House File 355 - Introduced HOUSE FILE BY UPMEYER Passed House, Date Passed Senate, Date Vote: Ayes Nays Vote: Ayes Nays Approved A BILL FOR 1 An Act establishing standardized requirements and a consumer 2 guide for long=term care insurance policies and providing an 3 applicability date. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5 TLSB 1378YH 83 6 av/nh/14 PAG LIN 1 1 Section 1. Section 514G.105, Code 2009, is amended by 1 2 adding the following new subsections: 1 3 NEW SUBSECTION. 5A. STANDARD PROVISIONS. 1 4 a. The commissioner shall adopt rules establishing 1 5 standard provisions for terms and benefits required to be 1 6 included in a long=term care insurance policy advertised, 1 7 marketed, offered, delivered, or issued for delivery in this 1 8 state. The rules shall establish a standard format for such 1 9 long=term care insurance policies to facilitate ease of 1 10 comparison of the various policies by consumers. 1 11 b. The commissioner shall review each policy of long=term 1 12 care insurance prior to the policy being advertised, marketed, 1 13 offered, delivered, or issued for delivery in this state to 1 14 ensure that the policy complies with the requirements of this 1 15 subsection and rules adopted pursuant to this subsection. 1 16 NEW SUBSECTION. 7A. CONSUMER GUIDE. 1 17 a. A consumer guide, as prescribed by the commissioner by 1 18 rule, shall be delivered to a prospective applicant for 1 19 long=term care insurance at the time of the initial 1 20 solicitation for coverage. 1 21 (1) In the case of producer solicitations, a producer 1 22 shall deliver the consumer guide to a prospective applicant 1 23 prior to the presentation of an application or enrollment 1 24 form. 1 25 (2) In the case of direct response solicitations, the 1 26 consumer guide shall be presented in conjunction with any 1 27 application or enrollment form. 1 28 (3) In the case of a policy issued to a group as described 1 29 in section 514G.103, subsection 9, paragraph "a", a consumer 1 30 guide is not required to be delivered to the applicant, 1 31 provided that the information described in paragraph "b" of 1 32 this subsection is contained in other enrollment materials 1 33 provided. Upon request such other enrollment materials shall 1 34 be made available to the commissioner. 1 35 b. The consumer guide shall include a description of the 2 1 standard terms, benefits, and format required for a long=term 2 2 care insurance policy in this state. The commissioner of 2 3 insurance may by reference adopt or permit the use of the 2 4 long=term care insurance consumer guide developed by the 2 5 national association of insurance commissioners, the blue 2 6 cross and blue shield association, or the health insurance 2 7 association of America, provided that the consumer guide that 2 8 is adopted or permitted to be used by reference meets all of 2 9 the requirements of this subsection. 2 10 Sec. 2. APPLICABILITY. This Act applies to long=term care 2 11 insurance policies advertised, marketed, offered, delivered, 2 12 or issued for delivery in this state on or after July 1, 2009. 2 13 EXPLANATION 2 14 This bill requires the commissioner of insurance to adopt 2 15 rules establishing standard provisions for terms and benefits 2 16 required to be included in a long=term care insurance policy 2 17 advertised, marketed, offered, delivered, or issued for 2 18 delivery in this state. The rules must establish a standard 2 19 format for such policies so that consumers can easily compare 2 20 the various policies offered. The commissioner is required to 2 21 review each policy of long=term care insurance to ensure that 2 22 the policy complies with these requirements. 2 23 The bill also requires the commissioner to adopt rules 2 24 concerning a consumer guide to be delivered to prospective 2 25 applicants for long=term care insurance at the time of 2 26 solicitation, application, or enrollment. The guide must 2 27 include a description of the required standard terms, 2 28 benefits, and format in long=term care insurance policies in 2 29 this state. The commissioner may by reference adopt or permit 2 30 the use of a consumer guide developed by the national 2 31 association of insurance commissioners, the blue cross and 2 32 blue shield association, or the health insurance association 2 33 of America, so long as the guide meets all the requirements of 2 34 the bill. 2 35 The bill is applicable to long=term care insurance policies 3 1 advertised, marketed, offered, delivered, or issued for 3 2 delivery in this state on or after July 1, 2009. 3 3 LSB 1378YH 83 3 4 av/nh/14