Current through Register Vol. 43, No. 39, September 26, 2024
(a) Except as
provided in subsection (b) of this regulation, this regulation shall apply to
any long-term care policy or certificate issued in this state six or more
months after the adoption of this regulation.
(b) For certificates issued on and after the
effective date of this regulation under a group long-term care insurance policy
as defined in
K.S.A.
40-2227(e) and amendments
thereto, which policy was in force at the time this regulation became
effective, the provisions of this regulation shall apply on the policy
anniversary following the date that is 12 months after the adoption of this
regulation.
(c) Other than for
policies for which no applicable premium rate or rate schedule increases can be
made or for which the method of application does not allow for delivery at the
time of application or enrollment, each insurer shall provide all the following
information to the applicant at the time of application or enrollment.
(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, including the
next anniversary date, next billing date; and
(B) the right to a revised premium rate or
rate schedule as specified in paragraph (c)(2) of this regulation 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 10 years for
this state or any other state that, at a minimum, identifies the following:
(A) The policy forms for which premium rates
have been increased;
(B) the
calendar years when the form was available for purchase; and
(C) the amount or percent of each increase.
The percentage may be expressed as a percentage of the premium rate before the
increase, and may also be expressed as minimum and maximum percentages if the
rate increase is variable by rating characteristics.
(d)
(1) The insurer may, in a fair manner,
provide additional explanatory information related to rate increases.
(2) Each insurer shall have the
right to exclude from the disclosure premium rate increases that apply only to
blocks of business acquired from other nonaffiliated insurers or the long-term
care policies acquired from other nonaffiliated insurers if those increases
occurred before the acquisition.
(3) 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 regulation, or the end of a 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 paragraph (c)(5) of this regulation.
(4) If the acquiring insurer described in
paragraph (d)(3) of this regulation 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 paragraph (d)(3) of this regulation, the acquiring insurer shall
make all disclosures required by paragraph (c)(5) of this regulation, including
disclosure of the earlier rate increase referenced in paragraph (d)(3) of this
regulation.
(e) Each
applicant shall sign an acknowledgement at the time of application, unless the
method of application does not allow for signature at that time, that the
insurer made the disclosures required under paragraphs (c)(1) and (5) of this
regulation. If due to the method of application the applicant cannot sign an
acknowledgement at the time of application, the applicant shall sign no later
than at the time of delivery of the policy or certificate.
(f) Each insurer shall provide notice of an
upcoming premium rate schedule increase to all policyholders or certificate
holders, if applicable, at least 45 days before the implementation of the
premium rate increase by the insurer. The notice shall include the information
required by subsection (c) of this regulation when the rate increase is
implemented.
(g) Each insurer
shall use the forms found in appendices B and F of the national association of
insurance commissioners' "long-term care insurance model regulation," June 13,
2000 edition, which are hereby adopted by reference, to comply with the
requirements of subsections (a), (b), and (c) of this regulation.
