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AB-1814 Long-term care insurance.(2019-2020)

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Date Published: 03/05/2019 09:00 PM


Assembly Bill
No. 1814

Introduced by Committee on Insurance

March 05, 2019

An act to amend Section 10232.2 of the Insurance Code, relating to long-term care insurance.


AB 1814, as introduced, Committee on Insurance. Long-term care insurance.
Existing law regulates and defines long-term care insurance as, among other things, any insurance policy, certificate, or rider advertised, marketed, offered, solicited, or designed to provide coverage for diagnostic, preventive, therapeutic, rehabilitative, maintenance, or personal care services that are provided in a setting other than an acute care unit of a hospital.
This bill would make technical, nonsubstantive changes and would delete obsolete provisions regarding this type of insurance.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: NO   Local Program: NO  

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


 Section 10232.2 of the Insurance Code is amended to read:

(a)Every insurer that offers policies or certificates that are intended to be federally qualified long-term care insurance contracts, including riders to life insurance policies providing long-term care coverage, shall fairly and affirmatively concurrently file, offer, and market long-term care insurance policies or certificates not intended to be federally qualified, as described in subdivision (a) of Section 10232.1.


 (a) All A long-term care insurance contracts, contract, including riders a rider to a life insurance contracts contract providing long-term care coverage, approved after the effective date of this section shall meet all of the requirements of this chapter.

(c)Until October 1, 2001, or 90 days after approval of contracts submitted for approval pursuant to subdivision (b), whichever comes first, insurers may continue to offer and market previously approved long-term care insurance contracts.


(b) Group policies A group policy issued prior to before January 1, 1997, shall be allowed to remain in force and not be required to meet the requirements of this chapter, as amended during the 1997 portion of the 1997–98 Regular Session, unless those policies cease the policy ceases to be treated as federally qualified long-term care insurance contracts. If a policy or certificate issued on a group policy of that type ceases to be a federally qualified long-term care insurance contract under the grandfather rules issued by the United States Department of the Treasury pursuant to Section 7702B(f) of the Internal Revenue Code, the insurer shall offer the policy and certificate holders the option to convert, on a guaranteed-issue basis, to a policy or certificate that is federally tax qualified if the insurer sells tax-qualified policies.

(e)It is the intent of the Legislature that the commissioner approve by July 1, 2001, all accurate and complete contracts submitted for approval pursuant to subdivision (b). It is the further intent of the Legislature that insurers submit contracts for approval and resolve further outstanding issues pursuant to subdivision (b) in a timely manner in order for the commissioner to approve the contracts by July 1, 2001.