Insurance Code section 10237.1
(a)
Increases benefit levels annually in a manner so that the increases are compounded annually at a rate of not less than 5 percent.(b)
Guarantees the insured individual the right to periodically increase benefit levels without providing evidence of insurability or health status and without regard to claim status or history so long as the option for the previous period has not been declined. The amount of the additional benefit shall be no less than the difference between the existing policy benefit and that benefit compounded annually at a rate of at least 5 percent for the period beginning with the purchase of the existing benefit and extending until the year in which the offer is made.(c)
Covers a specified percentage of actual or reasonable charges and does not include a maximum specified indemnity amount limit.(d)
The insurer of a group long-term care insurance policy as defined in subdivision (a), (b), or (c) of Section 10231.6, shall offer the holder of the group policy the opportunity to have the inflation protection pursuant to this section extended to existing certificate holders, but the insurer is relieved of the obligations imposed by this section if the holder of the group policy declines the insurer’s offer.
Source:
Section 10237.1, https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=INS§ionNum=10237.1.
(updated Jan. 1, 2000; accessed Jun. 30, 2025).