Substitute House Bill No. 5123

Public Act No. 00-34

An Act Concerning Long-Term Care Insurance Riders On Life Insurance Policies.

Be it enacted by the Senate and House of Representatives in General Assembly convened:

Section 1. Section 38a-458 of the general statutes is repealed and the following is substituted in lieu thereof:

(a) On and after June 16, 1989, any life insurance company doing business in this state may issue life insurance policies or certificates, or riders or endorsements thereto, which provide, within the terms and conditions of the policy or certificate, long-term care benefits as described in section 38a-501, provided such company is licensed for both life and health insurance in this state. The Insurance Commissioner may adopt regulations, in accordance with chapter 54, [such regulations as he deems necessary for the purpose of] to implement the provisions of this section. Prior to the effective date of [any] such regulations, any such policy, certificate, rider or endorsement may be filed with the commissioner and [, at his discretion,] may be approved at the commissioner's discretion.

(b) Long-term care benefits provided pursuant to this section shall not be subject to the requirements of subsection (b) of section 38a-501 or subsection (b) of section 38a-528.

(c) No insurance agent shall sell any such policy, certificate, rider or endorsement unless [he] the agent is licensed to sell both life and health insurance in this state.

(d) A life insurance policy with long-term care benefits issued pursuant to this section may include a rider that provides long-term care benefits that become payable upon exhaustion of benefits under the life insurance policy. The elimination period limitations shall apply only to the life insurance policy to which the rider is attached. Such rider shall not contain an additional elimination period and may calculate the waiver of premium from the time benefits are payable under such rider.

Sec. 2. (NEW) Notwithstanding the provisions of sections 38a-430, 38a-481 and 38a-501 of the general statutes, or any regulation adopted pursuant to said sections, an insurer licensed for both life and health insurance in this state may combine the following coverages, by rider or otherwise, within a single-premium policy or contract: (1) Life or endowment insurance or annuity, survivorship annuity or pure endowment insurance; and (2) long-term care insurance.

Approved May 1, 2000