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A BILL TO BE ENTITLED
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AN ACT
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relating to regulation of premium rates for long-term care |
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insurance. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter B, Chapter 1651, Insurance Code, is |
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amended by adding Section 1651.056 to read as follows: |
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Sec. 1651.056. REVIEW; APPROVAL OR DISAPPROVAL OF PREMIUM |
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RATES. (a) A long-term care premium rate may not be used until the |
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rate has been filed with the department and approved by the |
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commissioner. |
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(b) The commissioner may disapprove a long-term care |
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premium rate that is not actuarially justified or does not comply |
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with standards established under this chapter or adopted by rule by |
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the commissioner. |
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(c) An insurer who obtains the commissioner's approval of an |
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increase of a long-term care premium rate under Subsection (a) |
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shall: |
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(1) notify policyholders of the scheduled rate |
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increase at least 45 days prior to the date that the policyholder is |
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required to make a premium payment at the increased rate; and |
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(2) provide contingent nonforfeiture benefits |
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consistent with nationally recognized models and rules adopted by |
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the commissioner. |
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SECTION 2. This Act applies to any rate increase |
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implemented on or after September 1, 2009. |
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SECTION 3. This Act takes effect September 1, 2009. |