An Act Concerning Accelerated Benefits Of Life Insurance Policies.
Impact
The bill, if enacted, would significantly amend Section 38a-457 of the Connecticut General Statutes related to life insurance policies. It introduces stricter definitions for conditions qualifying for accelerated benefits and outlines necessary disclosures that insurance companies must provide to consumers. By enhancing the specificity of what constitutes a qualifying event, the bill aims to protect consumers while still allowing insurers to manage risk effectively. Additionally, it requires insurers to clearly explain the implications of receiving accelerated benefits on policy values and potential tax liabilities.
Summary
Bill SB00880, titled 'An Act Concerning Accelerated Benefits Of Life Insurance Policies,' aims to update the regulations surrounding accelerated benefits in life insurance policies. The bill redefines the term 'qualifying event' to include various medically determinable conditions that would allow policyholders to access their benefits under certain circumstances. These qualifying events include conditions expected to result in death within a short period, confinement due to an illness or injury, or significant cognitive impairments.
Contention
However, the bill may introduce points of contention in its interpretation and application. Critics may raise concerns about the increased complexity of applying for accelerated benefits, potentially discouraging individuals facing severe health issues from utilizing these benefits. The disclosure requirements could also be viewed as burdensome, leading to debate over whether the additional regulatory measures ultimately benefit insured individuals or impose excessive constraints on insurance providers. Ensuring that all consumers fully understand the fiscal and medical ramifications of accessing accelerated benefits will be a critical factor in the bill's success.
An Act Concerning Insurance Market Conduct And Insurance Licensing, The Insurance Department's Technical Corrections And Other Revisions To The Insurance Statutes And Captive Insurance.