Complete Bill History



Senate File 38       



                                    SENATE FILE       
                                    BY  BOLKCOM, SODDERS,
                                        BEALL, McCOY, JOCHUM,
                                        GRONSTAL, QUIRMBACH,
                                        DEARDEN, HORN, TAYLOR,
                                        HATCH, BRASE, SENG,
                                        DANIELSON, DOTZLER,
                                        DVORSKY, RAGAN,
                                        SCHOENJAHN, and
                                        PETERSEN

                                         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:
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PAG LIN



  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.
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