Sponsored by:
Senator JOSEPH F. VITALE
District 19 (Middlesex)
Senator M. TERESA RUIZ
District 29 (Essex)
SYNOPSIS
Prohibits gender based rating of certain long-term care insurance policies.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning gender based rating of certain long-term care insurance and amending P.L. 2003, c.207.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. Section 11 of P.L. 2003, c. 207 (C. 17B:27E-11) is amended to read as follows:
11. a. An insurer providing long-term care insurance issued on an individual basis in this State shall file, for the commissioner's approval, its rates, rating schedule and supporting documentation demonstrating that it is in compliance with the applicable loss ratio standards of this State. All filings of rates and rating schedules shall demonstrate that the benefits are reasonable in relation to the premium charged and that the rates are not excessive, inadequate or unfairly discriminatory.
b. The commissioner shall not approve any long-term care insurance rates pursuant to this section which include rate differentials based on the sex or gender of the insured.
(cf: P.L.2003, c.207, s.11)
2. This act shall take effect on the 90th day next following enactment and shall apply to policies and contracts of long-term care insurance issued or renewed on or after that date.
STATEMENT
This bill prohibits insurers from rating, or pricing premiums for, individual long-term care insurance policies based on the gender of the insured. It prohibits the approval of any individual long-term care insurance policy rates which include rate differentials based on the sex or gender of the insured.
Certain providers of such coverage have announced that they will begin setting prices based on sex and in some cases, policies with gender based rate differentials have already been approved for issuance in New Jersey. This relatively new industry practice will disproportionately impact women who, it is estimated, receive two of every three claims dollars under long-term care policies.