NY State Senate Bill 2023-S2330

Senate Bill S2330

Signed By Governor

2023-2024 Legislative Session

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

download bill text pdf

Current Bill Status - Signed by Governor

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
Nov 17, 2023	signed chap.655
Nov 13, 2023	delivered to governor
Jun 10, 2023	returned to senate passed assembly ordered to third reading rules cal.613 substituted for a345c
Jun 08, 2023	referred to insurance returned to assembly repassed senate
Jun 05, 2023	amended on third reading 2330b
May 31, 2023	amended on third reading 2330a
May 31, 2023	vote reconsidered - restored to third reading returned to senate recalled from assembly
Mar 30, 2023	referred to insurance delivered to assembly passed senate
Feb 15, 2023	advanced to third reading
Feb 14, 2023	2nd report cal.
Feb 13, 2023	1st report cal.346
Jan 19, 2023	referred to insurance

Votes

- Jun 8, 2023 - Floor Vote
  S2330
  
  53
  
  Aye
  
  9
  
  Nay
  
  0
  
  Absent
  
  1
  
  Excused
  
  0
  
  Abstained
  - - Floor Vote: Jun 8, 2023
      
      aye (53)
      
      Addabbo Jr.
      
      Ashby
      
      Bailey
      
      Borrello
      
      Breslin
      
      Brisport
      
      Brouk
      
      Canzoneri-Fitzpatrick
      
      Chu
      
      Cleare
      
      Comrie
      
      Felder
      
      Fernandez
      
      Gianaris
      
      Gonzalez
      
      Gounardes
      
      Harckham
      
      Helming
      
      Hinchey
      
      Hoylman-Sigal
      
      Jackson
      
      Kavanagh
      
      Kennedy
      
      Krueger
      
      Lanza
      
      Liu
      
      Mannion
      
      Martinez
      
      Martins
      
      Mattera
      
      May
      
      Mayer
      
      Murray
      
      Myrie
      
      Parker
      
      Persaud
      
      Ramos
      
      Rhoads
      
      Rivera
      
      Rolison
      
      Ryan
      
      Salazar
      
      Sanders Jr.
      
      Scarcella-Spanton
      
      Sepúlveda
      
      Serrano
      
      Skoufis
      
      Stavisky
      
      Stec
      
      Stewart-Cousins
      
      Thomas
      
      Webb
      
      Weik
      
      nay (9)
      
      Gallivan
      
      Griffo
      
      O'Mara
      
      Oberacker
      
      Ortt
      
      Palumbo
      
      Tedisco
      
      Walczyk
      
      Weber
      
      excused (1)
      
      Cooney
  Mar 30, 2023 - Floor Vote
  S2330
  
  48
  
  Aye
  
  14
  
  Nay
  
  0
  
  Absent
  
  1
  
  Excused
  
  0
  
  Abstained
  - - Floor Vote: Mar 30, 2023
      
      aye (48)
      
      Addabbo Jr.
      
      Ashby
      
      Bailey
      
      Breslin
      
      Brisport
      
      Brouk
      
      Canzoneri-Fitzpatrick
      
      Chu
      
      Cleare
      
      Comrie
      
      Cooney
      
      Felder
      
      Fernandez
      
      Gianaris
      
      Gonzalez
      
      Gounardes
      
      Harckham
      
      Hinchey
      
      Hoylman-Sigal
      
      Jackson
      
      Kavanagh
      
      Kennedy
      
      Krueger
      
      Lanza
      
      Liu
      
      Mannion
      
      Martinez
      
      Martins
      
      Mattera
      
      May
      
      Mayer
      
      Murray
      
      Myrie
      
      Parker
      
      Persaud
      
      Rivera
      
      Rolison
      
      Ryan
      
      Salazar
      
      Sanders Jr.
      
      Scarcella-Spanton
      
      Sepúlveda
      
      Serrano
      
      Skoufis
      
      Stavisky
      
      Stewart-Cousins
      
      Thomas
      
      Webb
      
      nay (14)
      
      Borrello
      
      Gallivan
      
      Griffo
      
      Helming
      
      O'Mara
      
      Oberacker
      
      Ortt
      
      Palumbo
      
      Rhoads
      
      Stec
      
      Tedisco
      
      Walczyk
      
      Weber
      
      Weik
      
      excused (1)
      
      Ramos
  Feb 13, 2023 - Insurance Committee Vote
  S2330
  
  8
  
  Aye
  
  3
  
  Nay
  
  0
  
  Aye with Reservations
  
  0
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  - - Insurance Committee Vote: Feb 13, 2023
      
      aye (8)
      
      Addabbo Jr.
      
      Breslin
      
      Cooney
      
      Harckham
      
      Kennedy
      
      Martinez
      
      Sanders Jr.
      
      Scarcella-Spanton
      
      nay (3)
      
      Borrello
      
      Helming
      
      O'Mara

Bill Amendments

Original

B (Active)

2023-S2330 - Details

Law Section:: Insurance Law
Laws Affected:: Amd §1117, add §334, Ins L
Versions Introduced in 2021-2022 Legislative Session:: S4327

2023-S2330 - 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.

2023-S2330 - Sponsor Memo

                                 
BILL NUMBER: S2330

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:

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 long-term care insurance policies.

 
SUMMARY OF SPECIFIC 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

2023-S2330 - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   2330
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                             January 19, 2023
                                ___________
 
 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  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
   (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;
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD01132-02-3
 S. 2330                             2

 
   (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
 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
 S. 2330                             3
 
   (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.

