California lawmakers are trying to help the state’s insurance regulators pay more attention to long-term care insurance (LTCI) issuers.
Members of the California Senate last week passed Assembly Bill 1104 — the California Life and Health Insurance Guarantee Association bill — by a 39-0 vote.
AB 1104 Provisions
AB 1104 would let the state insurance commissioner charge an LTCI issuer a financial surveillance assessment of up to $1 million per year. The commissioner could use the money to pay for tracking LTCI issuers’ finances.
The actual size of the financial surveillance assessment would depend on how much the California Department of Insurance actually spends on analyzing LTCI issuers’ financial reports.
AB 1104 would also require any issuer that’s providing LTCI coverage for more than 10,000 people to file detailed LTCI performance disclosure reports with the insurance commissioner every year. The reports would be based on the National Association of Insurance Commissioners’ new Actuarial Guideline 51 standard.
AG 51 requires affected LTCI issuers to report on how many of the insureds need long-term care services, how many have died, and how many have dropped their policies.
A third provision in AB 1104 would add two members of the public to the board of the California Life and Health Insurance Guarantee Association, or CLHIGA. The insurance commissioner would appoint the two public members.
AB 1104 was introduced by state Assembly Majority Leader Ian Calderon, D-Whittier.
Members of the California Assembly approved the bill by a 77-0 vote in May.