARTMENT OF COMMERCE OR SENIOR 
5.23 	LINKAGE LINE IF YOU HAVE GENERAL QUESTIONS REGARDING LONG-TERM 
5.24 	CARE INSURANCE. CONTACT THE INSURANCE COMPANY IF YOU HAVE 
5.25 	SPECIFIC QUESTIONS REGARDING YOUR LONG-TERM CARE INSURANCE 
5.26 	POLICY OR CERTIFICATE.

5.27 	Sec. 3. Minnesota Statutes 2004, section 62S.081, subdivision 4, is amended to read:
5.28 		Subd. 4.Forms. An insurer shall use the forms in Appendices B (Personal 
5.29 	Worksheet) and F (Potential Rate Increase Disclosure Form) of the Long-term Care 
5.30 	Insurance Model Regulation adopted by the National Association of Insurance 
5.31 	Commissioners to comply with the requirements of subdivisions 1 and 2.

5.32 	Sec. 4. Minnesota Statutes 2004, section 62S.10, subdivision 2, is amended to read:
5.33 		Subd. 2.Contents. The summary must include the following information:
6.1 	(1) an explanation of how the long-term care benefit interacts with other components 
6.2 	of the policy, including deductions from death benefits;
6.3 	(2) an illustration of the amount of benefits, the length of benefits, and the guaranteed 
6.4 	lifetime benefits, if any, for each covered person; ~~and~~
6.5 	(3) any exclusions, reductions, and limitations on benefits of long-term care; and
6.6 	(4) a statement that any long-term care inflation protection option required by section 
6.7 	62S.23 is not available under this policy. 

6.8 	Sec. 5. Minnesota Statutes 2004, section 62S.13, is amended by adding a subdivision 
6.9 	to read:
6.10 		Subd. 6.Death of insured. In the event of the death of the insured, this section shall 
6.11 	not apply to the remaining death benefit of a life insurance policy that accelerates benefits 
6.12 	for long-term care. In this situation, the remaining death benefits under these policies shall 
6.13 	be governed by section 61A.03, subdivision 1, paragraph (c). In all other situations, this 
6.14 	section shall apply to life insurance policies that accelerate benefits for long-term care. 

6.15 	Sec. 6. Minnesota Statutes 2004, section 62S.14, subdivision 2, is amended to read:
6.16 		Subd. 2.Terms. The terms "guaranteed renewable" and "noncancelable" may not 
6.17 	be used in an individual long-term care insurance policy without further explanatory 
6.18 	language that complies with the disclosure requirements of section  62S.20. The term 
6.19 	"level premium" may only be used when the insurer does not have the right to change 
6.20 	the premium. 

6.21 	Sec. 7. Minnesota Statutes 2004, section 62S.15, is amended to read:
6.22 	62S.15 AUTHORIZED LIMITATIONS AND EXCLUSIONS.
6.23 	No policy may be delivered or issued for delivery in this state as long-term care 
6.24 	insurance if the policy limits or excludes coverage by type of illness, treatment, medical 
6.25 	condition, or accident, except as follows:
6.26 	(1) preexisting conditions or diseases;
6.27 	(2) mental or nervous disorders; except that the exclusion or limitation of benefits on 
6.28 	the basis of Alzheimer's disease is prohibited;
6.29 	(3) alcoholism and drug addiction;
6.30 	(4) illness, treatment, or medical condition arising out of war or act of war; 
6.31 	participation in a felony, riot, or insurrection; service in the armed forces or auxiliary 
6.32 	units; suicide, attempted suicide, or intentionally self-inflicted injury; or non-fare-paying 
6.33 	aviation; ~~and~~
7.1 	(5) treatment provided in a government facility unless otherwise required by 
7.2 	law, services for which benefits are available under Medicare or other government 
7.3 	program except Medicaid, state or federal workers' compensation, employer's liability 
7.4 	or occupational disease law, motor vehicle no-fault law; services provided by a member 
7.5 	of the covered person's immediate family; and services for which no charge is normally 
7.6 	made in the absence of insurance; and 
7.7 	(6) expenses for services or items available or paid under another long-term care 
7.8 	insurance or health insurance policy.
7.9 	This subdivision does not prohibit exclusions and limitations by type of provider or 
7.10 	territorial limitations.

7.11 	Sec. 8. Minnesota Statutes 2004, section 62S.20, subdivision 1, is amended to read:
7.12 		Subdivision 1.Renewability. (a) Individual long-term care insurance policies 
7.13 	must contain a renewability provision that is appropriately captioned, appears on the first 
7.14 	page of the policy, and clearly states ~~the duration, where limited, of renewability and the~~ 
7.15 	~~duration of the term of coverage for which the policy is issued and for which it may be~~ 
7.16 	~~renewed~~ that the coverage is guaranteed renewable or noncancelable. This subdivision 
7.17 	does not apply to policies which are part of or combined with life insurance policies 
7.18 	which do not contain a renewability provision and under which the right to nonrenew is 
7.19 	reserved solely to the policyholder.
7.20 	(b) A long-term care insurance policy or certificate, other than one where the insurer 
7.21 	does not have the right to change the premium, shall include a statement that premium 
7.22 	rates may change. 

