‘‘(B) administrative law judges, may, if
necessary, compel by subpoena the attendance
of witnesses and the production of evidence at
any designated place or hearing.
‘‘(2) ENFORCEMENT OF SUBPOENAS.—In case
of contumacy or refusal to obey a subpoena lawfully
issued under this subsection and upon application of
the Secretary, an appropriate district court of the
United States may issue an order requiring compli-
ance with such subpoena and any failure to obey
such order may be punished by such court as a con-
tempt thereof.
‘‘(d) ISSUANCE OF ORDERS.—If the administrative
law judge determines, upon the preponderance of the evi-
dence received, that a person or entity named in the com-
plaint has violated the requirements of part B, the admin-
istrative law judge shall state the findings of fact and issue
and cause to be served on such person or entity an order
described in section 2154 which includes the findings and
the basis of the order.
‘‘CEASE AND DESIST ORDER WITH CIVIL MONEY PENALTY
‘‘SEC. 2154. (a) CEASE AND DESIST ORDER.—
‘‘(1) IN GENERAL.—Subject to the succeeding
provisions of this section, the order under this sec-
tion—
‘‘(A) shall require the person or entity—
‘‘(i) to cease and desist from such vio-
lations, and
‘‘(ii) to pay a civil penalty in an
amount not to exceed $25,000 (or $15,000
in the case of a violation by an agent) for
each such violation; and
‘‘(B) may require the person or entity to
take such other remedial action as is appro-
priate.
‘‘(2) AMOUNT OF CIVIL PENALTY.—The amount
of a civil penalty under paragraph (1)(A)(ii) may
take into account the penalties imposed by a State
with respect to the same such violation.
‘‘(3) PROCEDURES FOR CIVIL PENALTY.—The
provisions of section 1128A (other than the first
sentence of subsection (a) and other than subsection
(b)) shall apply to a civil money penalty under this
subsection in the same manner as such provisions
apply to a penalty or proceeding under section
1128A(a).
‘‘(b) CRIMINAL PENALTY
FOR MULTIPLE AGENT
VIOLATIONS.—In the case of an agent who has committed
multiple violations of the requirements of subpart 2 of
part B, such agent also may be imprisoned not more than
5 years, or fined in accordance with title 18, United States
Code, or both.
‘‘(c) CORRECTIONS
WITHIN 30 DAYS.—No order
shall be imposed under this section by reason of any viola-
tion if the person or entity establishes to the satisfaction
of the Secretary by clear and convincing evidence that—
‘‘(1) such violation was due to reasonable cause
and was not intentional and was not due to willful
neglect, and
‘‘(2) such violation is corrected within the 30-
day period beginning on the earliest date the person
or entity knew, or exercising reasonable diligence
should have known, that such a violation was occur-
ring.
‘‘(d) WAIVER BY SECRETARY.—In the case of a viola-
tion which is due to reasonable cause and is not inten-
tional or due to willful neglect, the Secretary may waive
part or all of the civil money penalty imposed by sub-
section (a)(1)(A)(ii) to the extent that payment of such
penalty would be grossly excessive relative to the violation
involved and to the need for deterrence of violations.
‘‘(e) REVIEW BY THE SECRETARY.—The decision and
order of an administrative law judge under this section
shall become the final agency decision and order of the
Secretary unless, within 30 days, the Secretary modifies
or vacates the decision and order, in which case the deci-
sion and order of the Secretary shall become a final order
under this section.
‘‘(f) JUDICIAL REVIEW.—A person or entity ad-
versely affected by a final order issued under this section
may, within 45 days after the date the final order is is-
sued, file a petition in the Court of Appeals for the appro-
priate circuit for review of the order.
‘‘(g) ENFORCEMENT OF ORDERS.—If a person or en-
tity fails to comply with a final order issued under this
section against the person or entity after opportunity for
judicial review under subsection (f), the Secretary shall file
a suit to seek compliance with the order in any appropriate
district court of the United States. In any such suit, the
validity and appropriateness of the final order shall not
be subject to review.
