Administrative Rules of Montana › Department 6 - STATE AUDITOR › Chapter 6.6 - INSURANCE DEPARTMENT › Subchapter 6.6.31 - Long-Term Care › Rule 6.6.3124 - PREMIUM RATE SCHEDULE INCREASES

Current through Register Vol. 13, July 5, 2024
(1) Except
				as provided in (2), this rule applies to any long-term care policy issued in
				this state on or after January 1, 2009.
(2) For policies issued on or after the
				effective date of this amended rule under a group long-term care insurance
				policy as defined in
				33-22-1107(5),
				MCA, which policy was in force at the time this amended rule became effective,
				the provisions of this rule shall apply on the policy anniversary following
				January 1, 2009.
(3) An issuer
				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 policyholders and shall include:
(a)
				information required by ARM
				6.6.3121;
(b) certification by a qualified actuary
				that:
(i) 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; and
(ii)
				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:
(i) 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;
(A)
				annual values for the five years preceding and the three years following the
				valuation date shall be provided separately;
(B) the projections shall include the
				development of the lifetime loss ratio, unless the rate increase is an
				exceptional increase;
(C) the
				projections shall demonstrate compliance with (4); and
(D) for exceptional increases the projected
				experience should be limited to the increases in claims expenses attributable
				to the approved reasons for the exceptional increase;
(I) in the event the commissioner determines,
				as provided in ARM
				6.6.3102(4)(d) 
				that offsets may exist, the issuer shall use appropriate net projected
				experience;
(ii) disclosure of how reserves have been
				incorporated in this rate increase whenever the rate increase will trigger
				contingent benefit upon lapse;
(iii) 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;
(iv) a
				statement that policy design, underwriting, and claims adjudication practices
				have been taken into consideration;
(v) in the event that it is necessary to
				maintain consistent premium rates for new business premium rate schedules,
				except for differences attributable to benefits, unless sufficient
				justification is provided to the commissioner; and
(vi) sufficient information for review of the
				premium rate schedule increase by the commissioner.