7.23 	Sec. 9. Minnesota Statutes 2004, section 62S.24, subdivision 1, is amended to read:
7.24 		Subdivision 1.Required questions. An application form must include the following 
7.25 	questions designed to elicit information as to whether, as of the date of the application, the 
7.26 	applicant has another long-term care insurance policy or certificate in force or whether a 
7.27 	long-term care policy or certificate is intended to replace any other accident and sickness 
7.28 	or long-term care policy or certificate presently in force. A supplementary application 
7.29 	or other form to be signed by the applicant and agent, except where the coverage is sold 
7.30 	without an agent, containing the following questions may be used. If a replacement policy 
7.31 	is issued to a group as defined under section   62S.01, subdivision 15, clause (1), the 
7.32 	following questions may be modified only to the extent necessary to elicit information 
7.33 	about long-term care insurance policies other than the group policy being replaced; 
7.34 	provided, however, that the certificate holder has been notified of the replacement: 
8.1 	(1)  do you have another long-term care insurance policy or certificate in force
8.2 	(including health care service contract or health maintenance organization contract)?;
8.3 	(2) did you have another long-term care insurance policy or certificate in force 
8.4 	during the last 12 months?;
8.5 	(i) if so, with which company?; and
8.6 	(ii) if that policy lapsed, when did it lapse?; ~~and~~
8.7 	(3) are you covered by Medicaid?; and 
8.8 	(4) do you intend to replace any of your medical or health insurance coverage with 
8.9 	this policy (certificate)?

8.10 	Sec. 10. Minnesota Statutes 2004, section 62S.24, is amended by adding a subdivision 
8.11 	to read:
8.12 		Subd. 1a.Other health insurance policies sold by agent. Agents shall list all other 
8.13 	health insurance policies they have sold to the applicant that are still in force or were sold 
8.14 	in the past five years and are no longer in force. 

8.15 	Sec. 11. Minnesota Statutes 2004, section 62S.24, subdivision 3, is amended to read:
8.16 		Subd. 3.Solicitations other than direct response. After determining that a 
8.17 	sale will involve replacement, an insurer, other than an insurer using direct response 
8.18 	solicitation methods or its agent, shall furnish the applicant, before issuance or delivery of 
8.19 	the individual long-term care insurance policy, a notice regarding replacement of accident 
8.20 	and sickness or long-term care coverage. One copy of the notice must be retained by the 
8.21 	applicant and an additional copy signed by the applicant must be retained by the insurer. 
8.22 	The required notice must be provided in the following manner:
8.23 	NOTICE TO APPLICANT REGARDING REPLACEMENT OF
8.24 	INDIVIDUAL ACCIDENT AND SICKNESS OR LONG-TERM 
8.25 	CARE INSURANCE
8.26 	(Insurance company's name and address)
8.27 	SAVE THIS NOTICE! IT MAY BE IMPORTANT TO YOU IN THE FUTURE.
8.28 	According to (your application) (information you have furnished), you intend to 
8.29 	lapse or otherwise terminate existing accident and sickness or long-term care insurance 
8.30 	and replace it with an individual long-term care insurance policy to be issued by (company 
8.31 	name) insurance company. Your new policy provides 30 days within which you may 
8.32 	decide, without cost, whether you desire to keep the policy. For your own information and 
8.33 	protection, you should be aware of and seriously consider certain factors which may affect 
8.34 	the insurance protection available to you under the new policy.
9.1 	You should review this new coverage carefully, comparing it with all accident 
9.2 	and sickness or long-term care insurance coverage you now have, and terminate your 
9.3 	present policy only if, after due consideration, you find that purchase of this long-term 
9.4 	care coverage is a wise decision.
9.5 	STATEMENT TO APPLICANT BY AGENT
9.6 	(BROKER OR OTHER REPRESENTATIVE):
9.7 	(Use additional sheets, as necessary.)
9.8 	I have reviewed your current medical health insurance coverage. I believe the 
9.9 	replacement of insurance involved in this transaction materially improves your position. 
9.10 	My conclusion has taken into account the following considerations, which I call to your 
9.11 	attention:
9.12 	(a) Health conditions which you presently have (preexisting conditions) may not 
9.13 	be immediately or fully covered under the new policy. This could result in denial or 
9.14 	delay in payment of benefits under the new policy, whereas a similar claim might have 
9.15 	been payable under your present policy.
9.16 	(b) State law provides that your replacement policy or certificate may not contain 
9.17 	new preexisting conditions or probationary periods. The insurer will waive any time 
9.18 	periods applicable to preexisting conditions or probationary periods in the new policy (or 
9.19 	coverage) for similar benefits to the extent such time was spent (depleted) under the 
9.20 	original policy.
9.21 	(c)  If you are replacing existing long-term care insurance coverage, you may wish to 
9.22 	secure the advice of your present insurer or its agent regarding the proposed replacement of 
9.23 	your present policy. This is not only your right, but it is also in your best interest to make 
9.24 	sure you understand all the relevant factors involved in replacing your present coverage.
9.25 	(d)  If, after due consideration, you still wish to terminate your present policy and 
9.26 	replace it with new coverage, be certain to truthfully and completely answer all questions 
9.27 	on the application concerning your medical health history. Failure to include all material 
9.28 	medical information on an application may provide a basis for the company to deny any 
9.29 	future claims and to refund your premium as though your policy had never been in force. 
9.30 	After the application has been completed and before you sign it, reread it carefully to be 
9.31 	certain that all information has been properly recorded.
9.32 	........
9.33 	(Signature of Agent, Broker, or Other Representative)
9.34 	(Typed Name and Address of Agency or Broker)
9.35 	The  above "Notice to Applicant" was delivered to me on:

