Senate Bill 1046 Summary

• Effective January 1, 2022, insurers must be authorized to sell long-term care insurance and at least one other line of insurance to deliver, issue, renew, or amend long-term care policies in Connecticut.

• Requires the Insurance Commissioner to develop and prescribe a minimum set of affordable benefit options that must be offered when insurers file rate increases of 20 percent or more for long-term care policies.

• Mandates that insurers filing premium rate increases of 20 percent or more must spread the increase over at least three years, use actuarially equivalent periodic increases, and cannot file additional rate increases during that period.

• Before implementing rate increases, insurers must notify policyholders at least 30 days in advance and provide the option to reduce benefits or switch to the minimum affordable benefit options developed by the commissioner.

• Establishes minimum loss ratios of 60 percent for individual policies and 65 percent for group policies, with full written disclosure requirements about benefits, limitations, and past rate increase history.