NY State Senate Bill 2021-S4327C

Senate Bill S4327C

2021-2022 Legislative Session

Requires certain notices be posted and provided regarding long term care insurance policy changes

download bill text pdf

Archive: Last Bill Status - In Assembly Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

View Actions

	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jun 02, 2022	referred to insurance delivered to assembly passed senate
May 23, 2022	amended on third reading 4327c
Feb 02, 2022	advanced to third reading
Feb 01, 2022	2nd report cal.
Jan 31, 2022	1st report cal.347
Jan 05, 2022	referred to insurance
Jun 10, 2021	committed to rules
May 24, 2021	advanced to third reading amended 4327b
May 20, 2021	2nd report cal.
May 18, 2021	1st report cal.1161
May 04, 2021	print number 4327a
May 04, 2021	amend (t) and recommit to insurance
Feb 03, 2021	referred to insurance

Votes

- Jun 2, 2022 - Floor Vote
  S4327C
  
  49
  
  Aye
  
  14
  
  Nay
  
  0
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  - - Floor Vote: Jun 2, 2022
      
      aye (49)
      
      Addabbo Jr.
      
      Bailey
      
      Biaggi
      
      Breslin
      
      Brisport
      
      Brooks
      
      Brouk
      
      Cleare
      
      Comrie
      
      Cooney
      
      Felder
      
      Gaughran
      
      Gianaris
      
      Gounardes
      
      Harckham
      
      Hinchey
      
      Hoylman-Sigal
      
      Jackson
      
      Kaminsky
      
      Kaplan
      
      Kavanagh
      
      Kennedy
      
      Krueger
      
      Lanza
      
      Liu
      
      Mannion
      
      Mattera
      
      May
      
      Mayer
      
      Myrie
      
      O'Mara
      
      Oberacker
      
      Parker
      
      Persaud
      
      Ramos
      
      Reichlin-Melnick
      
      Ritchie
      
      Rivera
      
      Ryan
      
      Salazar
      
      Sanders Jr.
      
      Savino
      
      Sepúlveda
      
      Serino
      
      Serrano
      
      Skoufis
      
      Stavisky
      
      Stewart-Cousins
      
      Thomas
      
      nay (14)
      
      Akshar
      
      Borrello
      
      Boyle
      
      Gallivan
      
      Griffo
      
      Helming
      
      Jordan
      
      Martucci
      
      Ortt
      
      Palumbo
      
      Rath III
      
      Stec
      
      Tedisco
      
      Weik
  Jan 31, 2022 - Insurance Committee Vote
  S4327C
  
  9
  
  Aye
  
  1
  
  Nay
  
  1
  
  Aye with Reservations
  
  0
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  - - Insurance Committee Vote: Jan 31, 2022
      
      aye (9)
      
      Breslin
      
      Brooks
      
      Cooney
      
      Gounardes
      
      Harckham
      
      Kennedy
      
      Parker
      
      Sanders Jr.
      
      Serino
      
      nay (1)
      
      O'Mara
      
      aye wr (1)
      
      Helming
  May 18, 2021 - Insurance Committee Vote
  S4327C
  
  10
  
  Aye
  
  1
  
  Nay
  
  0
  
  Aye with Reservations
  
  0
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  - - Insurance Committee Vote: May 18, 2021
      
      aye (10)
      
      Breslin
      
      Brooks
      
      Cooney
      
      Gounardes
      
      Harckham
      
      Helming
      
      Kennedy
      
      Parker
      
      Sanders Jr.
      
      Serino
      
      nay (1)
      
      O'Mara

Bill Amendments

Original

C (Active)

2021-S4327 - Details

Current Committee:: Assembly Insurance
Law Section:: Insurance Law
Laws Affected:: Amd §1117, add §334, Ins L
Versions Introduced in 2023-2024 Legislative Session:: S2330

2021-S4327 - Summary

Requires the superintendent of financial services to make public any rate filing or application submitted by long term care insurance carriers; requires certain notices be provided to policyholders and certificate holders regarding premium rate increases; requires the superintendent ensure the proper standard for minimum ratio losses when establishing minimum benefit standards.