9.36 | | ........
9.37 | | (Date)
10.1 | | ........
10.2 | | (Applicant's Signature)

10.3 	Sec. 12. Minnesota Statutes 2004, section 62S.24, subdivision 4, is amended to read:
10.4 		Subd. 4.Direct response solicitations. Insurers using direct response solicitation 
10.5 	methods shall deliver a notice regarding replacement of long-term care coverage to 
10.6 	the applicant upon issuance of the policy. The required notice must be provided in the 
10.7 	following manner:
10.8 	NOTICE TO APPLICANT REGARDING REPLACEMENT OF
10.9 	ACCIDENT AND SICKNESS OR 
10.10 	LONG-TERM CARE INSURANCE
10.11 	(Insurance  company's name and address)
10.12 	SAVE THIS NOTICE! IT MAY BE
10.13 	IMPORTANT TO YOU IN THE FUTURE.
10.14 	According to (your application) (information you have furnished), you intend to 
10.15 	lapse or otherwise terminate existing accident and sickness or long-term care insurance 
10.16 	and replace it with the long-term care insurance policy delivered herewith issued by 
10.17 	(company name) insurance company.
10.18 	Your new policy provides 30 days within which you may decide, without cost, 
10.19 	whether you desire to keep the policy. For your own information and protection, you 
10.20 	should be aware of and seriously consider certain factors which may affect the insurance 
10.21 	protection available to you under the new policy.
10.22 	You should review this new coverage carefully, comparing it with all long-term care 
10.23 	insurance coverage you now have, and terminate your present policy only if, after due 
10.24 	consideration, you find that purchase of this long-term care coverage is a wise decision.
10.25 	(a) Health conditions which you presently have (preexisting conditions) may not 
10.26 	be immediately or fully covered under the new policy. This could result in denial or 
10.27 	delay in payment of benefits under the new policy, whereas a similar claim might have 
10.28 	been payable under your present policy.
10.29 	(b) State law provides that your replacement policy or certificate may not contain 
10.30 	new preexisting conditions or probationary periods. Your insurer will waive any time 
10.31 	periods applicable to preexisting conditions or probationary periods in the new policy (or 
10.32 	coverage) for similar benefits to the extent such time was spent (depleted) under the 
10.33 	original policy.
10.34 	(c) If you are replacing existing long-term care insurance coverage, you may wish to 
10.35 	secure the advice of your present insurer or its agent regarding the proposed replacement of 
11.1 	your present policy. This is not only your right, but it is also in your best interest to make 
11.2 	sure you understand all the relevant factors involved in replacing your present coverage.
11.3 	(d) (To be included only if the application is attached to the policy.)
11.4 	If,  after due consideration, you still wish to terminate your present policy and replace 
11.5 	it with new coverage, read the copy of the application attached to your new policy and be 
11.6 	sure that all questions are answered fully and correctly. Omissions or misstatements in 
11.7 	the application could cause an otherwise valid claim to be denied. Carefully check the 
11.8 	application and write to (company name and address) within 30 days if any information is 
11.9 	not correct and complete, or if any past medical history has been left out of the application.

11.10 | | ........
11.11 | | (Company Name)

11.12 	Sec. 13. Minnesota Statutes 2004, section 62S.24, is amended by adding a subdivision 
11.13 	to read:
11.14 		Subd. 7.Life insurance policies. Life insurance policies that accelerate benefits for 
11.15 	long-term care shall comply with this section if the policy being replaced is a long-term 
11.16 	care insurance policy. If the policy being replaced is a life insurance policy, the insurer 
11.17 	shall comply with the replacement requirements of sections 61A.53 to 61A.60. If a 
11.18 	life insurance policy that accelerates benefits for long-term care is replaced by another 
11.19 	such policy, the replacing insurer shall comply with both the long-term care and the life 
11.20 	insurance replacement requirements. 

