Assembly Bill A9244

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   9244
 
                           I N  A S S E M B L Y
 
                             February 9, 2022
                                ___________
 
 Introduced  by M. of A. BURDICK -- read once and referred to the Commit-
   tee on Insurance
 
 AN ACT to amend the insurance law,  in  relation  to  requiring  certain
   notices  be  posted  and  provided  regarding long term care insurance
   policy changes
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:

   Section  1. Subparagraphs (E) and (F) of paragraph 6 of subsection (b)
 of section 1117 of the insurance law, as amended by chapter 424  of  the
 laws  of  2016,  are  amended  and two new subparagraphs (G) and (H) are
 added to read as follows:
   (E) A graphic demonstration of the maximum daily nursing home  benefit
 level  provided  by  the  policy or certificate, and the impact that the
 selection of any inflation protection options would have on such maximum
 daily nursing home benefit level; [and]
   (F) The right of the prospective insured, upon attaining  the  age  of
 sixty-five  years, to designate a third party who will receive a copy of
 any notices of nonpayment of premiums due or notice of cancellation  for
 nonpayment of premiums that is sent to the prospective insured[.];
   (G)  A WRITTEN STATEMENT AS TO THE ANTICIPATED GOOD FAITH INCREASES OF
 PREMIUM RATES FOR SUCH POLICY OR CERTIFICATE OVER THE  NEXT  TEN  YEARS.
 SUCH  STATEMENT  SHALL INCLUDE A LIST OF PAST PREMIUM RATE INCREASES FOR
 SUCH POLICY OR CERTIFICATE OVER THE PREVIOUS TEN YEARS, OR IF SUCH POLI-
 CY OR CERTIFICATE WAS NOT OFFERED OVER  THE  PREVIOUS  TEN  YEARS,  PAST
 PREMIUM  RATE  INCREASES  FOR  SIMILAR POLICIES OR CERTIFICATES OVER THE
 PREVIOUS TEN YEARS; AND
   (H) THE RIGHT OF THE PROSPECTIVE INSURED TO SUBMIT PUBLIC COMMENTS  ON
 ANY  RATE  FILING  OR APPLICATION REGARDING PREMIUM RATES ON THE DEPART-
 MENT'S WEBSITE.
   § 2. Paragraph 3 of subsection (f) of section 1117  of  the  insurance
 law,  as added by chapter 245 of the laws of 1986, is amended to read as
 follows:
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD09388-07-2
 A. 9244                             2
              

