Section R590-285-15 - Premium Rate Schedule Increases(1) This section applies to any limited long-term care policy or certificate issued in this state, on or after July 1, 2021.(2) No rate increase may be requested by an insurer until the projected lifetime loss ratio, under best estimate assumptions, exceeds the anticipated lifetime loss ratio plus 2%.(3) An insurer shall provide notice of a pending premium rate schedule increase to the commissioner prior to the notice to the policyholders and shall include:(a) a revised rate schedule;(b) an actuarial memorandum that shall include:(i) a statement regarding the actuary's qualifications;(ii) an explanation of the review performed by the actuary;(iii) complete description of all pricing assumptions and any changes from the initial and any prior filing;(iv) an exhibit showing policy count, actual incurred claims, and earned premiums by duration both on a state and nationwide basis, and any revised projections based on the revised pricing assumptions;(v) an exhibit showing actual to expected loss ratios by duration;(vi) a statement that the revised premium schedule is expected to result in a lifetime loss ratio not less than 55%;(vii) a sensitivity analysis of the anticipated lifetime loss ratio to the changes in the individual assumptions, including any revised assumptions, including sensitivity to the mix of business;(viii) a description of the valuation assumptions, including any revisions since the initial and any prior filing, with sufficient detail or sample calculation to have a complete depiction of the reserve amounts to be held; and(ix) 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 such statement cannot be made, a complete description of the situation where this does not occur; and(c) an actuarial certification dated and signed by the actuary that all information presented in the actuarial memorandum is accurate and complete.(4) An insurer that is granted a premium rate schedule increase shall retain similar documentation related to the rate increase request as is required in Section R590-285-9(3).Utah Admin. Code R590-285-15
Adopted by Utah State Bulletin Number 2021-05, effective 2/23/2021