11.21 	Sec. 14. Minnesota Statutes 2004, section 62S.25, subdivision 6, is amended to read:
11.22 		Subd. 6.Claims denied. Each insurer shall report annually by June 30 the number 
11.23 	of claims denied for any reason during the reporting period for each class of business, 
11.24 	expressed as a percentage of claims denied, other than claims denied for failure to meet 
11.25 	the waiting period or because of any applicable preexisting condition. For purposes of 
11.26 	this subdivision, "claim" means a request for payment of benefits under an in-force policy 
11.27 	regardless of whether the benefit claimed is covered under the policy or any terms or 
11.28 	conditions of the policy have been met. 

11.29 	Sec. 15. Minnesota Statutes 2004, section 62S.25, is amended by adding a subdivision 
11.30 	to read:
11.31 		Subd. 7.Reports.  Reports under this section shall be done on a statewide basis and 
11.32 	filed with the commissioner. They shall include, at a minimum, the information in the 
11.33 	format contained in Appendix E (Claim Denial Reporting Form) and in Appendix G 
12.1 	(Replacement and Lapse Reporting Form) of the Long-Term Care Model Regulation 
12.2 	adopted by the National Association of Insurance Commissioners. 

12.3 	Sec. 16. Minnesota Statutes 2004, section 62S.26, is amended to read:
12.4 	62S.26 LOSS RATIO.
12.5 		Subdivision 1.Minimum loss ratio. ~~(a)~~ The minimum loss ratio must be at least 60 
12.6 	percent, calculated in a manner which provides for adequate reserving of the long-term 
12.7 	care insurance risk. In evaluating the expected loss ratio, the commissioner shall give 
12.8 	consideration to all relevant factors, including:
12.9 	(1) statistical credibility of incurred claims experience and earned premiums;
12.10 	(2) the period for which rates are computed to provide coverage;
12.11 	(3) experienced and projected trends;
12.12 	(4) concentration of experience within early policy duration;
12.13 	(5) expected claim fluctuation;
12.14 	(6) experience refunds, adjustments, or dividends;
12.15 	(7) renewability features;
12.16 	(8) all appropriate expense factors;
12.17 	(9) interest;
12.18 	(10) experimental nature of the coverage;
12.19 	(11) policy reserves;
12.20 	(12) mix of business by risk classification; and
12.21 	(13) product features such as long elimination periods, high deductibles, and high 
12.22 	maximum limits.
12.23 		Subd. 2.Life insurance policies. Subdivision 1 shall not apply to life insurance 
12.24 	policies that accelerate benefits for long-term care. A life insurance policy that funds 
12.25 	long-term care benefits entirely by accelerating the death benefit is considered to provide 
12.26 	reasonable benefits in relation to premiums paid, if the policy complies with all of the 
12.27 	following provisions:
12.28 	(1) the interest credited internally to determine cash value accumulations, including 
12.29 	long-term care, if any, are guaranteed not to be less than the minimum guaranteed interest 
12.30 	rate for cash value accumulations without long-term care set forth in the policy;
12.31 	(2) the portion of the policy that provides life insurance benefits meets the 
12.32 	nonforfeiture requirements of section 61A.24;
12.33 	(3) the policy meets the disclosure requirements of sections 62S.09, 62S.10, and 
12.34 	62S.11; and 
12.35 	(4) an actuarial memorandum is filed with the insurance department that includes:
13.1 	(i) a description of the basis on which the long-term care rates were determined;
13.2 	(ii) a description of the basis for the reserves;
13.3 	(iii) a summary of the type of policy, benefits, renewability, general marketing 
13.4 	method, and limits on ages of issuance;
13.5 	(iv) a description and a table of each actuarial assumption used. For expenses, 
13.6 	an insurer must include percentage of premium dollars per policy and dollars per unit 
13.7 	of benefits, if any;
13.8 	(v) a description and a table of the anticipated policy reserves and additional reserves 
13.9 	to be held in each future year for active lives;
13.10 	(vi) the estimated average annual premium per policy and the average issue age;
13.11 	(vii) a statement as to whether underwriting is performed at the time of application. 
13.12 	The statement shall indicate whether underwriting is used and, if used, the statement 
13.13 	shall include a description of the type or types of underwriting used, such as medical 
13.14 	underwriting or functional assessment underwriting. Concerning a group policy, the 
13.15 	statement shall indicate whether the enrollee or any dependent will be underwritten and 
13.16 	when underwriting occurs; and
13.17 	(viii) a description of the effect of the long-term care policy provision on the required 
13.18 	premiums, nonforfeiture values, and reserves on the underlying life insurance policy, both 
13.19 	for active lives and those in long-term care claim status. 
13.20 		Subd. 3.Nonapplication.  ~~(b)~~ This section does not apply to policies or certificates 
13.21 	that are subject to sections  62S.021,  62S.081, and  62S.265, and that comply with those 
13.22 	sections. 