 
   (3) the premium rates for the  long  term  care  plan  are  reasonably
 related  to the benefits provided, [and] are self-supporting, AND ARE IN
 THE BEST INTERESTS OF POLICYHOLDERS AND CERTIFICATE HOLDERS; and
   §  3. Section 1117 of the insurance law is amended by adding three new
 subsections (h), (i) and (j) to read as follows:
   (H) WHENEVER AN INSURER SUBMITS A RATE FILING OR  APPLICATION  TO  THE
 SUPERINTENDENT  TO  INCREASE OR DECREASE PREMIUM RATES FOR ANY POLICY OR
 CERTIFICATE SUBJECT TO THIS SECTION, THE  SUPERINTENDENT  SHALL  POST  A
 PUBLIC  NOTICE SUMMARIZING THE RATE FILING OR APPLICATION ON THE DEPART-
 MENT'S WEBSITE WITHIN SEVEN DAYS. THE SUPERINTENDENT SHALL PROVIDE FOR A
 PROCESS FOR THE PUBLIC TO PROVIDE COMMENTS ON SUCH RATE FILING OR APPLI-
 CATION ELECTRONICALLY OR IN WRITING FOR A PERIOD OF  THIRTY  DAYS  AFTER
 SUCH PUBLIC NOTICE IS POSTED ON THE DEPARTMENT'S WEBSITE.
   (I)  THE SUPERINTENDENT, UPON RENDERING A DECISION REGARDING APPROVAL,
 DISAPPROVAL OR MODIFICATION OF A RATE FILING OR APPLICATION, SHALL ISSUE
 A PUBLIC NOTICE OF SUCH DECISION. SUCH WRITTEN DECISION AND NOTICE SHALL
 BE MADE PUBLICLY AVAILABLE ON THE DEPARTMENT'S WEBSITE NO LATER THAN THE
 DATE ON WHICH THE RATE FILING OR APPLICATION IS  APPROVED,  DISAPPROVED,
 OR MODIFIED. SUCH NOTIFICATION SHALL INCLUDE:
   (1)  A  SUMMARY OF THE DETERMINATIONS MADE BY THE DEPARTMENT REGARDING
 THE APPROVAL, DISAPPROVAL OR MODIFICATION OF SUCH RATE FILING OR  APPLI-
 CATION, AND
   (2)  A  STATEMENT  WITH RELEVANT DETAIL AS TO WHY THE APPROVAL, DISAP-
 PROVAL OR MODIFICATION OF THE PROPOSAL IS IN THE BEST INTERESTS  OF  THE
 POLICYHOLDERS AND CERTIFICATE HOLDERS.
   (J) UPON RECEIPT BY AN AUTHORIZED INSURER, CORPORATION, HEALTH MAINTE-
 NANCE   ORGANIZATION   OR  FRATERNAL  BENEFIT  SOCIETY  COVERED  BY  THE
 PROVISIONS OF THIS SECTION OF A  DECISION  BY  THE  SUPERINTENDENT  WITH
 RESPECT  TO A RATE FILING APPLICATION WITH THE DEPARTMENT, SUCH INSURER,
 CORPORATION, HEALTH MAINTENANCE ORGANIZATION OR FRATERNAL BENEFIT SOCIE-
 TY SHALL NOTIFY POLICYHOLDERS AND CERTIFICATE HOLDERS OF SUCH  DECISION.
 SUCH NOTIFICATION SHALL INCLUDE:
   (1) A DESCRIPTION OF SUCH DECISION;
   (2)  A  WRITTEN  STATEMENT CONFORMING TO THE REQUIREMENTS SET FORTH IN
 SUBPARAGRAPH (G) OF PARAGRAPH SIX OF SUBSECTION (B) OF THIS SECTION; AND
   (3) AGGREGATED AND ANONYMIZED DATA SHOWING ACTIONS TAKEN  BY  PAST  OR
 CURRENT  POLICYHOLDERS  AND CERTIFICATE HOLDERS, SEGMENTED BY AGE GROUP,
 IN RESPONSE TO PROPOSED RATE INCREASES FOR SIMILAR POLICIES AND  CERTIF-
 ICATES. SUCH DATA REGARDING SUCH ACTIONS SHALL INCLUDE BUT NOT BE LIMIT-
 ED  TO THE FOLLOWING ACTIONS TAKEN BY SUCH PAST OR CURRENT POLICYHOLDERS
 AND CERTIFICATE HOLDERS:
   (A) LETTING A POLICY OR CERTIFICATE LAPSE;
   (B) DECREASING POLICY OR CERTIFICATE BENEFITS; AND
   (C) ACCEPTING THE PROPOSED RATE INCREASES.
   § 4. The insurance law is amended by adding a new section 334 to  read
 as follows:
   §  334.  MINIMUM  LOSS  RATIO STANDARDS; LONG TERM CARE INSURANCE.  IN
 ESTABLISHING MINIMUM BENEFIT STANDARDS  FOR  LONG  TERM  CARE  INSURANCE
 PLANS  PURSUANT  TO  THIS  ARTICLE, THE SUPERINTENDENT SHALL ENSURE THAT
 MINIMUM LOSS RATIO STANDARDS ARE NO LESS FAVORABLE TO POLICYHOLDERS  AND
 CERTIFICATE  HOLDERS  THAN  THOSE SPECIFIED BY THE MODEL REGULATIONS FOR
 LONG TERM CARE INSURANCE AS PUBLISHED BY  THE  NATIONAL  ASSOCIATION  OF
 INSURANCE COMMISSIONERS, AS UPDATED FROM TIME TO TIME.
   § 5. This act shall take effect immediately.