Connecticut 2013 Regular Session

Connecticut House Bill HB06321 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1	1		General Assembly Raised Bill No. 6321
2	2		January Session, 2013 LCO No. 2570
3		-	_____~~HB06321INS~~__~~_032013____~~
	3	+	02570_______INS
4	4		Referred to Committee on INSURANCE AND REAL ESTATE
5	5		Introduced by:
6	6		(INS)
7	7
8	8		General Assembly
9	9
10	10		Raised Bill No. 6321
11	11
12	12		January Session, 2013
13	13
14	14		LCO No. 2570
15	15
16		-	_____~~HB06321INS~~__~~_032013____~~
	16	+	02570_______INS
17	17
18	18		Referred to Committee on INSURANCE AND REAL ESTATE
19	19
20	20		Introduced by:
21	21
22	22		(INS)
23	23
24	24		AN ACT REQUIRING CERTAIN DISCLOSURES FOR LONG-TERM CARE POLICIES.
25	25
26	26		Be it enacted by the Senate and House of Representatives in General Assembly convened:
27	27
28	28		Section 1. Subsection (c) of section 38a-501 of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2013):
29	29
30	30		(c) (1) No such company, society, corporation or center may deliver or issue for delivery any long-term care policy without providing, at the time of solicitation or application for purchase or sale of such coverage, full and fair written disclosure of the benefits and limitations of the policy.
31	31
32	32		(A) Such disclosure shall include:
33	33
34	34		(i) A statement that the policy may be subject to rate increases in the future;
35	35
36	36		(ii) An explanation of potential future premium rate revisions and the policyholder's option in the event of a premium rate revision;
37	37
38	38		(iii) The premium rate or rate schedule applicable to the applicant that will be in effect until a request is made by such company, society, corporation or center for a revision to such rate or rate schedule;
39	39
40	40		(iv) An explanation of how a premium rate or rate schedule revision will be applied that includes a description of when such rate or rate schedule revision will be effective and the policyholder's right to such revised rate or rate schedule; and
41	41
42	42		(v) Information regarding each premium rate increase, if any, over the past ten years on such policy form or similar policy forms for this state or any other state, that identifies, at a minimum, (I) the policy forms for which premium rates have been increased, (II) the calendar years when each such policy form was available for purchase, and (III) the amount or percentage of each increase. The percentage may be expressed as a percentage of the premium rate prior to the increase or as minimum and maximum percentages if the rate increase is variable by rating characteristics.
43	43
44	44		(B) The applicant shall sign an acknowledgment at the time of application for such policy that the company, society, corporation or center has provided the written disclosure required under this subsection to the applicant. If the method of application does not allow for such signature at the time of application, the applicant shall sign such acknowledgment not later than at the time of delivery of such policy.
45	45
46	46		(2) If the offering for any long-term care policy includes an option for the elimination period specified in subdivision (1) of subsection (a) of this section, the application form for such policy and the face page of such policy shall contain a clear and conspicuous disclosure that the irrevocable trust may not be sufficient to cover all costs during the elimination period.
47	47
48	48		Sec. 2. Subsection (c) of section 38a-528 of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2013):
49	49
50	50		(c) No such company, society, corporation or center may deliver or issue for delivery any long-term care policy without providing, at the time of solicitation or application for purchase or sale of such coverage, full and fair disclosure of the benefits and limitations of the policy. [The provisions of this subsection shall not be applicable to: (1) Any long-term care policy which is delivered or issued for delivery to one or more employers or labor organizations, or to a trust or to the trustees of a fund established by one or more employers or labor organizations, or a combination thereof, for employees or former employees or a combination thereof or for members or former members or a combination thereof, or the labor organizations; and (2) noncontributory plans.]
51	51
52	52		(1) Such disclosure shall include:
53	53
54	54		(A) A statement that the policy may be subject to rate increases in the future;
55	55
56	56		(B) An explanation of potential future premium rate revisions and the policyholder's or certificate holder's option in the event of a premium rate revision;
57	57
58	58		(C) The premium rate or rate schedule applicable to the applicant that will be in effect until a request is made by such company, society, corporation or center for a revision to such rate or rate schedule;
59	59
60	60		(D) An explanation of how a premium rate or rate schedule revision will be applied that includes a description of when such rate or rate schedule revision will be effective and the policyholder's right to such revised rate or rate schedule; and
61	61
62	62		(E) Information regarding each premium rate increase, if any, over the past ten years on such policy form or similar policy forms for this state or any other state, that identifies, at a minimum (I) the policy forms for which premium rates have been increased, (II) the calendar years when each such policy form was available for purchase, and (III) the amount or percentage of each increase. The percentage may be expressed as a percentage of the premium rate prior to the increase or as minimum and maximum percentages if the rate increase is variable by rating characteristics.
63	63
64	64		(2) The applicant shall sign an acknowledgment at the time of application for such policy that the company, society, corporation or center has provided the written disclosure required under this subsection to the applicant. If the method of application does not allow for such signature at the time of application, the applicant shall sign such acknowledgment not later than at the time of delivery of such policy.
65	65
66	66		(3) The policyholder shall provide to each eligible individual a copy of the disclosure.
67	67
68	68		Sec. 3. Section 38a-458 of the general statutes is amended by adding subsection (e) as follows (Effective October 1, 2013):
69	69
70	70		(NEW) (e) Any life insurance policy with long-term care benefits issued pursuant to this section shall comply with the disclosure requirements set forth in subdivision (1) of subsection (c) of section 38a-501, as amended by this act, or subsection (c) of section 38a-528, as amended by this act, as applicable.
71	71
72	72		Sec. 4. Section 38a-458a of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2013):
73	73
74	74		(a) Notwithstanding the provisions of sections 38a-430, 38a-481 and 38a-501, as amended by this act, or any regulation adopted pursuant to said sections, an insurer licensed for both life and health insurance in this state may combine the following coverages, by rider or otherwise, within a single-premium policy or contract: (1) Life or endowment insurance or annuity, survivorship annuity or pure endowment insurance; and (2) long-term care insurance.
75	75
76	76		(b) Any insurer that combines long-term care insurance coverage with other coverages, as set forth in subsection (a) of this section, shall comply with the disclosure requirements set forth in subdivision (1) of subsection (c) of section 38a-501, as amended by this act, or subsection (c) of section 38a-528, as amended by this act, as applicable.
77	77
78	78
79	79
80	80
81	81		This act shall take effect as follows and shall amend the following sections:
82	82		Section 1 October 1, 2013 38a-501(c)
83	83		Sec. 2 October 1, 2013 38a-528(c)
84	84		Sec. 3 October 1, 2013 38a-458
85	85		Sec. 4 October 1, 2013 38a-458a
86	86
87	87		This act shall take effect as follows and shall amend the following sections:
88	88
89	89		Section 1
90	90
91	91		October 1, 2013
92	92
93	93		38a-501(c)
94	94
95	95		Sec. 2
96	96
97	97		October 1, 2013
98	98
99	99		38a-528(c)
100	100
101	101		Sec. 3
102	102
103	103		October 1, 2013
104	104
105	105		38a-458
106	106
107	107		Sec. 4
108	108
109	109		October 1, 2013
110	110
111	111		38a-458a
112	112
	113	+	Statement of Purpose:
113	114
	115	+	To require insurers to provide certain disclosures at the time of solicitation or application for purchase or sale of a long-term care policy.
114	116
115		-	INS Joint Favorable
116		-
117		-	INS
118		-
119		-	Joint Favorable
	117	+	[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not underlined.]