summary
Introduced
03/17/2025
03/17/2025
In Committee
03/17/2025
03/17/2025
Crossed Over
Passed
Dead
Introduced Session
2025-2026 Regular Session
Bill Summary
Amending the act of May 17, 1921 (P.L.682, No.284), entitled "An act relating to insurance; amending, revising, and consolidating the law providing for the incorporation of insurance companies, and the regulation, supervision, and protection of home and foreign insurance companies, Lloyds associations, reciprocal and inter-insurance exchanges, and fire insurance rating bureaus, and the regulation and supervision of insurance carried by such companies, associations, and exchanges, including insurance carried by the State Workmen's Insurance Fund; providing penalties; and repealing existing laws," in long-term care, providing for premium rate increases.
AI Summary
This bill amends The Insurance Company Law of 1921 to regulate premium rate increases for long-term care insurance policies. Specifically, insurers are prohibited from raising premiums based solely on the insured's increasing age or the duration of policy coverage. The bill establishes a strict limit that prevents insurance companies from increasing renewal premiums by more than 15% annually. The insurance commissioner is required to disapprove premium rate increases that are deemed excessive, unfairly discriminatory, or unreasonable in relation to the benefits provided. However, the bill does allow for premium increases beyond the 15% cap if the insurance commissioner approves the increase based on demonstrable evidence that policy benefits are being utilized at a rate higher than initially expected. The new regulations aim to protect consumers from arbitrary or steep premium hikes in long-term care insurance policies, providing more predictability and fairness in pricing. The bill will take effect 60 days after its enactment.
Committee Categories
Business and Industry
Sponsors (6)
Tom Mehaffie (R)*,
Nancy Guenst (D),
Liz Hanbidge (D),
Ed Neilson (D),
Danielle Otten (D),
Tarah Probst (D),
Last Action
Referred to Insurance (on 03/17/2025)
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