AK SB296

Establishes incontestability periods for long-term care insurance policies: insurers may rescind policies or deny claims based on misrepresentation for less than 6 months, between 6 months and 2 years if material to condition claimed, and after 2 years only if insured knowingly and intentionally misrepresented health facts.

Requires all long-term care insurance policies to offer nonforfeiture benefits (as a rider or included) with a contingent benefit available if the policy lapses following a substantial premium rate increase.

Mandates insurance producers selling long-term care insurance complete an 8-hour one-time training course and 4 hours of ongoing training every 24 months covering state/federal requirements, available services, alternatives, inflation effects, and consumer suitability standards.

Creates the long-term care insurance premium assistance program allowing individuals to direct up to $500 annually of their permanent fund dividend to pay long-term care insurance premiums, with the state paying the insurer on behalf of qualified applicants.

Requires insurers to provide written explanations of claim denials within 60 days and removes restrictive preexisting condition definitions, limiting them to conditions for which medical advice or treatment was received within 6 months before coverage effective date.