Connecticut Administrative Code
Title 38a - Insurance Department
528a - Group Short-Term Care Insurance
Section 38a-528a-12 - Inflation protection

Universal Citation: CT Reg of State Agencies 38a-528a-12

Current through March 14, 2024

(a) An insurer shall offer the option to purchase a certificate that provides for meaningful periodic benefit level increases to account for reasonably anticipated increases in the costs of short-term care. Inflation protection includes:

(1) Increases in benefit levels annually in a manner so that the increases are compounded annually at a stated interest rate;

(2) The right to periodically increase benefit levels without providing evidence of insurability or health status so long as the option for the previous period has not been declined. The amount of the additional benefit shall be no less than the difference between the existing certificate benefit and that benefit compounded annually at a stated interest rate for the period beginning with the purchase of the existing benefit and extending until the year in which the offer is made; or

(3) A specified percentage of actual or reasonable charges, not including a maximum specified indemnity amount or limit.

(b) Insurers shall include the following information in or with the outline of coverage:

(1) A graphic comparison of the benefit levels of a certificate that increases benefits over the certificate period with a certificate that does not increase benefits. The graphic comparison shall show benefit levels over at least a twenty (20) year period.

(2) Any expected premium increases or additional premiums to pay for automatic or optional benefit increases. An insurer may use a reasonable graphic demonstration for the purposes of this disclosure.

(c) Inflation protection benefit increases under a certificate that contains such benefits shall continue without regard to an insured's age, claim status or claim history, or the length of time the person has been insured under the certificate.

(d) Inflation protection that provides for automatic benefit increases shall be offered at a premium that the insurer expects to remain constant. Such offer shall disclose in a conspicuous manner the fact that the premium may change in the future unless the premium is guaranteed to remain constant.

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