2005 California Government Code Sections 31696.1-31696.5 Article 8.8. Long-Term Care Group Insurance

31696.1.  (a) The board of retirement may provide a long-term care
insurance program for retired members and their spouses, their
parents, and their spouses' parents.
   (b) Subject to Section 31696.5, the board may permit active
members and their spouses, their parents, and their spouses' parents
to enroll in the long-term care insurance program.
   (c) The long-term care insurance plan shall be made available
periodically during open enrollment periods determined by the board.
   (d) The board shall award contracts to carriers who are qualified
to provide long-term care benefits.
   (e) The long-term care insurance plan shall include home,
community, and institutional care and shall provide substantially
equivalent coverage to that required under Chapter 2.6 (commencing
with Section 10230) of Part 2 of Division 2 of the Insurance Code and
shall meet those requirements set forth in the Knox-Keene Health
Care Service Plan Act of 1975 (Chapter 2.2 (commencing with Section
1340) of Division 2 of the Health and Safety Code).  However, the
Department of Managed Health Care shall have no jurisdiction over the
insurance plan authorized by this article.
   (f) Notwithstanding subdivision (a), no person shall be enrolled
unless he or she meets the eligibility and underwriting criteria
approved by the board.
   (g) The board shall approve eligibility criteria for enrollment,
approve appropriate underwriting criteria for potential enrollees,
approve the scope of covered benefits, approve the criteria to
receive benefits, and approve any other standards as needed.
31696.2.  (a) The full cost of enrollment in a long-term care
insurance plan shall be paid by the enrollees.
   (b) The long-term care insurance plan shall not become part of, or
subject to, the retirement or health benefits programs administered
by the system.
31696.3.  (a) The board shall establish a trust fund designated as
the Long-Term Care Fund for the purpose of the payment of the costs
and administration of the long-term care plan.  The Long-Term Care
Fund shall be held for the exclusive benefit of enrollees and the
payment of the costs and administration of the program.
   (b) The board shall have exclusive control of the administration
and investment of the Long-Term Care Fund, except that in a county
having a board of investments, the board of investments shall have
exclusive control of the investment of the fund.  Funds in the
Long-Term Care Fund shall be invested pursuant to the law governing
the investment of the retirement fund.
   (c) Income, of whatever nature, earned on the Long-Term Care Fund
shall be credited to the fund.
31696.4.  The board is authorized to recover the administrative
costs of the long-term care insurance program from insurance carriers
and premiums paid by enrollees.
31696.5.  Subdivision (b) of Section 31696.1 shall not be operative
in any county until the board of supervisors shall, by resolution
adopted by a majority vote, make that subdivision applicable in the
county.