Arkansas Administrative Code › Agency 054 - Arkansas Insurance Department › Rule 054.00.08-003 - Rule 94: Arkansas Long Term Care Insurance Partnership Program

Current through Register Vol. 49, No. 6, June, 2024
Section 1. Purpose
The purpose of this Rule is to implement Act 99 of 2007 of the
			 Arkansas State Legislature, entitled "An Act To Establish the Arkansas
			 Long-Term Care Partnership Program," by providing requirements to establish
			 Partnership-Qualified Long-Term Care ("PQLTC") insurance policies in this
			 State, in compliance with the Federal Long-Term Care Partnership Program. The
			 Rule provides standards for producers soliciting such policies and for insurers
			 desiring to issue policies qualifying under such program.
Section 2.
Authority
This Rule is issued under the authority vested in the Arkansas
			 Insurance Commissioner (the "Commissioner") by Ark. Code Ann. §
								23-97-320,
			 to implement rules for long-term care insurance policies and to assist in the
			 development of long-term care insurance policies under Act 99 of 2007, "An Act
			 To Establish the Arkansas Long-Term Care Partnership Program." In addition,
			 this Rule is also issued under the authority vested in the Commissioner under
			 §
								23-61-108, and
			 the Arkansas Administrative Procedure Act, codified at Ark. Code Ann. §
								25-15-201 et
			 seq., and other applicable laws or rules.
Section 3.
Applicability and
		  Scope
This Rule applies to all Arkansas PQLTC policies including
			 certificates issued under a group insurance contract; and this Rule applies to
			 all producers soliciting such policies in Arkansas and to all insurers issuing
			 such policies in Arkansas. Compliance with this Rule for such policies and
			 parties is in addition to compliance with Arkansas Insurance Department Rule
			 13, "Long-Term Care Insurance."
Section
		  4.
Definitions
In addition to the definitions provided in Ark. Code Ann. §
								23-97-304,
			 the following definitions shall apply for purposes of this Rule:
A. "Partnership-Qualified Long-Term Care
		  Insurance policy" means a long-term care insurance policy that meets all of the
		  requirements of Section 5 of this Rule.
B. "Inflation protection benefit" means a
		  feature that increases benefit levels annually:
1) by compounding annually at a stated rate
		  of not less than 3% for ages less than 61 and by annual simple interest at a
		  stated rate of not less than 3% for ages 61 through 75; or
2) based on changes to the Consumer Price
		  Index. Future guaranteed purchase options do not meet this
		  definition.
C. "Consumer
		  price index" means the consumer price index for all urban consumers, U.S. city
		  average, and all items, as determined by the Bureau of Labor Statistics of the
		  United States Department of Labor.
D. "Federal Long-Term Care Partnership
		  Program" means the Long-Term Care Partnership Program as authorized under the
		  Deficit Reduction Act of 2005, (Section 6021), which amended Section 1917(b) of
		  the Federal Social Security Act to provide for Qualified State Long-Term Care
		  Insurance Partnership Programs.
E.
		  "Secretary" means the Secretary of the United States Department of Health and
		  Human Services.
F. "Rule 13" means
		  Arkansas Insurance Department Rule, "Long-Term Care Insurance."
G. "Commissioner" means the Arkansas
		  Insurance Commissioner.
H.
		  "Insurer" or "Issuer" means an entity authorized to issue long-term care
		  insurance under Ark. Code Ann. §
								23-97-304(7)(C).