STATE OF NEW YORK ________________________________________________________________________ 345--A 2023-2024 Regular Sessions IN ASSEMBLY January 6, 2023 ___________ Introduced by M. of A. BURDICK -- read once and referred to the Commit- tee on Insurance -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee AN ACT to amend the insurance law, in relation to requiring certain notices be posted and provided regarding long term care insurance policy changes The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Subparagraphs (E) and (F) of paragraph 6 of subsection (b) 2 of section 1117 of the insurance law, as amended by chapter 424 of the 3 laws of 2016, are amended and ten new subparagraphs (G), (H), (I), (J), 4 (K), (L), (M), (N), (O) and (P) are added to read as follows: 5 (E) A graphic demonstration of the maximum daily nursing home benefit 6 level provided by the policy or certificate, and the impact that the 7 selection of any inflation protection options would have on such maximum 8 daily nursing home benefit level; [and] 9 (F) The right of the prospective insured, upon attaining the age of 10 sixty-five years, to designate a third party who will receive a copy of 11 any notices of nonpayment of premiums due or notice of cancellation for 12 nonpayment of premiums that is sent to the prospective insured[.]; 13 (G) (i) A written statement as to whether the insurer anticipates 14 requesting increases of premium rates for such policy or certificate 15 over the next ten years; and 16 (ii) A list of past premium rate increases for such policy or certif- 17 icate over the previous ten years, or if such policy or certificate was 18 not offered over the previous ten years, past premium rate increases for 19 similar policies or certificates over the previous ten years; 20 (H) Directions on how to obtain information about the department's 21 review of any rate filing or application, contact information for the 22 department, and information on how to contact the insurer for more 23 information; EXPLANATION--Matter in italics (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD01132-03-3
A. 345--A 2 1 (I) Whether or not there is an initial period in which rates will not 2 change, and if so, when that time period expires; 3 (J) A description of whether or not the premium may change, and if so, 4 the circumstances under which any such premium changes could occur, 5 including whether the department must approve such changes; 6 (K) Whether the policy contains provisions providing for a refund or 7 partial refund of premium upon the surrender of the policy, and if such 8 provisions exist, provide a description of their terms; 9 (L) A description of the options policyholders will have to mitigate 10 any future premium increases; 11 (M) A description of the options policyholders will have should the 12 premiums increase, and the policyholder deems it in their best interest 13 to surrender the policy; 14 (N) A statement that the policyholder will be given at least sixty 15 days notice before any premium change takes effect; 16 (O) A statement that if the company seeks to increase the premium, the 17 department will post notice of the rate filing on its website prior to 18 any determination by the department; and 19 (P) The right of the prospective insured to submit public comments on 20 any rate filing or application regarding premium rates on the depart- 21 ment's website. 22 § 2. Paragraph 3 of subsection (f) of section 1117 of the insurance 23 law, as added by chapter 245 of the laws of 1986, is amended to read as 24 follows: 25 (3) (A) the premium rates for the long term care plan are reasonably 26 related to the benefits provided, [and] are self-supporting, and are in 27 the best interests of policyholders and certificate holders. 28 (B) "Best interests of policyholders and certificate holders" for the 29 purposes of this paragraph shall mean that the premium rate increase is 30 sufficient to cover anticipated costs under moderately adverse experi- 31 ence and that the premium rate schedule is reasonably expected to be 32 sustainable over the life of the policy or certificate with no future 33 premium increase anticipated; and 34 § 3. Section 1117 of the insurance law is amended by adding four new 35 subsections (h), (i), (j) and (k) to read as follows: 36 (h) The department shall post on its website information describing 37 the process that it uses in reviewing and approving premium rates for 38 policies or contracts of long term care insurance. 39 (i) Whenever an insurer submits a rate filing or application to the 40 superintendent to increase or decrease premium rates for any policy or 41 certificate subject to this section, the superintendent shall post a 42 public notice of the rate filing or application on the department's 43 website within seven days. The superintendent shall provide for a proc- 44 ess for the public to provide comments on such rate filing or applica- 45 tion electronically or in writing for a period of thirty days after such 46 public notice is posted on the department's website. 47 (j) The superintendent, upon rendering a decision regarding approval, 48 disapproval or modification of a rate filing or application, shall issue 49 a public notice of such decision. Such written decision and notice shall 50 be made publicly available on the department's website no later than the 51 date on which the rate filing or application is approved, disapproved, 52 or modified. Such notification shall include: 53 (1) a summary of the determinations made and considerations used by 54 the department regarding the approval, disapproval or modification of 55 such rate filing or application, and
A. 345--A 3 1 (2) a statement with relevant detail as to why the approval, disap- 2 proval or modification of the proposal is consistent with paragraph 3 three of subsection (f) of this section. 4 (k) Upon receipt by an authorized insurer, corporation, health mainte- 5 nance organization or fraternal benefit society covered by the 6 provisions of this section of an approval or modification decision by 7 the superintendent with respect to a rate filing application with the 8 department, such insurer, corporation, health maintenance organization 9 or fraternal benefit society shall notify policyholders and certificate 10 holders of such decision within forty-five days and in no event later 11 than sixty days prior to the effective date of the premium rate 12 increase. Such notification shall include: 13 (1) a description of such decision; and 14 (2) a written statement conforming to the requirements set forth in 15 subparagraph (G) of paragraph six of subsection (b) of this section. 16 § 4. The insurance law is amended by adding a new section 334 to read 17 as follows: 18 § 334. Minimum loss ratio standards; long term care insurance. In 19 establishing minimum benefit standards for long term care insurance 20 plans pursuant to this article, the superintendent shall ensure that 21 minimum loss ratio standards are no less favorable to policyholders and 22 certificate holders than those specified by the model regulations for 23 long term care insurance as published by the National Association of 24 Insurance Commissioners, as updated from time to time. 25 § 5. This act shall take effect on the one hundred eightieth day after 26 it shall have become a law, and shall apply to any rate filing submitted 27 on or after such date.