HF 2163 (LSB 5984HH (3) 83)

HOUSE FILE 2163

BY  FORD

A BILL FOR

An Act relating to a consumer guide for long-term care insurance policies and including applicability provisions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 514G.105, Code 2009, is amended by adding the following new subsections:
   NEW SUBSECTION.  5A.  Standard provisions and format.
   a.  The commissioner shall adopt rules establishing standard provisions for terms and benefits required to be included in a long-term care insurance policy advertised, marketed, offered, delivered, or issued for delivery in this state. The rules shall establish a standard format for such long-term care insurance policies to facilitate ease of comparison of the various policies by consumers.
   b.  The commissioner shall review each policy of long-term care insurance prior to the policy being advertised, marketed, offered, delivered, or issued for delivery in this state to ensure that the policy complies with the requirements of this subsection and rules adopted pursuant to this subsection.
   NEW SUBSECTION.  7A.  Consumer guide.
   a.  A consumer guide, as prescribed by the commissioner by rule, shall be delivered to a prospective applicant for long-term care insurance at the time of the initial solicitation for coverage.
   (1)  In the case of producer solicitations, a producer shall deliver the consumer guide to a prospective applicant prior to the presentation of an application or enrollment form.
   (2)  In the case of direct response solicitations, the consumer guide shall be presented in conjunction with any application or enrollment form.
   (3)  In the case of a policy issued to a group as described in section 514G.103, subsection 9, paragraph “a”, a consumer guide is not required to be delivered to the applicant, provided that the information described in paragraph “b” of this subsection is contained in other enrollment materials provided. Upon request such other enrollment materials shall be made available to the commissioner.
   b.  The consumer guide shall include a description of the standard terms, benefits, and format required for a long-term care insurance policy in this state. The commissioner of insurance may by reference adopt or permit the use of the long-term care insurance consumer guide developed by the national association of insurance commissioners, the blue cross and blue shield association, or the health insurance association of America, provided that the consumer guide that is adopted or permitted to be used by reference meets all of the requirements of this subsection.
    Sec. 2.  APPLICABILITY.  This Act applies to long-term care insurance policies advertised, marketed, offered, delivered, or issued for delivery in this state on or after July 1, 2010.
EXPLANATION
   This bill requires the commissioner of insurance to adopt rules establishing standard provisions for terms and benefits required to be included in a long-term care insurance policy advertised, marketed, offered, delivered, or issued for delivery in this state. The rules must establish a standard format for such policies so that consumers can easily compare the various policies offered. The commissioner is required to review each policy of long-term care insurance to ensure that the policy complies with these requirements.
   The bill also requires the commissioner to adopt rules concerning a consumer guide to be delivered to prospective applicants for long-term care insurance at the time of solicitation, application, or enrollment. The guide must include a description of the required standard terms, benefits, and format in long-term care insurance policies in this state. The commissioner may by reference adopt or permit the use of a consumer guide developed by the national association of insurance commissioners, the blue cross and blue shield association, or the health insurance association of America, so long as the guide meets all the requirements of the bill.
   The bill is applicable to long-term care insurance policies advertised, marketed, offered, delivered, or issued for delivery in this state on or after July 1, 2010.