AB 1209 — Long-term care benefits.

Summary

Existing law generally regulates classes of insurance, including life and long-term care insurance. Under existing law, a life insurance policy may accelerate long-term care benefits as an alternative to a life settlement. Existing law authorizes an accelerated death benefit to be added to a life insurance policy to provide for the advance payment of a part of the death proceeds if a qualifying event, including a terminal or chronic illness, occurs. Existing law imposes requirements on an insurer before the lapse or termination of a long-term care insurance policy or certificate, and requires a long-term care insurance policy or certificate to provide for reinstatement of coverage if the insured has a cognitive impairment and specified criteria are met. This bill would require a life insurance policy issued on or after January 1, 2021, that contains long-term care benefits and permits policy loans or cash withdrawals to not prohibit or limit a loan or withdrawal while the insured receives payment of long-term care benefits, except as specified. The bill would authorize the payment of an accelerated death benefit for long-term care to be applied toward repayment of a pro rata portion of an outstanding policy loan if the payment results in a pro rata reduction in the cash value of the life insurance policy. The bill would require an insurer to provide a statement to a policyholder or certificate holder at least 30 days before the first payment and no later than 30 days after every payment of an accelerated death benefit for long-term care that includes specified information, including an explanation of policy changes that would or did occur due to the payment. If an insurer approves a loan against or withdrawal from the cash value of a life insurance policy that accelerates benefits for long-term care, the bill would require the insurer to send the policyholder or certificate holder a statement with specified information, including a notice that a loan or cash withdrawal may adversely affect government benefits and may be taxable. The bill would require an applicant and agent for a universal life insurance policy that includes coverage for long-term care, as specified, to complete a disclosure relating to the risk of lapse and an offer of protection against lapse. Existing law requires a premium rate schedule for an individual or group long-term care insurance policy to be filed with and approved by the Insurance Commissioner before a policy is offered, sold, issued, or delivered. This bill would prohibit the Insurance Commissioner from approving an initial premium rate schedule for individual or group long-term care insurance that includes scheduled rate increases based on the attained age of the insured or the policy duration.

Bill Text

• Chaptered 10/08/19 - Chaptered Current pdf October 08, 2019
• Enrolled 09/16/19 - Enrolled pdf September 16, 2019
• Amended 09/05/19 - Amended Senate pdf September 05, 2019
• Amended 06/25/19 - Amended Senate pdf June 25, 2019
• Amended 04/22/19 - Amended Assembly pdf April 22, 2019
• Amended 03/28/19 - Amended Assembly pdf March 28, 2019
• Introduced 02/21/19 - Introduced pdf February 21, 2019
• AB1209 View text html

Action History

1. October 08, 2019

   Chaptered by Secretary of State - Chapter 625, Statutes of 2019.

2. October 08, 2019

   Approved by the Governor.

3. September 23, 2019

   Enrolled and presented to the Governor at 3:30 p.m.

4. September 11, 2019

   Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 78. Noes 0. Page 3386.).

5. September 11, 2019

   Assembly Rule 77 suspended. (Page 3370.)

6. September 10, 2019

   In Assembly. Concurrence in Senate amendments pending. May be considered on or after September 12 pursuant to Assembly Rule 77.

7. September 10, 2019

   Read third time. Passed. Ordered to the Assembly. (Ayes 37. Noes 0. Page 2774.).

8. September 06, 2019

   Read second time. Ordered to third reading.

9. September 05, 2019

   Read third time and amended. Ordered to second reading.

10. August 13, 2019

    Read second time. Ordered to third reading.

11. August 12, 2019

    From committee: Be ordered to second reading pursuant to Senate Rule 28.8.

12. July 10, 2019

    From committee: Do pass and re-refer to Com. on APPR. (Ayes 9. Noes 0.) (July 10). Re-referred to Com. on APPR.

13. June 25, 2019

    From committee chair, with author's amendments: Amend, and re-refer to committee. Read second time, amended, and re-referred to Com. on INS.

14. June 18, 2019

    In committee: Hearing postponed by committee.

15. May 22, 2019

    Referred to Com. on INS.

16. May 14, 2019

    In Senate. Read first time. To Com. on RLS. for assignment.

17. May 13, 2019

    Read third time. Passed. Ordered to the Senate. (Ayes 74. Noes 0. Page 1629.)

18. May 09, 2019

    Read second time. Ordered to third reading.

19. May 08, 2019

    From committee: Do pass. (Ayes 18. Noes 0.) (May 8).

20. April 24, 2019

    From committee: Do pass and re-refer to Com. on APPR. with recommendation: To Consent Calendar. (Ayes 14. Noes 0.) (April 24). Re-referred to Com. on APPR.

21. April 24, 2019

    Re-referred to Com. on INS.

22. April 22, 2019

    From committee chair, with author's amendments: Amend, and re-refer to Com. on INS. Read second time and amended.

23. April 10, 2019

    From committee: Do pass and re-refer to Com. on INS. (Ayes 15. Noes 0.) (April 9). Re-referred to Com. on INS.

24. April 01, 2019

    Re-referred to Com. on HEALTH.

25. March 28, 2019

    From committee chair, with author's amendments: Amend, and re-refer to Com. on HEALTH. Read second time and amended.

26. March 28, 2019

    Referred to Coms. on HEALTH and INS.

27. February 22, 2019

    From printer. May be heard in committee March 24.

28. February 21, 2019

    Read first time. To print.

Sponsors

• Nazarian · Primary
• Voepel · Cosponsor

Votes

Subjects