TEST: NAIC Releases Long-Term Care Insurance Hearing Testimony

The National Association of Insurance Commissioners (“NAIC”) today, July 24, 2008, released testimony from four members given before the Oversight and Investigations Subcommittee of the U.S. House Committee on Energy and Commerce at a hearing titled, “Long-Term Care Insurance: Are Consumers Protected for the Long Term?”

To view Florida Insurance Commissioner Kevin McCarty’s testimony, click here.

To view Wisconsin Insurance Commissioner Sean Dilweg’s testimony, click here.

To view New York State Insurance Superintendent Eric Dinallo’s testimony, click here.

To view Washington State Insurance Commissioner Mike Kreidler’s testimony, click here. 

The NAIC’s press release is below.

 

Should you have any questions or comments, please do not hesitate to contact Colodny Fass.

 

Long-Term Care Insurance: States Protect, Educate Consumers

KANSAS CITY, Mo. (July 24, 2008) — Four members of the National Association of Insurance Commissioners (NAIC) testified today before the Oversight and Investigations Subcommittee of the U.S. House Committee on Energy and Commerce at a hearing titled, “Long-Term Care Insurance: Are Consumers Protected for the Long Term?”

Wisconsin Insurance Commissioner Sean Dilweg, Florida Insurance Commissioner Kevin McCarty, New York State Insurance Superintendent Eric Dinallo and Washington State Insurance Commissioner Mike Kreidler described the efforts of state insurance regulators to ensure that long-term care insurance remains affordable over the life of a policy and that benefits delivered by policies remain meaningful when claims are filed.

State insurance regulators, working together through the NAIC, have been very active in developing model legislation and regulations designed to ensure that long-term care insurance meets the needs of policyholders. To help consumers make more informed decisions about long-term care insurance, the NAIC offers tips and considerations through its award-winning public-education program, Insure U, at www.insureUonline.org.

In addition, a special section on long-term care insurance is located at www.naic.org/index_ltc_section.htm. It includes links to TV and radio public service announcements (PSAs), Consumer Alerts, news releases, a shopper’s guide, an interactive quiz and other tips for consumers who are considering the purchase of long-term care insurance. Since its launch in March 2008, the long-term care PSA has aired on nearly 300 TV and radio stations, reaching more than 140 million consumers.

“Over the years, state regulators have been working hard to ensure that a viable long-term care insurance market exists in their respective states, with regulations for premium stability, benefits that are paid according to the insurance contract in a timely and accurate manner and sales that inform the consumer about the product and are suitable,” said Dilweg, who chairs the NAIC Senior Issues Task Force. “As problems arise, we have taken steps to correct them and prevent them from occurring in the future.”

Click HERE to view the full text of Dilweg’s testimony.

“The Florida Office of Insurance Regulation continues to monitor long-term care insurance writers in Florida, but also to work with other states to address issues on a multi-state level,” McCarty said. “It is essential that we protect our citizens from unfair pricing, unfair trade practices and discrimination, while at the same time providing productive oversight of the industry to maintain a viable and stable long-term insurance marketplace.”

Click HERE to view the full text of McCarty’s testimony.

“Because the market is relatively young, however, there is a need for strict regulatory oversight that provides strong consumer protections,” Dinallo said. “New York’s strict regulatory oversight attempts to anticipate potential problems to protect consumers as the long term care insurance market develops.”

Click HERE to view the full text of Dinallo’s testimony.

“My primary mission as an insurance regulator is consumer protection. It is my duty and the duty of my office to make sure that policyholders are treated fairly. And if they’re not, we have laws in place to hold the insurance companies accountable,” Kreidler said. “At the same time, it is critically important that the insurance companies we oversee remain financially sound in order to pay the claims of the consumers we protect. The importance of this oversight can not be overstated.”

Click HERE to view the full text of Kreidler’s testimony.

 

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