13.23 	Sec. 17. Minnesota Statutes 2004, section 62S.266, subdivision 2, is amended to read:
13.24 		Subd. 2.Requirement. (a) An insurer must offer each prospective policyholder a 
13.25 	nonforfeiture benefit in compliance with the following requirements:
13.26 	(1) a policy or certificate offered with nonforfeiture benefits must have coverage 
13.27 	elements, eligibility, benefit triggers, and benefit length that are the same as coverage to be 
13.28 	issued without nonforfeiture benefits. The nonforfeiture benefit included in the offer must 
13.29 	be the benefit described in subdivision 5; and
13.30 	(2)  the offer must be in writing if the nonforfeiture benefit is not otherwise described 
13.31 	in the outline of coverage or other materials given to the prospective policyholder.
13.32 	(b) When a group long-term care insurance policy is issued, the offer required in 
13.33 	paragraph (a) shall be made to the group policy holder. However, if the policy is issued as 
13.34 	group long-term care insurance as defined in section 62S.01, subdivision 15, clause (4), 
14.1 	other than to a continuing care retirement community or other similar entity, the offering 
14.2 	shall be made to each proposed certificate holder. 

14.3 	Sec. 18. Minnesota Statutes 2004, section 62S.29, subdivision 1, is amended to read:
14.4 		Subdivision 1.Requirements. An insurer or other entity marketing long-term care 
14.5 	insurance coverage in this state, directly or through its producers, shall:
14.6 	(1) establish marketing procedures and agent training requirements to assure that ~~a~~ 
14.7 	any marketing activities, including any comparison of policies by its agents or other 
14.8 	producers, are fair and accurate;
14.9 	(2) establish marketing procedures to assure excessive insurance is not sold or issued;
14.10 	(3) display prominently by type, stamp, or other appropriate means, on the first page 
14.11 	of the outline of coverage and policy, the following:
14.12 	"Notice to buyer: This policy may not cover all of the costs associated with 
14.13 	long-term care incurred by the buyer during the period of coverage. The buyer is advised 
14.14 	to review carefully all policy limitations.";
14.15 	(4) provide copies of the disclosure forms required in section 62S.081, subdivision 
14.16 	4, to the applicant; 
14.17 	(5) inquire and otherwise make every reasonable effort to identify whether a 
14.18 	prospective applicant or enrollee for long-term care insurance already has long-term care 
14.19 	insurance and the types and amounts of the insurance;
14.20 	~~(5)~~(6) establish auditable procedures for verifying compliance with this subdivision; 
14.21 	~~and~~
14.22 	~~(6)~~(7) if applicable, provide written notice to the prospective policyholder and 
14.23 	certificate holder, at solicitation, that a senior insurance counseling program approved 
14.24 	by the commissioner is available and the name, address, and telephone number of the 
14.25 	program;
14.26 	(8) use the terms "noncancelable" or "level premium" only when the policy or 
14.27 	certificate conforms to section 62S.14; and 
14.28 	(9) provide an explanation of contingent benefit upon lapse provided for in section 
14.29 	62S.266.

