Report Title:

LTC Insurance; Disclose Possible Rate Increases

 

Description:

Requires long-term care insurance policies or certificates issued in Hawaii after 12/31/2001 that do not guarantee against future premium increases to include disclosure that premium rates may rise based on claims incurred by all policyholders and to state any limitations on future rate increases.

HOUSE OF REPRESENTATIVES

H.B. NO.

397

TWENTY-FIRST LEGISLATURE, 2001

 

STATE OF HAWAII

 


 

A BILL FOR AN ACT

 

relating to long-term care insurance.

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

SECTION 1. Chapter 431, Hawaii Revised Statutes, is amended by adding a new section to article 10H to be appropriately designated and to read as follows:

"§431:10H-    Premium rate increase disclosure. For any long-term care insurance policy or certificate issued or delivered in this State after December 31, 2001, that does not guarantee to a policyholder that the original premium will not increase over time, the following language or substantially similar language shall be included on the cover page of the policy or certificate in at least ten-point bold type:

"This policy has premium rates that may rise from time to time for all policyholders based on the claims incurred by all policyholders. Any representation that your rates will not rise is unauthorized and should not be relied upon. Limitations on future rate increases, if there are any, should be stated immediately below this disclosure.""

SECTION 2. If any provision of this Act, or the application thereof to any person or circumstance is held invalid, the invalidity does not affect other provisions or applications of the Act, which can be given effect without the invalid provision or application, and to this end the provisions of this Act are severable.

SECTION 3. New statutory material is underscored.

SECTION 4. This Act shall take effect upon its approval.

INTRODUCED BY:

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