2021-S4327 - Sponsor Memo

                                
 
BILL NUMBER: S4327

SPONSOR: MAYER
 
TITLE OF BILL:

An act to amend the insurance law, in relation to notices to increase
premium rates for long-term care insurance

 
PURPOSE OR GENERAL IDEA OF BILL:

To provide prospective buyers of long-term care insurance with estimates
of premium increases and other related information so that they can make
an informed decision based on estimated future financial impacts.

 
SUMMARY OF PROVISIONS:

Section 1 requires insurers selling long-term care insurance to, before
the policy is executed, provide the prospective insured with a written
statement as to the anticipated good faith increases in premiums for the
policy in question over the next ten years and a graph showing past
premium rate increases over the previous ten years for such policy (or a

similar policy).

Section 2 requires insurers providing long-term care insurance to notify
policyholders when they file an application with the state to increase
premiums. The notice must include:

(i) a written statement as to the anticipated good faith increases in
premiums for the policy in question over the next ten years, a graph
showing past premium rate increases over the previous ten years for such
policy (or a similar policy); and

(ii) aggregated, anonymized data showing actions taken by past or other
current policyholders in response to proposed rate increases for similar
policies, including letting a policy lapse, decreasing policy benefits,
and accepting the proposed rate increase.

Section 3 provides the effective date.

 
JUSTIFICATION:

Long-term care insurance can provide financial security later in life as
the daily cost of care increases cover the cost of care and daily activ-
ities that people may need as they age. Because other available options
do not pay for long term care, insurance to cover those costs helps
defray such expenses which would otherwise have to be paid out of pock-
et.

Unfortunately, the long-term care insurance industry has raised premiums
significantly and frequently. The increases are so substantial that many
policyholders are forced to drop the policy altogether. Many New Yorkers
who purchased these policies are understandably distressed to find that
they are paying premiums far higher than what they thought they would be
paying when they originally agreed to the policy.

This legislation helps consumers make better decisions about their
coverage at the time the policy is first executed and whenever there is
a premium increase by forcing long-term care insurers to provide esti-
mates of likely premium increases and information about how other simi-
larity situated customers have reacted to premium increases. This infor-
mation can help a prospective insured understand the likelihood of
premium increases and make a more informed decision about their finan-
cial future.

 
PRIOR LEGISLATIVE HISTORY:

New bill.

 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:

None

 
EFFECTIVE DATE:
This act shall take effect immediately.

2021-S4327 - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   4327
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                             February 3, 2021
                                ___________
 
 Introduced  by  Sen.  MAYER  -- read twice and ordered printed, and when
   printed to be committed to the Committee on Insurance
 
 AN ACT to amend the insurance law, in relation to  notices  to  increase
   premium rates for long-term care insurance
 
   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 a new subparagraph (G) is 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.
 For  the  purpose of this paragraph, "home care services" shall have the
 same meaning as defined in subdivision one of section thirty-six hundred
 two of the public health law. The prospective insured,  or  his  or  her
 representative,  shall acknowledge that the required disclosure has been
 made by signing the disclosure statement prior to  or  contemporaneously
 with the effective date of the policy or certificate.
 Failure  to  provide  information  required  by subparagraph (D) of this
 paragraph shall not be construed as a violation of this section if  such
 information  has not been made available by the department of health[.];
 AND
   (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 GRAPHIC DEMONSTRATION  ILLUSTRATING  PAST
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD09388-01-1

