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Saturday April 19th 2014



Senate Bill 281 Would Regulate Chronic Care Hybrids

SacramentoSen. Ron Calderon, D-Montebello, Calif., has introduced Senate Bill 281, a bill that would let insurers sell life insurance-institutional care hybrids that are not life insurance-long-term care hybrids. S.B. 281 would let an insurer sell a life insurance policy with a provision or rider designed in such a way that the policy would pay accelerated death benefits, or “special benefits,” when the insured came to need institutional care and was expected to need institutional care for the rest of his or her life. Today, California allows insurers to sell life insurance policies with chronic-illness accelerated death benefits triggers only if the riders comply with most provisions of the state’s long-term care insurance (LTCI) laws, as reported at