Bill Text: NY A02941 | 2019-2020 | General Assembly | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Requires long term care insurance carriers who propose to raise long term care insurance premiums to obtain prior approval of the superintendent of financial services.

Spectrum: Moderate Partisan Bill (Democrat 9-2)

Status: (Introduced - Dead) 2020-01-08 - referred to insurance [A02941 Detail]

Download: New_York-2019-A02941-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________
                                          2941
                               2019-2020 Regular Sessions
                   IN ASSEMBLY
                                    January 28, 2019
                                       ___________
        Introduced by M. of A. D'URSO -- read once and referred to the Committee
          on Insurance
        AN  ACT  to  amend the insurance law, in relation to requiring long term
          care insurance carriers who propose to raise long term care  insurance
          premiums  to  obtain prior approval of the superintendent of financial
          services
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
     1    Section 1. Paragraph 3 of subsection (f) of section 1117 of the insur-
     2  ance  law,  as  added  by chapter 245 of the laws of 1986, is amended to
     3  read as follows:
     4    (3) the premium rates for the  long  term  care  plan  are  reasonably
     5  related to the benefits provided, and are self-supporting, as determined
     6  by the superintendent pursuant to subsection (h) of this section; and
     7    §  2.    Section  1117 of the insurance law is amended by adding a new
     8  subsection (h) to read as follows:
     9    (h) An insurer desiring to increase or decrease premiums for any poli-
    10  cy subject to this section shall submit a rate filing or application  to
    11  the  superintendent.    An  insurer  shall  send  written  notice of the
    12  proposed rate adjustment, including the specific  change  requested,  to
    13  each  policy holder and certificate holder affected by the adjustment on
    14  or before the date the rate filing or application is  submitted  to  the
    15  superintendent. The notice shall prominently include mailing and website
    16  addresses  for both the department of financial services and the insurer
    17  through which a person may, within thirty days from the  date  the  rate
    18  filing  or  application  is submitted to the superintendent, contact the
    19  department of financial services or insurer to receive additional infor-
    20  mation or to submit written comments  to  the  department  of  financial
    21  services  on  the  rate  filing or application. The superintendent shall
    22  establish a process to post on such department's website,  in  a  timely
    23  manner,  all  relevant  written  comments  received  pertaining  to rate
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD08362-01-9
        A. 2941                             2
     1  filings or applications. The insurer shall provide a copy of the  notice
     2  to  the  superintendent  with the rate filing or application. The super-
     3  intendent shall immediately cause the notice to be posted on the depart-
     4  ment  of financial services' website. The superintendent shall determine
     5  whether the filing or application shall become effective as filed, shall
     6  become effective as modified, or shall be disapproved.  The  superinten-
     7  dent  may  modify  or  disapprove  the rate filing or application if the
     8  superintendent finds that  the  premiums  are  unreasonable,  excessive,
     9  inadequate,  or  unfairly discriminatory, and may consider the financial
    10  condition of the insurer when approving, modifying or  disapproving  any
    11  premium  adjustment.  The  determination  of the superintendent shall be
    12  supported by sound actuarial  assumptions  and  methods,  and  shall  be
    13  rendered in writing between thirty and sixty days from the date the rate
    14  filing  or  application  is  submitted to the superintendent. Should the
    15  superintendent require additional information from the insurer in  order
    16  to make a determination, the superintendent shall require the insurer to
    17  furnish  such  information,  and  in such event, the sixty days shall be
    18  tolled and shall resume as of the date the insurer furnishes the  infor-
    19  mation  to the superintendent. If the superintendent requests additional
    20  information less than ten days from the expiration  of  the  sixty  days
    21  (exclusive  of  tolling),  the  superintendent  may extend the sixty day
    22  period an additional twenty days to make a determination.  The  applica-
    23  tion  or  rate  filing will be deemed approved if a determination is not
    24  rendered within the time allotted under this section. An  insurer  shall
    25  not  implement  a  rate  adjustment unless the insurer provides at least
    26  sixty days  advance  written  notice  of  the  premium  rate  adjustment
    27  approved  by  the  superintendent  to each policy holder and certificate
    28  holder affected by the rate adjustment.
    29    § 3. This act shall take effect immediately.