 S. 4327                             2
 
 PREMIUM  RATE INCREASES FOR SUCH POLICY OR CERTIFICATE OVER THE PREVIOUS
 TEN YEARS, OR IF SUCH POLICY OR CERTIFICATE WAS  NOT  OFFERED  OVER  THE
 PREVIOUS  TEN YEARS, PAST PREMIUM RATE INCREASES FOR SIMILAR POLICIES OR
 CERTIFICATES OVER THE PREVIOUS TEN YEARS.
   §  2.  Section  1117  of  the insurance law is amended by adding a new
 subsection (h) to read as follows:
   (H) WHEN AN AUTHORIZED INSURER, CORPORATION, HEALTH MAINTENANCE ORGAN-
 IZATION OR FRATERNAL BENEFIT SOCIETY COVERED BY THE PROVISIONS  OF  THIS
 SECTION  SUBMITS  A  RATE  FILING  APPLICATION WITH THE DEPARTMENT, SUCH
 INSURER SHALL NOTIFY POLICYHOLDERS OF SUCH PROPOSED RATE INCREASE.  SUCH
 NOTIFICATION SHALL INCLUDE:
   (1) A WRITTEN STATEMENT AND GRAPHIC DEMONSTRATION  CONFORMING  TO  THE
 REQUIREMENTS   SET  FORTH  IN  SUBPARAGRAPH  (G)  OF  PARAGRAPH  SIX  OF
 SUBSECTION (B) OF THIS SECTION; AND
   (2) AGGREGATED AND ANONYMIZED DATA SHOWING ACTIONS TAKEN  BY  PAST  OR
 CURRENT  POLICYHOLDERS,  SEGMENTED BY AGE GROUP, IN RESPONSE TO PROPOSED
 RATE INCREASES FOR SIMILAR POLICIES OR CERTIFICATES. SUCH DATA REGARDING
 SUCH ACTIONS SHALL INCLUDE BUT NOT BE LIMITED TO THE  FOLLOWING  ACTIONS
 TAKEN BY SUCH PAST OR CURRENT POLICYHOLDERS:
   (A) LETTING A POLICY LAPSE;
   (B) DECREASING POLICY BENEFITS; AND
   (C) ACCEPTING THE PROPOSED RATE INCREASES.
   § 3. This act shall take effect immediately.

2021-S4327A - Details

Current Committee:: Assembly Insurance
Law Section:: Insurance Law
Laws Affected:: Amd §1117, add §334, Ins L
Versions Introduced in 2023-2024 Legislative Session:: S2330

2021-S4327A - Summary

2021-S4327A - Sponsor Memo

                                 
BILL NUMBER: S4327A

SPONSOR: MAYER
 
TITLE OF BILL:

An act to amend the insurance law, in relation to requiring certain
notices be posted and provided regarding long term care insurance policy
changes

 
PURPOSE OR GENERAL IDEA OF BILL:

To increase transparency in the long-term care insurance premium rate
increase approval process by providing for additional communications to
insureds by the Department of Financial Services with respect to a rate
increase application, to require that the best interest of the policy-
holders be explicitly considered by the Department of Financial Services
when making a determination as to such application, and to require addi-
tional disclosures to policyholders by insurance companies.

 
SUMMARY OF PROVISIONS:

Section 1 requires insurers requesting premium rate increases for long-

term care insurance to provide policyholders with a written statement as
to the good faith anticipated increases in premiums for the policy in
question over the next ten years, historical premium rate increases over
the previous ten years for such policy (or a similar policy), and a
notice that policyholders may publicly comment on the rate increase
application on the Department of Financial Services website.

Section 2 requires consideration of the best interests of policyholders
when the Department of Financial Services makes determinations as to
whether to approve, disapprove, or modify a premium rate increase appli-
cation.

Section 3 places requirements on both the Department of Financial
Services and insurers.

1. The Department of Financial Services under the provisions of Section
3 must:

(a) provide a publicly available summary of any application for a long
term care insurance premium rate increase;

(b) provide for 30 days of public comment on the rate increase applica-
tion on its website; and

(c) make public its written decision regarding approval, disapproval, or
modification of any premium rate increase application, including:  (i) a
summary of its determinations, and (ii) a written statement as to why
the decision is in the best interests of the policyholders.

2. Under the provisions of section 3, insurers providing long term care
insurance must notify policyholders when the Department of Financial
Services renders a decision on an application to increase premiums. The
notice must include:

(a) a description of the decision;


(b) the same information required by section 1 of the bill related to
likely future premium increases as well as historical increases; and

(c) aggregated, anonymized data showing actions taken by past or other
current policyholders in response to proposed rate increases for similar
policies, including letting a policy lapse, decreasing policy benefits,
and accepting the proposed rate increase.

Section 4 provides the effective date.

 
JUSTIFICATION:

Long-term care insurance can provide financial security later in life as
the daily costs of care increases by covering the cost of care and
assistance with daily activities that people may need as they age.

