Connecticut SB 478: AN ACT CONCERNING CONSUMER SAFEGUARDS FOR LONG-TERM CARE POLICIES.

Bill Text

Substitute Senate Bill No. 478 
 
Public Act No. 26-93 
 
 
AN  ACT  CONCERNING  CONSUMER  SAFEGUARDS  FOR  LONG-
TERM CARE POLICIES. 
Be  it  enacted  by  the  Senate  and  House  of  Representatives  in  General 
Assembly convened: 
 
Section 1. Subsection (b) of section 38a-501 of the general statutes is 
repealed and the following is substituted in lieu thereof (Effective July 1, 
2026): 
(b) (1) No  insurance  company,  fraternal  benefit  society,  hospital 
service  corporation,  medical  service  corporation  or  health  care  center 
may  deliver  or  issue  for  delivery  any  long-term  care  policy  that  has  a 
loss  ratio  of  less  than  sixty  per  cent  for  any  individual  long-term  care 
policy. An issuer shall not use or change premium rates for a long-term 
care policy unless the  rates have been filed  with and approved by the 
commissioner. Any rate filings or rate revisions shall demonstrate that 
anticipated claims in relation to premiums when combined with actual 
experience  to  date  can  be  expected  to  comply  with  the  loss  ratio 
requirement  of  this  section.  A  rate  filing  shall  include  the  factors  and 
methodology  used  to  estimate  irrevocable  trust  values  if  the  policy 
includes  an  option  for  the  elimination  period  specified  in  subdivision 
(1) of subsection (a) of this section. 
(2) An issuer shall file an annual report, not later than May first, with 

Substitute Senate Bill No. 478 
 
Public Act No. 26-93 2 of 7 
 
the Insurance Commissioner on incurred losses and actual paid losses 
for  each  long-term  care  policy  issued  in  the  state.  The  Insurance 
Commissioner, in consultation with the Secretary of the Office of Policy 
and  Management,  shall,  not  later  than  October  1, 2027,  and  annually 
thereafter, file a report, in accordance with the provisions of section 11-
4a, with the joint standing committees of the General Assembly having 
cognizance of matters relating to aging, human services and insurance 
and real estate on the incurred loss and actual paid loss for each long-
term care policy in the past three calendar years. Such report shall state 
which policies have been precertified pursuant to section 38a-475. Data 
in  such  report  shall  be  aggregated  and  deidentified.  The  Insurance 
Department   shall   include   a   link   to   the   report   on   the   Insurance 
Department's Internet web site, and the Secretary of the Office of Policy 
and Management shall include a link to the report on the Internet web 
site of the Office of Policy and Management. 
(3)  Not  later  than  July  1,  2027,  the  Insurance  Commissioner,  in 
consultation with the Secretary of the Office of Policy and Management, 
may file a report, in accordance with the provisions of section 11-4a and 
within available appropriations, with the joint standing committees of 
the  General  Assembly  having  cognizance  of  matters  relating  to  aging, 
human  services  and  insurance  and  real  estate  on  the  feasibility  and 
effect  on  access  to  long-term  care  insurance  (A)  of  a  requirement  that 
issuers  of  long-term  care  insurance  policies  provide  policyholders  an 
opportunity  to  cancel  such  insurance  and  obtain  full  refunds  of  any 
premiums paid since the start of the policies whenever such issuer files 
for  rate  increases  that  exceed  the  rate  of  inflation;  (B)  the  level of  rate 
increases  that  can  be  approved  by  the  Insurance  Commissioner  if  any 
insurance    company,    fraternal    benefit    society,    hospital    service 
corporation,   medical   service   corporation   or   health   care   center   is 
required  to  include,  as  part  of  any  long-term  care policy  rate  increase 
request; and  (C)  information  related  to  the  reinsurance  market  in  the 
state, including any recent impacts the reinsurance market has had on 

Substitute Senate Bill No. 478 
 
Public Act No. 26-93 3 of 7 
 
the  availability  and  cost  of  long-term  care  insurance  policies  and  the 
economic  impact  to  the  state.  Data  in  such  report  shall  be  aggregated 
and deidentified. 
[(2)] (4) (A) Any   insurance   company,   fraternal   benefit   society, 
hospital service corporation, medical service corporation or health care 
center that files a rate filing for an increase in premium rates for a long-
term  care  policy  that  is  for  twenty  per  cent  or  more  shall  spread  the 
increase over a period of not less than three years and not file a rate filing 
for  an  increase  in  premium  rates  for  the  long-term  care  policy  during 
the  period  chosen.  Such  company,  society,  corporation  or  center  shall 
use a periodic rate increase that is actuarially equivalent to a single rate 
increase and a current interest rate for the period chosen. 
(B) Prior  to  implementing  a  premium  rate  increase,  each  such 
company, society, corporation or center shall: 
(i) N