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.
STATE OF NEW YORK
________________________________________________________________________
345--C
2023-2024 Regular Sessions
IN ASSEMBLY
January 6, 2023
___________
Introduced by M. of A. BURDICK, WEPRIN -- read once and referred to the
Committee on Insurance -- committee discharged, bill amended, ordered
reprinted as amended and recommitted to said committee -- again
reported from said committee with amendments, ordered reprinted as
amended and recommitted to said committee -- reported and referred to
the Committee on Rules -- Rules Committee discharged, bill amended,
ordered reprinted as amended and recommitted to the Committee on Rules
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 indicating that such policy or certificate
14 may be subject to future premium rate increases and that such rate
15 increases shall be subject to the approval or modification of the super-
16 intendent; and
17 (ii) A list of past premium rate increases for such policy or certif-
18 icate over the previous ten years, or if such policy or certificate was
19 not offered over the previous ten years, past premium rate increased for
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD01132-10-3
A. 345--C 2
1 policies or certificates that offer similar benefits over the previous
2 ten years;
3 (H) Directions on how to obtain information about the department's
4 review of any rate filing or application, contact information for the
5 department, and information on how to contact the authorized insurer,
6 corporation, health maintenance organization or fraternal benefit socie-
7 ty for more information;
8 (I) Whether or not there is a period in which rates will not change,
9 and if so, when that time period expires;
10 (J) A description of whether or not the premium may change, and if so,
11 the circumstances under which any such premium changes could occur,
12 including whether the department must approve such changes;
13 (K) Whether the policy contains provisions providing for a refund or
14 partial refund of premium upon the cancellation of the policy, and if
15 such provisions exist, provide a description of their terms;
16 (L) A description of the options policyholders will have to mitigate
17 any premium increases;
18 (M) A description of the options policyholders will have should the
19 premiums increase, and the policyholder deems it in their best interest
20 to cancel the policy;
21 (N) A statement that the policyholder will be given at least ninety
22 days notice before any premium change takes effect;
23 (O) A statement that if the authorized insurer, corporation, health
24 maintenance organization or fraternal benefit society seeks to increase
25 the premium rate, the department will post notice of the rate filing on
26 its website prior to 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. Section 1117 of the insurance law is amended by adding five new
31 subsections (h), (i), (j), (k), and (l) to read as follows:
32 (h) The department shall post on its website information describing
33 the process that it uses in reviewing and approving premium rates for
34 policies or contracts of long term care insurance.
35 (i) Whenever an authorized insurer, corporation, health maintenance
36 organization or fraternal benefit society submits a rate filing or
37 application to the superintendent to increase or decrease premium rates
38 for any policy or certificate subject to this section, the superinten-
39 dent shall post a public notice of the rate filing or application on the
40 department's website within fourteen days. The superintendent shall
41 provide for a process for the public to provide comments on such rate
42 filing or application electronically or in writing for a period of thir-
43 ty days after such public notice is posted on the department's website.
44 (j) The superintendent, upon rendering a decision regarding approval,
45 disapproval or modification of a rate filing or application, shall issue
46 a public notice of such decision. Such written decision and notice shall
47 be made publicly available on the department's website no later than the
48 date on which the rate filing or application is approved, disapproved,
49 or modified. Such notification shall include:
50 (1) a summary of the determinations made and considerations used by
51 the department regarding the approval, disapproval or modification of
52 such rate filing or application, and
53 (2) a statement with relevant detail as to why the approval, disap-
54 proval or modification of the proposal is consistent with paragraph
55 three of subsection (f) of this section.
A. 345--C 3
1 (k) Upon receipt by an authorized insurer, corporation, health mainte-
2 nance organization or fraternal benefit society covered by the
3 provisions of this section of an approval or modification decision by
4 the superintendent with respect to a rate filing application with the
5 department, such authorized insurer, corporation, health maintenance
6 organization or fraternal benefit society shall notify policyholders and
7 certificate holders of such decision no later than ninety days prior to
8 the effective date of the premium rate increase. Such notification
9 shall include:
10 (1) a description of such decision; and
11 (2) a written statement conforming to the requirements set forth in
12 subparagraph (G) of paragraph six of subsection (b) of this section.
13 (l) The provisions set forth in subparagraphs (G), (H), (I), (J), (K),
14 (L), (M), (N), (O), and (P) of paragraph six of subsection (b) of this
15 section shall not apply to policies or certificates that are exempt from
16 premium rate increases.
17 § 3. This act shall take effect on the first of January next succeed-
18 ing the date on which it shall have become a law, and shall apply to any
19 rate filing submitted on or after such date.
