CA AB 999: Restricts LTCi In Force Premium Hikes
“The rising cost of long-term care insurance is one of the most pressing issues facing senior consumers today,” said State Insurance Commissioner Dave Jones. “What’s most disturbing is the size of long-term care rate increases. They threaten the ability of many seniors, especially those on fixed incomes, to maintain or purchase long-term care insurance.”
Key Features:
- Protects consumers from excessive premium rate volatility and increases transparency between insurer and consumer.
- Gives consumers the chance to make a more informed policy decision by allowing them to review language before making a purchase.
- Limits rate increases to once every five years for policies that have been in place since before 2000, and once every 10 years for policies signed since that date.
- Would prevent insurers from passing poor investment returns through to taxpayers.
- Eliminates the practice of insurers “cherry-picking” a small group of policies to justify large rate increases.
California Insurance Commissioner and bill sponsor Dave Jones praised this recently passed bill as “necessary legislation” when it came to protecting seniors. The bill was originally introduced in 2011 by Assembly Aging and Long-Term Care Committee Chair Mariko Yamada (D-Davis). The bill now goes to Governor Jerry Brown for signing.
For complete text of the bill, click here: AB 999
