Virginia’s State Corporation Commission said it has adopted new regulations governing long-term care insurance policies in Virginia.
The new rules are aimed at helping reduce the burden of premium increases on long-term care policies, which have prompted complaints from policy-holders in Virginia, according to the SCC.
The SCC oversees Virginia’s Bureau of Insurance.
The regulations, which go into effect Sept. 1, don’t prohibit future premium increases but might make those increases “less frequent,” the SCC said.
Long-term care insurance is designed to cover the cost of nursing-home care or home health assistance. Some insurance companies have sold the policies since the 1970s.
Premiums have increased substantially in recent years because insurers misjudged the duration and cost of claims they would have to pay. The low interest rate environment in recent years also resulted in lower returns on investments from premiums.
Insurers have frequently sought, and received, authorization to increase premium rates from state regulators in Virginia and other states.
“The increases have been a financial hardship on policyholders who are faced with difficult choices such as reducing their benefits, if given the option, or allowing their coverage to lapse,” the SCC said.
Read the full story at the Roanoke Times: Virginia SCC adopts new rules on long-term care insurance – Roanoke Times: Virginia.
Virginia adopts new rules on long-term care insurance via IFAwebnews.com .