Iowa Administrative Code › Agency 191 - Insurance Division › Life and Health Insurance › Chapter 39 - Long-term Care Insurance › Rule 191-39.28 - Premium Rate Schedule Increases

Current through Register Vol. 47, No. 3, July 24, 2024
(1)
				This rule applies to any long-term care policy or certificate issued in this
				state on or after February 1,2003. For certificates issued under a group
				long-term care insurance policy which policy was in force on February 1, 2003,
				the provisions of this rule shall apply on the policy anniversary following
				July 1, 2003.
(2) An insurer shall
				provide notice of a pending premium rate schedule increase, including an
				exceptional increase, to the commissioner at least 30 days prior to the notice
				to the policyholders and shall include:
a.
				Inform ation re quired by rule 191 -3 9.25(514 G);
b. Certification by a qualified actuary that:
(1) If the requested premium rate schedule
				increase is implemented and the underlying assumptions, which reflect
				moderately adverse conditions, are realized, no further premium rate schedule
				increases are anticipated;
(2) The
				premium rate filing is in compliance with the provisions of this
				rule;
c. An actuarial
				memorandum justifying the rate schedule change request that includes:
(1) Lifetime projections of earned premiums
				and incurred claims based on the filed premium rate schedule increase; and the
				method and assumptions used in determining the projected values, including
				reflection of any assumptions that deviate from those used for pricing other
				forms currently available for sale;
1. Annual
				values for the five years preceding and the three years following the valuation
				date shall be provided separately;
2. The projections shall include the
				development of the lifetime loss ratio, imless the rate increase is an
				exceptional increase;
3. The
				projections shall demonstrate compliance with subrule 39.28(3); and
4. For exceptional increases,
* The projected experience should be limited to the increases
				  in claims expenses attributable to the approved reasons for the exceptional
				  increase; and
* In the event the commissioner determines that offsets may
				  exist, the insurer shall use appropriate net projected experience;
(2) Disclosure of how
				reserves have been incorporated in this rate increase whenever the rate
				increase will trigger contingent benefit upon lapse;
(3) Disclosure of the analysis performed to
				determine why a rate adjustment is necessary, which pricing assumptions were
				not realized and why, and what other actions taken by the company have been
				relied on by the actuary;
(4) A
				statement that policy design, underwriting and claims adjudication practices
				have been taken into consideration; and
(5) In the event that it is necessary to
				maintain consistent premium rates for new certificates and certificates
				receiving a rate increase, the insurer will need to file composite rates
				reflecting projections of new certificates;
d. A statement that renewal premium rate
				schedules are not greater than new business premium rate schedules except for
				differences attributable to benefits, unless sufficient justification is
				provided to the commissioner; and
e. Sufficient information for review of the
				premium rate schedule increase by the commissioner.