| 1 | 1 | | S.B. No. 963 |
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| 2 | 2 | | |
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| 3 | 3 | | |
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| 4 | 4 | | AN ACT |
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| 5 | 5 | | relating to regulation of premium rates for long-term care |
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| 6 | 6 | | insurance. |
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| 7 | 7 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 8 | 8 | | SECTION 1. Subchapter B, Chapter 1651, Insurance Code, is |
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| 9 | 9 | | amended by adding Section 1651.056 to read as follows: |
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| 10 | 10 | | Sec. 1651.056. REVIEW; APPROVAL OR DISAPPROVAL OF PREMIUM |
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| 11 | 11 | | RATES. (a) A long-term care premium rate may not be used until the |
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| 12 | 12 | | rate has been filed with the department and approved by the |
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| 13 | 13 | | commissioner. |
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| 14 | 14 | | (b) The commissioner may disapprove a long-term care |
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| 15 | 15 | | premium rate that is not actuarially justified or does not comply |
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| 16 | 16 | | with standards established under this chapter or adopted by rule by |
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| 17 | 17 | | the commissioner. |
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| 18 | 18 | | (c) An insurer who obtains the commissioner's approval of an |
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| 19 | 19 | | increase of a long-term care premium rate under Subsection (a) |
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| 20 | 20 | | shall: |
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| 21 | 21 | | (1) notify policyholders of the scheduled rate |
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| 22 | 22 | | increase at least 45 days prior to the date that the policyholder is |
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| 23 | 23 | | required to make a premium payment at the increased rate; and |
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| 24 | 24 | | (2) provide contingent nonforfeiture benefits |
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| 25 | 25 | | consistent with nationally recognized models and rules adopted by |
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| 26 | 26 | | the commissioner. |
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| 27 | 27 | | SECTION 2. This Act applies to any rate increase |
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| 28 | 28 | | implemented on or after September 1, 2009. |
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| 29 | 29 | | SECTION 3. This Act takes effect September 1, 2009. |
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| 30 | 30 | | ______________________________ ______________________________ |
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| 31 | 31 | | President of the Senate Speaker of the House |
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| 32 | 32 | | I hereby certify that S.B. No. 963 passed the Senate on |
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| 33 | 33 | | April 9, 2009, by the following vote: Yeas 31, Nays 0; and that |
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| 34 | 34 | | the Senate concurred in House amendment on May 28, 2009, by the |
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| 35 | 35 | | following vote: Yeas 31, Nays 0. |
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| 36 | 36 | | ______________________________ |
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| 37 | 37 | | Secretary of the Senate |
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| 38 | 38 | | I hereby certify that S.B. No. 963 passed the House, with |
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| 39 | 39 | | amendment, on May 20, 2009, by the following vote: Yeas 145, |
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| 40 | 40 | | Nays 0, one present not voting. |
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| 41 | 41 | | ______________________________ |
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| 42 | 42 | | Chief Clerk of the House |
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| 43 | 43 | | Approved: |
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| 44 | 44 | | ______________________________ |
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| 45 | 45 | | Date |
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| 46 | 46 | | ______________________________ |
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| 47 | 47 | | Governor |
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