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.
                                                                   LBD09388-10-2

        S. 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 issue

        S. 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.
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