DEPARTMENT OF REGULATORY AGENCIES

DIVISION OF INSURANCE

3 ccr 702-4

Life, Accident and Health

Proposed Amended Regulation 4-4-1

CONCERNING REQUIREMENTS FOR LONG-TERM CARE INSURANCE

Section 1 Authority

Section 2 Scope and Purpose

Section 3 Applicability

Section 32 Filing of Long-Term Care Policy Forms and Rates

Section 33 Severability

Section 34 Enforcement

Section 35 Effective Date

Section 36 History

Section 1 Authority

This regulation is promulgated under the authority of §§ 10-1-109(1), 10-7-113(3), 10-16-107(1), 1019106, 10-19-113.7 and 10-3-1110(1), Colorado Revised Statutes (C.R.S.).

Section 2 Scope and Purpose

The purpose of this regulation is to promote the public interest and the availability of long-term care insurance policies, to protect applicants for long-term care insurance, as defined, from unfair or deceptive sales or enrollment practices, to establish standards for long-term care insurance, to facilitate public understanding and comparison of long-term care insurance coverages, and to facilitate flexibility and innovation in the development of long-term care coverage.

Section 3 Applicability

The requirements of this regulation shall apply to long-term care policies delivered or issued for delivery in this state, on or after the effective date hereof. This regulation also applies to any acceleration of benefits provided by a life or annuity policy, unless otherwise specifically exempted in this regulation.

Section 32 Filing of Long-Term Care Policy Forms and Rates

A. Policy forms for long-term care insurance must be submitted for certification in accordance with §10-16-107.2, C.R.S. However, long-term care policy forms (application, Long-term Care Insurance Potential Rate Increase Disclosure Form, Outline of Coverage, policy summary, Long-Term Care Insurance Personal Worksheet, Things You Should Know Before You Buy Long-Term Care Insurance disclosure, any riders/endorsements and Colorado Long-Term Care Partnership Notice) must be filed with the Division of Insurance for Colorado Long-Term Care Partnership Certification pursuant to the Deficit Reduction Act of 2005, Pub. L. No. 109-171 (“DRA”), which requires the Insurance Commissioner to ensure policies identified as Qualified Partnership Policies meet certain consumer requirements set forth in the DRA.

B. Long-term care insurance rate increases are prior approval for rate increases effective on or after January 1, 2009, pursuant to § 10-16-107(1), C.R.S.

C. Premium rates for any individual long-term care insurance policy shall not vary due to the gender of the individual policyholder, enrollee, subscriber, or member for rates effective on or after January 1, 2011, pursuant to § 10-16-107(1.5)(b), C.R.S.


Section 33 Severability

If any provision of this regulation or application of it to any person or circumstance is for any reason held to be invalid, the remainder of this regulation shall not be affected.

Section 34 Enforcement

Noncompliance with this regulation may result, after proper notice and hearing, in the imposition of any of the sanctions made available in the Colorado statutes pertaining to the business of insurance or other laws which include the imposition of fines, issuance of cease and desist orders, and/or suspensions or revocations of licenses. Among others, the penalties provided for in § 10-3-1108, C.R.S., may be applied.

Section 35 Effective Date

This regulation shall be effective SeptemberJanuary 1, 20101.

Section 36 History

New Colorado Regulation 85-6.

Colorado Regulation 90-15, effective January 1, 1991.

Colorado Regulation 4-4-1, effective January 1, 1997.

Repealed and Repromulgated regulation 4-4-1 effective January 1, 2007.

Amended, effective January 1, 2008.

Amended, effective October 1, 2008.

Amended effective February 1, 2009.

Amended Regulation 4-4-1, effective September 1, 2010.

Amended Regulation 4-4-1, effective January 1, 2011.