II 

111TH CONGRESS 

1ST SESSION S. 1636 

To develop a model disclosure form to assist consumers in purchasing longterm care insurance. 

IN THE SENATE OF THE UNITED STATES 

AUGUST 6, 2009 

Ms. KLOBUCHAR (for herself and Mr. KOHL) introduced the following bill; 

which was read twice and referred to the Committee on Health, Education, Labor, and Pensions 

A BILL 

To develop a model disclosure form to assist consumers in 

purchasing long-term care insurance. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Long-Term Care In5 surance Consumer Right-to-Know Act of 2009’’. 

6 SEC. 2. DEFINITIONS. 

7 In this Act: 

8 (1) LONG-TERM CARE INSURANCE POLICY.— 

9 The term ‘‘long-term care insurance policy’’ 

10 means— 


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1 (A) a qualified long-term care insurance 

2 contract (as defined in section 7702B(b) of the 

3 Internal Revenue Code of 1986); and 

4 (B) a qualified long-term care insurance 

5 contract that covers an insured who is a resi6 dent of a State with a qualified State long-term 

7 care insurance partnership under clause (iii) of 

8 section 1917(b)(1)(C) of the Social Security Act 

9 (42 U.S.C. 1396p(b)(1)(C)) or a long-term care 

10 insurance policy offered in connection with a 

11 State plan amendment described in clause (iv) 

12 of such section. 

13 (2) MODEL ACT AND REGULATION.—The term 

14 ‘‘model Act and regulation’’ means the long-term 

15 care insurance model regulation, and the long-term 

16 care insurance model Act, respectively, promulgated 

17 by the National Association of Insurance Commis18 sioners (as adopted as of October 2000 and as of 

19 December 2006). 

20 (3) NAIC.—The term ‘‘NAIC’’ means the Na21 tional Association of Insurance Commissioners. 

22 (4) SECRETARY.—The term ‘‘Secretary’’ means 

23 the Secretary of Health and Human Services. 

24 (5) STATE.—The term ‘‘State’’ means each of 

25 the 50 States, the District of Columbia, the ComVerDate Nov 24 2008 02:29 Aug 08, 2009 Jkt 079200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S1636.IS S1636

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1 monwealth of Puerto Rico, the United States Virgin 

2 Islands, Guam, the Commonwealth of the Northern 

3 Mariana Islands, and American Samoa. 

4 SEC. 3. NAIC STUDY AND REPORT ON STATE DISCLOSURE 

5 REQUIREMENTS FOR LONG-TERM CARE IN6 SURANCE. 

7 (a) IN GENERAL.—The Secretary shall request the 

8 NAIC to carry out the activities described in subsection 

9 (b) and issue the report described in subsection (c). 

10 (b) REVIEW AND DEVELOPMENT OF PROPOSED

11 MODEL DISCLOSURE REQUIREMENTS.—The activities de12 scribed in this subsection are the following: 

13 (1) MODEL ACT AND REGULATION DISCLOSURE

14 REQUIREMENTS.—Review and describe disclosure re15 quirements for long-term care insurance policies 

16 under the Model Act and regulation. 

17 (2) STATE LAW DISCLOSURE REQUIREMENTS.— 

18 Review and describe disclosure requirements for 

19 long-term care insurance policies under State laws. 

20 (3) LONG-TERM CARE SERVICES.—Review and 

21 describe differences in long-term care services, in22 cluding with respect to providers of such services 

23 and the settings in which such services are provided 

24 among States and develop a standardized definition 

25 for long-term care services. 


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1 (4) IDENTIFICATION OF KEY ISSUES FOR DE2 VELOPMENT OF MODEL DISCLOSURE MARKETING

3 FORM.—Identify and describe key issues to consider 

4 in the development of a proposed model form for 

5 marketing long-term care insurance policies. 

6 (c) REPORT.—The report described in this subsection 

7 is a NAIC White Paper that is issued not later than 12 

8 months after the date of enactment of this Act and con9 tains the results of the reviews conducted under subsection 

10 (a) and the descriptions required under that subsection. 

11 SEC. 4. NAIC WORKING GROUP TO DEVELOP MODEL DIS12 CLOSURE FORM FOR LONG-TERM CARE IN13 SURANCE. 

14 (a) IN GENERAL.—The Secretary shall request the 

15 NAIC to establish, not later than 60 days after the date 

16 on which the NAIC White Paper described in section 3(c) 

17 is issued and in consultation with the Secretary and the 

18 Secretary of the Treasury, a Working Group to develop 

19 a model disclosure form for marketing long-term care in20 surance policies. 

