Bill Text: CT SB00469 | 2011 | General Assembly | Comm Sub

Connecticut Senate Bill 469 (Prior Session Legislation)

Bill Title: An Act Requiring Certain Disclosures For Long-term Care Policies.

Spectrum: Bipartisan Bill

Status: (Engrossed - Dead) 2011-05-28 - House Calendar Number 557 [SB00469 Detail]

Download: Connecticut-2011-SB00469-Comm_Sub.html

General Assembly		*Substitute Bill No. 469*
*January Session, 2011*		_____SB00469INS___031711____

AN ACT REQUIRING CERTAIN DISCLOSURES FOR LONG-TERM CARE POLICIES.

Be it enacted by the Senate and House of Representatives in General Assembly convened:

Section 1. Subsection (c) of section 38a-501 of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2011):

(c) (1) No such company, society, corporation or center may deliver or issue for delivery any long-term care policy without providing, at the time of solicitation or application for purchase or sale of such coverage, full and fair written disclosure of the benefits and limitations of the policy.

(A) Such disclosure shall include:

(i) A statement that the policy may be subject to rate increases in the future;

(ii) An explanation of potential future premium rate revisions and the policyholder's option in the event of a premium rate revision;

(iii) The premium rate or rate schedule applicable to the applicant that will be in effect until a request is made by such company, society, corporation or center for an increase in such rate or rate schedule;

(iv) Information regarding each premium rate increase, if any, over the past ten years on such policy form or similar policy forms for this state or any other state, that identifies, at a minimum, (I) the policy forms for which premium rates have been increased, (II) the calendar years when each such policy form was available for purchase, and (III) the amount or percentage of each increase. The percentage may be expressed as a percentage of the premium rate prior to the increase or as minimum and maximum percentages if the rate increase is variable by rating characteristics; and

(v) A completed copy of Appendix F of Volume IV, Model 641-1 of the National Association of Insurance Commissioners' Long-Term Care Insurance Model Regulation.

(B) At the time such policy is executed, the policyholder shall initial a copy of the disclosure and the company, society, corporation or center shall retain such copy.

(2) If the offering for any long-term care policy includes an option for the elimination period specified in subdivision [(2)] (1) of subsection (a) of this section, the application form for such policy and the face page of such policy shall contain a clear and conspicuous disclosure that the irrevocable trust may not be sufficient to cover all costs during the elimination period.

Sec. 2. Subsection (c) of section 38a-528 of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2011):

(A) Such disclosure shall include:

(i) A statement that the policy may be subject to rate increases in the future;

(ii) An explanation of potential future premium rate revisions and the policyholder's or certificate holder's option in the event of a premium rate revision;

(iv) Information regarding each premium rate increase, if any, over the past ten years on such policy form or similar policy forms for this state or any other state, that identifies, at a minimum (I) the policy forms for which premium rates have been increased, (II) the calendar years when each such policy form was available for purchase, and (III) the amount or percentage of each increase. The percentage may be expressed as a percentage of the premium rate prior to the increase or as minimum and maximum percentages if the rate increase is variable by rating characteristics; and

(v) A completed copy of Appendix F of Volume IV, Model 641-1 of the National Association of Insurance Commissioners' Long-Term Care Insurance Model Regulation.

(B) At the time such policy is executed, the policyholder shall initial a copy of the disclosure and the company, society, corporation or center shall retain such copy.

(2) The provisions of this subsection shall not be applicable to: [(1)] (A) Any long-term care policy which is delivered or issued for delivery to one or more employers or labor organizations, or to a trust or to the trustees of a fund established by one or more employers or labor organizations, or a combination thereof, for employees or former employees or a combination thereof or for members or former members or a combination thereof, or the labor organizations; and [(2)] (B) noncontributory plans.

Sec. 3. Section 38a-458 of the general statutes is amended by adding subsection (e) as follows (Effective October 1, 2011):

(NEW) (e) Any life insurance policy with long-term care benefits issued pursuant to this section shall comply with the disclosure requirements set forth in subdivision (1) of subsection (c) of section 38a-501, as amended by this act.

Sec. 4. Section 38a-458a of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2011):

(a) Notwithstanding the provisions of sections 38a-430, 38a-481 and 38a-501, as amended by this act, or any regulation adopted pursuant to said sections, an insurer licensed for both life and health insurance in this state may combine the following coverages, by rider or otherwise, within a single-premium policy or contract: (1) Life or endowment insurance or annuity, survivorship annuity or pure endowment insurance; and (2) long-term care insurance.

(b) Any insurer that combines long-term care insurance coverage with other coverages, as set forth in subsection (a) of this section, shall comply with the disclosure requirements set forth in subdivision (1) of subsection (c) of section 38a-501, as amended by this act.


This act shall take effect as follows and shall amend the following sections:
Section 1	October 1, 2011	38a-501(c)
Sec. 2	October 1, 2011	38a-528(c)
Sec. 3	October 1, 2011	38a-458
Sec. 4	October 1, 2011	38a-458a