RD2 - Long-Term Care Insurance Reporting / Disclosure Requirements Study (HB 1511)

Executive Summary:

Authority for Study/Organization of Report

House Bill (HB) 1511, which was passed by the 2000 Session of the General Assembly, directs the Joint Commission on Health Care (JCHC) and the Bureau of Insurance (Bureau) to study two specific issues regarding long-term care insurance policies. The second enactment clause of HB 1511 directs the JCHC and the Bureau to:

• study the work of the National Association of Insurance Commissioners' study group on reporting requirements and comparative disclosures of information for long-term care insurance policies; and

• survey other states with respect to reporting requirements and disclosure of information.

HB 1511 requires the JCHC and Bureau to report to the members of the House Committee on Corporations, Insurance and Banking and the Senate Committee on Commerce and Labor prior to the 2001 Session of the General Assembly. A copy of HB 1511 is provided at Appendix A.

This Report Is Presented In Four Major Sections

This first section discusses the authority for the study and the organization of the report. Section II provides background information on Virginia's current statutory and regulatory provisions related to long-term care insurance, reviews the provisions of HB 1511, and identifies a number of changes being made to the current regulations. The third section reviews the work of the National Association of Insurance Commissioners on potential revisions to its model regulations pertaining to long-term care insurance policies. Section III also summarizes the results of a survey of other states' reporting requirements and comparative disclosure of information related to long-term care insurance. Lastly, Section IV presents a series of policy options the Joint Commission may wish to consider in addressing the Commonwealth's current statutory and regulatory provisions regarding long-term care insurance reporting requirements and information disclosure.