Often, legislators sponsor bills with good intentions that when implemented, have negative consequence. At the present time, both the Florida Senate and House of Representatives are promoting similar bills regarding Long Term Care Insurance which to both the insurance professional and the public appear ok. The main jist of the legislation is to protect the public. The main points of these bills are to limit the contestability period of LTCi to two years like Life Insurance and to protect consumers in closed blocks of business (discontinued policies). Consumers in these closed blocks would have protection if the premium is raised beyond a certain percentatage point.
This looks like good legislation, yet most if not all insurers of Long Term Care writing business in Fla are opposed to the new legislation. Their actuaries are telling them that rates will have to go up, and that insurers protection from fraudulent claims would now become greatly limitted.
The purpose of this blog is to create a dialog between professionals within the Life and Health Insurance industry. If you want to post a comment and have not set up a free account with blogger.com (a google company), you can post as an annonymous individual. It is requested that you do let us know who you are. This post will be sent to people in the Fla legislature, Office of Insurance Regulation, and to insurance professionals. It is of utmost importance that we help make this legislation free of unintended negative consequences. The bill sponsors and the OIR have been friends of the industry, and it benefits us all to keep it that way.
Tuesday, April 11, 2006
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