Virginia Administrative Code
Title 14 - INSURANCE
Agency 5 - STATE CORPORATION COMMISSION, BUREAU OF INSURANCE
Chapter 200 - RULES GOVERNING LONG-TERM CARE INSURENCE
Section 14VAC5-200-125 - Annual rate reports
Universal Citation: 4 VA Admin Code 5-200-125
Current through Register Vol. 41, No. 3, September 23, 2024
A. Every insurer shall report to the commission annually premium rates for all long-term care insurance policies. The commission shall establish the due date and post this report to the Bureau of Insurance's webpage. The rate report shall include:
1. For policies issued on or
after October 1, 2003, an actuarial certification prepared, dated, and signed
by a qualified actuary that provides at least the following information:
a. A statement of the sufficiency of the
current premium rate schedule including:
(1)
For policies currently marketed:
(a) The
premium rate schedule continues to be sufficient to cover anticipated costs
under moderately adverse experience, consistent with the margins as defined in
the original rate filing or any subsequent rate filing, and that the premium
rate schedule is reasonably expected to be sustainable over the life of the
form with no future premium increases anticipated; or
(b) If the statement in subdivision 1 a (1)
(a) of this subsection cannot be made, a statement that margins for moderately
adverse experience, consistent with the margins as defined in the original rate
filing or any subsequent rate filing, may no longer be sufficient. In this
situation, the insurer shall submit to the commission within 60 days of the
date of the actuarial certification a plan of action, including a timeframe,
for the reestablishment of adequate margins for moderately adverse experience
so that the ultimate premium rate schedule would be reasonably expected to be
sustainable over the future life of the form with no future premium increases
anticipated. Failure to submit a plan of action to the commission within 60
days or to comply with the timeframe stated in the plan of action constitutes
grounds for withdrawal or modification of approval of the form for future
sales.
(2) For policies
that are no longer marketed:
(a) A statement
that the premium rate schedule continues to be sufficient to cover anticipated
costs under best estimate assumptions; or
(b) A statement that the premium rate
schedule may no longer be sufficient. The insurer shall submit to the
commission within 60 days of the date of the actuarial certification a plan of
action, including a timeframe for the reestablishment of adequate margins for
moderately adverse experience.
b. A description of the review performed that
led to the statement.
c. At least
once every three years, an actuarial memorandum dated and signed by a qualified
actuary that supports the actuarial certification and provides at least the
following information:
(1) A detailed
explanation of the data sources and review performed by the actuary prior to
making the statement in subdivision 1 a (1) of this subsection;
(2) A complete description of experience
assumptions and their relationship to the initial pricing
assumptions;
(3) A description of
the credibility of the experience data; and
(4) An explanation of the analysis and
testing performed in determining the current presence of margins.
2. For policies issued
prior to October 1, 2003, the report shall include a statement signed by a
qualified actuary that a complete analysis and review of the premium rates was
conducted, a description of the analysis, the date on which the analysis was
completed, and any rate action found to be necessary as a result of the
analysis.
B. Reports required in this section shall be based on the previous calendar year data and filed with the commission no later than the due date. The commission may request any additional information that will support the information required in this section.
Statutory Authority: §§ 12.1-13 and 38.2-223 of the Code of Virginia.
Disclaimer: These regulations may not be the most recent version. Virginia 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.
This site is protected by reCAPTCHA and the Google
Privacy Policy and
Terms of Service apply.
