Texas Sends LTC Form Bulletin

When consumers fail to buy the nonforfeiture option, the long-term care insurers must still provide minimum "contingent nonforfeiture" benefits. The contingent benefits take effect when a long-term care insurer demands what Texas defines as a "substantial premium increase."

The regulation describing the contingent nonforfeiture benefits requirements is posted on the Web at http://info.sos.state.tx.us:80/pub/plsql/readtac$ext.TacPage?sl=R&app=9&p_dir=&p_rloc=&p_tloc=&p_ploc=&pg=1&p_tac=&ti=28&pt=1&ch=3&rl=3844

The Texas department is also ordering long-term care insurers to change the way they describe their policies.

Policies and forms may "only use the terms ?level premium' or ?noncancellable' when the insurer has no right to make any change in any provision of the insurance or in the premium rate," according to Ana Smith-Daley, the Texas deputy commissioner who wrote the bulletin.

Approved forms that meet the new standards need not be filed with the Texas department, but insurers that change forms must submit them to the department and get new form numbers, Smith-Daley writes.

The full text of the bulletin is available on the Web at http://www.tdi.state.tx.us/commish/b-0020-2.html