14.30 	Sec. 19. Minnesota Statutes 2004, section 62S.30, is amended to read:
14.31 	62S.30 ~~APPROPRIATENESS OF RECOMMENDED PURCHASE~~
14.32 	SUITABILITY.
14.33 	~~In recommending the purchase or replacement of a long-term care insurance policy~~ 
14.34 	~~or certificate, an agent shall comply with section  60K.46, subdivision 4.~~ 
15.1 		Subdivision 1. Standards. Every insurer or other entity marketing long-term care 
15.2 	insurance shall:
15.3 	(1) develop and use suitability standards to determine whether the purchase or 
15.4 	replacement of long-term care insurance is appropriate for the needs of the applicant; 
15.5 	(2) train its agents in the use of its suitability standards; and 
15.6 	(3) maintain a copy of its suitability standards and make them available for 
15.7 	inspection upon request by the commissioner.
15.8 		Subd. 2.Procedures. (a) To determine whether the applicant meets the standards 
15.9 	developed by the insurer or other entity marketing long-term care insurance, the agent 
15.10 	and insurer or other entity marketing long-term care insurance shall develop procedures 
15.11 	that take the following into consideration:
15.12 	(1) the ability to pay for the proposed coverage and other pertinent financial 
15.13 	information related to the purchase of the coverage;
15.14 	(2) the applicant's goals or needs with respect to long-term care and the advantages 
15.15 	and disadvantages of insurance to meet those goals or needs; and 
15.16 	(3) the values, benefits, and costs of the applicant's existing insurance, if any, when 
15.17 	compared to the values, benefits, and costs of the recommended purchase or replacement.
15.18 	(b) The insurer or other entity marketing long-term care insurance, and where an 
15.19 	agent is involved, the agent, shall make reasonable efforts to obtain the information set 
15.20 	forth in paragraph (a). The efforts shall include presentation to the applicant, at or prior 
15.21 	to application, of the "Long-Term Care Insurance Personal Worksheet." The personal 
15.22 	worksheet used by the insurer or other entity marketing long-term care insurance shall 
15.23 	contain, at a minimum, the information in the format contained in Appendix B of the 
15.24 	Long-Term Care Model Regulation adopted by the National Association of Insurance 
15.25 	Commissioners, in not less than 12-point type. The insurer or other entity marketing 
15.26 	long-term care insurance may request the applicant to provide additional information to 
15.27 	comply with its suitability standards. The insurer or other entity marketing long-term care 
15.28 	insurance shall file a copy of its personal worksheet with the commissioner. 
15.29 	(c) A completed personal worksheet shall be returned to the insurer or other entity 
15.30 	marketing long-term care insurance prior to consideration of the applicant for coverage, 
15.31 	except the personal worksheet need not be returned for sales of employer group long-term 
15.32 	care insurance to employees and their spouses. The sale or dissemination by the insurer 
15.33 	or other entity marketing long-term care insurance, or the agent, of information obtained 
15.34 	through the personal worksheet, is prohibited. 
15.35 	(d) The insurer or other entity marketing long-term care insurance shall use the 
15.36 	suitability standards it has developed under this section in determining whether issuing 
16.1 	long-term care insurance coverage to an applicant is appropriate. Agents shall use the 
16.2 	suitability standards developed by the insurer or other entity marketing long-term care 
16.3 	insurance in marketing long-term care insurance. 
16.4 	(e) At the same time as the personal worksheet is provided to the applicant, the 
16.5 	disclosure form entitled "Things You Should Know Before You Buy Long-Term Care 
16.6 	Insurance" shall be provided. The form shall be in the format contained in Appendix C of 
16.7 	the Long-Term Care Insurance Model Regulation adopted by the National Association of 
16.8 	Insurance Commissioners in not less than 12-point type. 
16.9 	(f) If the insurer or other entity marketing long-term care insurance determines 
16.10 	that the applicant does not meet its financial suitability standards, or if the applicant has 
16.11 	declined to provide the information, the insurer or other entity marketing long-term 
16.12 	care insurance may reject the application. In the alternative, the insurer or other entity 
16.13 	marketing long-term care insurance shall send the applicant a letter similar to Appendix D 
16.14 	of the Long-Term Care Insurance Model Regulation adopted by the National Association 
16.15 	of Insurance Commissioners. However, if the applicant has declined to provide financial 
16.16 	information, the insurer or other entity marketing long-term care insurance may use some 
16.17 	other method to verify the applicant's intent. The applicant's returned letter or a record of 
16.18 	the alternative method of verification shall be made part of the applicant's file. 
16.19 		Subd. 3.Reports. The insurer or other entity marketing long-term care insurance 
16.20 	shall report annually to the commissioner the total number of applications received from 
16.21 	residents of this state, the number of those who declined to provide information on the 
16.22 	personal worksheet, the number of applicants who did not meet the suitability standards, 
16.23 	and the number of those who chose to confirm after receiving a suitability letter. 
16.24 		Subd. 4.Application. This section shall not apply to life insurance policies that 
16.25 	accelerate benefits for long-term care. 

16.26 	Sec. 20. [62S.315] PROVIDER TRAINING REQUIREMENTS.
16.27 	(a) Every insurer and other entity providing long-term care insurance in this state 
16.28 	shall require that each producer authorized to solicit individual consumers for the sale 
16.29 	of long-term care insurance shall complete the following training requirements that, 
16.30 	for resident licensees, may be part of, and not in addition to, the continuing education 
16.31 	requirements of section 60K.56:
16.32 	(1) for producers issued a license after August 1, 2006, eight hours of training in the 
16.33 	24-month period prior to first soliciting individual consumers for the sale of long-term care 
16.34 	insurance and eight hours of training in every 24-month period following licensure; and 
17.1 	(2) for producers issued a license before August 1, 2006, eight hours of training in 
17.2 	every 24-month period after August 1, 2006.
17.3 	(b) The training required by this section shall consist of topics related to long-term 
17.4 	care insurance and long-term care services including, but not limited to:
17.5 	(1) state and federal regulations and requirements;
17.6 	(2) available long-term care services and providers;
17.7 	(3) changes or improvements in long-term care services or providers;
17.8 	(4) alternatives to the purchase of private long-term care insurance;
17.9 	(5) differences in eligibility for benefits and tax treatment between policies intended 
17.10 	to be federally qualified and those not intended to be federally qualified;
17.11 	(6) the effect of inflation in eroding the value of benefits and the importance of 
17.12 	inflation protection; and 
17.13 	(7) consumer suitability standards and guidelines. 
17.14 	The training required by this section shall not include any training that is insurer or 
17.15 	company product specific or that includes any sales or marketing information, materials, 
17.16 	or training, other than those required by state or federal laws or regulations.
17.17 	(c) Every insurer and other entity providing long-term care insurance in this state 
17.18 	shall obtain verification of the training required by this section before a producer is 
17.19 	permitted to sell the entity's long-term care insurance products. Every insurer and 
17.20 	other entity providing long-term care insurance or benefits in this state shall maintain 
17.21 	an accurate record of producers authorized to sell the entity's long-term care insurance 
17.22 	products to ensure continued compliance with the requirements of this section. All records 
17.23 	of authorized producers, past and present, shall be made available to the commissioner 
17.24 	upon request.

