Bill Text: CA SB575 | 2015-2016 | Regular Session | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Long-term care insurance.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Passed) 2015-10-06 - Chaptered by Secretary of State. Chapter 544, Statutes of 2015. [SB575 Detail]

Download: California-2015-SB575-Introduced.html

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BILL NUMBER: SB 575	INTRODUCED
	BILL TEXT


INTRODUCED BY   Senator Liu

                        FEBRUARY 26, 2015

   An act to add Section 10235.36 to the Insurance Code, relating to
insurance.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 575, as introduced, Liu. Long-term care insurance.
   Existing law provides for the regulation of long-term care
insurance by the Insurance Commissioner. Under existing law, the
commissioner may require the administration by an insurer of the
contingent benefit upon lapse as a condition of approval or
acknowledgment of a rate adjustment for a block of business for which
the contingent benefit upon lapse is not otherwise available. Under
existing law, the insurer must notify policyholders and certificate
holders of the contingent benefit upon lapse when required by the
commissioner, as specified.
   This bill, when a policyholder or certificate holder elects the
contingent benefit upon lapse, would require the insurer to annually
notify the policyholder or certificate holder and, if elected, at
least one individual designated by the policyholder or certificate
holder of the availability of the contingent benefit, the dollar
amount of the contingent benefit, and the name, address, and
telephone number of the insurer for questions about the contingent
benefit. The bill would also require the insurer, within 90 days of
receipt of notice that a policyholder or certificate holder elected
the contingent benefit upon lapse, to mail and receive from each
policyholder or certificate holder a form that allows the
policyholder or certificate holder to submit one of the following:
(1) a written designation of the name, address, and telephone number
of at least one person, in addition to the policyholder or
certificate holder who is to receive the annual notice described
above, or (2) a waiver signed and dated by the policyholder or
certificate holder electing not to designate additional persons to
receive notice.
   Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 10235.36 is added to the Insurance Code, to
read:
   10235.36.  (a) In the event a policyholder or certificate holder
elects the contingent benefit upon lapse as described in Section
10235.35, the insurer shall annually notify the policyholder or
certificate holder and, if elected, at least one individual
designated by the policyholder or certificate holder pursuant to
paragraph (1) of subdivision (b) by first-class United States mail,
postage prepaid, of all of the following:
   (1) The availability of the contingent benefit held by the
policyholder or certificate holder.
   (2) The dollar amount of the contingent benefit.
   (3) The name, address, and telephone number of the insurer for
questions about the contingent benefit.
   (b) Within 90 days of receipt of notice that a policyholder or
certificate holder elects the contingent benefit upon lapse as
described in Section 10235.35, the insurer shall mail and receive
from each policyholder or certificate holder a form that allows the
policyholder or certificate holder to submit one of the following:
   (1) A written designation listing the name, address, and telephone
number of at least one individual, in addition to the policyholder
or certificate holder, who is to receive annual notice as described
in subdivision (a).
   (2) A waiver signed and dated by the policyholder or certificate
holder electing not to designate additional persons to receive
notice. The required waiver shall read as follows:

   "I understand that I have the right to designate at least one
person other than myself to receive annual notification related to
the contingent benefit retained under this long-term care insurance
policy. I elect not to designate any person other than myself to
receive the notice.
   ______________________________________      _________________
   Signature of Policyholder or Certificate Holder       Date"
   (c) The insurer shall notify the policyholder or certificate
holder at least once every two years of the right to change the
election described in subdivision (b).