Substitute Senate Bill No. 1269 seeks to improve long-term care insurance regulations in Connecticut by introducing new definitions, provisions, and consumer protections. The bill mandates the Insurance Department to prepare a report by February 1, 2026, evaluating alternative pools for long-term care policyholders and the premium rate filing processes. It defines "long-term care rider" and establishes requirements for life insurance companies issuing such riders, including the necessity for clear written disclosures to policyholders about costs and benefits. The bill also repeals and replaces certain sections of current law, including the approval process for life insurance and annuity policies, and introduces a tax credit for eligible taxpayers, allowing them to claim 20% of premiums paid for long-term care policies if their adjusted gross income is below $200,000.

Additionally, the bill enhances consumer protections by setting a minimum loss ratio of 60% for long-term care policies and limiting premium rate increases to a maximum of 10% without prior approval. Insurers are required to notify policyholders of any premium increases and provide options to reduce benefits. The bill also mandates that all long-term care policies issued after July 1, 2008, must offer a nonforfeiture benefit option and includes provisions for the disclosure of benefits and limitations at the time of application. Overall, the bill aims to streamline regulations, improve accessibility, and protect consumers from excessive premium increases and inadequate coverage in the long-term care insurance market.

Statutes affected:
Raised Bill:
INS Joint Favorable Substitute:
File No. 283: