An Act amending the act of May 17, 1921 (P.L.682, No.284), known as The Insurance Company Law of 1921, in long-term care, providing for premium rate increases.

PRINTER'S NO. 976
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No. 950
Session of
2025
INTRODUCED BY MEHAFFIE, GUENST, HANBIDGE, NEILSON AND PROBST,
MARCH 17, 2025
REFERRED TO COMMITTEE ON INSURANCE, MARCH 17, 2025
AN ACT
Amending the act of May 17, 1921 (P.L.682, No.284), entitled "An
act relating to insurance; amending, revising, and
consolidating the law providing for the incorporation of
insurance companies, and the regulation, supervision, and
protection of home and foreign insurance companies, Lloyds
associations, reciprocal and inter-insurance exchanges, and
fire insurance rating bureaus, and the regulation and
supervision of insurance carried by such companies,
associations, and exchanges, including insurance carried by
the State Workmen's Insurance Fund; providing penalties; and
repealing existing laws," in long-term care, providing for
premium rate increases.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. The act of May 17, 1921 (P.L.682, No.284), known
as The Insurance Company Law of 1921, is amended by adding a
section to read:
Section 1105.1. Premium Rate Increases.--(a) The premium
charged to an insured under a long-term care insurance policy
may not increase due to either:
(1) the increasing age of the insured; or
(2) the duration the insured has been covered under the
policy.
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(b) An insurer may not charge a renewal premium rate for a
long-term care insurance policy by an increase greater than
fifteen per centum (15%) of any premium charged for the policy
during the preceding twelve months.
(c) Except as provided in subsection (d), the commissioner
shall disapprove a premium rate increase under this section if:
(1) the benefits provided are not reasonable in relation to
the premium charged;
(2) the proposed premium rate is excessive, unjustified or
unfairly discriminatory; or
(3) for a given policy form, the premium rate applicable to
any particular policy issued on the policy form is increased by
an amount exceeding an annual rate cap of fifteen per centum
(15%).
(d) With approval of the commissioner, an insurer may
increase a renewal premium greater than fifteen per centum (15%)
upon a showing that a larger increase is necessary because of
utilization of policy benefits in excess of the expected rate.
Section 2. This act shall take effect in 60 days.
20250HB0950PN0976 - 2 -
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