When long term care insurance is replaced, what cannot the insurer issuing the new policy do?

When long-term care insurance is replaced, the insurer issuing the new policy cannot impose a new pre-existing conditions exclusion. This means that if a policyholder transitions from one long-term care policy to another, the new insurer must honor the coverage terms of the previous policy regarding pre-existing conditions. This protection is in place to ensure that individuals are not penalized when they seek to upgrade or change their coverage due to conditions they may have developed while previously insured.

This concept emphasizes the importance of continuity in coverage, ensuring that individuals do not find themselves in a position where they are suddenly uncovered for conditions that existed prior to the purchase of the new policy. It’s a consumer protection measure designed to promote fair treatment of policyholders.

In the context of the other options, while premiums can be adjusted, they should be reasonable and based on actuarial data. Coverage duration can be modified within reasonable guidelines, and insurers can change the policy type depending on various factors, such as changing the benefits offered. However, introducing new exclusions for pre-existing conditions is specifically prohibited to safeguard policyholders' rights.