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--B
            Cal. No. 1161

                               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

        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

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD09388-06-1
        S. 4327--B                          2

     1    (H) The right of the prospective insured to submit public comments  on
     2  any  rate  filing  or application regarding premium rates on the depart-
     3  ment's website.
     4    §  2.  Paragraph  3 of subsection (f) of section 1117 of the insurance
     5  law, as added by chapter 245 of the laws of 1986, is amended to read  as
     6  follows:
     7    (3)  the  premium  rates  for  the  long term care plan are reasonably
     8  related to the benefits provided, [and] are self-supporting, and are  in
     9  the best interests of policyholders and certificate holders; and
    10    §  3. Section 1117 of the insurance law is amended by adding three new
    11  subsections (h), (i) and (j) to read as follows:
    12    (h) Whenever an insurer submits a rate filing or  application  to  the
    13  superintendent  to  increase or decrease premium rates for any policy or
    14  certificate subject to this section, the  superintendent  shall  post  a
    15  public  notice summarizing the rate filing or application on the depart-
    16  ment's website within seven days. The superintendent shall provide for a
    17  process for the public to provide comments on such rate filing or appli-
    18  cation electronically or in writing for a period of  thirty  days  after
    19  such public notice is posted on the department's website.
    20    (i)  The superintendent, upon rendering a decision regarding approval,
    21  disapproval or modification of a rate filing or application, shall issue
    22  a public notice of such decision. Such written decision and notice shall
    23  be made publicly available on the department's website no later than the
    24  date on which the rate filing or application is  approved,  disapproved,
    25  or modified. Such notification shall include:
    26    (1)  a  summary of the determinations made by the department regarding
    27  the approval, disapproval or modification of such rate filing or  appli-
    28  cation, and
    29    (2)  a  statement  with relevant detail as to why the approval, disap-
    30  proval or modification of the proposal is in the best interests  of  the
    31  policyholders and certificate holders.
    32    (j) Upon receipt by an authorized insurer, corporation, health mainte-
    33  nance   organization   or  fraternal  benefit  society  covered  by  the
    34  provisions of this section of a  decision  by  the  superintendent  with
    35  respect  to a rate filing application with the department, such insurer,
    36  corporation, health maintenance organization or fraternal benefit socie-
    37  ty shall notify policyholders and certificate holders of such  decision.
    38  Such notification shall include:
    39    (1) a description of such decision;
    40    (2)  a  written  statement conforming to the requirements set forth in
    41  subparagraph (G) of paragraph six of subsection (b) of this section; and
    42    (3) aggregated and anonymized data showing actions taken  by  past  or
    43  current  policyholders  and certificate holders, segmented by age group,
    44  in response to proposed rate increases for similar policies and  certif-
    45  icates. Such data regarding such actions shall include but not be limit-
    46  ed  to the following actions taken by such past or current policyholders
    47  and certificate holders:
    48    (A) letting a policy or certificate lapse;
    49    (B) decreasing policy or certificate benefits; and
    50    (C) accepting the proposed rate increases.
    51    § 4. The insurance law is amended by adding a new section 334 to  read
    52  as follows:
    53    §  334.  Minimum  loss  ratio standards; long term care insurance.  In
    54  establishing minimum benefit standards  for  long  term  care  insurance
    55  plans  pursuant  to  this  article, the superintendent shall ensure that
    56  minimum loss ratio standards are no less favorable to policyholders  and
        S. 4327--B                          3

     1  certificate  holders  than  those specified by the model regulations for
     2  long term care insurance as published by  the  National  Association  of
     3  Insurance Commissioners, as updated from time to time.
     4    § 5. This act shall take effect immediately.