‘‘ESTABLISHMENT OF TOLL-FREE TELEPHONE HOTLINE
‘‘SEC. 2155. In the case of a nonregulatory State,
the Secretary shall provide for the establishment of the
toll-free telephone information and complaint system de-
scribed in section 2163 in carrying out this subpart in the
State.
‘‘Subpart 2—Conditions for Approval of State
Regulatory Programs
‘‘GENERAL REQUIREMENT
‘‘SEC. 2161. (a) IN GENERAL.—The Secretary may
not approve a State regulatory program for purposes of
this title, unless the Secretary determines that the pro-
gram—
‘‘(1) provides for the application and enforce-
ment of the Standards under part B; and
‘‘(2) complies with the requirements of this sub-
part.
‘‘(b) PERIODIC REVIEW
OF STATE REGULATORY
PROGRAMS.—The Secretary periodically shall review State
regulatory programs to determine if they continue to meet
the requirements for approval under subsection (a) and
may determine whether a long-term care insurance policy
meets the applicable requirements of part B. If the Sec-
retary determines that a State regulatory program no
longer meets such requirements or is no longer in compli-
ance, before making a final determination that a State
regulatory program no longer meets such requirements,
the Secretary shall provide the State a hearing and an
opportunity of 6 months (or, in the case in which State
legislation is required in order for the State to be in com-
pliance with such requirements, such longer period as is
necessary to enact such legislation) to adopt such a plan
of correction as would permit the program to continue to
meet such requirements. If the Secretary makes a final
determination that the State regulatory program, after
such a hearing and opportunity, fails to meet such require-
ments, the Secretary shall assume responsibility under
section 2101(b) with respect to certifying policies in the
State and shall exercise full authority under subpart 1 of
this part for persons and entities in the State.
‘‘ENFORCEMENT
‘‘SEC. 2162. (a) IN GENERAL.—The enforcement
process under each State regulatory program shall be de-
signed in a manner so as to secure compliance with the
Standards within 30 days after the date of a finding of
noncompliance with such Standards.
‘‘(b) PROCESS.—The enforcement process under each
State regulatory program shall provide for—
‘‘(1) procedures for individuals and entities to
file written, signed complaints respecting alleged vio-
lations of the Standards;
‘‘(2) responding on a timely basis to such com-
plaints;
‘‘(3) the investigation of—
‘‘(A) those complaints which, on their face,
have a substantial probability of validity, and
‘‘(B) such other alleged violations of the
Standards as the program finds appropriate;
‘‘(4) notice and opportunity for a hearing be-
fore executing sanctions;
‘‘(5) the imposition of appropriate sanctions
(which include, in appropriate cases, the imposition
of a civil money penalty) in the case of a person or
entity determined to have violated the Standards;
and
‘‘(6) an annual report to the Secretary on de-
tails concerning complaints filed under the process,
including the disposition of, and actions resulting
from, such complaints and cases where compliance
was not secured under subsection (a).
‘‘(c) UNIFORM
METHODOLOGY
FOR
RECORDING
COMPLAINTS.—The process under subsection (b) shall
provide for the recording of consumer complaints filed
under subsection (b)(1) in accordance with a uniform
methodology developed by the NAIC or the Secretary.
‘‘TOLL-FREE TELEPHONE SYSTEM
‘‘SEC. 2163. (a) IN GENERAL.—Each State regu-
latory program shall provide a toll-free telephone system
which provides—
‘‘(1) for a system for the provision of informa-
tion concerning (A) how to file a complaint under
the process described in section 2162, (B) on com-
plaints received under such process respecting par-
ticular long-term care insurance policies or carriers,
and (C) the compliance of particular long-term care
insurance policies or carriers with the requirements
of this title;
‘‘(2) information to employers and consumers
about carriers that offer long-term care insurance
policies in the area covered by the regulatory author-
ity; and
‘‘(3) information on how to obtain counseling to
evaluate the benefits, coverage, conditions, exclu-
sions, and cost of such policies.
