Connecticut Senate Bill SB00209

Connecticut 2021 Regular Session

• Introduced: 1/22/21
• Refer: 1/22/21

Caption

An Act Requiring A Review Of The Premium Rate Adjustment Process For Long-term Care Insurance Policies.

Impact

The implementation of SB00209 would introduce a structured review process for insurance companies regarding how they adjust premiums for long-term care insurance. This measure is expected to provide better oversight and possibly lead to more stable rates for consumers. By reviewing these adjustments, regulators may be able to mitigate drastic price hikes, ensuring policyholders can afford their insurance without the fear of escalating costs associated with long-term care.

Summary

Bill SB00209 aims to address rising costs associated with long-term care insurance by mandating a review of the premium rate adjustment process for such policies. Introduced by Senator Formica, the bill comes in response to significant increases in premiums that have been observed over the past two years, impacting many policyholders who rely on long-term care insurance for their future needs. The purpose of the bill is to ensure that the process of adjusting premiums is transparent and adequately reviewed, with the intention of protecting consumers from sudden or excessive rate increases.

Contention

While the bill is largely seen as a positive step towards consumer protection, there may be contention regarding the potential impact on insurance providers. Some stakeholders may argue that stricter review protocols could limit flexibility in adjusting rates according to the evolving landscape of long-term care needs and costs. Furthermore, there could be concerns from the insurance industry about how these reviews might affect their financial stability and operational costs, creating a balance between consumer protection and market viability.