By: Ellis S.B. No. 963
Substitute the following for S.B. No. 963:
By: Smithee C.S.S.B. No. 963
A BILL TO BE ENTITLED
AN ACT
relating to regulation of premium rates for long-term care
insurance.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter B, Chapter 1651, Insurance Code, is
amended by adding Section 1651.056 to read as follows:
Sec. 1651.056. REVIEW; APPROVAL OR DISAPPROVAL OF PREMIUM
RATES. (a) A long-term care premium rate may not be used until the
rate has been filed with the department and approved by the
commissioner.
(b) The commissioner may disapprove a long-term care
premium rate that is not actuarially justified or does not comply
with standards established under this chapter or adopted by rule by
the commissioner.
(c) An insurer who obtains the commissioner's approval of an
increase of a long-term care premium rate under Subsection (a)
shall:
(1) notify policyholders of the scheduled rate
increase at least 45 days prior to the date that the policyholder is
required to make a premium payment at the increased rate; and
(2) provide contingent nonforfeiture benefits
consistent with nationally recognized models and rules adopted by
the commissioner.
SECTION 2. This Act applies to any rate increase
implemented on or after September 1, 2009.
SECTION 3. This Act takes effect September 1, 2009.