State RegulationsNY specificDifficulty 1/5
Which of the following are the two common types of nonforfeiture benefits offered in New York long-term care policies?
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Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
Under Reg 62 (11 NYCRR Part 52), the two common nonforfeiture designs in long-term care policies are the reduced paid-up benefit, under which the policy continues after lapse with reduced daily benefits, and the shortened benefit period, under which the policy continues to cover the same benefits until the accumulated value is exhausted. Either way, a lapsed policy retains value instead of ending in a total loss.
Why the other options are wrong
- A) Long-term care nonforfeiture benefits preserve coverage; they are not premium refunds or life insurance cash values.
- B) Conversion to whole life and accelerated death benefits are life insurance concepts, not LTC nonforfeiture forms.
- D) Extending the elimination period or adding a return of premium rider is not a nonforfeiture design.
Memory hook
Nonforfeiture twins: reduced paid-up and shortened benefit period.