Virginia Administrative Code › Title 14 - INSURANCE › Agency 5 - STATE CORPORATION COMMISSION, BUREAU OF INSURANCE › Chapter 200 - RULES GOVERNING LONG-TERM CARE INSURENCE › Section 14VAC5-200-75 - Required Disclosure of Rating Practices to Consumer

Current through Register Vol. 40, No. 24, July 15, 2024
A. 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 subsection 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 section to the applicant no later than at
				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 certificateholder'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:
a. A description of when
				premium rate or rate schedule adjustments will be effective (e.g., next
				anniversary date, next billing date, etc.); and
b. The right to a revised premium rate or
				rate schedule as provided in subdivision 2 of this subsection if the premium
				rate or rate schedule is changed;
5.
a.
				Information regarding each premium rate increase on this policy form or similar
				policy forms over the past 10 years for this Commonwealth or any other state
				that, at a minimum, identifies:
(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
				amount or percentage 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.
b. The
				insurer may, in a fair manner, provide additional explanatory information
				related to the rate increases.
c.
				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.
d. If an acquiring
				insurer files for a rate increase on a long-term care policy form or a block of
				policy forms acquired from nonaffiliated insurers 24 months or more following
				the acquisition of the policy form or the block of 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 subdivision 5 a of this subsection.
e. If the acquiring insurer in subdivision 5
				d of this subsection 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
				subdivision 5 d of this subsection, the acquiring insurer shall make all
				disclosures required by subdivision 5 of this subsection, including disclosure
				of the earlier rate increase referenced in subdivision 5 d of this
				subsection.