An Act To Require Notification of Proposed Rate Increases for Long-term Care Policies

Sec. 1. 24-A MRSA §5084  is enacted to read:

§ 5084.  Notice to policyholders of rate increase

An insurer shall notify a policyholder of a long-term care insurance policy of a proposed premium rate increase that affects the policyholder no later than 10 business days after the filing by the insurer of the premium rate increase. An insurer shall provide written notice by first-class mail to the last known mailing address of the policyholder. The notice must also inform a policyholder of the policyholder's right to request a hearing pursuant to section 229.

summary

This bill requires the insurer to notify a policyholder of a long-term care insurance policy of a proposed premium rate increase that affects the policyholder no later than 10 business days after the filing of the premium rate increase. The bill also requires that the notice inform the policyholder of the policyholder's right to contact the Department of Professional and Financial Regulation, Bureau of Insurance to request a hearing on the proposed rate increase.