IA insurance commissioner recommends greater supervision over LTCI sellers

Iowa Insurance Commissioner Susan Voss has proposed substantial changesto her division to better control long-term-care insurance and addresscomplaints from consumers.  In a 37-page report to Gov. ChetCulver, Voss made 27 recommendations Monday on everything fromreviewing the conduct of long-term insurers to creating a Web site forseniors. Some of the suggestions have already been implemented. Otherswill require legislative approval.

Among her ideas:

-Require insurers to prompt- ly pay claims that are not in dispute, andset up an independent review process for policyholders to appeal claimsthat have been denied.
– Standardize policy terminology and definitions.
– Work with other state agencies to better educate consumers about financial and long-term-care issues.
-Require more education for insurance agents who sell long-term-carepolicies. The Iowa Insurance Division has already adopted this measure.
– Meet at least annually with seniors and their families for input on insurance issues that matter to them.
– Create a consumer protection unit. It would handle all consumer complaints for all types of insurance.

The consumer protection unit would be under the command of the division.  Inhearings this summer, some consumers asked the division to create astand-alone consumer advocacy office similar to the advocacy system forutilities. But Voss said that wouldn’t work with an industry that isopen to so much more competition.

Source/more:  Des Moines Register, http://desmoinesregister.com/apps/pbcs.dll/article?AID=/20070918/BUSINESS/709180410/-1/BUSINESS04