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General Assembly Raised Bill No. 1269
January Session, 2025
LCO No. 4286
Referred to Committee on INSURANCE AND REAL ESTATE
Introduced by:
(INS)
AN ACT CONCERNING LONG -TERM CARE INSURANCE.
Be it enacted by the Senate and House of Representatives in General
Assembly convened:
Section 1. (Effective from passage) Not later than February 1, 2026, the 1
Insurance Department shall prepare and submit a report, in accordance 2
with the provisions of section 11-4a of the general statutes, to the joint 3
standing committee of the General Assembly having cognizance of 4
matters relating to insurance. Such report shall include an evaluation of 5
an alternative pool for long-term care policyholders in excess of twenty 6
years. 7
Sec. 2. (NEW) (Effective January 1, 2026) The Insurance Department 8
shall hold a public hearing for long-term care premium rate increase 9
requests that exceed ten per cent. Any insurance company, fraternal 10
benefit society, hospital service corporation, medical service corporation 11
or health care center that requests such premium rate increase shall 12
provide each policyholder with advance written notice of the date and 13
time of such hearing not less than fourteen days in advance of such date. 14
Sec. 3. (NEW) (Effective January 1, 2026) No insurance company, 15
fraternal benefit society, hospital service corporation, medical service 16
corporation or health care center may deliver, issue for delivery, renew, 17
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continue or amend any long-term care policy in this state on or after 18
January 1, 2026, unless such insurance company, fraternal benefit 19
society, hospital service corporation, medical service corporation or 20
health care center provides written notice to an individual prior to the 21
purchase of any long-term care policy of the risk of future premium rate 22
increases. 23
Sec. 4. (NEW) (Effective January 1, 2026) In addition to the 24
requirements of sections 38a-501 and 38a-528 of the general statutes, no 25
insurance company, fraternal benefit society, hospital service 26
corporation, medical service corporation or health care center renewing 27
any long-term care policy in this state on or after January 1, 2026, shall 28
implement a premium rate increase that exceeds the most recent 29
calendar year average in the consumer price index for urban consumers, 30
as published by the United States Department of Labor, Bureau of Labor 31
Statistics, provided: (1) Such long-term care policy was initially 32
purchased by the policyholder on or before December 31, 1985; and (2) 33
the policyholder of such long-term care policy has (A) attained the age 34
of eighty, or (B) paid a maximum lifetime premium rate increase of not 35
less than four hundred per cent. For the purposes of this section, "long-36
term care policy" has the same meaning as provided in section 38a-501 37
or 38a-528 of the general statutes, as applicable. 38
Sec. 5. Section 38a-458 of the general statutes is repealed and the 39
following is substituted in lieu thereof (Effective October 1, 2025): 40
(a) As used in this section, "long-term care rider" means any provision 41
or endorsement attached to any annuity contract or certificate that 42
provides long-term care benefits for qualified long-term care services as 43
provided in Section 7702B(c)(1) of the Internal Revenue Code of 1986, or 44
any subsequent corresponding internal revenue code of the United 45
States, as amended from time to time. 46
[(a)] (b) Provided such company is licensed for both life and health 47
insurance in this state, any life insurance company doing business in this 48
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state may issue life insurance policies or certificates, or riders or 49
endorsements thereto, that provide, within the terms and conditions of 50
the policy or certificate, long-term care benefits as described in section 51
38a-501 or 38a-528, except as specified in subsection [(c)] (d) of this 52
section. The Insurance Commissioner may adopt regulations, in 53
accordance with chapter 54, to implement the provisions of this section. 54
[(b)] (c) (1) Provided such company is licensed for both life and health 55
insurance in this state, any life insurance company doing business in this 56
state may issue annuity contracts or certificates, or riders, including 57
long-term care riders subject to the requirements of this subsection, and 58
any applicable requirement under this title or any regulation adopted 59
by the commissioner, in accordance with the provisions of chapter 54, 60
or endorsements thereto, that provide, within the terms and conditions 61
of the contract or certificate, long-term care benefits as described in 62
section 38a-501 or 38a-528, except as specified in subsection [(c)] (d) of 63
this section, and that waive the surrender charges under such contract 64
or accelerate a specified portion of the annuity value of such contract. 65
(2) Any life insurance company that issues any long-term care rider 66
that provides long-term care benefits pursuant to subdivision (1) of this 67
subsection shall provide each policyholder with a written disclosure for 68
such long-term care rider that includes (A) the cost of such long-term 69
care rider and any impact that such long-term care rider may have on 70
the annuity contract's benefits, including, but not limited to, reductions 71
in death benefits or surrender value, (B) any conditions or long-term 72
care benefit triggers required by state or federal law, including, but not 73
limited to, qualifying events, including an inability to perform at least 74
two activities of daily living or such conditions related to severe 75
cognitive impairment, and (C) any exclusions, limitations or 76
coordination of benefits with other insurance coverage. 77
(3) Any life insurance company that issues any long-term care rider 78
that provides long-term care benefits pursuant to subdivision (1) of this 79
subsection shall (A) comply with any applicable requirement under title 80
