Connecticut Senate Bill SB00141

Connecticut 2010 Regular Session

• Introduced: 2/10/10
• Refer: 2/10/10
• Report Pass: 2/25/10
• Refer: 3/5/10
• Report Pass: 3/11/10
• Engrossed: 4/27/10
• Report Pass: 4/27/10
• Chaptered: 5/12/10
• Enrolled: 5/17/10
• Passed: 5/18/10

Caption

An Act Requiring Disclosure Of Offsets In Group Long-term Disability Insurance Policies.

Impact

This legislation modifies existing state statutes related to group health insurance policies that provide disability income protection. It effectively repeals prior regulations allowing offset provisions, thereby ensuring that individuals receiving group long-term disability benefits are fully aware of any limitations imposed by their policies. Insurers will be required to disclose details regarding offsets, including examples of how these might affect a policyholder's total benefits. The disclosure is intended to empower consumers, enabling them to make well-informed decisions about their disability insurance options.

Summary

SB00141, also known as the Act Requiring Disclosure Of Offsets In Group Long-term Disability Insurance Policies, aims to enhance the transparency of group long-term disability insurance policies by prohibiting offset provisions. An offset provision allows insurers to reduce their liability if an insured individual receives other benefits, such as Social Security disability, which can potentially limit the payments made to them under their policy. By mandating clear disclosures from insurers about the existence and implications of such offsets, the bill seeks to inform policyholders about how their benefits may be affected by additional disability benefits they receive.

Sentiment

The sentiment around SB00141 is largely positive among consumer advocacy groups and individuals concerned about transparency in insurance policies. Supporters argue that providing clear information about offset provisions will protect consumers and reduce confusion regarding their benefits. There seems to be broad legislative support for the bill, as evidenced by its passage in the Senate without any opposition. However, some insurance providers have expressed concerns that heightened disclosures may complicate policy offerings, hinting at a tension between consumer advocacy and industry response.

Contention

A notable point of contention includes the potential administrative burden on insurers to comply with the new disclosure requirements. Insurers fear that increased compliance costs and the need for more comprehensive consumer education could complicate the distribution of long-term disability insurance products. There is also debate about how effectively the new disclosures will lead to improved consumer understanding, as some skeptics suggest that policy documents can still be challenging to navigate despite clearer formatting.