North Dakota Administrative Code
Title 45 - Insurance, Commissioner of
Article 45-06 - Accident and Health Insurance
Chapter 45-06-05.1 - LONG-TERM CARE INSURANCE MODEL REGULATION
Section 45-06-05.1-08.1 - Initial filing requirements for policies issued after March 1, 2020
Universal Citation: ND Admin Code ยง 45-06-05.1-08.1
Current through Supplement No. 394, October, 2024
1. This section applies to any long-term care policy issued in this state on or after March 1, 2020.
2. An insurer shall provide the information listed in this subsection to the commissioner sixty days prior to making a long-term care insurance form available for sale.
a. A copy of the disclosure documents
required in section 45-06-05.1-07.
b. An actuarial certification consisting of
at least the following:
(1) A statement that
the initial premium rate schedule is sufficient to cover anticipated costs
under moderately adverse experience and that the premium rate schedule is
reasonably expected to be sustainable over the life of the form with no future
premium increases anticipated.
(2)
A statement that the policy design and coverage provided have been reviewed and
taken into consideration.
(3) A
statement that the underwriting and claims adjudication processes have been
reviewed and taken into consideration.
(4) A statement that the premiums contain at
least the minimum margin for moderately adverse experience defined in
subparagraphs a and b:
(a) A composite margin
may not be less than ten percent of lifetime claims.
(b) A greater margin may be appropriate in
circumstances where the company has less credible experience to support its
assumptions used to determine the premium rates.
(5)
(a) A
statement that the premium rate schedule is not less than the premium rate
schedule for existing similar policy forms also available from the insurer
except for reasonable differences attributable to benefits; or
(b) A comparison of the premium schedules for
similar policy forms currently available from the insurer with an explanation
of the differences.
(6)
A statement that reserve requirements have been reviewed and considered.
Support for this statement must include:
(a)
Sufficient detail or sample calculations provided so as to have a complete
depiction of the reserve amounts to be held; and
(b) A statement that the difference between
the gross premium and the net valuation premium for renewal years is sufficient
to cover expected renewal expenses; or if such a statement cannot be made, a
complete description of the situations where this does not occur. An aggregate
distribution of anticipated issues may be used as long as the underlying gross
premiums maintain a reasonably consistent relationship.
c. An actuarial memorandum
prepared, dated, and signed by the member of the academy of actuaries must be
included and must address and support each specific item required as part of
the actuarial certification and provide at least the following information:
(1) An explanation of the review performed by
the actuary prior to making the statements in paragraphs 2 and 3 of subdivision
b.
(2) A complete description of
pricing assumptions.
(3) Sources
and levels of margins incorporated into the gross premiums that are the basis
for the statement in paragraph 1 of subdivision b of the actuarial
certification and an explanation of the analysis and testing performed in
determining the sufficiency of the margins. Deviations in margins between ages,
sexes, plans, or states must be clearly described. Deviations in margins
required to be described are other than those produced utilizing generally
accepted actuarial methods for smoothing and interpolating gross premium
scales.
(4) A demonstration that
the gross premiums include the minimum composite margin specified in paragraph
4 of subdivision b.
General Authority: NDCC 28-32-02
Law Implemented: NDCC 26.1-45
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