The American Academy of Actuaries (AAA) has set up a Long-Term Care Terminations Work Group to help the National Association of Insurance Commissioners (NAIC) analyze what will happen when policyholders terminate LTCI policies.
Warren Jones, chairperson of the AAA work group, told NAIC officials in a letter that the work group held a conference call Feb. 25 and followed up with an in-person meeting March 5.
Work group members have started by developing a timeline and agenda for completing their work, and they hope to have policy termination data ready for the NAIC’s fall meeting, Jones said in a letter included in the spring meeting materials packet of the Health Actuarial Task Force.
In related news, Long-Term Care Actuarial Working Group, an arm of the Health Actuarial Task Force, talked at the spring meeting about plans to require insurers to send it LTCI experience data.
The working group also heard a report for a pricing subgroup.
Pricing subgroup members are working on the idea of requiring LTCI carriers to certify their rates every year.
The subgroup members of rejected the idea of adding annual rate caps to the NAIC’s Long-Term Care Model Regulation.