NAC687B.213. Availability and discontinuance of policy forms and certificate forms.

     1. Except as otherwise provided in subsection 2, an issuer shall make available for sale on or after July 30, 1992, any policy form or certificate form that has been previously approved by the Commissioner. A form shall be deemed available for purchase if the issuer has actively offered it for sale in the previous 12 months.

     2. An issuer may discontinue a policy form or certificate form if he or she notifies the Commissioner in writing at least 30 days before he or she intends to discontinue the form. The issuer may not offer the form for sale in this State after the notice is received by the Commissioner.

     3. If an issuer discontinues a policy form or certificate form, he or she may not file for approval a new form of the same type as the discontinued form for the same standardized benefit plan to supplement Medicare for 5 years after notice is given to the Commissioner pursuant to subsection 2, unless the Commissioner reduces the period of discontinuance.

     4. For the purposes of this section:

     (a) The sale or transfer of an issuer’s business for supplementing Medicare to another issuer shall be deemed a discontinuance of a policy form or certificate form.

     (b) A change in the rating structure for a policy to supplement Medicare or a certificate shall be deemed a discontinuance of the form for that policy or certificate unless the issuer:

          (1) Files with the Commissioner, in a form and manner prescribed by the Commissioner, an actuarial memorandum describing the manner in which the revised rating structure and resultant rates differ from the existing structure and existing rates; and

          (2) Does not subsequently put into effect a change of rates or rating factors that cause the percentage differential between the discontinued rates and the new rates as described in the memorandum to change. The Commissioner may approve a change to a percentage differential which is in the public interest.

     (Added to NAC by Comm’r of Insurance, 7-16-92, eff. 7-30-92)