Senate File 2093 - Introduced SENATE FILE 2093 BY SCHMITZ , RAGAN , BEALL , HECKROTH , DVORSKY , HORN , SENG , QUIRMBACH , HATCH , DEARDEN , FRAISE , GRONSTAL , KIBBIE , BLACK , JOCHUM , BOLKCOM , and DANDEKAR A BILL FOR An Act providing for standardized provisions and format and a 1 consumer guide for long-term care insurance policies and 2 including applicability provisions. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 5320ST (3) 83 av/nh

S.F. 2093 Section 1. Section 514G.105, Code 2009, is amended by adding 1 the following new subsections: 2 NEW SUBSECTION . 5A. Standard provisions and format. 3 a. The commissioner shall adopt rules establishing standard 4 provisions for terms and benefits required to be included in a 5 long-term care insurance policy advertised, marketed, offered, 6 delivered, or issued for delivery in this state. The rules 7 shall establish a standard format for such long-term care 8 insurance policies to facilitate ease of comparison of the 9 various policies by consumers. 10 b. The commissioner shall review each policy of long-term 11 care insurance prior to the policy being advertised, marketed, 12 offered, delivered, or issued for delivery in this state to 13 ensure that the policy complies with the requirements of this 14 subsection and rules adopted pursuant to this subsection. 15 NEW SUBSECTION . 7A. Consumer guide. 16 a. A consumer guide, as prescribed by the commissioner 17 by rule, shall be delivered to a prospective applicant 18 for long-term care insurance at the time of the initial 19 solicitation for coverage. 20 (1) In the case of producer solicitations, a producer shall 21 deliver the consumer guide to a prospective applicant prior to 22 the presentation of an application or enrollment form. 23 (2) In the case of direct response solicitations, the 24 consumer guide shall be presented in conjunction with any 25 application or enrollment form. 26 (3) In the case of a policy issued to a group as described 27 in section 514G.103, subsection 9, paragraph “a” , a consumer 28 guide is not required to be delivered to the applicant, 29 provided that the information described in paragraph “b” of this 30 subsection is contained in other enrollment materials provided. 31 Upon request such other enrollment materials shall be made 32 available to the commissioner. 33 b. The consumer guide shall include a description of the 34 standard terms, benefits, and format required for a long-term 35 -1- LSB 5320ST (3) 83 av/nh 1/ 2

S.F. 2093 care insurance policy in this state. The commissioner of 1 insurance may by reference adopt or permit the use of the 2 long-term care insurance consumer guide developed by the 3 national association of insurance commissioners, the blue 4 cross and blue shield association, or the health insurance 5 association of America, provided that the consumer guide that 6 is adopted or permitted to be used by reference meets all of 7 the requirements of this subsection. 8 Sec. 2. APPLICABILITY. This Act applies to long-term care 9 insurance policies advertised, marketed, offered, delivered, or 10 issued for delivery in this state on or after July 1, 2010. 11 EXPLANATION 12 This bill requires the commissioner of insurance to adopt 13 rules establishing standard provisions for terms and benefits 14 required to be included in a long-term care insurance policy 15 advertised, marketed, offered, delivered, or issued for 16 delivery in this state. The rules must establish a standard 17 format for such policies so that consumers can easily compare 18 the various policies offered. The commissioner is required to 19 review each policy of long-term care insurance to ensure that 20 the policy complies with these requirements. 21 The bill also requires the commissioner to adopt rules 22 concerning a consumer guide to be delivered to prospective 23 applicants for long-term care insurance at the time of 24 solicitation, application, or enrollment. The guide must 25 include a description of the required standard terms, benefits, 26 and format in long-term care insurance policies in this state. 27 The commissioner may by reference adopt or permit the use 28 of a consumer guide developed by the national association 29 of insurance commissioners, the blue cross and blue shield 30 association, or the health insurance association of America, so 31 long as the guide meets all the requirements of the bill. 32 The bill is applicable to long-term care insurance policies 33 advertised, marketed, offered, delivered, or issued for 34 delivery in this state on or after July 1, 2010. 35 -2- LSB 5320ST (3) 83 av/nh 2/ 2