An Introduction to the Amended iLTC Uniform Standards
The Insurance Compact recently adopted amendments to the individual Long-Term Care Uniform Standards as a result of the Five-Year Review conducted by the Product Standards Committee. This was a very deliberative process initiated in July 2015 and finalized in June 2017. The amended Uniform Standards will become effective for filing on October 10th. Over the course of the next few weeks, the Insurance Compact Office will issue a series of Weekly Tips to assist filers with navigating the amendments.
There were significant changes made to the Core Standards for Individual Long-Term Care Insurance Policies, theRate Filing Standards for Individual Long-Term Care Insurance - Issue Age Rate Schedules Only, and the Rate Filing Standards for Individual Long-Term Care Insurance ? Modified Rate Schedules. These are the changes that we will focus in this Weekly Tip series. As the changes pertain to both form and rate submissions, you may want to take a minute to make sure that all staff involved in the development of long-term care filings are receiving Weekly Tips. Please send any requests to Comments@insurancecompact.org.
Company filers should know that the amendments to the Uniform Standards will apply to new filing submissions made on or after October 10th, and do not require amendments to policies and rates approved prior to the October effective date. One important due date change to make note of is that the annual actuarial certification required for approved initial LTC rate schedules will now be based on calendar year data, and must be submitted no later than May 1st the following year, instead of January 1st. The triennial actuarial memorandum will also have a May 1st due date going forward. The May 1st due date applies to previously approved rate schedules and rate schedules approved under the amended Uniform Standards. We will be reaching out to filing companies and their actuaries regarding the due date change on annual and triennial rate certification submissions.
In mid-October, the Insurance Compact Office will be offering a webinar series and one of the sessions will be dedicated to the changes made to the individual Long-Term Care Uniform Standards. Be on the lookout for the webinar announcement. More information will be made available on the Insurance Compact Event Calendar.
If you have any questions about this Weekly Tip, or the Insurance Compact, please contact the Insurance Compact Office at Comments@insurancecompact.org.