Unfortunately, the long-term care insurance industry has raised premiums
significantly and frequently. Many New Yorkers who purchased these poli-
cies are understandably distressed to find that they are paying premiums
far higher than what they thought they would be paying when they
originally agreed to the policy. The increases are so substantial that
many policyholders are forced to drop their policies altogether. An
article in the New York Times on August 23, 2019, "Your Long-Term Care
Insurance Rate Spiked. Now
What?"(https://www.nytimes.com/2019/08/23/your-money/ long-term-care-in-
surance-prices.html) details the challenges of struggling to keep up
with skyrocketing premiums.

This legislation will give insureds more clarity and a stronger voice
when insurers seek premium increases by increasing transparency, requir-
ing additional background information, providing for public comment at
the time that rate increase applications are under consideration, and by
explicitly requiring the Department of Financial Services to consider
and publicly opine on the best interest of policyholders with respect to
the rate increase application in question.

 
PRIOR LEGISLATIVE HISTORY:

New bill

 
FISCAL IMPLICATIONS:

To be determined.

 
EFFECTIVE DATE:
This act shall take effect immediately.

2021-S4327A - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  4327--A
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                             February 3, 2021
                                ___________
 
 Introduced  by  Sen.  MAYER  -- read twice and ordered printed, and when
   printed to be committed to the Committee  on  Insurance  --  committee
   discharged, bill amended, ordered reprinted as amended and recommitted
   to said committee
 
 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.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD09388-03-1

 S. 4327--A                          2
 
   §  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:
   (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. This act shall take effect immediately.

2021-S4327B - Details

Current Committee:: Assembly Insurance
Law Section:: Insurance Law
Laws Affected:: Amd §1117, add §334, Ins L
Versions Introduced in 2023-2024 Legislative Session:: S2330

2021-S4327B - Summary

2021-S4327B - Sponsor Memo

                                 
BILL NUMBER: S4327B

SPONSOR: MAYER
 
TITLE OF BILL:

An act to amend the insurance law, in relation to requiring certain
notices be posted and provided regarding long term care insurance policy
changes

 
PURPOSE OR GENERAL IDEA OF BILL:

To raise the minimum loss ratio standard for premium increases for long-
term care insurance policies, to increase transparency in the long-term
care insurance premium rate increase approval process by providing for
additional communications to insureds by the Department of Financial
Services with respect to a rate increase application, to require that
the best interest of the policyholders be explicitly considered by the
Department of Financial Services when making a determination as to such
application, and to require additional disclosures to policyholders by
insurance companies.

 
SUMMARY OF PROVISIONS:

Section 1 requires insurers requesting premium rate increases for long-
term care insurance to provide policy holders with a written statement
as to the good faith anticipated increases in premiums for the policy in
question over the next ten years, historical premium rate increases over
the previous ten years for such policy (or a similar policy), and a
notice that policy holders may publicly comment on the rate increase
application on the Department of Financial Services website.

Section 2 requires consideration of the best interests of policyholders
when the Department of Financial Services makes determinations as to
whether to approve, disapprove, or modify a premium rate increase appli-
cation.

Section 3 places requirements on both the Department of Financial
Services and insurers:

The Department of Financial Services under the provisions of Section 3
must
(a) provide a publicly available summary of any application for a long
term care insurance premium rate increase;
(b) provide for 30 days of public comment on the rate increase applica-
tion on its website; and
(c) make public its written decision regarding approval, disapproval, or
modification of any premium rate increase application, including:  (i) a
summary of its determinations, and (ii) a written statement as to why
the decision is in the best interests of the policy holders.

Under the provisions of section 3, insurers providing long term care
insurance must notify policy holders when the Department of Financial
Services renders a decision on an application to increase premiums.  The
notice must include
(a) a description of the decision;
(b) the same information required by section 1 of the bill related to
likely future premium increases as well as historical increases; and
(c) aggregated, anonymized data showing actions taken by past or other
current policyholders in response to proposed rate increases for similar
policies, including letting a policy lapse, decreasing policy benefits,
and accepting the proposed rate increase.

Section 4 requires the Department of Financial Services to ensure that
minimum loss ratios for long-term care premiums are no less favorable to
policy holders than the standards set by the National Association of
Insurance Commissioners' model regulations.

Section 5 provides the effective date.

