Long-Term Care Standard Updates, effective April 4
As of April 4th, the following amended and new Uniform Standards became effective and can be accessed on the Insurance Compact’s Rulemaking Record.
- Rate Filing Standards for Individual Long-Term Care Insurance Issue Age Rate Schedules Only (IIPRC-LTC-I-3-RATEI)
- Standards for Filing Revisions to In-Force Rate Filing Schedules for Individual Long-Term Care Insurance (IIPRC-LTC-I-3-RATEINC)
In 2021, the Management Committee asked the Product Standards Committee (PSC) to consider whether to reduce or remove the 15% threshold currently in place for Compact-approved long-term care insurance rate increases. The PSC developed options, and ultimately the Commission passed the option proposed by Washington to the Management Committee. This approach separates the requirements for the initial rate schedule and for rate schedule increases for in-force business into two Uniform Standards. This approach permits a Compacting State to opt out of the in-force rate increase Uniform Standard while continuing to participate in other individual long-term care insurance (ILTC) Uniform Standards, including for the policy and initial rate schedule.
The following states have opted out of the Long-Term Care standards and therefore are not able to be included on a filing utilizing these standards: Arizona, Connecticut, Delaware, District of Columbia, Indiana, Montana and New Jersey. The South Carolina Insurance Department has been granted a stay of effectiveness for IIPRC-LTC-I-3-RATEINC; therefore, South Carolina may not be included on filing submissions utilizing the new Uniform Standards.
If you have any questions about filing Long-Term Care products with the Insurance Compact, please contact the Insurance Compact Office.