State insurance regulators will be considering two long-term care insurance (LTCI) rate regulation efforts at an upcoming meeting.
The Senior Issues Task Force, an arm of the National Association of Insurance Commissioners (NAIC), has put proposed changes to the NAIC’s LTCI model regulation and a proposed model LTCI rate increase bulletin on the agenda for a two-day LTCI meeting.
The task force plans to start the meeting June 10 in Reston, Va.
The NAIC’s executive committee approved an LTCI model update development project in December 2012.
The proposed LTCI model regulation revisions could change the explanations and documentation an insurer would have to give when filing initial rates.
An insurer would have to show that the premiums are high enough to accommodate “moderately adverse experiance.”
The “composite margin” for an insurer without much experience to support its premium rate-setting assumptions would amount toat least 10 percent of expected lifetime claims.