Section 2012.EXHIBIT B   Replacement Notice for Direct Response Solicitations

NOTICE TO APPLICANT REGARDING REPLACEMENT OF ACCIDENT AND SICKNESS OR

LONG-TERM CARE INSURANCE

[Insurance Company's Name and Address]

SAVE THIS NOTICE!  IT MAY BE IMPORTANT TO YOU IN THE FUTURE.

According to [your application] [information you have furnished], you intend to lapse or otherwise terminate existing accident and sickness or long-term care insurance and replace it with the long-term care insurance policy delivered herewith issued by [Company Name] Insurance Company.  Your new policy provides 30 days within which you may decide, without cost, whether you desire to keep the policy.  For your own information and protection, you should be aware of and seriously consider certain factors which may affect the insurance protection available to you under the new policy.

You should review this new coverage carefully, comparing it will all accident and sickness or long-term care insurance coverage you now have, and terminate your present policy only if, after due consideration, you find that purchase of this long-term coverage is a wise decision.

1.         Health conditions which you may presently have (preexisting conditions), may not be immediately or fully covered under the new policy.  This could result in denial or delay in payment of benefits under the new policy, whereas a similar claim might have been payable under your present policy.

2.         State law provides that your replacement policy or certificate may not contain new preexisting conditions or probation periods.  Your insurer will waive any time periods applicable to preexisting conditions or probationary periods in the new policy (or coverage) for similar benefits to the extent such time was spent (depleted) under the original policy.

3.         If you are replacing existing long-term care insurance coverage you may wish to secure the advice of your present insurer or its insurance producer regarding the proposed replacement of your present policy.  This is not only your right, but it is also in your best interest to make sure you understand all the relevant factors involved in replacing your present coverage.

4.         [To be included only if the application is attached to the policy.] If, after due consideration, you still wish to terminate you present policy and replace it with new coverage, read the copy of the application attached to your new policy and be sure that all questions are answered fully and correctly.  Omissions or misstatements in the application could cause an otherwise valid claim to be denied.  Carefully check the application and write to [Company Name and Address] within 30 days if any information is not correct and complete, or if any past medical history has been left out of the application.

(Source:  Amended at 32 Ill. Reg. 7600, effective May 5, 2008)