Bill Text: HI SB3061 | 2012 | Regular Session | Introduced
Bill Title: Insurance; Accelerated Death Benefits; Required Provisions
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2012-01-31 - (S) The committee on HMS deferred the measure. [SB3061 Detail]
Download: Hawaii-2012-SB3061-Introduced.html
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THE SENATE |
S.B. NO. |
3061 |
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TWENTY-SIXTH LEGISLATURE, 2012 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
relating to insurance.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. Section 431:10H-104, Hawaii Revised Statutes, is amended by adding a new definition to be appropriately inserted and to read as follows:
""Accelerated death benefit" means a provision in a life insurance policy that allows for payment of some or all of the death proceeds while the applicant is still alive and in need of care because of a serious medical condition that could result in death within six to twenty-four months, permanent confinement in a health care institution, or a severe chronic illness."
SECTION 2. Section 431:10H-114, Hawaii Revised Statutes, is amended to read as follows:
"§431:10H-114 Life insurance policies offering long-term care benefits. (a) Any life insurance policy delivered or issued for delivery in this State shall include an accelerated death benefits provision.
[(a)] (b) At the time of policy
delivery, a policy summary shall be delivered for an individual life insurance
policy that provides long-term care benefits within the policy or by rider. In
the case of direct response solicitations, the insurer shall deliver the policy
summary upon the applicant's request, but regardless of the request shall make
delivery no later than at the time of policy delivery. In addition to
complying with all applicable requirements, the policy summary shall also
include:
(1) An explanation of how the long-term care benefit interacts with other components of the policy, including deductions from death benefits;
(2) An illustration of the amount of benefits, the length of benefit, and the guaranteed lifetime benefits if any, for each covered person;
(3) Any exclusions, reductions, and limitations on benefits of long-term care;
(4) A statement that any long-term care inflation protection option required by section 431:10H-220 is not available under this policy;
(5) If applicable to the policy type, the summary shall also include a disclosure of the effects of exercising other rights under the policy, a disclosure of guarantees related to long-term care costs of insurance charges, and current and projected maximum lifetime benefits; and
(6) The provisions of the policy summary listed above may be incorporated into a basic illustration required to be delivered or into the life insurance policy summary that is required to be delivered.
[(b)] (c) Any time a long-term
care benefit funded through a life insurance vehicle by the acceleration of the
death benefit is in benefit payment status, the policyholder maintains
ownership of the policy and may be required to make premium payments. During
the benefit payment status, a monthly report shall be provided to the
policyholder. The report shall include:
(1) Any long-term care benefits paid out during the month;
(2) An explanation of any changes in the policy, for
example death benefits or cash values, due to long-term care benefits being
paid out; [and]
(3) The amount of long-term care benefits existing or
remaining[.]; and
(4) The minimum requirements for payout.
[(c)] (d) Any policy advertised,
marketed, or offered as long-term care or nursing home insurance shall comply
with this article."
SECTION 3. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 4. This Act shall take effect upon its approval.
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INTRODUCED BY: |
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Report Title:
Insurance; Accelerated Death Benefits; Required Provisions
Description:
Requires life insurance policies that offer long-term care benefits to include an accelerated death benefits provision.
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
