What is a Qualified Long Term Care (LTC) Insurance Contract?
A qualified LTC insurance contract is a contract where one of the following apply:
- After December 31, 1996, the contract meets the requirements of section 7702B, including the requirement that the insured must be a chronically ill individual. A chronically ill individual is someone who has been certified annually by a licensed health practitioner as:
- Being unable to perform at least two activities of daily living (eating, toileting, transferring, bathing, dressing, and continence), without substantial assistance from another individual for at least 90 days, due to a loss of functional capacity, or
- Requiring substantial supervision to protect the individual from threats to health and safety due to severe cognitive impairment. An individual must have been certified within the past 12 months as meeting this condition.
- Before January 1, 1997, the contract meets state law requirements for LTC insurance contracts at the time it was issued and hasn't changed materially since then.
