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LTCI: NAIC Panel May Define “Adverse”

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Rising long-term care insurance (LTCI) rates are making work for members of the Senior Issues Task Force.

Members of the task force, an arm of the National Association of Insurance Commissioners (NAIC), Kansas City, Mo., are thinking more about the definitions state insurance regulators need to oversee LTCI rate change requests.

Some LTC insurers say they need to increase rates because claims experience has been worse than expected.

During the NAIC’s fall meeting in National Harbor, Md., the task force received two proposals for adverse experience definitions, according to the panel’s meeting minutes.

Regulators in Wisconsin delivered a proposed definition for “moderately adverse long-term care experience.”

The Health Actuarial Task Force — another NAIC panel – submitted a proposed definition for “adverse development” that is designed for use in LTCI pricing.

Nebraska is running a new subgroup that is supposed to review the definition proposals and report back to the Senior Issues Task Force.

The task force also is continuing with efforts to update an LTCI rate increase disclosure model, and it says it is getting ready to seek comments on the current draft.