Bill Text: NY S04327 | 2021-2022 | General Assembly | Amended
Bill Title: Requires the superintendent of financial services to make public any rate filing or application submitted by long term care insurance carriers; requires certain notices be provided to policyholders and certificate holders regarding premium rate increases; requires the superintendent ensure the proper standard for minimum ratio losses when establishing minimum benefit standards.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Engrossed - Dead) 2022-06-02 - referred to insurance [S04327 Detail]
Download: New_York-2021-S04327-Amended.html
STATE OF NEW YORK ________________________________________________________________________ 4327--C Cal. No. 347 2021-2022 Regular Sessions IN SENATE February 3, 2021 ___________ Introduced by Sen. MAYER -- read twice and ordered printed, and when printed to be committed to the Committee on Insurance -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee -- reported favorably from said committee, ordered to first and second report, amended on second report, ordered to a third reading, and to be reprinted as amended, retaining its place in the order of third reading -- recommitted to the Committee on Insur- ance in accordance with Senate Rule 6, sec. 8 -- reported favorably from said committee, ordered to first and second report, ordered to a third reading, amended and ordered reprinted, retaining its place in the order of third reading AN ACT to amend the insurance law, in relation to requiring certain notices be posted and provided regarding long term care insurance policy changes The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Subparagraphs (E) and (F) of paragraph 6 of subsection (b) 2 of section 1117 of the insurance law, as amended by chapter 424 of the 3 laws of 2016, are amended and ten new subparagraphs (G), (H), (I), (J), 4 (K), (L), (M), (N), (O) and (P) are added to read as follows: 5 (E) A graphic demonstration of the maximum daily nursing home benefit 6 level provided by the policy or certificate, and the impact that the 7 selection of any inflation protection options would have on such maximum 8 daily nursing home benefit level; [and] 9 (F) The right of the prospective insured, upon attaining the age of 10 sixty-five years, to designate a third party who will receive a copy of 11 any notices of nonpayment of premiums due or notice of cancellation for 12 nonpayment of premiums that is sent to the prospective insured[.]; 13 (G) (i) A written statement as to whether the insurer anticipates 14 requesting increases of premium rates for such policy or certificate 15 over the next ten years; and EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD09388-10-2S. 4327--C 2 1 (ii) A list of past premium rate increases for such policy or certif- 2 icate over the previous ten years, or if such policy or certificate was 3 not offered over the previous ten years, past premium rate increases for 4 similar policies or certificates over the previous ten years; 5 (H) Directions on how to obtain information about the department's 6 review of any rate filing or application, contact information for the 7 department, and information on how to contact the insurer for more 8 information; 9 (I) Whether or not there is an initial period in which rates will not 10 change, and if so, when that time period expires; 11 (J) A description of whether or not the premium may change, and if so, 12 the circumstances under which any such premium changes could occur, 13 including whether the department must approve such changes; 14 (K) Whether the policy contains provisions providing for a refund or 15 partial refund of premium upon the surrender of the policy, and if such 16 provisions exist, provide a description of their terms; 17 (L) A description of the options policyholders will have to mitigate 18 any future premium increases; 19 (M) A description of the options policyholders will have should the 20 premiums increase, and the policyholder deems it in their best interest 21 to surrender the policy; 22 (N) A statement that the policyholder will be given at least sixty 23 days notice before any premium change takes effect; 24 (O) A statement that if the company seeks to increase the premium, the 25 department will post notice of the rate filing on its website prior to 26 any determination by the department; and 27 (P) The right of the prospective insured to submit public comments on 28 any rate filing or application regarding premium rates on the depart- 29 ment's website. 30 § 2. Paragraph 3 of subsection (f) of section 1117 of the insurance 31 law, as added by chapter 245 of the laws of 1986, is amended to read as 32 follows: 33 (3) (A) the premium rates for the long term care plan are reasonably 34 related to the benefits provided, [and] are self-supporting, and are in 35 the best interests of policyholders and certificate holders. 36 (B) "Best interests of policyholders and certificate holders" for the 37 purposes of this paragraph shall mean that the premium rate increase is 38 sufficient to cover anticipated costs under moderately adverse experi- 39 ence and that the premium rate schedule is reasonably expected to be 40 sustainable over the life of the policy or certificate with no future 41 premium increase anticipated; and 42 § 3. Section 1117 of the insurance law is amended by adding four new 43 subsections (h), (i), (j) and (k) to read as follows: 44 (h) The department shall post on its website information describing 45 the process that it uses in reviewing and approving premium rates for 46 policies or contracts of long term care insurance. 47 (i) Whenever an insurer submits a rate filing or application to the 48 superintendent to increase or decrease premium rates for any policy or 49 certificate subject to this section, the superintendent shall post a 50 public notice of the rate filing or application on the department's 51 website within seven days. The superintendent shall provide for a proc- 52 ess for the public to provide comments on such rate filing or applica- 53 tion electronically or in writing for a period of thirty days after such 54 public notice is posted on the department's website. 55 (j) The superintendent, upon rendering a decision regarding approval, 56 disapproval or modification of a rate filing or application, shall issueS. 4327--C 3 1 a public notice of such decision. Such written decision and notice shall 2 be made publicly available on the department's website no later than the 3 date on which the rate filing or application is approved, disapproved, 4 or modified. Such notification shall include: 5 (1) a summary of the determinations made and considerations used by 6 the department regarding the approval, disapproval or modification of 7 such rate filing or application, and 8 (2) a statement with relevant detail as to why the approval, disap- 9 proval or modification of the proposal is consistent with paragraph 10 three of subsection (f) of this section. 11 (k) Upon receipt by an authorized insurer, corporation, health mainte- 12 nance organization or fraternal benefit society covered by the 13 provisions of this section of an approval or modification decision by 14 the superintendent with respect to a rate filing application with the 15 department, such insurer, corporation, health maintenance organization 16 or fraternal benefit society shall notify policyholders and certificate 17 holders of such decision within forty-five days and in no event later 18 than sixty days prior to the effective date of the premium rate 19 increase. Such notification shall include: 20 (1) a description of such decision; and 21 (2) a written statement conforming to the requirements set forth in 22 subparagraph (G) of paragraph six of subsection (b) of this section. 23 § 4. The insurance law is amended by adding a new section 334 to read 24 as follows: 25 § 334. Minimum loss ratio standards; long term care insurance. In 26 establishing minimum benefit standards for long term care insurance 27 plans pursuant to this article, the superintendent shall ensure that 28 minimum loss ratio standards are no less favorable to policyholders and 29 certificate holders than those specified by the model regulations for 30 long term care insurance as published by the National Association of 31 Insurance Commissioners, as updated from time to time. 32 § 5. This act shall take effect on the one hundred eightieth day after 33 it shall have become a law, and shall apply to any rate filing submitted 34 on or after such date.