Arizona Revised Statutes Title 20. Insurance § 20-1691.11. Nonforfeiture benefits

A. Except as provided in subsection B of this section, a person shall not deliver or issue for delivery in this state a long-term care insurance policy unless the policyholder or certificate holder has been offered the option of purchasing a policy or certificate with a nonforfeiture benefit. The offer of the nonforfeiture benefit may be in the form of a rider that is attached to the policy. If the policyholder or certificate holder declines the benefit, the insurer shall provide a contingent benefit on lapse that shall be available for a specified period of time following a substantial increase in premium rates.

B. If a group long-term care insurance policy is issued, a person shall make the offer of the nonforfeiture benefit to the group policyholder, except that if the policy is issued to a group as defined in § 20-1691, paragraph 4, subdivision (d), other than to a continuing care retirement community or other similar entity, a person shall make the offering to each proposed certificate holder.