State RegulationsMA specificDifficulty 2/5
A long-term care policyholder in Massachusetts is at risk of allowing the policy to lapse without intending to. What protection does 211 CMR 65.10 provide against an unintentional lapse?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
211 CMR 65.10 addresses unintentional lapse in Massachusetts long-term care policies by letting the insured designate another person — a family member, friend, or other third party — to receive notice before the policy lapses for nonpayment. Because long-term care policyholders may later face cognitive decline and miss premium notices, the third-party notice design gives someone else a chance to intervene before decades of coverage are lost. The Massachusetts Division of Insurance built this safeguard into its long-term care regulation, 211 CMR 65.00.
Why the other options are wrong
- B) Policies may still lapse for nonpayment; the rule provides advance notice to a designee, not absolute lapse immunity.
- C) Automatic paid-up conversion is not the protection 211 CMR 65.10 provides; the safeguard is third-party notice before the lapse takes effect.
- D) The unintentional-lapse protection is not confined to the first policy year; it addresses the risk of missed payments at any point in the policy's life.
Memory hook
Name a backup set of eyes: a third party gets the lapse warning before the LTC coverage dies.