California Code of Regulations
Title 10 - Investment
Chapter 5 - Insurance Commissioner
Subchapter 2 - Policy Forms and Other Documents
Article 1.5 - Standards for Determining Conformity of Individual Disability Policies with the Provisions of Paragraph (7) of Subdivision (b) of Section 10291.5 of the Insurance Code
Subarticle 4 - Basic Medical Benefits
Section 2220.15 - Basic Hospital Benefits

(a) A hospital benefit, other than a benefit described in Sections 2220.17 or 2226.20, shall be deemed not sufficient to be of real economic value to the insured if:

(b) This section does not prohibit a policy or rider designed and actually programmed to provide hospital benefit for a specified individual to supplement existing in force coverage if (i) such supplemental daily hospital benefit is not less than $10.00 and the benefit period is not less than 60 days, or (ii) the benefit period is equal to the benefit period of existing in force coverage, or (iii) is a rider issued at the same time as the policy by the same insurer to provide full coverage benefits, such as, a rider to either eliminate or reduce a deductible, waiting period or elimination period.

(c) This section does not apply to additional daily hospital benefits issued to the insured by the same insurer under guaranteed insurability, future purchase options or other similar policy provisions such as, additional benefits issued by application of a cash dividend.

(d) This section does not prohibit a hospital benefit which, in the opinion of the Commissioner, is not less than the actuarial equivalent of one of the benefits specified in Subsection (a) of this section.