An Act To Require Notification of Proposed Rate Increases for Long-term Care Policies
Be it enacted by the People of the State of Maine as follows:
Sec. 1. 24-A MRSA §5084 is enacted to read:
§ 5084. Notice to policyholders of rate increase
1. Notice. An insurer shall notify a policyholder of a long-term care insurance policy issued in accordance with this chapter or chapter 68 of a proposed premium rate increase that affects the policyholder no later than 30 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 all affected individual and group policyholders and others who are directly billed for group coverage. The notice must:
A. Show the proposed rate;
B. State that the rate is subject to regulatory approval;
C. Inform a policyholder of the policyholder's right to request a hearing pursuant to section 229;
D. Inform a policyholder of the policyholder's right to provide written comments on the proposed rate increase to the bureau; and
E. Provide to the policyholder contact information for the bureau, including the bureau's toll-free telephone number.
2. Implementation of rate increase. An increase in a premium rate may not be implemented until approved by the bureau or until the effective date of the premium rate increase, whichever is later.
Sec. 2. Appropriations and allocations. The following appropriations and allocations are made.
PROFESSIONAL AND FINANCIAL REGULATION, DEPARTMENT OF
Insurance - Bureau of 0092
Initiative: Provides allocations to the Department of Professional and Financial Regulation, Bureau of Insurance for costs associated with additional rate hearings.
| OTHER SPECIAL REVENUE FUNDS | 2019-20 | 2020-21 |
|
All Other
|
$11,100 | $14,800 |
 |
|
|
| OTHER SPECIAL REVENUE FUNDS TOTAL | $11,100 | $14,800 |
Effective 90 days following adjournment of the 129th Legislature, First Regular Session, unless otherwise indicated.