The proposed bill seeks to enhance the regulation of limited long-term care insurance in Minnesota by amending Minnesota Statutes 2024, section 45.027. It grants the commissioner of commerce the authority to issue data calls, which are written requests for information from insurance companies, and classifies the information obtained as nonpublic data, not subject to subpoena. The bill also introduces the "Limited Long-Term Care Insurance Act," which establishes standards for insurance policies, ensuring they do not discriminate based on age, gender, or health deterioration. It prohibits practices such as requiring prior hospitalization for benefits and restrictive definitions for preexisting conditions, while empowering the commissioner to set loss ratio standards for consumer protection.

Additionally, the bill mandates that insurers provide a coverage outline to prospective applicants, detailing essential policy information, and requires written explanations for denied claims within 60 days. It establishes an incontestability period for policies and outlines nonforfeiture benefits for policyholders. The commissioner is also given the authority to adopt rules to ensure premium adequacy and protect against significant rate increases. Penalties for violations can include fines up to three times the commissions paid for each policy involved or up to $10,000. The changes are set to take effect on January 1, 2026, with the overall goal of improving consumer protection and clarity in the long-term care insurance market.

Statutes affected:
Introduction: 65B.10, 45.027, 65B.02, 65B.05, 65B.06
1st Engrossment: 45.027