MN SF2142

Permits accelerated benefits under life insurance policies to include long-term care coverage as a qualifying event, allowing policyholders to access death benefits if a health care provider determines they need long-term care.

Requires insurers to disclose that products including long-term care accelerated benefits must comply with chapter 62S (long-term care insurance regulations) and cannot be marketed as long-term care insurance unless they meet those requirements.

Allows policy owners to borrow against their life insurance policy's cash value to pay premiums on long-term care insurance that complies with chapter 62S.

Requires insurers to provide disclosure statements explaining the effects of accelerated benefit payments on policy cash value, death benefits, premiums, and potential impacts on Medicaid eligibility and tax consequences.

Effective date is the day following final enactment and applies to life insurance contracts issued on or after that date.