This new law “will restrict insurers from contesting any LTC insurance application more than 2 years after selling a policy and may allow an aging policyholder to trade in policies for cheaper ones if rates are raised.” The law will go into effect on July 1.
Also the law will “prevent carriers from raising premiums by closing one block of business and opening another with an affiliated carrier” as well as “limit the amount of premium that can be charged to existing policyholders to the amount that can be charged to new policyholders.”
America’s Health Insurance Plans opposed the bill saying, “Limiting rate increases on closed blocks of long term care insurance does not allow other appropriate actuarially sound rating factors to be considered in rate adjustment filings.”
What do you think? Do you agree with the new law passed in Florida?
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