 
JUSTIFICATION:

Long-term care insurance can frequently provide financial security later
in life by mitigating the high financial burden of paying for increased
care that people may need as they age.  Unfortunately, the long-term
care insurance industry has raised premiums significantly and frequent-
ly. Many New Yorkers who purchased these policies are understandably
distressed to find that they are paying premiums far higher than what
they thought they would be paying when they originally agreed to the
policy. The increases are so substantial that many policy holders are
forced to drop their policies altogether. An article in the New York
Times on August 23, 2019, "Your Long-Term Care Insurance Rate Spiked.
Now What?"
(https://www.nytimes.com/2019/08/23/your-money/long-term-care- insu-
rance-prices.html) details the challenges of struggling to keep up with
skyrocketing premiums.

Among other improvements, this bill will make a significant change in
the determination of premium increases by requiring the Department of
Financial Services to ensure that the percentage of premiums received by
insurers that go to paying out benefits (the minimum loss ratio) is no
less favorable to policy holders than the percentage set forth in the
long-term care insurance model regulations published by the National
Association of Insurance Commissioners (NAIC). Currently, the minimum
loss ratios set by regulation in New York are 60% or 65% depending on
the age of the insured, regardless of whether the rate approval is in
connection with a new policy or a premium increase. In contrast, while
the NAIC model regulations stipulate a minimum loss ratio of 58% for new
policies (slightly lower than as set in New York's regulations), it also
sets a minimum loss ratio of 85% for any premium increases. Accordingly,
this bill will mean that 20%-25% more of premiums paid when rates are
increased will have to go towards paying out claims, thus bringing New
York in line with other states that have adopted the latest model regu-
lations. This is a major victory for New Yorkers who hold long term care
insurance policies and will put significant downward pressure on premium
increases.

In addition, this legislation will give insureds more clarity and a
stronger voice when insurers seek premium increases by increasing trans-
parency, requiring additional background information, providing for
public comment at the time that rate increase applications are under
consideration, and by explicitly requiring the Department of Financial
Services to consider and publicly opine on the best interest of policy-
holders with respect to the rate increase application in question.

 
PRIOR LEGISLATIVE HISTORY:

New bill
 
FISCAL IMPLICATIONS:

To be determined.

 
EFFECTIVE DATE:
This act shall take effect immediately.

2021-S4327B - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  4327--B
     Cal. No. 1161
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                             February 3, 2021
                                ___________
 
 Introduced  by  Sen.  MAYER  -- read twice and ordered printed, and when
   printed to be committed to the Committee  on  Insurance  --  committee
   discharged, bill amended, ordered reprinted as amended and recommitted
   to  said  committee -- reported favorably from said committee, ordered
   to first and second report, amended on second  report,  ordered  to  a
   third  reading, and to be reprinted as amended, retaining its place in
   the order of third reading
 
 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
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets

                       [ ] is old law to be omitted.
                                                            LBD09388-06-1

 S. 4327--B                          2
 
   (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:
   (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

 S. 4327--B                          3
 
 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.

2021-S4327C (ACTIVE) - Details

Current Committee:: Assembly Insurance
Law Section:: Insurance Law
Laws Affected:: Amd §1117, add §334, Ins L
Versions Introduced in 2023-2024 Legislative Session:: S2330

2021-S4327C (ACTIVE) - Summary

2021-S4327C (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S4327C

SPONSOR: MAYER
 
TITLE OF BILL:

An act to amend the insurance law, in relation to requiring certain
notices be posted and provided regarding long term care insurance policy
changes

 
PURPOSE OR GENERAL IDEA OF BILL:

To increase transparency in the long-term care insurance premium rate
increase approval process by providing for additional communications to
insureds by the Department of Financial Services with respect to a rate
increase application and the ability for public comment, to require that
the best interest of the policyholders be considered by the Department
of Financial Services when making a determination as to such applica-
tion, to require additional disclosures to policyholders by insurance
companies, and to ensure a high minimum loss ratio standard for premium
increases for longterm care insurance policies.

