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 commissioner may shall 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