81R5824 PMO-D
By: Ellis S.B. No. 963
A BILL TO BE ENTITLED
AN ACT
relating to rates for long-term care insurance premiums.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 1651.055(a), Insurance Code, is amended
to read as follows:
(a) The commissioner shall adopt rules to stabilize
long-term care premium rates by:
(1) ensuring that:
(A) initial rates for long-term care benefit plan
forms are adequate; [and]
(B) rates are based on credible Texas experience
and are established without regard to rates charged or approved in
another state; and
(C) any rate schedule increases for long-term
care benefit plans made after issuance of the plans are justified,
adequate, and reasonable in relation to benefits provided to plan
holders;
(2) requiring any appropriate plan terms;
(3) imposing penalties on insurers or other entities
subject to this chapter that violate a rule adopted under this
section; and
(4) protecting plan holders affected by a rate
schedule increase.
SECTION 2. This Act applies only to an insurance policy or
contract or evidence of coverage that is delivered, issued for
delivery, or renewed on or after January 1, 2010. An insurance
policy or contract or evidence of coverage delivered, issued for
delivery, or renewed before January 1, 2010, is governed by the law
as it existed immediately before the effective date of this Act, and
that law is continued in effect for that purpose.
SECTION 3. This Act takes effect September 1, 2009.