Key Takeaways
- Virginia requires a 10-day free look period for disability insurance policies
- Individual disability policies must include standard provisions for claims and grace periods
- Virginia participates in the Long-Term Care Partnership Program for Medicaid asset protection
- LTC policies must offer inflation protection options and nonforfeiture benefits
- Producers selling LTC must complete initial and ongoing training requirements
Virginia Disability and Long-Term Care Insurance
Virginia has specific regulations for disability income insurance and long-term care insurance that protect consumers and ensure adequate coverage.
Disability Income Insurance
Free Look Period
Virginia requires a 10-day free look period for individual disability insurance:
- Policyholder can return for full premium refund
- Begins when policy is delivered
- Applies to individual policies
Required Policy Provisions
Virginia disability policies must include:
| Provision | Requirement |
|---|---|
| Grace Period | Minimum 31 days for annual premium |
| Reinstatement | Must allow reinstatement |
| Notice of Claim | 20 days after loss begins |
| Time to File Proof | 90 days after loss period |
| Time to Pay Claims | Promptly after proof of loss |
| Legal Actions | No earlier than 60 days after proof |
Cancellation Requirements
For guaranteed renewable policies:
- Cannot cancel for health reasons
- Can only cancel for nonpayment
- Written notice required
Optional Provisions
Virginia allows certain optional provisions:
- Change of occupation clause
- Misstatement of age clause
- Other insurance clause
- Relation of earnings to insurance
Long-Term Care Insurance
Virginia has comprehensive LTC insurance regulations:
Free Look Period
- 30-day free look for LTC policies
- Applies to all individual LTC policies
- Policyholder can return for full refund
Required Provisions
| Provision | Requirement |
|---|---|
| Renewability | Must be guaranteed renewable |
| Pre-existing Conditions | Max 6-month look-back |
| Elimination Period | Must disclose clearly |
| Inflation Protection | Must offer option |
| Nonforfeiture | Must offer option |
Inflation Protection Options
Insurers must offer at least one inflation protection option:
- Compound inflation (3% or 5%)
- Simple inflation
- Consumer Price Index adjustment
- Benefit increase option
Virginia Partnership Program
Virginia participates in the Long-Term Care Partnership Program:
How It Works
- Purchase a Partnership-qualified LTC policy
- Use benefits for care
- If benefits exhaust, apply for Medicaid
- Asset protection - Keep assets equal to benefits received
Example
| Without Partnership | With Partnership |
|---|---|
| Spend down to standard limits | Protect assets up to benefits paid |
| May lose home equity | May keep home and assets |
| Standard Medicaid rules | Enhanced asset protection |
Producer Requirements
To sell LTC insurance in Virginia:
- Complete 8 hours of initial LTC training
- Complete 4 hours of ongoing LTC training each license period
- Training must cover Virginia-specific requirements
- Must complete before selling LTC products
How long is the free look period for long-term care insurance in Virginia?
What is the primary benefit of purchasing a Virginia Partnership-qualified long-term care policy?
How many hours of initial training are required to sell long-term care insurance in Virginia?