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S03389 Summary:

Amd 1117, Ins L
Requires long term care insurance carriers who propose to raise long term care insurance premiums to obtain prior approval of the superintendent of financial services.
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S03389 Actions:

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S03389 Text:

                STATE OF NEW YORK
                               2017-2018 Regular Sessions
                    IN SENATE
                                    January 23, 2017
        Introduced  by Sens. VALESKY, KRUEGER -- read twice and ordered printed,
          and when printed to be committed to the Committee on Insurance
        AN ACT to amend the insurance law, in relation to  requiring  long  term
          care  insurance carriers who propose to raise long term care insurance
          premiums to obtain prior approval of the superintendent  of  financial
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
     1    Section 1. Paragraph 3 of subsection (f) of section 1117 of the insur-
     2  ance law, as added by chapter 245 of the laws of  1986,  is  amended  to
     3  read as follows:
     4    (3)  the  premium  rates  for  the  long term care plan are reasonably
     5  related to the benefits provided, and are self-supporting, as determined
     6  by the superintendent pursuant to subsection (h) of this section; and
     7    § 2.  Section 1117 of the insurance law is amended  by  adding  a  new
     8  subsection (h) to read as follows:
     9    (h) An insurer desiring to increase or decrease premiums for any poli-
    10  cy  subject to this section shall submit a rate filing or application to
    11  the superintendent.   An  insurer  shall  send  written  notice  of  the
    12  proposed  rate  adjustment,  including the specific change requested, to
    13  each policy holder and certificate holder affected by the adjustment  on
    14  or  before  the  date the rate filing or application is submitted to the
    15  superintendent. The notice shall prominently include mailing and website
    16  addresses for both the department of financial services and the  insurer
    17  through  which  a  person may, within thirty days from the date the rate
    18  filing or application is submitted to the  superintendent,  contact  the
    19  department of financial services or insurer to receive additional infor-
    20  mation  or  to  submit  written  comments to the department of financial
    21  services on the rate filing or  application.  The  superintendent  shall
    22  establish  a  process  to post on such department's website, in a timely
    23  manner, all  relevant  written  comments  received  pertaining  to  rate
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.

        S. 3389                             2
     1  filings  or applications. The insurer shall provide a copy of the notice
     2  to the superintendent with the rate filing or  application.  The  super-
     3  intendent shall immediately cause the notice to be posted on the depart-
     4  ment  of financial services' website. The superintendent shall determine
     5  whether the filing or application shall become effective as filed, shall
     6  become effective as modified, or shall be disapproved.  The  superinten-
     7  dent  may  modify  or  disapprove  the rate filing or application if the
     8  superintendent finds that  the  premiums  are  unreasonable,  excessive,
     9  inadequate,  or  unfairly discriminatory, and may consider the financial
    10  condition of the insurer when approving, modifying or  disapproving  any
    11  premium  adjustment.  The  determination  of the superintendent shall be
    12  supported by sound actuarial  assumptions  and  methods,  and  shall  be
    13  rendered in writing between thirty and sixty days from the date the rate
    14  filing  or  application  is  submitted to the superintendent. Should the
    15  superintendent require additional information from the insurer in  order
    16  to make a determination, the superintendent shall require the insurer to
    17  furnish  such  information,  and  in such event, the sixty days shall be
    18  tolled and shall resume as of the date the insurer furnishes the  infor-
    19  mation  to the superintendent. If the superintendent requests additional
    20  information less than ten days from the expiration  of  the  sixty  days
    21  (exclusive  of  tolling),  the  superintendent  may extend the sixty day
    22  period an additional twenty days to make a determination.  The  applica-
    23  tion  or  rate  filing will be deemed approved if a determination is not
    24  rendered within the time allotted under this section. An  insurer  shall
    25  not  implement  a  rate  adjustment unless the insurer provides at least
    26  sixty days  advance  written  notice  of  the  premium  rate  adjustment
    27  approved  by  the  superintendent  to each policy holder and certificate
    28  holder affected by the rate adjustment.
    29    § 3. This act shall take effect immediately.
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