Iowa Administrative Code › Agency 191 - Insurance Division › Life and Health Insurance › Chapter 39 - Long-term Care Insurance › Rule 191-39.25 - Required Disclosure of Rating Practices to Consumers

Current through Register Vol. 47, No. 3, July 24, 2024
(1)
Applicability.
This rule
				applies to any new 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 prior to February 1, 2003, the
				provisions of this rule shall apply on the policy anniversary following
				February 1, 2003.
(2)
Contents of disclosure.
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 subrule 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 a case, an insurer shall provide all
				of the information listed in this subrule 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 certificate holder'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 39.25(2)
"c"
if the
				premium rate or rate schedule is changed;
e. Information regarding each premium rate
				increase on this policy form or similar policy forms over the past ten years
				for this state or any other state.
(1) The
				following, at a minimum, shall be included:
1.
				The policy forms for which premium rates have been increased;
2. The calendar years when the form was
				available for purchase; and
3. The
				amoimt or percent 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 only apply 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) If an acquiring
				insurer files for a rate increase on a long-term care policy form acquired from
				nonaffiliated insurers or on a block of policy forms acquired from
				nonaffiliated insurers on or before the later of February I, 2003, 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. However,
				the non-affiliated selling company shall include the disclosure of that rate
				increase in accordance with paragraph
"e."
(5) If the acquiring insurer in subparagraph
				(4) above 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
				(4), the acquiring insurer shall make all disclosures required by
				paragraph
"e,"
including disclosure of the earlier rate
				increase referenced in subparagraph (4).