(a) Lifetime projections of earned premiums and incurred claims based on the filed premium rate schedule increase; and the method and assumptions used in determining the projected values, including reflection of any assumptions that deviate from those used for pricing other forms currently available for sale; (i) Annual values for the five (5) years preceding and the three (3) years following the valuation date shall be provided separately; (ii) The projections shall include the development of the lifetime loss ratio, unless the rate increase is an exceptional increase; (iii) The projections demonstrate compliance with Subsection C; and (iv) For exceptional increases, (I) The projected experience should be limited to the increases in claims expenses attributable to the approved reasons for the exceptional increase; and (II) In the event the commissioner determines as provided in Section 4A(4) that offsets may exist, the insurer shall use appropriate net projected experience; (b) Disclosure of how reserves have been incorporated in this rate increase whenever the rate increase will trigger contingent benefit upon lapse; (c) Disclosure of the analysis performed to determine why a rate adjustment is necessary, which pricing assumptions were not realized and why, and what other actions taken by the company have been relied on by the actuary; (d) A statement that policy design, underwriting and claims adjudication practices have been taken into consideration; (e) In the event that it is necessary to maintain consistent premium rates for new certificates and certificates receiving a rate increase, the insurer will need to file composite rates reflecting projections of new certificates; and (f) A demonstration that actual and projected costs exceed costs anticipated at the time of initial pricing under moderately adverse experience and that the composite margin specified in Section 10B(2)(d) is projected to be exhausted. (4) A statement that renewal premium rate schedules are not greater than new business premium rate schedules except for differences attributable to benefits, unless sufficient justification is provided to the commissioner; and
(a) Lifetime projections of earned premiums and incurred claims based on the filed premium rate schedule increase; and the method and assumptions used in determining the projected values, including reflection of any assumptions that deviate from those used for pricing other forms currently available for sale; (i) Annual values for the five (5) years preceding and the three (3) years following the valuation date shall be provided separately; (ii) The projections shall include the development of the lifetime loss ratio, unless the rate increase is an exceptional increase; (iii) The projections demonstrate compliance with Subsection C; and (iv) For exceptional increases, (I) The projected experience should be limited to the increases in claims expenses attributable to the approved reasons for the exceptional increase; and (II) In the event the commissioner determines as provided in Section 4A(4) that offsets may exist, the insurer shall use appropriate net projected experience; (b) Disclosure of how reserves have been incorporated in this rate increase whenever the rate increase will trigger contingent benefit upon lapse; (c) Disclosure of the analysis performed to determine why a rate adjustment is necessary, which pricing assumptions were not realized and why, and what other actions taken by the company have been relied on by the actuary; (d) A statement that policy design, underwriting and claims adjudication practices have been taken into consideration; (e) In the event that it is necessary to maintain consistent premium rates for new certificates and certificates receiving a rate increase, the insurer will need to file composite rates reflecting projections of new certificates; and (f) A demonstration that actual and projected costs exceed costs anticipated at the time of initial pricing under moderately adverse experience and that the composite margin specified in Section 10B(2)(d) is projected to be exhausted. (4) A statement that renewal premium rate schedules are not greater than new business premium rate schedules except for differences attributable to benefits, unless sufficient justification is provided to the commissioner; and
committees_b_senior_issues_exposure_ltc_model_act_641.docx