CT HB05442

Premium rate increases of 20% or more on long-term care insurance policies must be spread over a minimum of three years with annual increases capped at 7% per year.

Insurers must use periodic rate increases that are actuarially equivalent to a single rate increase and apply current interest rates for the chosen period.

Insurers must notify policyholders at least 30 calendar days before implementation and offer the option to reduce policy benefits to lower premiums based on the new rate schedule.

Policyholders who do not elect benefit reductions and do not cancel within the notice period are automatically deemed to have retained existing policy benefits.

Amendments apply to both individual long-term care policies (section 38a-501) and group certificates (section 38a-528), effective October 1, 2016.