Utah Admin. Code R590-148-21 - Initial Filing Requirements for Long-Term Care Policies Issued After January 1, 2003

(1) An insurer shall file the following information before making a policy form available for sale:

(a) a copy of the disclosure documents required under Section R590-148-19; and

(b) an actuarial certification that includes:

(i) 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;

(ii) a statement that the policy design and coverage provided have been reviewed and considered;

(iii) a statement that the underwriting and claim adjudication processes have been reviewed and considered;

(iv) a complete description of the basis for contract reserves anticipated to be held under the form, including:

(A) sufficient detail or sample calculations to ensure a complete depiction of the reserve amounts to be held;

(B) a statement that the assumptions used for reserves contain reasonable margins for adverse experience;

(C) a statement that the net valuation premium for renewal years does not increase, except for attained age rating when permitted; and

(D) 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 when this does not occur;

(I) an aggregate distribution of anticipated issues may be used if the underlying gross premiums maintain a reasonably consistent relationship; and

(II) if the gross premiums for certain age groups appear to be inconsistent with this requirement, the commissioner may request a demonstration under Subsection (2) based on a standard age distribution; and

(v)

(A) a statement that the premium rate schedule is not less than the premium rate schedule for existing similar policy forms available from the insurer, except for reasonable differences attributable to benefits; or

(B) a comparison of the premium schedules for similar policy forms that are currently available from the insurer, with an explanation of the differences.

(2)

(a) The commissioner may request an actuarial demonstration that benefits are reasonable in relation to premiums.

(b) The actuarial demonstration shall include:

(i) premium and claim experience on similar policy forms, adjusted for any premium or benefit differences;

(ii) relevant and credible data from other studies; or

(iii) both.

(3) The premium charged to an insured may not increase due to:

(a) the increasing age of the insured at an age beyond 65; or

(b) the duration the insured has been covered under the policy.

Notes

Utah Admin. Code R590-148-21

Adopted by Utah State Bulletin Number 2024-21, effective 10/22/2024