(1) Every
insurer shall maintain records for each agent of that agent's amount of
replacement sales as a percent of the agent's total annual sales and the amount
of lapses of limited long-term care insurance policies sold by the agent as a
percent of the agent's total annual sales.
(2) Every insurer shall report annually by
June 30 the 10% of its agents with the greatest percentages of lapses and
replacements as measured by Subsection R590-285-14(1).
(3) Reported replacement and lapse rates do
not alone constitute a violation of insurance laws or necessarily imply
wrongdoing. The reports are for the purpose of reviewing more closely agent
activities regarding the sale of limited long-term care insurance.
(4) Every insurer shall report annually by
June 30 the number of lapsed policies as a percent of its total annual sales
and as a percent of its total number of policies in force as of the end of the
preceding calendar year. Refer to Appendix E.
(5) Every insurer shall report annually by
June 30 the number of replacement policies sold as a percent of its total
annual sales and as a percent of its total number of policies in force as of
the preceding calendar year. Refer to Appendix E.
(6) For purposes of this section:
(a) "Policy" means only limited long-term
care insurance.
(b) "Report" means
on a statewide basis.
(7) Reports required under this section shall
be filed with the commissioner.
(8)
Annual rate certification requirements.
(a)
This subsection applies to any limited long-term care policy issued in this
state on or after July 1, 2021.
(b)
The following annual submission requirements apply subsequent to initial rate
filings for individual limited long-term care insurance policies made under
this section.
(c) An actuarial
certification prepared, dated and signed by a qualified actuary who provides
the information shall be included and shall provide at least the following
information:
(i) a statement of the
sufficiency of the current premium rate schedule;
(ii) for the rate schedules that are no
longer marketed;
(A) that the premium rate
schedule continues to be sufficient to cover anticipated costs under best
estimate assumptions; or
(B) that
the premium rate schedule may no longer be sufficient. In this situation, the
insurer shall provide to the commissioner, within 60 days of the date the
actuarial certification is submitted to the commissioner, a plan of action,
including a time frame, for the re-establishment of adequate margins for
moderately adverse experience; and
(iii) a description of the review performed
that led to the statement.
(d) An actuarial memorandum dated and signed
by a qualified actuary who prepares the information shall be prepared to
support the actuarial certification and provide at least the following
information:
(i) a detailed explanation of the
data sources and review performed by the actuary prior to making the
statement;
(ii) a complete
description of experience assumptions and their relationship to the initial
pricing assumptions;
(iii) a
description of the credibility of the experience data; and
(iv) an explanation of the analysis and
testing performed in determining the current presence of margins.
(e) The actuarial certification
required pursuant to Subsection R590-285-14(8)(c) must be based on calendar
year data and submitted annually no later than May 1 of each year, starting in
the second year following the year in which the initial rate schedules are
first used. The actuarial memorandum required pursuant to R590-285-14(8)(d)
must be submitted at least once every three years with the
certification.
