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A BILL TO BE ENTITLED
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AN ACT
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relating to rates for long-term care insurance premiums. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 1651.055(a), Insurance Code, is amended |
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to read as follows: |
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(a) The commissioner shall adopt rules to stabilize |
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long-term care premium rates by: |
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(1) ensuring that: |
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(A) initial rates for long-term care benefit plan |
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forms are adequate; [and] |
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(B) rates are based on credible Texas experience |
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and are established without regard to rates charged or approved in |
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another state; and |
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(C) any rate schedule increases for long-term |
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care benefit plans made after issuance of the plans are justified, |
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adequate, and reasonable in relation to benefits provided to plan |
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holders; |
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(2) requiring any appropriate plan terms; |
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(3) imposing penalties on insurers or other entities |
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subject to this chapter that violate a rule adopted under this |
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section; and |
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(4) protecting plan holders affected by a rate |
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schedule increase. |
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SECTION 2. This Act applies only to an insurance policy or |
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contract or evidence of coverage that is delivered, issued for |
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delivery, or renewed on or after January 1, 2010. An insurance |
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policy or contract or evidence of coverage delivered, issued for |
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delivery, or renewed before January 1, 2010, is governed by the law |
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as it existed immediately before the effective date of this Act, and |
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that law is continued in effect for that purpose. |
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SECTION 3. This Act takes effect September 1, 2009. |