Complete Bill History
Senate File 38
BY BOLKCOM, SODDERS,
BEALL, McCOY, JOCHUM,
DEARDEN, HORN, TAYLOR,
HATCH, BRASE, SENG,
A BILL FOR
1 An Act providing for standardized provisions and format and a
2 consumer guide for long=term care insurance policies and
3 including applicability provisions.
4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
TLSB 1384XS (2) 85
1 1 Section 1. Section 514G.105, Code 2013, is amended by adding
1 2 the following new subsections:
1 3 NEW SUBSECTION. 5A. Standard provisions and format.
1 4 a. The commissioner shall adopt rules establishing standard
1 5 provisions for terms and benefits required to be included in a
1 6 long=term care insurance policy advertised, marketed, offered,
1 7 delivered, or issued for delivery in this state. The rules
1 8 shall establish a standard format for such long=term care
1 9 insurance policies to facilitate ease of comparison of the
1 10 various policies by consumers.
1 11 b. The commissioner shall review each policy of long=term
1 12 care insurance prior to the policy being advertised, marketed,
1 13 offered, delivered, or issued for delivery in this state to
1 14 ensure that the policy complies with the requirements of this
1 15 subsection and rules adopted pursuant to this subsection.
1 16 NEW SUBSECTION. 7A. Consumer guide.
1 17 a. A consumer guide, as prescribed by the commissioner
1 18 by rule, shall be delivered to a prospective applicant
1 19 for long=term care insurance at the time of the initial
1 20 solicitation for coverage.
1 21 (1) In the case of producer solicitations, a producer shall
1 22 deliver the consumer guide to a prospective applicant prior to
1 23 the presentation of an application or enrollment form.
1 24 (2) In the case of direct response solicitations, the
1 25 consumer guide shall be presented in conjunction with any
1 26 application or enrollment form.
1 27 (3) In the case of a policy issued to a group as described
1 28 in section 514G.103, subsection 9, paragraph "a", a consumer
1 29 guide is not required to be delivered to the applicant,
1 30 provided that the information described in paragraph "b" of this
1 31 subsection is contained in other enrollment materials provided.
1 32 Upon request such other enrollment materials shall be made
1 33 available to the commissioner.
1 34 b. The consumer guide shall include a description of the
1 35 standard terms, benefits, and format required for a long=term
2 1 care insurance policy in this state. The commissioner of
2 2 insurance may by reference adopt or permit the use of the
2 3 long=term care insurance consumer guide developed by the
2 4 national association of insurance commissioners, the blue
2 5 cross and blue shield association, or the health insurance
2 6 association of America, provided that the consumer guide that
2 7 is adopted or permitted to be used by reference meets all of
2 8 the requirements of this subsection.
2 9 Sec. 2. APPLICABILITY. This Act applies to long=term care
2 10 insurance policies advertised, marketed, offered, delivered, or
2 11 issued for delivery in this state on or after July 1, 2013.
2 12 EXPLANATION
2 13 This bill requires the commissioner of insurance to adopt
2 14 rules establishing standard provisions for terms and benefits
2 15 required to be included in a long=term care insurance policy
2 16 advertised, marketed, offered, delivered, or issued for
2 17 delivery in this state. The rules must establish a standard
2 18 format for such policies so that consumers can easily compare
2 19 the various policies offered. The commissioner is required to
2 20 review each policy of long=term care insurance to ensure that
2 21 the policy complies with these requirements.
2 22 The bill also requires the commissioner to adopt rules
2 23 concerning a consumer guide to be delivered to prospective
2 24 applicants for long=term care insurance at the time of
2 25 solicitation, application, or enrollment. The guide must
2 26 include a description of the required standard terms, benefits,
2 27 and format in long=term care insurance policies in this state.
2 28 The commissioner may by reference adopt or permit the use
2 29 of a consumer guide developed by the national association
2 30 of insurance commissioners, the blue cross and blue shield
2 31 association, or the health insurance association of America, so
2 32 long as the guide meets all the requirements of the bill.
2 33 The bill is applicable to long=term care insurance policies
2 34 advertised, marketed, offered, delivered, or issued for
2 35 delivery in this state on or after July 1, 2013.
LSB 1384XS (2) 85
Complete Bill History