CA SB1046

Requires long-term care insurance policyholders to have the right to reduce coverage and lower premiums at any time after the first year, with options including reducing lifetime maximum benefits, daily/weekly/monthly benefit amounts, converting policy types, or reducing/eliminating inflation protection adjustments.

Mandates that reduced coverage premiums be based on the original issue age and underwriting class and remain consistent with the policy's approved rate table for all policies regardless of original issue date.

Requires insurers with inflation protection provisions to allow policyholders choosing to reduce benefits to either continue inflation adjustments at the same rate or maintain current benefit amounts while eliminating adjustments.

Obligates insurers to provide written notice at least 30 days before policy lapse, offering options to reduce coverage and lower premiums, with reinstatement without underwriting if the policyholder accepts the reduced coverage.

When premiums increase, policyholders must be offered at least one option to reduce coverage and maintain a premium equivalent to the rate in effect before the increase, with disclosure that reduction options may have unequal value and impact partnership program status where applicable.