CFO Alex Sink's Consumer eViews Newsletter

Volume 5 Number 30 July 25, 2008

CONSUMER SERVICES HELPLINE 877-MY-FL-CFO

 

 

LONG-TERM CARE INSURANCE: STATES PROTECT, EDUCATE CONSUMERS

Four members of the National Association of Insurance Commissioners (NAIC) testified on July 24 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.”