State insurance regulators might update a document that influences how many states handle insurance company failures.
The Receivership Model Law Working Group, part of the Financial Condition Committee at the National Association of Insurance Commissioners, now has a long-term care insurance issuer insolvency project on its official to-do list.
The Financial Condition Committee recently approved a set of 2017 charges that call for the working group to “evaluate and consider long-term care… insurance and the impact of (long-term care) insurer insolvencies on the Life and Health Insurance Guaranty Association Model Act (Number 520),” according to a meeting summary report.
The committee task force in charge of the Receivership Model Law Working Group told it to ask “interested regulators and interested parties to submit suggested issues, implications and possible solutions regarding (long-term care) insurance in receivership practices and Model Number 520.”
The working group has now posted an official request for comments and recommendations. Proposals are due Jan. 31.
Some have suggested that long-term care insurer insolvencies may be of interest to health insurers as well as to long-term care insurance issuers, because some states treat long-term care insurance as a health product and make health insurers share in the cost of helping failed long-term care insurance issuers’ insureds.
NAIC is a group for state insurance regulators. Its models do not normally have a direct effect on state laws or regulations, but states often start with NAIC models when developing their own insurance laws and regulations.
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