Long-Term Care Insurance Consumer Protection Act of 1991

Long-Term Care Insurance Consumer Protection Act of 1991 - Amends title XIX (Medicaid) of the Social Security Act to afford Federal consumer protection to purchasers of long-term care insurance policies by requiring that, before such policies may be issued or sold, they must have been either certified by the Secretary of Health and Human Services as meeting the minimum Federal standards and requirements outlined below or approved by the State commissioner or superintendent of insurance under a regulatory program each State is required to establish that: (1) incorporates such standards and requirements; (2) provides consumers with access to basic information on issuers and policies; and (3) provides for an approval process for proposed premium increases.

Outlines Federal standards long-term care insurance policies must meet, including those which mandate that such policies: (1) offer mandatory inflation protection features, nonforfeitable benefits after a certain vesting period should the policy lapse, and limited premium increases; (2) be guaranteed renewable except for nonpayment of premiums or material misrepresentation; (3) use standard language and a uniform format, with certain variations in language permitted; (4) disclose a detailed outline of coverage; (5) allow purchasers 30 days to rescind their purchase of the policy and to have the premium refunded; (6) not condition or limit eligibility for benefits, including non-institutional benefits, except in cases of preexisting conditions; (7) use functional assessment tools for determining home care eligibility; (8) provide a right to appeal denials for home care eligibility; (9) provide a six-month period of contestability after issuance of the policy; (10) prohibit discrimination in cases of individuals with Alzheimer's disease; and (11) provide benefits over a period of at least 12 consecutive months.

Regulates the marketing of long-term care insurance policies by establishing prohibitions on certain sales practices, such as high pressure tactics, and on sales to Medicaid beneficiaries and sales of duplicate service benefit policies.

Imposes additional requirements on issuers of long-term care insurance policies with respect to: (1) the prompt mailing of new policies after approval; (2) the furnishing of information to policyholders regarding denied claims and to the Secretary and appropriate State officials regarding policies, premiums, lapse, replacement, and rescission rates and denied claims; (3) the obtaining of medical assessments for elderly applicants if the policy is not guaranteed to issue; and (4) the limiting of compensation to agents for the sale of long-term care insurance policies.

Sets forth penalties for issuing unapproved or uncertified policies and for violating prohibited sales practices and the requirements imposed on issuers of long-term care insurance policies.

Requires reports on functional ability assessment tools and on solvency protections for such issuers.

Requires a study to develop a standard measure of value for long-term care insurance policies.

Authorizes appropriations to increase funding for long-term care insurance information, counseling, and assistance.