Federal Standards Updated Under New Plan on Capitol Hill

WASHINGTON, D.C. (Sept. 30, 2009) — Members of the National Association of Insurance Commissioners (NAIC) offer their support of amendments for federal legislation they believe will strengthen consumer protections for long-term care policy holders. Regulators expressed their support of provisions in S. 1177 in a letter sent to Senator Herb Kohl (D-WI), Chair of the Special Committee on Aging.

The language, drafted by Kohl, is being proposed as an amendment to the Senate Finance health care reform bill by Senator Ron Wyden (D-OR), which would build on state laws and model regulations developed by the NAIC.

“In consultation with consumer representatives, the long-term care insurance industry and other stakeholders, the NAIC has developed model laws and regulations that provide extensive consumer protections to long-term care insurance policyholders,” NAIC President and New Hampshire Insurance Commissioner Roger Sevigny wrote Senator Kohl.  The amended bill “would update federal consumer protection standards and institute a formal process for incorporating new NAIC-adopted protections in tax-qualified and Partnership plans.”

Sevigny also pointed out that the market continues to evolve and the NAIC continues to respond to changing conditions by updating its models and regulations to ensure consumers remain protected. “In fact, the NAIC recently completed standards for external review for claim denials,” Sevigny writes.

“We also agree that both federal and state officials need to remain vigilant in monitoring the long-term care insurance marketplace,” said Sean Dilweg, Vice Chair of the NAIC Senior Issues Task Force and Wisconsin Insurance Commissioner, who worked closely with Senator Kohl on the amendment. “State regulators support efforts to improve disclosure, producer training, consumer education and information and rate stability.”

“The NAIC and the states have made great strides in these areas and we are committed to enhancing these protections nationwide and ensuring that long-term care insurance products provide value to consumers and deliver on the promises they make,” said Sandy Praeger, Chair of the NAIC Committee on Health Insurance and Managed Care and Kansas Insurance Commissioner.

Click HERE to read the full text of the letter.

About the NAIC

Formed in 1871, the National Association of Insurance Commissioners (NAIC) is a voluntary organization of the chief insurance regulatory officials of the 50 states, the District of Columbia and five U.S. territories. The NAIC has three offices: Executive Office, Washington, D.C.; Central Office, Kansas City, Mo.; and Securities Valuation Office, New York City. The NAIC serves the needs of consumers and the industry, with an overriding objective of supporting state insurance regulators as they protect consumers and maintain the financial stability of the insurance marketplace. For more information, visit www.naic.org.