Current through Register Vol. 50, No. 9, September 20, 2024
A. This Section shall apply as follows.
1. Except as provided in
§1915. A 2,
§1915 applies to any long-term care
policy or certificate issued in this state on or after August 19,
2005.
2. For certificates issued on
or after the effective date of this amended regulation under a group
long-term care insurance policy as defined in
R.S.
22:1184(4), which policy was
in force at the time this amended regulation became effective, the provisions
of §1915 shall apply
on the policy anniversary following February 19, 2006.
B. 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
§1915. B 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
§1915 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
§1915. B.3 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 state or any other state that, at
a minimum, identifies:
i. the policy forms
for which premium rates have been increased;
ii. the calendar years when the form was
available for purchase; and
iii.
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 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 acquired from
nonaffiliated insurers or a block of policy forms acquired from nonaffiliated
insurers on or before the later of the effective date of
§1915 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
§1915. B.5.a of this
Paragraph;
e. if the acquiring
insurer in
§1915. B.5.d above
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
§1915. B.5 d, the
acquiring insurer shall make all disclosures required by
§1915. B 5, including
disclosure of the earlier rate increase referenced in
§1915. B.5.d
C. An
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 disclosure required under
§1915. B.1 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.
D. An insurer shall use the forms in
Appendices B and F to comply with the requirements of
§1915. B and
§1915. C of this
Section.
E. An insurer shall
provide notice of an upcoming premium rate schedule increase to all
policyholders or certificateholders, if applicable, at least 45 days prior to
the implementation of the premium rate schedule increase by the insurer. The
notice shall include the information required by
§1915. B when the rate
increase is implemented.
AUTHORITY NOTE:
Promulgated in accordance with
R.S.
22:1186(A),
22:1186(E),
22:1188(C),
22:1189,
and
22:1190.
