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 45-06-05.1-17 - Life insurance long-term care benefits
Universal Citation: ND Admin Code ยง 45-06-05.1-17
Current through Supplement No. 394, October, 2024
1. 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:
a. The interest credited internally to
determine cash value accumulations, including long-term care, if any, are
guaranteed not to be less than the minimum guaranteed interest rate for cash
value accumulations without long-term care set forth in the policy;
b. The portion of the policy that provides
life insurance benefits meets the nonforfeiture requirements of North Dakota
Century Code sections 26.1-33-18 through 26.1-33-28;
c. The policy meets the disclosure
requirements of subsections 4, 5, and 6 of North Dakota Century Code section
26.1-45-09;
d. Any policy
illustration that meets the applicable requirements of the national association
of insurance commissioners life insurance illustrations model regulation;
and
e. An actuarial memorandum is
filed with the insurance department that includes:
(1) A description of the basis on which the
long-term care rates were determined;
(2) A description of the basis for the
reserves;
(3) A summary of the type
of policy, benefits, renewability, general marketing method, and limits on ages
of issuance;
(4) A description and
a table of each actuarial assumption used. For expenses, an insurer must
include a percentage of premium dollars per policy and dollars per unit of
benefits, if any;
(5) A description
and a table of the anticipated policy reserves and additional reserves to be
held in each future year for active lives;
(6) The estimated average annual premium per
policy and the average issue age;
(7) 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 types of underwriting used, such as medical underwriting or
functional assessment underwriting. Concerning a group policy, the statement
shall indicate whether the enrollee or any dependent will be underwritten and
when underwriting occurs; and
(8) 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 active lives and those in long-term care claim
status.
General Authority: NDCC 28-32-02
Law Implemented: NDCC 26.1-45
Disclaimer: These regulations may not be the most recent version. North Dakota may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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