Florida Administrative Code › 69 - DEPARTMENT OF FINANCIAL SERVICES › 69O - OIR - Insurance Regulation › Chapter 69O-157 - LONG-TERM CARE INSURANCE › Section 69O-157.107 - Required Disclosure of Rating Practices to Consumers

Current through Reg. 50, No. 138; July 16, 2024
(1) Other than policies for which no
				applicable premium rate or rate schedule increases can be made, insurers shall
				provide all of the information listed in this rule to the applicant at the time
				of application or enrollment, unless the method of application does not allow
				for delivery at that time. In such case, an insurer shall provide all of the
				information listed in this rule to the applicant no later than at the time of
				delivery of the policy or certificate.
(a) A
				statement that the policy may be subject to rate increases in the
				future;
(b) An explanation of
				potential future premium rate revisions, and the policyholder's or
				certificateholder's option in the event of a premium rate revision;
(c) The premium rate or rate schedules
				applicable to the applicant that will be in effect until a request is made for
				an increase;
(d) A general
				explanation for applying premium rate or rate schedule adjustments that shall
				include:
1. A description of when premium rate
				or rate schedule adjustments will be effective (e.g., next anniversary date,
				next billing date, etc.); and
2.
				The right to a revised premium rate or rate schedule as provided in paragraph
				69O-157.107(1)(b),
				F.A.C., if the premium rate or rate schedule is changed;
(e)
1.
				Information regarding each premium rate increase on this policy form or similar
				policy forms over the past 10 years for this state or any other state that, at
				a minimum, identifies:
a. The policy forms
				for which premium rates have been increased;
b. The calendar years when the form was
				available for purchase; and
c. The
				amount or percentage of each increase. The percentage may be expressed as a
				percentage of the premium rate prior to the increase, and may also be expressed
				as minimum and maximum percentages if the rate increase is variable by rating
				characteristics.
2. The
				insurer may, in a fair manner, provide additional explanatory information
				related to the rate increases.
3.
				An insurer shall have the right to exclude from the disclosure premium rate
				increases that apply only to blocks of business acquired from other
				nonaffiliated insurers or the long-term care policies acquired from other
				nonaffiliated insurers when those increases occurred prior to the
				acquisition.
4.
a. If an acquiring insurer files for a rate
				increase on a long-term care policy form acquired from nonaffiliated insurers
				or a block of policy forms acquired from nonaffiliated insurers on or before
				the later of the effective date of this Part II or the end of a 24 month period
				following the acquisition of the block or policies, the acquiring insurer may
				exclude that rate increase from the disclosure.
b. The nonaffiliated selling insurer shall
				include the disclosure of that rate increase in accordance with subparagraph
				69O-157.107(1)(e)
				1., F.A.C.
5. If the
				acquiring insurer in subparagraph
				69O-157.107(1)(e)
				4., F.A.C., files for a subsequent rate increase, even within the 24 month
				period, on the same policy form acquired from nonaffiliated insurers or block
				of policy forms acquired from nonaffiliated insurers referenced in subparagraph
				69O-157.107(1)(e)
				4., F.A.C., the acquiring insurer shall make all disclosures required by
				paragraph 69O-157.107(1)(e),
				F.A.C., including disclosure of the earlier rate increase referenced in
				subparagraph 69O-157.107(1)(e)
				4., F.A.C.