Bill > HB07226

This bill introduces several new requirements for long-term care insurance providers in Connecticut, aimed at protecting consumers and ensuring transparency. The bill mandates that the Insurance Department must hold a public hearing for any long-term care premium rate increase requests exceeding 10%, with insurance companies required to notify policyholders about the hearing at least 14 days in advance. Additionally, insurers must provide written notice to individuals before selling a long-term care policy, explicitly warning about the potential for future premium rate increases. The legislation also requires insurance companies to certify that any proposed premium rate increases are necessary to prevent a material risk of insolvency, and they must demonstrate that anticipated claims can be expected to comply with the required loss ratio of 60%. Importantly, the bill includes a provision that prohibits any insurer found in violation of these new rules from entering into state contracts, effectively creating a significant financial incentive for compliance. These provisions are designed to protect consumers from unexpected and substantial premium increases while ensuring the financial stability of long-term care insurance providers. The bill is set to take effect on January 1, 2026, giving insurers time to adapt to the new requirements.

Business and Industry, Government Affairs

Government Administration and Elections Committee (J)

https://www.cga.ct.gov/asp/cgabillstatus/cgabillstatus.asp?selBillType=Bill&bill_num=HB07226&which_year=2025