AMENDED
IN SENATE
SENIOR
SENATE PROPOSAL NO. 1
INTRODUCED
BY SENATOR LEVY
LEGISLATIVE
COUNSEL'S DIGEST
SP
1: LONG-TERM INSURANCE POLICIES.
UNDER
EXISTING LAW, EVERY LONG-TERM CARE INSURANCE POLICY ISSUED TO AN INDIVIDUAL IN
THE STATE OF
THIS
MEASURE WOULD MEMORIALIZE THE LEGISLATURE AND THE GOVERNOR TO ENACT LEGISLATION
THAT WOULD REQUIRE EVERY INSURER ISSUING LONG-TERM CARE INSURANCE POLICIES AND
CERTIFICATES IN THIS STATE TO OFFER AT LEAST ONE NONCANCELABLE POLICY THAT
PROVIDES FIXED PREMIUM RATES THROUGHOUT THE LIFE OF THE POLICY AND THE LIFE OF
THE INSURED. IT WOULD ALSO
MEMORIALIZE THE LEGISLATURE AND THE GOVERNOR TO ENACT LEGISLATION THAT WOULD
REQUIRE EVERY LONG-TERM CARE INSURANCE POLICY AND CERTIFICATE ISSUED IN THIS
STATE TO CONTAIN AN APPROPRIATELY CAPTIONED RENEWABILITY PROVISION THAT CLEARLY
DESCRIBES THE INITIAL TERM OF THE COVERAGE AND THE CONDITIONS FOR RENEWAL.
EXISTING
LAW ALSO REQUIRES THAT SPECIFIED INSURANCE POLICIES AND RELATED MATERIALS BE
SUBMITTED TO THE DEPARTMENT OF INSURANCE FOR FORMAL APPROVAL.
THIS
MEASURE WOULD MEMORIALIZE THE LEGISLATURE AND THE GOVERNOR TO ENACT LEGISLATION
THAT WOULD PROVIDE THAT FORMAL APPROVAL OF APPROPRIATE OFFICIALS WITHIN THE
DEPARTMENT OF INSURANCE BE REQUIRED FOR CERTAIN PROVISIONS, TO THE EXTENT THAT
THESE PROVISIONS ARE NOT IN CONFLICT WITH OR DUPLICATED BY EXISTING LAW.
VOTE:
MAJORITY.
SP 1:
RELATING TO LONG-TERM CARE INSURANCE POLICIES
WHEREAS,
MANY INSURERS SELLING LONG-TERM CARE INSURANCE HAVE ISSUED POLICIES AND
CERTIFICATES AT VERY LOW PREMIUM RATES, ONLY TO LATER RAISE PREMIUM RATES
DRASTICALLY; AND
WHEREAS,
LONG-TERM CARE INSURANCE PREMIUM RATES ARE INADEQUATELY REGULATED UNDER CURRENT
STATE LAW; AND
WHEREAS,
THE ACTIONS OF LONG-TERM CARE INSURERS IN RAISING PREMIUM RATES IN A DRASTIC AMD
UNEXPECTED MANNER HAVE CAUSED MANY SENIOR CITIZENS TO EITHER FORFEIT THEIR
LONG-TERM CARE INSURANCE POLICIES OR SUBSTANTIALLY REDUCE THEIR BENEFITS; AND
WHEREAS,
PAST LEGISLATION, WHICH HAS RECEIVED THE SUPPORT OF MANY SENIOR CITIZENS AND
OTHER CONCERNED INTEREST GROUPS, HAS BEEN INTRODUCED TO CORRECT THIS CONSUMER
DECEPTION, BUT HAS FAILED TO BE ENACTED INTO LAW AFTER BEING OPPOSED BY THE
INSURANCE INDUSTRY; NOW, THEREFORE, BE IT
RESOLVED,
BY THE SENIOR SENATE AND THE SENIOR ASSEMBLY JOINTLY, THAT THE SENIOR
LEGISLATURE OF THE STATE OF CALIFORNIA AT ITS 2002 REGULAR SESSION, A MAJORITY
OF THE MEMBERS VOTING THEREFOR, HEREBY PROPOSES THAT LEGISLATION BE ENACTED THAT
WOULD REQUIRE EVERY INSURER ISSUING LONG-TERM CARE INSURANCE POLICIES AND
CERTIFICATES IN THIS STATE TO OFFER AT LEAST ONE NONCANCELABLE POLICY THAT
PROVIDES FIXED PREMIUM RATES THROUGHOUT THE LIFE OF THE POLICY AND THE LIFE OF
THE INSURED; AND BE IT FURTHER
RESOLVED,
THAT EVERY LONG-TERM CARE INSURANCE POLICY AND CERTIFICATE ISSUED IN THIS STATE
CONTAIN AN APPROPRIATELY CAPTIONED RENEWABILITY PROVISION THAT CLEARLY DESCRIBES
THE INITIAL TERM OF COVERAGE AND THE CONDITIONS FOR RENEWAL; AND BE IT FURTHER
RESOLVED,
THAT FORMAL APPROVAL OF APPROPRIATE OFFICIALS WITHIN THE DEPARTMENT OF INSURANCE
BE REQUIRED FOR ALL OF THE FOLLOWING PROVISIONS, TO THE EXTENT THAT THESE
PROVISIONS ARE NOT IN CONFLICT WITH OR DUPLICATED BY EXISTING LAW:
(A)
INDIVIDUAL AND GROUP POLICY INSURANCE FORMS AND CERTIFICATES.
(B)
OUTLINES OF COVERAGE.
(C)
NOTICES AND DOCUMENTS REQUIRED TO BE GIVEN AT THE TIME OF THE SOLICITATION.
(D)
ADVERTISING MATERIALS.
(E)
RATES AND PREMIUMS FOR POLICIES AND CERTIFICATES; AND BE IT FURTHER
RESOLVED,
THAT THE SENIOR LEGISLATURE OF THE STATE OF
RESOLVED,
THAT A COPY OF THIS MEASURE BE TRANSMITTED TO THE PRESIDENT PRO TEMPORE OF THE
SENATE, THE SPEAKER OF THE ASSEMBLY, AND THE GOVERNOR OF THE STATE OF
CALIFORNIA.
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