STATE OF NEW YORK ________________________________________________________________________ 2330--A Cal. No. 346 2023-2024 Regular Sessions IN SENATE January 19, 2023 ___________ Introduced by Sen. MAYER -- read twice and ordered printed, and when printed to be committed to the Committee on Insurance -- reported favorably from said committee, ordered to first and second report, ordered to a third reading, passed by Senate and delivered to the Assembly, recalled, vote reconsidered, restored to third reading, amended and ordered reprinted, retaining its place in the order of third reading 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; EXPLANATION--Matter in italics (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD01132-05-3
S. 2330--A 2 1 (H) Directions on how to obtain information about the department's 2 review of any rate filing or application, contact information for the 3 department, and information on how to contact the insurer for more 4 information; 5 (I) Whether or not there is an initial period in which rates will not 6 change, and if so, when that time period expires; 7 (J) A description of whether or not the premium may change, and if so, 8 the circumstances under which any such premium changes could occur, 9 including whether the department must approve such changes; 10 (K) Whether the policy contains provisions providing for a refund or 11 partial refund of premium upon the surrender of the policy, and if such 12 provisions exist, provide a description of their terms; 13 (L) A description of the options policyholders will have to mitigate 14 any future premium increases; 15 (M) A description of the options policyholders will have should the 16 premiums increase, and the policyholder deems it in their best interest 17 to surrender the policy; 18 (N) A statement that the policyholder will be given at least sixty 19 days notice before any premium change takes effect; 20 (O) A statement that if the company seeks to increase the premium, the 21 department will post notice of the rate filing on its website prior to 22 any determination by the department; and 23 (P) The right of the prospective insured to submit public comments on 24 any rate filing or application regarding premium rates on the depart- 25 ment's website. 26 § 2. Section 1117 of the insurance law is amended by adding four new 27 subsections (h), (i), (j) and (k) to read as follows: 28 (h) The department shall post on its website information describing 29 the process that it uses in reviewing and approving premium rates for 30 policies or contracts of long term care insurance. 31 (i) Whenever an insurer submits a rate filing or application to the 32 superintendent to increase or decrease premium rates for any policy or 33 certificate subject to this section, the superintendent shall post a 34 public notice of the rate filing or application on the department's 35 website within seven days. The superintendent shall provide for a proc- 36 ess for the public to provide comments on such rate filing or applica- 37 tion electronically or in writing for a period of thirty days after such 38 public notice is posted on the department's website. 39 (j) The superintendent, upon rendering a decision regarding approval, 40 disapproval or modification of a rate filing or application, shall issue 41 a public notice of such decision. Such written decision and notice shall 42 be made publicly available on the department's website no later than the 43 date on which the rate filing or application is approved, disapproved, 44 or modified. Such notification shall include: 45 (1) a summary of the determinations made and considerations used by 46 the department regarding the approval, disapproval or modification of 47 such rate filing or application, and 48 (2) a statement with relevant detail as to why the approval, disap- 49 proval or modification of the proposal is consistent with paragraph 50 three of subsection (f) of this section. 51 (k) Upon receipt by an authorized insurer, corporation, health mainte- 52 nance organization or fraternal benefit society covered by the 53 provisions of this section of an approval or modification decision by 54 the superintendent with respect to a rate filing application with the 55 department, such insurer, corporation, health maintenance organization 56 or fraternal benefit society shall notify policyholders and certificate
S. 2330--A 3 1 holders of such decision within forty-five days and in no event later 2 than sixty days prior to the effective date of the premium rate 3 increase. Such notification shall include: 4 (1) a description of such decision; and 5 (2) a written statement conforming to the requirements set forth in 6 subparagraph (G) of paragraph six of subsection (b) of this section. 7 § 3. This act shall take effect on the one hundred eightieth day after 8 it shall have become a law, and shall apply to any rate filing submitted 9 on or after such date.