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38a concerning annuity contract suitability, long-term care insurance 81
and disclosure requirements, (B) comply with any applicable 82
requirements under federal law, including, but not limited to, tax-83
qualified long-term care policy requirements under the Health 84
Insurance Portability and Accountability Act of 1996, P.L. 104-191, as 85
amended from time to time, (C) include nonforfeiture benefits required 86
under this chapter and any applicable regulations adopted by the 87
commissioner in accordance with the provisions of chapter 54, and (D) 88
only provide coverage for long-term care rider benefits upon the 89
occurrence of a qualifying event, as defined in the policy and required 90
under title 38a, federal law and regulations adopted by the 91
commissioner in accordance with the provisions of chapter 54. 92
(4) Any policyholder may cancel, without penalty, any such long-93
term care rider issued pursuant to subdivision (1) of this subsection not 94
later than thirty days after receipt of such long-term care rider. 95
[(c)] (d) Long-term care benefits provided pursuant to subsection [(a)] 96
(b) or [(b)] (c) of this section shall not be subject to the requirements of 97
subsection (b) of section 38a-501 or subsection (b) of section 38a-528. 98
[(d)] (e) No insurance producer shall sell any such policy, certificate, 99
rider or endorsement unless the producer is licensed to sell both life and 100
health insurance in this state. 101
[(e)] (f) A life insurance policy or annuity contract with long-term care 102
benefits issued pursuant to this section may include a rider that 103
provides long-term care benefits that become payable upon exhaustion 104
of a specified amount of the death benefit under the life insurance policy 105
or a specified amount of the annuity value of the annuity contract. Any 106
elimination period limitations shall apply only to the acceleration phase 107
of the life insurance policy or annuity contract to which the rider is 108
attached. Such rider shall not contain an additional elimination period 109
and may calculate the waiver of premium from the time benefits are 110
payable under such rider. 111
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Sec. 6. Subsection (a) of section 38a-430 of the general statutes is 112
repealed and the following is substituted in lieu thereof (Effective October 113
1, 2025): 114
(a) No life insurance or annuity policy or contract shall be delivered 115
or issued for delivery to any person in this state, nor shall any 116
application, rider, including a long-term care rider, as defined in section 117
38a-458, as amended by this act, or endorsement be used in connection 118
therewith, until a copy of the form thereof shall have been filed with and 119
approved by the commissioner. The commissioner shall adopt 120
regulations, in accordance with the provisions of chapter 54, 121
establishing a procedure for review of such policies and contracts. The 122
commissioner shall issue an order disapproving the use of any such 123
form at any time if it does not comply with the requirements of law, or 124
if it contains a provision or provisions that are unfair or deceptive or 125
that encourage misrepresentation of the policy. The commissioner shall 126
specify the reason for the commissioner's disapproval. The provisions 127
of section 38a-19 shall apply to any such order issued by the 128
commissioner. 129
Sec. 7. (NEW) (Effective January 1, 2026, and applicable to taxable years 130
commencing on or after January 1, 2026) Any eligible taxpayer subject to 131
the tax under chapter 229 of the general statutes shall be allowed a credit 132
against the tax imposed under said chapter, other than the liability 133
imposed under section 12-707 of the general statutes, in an amount 134
equal to twenty per cent of the premiums paid by such eligible taxpayer 135
during the taxable year for a long-term care policy, as defined in section 136
38a-501 or 38a-528 of the general statutes, for which the eligible taxpayer 137
is the insured. As used in this section, (1) "eligible taxpayer" means any 138
resident of this state with a federal adjusted gross income of less than 139
two hundred thousand dollars, and (2) "resident of this state" has the 140
same meaning as provided in section 12-701 of the general statutes. 141
Sec. 8. (Effective from passage) Not later than February 1, 2026, the 142
Insurance Department shall prepare and submit a report, in accordance 143
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with the provisions of section 11-4a of the general statutes, to the joint 144
standing committee of the General Assembly having cognizance of 145
matters relating to insurance. Such report shall include an evaluation of 146
the individual and group long-term care premium rate filing processes 147
established under sections 38a-501 and 38a-528 of the general statutes. 148
This act shall take effect as follows and shall amend the following
sections:
Section 1 from passage New section
Sec. 2 January 1, 2026 New section
Sec. 3 January 1, 2026 New section
Sec. 4 January 1, 2026 New section
Sec. 5 October 1, 2025 38a-458
Sec. 6 October 1, 2025 38a-430(a)
Sec. 7 January 1, 2026, and
applicable to taxable years
commencing on or after
January 1, 2026
New section
Sec. 8 from passage New section
Statement of Purpose:
To: (1) Require the Insurance Department to conduct a study concerning
an alternative pool for long-term care policyholders; (2) require a public
hearing concerning long-term care premium rate increase requests in
excess of ten per cent; (3) require notice to individuals of the risk of long-
term care premium rate increases prior to the purchase of any long-term
care policy; (4) limit premium rate increases for certain long-term care
policies renewed in this state; (5) allow life insurance companies to issue
annuity contracts with long-term care riders; (6) implement a tax credit
for individuals who purchase long-term care policies; and (7) require
the Insurance Department to conduct a study of the long-term care
premium rate filing process.
[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.]