Consumer Protection Standards for Long Term Care Insurance Act of 1991

Consumer Protection Standards for Long Term Care Insurance 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 of insurance under a State regulatory program that incorporates such standards.

Outlines Federal standards long-term care insurance policies must meet, including those which mandate that such policies: (1) offer inflation protection features, nonforfeiturable benefits after a certain vesting period should the policy lapse, and approved premium rates; (2) be guaranteed renewable except for nonpayment of premiums or material misrepresentation; (3) use simple, easily understood English in a standard format; (4) allow for alternative payors; (5) allow purchasers 30 days to rescind their purchase of the policy and to have the premium refunded; (6) not condition eligibility for benefits except in cases of preexisting conditions; (7) use standard assessment for determining the level of home health care and nursing facility care benefits available under a particular policy; (8) incorporate certain minimum standards for home health benefits; (9) provide a one year period of contestability after issuance of the policy; (10) prohibit discrimination in cases of individuals with any progressive degenerative dementia or individuals who are mentally ill; and (11) provide no benefit caps or policy duration caps.

Prohibits sales of duplicate benefit policies, except under prescribed guidelines.

Prohibits sales of long-term care insurance policies unless certain information is disclosed beforehand to the potential buyer.

Requires issuers of such policies to report to the Secretary and appropriate State officials information relating to: (1) benefit utilization and payments under the policy; (2) age and health status of policy purchasers; (3) lapse rates, rescissions, and payment and application denials; and (4) purchaser compliants. Requires the Secretary to make such information available, upon request, to the National Association of Insurance Commissioners and other interested parties.

Sets forth civil penalties for issuing unapproved or uncertified policies and for the failure to report such information.