North Dakota Administrative Code › Title 45 - Insurance, Commissioner of › Article 45-06 - Accident and Health Insurance › Chapter 45-06-05.1 - LONG-TERM CARE INSURANCE MODEL REGULATION › Section 45-06-05.1-08.1 - Initial filing requirements for policies issued after March 1, 2020

Current through Supplement No. 393, July, 2024
1. This section applies to any long-term care
				policy issued in this state on or after March 1, 2020.
2. An insurer shall provide the information
				listed in this subsection to the commissioner sixty days prior to making a
				long-term care insurance form available for sale.
a. A copy of the disclosure documents
				required in section 45-06-05.1-07.
b. An actuarial certification consisting of
				at least the following:
(1) 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.
(2)
				A statement that the policy design and coverage provided have been reviewed and
				taken into consideration.
(3) A
				statement that the underwriting and claims adjudication processes have been
				reviewed and taken into consideration.
(4) A statement that the premiums contain at
				least the minimum margin for moderately adverse experience defined in
				subparagraphs a and b:
(a) A composite margin
				may not be less than ten percent of lifetime claims.
(b) 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.
(5)
(a) 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
(b) A comparison of the premium schedules for
				similar policy forms currently available from the insurer with an explanation
				of the differences.
(6)
				A statement that reserve requirements have been reviewed and considered.
				Support for this statement must include:
(a)
				Sufficient detail or sample calculations provided so as to have a complete
				depiction of the reserve amounts to be held; and
(b) 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.
c. An actuarial memorandum
				prepared, dated, and signed by the member of the academy of actuaries must be
				included and must address and support each specific item required as part of
				the actuarial certification and provide at least the following information:
(1) An explanation of the review performed by
				the actuary prior to making the statements in paragraphs 2 and 3 of subdivision
				b.
(2) A complete description of
				pricing assumptions.
(3) Sources
				and levels of margins incorporated into the gross premiums that are the basis
				for the statement in paragraph 1 of subdivision b 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 must 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.
(4) A demonstration that
				the gross premiums include the minimum composite margin specified in paragraph
				4 of subdivision b.