House File 2113 - Introduced HOUSE FILE BY SWAIM and GASKILL Passed House, Date Passed Senate, Date Vote: Ayes Nays Vote: Ayes Nays Approved A BILL FOR 1 An Act relating to performance and disclosure standards for long= 2 term care insurance. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 5718HH 81 5 av/je/5 PAG LIN 1 1 Section 1. Section 514G.7, subsection 1, Code 2005, is 1 2 amended to read as follows: 1 3 1. a. RULES. The commissionermayshall adopt rules for 1 4 full and fair disclosure of the terms and benefits of a long= 1 5 term care insurance policy, including but not limited to rules 1 6 setting forth the manner, content, and required disclosures 1 7 for the sale of long=term care insurance policies, terms of 1 8 renewability, initial and subsequent conditions of 1 9 eligibility, nonduplication of coverage provisions, coverage 1 10 of dependents, preexisting conditions, termination of 1 11 insurance, probationary periods, limitations, exceptions, 1 12 reductions, elimination periods, requirements for replacement, 1 13 recurrent conditions, and definitions of terms. The rules 1 14 shall establish a standard format for long=term care insurance 1 15 policies offered in this state to facilitate comparison by 1 16 consumers of the various long=term care insurance policies 1 17 offered. 1 18 b. REVIEW OF POLICIES. The commissioner shall review and 1 19 approve the terms and benefits of a new policy of long=term 1 20 care insurance or an amendment to an existing policy of such 1 21 insurance before the new policy or amended policy is offered 1 22 in this state. The commissioner shall disapprove any new 1 23 policy or amended policy that contains misrepresentations, 1 24 unclear language, inadequate explanations, is otherwise 1 25 confusing or misleading to an applicant for such insurance, or 1 26 fails to comply with the requirements of this chapter. The 1 27 commissioner shall adopt rules as deemed necessary to 1 28 implement this subsection, in accordance with chapter 17A. 1 29 Sec. 2. Section 514G.7, Code 2005, is amended by adding 1 30 the following new subsection: 1 31 NEW SUBSECTION. 1A. REVIEW OF RATES. The commissioner 1 32 shall review and approve a proposed rate increase for long= 1 33 term care insurance before the proposed rate increase is 1 34 effective. The commissioner shall disapprove any rate 1 35 increase that is not reasonable under the circumstances. The 2 1 commissioner shall provide public notice of all proposed rate 2 2 increases for long=term care insurance prior to approval or 2 3 disapproval of the proposed rate increase. The commissioner 2 4 shall adopt rules as deemed necessary to implement this 2 5 subsection, in accordance with chapter 17A. 2 6 EXPLANATION 2 7 This bill relates to disclosure and performance standards 2 8 for long=term care insurance offered in the state. 2 9 The bill requires the commissioner of insurance to adopt 2 10 rules for full and fair disclosure of the terms and benefits 2 11 of long=term care insurance contracts offered in the state. 2 12 Currently, the commissioner is authorized, but not required to 2 13 adopt such rules. 2 14 The bill requires the commissioner to review and approve 2 15 the terms and benefits of a new policy of long=term care 2 16 insurance or an amendment to an existing policy of such 2 17 insurance before the new policy or amended policy is offered 2 18 in this state. The commissioner is required to disapprove any 2 19 new policy or amended policy that contains misrepresentations, 2 20 unclear language, inadequate explanations, is otherwise 2 21 confusing or misleading to an applicant for such insurance, or 2 22 fails to comply with the requirements of Code chapter 514G. 2 23 The commissioner is required to adopt rules to implement this 2 24 process in accordance with Code chapter 17A. 2 25 The bill requires the commissioner to adopt rules that 2 26 establish a standard format for long=term care insurance 2 27 policies to facilitate comparison by consumers of the various 2 28 long=term care insurance policies offered. 2 29 The bill requires the commissioner to review and approve a 2 30 proposed rate increase for long=term care insurance before the 2 31 rate increase is effective and to disapprove any rate increase 2 32 that is not reasonable under the circumstances. The bill also 2 33 requires the commissioner to provide public notice of all 2 34 proposed rate increases for long=term care insurance prior to 2 35 approval or disapproval of the proposed rate increase. The 3 1 commissioner is required to adopt rules to implement this 3 2 process in accordance with Code chapter 17A. 3 3 LSB 5718HH 81 3 4 av:nh/je/5