 
SUMMARY OF PROVISIONS:

Section 1 requires insurers offering long-term care insurance to provide
prospective insureds with:

(a) a written statement as to whether the insurer anticipates requesting
increases in premiums for the policy in question over the next ten
years,

(b) historical premium rate increases over the previous ten years for
such policy (or a similar policy),

(c) contact information for DFS and the insurer,

(d) information about whether not the premium can increase, and if so,
under what circumstances,

(e) whether the policy contains any refund provisions,

(f) a description of ways to mitigate future premium increases,

(g) a description of policyholder options for surrendering the policy,

(h) a statement that the policyholder will have 60 days' written notice
before any premium increase,

(i) a statement that if the insurer seeks a premium increase, DFS will
post notice of the rate filing on its website, and

(j) notice that policyholders may publicly comment on the rate increase
application on the Department of Financial Services website.

Section 2 requires consideration of the best interests of policyholders
when the Department of Financial Services makes determinations as to
whether to approve, disapprove, or modify a premium rate increase appli-
cation.


Section 3 places requirements on both the Department of Financial
Services and insurers:

The Department of Financial Services under the provisions of Section 3
must

(a) make public any application for a long term care insurance premium
rate increase;

(b) post on its website the process it uses for reviewing and approving
premium rates;

(c) provide for 30 days of public comment on the rate increase applica-
tion on its website; and

(d) make public its written decision regarding approval, disapproval, or
modification of any premium rate increase application, including:  (i) a
summary of its determinations, and (ii) a written statement as to why
the decision is in the best interests of the policy holders.

Under the provisions of section 3, insurers providing long term care
insurance must notify policy holders when the Department of Financial
Services renders a decision on an application to increase premiums.  The
notice must include:

(a) a description of the decision; and

(b) the same information required by section 1 of the bill related to
the likelihood of future premium increases and historical increases.

Section 4 requires the Department of Financial Services to ensure that
minimum loss ratios for long-term care premiums are no less favorable to
policy holders than the standards set by the National Association of
Insurance Commissioners' model regulations.

Section 5 provides the effective date.

 
JUSTIFICATION:

Long-term care insurance can provide financial security later in life by
mitigating the high financial burden of paying for increased care that
people may need as they age. Unfortunately, the long-term care insurance
industry has raised premiums significantly and frequently.  Many New
Yorkers who purchased these policies are understandably distressed to
find that they are paying premiums far higher than what they thought
they would be paying when they originally agreed to the policy. The
increases are so substantial that many policy holders are forced to drop
their policies altogether. An article in the New York Times on August
23, 2019, "Your Long-Term Care Insurance Rate Spiked.  Now
What?"(https://www.nytimes.com/2019/08/23/ your-money/long-termcare-
insur ance-prices.html) details the challenges of struggling to keep up
with skyrocketing premiums. To make matters worse, the process by which
insurers obtain approval from the Department of Financial Services for
premium increases is opaque and lacks all opportunity for policyholder
input.

This legislation will give insureds more clarity and a stronger voice
when insurers seek premium increases by increasing transparency, requir-
ing additional background information, providing for public comment at
the time that rate increase applications are under consideration, and by
explicitly requiring the Department of Financial Services to consider
and publicly opine on the best interest of policyholders with respect to
the rate increase application in question.

In addition, this bill will require that the determination of premium
increases by the Department of Financial Services ensure that the
percentage of premiums received by insurers that go to paying out bene-
fits (the minimum loss ratio) is no less favorable to policy holders
than the percentage set 'forth in the long-term care insurance model
regulations published by the National Association of Insurance Commis-
sioners (NAIC). Currently, the minimum loss ratios set by regulation in
New York are 60% or 65% depending on the age of the insured, regardless
of whether the rate approval is in connection with a new policy or a
premium increase. In contrast, while the NAIC model regulations stipu-
late a minimum loss ratio of 58% for new policies (slightly lower than
as set in New York's regulations), it sets a minimum loss ratio of 85%
for any premium increases.

Long-term care insurance will continue to pose financial challenges for
New Yorkers for a long time to come. However, this bill will eliminate
some of the current lack of information and disregard for consumer
participation so that the Department of Financial Services and the
insurers are forced to recognize that they are not the only two parties
involved in the premium rate increase process - the policyholder is the
third, and most important, party when it comes to any premium increase
filing - they are the ones actually paying the premiums, and they are
currently excluded from participating. This conduct by the Department of
Financial Services and insurers needs to change, and this bill is a
major step in the right direction.