‘‘(b) ACCESS TO INFORMATION ON COMPLAINTS.—
‘‘(1) IN GENERAL.—Each State regulatory pro-
gram shall provide, through the toll-free telephone
system under subsection (a), for consumer access to
complaints filed with the State commissioner or su-
perintendent of insurance with respect to long-term
care insurance policies. Any such disclosure of com-
plaint information shall be accompanied by a general
disclaimer stating that no representations are being
made as to the merits of such a complaint. Any com-
plaint that has resulted in a final order in favor of
an agent or issuer of a policy shall be removed from
the records of complaints to which consumers have
access.
‘‘(2) CONFIDENTIALITY.—The access provided
under paragraph (1) shall be limited to the extent
required to protect the confidentiality of the identity
of individual policyholders consistent with State law.
‘‘PUBLICATION OF INFORMATION
‘‘SEC. 2164. Each State regulatory program shall
publish annually a summary—
‘‘(1) by carrier, of (A) the types of long-term
health care policies issued and (B) the types of com-
plaints filed concerning such policies, and
‘‘(2) of the information reported by policy
under section 2146.
‘‘PROCESS FOR APPROVAL OF PREMIUMS
‘‘SEC. 2165. (a) IN GENERAL.—Each State regu-
latory program shall—
‘‘(1) provide for a process for approving or dis-
approving proposed premium increases with respect
to long-term care insurance policies;
‘‘(2) provide for the receipt and consideration of
public comments before approving or disapproving
such a premium increase;
‘‘(3) provide, in the case of a proposed premium
increase 
described 
in 
section 
2126(c)(2) 
or
2130(c)(2)(E), for—
‘‘(A) a public hearing at least 30 days be-
fore the date of approval or disapproval of any
such increase; and
‘‘(B) for notice to be sent to each policy-
holder who would be affected by such proposed
increase at least 30 days before the date of the
public hearing under subparagraph (A).
‘‘(b) CONDITIONS
FOR APPROVAL.—No such pre-
mium increase shall be approved (or deemed approved) un-
less the proposed increase is accompanied by an actuarial
memorandum which—
‘‘(1) includes a description of the assumptions
which justify the increase,
‘‘(2) fully supports the increase,
‘‘(3) contains such information as may be re-
quired under the Standards,
‘‘(4) is made available to the public, and
‘‘(5) is certified by an actuary who has no fi-
nancial relationship with the carrier applying for the
increase.
‘‘(c) SECRETARIAL AUTHORITY.—In the case of a
State without an approved regulatory program, the Sec-
retary shall provide for the activities described in sub-
sections (a) and (b).
‘‘ANNUAL REPORTS
‘‘SEC. 2166. Each State regulatory program shall
provide for annual reports to the Secretary on the imple-
mentation and enforcement of the Standards in the State.
‘‘INCREASE IN FUNDING FOR LONG-TERM CARE INSUR-
ANCE, INFORMATION, COUNSELING, AND ASSISTANCE
THROUGH STATE REGULATORY PROGRAMS
‘‘SEC. 2167. In addition to amounts otherwise au-
thorized to be appropriated, there are authorized to be ap-
propriated, under section 4360(f) of the Omnibus Budget
Reconciliation Act of 1990, $10,000,000 for each of fiscal
years 1994, 1995, and 1996, to fund grant programs
under such section for the purpose of providing informa-
tion, counseling, and assistance relating to long-term care
benefits under this title and the procurement of adequate
and appropriate long-term care insurance.’’.
SEC. 3. STUDY OF STANDARD MEASURE OF VALUE FOR
LONG-TERM CARE INSURANCE POLICIES.
The Secretary of Health and Human Services shall
provide for the conduct of a study to develop a standard
measure of value for long-term care insurance policies.
Not later than 2 years after the date of the enactment
of this title, the Secretary shall prepare and submit to the
appropriate committees of Congress a report concerning
such study.
SEC. 4. WAIVER OF PAPERWORK REQUIREMENTS.
Chapter 35 of title 44, United States Code, and Exec-
utive Order 12291 shall not apply to information and reg-
ulations required for purposes of carrying out this Act and
the amendments made by this Act.
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