RD2 - Long-Term Care Insurance Reforms

Executive Summary:

House Bill (HB) 2228 of the 2001 Session of the General Assembly requires that the regulations adopted by the State Corporation Commission (SCC) regarding long-term care insurance must include provisions related to the disclosure of insurers' rating practices to consumers. This provision is consistent with one of the recent revisions to the "model" adopted by the National Association of Insurance Commissioners (NAIC), and offered as an alternative for those states that wish to adopt it. The second enactment clause of HB 2228 directs the Joint Commission on Health Care OCHC) and the Bureau of Insurance of the State Corporation Commission (Bureau) to monitor the implementation of other revisions to the NAIC model regulations. Specifically, the study calls for the JCHC and Bureau to:

(i) monitor the implementation of the revisions to the Long-Term Care Insurance Model Regulation of the National Association of Insurance Commissioners dealing with Initial Filing Requirements and Premium Rate Schedule Increases;

(ii) document the experience of other states that have implemented the revised regulation; and

(iii) make recommendations as to whether Virginia should adopt the revised regulation.

As required in HB 2228, this issue brief serves as an interim report to the House Committee on Corporations, Insurance and Banking, the Senate Committee on Commerce and Labor, and the 2002 Session of the General Assembly. A final report will be submitted to the 2003 Session of the General Assembly. A copy of HB 2228 is attached as Appendix A.