Requires long term care insurance carriers who propose to raise long term care insurance premiums to obtain prior approval of the superintendent of financial services.
STATE OF NEW YORK
________________________________________________________________________
2941--A
2019-2020 Regular Sessions
IN ASSEMBLY
January 28, 2019
___________
Introduced by M. of A. D'URSO, SAYEGH, GOTTFRIED, GRIFFIN, SIMON,
TAYLOR, ARROYO, OTIS -- Multi-Sponsored by -- M. of A. M. L. MILLER,
MORINELLO, WRIGHT -- read once and referred to the Committee on Insur-
ance -- committee discharged, bill amended, ordered reprinted as
amended and recommitted to said committee
AN ACT to amend the insurance law, in relation to requiring long term
care insurance carriers who propose to raise long term care insurance
premiums to obtain prior approval of the superintendent of financial
services
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Paragraph 3 of subsection (f) of section 1117 of the insur-
2 ance law, as added by chapter 245 of the laws of 1986, is amended to
3 read as follows:
4 (3) the premium rates for the long term care plan are reasonably
5 related to the benefits provided, and are self-supporting, as determined
6 by the superintendent pursuant to subsection (h) of this section; and
7 § 2. Section 1117 of the insurance law is amended by adding a new
8 subsection (h) to read as follows:
9 (h) An insurer desiring to increase or decrease premiums for any poli-
10 cy subject to this section shall submit a rate filing or application to
11 the superintendent. An insurer shall send written notice of the
12 proposed rate adjustment, including the specific change requested, to
13 each policy holder and certificate holder affected by the adjustment on
14 or before the date the rate filing or application is submitted to the
15 superintendent. The notice shall prominently include mailing and website
16 addresses for both the department of financial services and the insurer
17 through which a person may, within thirty days from the date the rate
18 filing or application is submitted to the superintendent, contact the
19 department of financial services or insurer to receive additional infor-
20 mation or to submit written comments to the department of financial
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD08362-02-9
A. 2941--A 2
1 services on the rate filing or application. The superintendent shall
2 establish a process to post on such department's website, in a timely
3 manner, all relevant written comments received pertaining to rate
4 filings or applications. The insurer shall provide a copy of the notice
5 to the superintendent with the rate filing or application. The super-
6 intendent shall immediately cause the notice to be posted on the depart-
7 ment of financial services' website. The superintendent shall determine
8 whether the filing or application shall become effective as filed, shall
9 become effective as modified, or shall be disapproved. The superinten-
10 dent may modify or disapprove the rate filing or application if the
11 superintendent finds that the premiums are unreasonable, excessive,
12 inadequate, unfairly discriminatory or otherwise not in the best inter-
13 ests of policy holders and certificate holders, and may consider the
14 financial condition of the insurer when approving, modifying or disap-
15 proving any premium adjustment. The determination of the superintendent
16 shall be supported by sound actuarial assumptions and methods, shall
17 include a statement regarding the best interests of policy holders and
18 certificate holders with respect to the rate filing or application, and
19 shall be rendered in writing between thirty and sixty days from the date
20 the rate filing or application is submitted to the superintendent.
21 Should the superintendent require additional information from the insur-
22 er in order to make a determination, the superintendent shall require
23 the insurer to furnish such information, and in such event, the sixty
24 days shall be tolled and shall resume as of the date the insurer
25 furnishes the information to the superintendent. If the superintendent
26 requests additional information less than ten days from the expiration
27 of the sixty days (exclusive of tolling), the superintendent may extend
28 the sixty day period an additional twenty days to make a determination.
29 The application or rate filing will be deemed approved if a determi-
30 nation is not rendered within the time allotted under this section. An
31 insurer shall not implement a rate adjustment unless the insurer
32 provides at least sixty days advance written notice of the premium rate
33 adjustment approved by the superintendent to each policy holder and
34 certificate holder affected by the rate adjustment.
35 § 3. This act shall take effect immediately.