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H.R. 1095: Missouri Lawmaker Offers LTCI Rate Bill

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An insurance agent who serves in the Missouri House has introduced H.R. 1095, a new version of a long-term care insurance (LTCI) rate review bill he introduced in March.

The agent, Rep. Paul Wieland, R-Imperial, Mo., says H.R. 1095 would require an LTCI issuer to get approval from the director of the Missouri Department of Insurance for LTCI risks and rates.

Wieland pre-filed the bill for the legislative session that is set to start Jan. 4, 2012.

The older version of the bill, H.B. 988, died without getting a committee hearing.

Wieland, the owner of Wieland Insurance Group L.L.C., High Ridge, Mo., is a member of the state House insurance policy committee.

The text of the new bill states that, “Rates for long-term care insurance shall not be excessive, inadequate, or unfairly discriminatory.”

The bill would prohibit an insurer from increasing LTCI rates by more than 15% during any annual period, “unless the insurer can clearly document a material and significant change in the risk characteristics of all its in force long-term care insurance policies or certificates,” according to the bill text.

When looking at rates, an LTCI issuer and the insurance director would have to consider factors such as past and prospective loss experience, past and prospective expenses, and adequacy of contingency reserves.

The insurance director would have 45 days to approve or disapprove an LTCI rate filing.

The director would have to give reasons for disapproving an LTCI rate filing in rating.


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