2023-S2330A - Details

Law Section:: Insurance Law
Laws Affected:: Amd §1117, add §334, Ins L
Versions Introduced in 2021-2022 Legislative Session:: S4327

2023-S2330A - Summary

2023-S2330A - Sponsor Memo

                                 
BILL NUMBER: S2330A

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:

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 SPECIFIC 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 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 3 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 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?"
details the challenges of struggling to keep up with skyrocketing premi-
ums. 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, and providing for public comment
at the time that rate increase applications are under consideration.

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:

2021/22: S4327-C (Mayer): advanced to Third Reading and committed to
Rules (2021); passed Senate (2022)

 
FISCAL IMPLICATIONS:

To be determined.

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

2023-S2330A - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  2330--A
     Cal. No. 346
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                             January 19, 2023
                                ___________
 
 Introduced  by  Sen.  MAYER  -- read twice and ordered printed, and when
   printed to be committed to the  Committee  on  Insurance  --  reported
   favorably  from  said  committee,  ordered to first and second report,
   ordered to a third reading, passed by  Senate  and  delivered  to  the
   Assembly,  recalled,  vote  reconsidered,  restored  to 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
   (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;
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD01132-05-3
 S. 2330--A                          2
 
   (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. 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
 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
 S. 2330--A                          3
 
 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.
   § 3. 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.

2023-S2330B (ACTIVE) - Details

Law Section:: Insurance Law
Laws Affected:: Amd §1117, add §334, Ins L
Versions Introduced in 2021-2022 Legislative Session:: S4327

2023-S2330B (ACTIVE) - Summary

2023-S2330B (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S2330B

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:

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 SPECIFIC PROVISIONS:

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

(a) a written statement informer prospective customers that they

(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 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 policyholders 90 days prior to when their premium
will increase. 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 3 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 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?"
details the challenges of struggling to keep up with skyrocketing premi-
ums. 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, and providing for public comment
at the time that rate increase applications are under consideration.

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:

2021/22: S4327-C (Mayer): advanced to Third Reading and committed to
Rules (2021); passed Senate (2022)

 
FISCAL IMPLICATIONS:

To be determined.

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

2023-S2330B (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  2330--B
     Cal. No. 346
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                             January 19, 2023
                                ___________
 
 Introduced  by  Sen.  MAYER  -- read twice and ordered printed, and when
   printed to be committed to the  Committee  on  Insurance  --  reported
   favorably  from  said  committee,  ordered to first and second report,
   ordered to a third reading, passed by  Senate  and  delivered  to  the
   Assembly,  recalled,  vote  reconsidered,  restored  to third reading,
   amended and ordered reprinted, retaining its place  in  the  order  of
   third  reading  --  again 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 INDICATING THAT SUCH POLICY OR CERTIFICATE
 MAY BE SUBJECT TO FUTURE PREMIUM  RATE  INCREASES  AND  THAT  SUCH  RATE
 INCREASES SHALL BE SUBJECT TO THE APPROVAL OR MODIFICATION OF THE SUPER-
 INTENDENT; AND
   (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
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD01132-09-3
 S. 2330--B                          2
 
 NOT OFFERED OVER THE PREVIOUS TEN YEARS, PAST PREMIUM RATE INCREASED FOR
 POLICIES  OR  CERTIFICATES THAT OFFER SIMILAR BENEFITS 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 AUTHORIZED INSURER,
 CORPORATION, HEALTH MAINTENANCE ORGANIZATION OR FRATERNAL BENEFIT SOCIE-
 TY FOR MORE INFORMATION;
   (I) WHETHER OR NOT THERE IS A 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 CANCELLATION 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 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 CANCEL THE POLICY;
   (N)  A  STATEMENT  THAT THE POLICYHOLDER WILL BE GIVEN AT LEAST NINETY
 DAYS NOTICE BEFORE ANY PREMIUM CHANGE TAKES EFFECT;
   (O) A STATEMENT THAT IF THE AUTHORIZED  INSURER,  CORPORATION,  HEALTH
 MAINTENANCE  ORGANIZATION OR FRATERNAL BENEFIT SOCIETY SEEKS TO INCREASE
 THE PREMIUM RATE, 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.  Section 1117 of the insurance law is amended by adding five new
 subsections (h), (i), (j), (k), and (l) 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 AUTHORIZED INSURER,  CORPORATION,  HEALTH  MAINTENANCE
 ORGANIZATION  OR  FRATERNAL  BENEFIT  SOCIETY  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 SUPERINTEN-
 DENT SHALL POST A PUBLIC NOTICE OF THE RATE FILING OR APPLICATION ON THE
 DEPARTMENT'S WEBSITE WITHIN  FOURTEEN  DAYS.  THE  SUPERINTENDENT  SHALL
 PROVIDE  FOR  A  PROCESS FOR THE PUBLIC TO PROVIDE COMMENTS ON SUCH RATE
 FILING OR APPLICATION ELECTRONICALLY OR IN WRITING FOR A PERIOD OF THIR-
 TY 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
 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.
 S. 2330--B                          3
 
   (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  AUTHORIZED  INSURER,  CORPORATION, HEALTH MAINTENANCE
 ORGANIZATION OR FRATERNAL BENEFIT SOCIETY SHALL NOTIFY POLICYHOLDERS AND
 CERTIFICATE HOLDERS OF SUCH DECISION NO LATER THAN NINETY 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.
   (L) THE PROVISIONS SET FORTH IN SUBPARAGRAPHS (G), (H), (I), (J), (K),
 (L),  (M),  (N), (O), AND (P) OF PARAGRAPH SIX OF SUBSECTION (B) OF THIS
 SECTION SHALL NOT APPLY TO POLICIES OR CERTIFICATES THAT ARE EXEMPT FROM
 PREMIUM RATE INCREASES.
   § 3. This act shall take effect on the first of January next  succeed-
 ing the date on which it shall have become a law, and shall apply to any
 rate filing submitted on or after such date.

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