 
PRIOR LEGISLATIVE HISTORY:

New bill

 
FISCAL IMPLICATIONS:

To be determined.

 
EFFECTIVE DATE:
The act shall take effect 180 days after becoming law.

2021-S4327C (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  4327--C
     Cal. No. 347
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                             February 3, 2021
                                ___________
 
 Introduced  by  Sen.  MAYER  -- read twice and ordered printed, and when
   printed to be committed to the Committee  on  Insurance  --  committee
   discharged, bill amended, ordered reprinted as amended and recommitted
   to  said  committee -- reported favorably from said committee, ordered
   to first and second report, amended on second  report,  ordered  to  a
   third  reading, and to be reprinted as amended, retaining its place in
   the order of third reading -- recommitted to the Committee  on  Insur-
   ance  in  accordance  with Senate Rule 6, sec. 8 -- reported favorably
   from said committee, ordered to first and second report, ordered to  a
   third  reading,  amended and ordered reprinted, retaining its place in
   the order of third reading
 
 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 ten new  subparagraphs (G), (H), (I), (J),
 (K), (L), (M), (N), (O) and (P) 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) (I) A WRITTEN STATEMENT AS  TO  WHETHER  THE  INSURER  ANTICIPATES
 REQUESTING  INCREASES  OF  PREMIUM  RATES FOR SUCH POLICY OR CERTIFICATE
 OVER THE NEXT TEN YEARS; AND
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD09388-10-2
 S. 4327--C                          2
 
   (II) A LIST OF PAST PREMIUM RATE INCREASES FOR SUCH POLICY OR  CERTIF-
 ICATE  OVER THE PREVIOUS TEN YEARS, OR IF SUCH POLICY OR CERTIFICATE WAS
 NOT OFFERED OVER THE PREVIOUS TEN YEARS, PAST PREMIUM RATE INCREASES FOR
 SIMILAR POLICIES OR CERTIFICATES OVER THE PREVIOUS TEN YEARS;
   (H)  DIRECTIONS  ON  HOW  TO OBTAIN INFORMATION ABOUT THE DEPARTMENT'S
 REVIEW OF ANY RATE FILING OR APPLICATION, CONTACT  INFORMATION  FOR  THE
 DEPARTMENT,  AND  INFORMATION  ON  HOW  TO  CONTACT THE INSURER FOR MORE
 INFORMATION;
   (I) WHETHER OR NOT THERE IS AN INITIAL PERIOD IN WHICH RATES WILL  NOT
 CHANGE, AND IF SO, WHEN THAT TIME PERIOD EXPIRES;
   (J) A DESCRIPTION OF WHETHER OR NOT THE PREMIUM MAY CHANGE, AND IF SO,
 THE  CIRCUMSTANCES  UNDER  WHICH  ANY  SUCH PREMIUM CHANGES COULD OCCUR,
 INCLUDING WHETHER THE DEPARTMENT MUST APPROVE SUCH CHANGES;
   (K) WHETHER THE POLICY CONTAINS PROVISIONS PROVIDING FOR A  REFUND  OR
 PARTIAL  REFUND OF PREMIUM UPON THE SURRENDER OF THE POLICY, AND IF SUCH
 PROVISIONS EXIST, PROVIDE A DESCRIPTION OF THEIR TERMS;
   (L) A DESCRIPTION OF THE OPTIONS POLICYHOLDERS WILL HAVE  TO  MITIGATE
 ANY FUTURE PREMIUM INCREASES;
   (M)  A  DESCRIPTION  OF THE OPTIONS POLICYHOLDERS WILL HAVE SHOULD THE
 PREMIUMS INCREASE, AND THE POLICYHOLDER DEEMS IT IN THEIR BEST  INTEREST
 TO SURRENDER THE POLICY;
   (N)  A  STATEMENT  THAT  THE POLICYHOLDER WILL BE GIVEN AT LEAST SIXTY
 DAYS NOTICE BEFORE ANY PREMIUM CHANGE TAKES EFFECT;
   (O) A STATEMENT THAT IF THE COMPANY SEEKS TO INCREASE THE PREMIUM, THE
 DEPARTMENT WILL POST NOTICE OF THE RATE FILING ON ITS WEBSITE  PRIOR  TO
 ANY DETERMINATION BY THE DEPARTMENT; AND
   (P)  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:
   (3)  (A)  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.
   (B)  "BEST INTERESTS OF POLICYHOLDERS AND CERTIFICATE HOLDERS" FOR THE
 PURPOSES OF THIS PARAGRAPH SHALL MEAN THAT THE PREMIUM RATE INCREASE  IS
 SUFFICIENT  TO  COVER ANTICIPATED COSTS UNDER MODERATELY ADVERSE EXPERI-
 ENCE AND THAT THE PREMIUM RATE SCHEDULE IS  REASONABLY  EXPECTED  TO  BE
 SUSTAINABLE  OVER  THE  LIFE OF THE POLICY OR CERTIFICATE WITH NO FUTURE
 PREMIUM INCREASE ANTICIPATED; and
   § 3. Section 1117 of the insurance law is amended by adding  four  new
 subsections (h), (i), (j) and (k) to read as follows:
   (H)  THE  DEPARTMENT  SHALL POST ON ITS WEBSITE INFORMATION DESCRIBING
 THE PROCESS THAT IT USES IN REVIEWING AND APPROVING  PREMIUM  RATES  FOR
 POLICIES OR CONTRACTS OF LONG TERM CARE INSURANCE.
   (I)  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 OF THE RATE FILING  OR  APPLICATION  ON  THE  DEPARTMENT'S
 WEBSITE  WITHIN SEVEN DAYS. THE SUPERINTENDENT SHALL PROVIDE FOR A PROC-
 ESS FOR THE PUBLIC TO PROVIDE COMMENTS ON SUCH RATE FILING  OR  APPLICA-
 TION ELECTRONICALLY OR IN WRITING FOR A PERIOD OF THIRTY DAYS AFTER SUCH
 PUBLIC NOTICE IS POSTED ON THE DEPARTMENT'S WEBSITE.
   (J)  THE SUPERINTENDENT, UPON RENDERING A DECISION REGARDING APPROVAL,
 DISAPPROVAL OR MODIFICATION OF A RATE FILING OR APPLICATION, SHALL ISSUE
 S. 4327--C                          3
 
