LCO No. 4537 1 of 2
General Assembly Raised Bill No. 7264
January Session, 2019
LCO No. 4537
Referred to Committee on INSURANCE AND REAL ESTATE
Introduced by:
(INS)
AN ACT CONCERNING LO NG-TERM CARE INSURANCE PREMIUM
RATE INCREASES.
Be it enacted by the Senate and House of Representatives in General
Assembly convened:
Section 1. Subparagraph (A) of subdivision (2) of subsection (b) of 1
section 38a-501 of the general statutes is repealed and the following is 2
substituted in lieu thereof (Effective October 1, 2019): 3
(2) (A) Any insurance company, fraternal benefit society, hospital 4
service corporation, medical service corporation or health care center 5
that files a rate filing for an increase in premium rates for a long-term 6
care policy that is for twenty per cent or more shall spread the increase 7
over a period of not less than (i) three years for a rate filed prior to 8
October 1, 2019, and (ii) five years for a rate filed on or after October 1, 9
2019. Such company, society, corporation or center shall use a periodic 10
rate increase that is actuarially equivalent to a single rate increase and 11
a current interest rate for the period chosen. 12
Sec. 2. Subparagraph (A) of subdivision (2) of subsection (b) of 13
section 38a-528 of the general statutes is repealed and the following is 14 Raised Bill No. 7264
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substituted in lieu thereof (Effective October 1, 2019): 15
(2) (A) Any insurance company, fraternal benefit society, hospital 16
service corporation, medical service corporation or health care center 17
that files a rate filing for an increase in premium rates for a long-term 18
care policy that is for twenty per cent or more shall spread the increase 19
over a period of not less than (i) three years for a rate filed prior to 20
October 1, 2019, and (ii) five years for a rate filed on or after October 1, 21
2019. Such company, society, corporation or center shall use a periodic 22
rate increase that is actuarially equivalent to a single rate increase and 23
a current interest rate for the period chosen. 24
This act shall take effect as follows and shall amend the following
sections:
Section 1 October 1, 2019 38a-501(b)(2)(A)
Sec. 2 October 1, 2019 38a-528(b)(2)(A)
Statement of Purpose:
To require insurers that file rate increases of twenty per cent or more
for long-term care insurance policies to spread such increases over not
less than five years.
[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.]