This bill amends the regulation of long-term care insurance in New Jersey by requiring that rate filings for policies issued on a group basis receive prior approval from the Commissioner of Banking and Insurance (DOBI). Previously, only individual policies were subject to this requirement. The new legal language specifies that insurers must file their rates, rating schedules, and supporting documentation to demonstrate compliance with applicable loss ratio standards, ensuring that benefits are reasonable in relation to the premiums charged and that the rates are not excessive, inadequate, or unfairly discriminatory.

The bill aims to enhance oversight of long-term care insurance rates, thereby protecting consumers from potentially unfair pricing practices. By extending the prior approval requirement to group policies, the legislation seeks to ensure that all long-term care insurance products meet the same standards of fairness and adequacy, ultimately promoting a more equitable insurance market in the state. The act is set to take effect immediately upon passage.

Statutes affected:
Introduced: 17B:27E-11