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INSURERS: BULLETIN 96-11
NOTICE OF RECISION OF BULLETIN 96-11

Rescission of Bulletin No. 96-11 Relating to Approval of "Tax-qualified" Long-term Care Policies
February 19, 1997

You are advised that the Department of Insurance has rescinded the captioned Bulletin as ordered in the Peremptory Writ of Mandate of February 19, 1997, issued in the matter of Congress of California Seniors, Consumers for Quality Care, and Lois Wellington vs. Quackenbush, No. BC164481, in the Superior Court, County of Los Angeles. That Writ also commanded the Department to rescind all approvals or acknowledgments of Long-term Care products filed pursuant to that Bulletin - such products may not be delivered to new insureds unless or until they are approved as set forth below. Insurers that have received such approvals or acknowledgments have been notified individually of the rescissions. Note that rescissions of approvals of disability insurance policies do not affect the validity of policies between the parties.

The Department will entertain filings of Long-term Care policies designed to be federally "tax-qualified" under the "Health Insurance Portability and Accountability Act of 1996" (Public Law 104-191, also known as "Kassebaum-Kennedy") on a case-by-case basis under the final sentence of California Insurance Code 10232.8(c). Insurers making such filings must demonstrate to the Commissioner's satisfaction that the interests of persons to be insured under the policies would be better served than they would be by policies complying fully with the standards stipulated in California law.

Questions about this Notice should be directed to:

Amy Zajac
California Department of Insurance
300 Capitol Mall
Sacramento, CA 95814
Telephone (916) 492-3565

PETER GROOM
Assistant General Counsel

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