NU Online News Service, Feb. 14, 3:12 p.m. – The Texas Department of Insurance is starting to publicize long-term care insurance rate rules it adopted in December 2001.
The rules implement model LTC insurance regulations approved by the National Association of Insurance Commissioners, Kansas City, Mo., in October 2000. The NAIC developed the model in an effort to prevent insurers from luring consumers with unrealistically low introductory LTC premiums, then demanding big rate increases.
Texas Insurance Commissioner Jose Montemayor has issued a press release emphasizing that insurers must comply with the Texas version of the LTC rate rules by July 1.
“Long-term care insurance is growing in popularity, but rate instability and disclosures concerning possible future rate increases have become serious problems,” Montemayor says in the release, which is posted on the Web at http://www.tdi.state.tx.us/commish/nr02142a.html