California leads the world in entertainment and technology and has great weather - but they are decided laggards in supporting many insurance products, including long-term care insurance.
With an elected insurance commissioner and history in strong consumer protection, California aims to looks after its constituents. But could this regulation have the unintended consequence of making California a poor place to buy or own LTC? Here are some issues they may have:
1) Delays in product approval - The California Department of Insurance is much slower in getting products approved than most states. Because of this, some carriers like John Hancock have had to withdraw products from the market until new rates are approved. Less carrier choices are not good for consumers.
2) Unreasonable benefit minimums on partnership plans.
3) Difficulty getting rate increases
4) Hard for new carriers to get in market
5) Hostility to gender based ratings