Senate Bill No. 1420 seeks to strengthen the Connecticut Partnership for Long-Term Care by introducing several significant amendments to existing laws governing long-term care (LTC) insurance. Key provisions include the establishment of an outreach program by the Office of Policy and Management (OPM) to educate consumers about long-term care options and the requirement for annual reports on policy losses. The bill mandates that LTC insurance policies must allow policyholders to cancel their insurance and receive full refunds of premiums if rate increases surpass inflation. Additionally, it restricts the Insurance Department from approving rate increases that exceed those allowable at the time of precertification and prohibits tying executive compensation to rate approvals.

The bill also sets a minimum loss ratio of sixty percent for LTC insurance policies and requires insurers to submit annual reports detailing incurred and paid losses. It includes provisions for notifying policyholders of premium rate increases and offers options to reduce benefits to manage costs. The effective date for these changes is July 1, 2025. Overall, SB 1420 aims to enhance consumer protection, improve transparency, and ensure the financial sustainability of LTC insurance providers in Connecticut.

Statutes affected:
Raised Bill:
HS Joint Favorable:
File No. 381: