OLR Bill Analysis

SB 1027 (File 272, as amended by Senate “A”)*

AN ACT CONCERNING NOTIFICATION OF NONPAYMENT OF PREMIUM FOR INDIVIDUAL LONG-TERM CARE INSURANCE POLICIES AND LONG-TERM CARE BENEFITS UNDER AN ANNUITY CONTRACT.

SUMMARY:

This bill allows insurers licensed for both life and health insurance in Connecticut to offer annuity contracts or certificates, or riders or endorsements to them, that provide long-term care (LTC) insurance benefits. This allows withdrawals from the annuity for LTC expenses. Such contracts and certificates must waive the surrender charges or accelerate a portion of the annuity contract. By law, life insurance policies may already provide LTC benefits. Life insurance policies and annuity contracts must be filed with and approved by the insurance commissioner.

The bill also makes technical and conforming changes, including repealing a related provision that allowed insurers to combine certain life insurance or annuities with LTC benefits.

*Senate Amendment “A” removes provisions that required LTC insurers to (1) include a statement with each LTC policy informing the insured person that he or she may designate a third party to receive cancellation notices based on nonpayment of premiums and (2) provide notice to an insured person at least 30 days before cancelling a policy for nonpayment of premiums.

EFFECTIVE DATE: October 1, 2013

COMMITTEE ACTION

Insurance and Real Estate Committee

Joint Favorable

Yea

17

Nay

1

(03/14/2013)