 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 AND CONSIDERATIONS USED BY
 THE DEPARTMENT REGARDING THE APPROVAL, DISAPPROVAL  OR  MODIFICATION  OF
 SUCH RATE FILING OR APPLICATION, AND
   (2)  A  STATEMENT  WITH RELEVANT DETAIL AS TO WHY THE APPROVAL, DISAP-
 PROVAL OR MODIFICATION OF THE  PROPOSAL  IS  CONSISTENT  WITH  PARAGRAPH
 THREE OF SUBSECTION (F) OF THIS SECTION.
   (K) UPON RECEIPT BY AN AUTHORIZED INSURER, CORPORATION, HEALTH MAINTE-
 NANCE   ORGANIZATION   OR  FRATERNAL  BENEFIT  SOCIETY  COVERED  BY  THE
 PROVISIONS OF THIS SECTION OF AN APPROVAL OR  MODIFICATION  DECISION  BY
 THE  SUPERINTENDENT  WITH  RESPECT TO A RATE FILING APPLICATION WITH THE
 DEPARTMENT, SUCH INSURER, CORPORATION, HEALTH  MAINTENANCE  ORGANIZATION
 OR  FRATERNAL BENEFIT SOCIETY SHALL NOTIFY POLICYHOLDERS AND CERTIFICATE
 HOLDERS OF SUCH DECISION WITHIN FORTY-FIVE DAYS AND IN  NO  EVENT  LATER
 THAN  SIXTY  DAYS  PRIOR  TO  THE  EFFECTIVE  DATE  OF  THE PREMIUM RATE
 INCREASE.  SUCH NOTIFICATION SHALL INCLUDE:
   (1) A DESCRIPTION OF SUCH DECISION; AND
   (2) A WRITTEN STATEMENT CONFORMING TO THE REQUIREMENTS  SET  FORTH  IN
 SUBPARAGRAPH (G) OF PARAGRAPH SIX OF SUBSECTION (B) OF THIS SECTION.
   §  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 on the one hundred eightieth day after
 it shall have become a law, and shall apply to any rate filing submitted
 on or after such date.

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