Senate File 2164

                                       SENATE FILE       
                                       BY  WARNSTADT


    Passed Senate, Date               Passed House,  Date             
    Vote:  Ayes        Nays           Vote:  Ayes        Nays         
                 Approved                            

                                      A BILL FOR

  1 An Act to prohibit long=term care insurance policies from
  2    requiring payment of premiums exceeding the lifetime maximum
  3    benefit amount of the policy.
  4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  5 TLSB 5697XS 80
  6 kk/cf/24

PAG LIN

  1  1    Section 1.  Section 514G.7, subsection 2, Code 2003, is
  1  2 amended by adding the following new paragraph:
  1  3    NEW PARAGRAPH.  e.  Require the payment of premiums in an
  1  4 amount which, in total, exceeds the lifetime maximum benefit
  1  5 amount of the policy.
  1  6    Sec. 2.  TRANSITION DIRECTIVE.  For any insured whose total
  1  7 amount of premiums paid exceeds the lifetime maximum benefit
  1  8 amount of the insured's long=term care insurance policy as of
  1  9 the effective date of this Act, the lifetime maximum benefit
  1 10 amount in the policy shall either be increased to at least
  1 11 equal the amount of total premiums paid by the insured or the
  1 12 difference shall be refunded to the insured.
  1 13                           EXPLANATION
  1 14    This bill prohibits long=term care insurance policies from
  1 15 containing provisions which require an insured to pay premiums
  1 16 in an amount which, in total, exceeds the lifetime maximum
  1 17 benefit amount of the policy.  Those policies in existence
  1 18 prior to the effective date of the bill which have resulted in
  1 19 the amount of premiums paid exceeding the amount of the
  1 20 lifetime maximum benefit amount shall be amended to increase
  1 21 the lifetime maximum benefit amount to at least equal the
  1 22 amount of total premiums paid by the insured or the insurer
  1 23 shall refund the amount of premiums paid in excess of the
  1 24 lifetime maximum benefit amount.
  1 25 LSB 5697XS 80
  1 26 kk/cf/24
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