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Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 28895
Experience:  Taxes, Immigration, Labor Relations
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Those long term care policies which were purchased prior to

Customer Question

Those long term care policies which were purchased prior to 1997 were "grandfathered" and therefore are qualified for their federal taxqualified tax breaks or NOT?
Submitted: 11 months ago.
Category: Tax
Expert:  Lev replied 11 months ago.
Yes - that is correct information. Here the specific statutehttps://www.law.cornell.edu/cfr/text/26/1.7702B-2(b) Pre-1997 long-term care insurance contracts(1) In general. A pre-1997 long-term care insurance contract is treated as a qualified long-term care insurance contract, regardless of whether the contract satisfies section 7702B(b) and any regulations issued thereunder.(2) Pre-1997 long-term care insurance contract defined. A pre-1997 long-term care insurance contract is any insurance contract with an issue date before January 1, 1997, that met the long-term care insurance requirements of the State in which the contract was sitused on the issue date. For this purpose, the long-term care insurance requirements of the State are the State laws (including statutory and administrative law) that are intended to regulate insurance coverage that constitutes “long-term care insurance” (as defined in section 4 of the National Association of Insurance Commissioners (NAIC) Long-Term Care Insurance Model Act, as in effect on August 21, 1996), regardless of the terminology used by the State in describing the insurance coverage.