FL H0589

Establishes minimum loss ratio of 85 percent for health insurance forms, Medicare supplement policies, and long-term care insurance policies to ensure benefits are reasonable in relation to premiums.

Amends procedures for the Office of Insurance Regulation to ascertain the relationship between benefits and premium rates for various health insurance forms, including those issued primarily to individuals age 65 and older.

Requires annual filings by insurers demonstrating that premium rates charged are supported by benefits, with allowance for extensions up to 30 days and penalties including policy issuance discontinuation for non-compliance within 60 days.

Specifies that Medicare supplement individual policies issued on or after October 1, 2010 must maintain at least 85 percent loss ratio, replacing the prior 65 percent standard for policies issued after July 1, 1989.

Requires long-term care insurance policies to maintain minimum loss ratios of at least 85 percent and establishes reserve standards through commission rulemaking to ensure benefits are reasonable in relation to premiums.