When long-term care insurance is replaced, what is the insurer prohibited from imposing?

When long-term care insurance is replaced, the insurer is prohibited from imposing a new pre-existing conditions exclusion. This regulation is designed to protect policyholders by ensuring continuity of coverage, especially since a primary concern for individuals purchasing long-term care insurance is the potential for needing care related to pre-existing health conditions. Implementing a new exclusion could leave individuals vulnerable, undermining the purpose of securing long-term care insurance in the first place.

In the context of replacing an existing policy, it is crucial to ensure that beneficiaries retain coverage for any conditions that existed prior to the new policy. This safeguard supports consumer protection principles in the insurance industry, providing peace of mind that individuals will not face unfair penalties when transitioning between policies.

The other aspects, such as new policy limits, waiting periods, or higher premiums, can be subject to adjustments based on the underwriting practices of the new insurer or other administrative factors during the policy replacement. Therefore, it is the prohibition of new pre-existing conditions exclusions that stands out as a key protective measure for policyholders during this process.