3616 N. Potsdam Ave. #2660
Sioux Falls, SD 57104
National Association of Insurance and Financial Advisors
Founded in 1890 as the National Association of Life Underwriters (NALU)
A MUST READ FROM ADAM WEEMAN,
NAIFA-SD GOVERNMENT RELATIONS CHAIR
“Attention NAIFA Members: The South Dakota Division of Insurance recently lowered the inflation protection requirement for Partnership Long Term Care Policies to 1%/year, instead of 3%/year. This was the result of direct involvement from NAIFA-SD leadership and members. See the information below:
20:06:21:76. Long-term care partnership policies -- Inflation protection requirements. An insurer may not issue a policy intended to qualify as a partnership policy unless in addition to the requirements of §§ 20:06:21:06 to 20:06:21:06.05, inclusive, the policy includes the following inflation protection:
(1) For a person who is less than 61 years of age as of the date of purchase, the policy provides compound annual inflation protection; and
(2) For a person who is at least 61 years of age but less than 76 years of age, the policy provides some level of inflation protection that may not be less than one percent per year or a rate equal to the Consumer Price Index.
Inflation protection as required by this section may not be less than one percent per year or a rate equal to the Consumer Price Index. For any person who has attained the age of 76, inflation protection may be provided but is not required.
Source: 33 SDR 230, effective July 2, 2007; 34 SDR 88, effective September 10, 2007; 44 SDR 184, effective June 25, 2018.
General Authority: SDCL 58-17B-4.
Law Implemented: SDCL 28-6-38(6), 58-17B-4.
The 1% inflation rider itself would not need to be refiled. They would have to file a new Partnership Certification form stating which additional inflation protection riders they will be using for partnership. This form is Appendix L in ARSD 20:06:21.
Adam D Weeman, Certified Kingdom Advisor, CFP® , FIC
Two Rivers Region
Grand View Associates
CA License 0H77387
5900 S Western Ave Ste 201, Sioux Falls, SD 57108-5082