Class Action Lawsuit on LTCi Premium Increases

Jun 10, 2019 at 5:10 PM

  1. Arthur Rudnick
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    Arthur Rudnick Moderator Moderator

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  2. Mr_Ed
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    Mr_Ed, Jun 11, 2019 at 12:18 PM
    #2
  3. Arthur Rudnick
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    Arthur Rudnick Moderator Moderator

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    Scott,
    I'm not sure if the Insurance Dept. is the issue.
    It's a question if Calpers broke their contract by increasing premiums.
    If their policy states that they had a right to increase premiums, then this lawsuit won't get off the ground.
     
  4. Mr_Ed
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    CalPERS is not an insurance company. CalPERS is not regulated by the California Department of Insurance. CalPERS is not regulated by California's Rate Stability Regulation. If you examine the CalPERS "policies" they never use the word "insurance". They use the phrase "long term care program" NOT "long-term care insurance." They are a self-funded group, they are NOT an actual insurance company.
     
    Mr_Ed, Jun 11, 2019 at 2:17 PM
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  5. Arthur Rudnick
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    Arthur Rudnick Moderator Moderator

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    Understood Scott,
    But the end result is if their contract states that they are allowed to raise premiums.
    Technically insurance or not, there's a contract involved. Did they break the terms of their contract?
    It appears they raised premiums in the past and there was no civil lawsuit involved.
     
  6. Mr_Ed
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    agreed
     
    Mr_Ed, Jun 11, 2019 at 4:44 PM
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  7. Mike Siegal
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    Mike Siegal Super Genius

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    1.2 Billion ???

    That should put a nice size 'DENT' in the California Retirement Pension!
     
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