Alabama Long-Term Care Insurance Minimum Standards Act - Revisions to Alabama Insurance Regulation No. 91

DATE: July 25, 2000 RE: Alabama Long-Term Care Insurance Minimum Standards Act - Revisions to Alabama Insurance Regulation No. 91 Please be advised that the Alabama Long-Term Care Insurance Minimum Standards Act becomes effective August 1, 2000. This new act is based on, and is substantially similar to, the model act developed by the National Association of Insurance Commissioners (NAIC). New Section 27-19-107, Code of Alabama 1975, which becomes effective August 1, 2000, includes the NAIC model provisions requiring the offer of a policy containing nonforfeiture benefits when a long-term care policy is marketed. Subsection (c) of this statute requires the Commissioner to promulgate regulations specifying how the nonforfeiture benefit requirement is to be met. A hearing is scheduled for August 16, 2000, to consider revisions to Alabama Insurance Regulation No. 91. The proposed revisions to this regulation are based on, and are substantially similar to, the model regulation developed by the NAIC. The proposed revisions to Regulation No. 91 includes a new Section 25, which sets forth the nonforfeiture benefit requirements, and proposed new Section 26, which sets the standards for benefit triggers. Both of these sections provide for a one year delayed effective date, as is recommended in the NAIC model regulation. The proposed effective date of the revisions to Regulation No. 91 is January 1, 2001. Therefore, the proposed effective date of new Section 25 and proposed new Section 26, is January 1, 2002. Insurers with long-term care insurance policies previously approved for use in this state may continue to market those policies until the effective date of the revisions to Regulation No. 91. The provisions relating to nonforfeiture benefits and benefit triggers will not be enforced until January 1, 2002. All other provisions will be enforced beginning January 1, 2001.