Posted September 21, 2010 4:24PM PST

Proposed changes to the consumer disclosure model act by life insurers were rejected last week by a National Conference of Insurance Legislators (NCOIL) committee.

The Life Insurance & Financial Planning Committee plans to hold a second conference call on Friday to look at the proposed model act again, according to Jordon Estey, director of legislative affairs and education for NCOIL.

NCOIL's proposed consumer disclosure model act would require insurers to let insureds who are 60 or older or are known by insurers to be chronically or terminally ill to be told about life settlements or other options if they are planning to surrender or lapse their policies.

The committee is preparing a final model act proposal to be considered for adoption at the group's annual meeting on Nov. 18 to 21 in Austin, Texas.

The committee rejected proposed changes to the model act by an insurance trade group and a carrier that would have weakened the model act. If passed by NCOIL, the model act can be used as a basis for state laws throughout the country next year.

The American Council of Life Insurers (ACLI), representing major carriers, had suggested a disclosure provision like the one passed by the California Legislature last year. That version would have required carriers to advise policyholders if they were considering making a change in the status of their policies to consult an insurance or financial adviser.

MetLife had proposed a written notice to be developed at no cost to insurers saying that life insurance, life settlements or other alternatives to lapsing or surrendering a policy may not be available to a particular policy owner, depending on his or her circumstances, and such policy owners should contact an adviser, agent or broker to get further advice.

By TREVOR THOMAS
Published 9/21/2010  Life & Health

The cost of private nursing home care may have increased about 14% over the past 2 years.
Prudential Financial Inc., Newark, N.J. (NYSE:PRU), has reported that figure in its 2010 long term care cost study.

Prudential found that the cost of assisting living facilities has increased just 2% since it published a review of 2008  long term care prices. The recession has slowed cost increases at some facilities and caused others to close down completely, the company says.

The average daily cost of a private nursing home room was $247, or $90,155 a year. Rates for a semiprivate room averaged $215 daily, or $78,800 yearly, Prudential says.

Home health care costs are up an average of 13%, but the average hourly rate for a home health aide or certified nursing assistant remained flat at $21 per hour. For licensed practical nurses, rates increased 17%, to $54 an hour.

The states with the highest nursing home private room costs were Alaska ($232,100 annually), Connecticut ($143,800) and New York ($138,300). Louisiana ($55,900), Arkansas ($55,800), and Missouri ($57,700) had the lowest costs for this type of facility.

For home health care, the highest-cost states in average hourly rates were Alaska ($32), Wyoming ($31) and Connecticut ($27). The least costly states for home care services were Texas ($12), Louisiana ($15) and Alabama ($15).

For assisted-living facilities, the highest costs were found in Delaware (annual average base rate: $63,000), Maine ($58,400) and Connecticut $54,000). Lowest cost states in this category: Indiana ($25,600), Florida ($26,400) and Nebraska ($27,300).

Prudential notes that 74% of consumers ages 55 to 65 polled for a recent survey said they are concerned about needing some kind of long term care, and that 25% of all consumers admitted that they have no idea what a day in a nursing home costs. Only 22% of the participants mentioned the idea of using private LTC insurance to pay for care.

The cost of private nursing home care may have increased about 14% over the past 2 years.
Prudential Financial Inc., Newark, N.J. (NYSE:PRU), has reported that figure in its 2010 long term care cost study.

Prudential found that the cost of assisting living facilities has increased just 2% since it published a review of 2008  long term care prices. The recession has slowed cost increases at some facilities and caused others to close down completely, the company says.

The average daily cost of a private nursing home room was $247, or $90,155 a year. Rates for a semiprivate room averaged $215 daily, or $78,800 yearly, Prudential says.

Home health care costs are up an average of 13%, but the average hourly rate for a home health aide or certified nursing assistant remained flat at $21 per hour. For licensed practical nurses, rates increased 17%, to $54 an hour.

The states with the highest nursing home private room costs were Alaska ($232,100 annually), Connecticut ($143,800) and New York ($138,300). Louisiana ($55,900), Arkansas ($55,800), and Missouri ($57,700) had the lowest costs for this type of facility.

For home health care, the highest-cost states in average hourly rates were Alaska ($32), Wyoming ($31) and Connecticut ($27). The least costly states for home care services were Texas ($12), Louisiana ($15) and Alabama ($15).

For assisted-living facilities, the highest costs were found in Delaware (annual average base rate: $63,000), Maine ($58,400) and Connecticut $54,000). Lowest cost states in this category: Indiana ($25,600), Florida ($26,400) and Nebraska ($27,300).

Prudential notes that 74% of consumers ages 55 to 65 polled for a recent survey said they are concerned about needing some kind of long term care, and that 25% of all consumers admitted that they have no idea what a day in a nursing home costs. Only 22% of the participants mentioned the idea of using private LTC insurance to pay for care.

To read more about NCOIL's Disclosure Law and Bill of Rights, click here: http://www.theinsurancebellwether.com/2010/08/ncoil-seeking-comment-on-beneficiaries.html