3 Alaska Admin. Code § 28.564

Current through November 28, 2024
Section 3 AAC 28.564 - Annual rate certification requirements
(a) This section applies to a long-term care policy issued in this state on or after January 1, 2023. The following annual submission requirements apply after the initial rate filings for individual long-term care insurance policies.
(b) An 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) a statement that 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 statement in (i) of this subparagraph cannot be made, a statement that margins tor moderately adverse experience may no longer be sufficient; in this situation, the insurer shall provide to the director, not later than 60 days' after 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 not later than 60 days after the actuarial certification is submitted to the director, or to comply with the time frame stated in the plan of action constitutes grounds for the director to withdraw or modify the director's approval of the form for future sales under AS 21.42.120 and 21.42.130;
(B) for the rate schedules that are no longer marketed a statement;
(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, not later than 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; and
(2) a description of the review performed that led to the statement.
(c) 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 before making the statement in (b) of this section;
(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; and
(4) an explanation of the analysis and testing performed in determining the current presence of margins.
(d) The actuarial certification required under (b) of this section must be based on calendar year data and submitted to the director annually not later than May 1 of each year starting in the second year following the year in which the initial rate schedules are first used. The actuarial memorandum required under (c) of this section must be submitted at least once every three years with the certification.

3 AAC 28.564

Eff. 3/27/2022, Register 241, April 2022

Authority:AS 21.06.090

AS 21.42.120

AS 21.42.130

AS 21.53.020

AS 21.53.030

AS 21.53.050

AS 21.53.090