Indiana Administrative Code › Title 760 - DEPARTMENT OF INSURANCE › Article 2 - LONG TERM CARE INSURANCE COVERAGE › Rule 4 - Required Disclosure Provisions › Section 4-2 - Required disclosure of rating practices to consumers

Current through July 10, 2024
Authority: IC 27-8-12-7
Affected: IC 27-8-12-10.6
Sec. 2.
(a) Except
				as provided in subsection (b), this section applies to any long term care
				policy or certificate issued in this state on or after January 1,
				2005.
(b) For certificates issued
				on or after January 2, 2005, under a group long term care insurance policy that
				was in force on July 1, 2005, this section shall apply on the policy
				anniversary following July 1, 2006.
(c) Other than policies for which no
				applicable premium rate or rate schedule increases can be made, insurers shall
				provide the following information to the applicant at the time of application
				or enrollment unless the method of application does not allow for delivery at
				that time, in which case, an insurer shall provide the following information to
				the applicant no later than the time of delivery of the policy or certificate:
(1) A statement that the policy may be
				subject to rate increases in the future.
(2) 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.
(3) The premium rate or rate schedules
				applicable to the applicant that will be in effect until a request is made for
				an increase.
(4) A general
				explanation for applying premium rate or rate schedule adjustments that shall
				include the following:
(A) A description of
				when premium rate or rate schedule adjustments will be effective.
(B) The right to a revised premium rate or
				rate schedule if the premium rate or rate schedule is changed.
(5) Information regarding each
				premium rate increase on this policy form or similar policy forms over the past
				ten (10) years for this state or any other state that, at a minimum, identifies
				the policy forms for which premium rates have been increased, the calendar
				years when the form was available for purchase, and the amount 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 a minimum and maximum
				percentage if the rate increase is variable by rating characteristics and as
				follows:
(A) The insurer may, in a fair
				manner, provide additional explanatory information related to the rate
				increases.
(B) 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.
(C) 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 section or the end of a twenty-four
				(24) month period following the acquisition of the block or policies, the
				acquiring insurer may exclude that rate increase from the disclosure. However,
				the nonaffiliated selling company shall include the disclosure of that rate
				increase in accordance with this section.
(D) If the acquiring insurer files for a
				subsequent rate increase, even within the twenty-four (24) month period, on the
				same policy form acquired from nonaffiliated insurers or block of policy forms
				acquired from nonaffiliated insurers, the acquiring insurer shall make all
				disclosures required by this section including disclosure of the earlier rate
				increases.