Residents of California should be prepared to see disability insurance costs skyrocket if new requirements proposed by the California Department of Insurance take effect.[@@]
Actuaries at Milliman, Seattle, make that prediction in a report sponsored by America’s Health Insurance Plans, Washington, a health insurance trade group that strongly opposes the California regulators’ proposal.
California regulators have ordered UnumProvident Corp., Chattanooga, Tenn., to respond to waves of complaints about its disability insurance claims-handling practices to respond by taking steps to change its contracts.
Recently, California insurance regulators told insurers that they want all group disability carriers operating in the state to take steps such as eliminating contract clauses that appear to give companies unlimited discretion over claim decisions; adopting a more liberal definition of “total disability”; and cutting mandatory rehabilitation requirements.