California Insurance Code

§ 10237.1

INS § 10237.1 Effective Jan 1, 2000Div. 2 · Part 2 · Ch. 2.6 · Art. 5

Statute text

No insurer may deliver or issue for delivery a long-term care insurance policy or certificate in this state unless the insurer offers to each policyholder and certificate holder, in addition to any other inflation protection, the option to purchase a long-term care insurance policy or certificate that provides for benefit levels and benefit maximums to increase to account for reasonably anticipated increases in the costs of long-term care services covered by the policy. Insurers shall offer to each policyholder and certificate holder, at the time of purchase, the option to purchase a long-term care insurance policy or certificate containing an inflation protection feature which is no less favorable than one that does one or more of the following:

(a)Increases benefit levels annually in a manner so that the increases are compounded annually at a rate of not less than 5 percent.

(b)Guarantees the insured individual the right to periodically increase benefit levels without providing evidence of insurability or health status and without regard to claim status or history so long as the option for the previous period has not been declined. The amount of the additional benefit shall be no less than the difference between the existing policy benefit and that benefit compounded annually at a rate of at least 5 percent for the period beginning with the purchase of the existing benefit and extending until the year in which the offer is made.

…

Legislative history

Amended by Stats. 1999, Ch. 947, Sec. 16. Effective January 1, 2000.