Sec. 1651.055. RATE STABILIZATION. (a) The commissioner shall adopt rules to stabilize long-term care premium rates by:
(1) ensuring that:
(A) initial rates for long-term care benefit plan forms are adequate; and
(B) any rate schedule increases for long-term care benefit plans made after issuance of the plans are justified, adequate, and reasonable in relation to benefits provided to plan holders;
(2) requiring any appropriate plan terms;
(3) imposing penalties on insurers or other entities subject to this chapter that violate a rule adopted under this section; and
(4) protecting plan holders affected by a rate schedule increase.
(b) Except as provided by this subsection, the commissioner shall adopt rules under this section that are consistent with nationally recognized models relating to the stabilization of long-term care premium rates that existed on January 1, 2001. The commissioner may adopt rules consistent with any of those models as they are amended after January 1, 2001. The commissioner shall adopt rules under this subsection that:
(1) to the extent possible, contribute to the uniformity of state laws; and
(2) protect consumers.
(c) In adopting rules under this section, the commissioner may exempt long-term care benefit plans from the requirements of Sections 1651.053(a), (b), and (d).
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 4, eff. April 1, 2005.
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