With respect to premium changes, what is a key regulation concerning long-term care policies?

Insurers are required to notify policyholders before increasing premiums as a key regulation for long-term care policies. This regulation is essential because it safeguards the interests of policyholders by ensuring transparency and providing them with the opportunity to assess the impact of premium increases on their financial planning. Advanced notice about premium hikes allows policyholders to make informed decisions regarding their coverage, including whether to continue with the policy, request more information, or consider alternative options.

This requirement reflects the principles of fair treatment and accountability within the insurance industry, especially in long-term care where the need for stability in premium costs is paramount due to the often significant financial commitments involved. It helps maintain the trust between insurers and policyholders, which is crucial for long-term care insurance products that are often held for many years.