§431:10H-226.5 Initial filing requirements. (a) This section applies to any long-term care policy issued in this State after December 31, 2007.
(b) An insurer shall provide the information listed in this subsection to the commissioner for approval sixty days prior to making a long-term care insurance form available for sale as follows:
(1) A copy of the disclosure documents required in section 431:10H-217.5; and
(2) An actuarial certification consisting of at least the following:
(A) 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;
(B) A statement that the policy design and coverage provided have been reviewed and taken into consideration;
(C) A statement that the underwriting and claims adjudication processes have been reviewed and taken into consideration;
(D) A complete description of the basis for contract reserves that are anticipated to be held under the form and that includes:
(i) Sufficient detail or sample calculations to have a complete depiction of the reserve amounts to be held;
(ii) A statement that the assumptions used for reserves contain reasonable margins for adverse experience;
(iii) A statement that the net valuation premium for renewal years does not increase, except for attained-age rating where permitted; and
(iv) 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 that statement cannot be made, a complete description of the situations where this does not occur; provided that an aggregate distribution of anticipated issues may be used as long as the underlying gross premiums maintain a reasonably consistent relationship; provided further that if the gross premiums for certain age groups are inconsistent with this requirement, the commissioner may request a demonstration under subsection (c) based on a standard age distribution; and
(E) With respect to premium rate schedules:
(i) A statement that the premium rate schedule is not less than the premium rate schedule for existing similar policy forms also available from the insurer, except for reasonable differences attributable to benefits; or
(ii) A comparison of the premium schedules for similar policy forms that are currently available from the insurer, with an explanation of the differences.
(c) The commissioner may request an actuarial demonstration that benefits are reasonable in relation to premiums. The actuarial demonstration shall include either premium and claim experience on similar policy forms, adjusted for any premium or benefit differences, or relevant and credible data from other studies, or both. If the commissioner asks for additional information under this subsection, the period in subsection (b) does not include the period during which the insurer is preparing the requested information. [L 2007, c 233, pt of §4; am L 2009, c 49, §2; am L 2017, c 151, §6]