Louisiana Administrative Code › Title 37 - INSURANCE › Part XIII - Regulations › Chapter 19 - Regulation 46-Long-Term Care Insurance › Section XIII-1917 - Initial Filing Requirements

Current through Register Vol. 50, No. 6, June 20, 2024
A. This
				Section applies to any long-term care policy issued in this state on or after
				August 19, 2005, except that §1917. B.2.d and §1917. B.3 apply to any long-term
				care policy issued in this state on or after January 1, 2018.
B. An insurer shall provide the information
				listed in §1917. B to the commissioner 45 days prior to making a long-term care
				insurance form available for sale:
1. a copy
				of the disclosure documents required in §1915; and
2. an actuarial certification consisting of
				at least the following:
a. a statement that
				the initial premium rate schedule is sufficient to cover anticipated costs
				under moderately adverse experience and that the premium rate schedule is
				reasonably expected to be sustainable over the life of the form with no future
				premium increases anticipated;
b. a
				statement that the policy design and coverage provided have been reviewed and
				taken into consideration;
c. a
				statement that the underwriting and claims adjudication processes have been
				reviewed and taken into consideration;
d. a statement that the premiums contain at
				least the minimum margin for moderately adverse experience defined in §1917.
				B.2.d.i or the specification of and justification for a lower margin as
				required by §1917. B.2.d ii:
i. a composite
				margin shall not be less than 10 percent of lifetime claims;
ii. a composite margin that is less than 10
				percent may be justified in uncommon circumstances. The proposed amount, full
				justification of the proposed amount, and methods to monitor developing
				experience that would be the basis for withdrawal of approval for such lower
				margins must be submitted;
iii. a
				composite margin lower than otherwise considered appropriate for the
				stand-alone long-term care policy may be justified for long-term care benefits
				provided through a life policy or an annuity contract. Such lower composite
				margin, if utilized, shall be justified by appropriate actuarial demonstration
				addressing margins and volatility when considering the entirety of the
				product;
iv. a greater margin may
				be appropriate in circumstances where the company has less credible experience
				to support its assumptions used to determine the premium rates;
e.
i. a statement that the premium rate schedule
				is not less than the premium rate schedule for existing similar policy forms
				also available from the insurer except for reasonable differences attributable
				to benefits; or
ii. a comparison of
				the premium schedules for similar policy forms that are currently available
				from the insurer with an explanation of the differences.
f. a statement that reserve requirements have
				been reviewed and considered. Support for this statement shall include:
i. sufficient detail or sample calculations
				provided so as to have a complete depiction of the reserve amounts to be held;
				and
ii. a statement that the
				difference between the gross premium and the net valuation premium for renewal
				years is sufficient to cover expected renewal expenses; or if such a statement
				cannot be made, a complete description of the situations where this does not
				occur. An aggregate distribution of anticipated issues may be used as long as
				the underlying gross premiums maintain a reasonably consistent relationship.
3. An
				actuarial memorandum prepared, dated, and signed by a member of the Academy of
				Actuaries shall be included and shall address and support each specific item
				required as part of the actuarial certification and provide at least the
				following information:
a. an explanation of
				the review performed by the actuary prior to marking the statements in §1917.
				B.2.b and §1917. B.2 c;
b. a
				complete description of pricing assumptions;
c. sources and levels of margins incorporated
				into the gross premiums that are the basis for the statement in §1917. B.2.a of
				the actuarial certification and an explanation of the analysis and testing
				performed in determining the sufficiency of the margins. Deviations in margins
				between ages, sexes, plans, or states shall be clearly described. Deviations in
				margins required to be described are other than those produced utilizing
				generally accepted actuarial methods for smoothing and interpolating gross
				premium scales; and
d. a
				demonstration that the gross premiums include the minimum composite margin
				specified in §1917. B.2.d