17.25 	Sec. 21. EFFECTIVE DATE.
 17.26 	Sections 1 to 20 are effective July 1, 2006.

17.27 	ARTICLE 2
17.28 	LONG-TERM CARE PARTNERSHIP PROGRAM

17.29 	Section 1. Minnesota Statutes 2005 Supplement, section 256B.0571, is amended to 
17.30 	read:
17.31 	256B.0571 LONG-TERM CARE PARTNERSHIP PROGRAM.
17.32 		Subdivision 1.Definitions. For purposes of this section, the following terms have 
17.33 	the meanings given them.
18.1 		~~Subd. 2.Home care service.~~ ~~"Home care service" means care described in section~~ 
18.2 	~~144A.43.~~
18.3 		Subd. 3.Long-term care insurance. "Long-term care insurance" means a policy 
18.4 	described in section 62S.01.
18.5 		Subd. 4.Medical assistance. "Medical assistance" means the program of medical 
18.6 	assistance established under section 256B.01.
18.7 		~~Subd. 5.Nursing home.~~ ~~"Nursing home" means a nursing home as described~~ 
18.8 	~~in section 144A.01.~~
18.9 		Subd. 6.Partnership policy. "Partnership policy" means a long-term care insurance 
18.10 	policy that meets the requirements under subdivision 10 ~~or 11, regardless of when the~~ 
18.11 	~~policy~~ and was first issued on or after July 1, 2006.
18.12 		Subd. 7.Partnership program. "Partnership program" means the Minnesota 
18.13 	partnership for long-term care program established under this section.
18.14 		Subd. 8.Program established. (a) The commissioner, in cooperation with the 
18.15 	commissioner of commerce, shall establish the Minnesota partnership for long-term care 
18.16 	program to provide for the financing of long-term care through a combination of private 
18.17 	insurance and medical assistance.
18.18 	(b) An individual who meets the requirements in this paragraph is eligible to 
18.19 	participate in the partnership program. The individual must:
18.20 	(1) be a Minnesota resident;
18.21 	(2) purchase a partnership policy that is ~~delivered,~~  first issued ~~for delivery, or~~ 
18.22 	~~renewed~~ on or after ~~the effective date of Laws 2005, First Special Session chapter 4,~~ 
18.23 	~~article 7, section 5~~ July 1, 2006, and maintain the partnership policy in effect throughout 
18.24 	the period of participation in the partnership program; and
18.25 	(3) exhaust the minimum benefits under the partnership policy as described in this 
18.26 	section. Benefits received under a long-term care insurance policy before ~~the effective~~ 
18.27 	~~date of Laws 2005, First Special Session chapter 4, article 7, section 5~~ July 1, 2006, do not 
18.28 	count toward the exhaustion of benefits required in this subdivision.
18.29 		Subd. 9.Medical assistance eligibility. (a) Upon application of an individual who 
18.30 	meets the requirements described in subdivision 8, the commissioner shall determine the 
18.31 	individual's eligibility for medical assistance according to paragraphs (b) and (c).
18.32 	(b) After disregarding financial assets exempted under medical assistance eligibility 
18.33 	requirements, the commissioner shall disregard an additional amount of financial assets 
18.34 	equal to the dollar amount of coverage utilized under the partnership policy.
18.35 	(c) The commissioner shall consider the individual's income according to medical 
18.36 	assistance eligibility requirements.
19.1 		Subd. 10.~~Dollar-for-dollar asset protection policies~~ Long-term care partnership 
19.2 	policy. (a) A ~~dollar-for-dollar asset protection~~ long-term care partnership policy must 
19.3 	meet all of the requirements in paragraphs (b) ~~to (e)~~ and (c).
19.4 	(b) The policy must satisfy the requirements of chapter 62S.
19.5 	(c) ~~The policy must offer an elimination period of not more than 180 days for an~~ 
19.6 	~~adjusted premium.~~
19.7 	~~(d) The policy must satisfy the requirements established by the commissioner of~~ 
19.8 	~~human services under subdivision 14.~~
19.9 	~~(e) Minimum daily benefits shall be $130 for nursing home care or $65 for home~~ 
19.10 	~~care, with inflation protection provided in the policy as described in section 62S.23,~~ 
19.11 	~~subdivision 1, clause (1). These minimum daily benefit amounts shall be adjusted by the~~ 
19.12 	~~commissioner on October 1 of each year by a percentage equal to the inflation protection~~ 
19.13 	~~feature described in section 62S.23, subdivision 1, clause (1), for purposes of setting~~ 
19.14 	~~minimum requirements that a policy must meet in future years in order to initially qualify~~ 
19.15 	~~as an approved policy under this subdivision. Adjusted minimum daily benefit amounts~~ 
19.16 	~~shall be rounded to the nearest whole dollar.~~ 
19.17 	(c) The policy must provide the inflation protection described in this paragraph. 
19.18 	If the policy is sold to an individual who:
19.19 	(1) is age 60 or younger on the date of purchase, the policy must provide compound 
19.20 	annual inflation protection;
19.21 	(2) is age 60 to 75 as of the date of purchase, the policy must provide some level of 
19.22 	inflation protection; and 
