110 STAT. 2068 PUBLIC LAW 104-191—AUG. 21, 1996 amounts paid by such person in connection with such purchases or assignments. "(iii) CHRONICALLY ILL INSUREDS.—A person meets the requirements of this clause with respect to an insured who is a chronically ill individual if such person— "(I) meets requirements similar to the requirements referred to in clause (ii)(I), and "(11) meets the standards (if any) of the National Association of Insurance Commissioners for evaluating the reasonableness of amounts paid by such person in connection with such purchases or assignments with respect to chronically ill individuals. "(3) SPECIAL RULES FOR CHRONICALLY ILL INSUREDS.—In the case of an insured who is a chronically ill individual— "(A) IN GENERAL. — Paragraphs (1) and (2) shall not apply to any payment received for any period unless— "(i) such payment is for costs incurred by the payee (not compensated for by insurance or otherwise) for qualified long-term care services provided for the insured for such period, and "(ii) the terms of the contract giving rise to such payment satisfy— "(I) the requirements of section 7702B(b)(l)(B), and " (II) the requirements (if any) applicable under subparagraph (B). For purposes of the preceding sentence, the rule of section 7702B(b)(2)(B) shall apply. "(B) OTHER REQUIREMENTS. —The requirements applicable under this subparagraph are— "(i) those requirements of section 7702B(g) and section 4980C which the Secretary specifies as applying to such a purchase, assignment, or other arrangement, "(ii) standards adopted by the National Association of Insurance Commissioners which specifically apply to chronically ill individuals (and, if such standards are adopted, the analogous requirements specified under clause (i) shall cease to apply), and "(iii) standards adopted by the State in which the policyholder resides (and if such standards are adopted, the analogous requirements specified under clause (i) and (subject to section 4980C(f)) standards under clause (ii), shall cease to apply). "(C) PER DIEM PAYMENTS. — A payment shall not fail to be described in subparagraph (A) by reason of being made on a per diem or other periodic basis without regard to the expenses incurred during the period to which the payment relates. "(D) LIMITATION ON EXCLUSION FOR PERIODIC PAY- MENTS.— Tor limitation on amount of periodic payments which are treated as described in paragraph (1), see section 7702B(d).. "(4) DEFINITIONS.—For purposes of this subsection— "(A) TERMINALLY ILL INDIVIDUAL. —The term 'terminally ill individual' means an individual who has been
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