Connecticut Senate Bill SB00095

Connecticut 2013 Regular Session

• Introduced: 1/10/13
• Refer: 1/10/13

Caption

An Act Requiring Certain Disclosures For Long-term Care Policies.

Impact

If enacted, SB00095 will amend Title 38a of the general statutes to incorporate these disclosure requirements directly into the insurance application process. This change is expected to empower consumers by ensuring they are adequately informed of the potential fluctuations in premium rates for long-term care insurance. The bill reflects a growing concern over consumer protection in the insurance sector, emphasizing the need for clarity and accountability from insurance providers regarding pricing practices and policy terms.

Summary

SB00095, also known as An Act Requiring Certain Disclosures For Long-Term Care Policies, aims to enhance transparency in the sale of long-term care insurance products. The bill mandates that insurers must provide clear and conspicuous information to prospective insured individuals at the time of solicitation or application. This disclosure must specifically inform applicants that premiums for long-term care policies can increase at any time and that policies may be canceled if the insured fails to pay the increased premium. This legislative measure intends to protect consumers from unexpected financial burdens associated with long-term care coverage.

Contention

While the bill is designed to protect consumers, there may exist contention regarding the balance between transparency and the operational burdens imposed on insurance providers. Opponents might argue that overly stringent disclosure requirements could lead to higher administrative costs for insurance companies, which could subsequently be passed on to consumers in the form of higher premiums. Supporters, however, counter that fostering transparency is crucial for consumer trust and informed decision-making in selecting long-term care coverage, ultimately benefiting the market and its participants.