MI HB5295

Amends the Insurance Code to restrict long-term care insurance premium increases to the cumulative change in the consumer price index for medical care beginning July 1, 2012.

Requires insurers to offer nonforfeiture benefits with the same coverage elements, eligibility, benefit triggers, and benefit length as coverage issued without such benefits.

Establishes contingent benefits upon policy lapse triggered when cumulative premium increases meet or exceed age-based thresholds ranging from 200% for ages 29 and under down to 10% for age 90 and over, with a 120-day grace period to avoid lapse.

Requires insurers to offer policyholders the option to reduce benefits, convert to paid-up status with shortened benefit periods, or accept a contingent benefit upon lapse when substantial premium increases occur.

Mandates written notice at least 45 days before any premium increase takes effect and establishes nonforfeiture credits equal to 100% of all premiums paid, with minimum benefits of 30 times the daily nursing home benefit amount at time of lapse.