Amends existing law to provide that benefits provided by a long-term care rider shall be considered the same type of benefits as the base life insurance policy or annuity contract to which it relates; to provide that the Idaho Life and Health Insurance Guaranty Association may terminate certain health benefit plans upon entry of an order of liquidation with approval of the director; and to provide for allocation of class B assessments for long-term care insurance.
INSURANCE -- Amends existing law to provide that benefits provided by a long-term care rider shall be considered the same type of benefits as the base life insurance policy or annuity contract to which it relates; to provide that the Idaho Life and Health Insurance Guaranty Association may terminate certain health benefit plans upon entry of an order of liquidation with approval of the director; and to provide for allocation of class B assessments for long-term care insurance.
STATEMENT OF PURPOSE
This legislation is intended to incorporate into Idaho Insurance Law newly adopted provisions of the NAIC Life and Health Insurance Guaranty Association Model Act regarding the assessment formula for costs incurred by the Idaho Life and Health Insurance Guaranty Association for long term care insurance policies of insurance company members that become insolvent. If adopted, the new assessment formula will split the costoflongtermcarepolicies: 50%tothelife&annuityinsurancecompanymembersand50%tothehealth insurance company members. Currently long term care coverage costs are assessed only to health insurance company members. It has been agreed by the life & annuity and health insurance company members that the current assessment formula is flawed in that the assessment is not properly born by the companies that write long term care insurance and the affected parties have agreed to the allocation formula proposed herein.
HOW THEY VOTED
House Third Reading
YEA (68)
NAY (0)
ABSENT / NOT VOTING (2)
Senate Third Reading
YEA (35)
NAY (0)
LATEST ACTION
Reported Signed by Governor on March 20, 2018 Session Law Chapter 192 Effective: 07/01/2018
BILL INFO
- Session
- 2018
- Chamber
- house
- Status date
- Mar 20, 2018