View source for The Consumer Awareness Act of Future Premium Rates Exposed

The '''[[:media:5M6-The_Consumer_Awareness_Act_of_Future_Premium_Rates_Exposed.pdf|Consumer Awareness Act of Future Premium Rates for Long-Term Care]]''' is listed under ALEC's [https://www.sourcewatch.org/index.php/ALEC_Health_and_Human_Services_Task_Force Health and Human Services Task Force] and was included in the 1995 ALEC Sourcebook of American State Legislation. See also [[Long-Term Care Insurance Act Exposed | Long-Term Care Insurance Act.]] {{AEX2011}}

==ALEC Bill Text==

Summary

This bill is to be introduced in conjunction with the Long-Term Care Insurance Act. Its
purpose is to protect the consumer from unknowing increases in future premium
rates when purchasing long-term care insurance policies.

ALEC's bill stipulates that all long-term care insurance policies must state that the
policy premium rates may rise based on claims incurred by all policyholders. Any
representation that the policyholder's rates will not rise is unauthorized and should not
be relied upon.


Model Legislation

{Title, enacting clause, etc.}

<u>Section 1.</u>

This Act may be cited as The Consumer Awareness Act of Future Premium
Rates For Long-Term Care Insurance.

<u>Section 2.</u>

For any Long Term Care insurance policy or certificate issued or delivered
in this state that does not guarantee to a policyholder that the original premium rate
will not increase over time, the following language or substantially similar language
must be disclosed in bold ten-point type on the cover page of the policy or certificate:

"This policy has premium rates that may rise from time to time for all policyholders
based on the claims incurred by all policyholders. Any representation that your rates
will not rise is unauthorized and should not be relied upon. Limitations on future rate
increases, if there are any, should be stated immediately below this disclosure."

<u>Section 3. {Severability Clause}</u>

<u>Section 4. {Repealer Clause}</u>

<u>Section 5. {Effective Date}</u>


1995 Sourcebook of American State Legislation