SB 1874 Summary

• Establishes inflation protection coverage requirements for policies under the Oklahoma Long-Term Care Insurance Partnership Program in compliance with Section 6021 of the Deficit Reduction Act of 2005.

• Requires policies for individuals under age 61 to provide at least 3% annual inflation protection compounded annually, or an alternative rate based on consumer price index changes.

• Requires policies for individuals ages 61-75 to provide at least 3% simple annual inflation protection or a rate based on annual consumer price index.

• Permits but does not require inflation protection coverage for individuals age 76 and older at policy purchase.

• Allows the Insurance Commissioner to approve alternative inflation indexes or insurer-developed programs that meet the intent of the requirements.

• Effective date: November 1, 2014.