19.23 	(3) is age 76 or older as of the date of purchase, the policy may, but is not required 
19.24 	to, provide some level of inflation protection.
19.25 		~~Subd. 11.Total asset protection policies.~~ ~~(a) A total asset protection policy must~~ 
19.26 	~~meet all of the requirements in subdivision 10, paragraphs (b) to (d), and this subdivision.~~
19.27 	~~(b) Minimum coverage shall be for a period of not less than three years and for a~~ 
19.28 	~~dollar amount equal to 36 months of nursing home care at the minimum daily benefit rate~~ 
19.29 	~~determined and adjusted under paragraph (c).~~
19.30 	~~(c) Minimum daily benefits shall be $150 for nursing home care or $75 for home~~ 
19.31 	~~care, with inflation protection provided in the policy as described in section 62S.23,~~ 
19.32 	~~subdivision 1, clause (1). These minimum daily benefit amounts shall also be adjusted~~ 
19.33 	~~by the commissioner on October 1 of each year by a percentage equal to the inflation~~ 
19.34 	~~protection feature described in section 62S.23, subdivision 1, clause (1), for purposes of~~ 
19.35 	~~setting minimum requirements that a policy must meet in future years in order to initially~~ 
20.1 	~~qualify as an approved policy under this subdivision. Adjusted minimum daily benefit~~ 
20.2 	~~amounts shall be rounded to the nearest whole dollar.~~
20.3 	~~(d) The policy must cover all of the following services:~~
20.4 	~~(1) nursing home stay;~~
20.5 	~~(2) home care service; and~~
20.6 	~~(3) care management.~~
20.7 		Subd. 12.Compliance with federal law. An issuer of a partnership policy must 
20.8 	comply with ~~any federal law authorizing partnership policies in Minnesota~~ Public Law 
20.9 	109-171, section 6021, including any federal regulations, as amended, adopted under that 
20.10 	law. This subdivision does not require compliance with any provision of this federal 
20.11 	law until the date upon which the law requires compliance with the provision. The 
20.12 	commissioner has authority to enforce this subdivision.
20.13 		Subd. 13.Limitations on estate recovery. ~~(a)~~ For an individual who exhausts the 
20.14 	minimum benefits of a ~~dollar-for-dollar asset protection~~ long-term care partnership policy 
20.15 	under subdivision 10, and is determined eligible for medical assistance under subdivision 
20.16 	9, the state shall limit recovery under the provisions of section 256B.15 against the estate 
20.17 	of the individual or individual's spouse for medical assistance benefits received by that 
20.18 	individual to an amount that exceeds the dollar amount of coverage utilized under the 
20.19 	partnership policy.
20.20 	~~(b) For an individual who exhausts the minimum benefits of a total asset protection~~ 
20.21 	~~policy under subdivision 11, and is determined eligible for medical assistance under~~ 
20.22 	~~subdivision 9, the state shall not seek recovery under the provisions of section 256B.15~~
20.23 	~~against the estate of the individual or individual's spouse for medical assistance benefits~~ 
20.24 	~~received by that individual.~~
20.25 		Subd. 14.Implementation. ~~(a) If federal law is amended or a federal waiver is~~ 
20.26 	~~granted to permit implementation of this section, the commissioner, in consultation with~~ 
20.27 	~~the commissioner of commerce, may alter the requirements of subdivisions 10 and 11,~~ 
20.28 	~~and may establish additional requirements for approved policies in order to conform with~~ 
20.29 	~~federal law or waiver authority. In establishing these requirements, the commissioner shall~~ 
20.30 	~~seek to maximize purchase of qualifying policies by Minnesota residents while controlling~~ 
20.31 	~~medical assistance costs.~~
20.32 	~~(b) The commissioner is authorized to suspend implementation of this section~~ 
20.33 	~~until the next session of the legislature if the commissioner, in consultation with the~~ 
20.34 	~~commissioner of commerce, determines that the federal legislation or federal waiver~~ 
20.35 	~~authorizing a partnership program in Minnesota is likely to impose substantial unforeseen~~ 
20.36 	~~costs on the state budget.~~
21.1 	~~(c) The commissioner must take action under paragraph (a) or (b) within 45 days of~~ 
21.2 	~~final federal action authorizing a partnership policy in Minnesota.~~
21.3 	~~(d) The commissioner must notify the appropriate legislative committees of~~ 
21.4 	~~action taken under this subdivision within 50 days of final federal action authorizing a~~ 
21.5 	~~partnership policy in Minnesota.~~
21.6 	~~(e) The commissioner must publish a notice in the State Register of implementation~~ 
21.7 	~~decisions made under this subdivision as soon as practicable.~~ The commissioner shall 
21.8 	submit a state plan amendment to the federal government by September 30, 2006, to 
21.9 	implement the long-term care partnership program in accordance with this section, in 
21.10 	order that the program may take effect for policies issued on or after July 1, 2006.

21.11 	EFFECTIVE DATE. This section is effective July 1, 2006.