Ill. Admin. Code tit. 50, § 2012.97 - Annual Rate Certification Requirements
a) This Section applies to any long-term care
policy issued in this State on or after July 1, 2018.
b) The annual rate certifications required by
subsection (c) and the memorandum required by subsection (d), shall be filed in
accordance with the filing requirements in Section
2012.95.
c) An annual actuarial certification
prepared, dated and signed by a member of the American Academy of Actuaries who
provides the information shall be included and shall provide at least the
following information:
1) A statement of the
sufficiency of the current premium rate schedule including:
A) For the rate schedules currently marketed,
i) The premium rate schedule continues to be
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; or
ii) If the above statement cannot be made, a
statement that margins for moderately adverse experience may no longer be
sufficient. In this situation, the insurer shall provide to the Director,
within 60 days of the date the actuarial certification is submitted to the
Director, a plan of action, including a time frame, for the re-establishment 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 Director within 60 days or to comply with the
time frame stated in the plan of action constitutes grounds for the Director to
withdraw or modify its approval of the form for future sales pursuant to
Section 143 of the Illinois Insurance Code.
B) For the rate schedules that are no longer
marketed,
i) That the premium rate schedule
continues to be sufficient to cover anticipated costs under best estimate
assumptions; or
ii) That the
premium rate schedule may no longer be sufficient. In this situation, the
insurer shall provide to the Director, within 60 days of the date the actuarial
certification is submitted to the Director, a plan of action, including a time
frame, for the re-establishment of adequate margins for moderately adverse
experience.
2)
A description of the review performed that led to the
statement.
d) An
actuarial memorandum dated and signed by a member of the American Academy of
Actuaries who prepares the information shall be prepared to support the
actuarial certification and provide 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 subsection
(c)(1).
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.
4) An explanation of the analysis and testing
performed in determining the current presence of margins.
Notes
State regulations are updated quarterly; we currently have two versions available. Below is a comparison between our most recent version and the prior quarterly release. More comparison features will be added as we have more versions to compare.
No prior version found.