Substitute Senate Bill No. 1269 aims to enhance the regulations surrounding long-term care insurance and provide financial incentives for policyholders. Key provisions include the introduction of a tax credit allowing eligible taxpayers to claim 20% of their long-term care insurance premiums against their state income tax, effective January 1, 2026. The bill mandates the Insurance Department to submit a report by February 1, 2026, evaluating alternative pools for long-term care policyholders and the premium rate filing processes. It also establishes new definitions for long-term care riders, requiring life insurance companies to disclose costs and impacts of these riders to policyholders, and allows for the cancellation of long-term care riders without penalty within thirty days of receipt.

Additionally, the bill repeals and substitutes existing statutes to clarify the issuance of life insurance policies and annuity contracts with long-term care benefits, ensuring that only licensed producers can sell these products. It sets a minimum loss ratio of 65% for group long-term care policies and prohibits premium rate increases exceeding 10% without justification. Insurers must accept claims for benefits submitted with assistance from managed residential communities and disclose eligibility information to these communities. The bill also repeals Section 38a-475a, effective January 1, 2026, and includes various consumer protections aimed at improving the accessibility and clarity of long-term care insurance while providing financial relief to policyholders.

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