Clarification Amendments to the Long-Term Care Rate Filing Uniform Standards
This Weekly Tip is the second detailed tip in the series regarding the amendments made to the individual Long-Term Care Uniform Standards. As a reminder, these amendments become effective for new filings on October 10th. Last week?s tip reviewed the substantive amendments to the Rate Filing Standards for Individual Long-Term Care Insurance ? Issue Age Rate Schedules Only (Issue Age Rate Standards) and the Rate Filing Standards for Individual Long-Term Care Insurance ? Modified Rate Schedules (Modified Rate Standards). In this tip, we use short names for these standards and refer to them collectively as the Rate Standards. This week, we will review amendments that clarify the intent of provisions within the Rate Standards.
The first amendment to the Rate Standards added expenses to ?1A.(2) for the purpose of clarifying that variances in premiums must be based on sound underwriting and sound actuarial principles that are reasonably related to actual or reasonably anticipated loss experience, as well as expenses. This amendment applies to the general criteria for approval of rate filings in both Rate Standards.
Two provisions were added to the Actuarial Submission Requirements of the Issue Age Rate Standards ? specifically ?2B.(3)(h) and (i). These provisions clarify the requirement for descriptions supporting the certifications related to nonforfeiture and inflation protection requirements found in the Core Standards for Individual Long-Term Care Insurance Policies.
Another amendment to the Rate Standardsapplies to the annual actuarial certification requirements in ?3B.(1)(a). This provision clarifies that the statement of sufficiency of the premium rate schedule in the annual rate certification shall include identification of the policy form to which the statement applies as well as the start date and, if applicable, the end date of issue.
Finally, an amendment to the preface to ?4 of the Rate Standards, Additional Submission Requirements, defines a rate schedule increase filing as one that applies to policies for individual long-term care insurance.
Next week, we will review the substantive amendments made to the Core Standards for Individual Long-Term Care Insurance Policies and the Standards for Forms Required to be Used with an Individual Long-Term Care Insurance Application. If you have any questions about this Weekly Tip, or the Insurance Compact, please contact the Insurance Compact Office at Comments@insurancecompact.org.