Bill Text: HI SB2455 | 2012 | Regular Session | Introduced


Bill Title: Kupuna Caucus; Task Force; Whole Life Insurance Policies; Long-Term Care Benefits; Long-Term Care Payments; Long-Term Care Commission; Appropriation

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Introduced - Dead) 2012-01-27 - (S) Re-Referred to CPN/HMS, WAM. [SB2455 Detail]

Download: Hawaii-2012-SB2455-Introduced.html

THE SENATE

S.B. NO.

2455

TWENTY-SIXTH LEGISLATURE, 2012

 

STATE OF HAWAII

 

 

 

 

 

 

A BILL FOR AN ACT

 

 

Relating to life insurance policies.

 

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 


     SECTION 1.  The legislature finds that although the cost of long-term care services is rising, more individuals have term life insurance policies, which end when people leave their job or retire, instead of private long-term care insurance.  Factors such as cost, convenience, and desire to protect growing families, may motivate individuals to buy life insurance over long-term care insurance.

     The legislature also finds that according to the American Council of Life Insurers, Hawaii had more than 709,000 in-force life insurance policies in 2009, compared to 77,344 individuals covered by long-term care insurance in 2010.  Approximately only five per cent of the State's population has long-term care insurance.

     The legislature further finds that despite the infrequent use of viatical settlements and accelerated death benefits in life insurance policies, these options should be studied as possible solutions and assessed for their potential as funding sources for long-term care services.

     The purpose of this Act is to establish a task force to assess and make recommendations regarding the use of viatical settlements and accelerated death benefits as means of funding long-term care.

     SECTION 2.  (a)  The insurance commissioner shall convene a task force within thirty days after the effective date of this Act to assess and make recommendations regarding the following issues:

     (1)  The feasibility and benefits of using viatical settlements as funding sources to fund for long-term care needs, including:

         (A)  The review of the current Hawaii insurance code to identify and recommend ways to eliminate unnecessary barriers, if any, for viatical settlements;

         (B)  The feasibility of establishing a regulatory oversight system for viatical settlements; and

         (C)  The establishment of a regulatory oversight system, if found feasible, including the appropriate agency to have oversight, examination process, licensing process, and standards for the sale of viatical settlements by third parties; and

     (2)  The feasibility and benefits of mandating life insurance companies to include an offer of accelerated death benefits in their standard policies, including:

         (A)  Whether a standard of rating the option of accelerated death benefits should be included;

         (B)  The feasibility of mandating accelerated death benefits as a rider that can be applied to existing policies; and

         (C)  Minimum requirements for payout under accelerated death benefits.

     (b)  The task force shall be chaired by the insurance commissioner and be composed of six individuals from the long-term care community and insurance community, three of whom shall be selected by the senate president and three of whom shall be selected by the speaker of the house.

     (c)  In carrying out its duties under this section, the task force may request staff assistance from the department of commerce and consumer affairs, the department of health, the department of human services, and other appropriate state and county executive agencies.

     (d)  The members of the task force shall serve without compensation, but shall be reimbursed for expenses, including travel expenses, necessary for the performance of their duties.

     (e)  The insurance commissioner shall submit a report of the findings and activities of the task force, including recommendations and proposed legislation, to the legislature no later than twenty days prior to the convening of the 2013 regular session.

     (f)  The task force shall be dissolved on June 30, 2013.

     SECTION 3.  There is appropriated out of the general revenues of the State of Hawaii the sum of $           or so much thereof as may be necessary for fiscal year 2012-2013 for the establishment and operations of the task force.

     The sum appropriated shall be expended by the department of commerce and consumer affairs for the purposes of this Act.

     SECTION 4.  This Act shall take effect on July 1, 2012.

 

INTRODUCED BY:

_____________________________

 

 


 


 

Report Title:

Kupuna Caucus; Task Force; Whole Life Insurance Policies; Long-Term Care Benefits; Long-Term Care Payments; Long-Term Care Commission; Appropriation

 

Description:

Establishes a task force to determine the feasibility of using viatical settlements and accelerated death benefits as potential funding sources for long-term care services.

 

 

 

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.

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