NAC687B.1065. Insurer to file for approval any increase in a premium rate schedule for certain contracts.

     1. The provisions of this section do not apply to:

     (a) A long-term care insurance contract or certificate issued before October 1, 2008;

     (b) A policy of life insurance or a rider or endorsement to a policy of life insurance that contains accelerated benefits for long-term care;

     (c) An annuity contract or a rider or endorsement to an annuity contract that contains benefits for long-term care; or

     (d) A long-term care insurance contract or certificate which is subject to the provisions of NAC 687B.107.

     2. An insurer shall file with the Commissioner for approval any increase in a premium rate schedule. The filing must include, without limitation:

     (a) The information required by NAC 687B.0585;

     (b) An actuarial memorandum prepared in accordance with all applicable standards of practice which must include:

          (1) A description of the benefits provided under the affected long-term care insurance contract;

          (2) An actuarial demonstration that the benefits are reasonable in relation to the premiums;

          (3) An explanation of the reasons for the rate increase;

          (4) The history of any previously approved rate increase, which must include the effective date of each previous rate increase and the percentage increase of each previous rate increase;

          (5) A description of any actuarial assumptions and any related tables, including any changes in actuarial assumptions since the last rate increase and since the initial filing of contract rates;

          (6) An analysis of the expected and the actual experience and projections for claims, premiums, loss ratios, lapses and mortality;

          (7) The annual loss ratios expected at the time of the most recent premium filing and the initial rate filing, which must include a comparison of the expected and the actual loss ratios;

          (8) The number of its insureds in this State and nationwide;

          (9) If a reduction in benefits is offered to offset the rate increase, a complete actuarial justification that the premium changes are actuarially equivalent to the benefit reduction; and

          (10) The basis for the interest rate used; and

     (c) The percentage amount of the rate increase stated in the filing description of the uniform transmittal document.

     3. If the insurer has fewer than 2,000 insureds nationwide, the information required pursuant to subparagraphs (6) and (7) of paragraph (b) of subsection 2 must be provided:

     (a) When combined with all similar long-term care insurance contract forms; and

     (b) For a specific long-term care insurance contract form.

     (Added to NAC by Comm’r of Insurance by R121-07, 9-18-2008, eff. 10-1-2008; A by R028-10, 12-16-2010, eff. 10-1-2011)