SB 575, as introduced, Liu. Long-term care insurance.
Existing law provides for the regulation of long-term care insurance by the Insurance Commissioner. Under existing law, the commissioner may require the administration by an insurer of the contingent benefit upon lapse as a condition of approval or acknowledgment of a rate adjustment for a block of business for which the contingent benefit upon lapse is not otherwise available. Under existing law, the insurer must notify policyholders and certificate holders of the contingent benefit upon lapse when required by the commissioner, as specified.
This bill, when a policyholder or certificate holder elects the contingent benefit upon lapse, would require the insurer to annually notify the policyholder or certificate holder and, if elected, at least one individual designated by the policyholder or certificate holder of the availability of the contingent benefit, the dollar amount of the contingent benefit, and the name, address, and telephone number of the insurer for questions about the contingent benefit. The bill would also require the insurer, within 90 days of receipt of notice that a policyholder or certificate holder elected the contingent benefit upon lapse, to mail and receive from each policyholder or certificate holder a form that allows the policyholder or certificate holder to submit one of the following: (1) a written designation of the name, address, and telephone number of at least one person, in addition to the policyholder or certificate holder who is to receive the annual notice described above, or (2) a waiver signed and dated by the policyholder or certificate holder electing not to designate additional persons to receive notice.
Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no.
The people of the State of California do enact as follows:
Section 10235.36 is added to the Insurance Code,
2to read:
(a) In the event a policyholder or certificate holder
4elects the contingent benefit upon lapse as described in Section
510235.35, the insurer shall annually notify the policyholder or
6certificate holder and, if elected, at least one individual designated
7by the policyholder or certificate holder pursuant to paragraph (1)
8of subdivision (b) by first-class United States mail, postage prepaid,
9of all of the following:
10(1) The availability of the contingent benefit held by the
11policyholder or certificate holder.
12(2) The dollar amount of the contingent benefit.
13(3) The name, address, and telephone number of the insurer
for
14questions about the contingent benefit.
15(b) Within 90 days of receipt of notice that a policyholder or
16certificate holder elects the contingent benefit upon lapse as
17described in Section 10235.35, the insurer shall mail and receive
18from each policyholder or certificate holder a form that allows the
19policyholder or certificate holder to submit one of the following:
20(1) A written designation listing the name, address, and
21telephone number of at least one individual, in addition to the
22policyholder or certificate holder, who is to receive annual notice
23as described in subdivision (a).
24(2) A waiver signed and dated by the policyholder or certificate
25holder electing not to designate additional persons to receive notice.
26The required waiver shall read as follows:
28“I understand that I have the right to designate at least one person
29other than myself to receive annual notification related to the
30contingent benefit retained under this long-term care insurance
31policy. I elect not to designate any person other than myself to
32receive the notice.
33______________________________________ _________________
P3 1Signature of Policyholder or Certificate Holder Date”
2(c) The insurer shall notify the policyholder or certificate holder
3at least once every two years of the right to change the election
4described in subdivision (b).
O
99