Amended in Assembly March 26, 2015

California Legislature—2015–16 Regular Session

Assembly BillNo. 310


Introduced by Assembly Member Mathis

February 12, 2015


An act tobegin delete amendend deletebegin insert add and repealend insert Sectionbegin delete 10231.2end deletebegin insert 10234.71end insert of the Insurance Code, relating to long-term care insurance.

LEGISLATIVE COUNSEL’S DIGEST

AB 310, as amended, Mathis. Long-term care insurance.

Existing law provides for the regulation of long-term care insurance, as defined, and requires the Insurance Commissioner to review and approve individual and group policies, certificates, riders, and outlines of coverage.

begin delete

This bill would make technical, nonsubstantive changes to that provision.

end delete
begin insert

This bill would require, only until January 1, 2021, the commissioner to commission an annual study comparing the statutory requirements for long-term care products in this state with the statutory requirements governing long-term care products as set forth in the Interstate Insurance Product Regulation Compact developed by the Interstate Insurance Product Regulation Commission. The bill would also require the commissioner to provide a report to the Legislature, on or before January 1, 2017, and each January 1 thereafter, until January 1, 2021, comparing the marketability and affordability of long-term care insurance products in this state with similar products in New York, Texas, and Florida.

end insert

Vote: majority. Appropriation: no. Fiscal committee: begin deleteno end deletebegin insertyesend insert. State-mandated local program: no.

The people of the State of California do enact as follows:

P2    1begin insert

begin insertSECTION 1.end insert  

end insert

begin insertSection 10234.71 is added to the end insertbegin insertInsurance Codeend insertbegin insert, end insert2immediately following Section 10234.7begin insert, to read:end insert

begin insert
3

begin insert10234.71.end insert  

(a) The commissioner shall commission an annual
4study comparing the statutory requirements for long-term care
5products in this state with the statutory requirements governing
6long-term care products as set forth in the Interstate Insurance
7Product Regulation Compact developed by the Interstate Insurance
8Product Regulation Commission.

9(b) The commissioner shall provide a report to the Legislature,
10on or before January 1, 2017, and each January 1 thereafter,
11comparing the marketability and affordability of long-term care
12insurance products in this state with similar products in New York,
13Texas, and Florida. The report shall be made in compliance with
14Section 9795 of the Government Code.

15(c) This section shall remain in effect only until January 1, 2021,
16and as of that date is repealed, unless a later enacted statute, that
17is enacted before January 1, 2021, deletes or extends that date.

end insert
begin delete
18

SECTION 1.  

Section 10231.2 of the Insurance Code is
19amended to read:

20

10231.2.  

(a) “Long-term care insurance” includes any
21insurance policy, certificate, or rider advertised, marketed, offered,
22solicited, or designed to provide coverage for diagnostic,
23preventive, therapeutic, rehabilitative, maintenance, or personal
24care services that are provided in a setting other than an acute care
25unit of a hospital. Long-term care insurance includes all products
26containing any of the following benefit types: coverage for
27institutional care including care in a nursing home, convalescent
28facility, extended care facility, custodial care facility, skilled
29nursing facility, or personal care home; home care coverage
30including home health care, personal care, homemaker services,
31hospice, or respite care; or community-based coverage including
32adult day care, hospice, or respite care. Long-term care insurance
33includes disability based long-term care policies but does not
34include insurance designed primarily to provide Medicare
35supplement or major medical expense coverage.

36(b) Long-term care policies, certificates, and riders shall be
37regulated under this chapter. The commissioner shall review and
38approve individual and group long-term care policies, certificates,
P3    1riders, and outlines of coverage. Other applicable laws and
2regulations shall also apply to long-term care insurance insofar as
3they do not conflict with the provisions in this chapter. Long-term
4care benefits designed to provide coverage of 12 months or more
5that are contained in or amended to Medicare supplement or other
6disability policies and certificates shall be regulated under this
7chapter.

end delete


O

    98