DELAWARE
Delaware Regulator Establishes Long-Term Care Insurance Unit
DOVER, Del. //BestWire// - Delaware is establishing an Office of Long-Term Care Insurance, which will help consumers identify services and coverage options offered in plans, determine waiting periods and total costs, explain and verify premium increases and validate insurers’ licenses, according to a statement from the regulator.
The new division will be part of the Delaware Department of Insurance and staffed by department employees. Earlier in July, more than 25 insurance department staffers finished a half-day training program on long-term care insurance assistance.
Delaware Insurance Commissioner Trinidad Navarro said in a statement these types of policies are “increasingly confusing and complex,” driving the need for the unit.
The regulator highlighted the complex nature of these plans by pointing to the ability of long-term care insurers to offer reduced benefits options to offset premium growth. These options can include reducing the daily, weekly or monthly benefit amounts; increasing elimination periods and decreasing inflation protections.
“Much like we have dedicated teams for assisting consumers with home and auto insurance, health coverage and Medicare, increasing contact from residents has shown us the necessity of highlighting the long-term care insurance support we can provide to Delawareans,” Navarro said in a statement.
Consumers will be able to connect with LTCI staff no matter how they come into contact the department, whether it be by phone, email or from an in-person event, according to Christina Haas, senior policy advisory at the insurance department.
“We want to provide a ‘no wrong door’ approach, while also being proactive about advocacy,” Haas said in an emailed statement. “For example, our Medicare Assistance Bureau staff can ask consumers in their counseling sessions if they also need assistance in the LTCI space.”
The unit will not engage in regulatory activities, and rates, forms, market conduct and legal departments will continue to perform their designated functions for the LTCI market, according to Haas.
“It's possible that improved consumer communication will result in engagement with these teams should the cases require relevant reviews,” she said.
This news builds on what has been a busy summer for the insurance regulator in Delaware. Earlier this month, the department updated regulations for nonrenewal notifications and lookback periods for non-weather-related claims (BestWire, July 3, 2024). In June, Navarro and other department leadership won a long-simmering employee retaliation lawsuit filed by the former human resources director and controller (BestWire, June 18, 2024).
(By Steve Hallo, senior associate editor, BestWire: Steve.Hallo@ambest.com)