Bill Text: NY S04327 | 2021-2022 | General Assembly | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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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

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                STATE OF NEW YORK
        ________________________________________________________________________

                                         4327--A

                               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

        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 two new  subparagraphs  (G)  and  (H)  are
     4  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) A written statement as to the anticipated good faith increases  of
    14  premium  rates  for  such policy or certificate over the next ten years.
    15  Such statement shall include a list of past premium rate  increases  for
    16  such policy or certificate over the previous ten years, or if such poli-
    17  cy  or  certificate  was  not  offered over the previous ten years, past
    18  premium rate increases for similar policies  or  certificates  over  the
    19  previous ten years; and
    20    (H)  The right of the prospective insured to submit public comments on
    21  any rate filing or application regarding premium rates  on  the  depart-
    22  ment's website.

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD09388-03-1
        S. 4327--A                          2

     1    §  2.  Paragraph  3 of subsection (f) of section 1117 of the insurance
     2  law, as added by chapter 245 of the laws of 1986, is amended to read  as
     3  follows:
     4    (3)  the  premium  rates  for  the  long term care plan are reasonably
     5  related to the benefits provided, [and] are self-supporting, and are  in
     6  the best interests of policyholders and certificate holders; and
     7    §  3. Section 1117 of the insurance law is amended by adding three new
     8  subsections (h), (i) and (j) to read as follows:
     9    (h) Whenever an insurer submits a rate filing or  application  to  the
    10  superintendent  to  increase or decrease premium rates for any policy or
    11  certificate subject to this section, the  superintendent  shall  post  a
    12  public  notice summarizing the rate filing or application on the depart-
    13  ment's website within seven days. The superintendent shall provide for a
    14  process for the public to provide comments on such rate filing or appli-
    15  cation electronically or in writing for a period of  thirty  days  after
    16  such public notice is posted on the department's website.
    17    (i)  The superintendent, upon rendering a decision regarding approval,
    18  disapproval or modification of a rate filing or application, shall issue
    19  a public notice of such decision. Such written decision and notice shall
    20  be made publicly available on the department's website no later than the
    21  date on which the rate filing or application is  approved,  disapproved,
    22  or modified. Such notification shall include:
    23    (1)  a  summary of the determinations made by the department regarding
    24  the approval, disapproval or modification of such rate filing or  appli-
    25  cation, and
    26    (2)  a  statement  with relevant detail as to why the approval, disap-
    27  proval or modification of the proposal is in the best interests  of  the
    28  policyholders and certificate holders.
    29    (j) Upon receipt by an authorized insurer, corporation, health mainte-
    30  nance   organization   or  fraternal  benefit  society  covered  by  the
    31  provisions of this section of a  decision  by  the  superintendent  with
    32  respect  to a rate filing application with the department, such insurer,
    33  corporation, health maintenance organization or fraternal benefit socie-
    34  ty shall notify policyholders and certificate holders of such  decision.
    35  Such notification shall include:
    36    (1) a description of such decision;
    37    (2)  a  written  statement conforming to the requirements set forth in
    38  subparagraph (G) of paragraph six of subsection (b) of this section; and
    39    (3) aggregated and anonymized data showing actions taken  by  past  or
    40  current  policyholders  and certificate holders, segmented by age group,
    41  in response to proposed rate increases for similar policies and  certif-
    42  icates. Such data regarding such actions shall include but not be limit-
    43  ed  to the following actions taken by such past or current policyholders
    44  and certificate holders:
    45    (A) letting a policy or certificate lapse;
    46    (B) decreasing policy or certificate benefits; and
    47    (C) accepting the proposed rate increases.
    48    § 4. This act shall take effect immediately.