| 28 | | - | Section 1. Section 38a-519 of the general statutes is repealed and the following is substituted in lieu thereof (Effective January 1, 2012): |
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| 29 | | - | |
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| 30 | | - | (a) No group health insurance policy that provides disability income protection coverage, delivered, issued for delivery, renewed, amended or continued in this state, and no application, rider or endorsement used in connection therewith shall contain an offset proviso. For the purposes of this subsection, [an] "offset proviso" means any provision of an insurance policy that allows the insurer to reduce its liability for loss or expense from sickness or from bodily injury of the insured by reason of any cost of living increase in other disability benefits that occur after the date a claim commences under such policy. |
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| 31 | | - | |
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| 32 | | - | (b) For each group long-term disability income protection coverage policy delivered, issued for delivery, renewed, amended or continued in this state, that contains an offset, the insurer shall disclose to a policyholder in a separate document and in a conspicuous manner in not less than fourteen-point bold face type: (1) That the policy contains an offset; (2) that such offset will function to limit payments to an insured under the policy, taking into account Social Security disability benefits and other benefits the insured may receive; (3) for what other categories of benefits the policy will offset; (4) the [per cent] percentage of income the policy covers and the maximum dollar limit of the policy, if applicable; and (5) at least one example showing how such offset will operate. Such disclosure shall include a statement that, if an eligible individual wants a policy that does not contain an offset, the individual may contact an insurance agent or company for an individual policy. |
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| 33 | | - | |
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| 34 | | - | (c) No policy set forth in subsection (b) of this section shall include in such offset any retirement benefits received by the insured. |
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| 35 | | - | |
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| 36 | | - | [(c)] (d) The policyholder shall provide to each eligible individual the information and the statement required to be disclosed under subsection (b) of this section. |
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| 37 | | - | |
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| 38 | | - | Sec. 2. (NEW) (Effective January 1, 2012) (a) No individual health insurance policy that provides disability income protection coverage, delivered, issued for delivery, renewed, amended or continued in this state, and no application, rider or endorsement used in connection therewith shall contain an offset proviso. For the purposes of this subsection, "offset proviso" means any provision of an insurance policy that allows the insurer to reduce its liability for loss or expense from sickness or from bodily injury of the insured by reason of any cost of living increase in other disability benefits that occur after the date a claim commences under such policy. |
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| 39 | | - | |
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| 40 | | - | (b) For each individual long-term disability income protection coverage policy delivered, issued for delivery, renewed, amended or continued in this state, that contains an offset, the insurer shall disclose to the insured in a separate document and in a conspicuous manner in not less than fourteen-point bold face type: (1) That the policy contains an offset; (2) that such offset will function to limit payments to an insured under the policy, taking into account Social Security disability benefits and other benefits the insured may receive; (3) for what other categories of benefits the policy will offset; (4) the percentage of income the policy covers and the maximum dollar limit of the policy, if applicable; and (5) at least one example showing how such offset will operate. Such disclosure shall include a statement that, if an individual wants a policy that does not contain an offset, the individual may contact an insurance agent or company. |
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| 41 | | - | |
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| 42 | | - | (c) No policy set forth in subsection (b) of this section shall include in such offset any retirement benefits received by the insured. |
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| 43 | | - | |
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| 44 | | - | |
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| 45 | | - | |
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| 46 | | - | |
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| 47 | | - | This act shall take effect as follows and shall amend the following sections: |
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| 48 | | - | Section 1 January 1, 2012 38a-519 |
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| 49 | | - | Sec. 2 January 1, 2012 New section |
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| 50 | | - | |
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| 51 | | - | This act shall take effect as follows and shall amend the following sections: |
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| 52 | | - | |
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| 53 | | - | Section 1 |
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| 54 | | - | |
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| 55 | | - | January 1, 2012 |
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| 56 | | - | |
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| 57 | | - | 38a-519 |
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| 58 | | - | |
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| 59 | | - | Sec. 2 |
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| 60 | | - | |
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| 61 | | - | January 1, 2012 |
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| 62 | | - | |
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| 63 | | - | New section |
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| 25 | + | That title 38a of the general statutes be amended to prohibit insurers from including in disability income protection coverage offsets pension benefits received by an insured. |
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