21 (b) WORKING GROUP MEMBERS.—The Working 

22 Group established under subsection (a) shall be composed 

23 of the following: 

24 (1) Representatives from State Departments of 

25 Health (or the most appropriate State agencies with 


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1 responsibility for oversight of the provision of long2 term care). 

3 (2) Representatives of long-term care providers 

4 and facilities. 

5 (3) Consumer advocates. 

6 (4) Representatives of issuers of long-term care 

7 insurance policies. 

8 (5) Representatives of the NAIC or State insur9 ance commissioners. 

10 (6) Other experts in long-term care and long11 term care insurance policies selected by the Sec12 retary and Secretary of the Treasury or the NAIC. 

13 (c) REQUIREMENTS FOR DEVELOPMENT OF FORM.— 

14 (1) CONSIDERATIONS.—In developing the model 

15 form, the Working Group shall consider the fol16 lowing: 

17 (A) Variations among providers, services, 

18 and facilities in the long-term care and long19 term care insurance markets. 

20 (B) The results of the reviews and the de21 scriptions included in the NAIC White Paper 

22 issued under section 3(c). 

23 (C) Such other information and factors as 

24 the Working Group determines appropriate. 


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1 (2) STANDARDIZATIONS.—The Working Group 

2 shall ensure that the model has— 

3 (A) minimum standard definitions for cov4 erage of the various types of services and bene5 fits provided under long-term care insurance 

6 policies; 

7 (B) minimum standard language for use 

8 by issuers of such policies, and for agents sell9 ing such policies, in explaining the services and 

10 benefits covered under the policies and restric11 tions on the services and benefits; 

12 (C) minimum standard format, color and 

13 type size for disclosure documents; and 

14 (D) such other minimum standards as the 

15 Working Group determines appropriate. 

16 (d) DEADLINE FOR DEVELOPMENT.—The Working 

17 Group shall issue a proposed model disclosure form for 

18 marketing long-term care insurance policies not later than 

19 1 year after the date on which the Working Group is es20 tablished. 

21 (e) ADOPTION AND INCORPORATION INTO MODEL

22 ACT AND REGULATION.—The Secretary shall request the 

23 NAIC to amend the Model Act and regulation to require 

24 the use of the proposed model disclosure form issued by 


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1 the Working Group, not later than 1 year after the date 

2 on which the Working Group issues the form. 

3 SEC. 5. REQUIRED USE OF MODEL DISCLOSURE FORM IN 

4 MARKETING LONG-TERM CARE INSURANCE 

5 POLICIES. 

6 (a) APPLICATION TO TAX-QUALIFIED AND MEDICAID

7 PARTNERSHIP POLICIES.—Not later than 1 year after the 

8 date on which the Working Group issues the proposed 

9 model disclosure form for marketing long-term care insur10 ance policies under section 4: 

11 (1) TAX-QUALIFIED POLICIES.—The Secretary 

12 of the Treasury shall promulgate a regulation re13 quiring, not later than 1 year after the date on 

14 which the regulation is final, any issuer of a quali15 fied long-term care insurance contract (as defined in 

16 section 7702B(b) of the Internal Revenue Code of 

17 1986) to use the proposed model disclosure form for 

18 marketing such contracts. 

19 (2) MEDICAID PARTNERSHIP POLICIES.—The 

20 Secretary shall promulgate a regulation requiring, 

21 not later than 1 year after the date on which the 

22 regulation is final, any issuer of a qualified long23 term care insurance contract that covers an insured 

24 who is a resident of a State with a qualified State 

25 long-term care insurance partnership under clause 


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1 (iii) of section 1917(b)(1)(C) of the Social Security 

2 Act (42 U.S.C. 1396p(b)(1)(C)) or a long-term care 

3 insurance policy offered in connection with a State 

4 plan amendment described in clause (iv) of such sec5 tion to use the proposed model disclosure form for 

6 marketing such contracts. 

7 (b) APPLICATION TO ALL OTHER LONG-TERM CARE

8 INSURANCE POLICIES.—Not later than 18 months, or the 

9 earliest date on which an amendment could be enacted for 

10 those States with legislatures which meet only every other 

11 year, after the date on which the NAIC adopts an amend12 ed Model Act and regulation to require the use of the pro13 posed model disclosure form issued by the Working Group 

14 under section 4, each State shall require by statute or reg15 ulation any issuer of a long-term care insurance policy to 

16 use the proposed model disclosure form when marketing 

17 such a policy in the State. 

Æ 


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