The General Assembly Raised Bill No. 1269 aims to strengthen the regulations surrounding long-term care insurance in Connecticut by introducing several key provisions. The bill mandates the Insurance Department to submit a report by February 1, 2026, assessing an alternative pool for long-term care policyholders with policies exceeding twenty years. It also requires public hearings for premium rate increase requests that exceed ten percent, with insurance providers obligated to notify policyholders at least fourteen days in advance. Starting January 1, 2026, insurance companies must inform individuals about the risks of future premium rate increases prior to the purchase of long-term care policies. Additionally, the bill imposes limitations on premium rate increases for policies purchased before December 31, 1985, and for policyholders aged eighty or older or those who have faced significant premium increases.

The bill also revises existing legal language by repealing subsection (a) of section 38a-430 and introducing new provisions that require prior approval from the commissioner of insurance for any life insurance or annuity policy, including long-term care riders. The commissioner will establish a review procedure for these policies and can disapprove any forms that do not meet legal standards or contain unfair provisions. Furthermore, the bill introduces a tax credit for eligible taxpayers who purchase long-term care policies, allowing them to claim 20% of the premiums paid during the taxable year, with eligibility defined for residents earning less than $200,000. Overall, Raised Bill No. 1269 seeks to enhance consumer protection and affordability in long-term care insurance.

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