CT SB00880

Redefines "qualifying event" for accelerated life insurance benefits to include: terminal illness expected to result in death within 12 months, conditions requiring extensive medical treatment to prevent death within 12 months, chronic confinement for 6+ months, inability to perform two or more activities of daily living without assistance, severe cognitive impairment, or chronic illness as defined under Internal Revenue Code sections 7702B and 101(g).

Expands the definition of "accelerated benefits" to clarify that certification of qualifying events can be made by physicians or advanced practice registered nurses licensed in the United States or other jurisdictions approved by the Insurance Commissioner.

Requires life insurance policies providing accelerated benefits based on qualifying events related to functional limitations or chronic illness to include a statement that "This policy is not a long-term care policy."

Clarifies disclosure requirements for insurers issuing accelerated benefits policies, including written disclosures at time of application and when benefits are requested, with emphasis on potential tax implications of accelerated benefit payments.

Effective date: October 1, 2017; amends Connecticut General Statutes Section 38a-457.