Current through Register Vol. 50, No. 3, March 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 and 5. 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.
