HB 1055 - Life Insurance Summary

• Entitles insureds who have been nursing home residents for at least 3 months and are expected to remain there until death to accelerated payment of death benefits, with amounts determined using actuarially appropriate methods.

• Requires all life insurers in Florida to offer applicants policies or riders providing accelerated death benefit payments for terminal illness or long-term nursing home residency, with existing policyholders receiving such riders by July 1, 2013.

• Mandates that insureds applying for Medicaid for long-term care must determine the fair market value of their life insurance policy and spend down all proceeds exclusively for long-term care services through an irrevocable account before qualifying for Medicaid.

• Requires long-term care benefit plans to pay any remaining unused monthly benefit balance to the insured's estate if death occurs before account spend-down, and guarantee a final funeral expense benefit of $5,000 or 5 percent of face value (whichever is less) to the estate.

• Requires insurers to provide written notice to policyholders age 65 or older or those known to be terminally or chronically ill when they request policy surrender, accelerated death benefits, or face policy lapse, explaining alternatives and available options, with violations treated as deceptive trade practices.