An Act Concerning The Regulation Of Premium Rates On Long-term Care Insurance Policies.
Impact
If enacted, SB00435 would amend existing statutes under title 38a to introduce greater oversight of premium rate increases. A critical aspect of the bill is the requirement for the Insurance Department to hold public hearings when insurers propose rate hikes exceeding ten percent. This aims to provide consumers with a platform to voice their concerns and understand the rationale behind steep premium increases, securing a more consumer-oriented approach in the regulatory framework for long-term care insurance.
Summary
SB00435 focuses on the regulation of premium rates on long-term care insurance policies. The bill proposes significant changes intended to protect policyholders by requiring long-term care insurers to notify potential buyers about the risks of future premium rate increases. It also seeks to establish an alternative pool for policyholders who have held their policies for over twenty years, aimed at evaluating better options for those long-term policyholders. This is designed to enhance accountability and transparency within the insurance industry regarding long-term care.
Contention
The bill may face opposition from insurance companies concerned about the potential impact on their operational flexibility. Proponents argue that increased transparency and accountability are necessary to protect consumers, particularly the elderly and those living on fixed incomes, who may struggle with unexpected cost escalations in their long-term care policies. The balance between protecting consumers and allowing insurers the ability to manage their business practices will likely be a point of contention during discussions on the bill.
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.