American Council of Life Insurers (ACLI) President and CEO Frank Keating issued the following statement today in response to the House Energy and Commerce Investigations and Oversight Subcommittee hearing, “Long-Term Care Insurance: Are Consumers Protected for the Long-Term?”
“Further evidence of this commitment is found in a 2006 LifePlans, Inc. study on long-term care insurance claimants, funded by the U.S. Department of Health and Human Services and the Robert Wood Johnson Foundation. It found that the ‘overwhelming majority of claimants are satisfied with their policy and with their interaction with the insurance company.’ About 97 percent of all individuals filing claims had no disagreements with their insurance companies or had a disagreement that was resolved satisfactorily.
“The industry is also working in the states for enactment and enforcement of National Association of Insurance Commissioners (NAIC) models such as the Unfair Life, Accident and Health Claims Settlement Practices Model Act and Regulation, which provides guidelines for the payment of claims, and the NAIC Long-Term Care Insurance Model Act and Regulation. In addition to containing strong consumer protections, the Long-Term Care Model Regulation requires an annual reporting of denied claims. We encourage the states to monitor these reports. If they show unfair trade practices, regulators should take appropriate action.
“We hope that today’s subcommittee hearing and the GAO report will not only bring our industry’s commitment to consumers to light but also will inspire further discussion of how our industry and government can work together to address America’s long-term care needs.”
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The American Council of Life Insurers (ACLI) is a Washington, D.C.-based trade association whose 353 member companies account for 93 percent of the life insurance industry’s total assets in the United States, 93 percent of life insurance premiums and 94 percent of annuity considerations. In addition to life insurance and annuities, ACLI member companies offer pensions, including 401(k)s, long-term care insurance, disability income insurance and other retirement and financial protection products, as well as reinsurance. ACLI's public Web site can be accessed at www.acli.com.