Alaska Administrative Code › Title 3 - Commerce, Community, and Economic Development › Part 2 - Division of Insurance › Chapter 28 - Life, Health, Variable, and Related Insurance › Article 5 - Health Insurance Marketed as Medicare Supplements › 3 AAC 28.470 - Filings

Current through May 31, 2024
(a) An issuer of medicare supplement policies
				  and certificates shall file annually its forms, rates, rating schedule, and
				  supporting documentation, including ratios of incurred losses to earned
				  premiums by policy duration, for approval by the director. Supporting
				  documentation must demonstrate in accordance with accepted actuarial practices
				  and using reasonable assumptions that the appropriate loss ratio standards
				  under 3 AAC 28.468 can be expected to be
				  met over the entire period for which rates are computed, excluding active life
				  reserves. An expected third-year loss ratio that is greater than or equal to
				  the applicable percentage will be demonstrated for policies or certificates in
				  force less than three years.
(b) As
				  soon as practicable, but before the effective date of enhancements in medicare
				  benefits, an issuer of medicare supplement policies or certificates in this
				  state shall file with the director appropriate premium adjustments necessary to
				  produce loss ratios as anticipated for the current premium for the applicable
				  policies or certificates. The supporting documents necessary to justify the
				  adjustment to produce loss ratios required by
				  3 AAC 28.468(a) must accompany the
				  filing. An issuer shall make premium adjustments necessary to produce an
				  expected loss ratio under a policy or certificate that will conform with
				  3 AAC 28.468 and that are expected to result in a loss
				  ratio at least as great as that originally anticipated in the rates used to
				  produce current premiums by the issuer for the medicare supplement policies or
				  certificates. A premium adjustment that would modify the loss ratio experience
				  under the policy other than the adjustments described in this section may not
				  be made with respect to a policy at any time other than upon its renewal date
				  or anniversary date. Any rider, endorsement, or policy form needed to
				  accomplish the medicare supplement policy or certificate modification necessary
				  to eliminate benefit duplication with medicare shall also be filed with the
				  director in a manner that provides a clear description of the medicare
				  supplement benefits provided by the policy or certificate.
(c) If an issuer fails to make premium
				  adjustments acceptable to the director, the director will, in the director's
				  discretion, order premium adjustments, refunds, or premium credits considered
				  necessary by the director to achieve the loss ratio required by this
				  section.
(d) The director will, in
				  the director's discretion, conduct a public hearing on an increase in a rate
				  for a policy form or certificate form if the experience of the form for the
				  prior reporting period is not in compliance with the applicable loss ratio
				  standard. The determination of compliance will be made by the director without
				  consideration of any refund or credit for the reporting period. Notice of a
				  hearing will be published in a newspaper of general circulation and given in
				  accordance with
				  AS
				  21.06.200.
As of Register 172 (January 2005), the regulations
						attorney made technical revisions under
						AS
						44.62.125(b)(6), to
						3 AAC 28.470(a) and (b).
In 2010 the revisor of statutes, acting under
						AS
						01.05.031, renumbered former AS 21.89.060 as
						AS
						21.96.060. As of Register 196 (January 2011),
						the regulations attorney made a conforming technical revision under
						AS
						44.62.125(b)(6), to the
						authority citation that follows
						3 AAC 28.470, so that the citation to former AS
						21.89.060 now refers to the renumbered statute,
						AS
						21.96.060.
Authority:
AS
						21.06.090
AS 21.06.200
AS 21.42.120
AS 21.42.130
AS 21.84.300
AS 21.87.180
AS
						21.96.060