FL S1756

Requires life insurance policies or riders to provide accelerated death benefit payments to policyholders who have been nursing home residents for at least 3 months and are expected to remain there until death, with benefit amounts determined using actuarially appropriate methods.

Mandates all insurers offering life insurance in Florida must offer applicants policies or riders with accelerated death benefits for terminal illness (12 months or less life expectancy) or long-term nursing home residence.

Requires insurers to offer accelerated death benefit riders to all existing policyholders by July 1, 2013.

Establishes that policyholders applying for Medicaid for long-term care must determine fair market value of their life insurance policy and spend down all conversion proceeds through an irrevocable long-term care benefit account before Medicaid eligibility consideration.

Mandates insurers provide written notice in lay terms to policyholders age 65 or older, or terminally or chronically ill, explaining alternatives to policy lapse or surrender, including accelerated benefits, life settlements, policy replacement, and long-term care conversions; violations constitute deceptive trade practices.