Changing LTC Products Prompt A Look At Existing Regulations
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Regulators are deciding whether long term care products are changing sufficiently to warrant making changes to existing regulations.
Among the points under discussion while a revamp of the Long Term Care Insurance model act and regulation is being weighed are pooling and the filing of annual rate certifications.
The issues are among 10 talking points that the National Association of Insurance Commissioners, Kansas City, Mo., is looking at to determine whether the models are actuarially up to date.
"Do you pool? How do you pool? And, when do you pool?" were questions that Sheldon Summers, an actuary with the California insurance department, raised during a recent discussion.
Pooling involves combining different blocks of LTC business that a company offers.
Florida requires companies to pool and the approach can offer insight into claims costs and patterns of claims costs, says Frank Dino, an actuary with the Florida department of financial services.