Current through Register Vol. 39, No. 6, September 16, 2024
(a) An
insurer that issues life insurance policies that accelerate benefits for
long-term care shall comply with
11 NCAC
12 .1010 if the policy being replaced is a
long-term care insurance policy. If the policy being replaced is a life
insurance policy, the insurer shall comply with
11 NCAC
12 .0611. If a life insurance policy that
accelerates benefits for long-term care is replaced by another life insurance
policy that accelerates benefits for long-term care, the replacing insurer
shall comply with
11 NCAC
12 .1010 AND
11 NCAC
12 .0611
(b)
11 NCAC
12 .1013 does not apply to life insurance
policies that accelerate benefits for long-term care. A life insurance policy
that funds long-term care benefits entirely by accelerating the death benefit
is considered to provide reasonable benefits in relation to premiums paid, if
the policy complies with all of the following provisions:
(1) The interest credited internally to
determine cash value accumulations, including long-term care, in any, are
guaranteed interest rate for cash value accumulations without long-term care
set forth in the policy.
(2) The
portion of the policy that provides life insurance benefits meets the
nonforfeiture requirements of
G.S.
58-58-30.
(3) The policy meets the disclosure
requirements of
G.S.
58-55-30.
(4) Any policy illustration that meets the
applicable requirements of
11 NCAC
04. 0501
(5) An actuarial memorandum is filed with the
Division that includes:
(A) A description of
the basis on which the long-term care rates were determined.
(B) A description of the basis for the
reserves.
(C) A summary of the type
of policy, benefits, renewability, general marketing method, and limits on ages
of issuance.
(D) A description and
a table of each actuarial assumption used. For expenses, an insurer must
include percent of premium dollars per policy and dollars per unit of benefits,
if any.
(E) A description and a
table of the anticipated policy reserves and additional reserves held in each
future year for active lives.
(F)
The estimated average annual premium per policy and the average issue
age.
(G) A statement as to whether
underwriting is performed at the time of application. The statement shall
indicate whether underwriting is used and, if used, the statement shall include
a description of the type or assessment underwriting. For a group policy, the
statement shall indicate whether the enrollee or any dependent will be
underwritten and when that underwriting occurs.
(H) A description of the effect of the
long-term care policy provision on the required premiums, nonforfeiture values,
and reserves on the underlying life insurance policy, both for the active lives
and those in long-term care claim status.
Authority
G.S.
58-2-40(1);
58-55-30(a);
58-58-1;
58-58-40;
Eff. April
1, 1999;
Pursuant to
G.S.
150B-21.3A, rule is necessary without
substantive public interest Eff. May 1, 2018.
