NU Online News Service, April 19, 5:39 p.m. – The Texas Department of Insurance has issued a bulletin reminding long-term care insurers about new consumer-protection regulations that take effect July 1.
The bulletin, Commissioner’s Bulletin No. B-0020-02, discusses the nuts and bolts of complying with the Lone Star state’s new long-term care insurance rate increase and rate increase disclosure rules.
Texas based the rules on a model regulation recently approved by the National Association of Insurance Commissioners, Kansas City, Mo.
The Texas bulletin also discusses specific changes in long-term care insurance policy forms and certificates resulting from the new rules.
One change requires long-term care insurance forms and certificates to contain a provision describing “contingent nonforfeiture benefits.”
Texas requires long-term care insurers to offer all coverage purchasers the option to buy a “nonforfeiture benefit,” or a minimum benefit that policyholders get even if they let policies lapse.