Members of the California Insurance Committee have voted 5-3 to approve Assembly Bill 999, a bill that would affect how long-term care insurance (LTCI) carriers go about increasing rates in California.
The bill would limit the ability of LTCI carriers to take investment returns into account when changing prices on in-force policies.
A.B. 999 also would limit the ability of an LTCI carrier to use the claims for a relatively small group of policyholder to justify rate increase requests, backers say. An insurer would have to use the experience for all similar LTCI policy forms issued and retained by an insurer and its affiliates to justify requests for rate increases.
Another provision would require an insurer to let a consumer see the LTCI policy language before the consumer buys the policy. An insurer would have to make a copy of a policy form or certificate form available within 15 calendar days after the consumer asked to see it.
The bill already has been approved by the California Assembly. The bill still must be approved by the Senate Appropriations Committee before it can have a shot at going to the Senate floor.
The bill was introduced by Assemblymember Mariko Yamada, D-Davis, Calif.