This 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 regulated entities, 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 requirements for insurance policies, including non-discrimination based on age or health status, no new waiting periods upon conversion, and coverage for various levels of care. It outlines consumer rights, such as a 30-day review period for returning policies and mandates the provision of coverage outlines to prospective applicants.

Additionally, the bill includes several key provisions aimed at improving transparency and consumer protection. Insurers are required to provide a coverage outline at the time of initial solicitation, detailing essential policy information. If a claim is denied, insurers must offer a written explanation within 60 days. The bill establishes an incontestability period for policies and outlines nonforfeiture benefits. It also emphasizes the need for administrative rules to ensure premium adequacy and protect policyholders from significant rate increases, with penalties for violations that can reach up to three times the commissions paid for each policy or $10,000. The changes are set to take effect on January 1, 2026.

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