Two advocacy groups are asking state insurance regulators to do more to protect consumers against long-term care insurance premium increases.
The groups want regulators to create new conversion rights for any LTCI policyholder who has held a policy 10 years or more.
If an LTCI policy rate increase occurs after a consumer has owned a policy for 10 or more years, the consumer should be able to convert to a paid-up policy with benefits equal to the amount of premiums paid, the groups say.
Bonnie Burns of California Health Advocates and Amy Bach of United Policyholders have included that proposal in a letter sent to the Senior Issues Task Force at the National Association of Insurance Commissioners (NAIC).
Burns and Bach were commenting on a draft of LTCI rate increase model revisions that the task force will talk about this weekend at the NAIC’s fall meeting in Washington.
Earlier, Burns and Bach suggested that LTCI policyholders should get nonforfeiture benefits when rates increase 10 percent or more.
Members of the task force said that proposal was impractical.