CT SB00028

Redefines "qualifying event" for accelerated life insurance benefits to include additional medically determinable conditions beyond terminal illness, including permanent inability to perform two activities of daily living without assistance, severe cognitive impairment, and chronic illness as defined under Internal Revenue Code sections 7702B and 101(g).

Expands the definition of qualifying events to include conditions requiring at least six months of confinement in a residence under physician/advanced practice nurse supervision or in an institution providing necessary care or treatment, with medical determination of confinement until death.

Requires life insurance companies issuing accelerated benefits policies to include a statement on policies providing benefits for certain qualifying events (confinement, activities of daily living, cognitive impairment, or chronic illness conditions) stating: "This policy is not a long-term care policy."

Requires disclosure to applicants at time of application and when requesting accelerated benefits payments regarding potential tax implications, with prominent display on first page of policy.

Effective date is October 1, 2016, amending Connecticut General Statutes section 38a-457.