Connecticut Senate Bill SB00013

Connecticut 2014 Regular Session

• Introduced: 2/5/14
• Refer: 2/5/14

Caption

An Act Requiring Public Comment For Certain Long-term Care Insurance Policy Rate Increase Requests.

Impact

The potential impact of SB00013 on state laws includes a necessary shift toward greater accountability and transparency in the long-term care insurance industry. By requiring public comment prior to substantial rate increases, the bill aims to protect consumers—especially those who rely on long-term care—by ensuring their voices are heard. The implications of this bill could result in more equitable insurance practices, possibly discouraging excessive rate hikes that may impose financial strain on policyholders.

Summary

SB00013 is an Act Requiring Public Comment For Certain Long-term Care Insurance Policy Rate Increase Requests. The bill mandates that any insurance company seeking to increase long-term care insurance policy rates by more than ten percent must hold a public symposium prior to the approval of such rate increase. This symposium is designed to allow for input from the public, which the Insurance Commissioner must consider before making a decision on the rate adjustment. This legislative measure aims to increase transparency in the insurance industry, particularly in a sector that significantly affects elderly residents and their families.

Contention

However, there are notable points of contention surrounding SB00013. Proponents argue that the bill is essential for consumer protection, aiming to prevent insurance companies from unilaterally deciding on significant fee increases without oversight. Critics, on the other hand, may argue that the additional regulatory requirements could slow down the approval process for necessary changes in policy rates, thereby impacting the insurance providers’ ability to respond quickly to market conditions. This tension illustrates the broader debate regarding the balance between consumer protection and business operational freedoms.