ACLI Responds To New York Times On Long-Term Care Insurance

“Even the “Industry Snapshot” featured alongside the New York Times article shows that consumer complaints filed with other major carriers constitute 0.00 – 0.03 percent as a share of total policies.

“Still, even one legitimate complaint is one too many, and when any are received, companies must and do treat them seriously.

“The American Council of Life Insurers, whose member companies account for the vast majority of long-term care coverage in the United States, supports enactment and enforcement of National Association of Insurance Commissioners (NAIC) models like the Unfair Life, Accident and Health Claims Settlement Practices Model Act and Regulation, which provides guidelines for the payment of claims, and the NAIC Long-Term Care Insurance Model Act and Regulation that includes strong consumer protections. In addition, the Long-Term Care Model Regulation requires an annual reporting of denied claims. We encourage the states to monitor these reports and if the reports show unfair trade practices, regulators should take appropriate action. These model acts and regulations provide the muscle that states need to eliminate the concerns identified in the article.

“Long-term care insurance is a crucial component of retirement planning for Americans. With 77 million baby boomers ready to retire, the need for long-term care services will escalate as will the cost of these services. Long-term care insurance is the most effective way for individuals to plan for these future expenses. Long-term care insurance carriers believe in the virtue of their mission and recognize the need to provide good service to current policyholders and to demonstrate the industry’s integrity to future policyholders.”

The American Council of Life Insurers (ACLI) is a Washington, D.C.-based trade association whose 373 member companies account for 93 percent of the life insurance industry’s total assets in the United States, 91 percent of life insurance premiums and 95 percent of annuity considerations. In addition to life insurance and annuities, ACLI member companies offer pensions, including 401(k)s, long-term care insurance, disability income insurance and other retirement and financial protection products, as well as reinsurance. ACLI’s public Web site can be accessed at www.acli.com .