The National Association of Insurance Commissioners (NAIC) has started a new effort to establish national standards for reviewing and approving long-term care insurance (LTCI) rate increase requests.
The NAIC’s members agreed Tuesday, at a meeting in Orlando, Florida, to create a Long-Term Care Insurance (EX) Task Force.
The task force will be part of the NAIC’s executive committee.
The New Task Force
The charge of the task force will be to develop “a consistent national approach for reviewing long-term care insurance rates that result in actuarially appropriate increases being granted by the states in a timely manner, and eliminates cross-state rate subsidization,” according to a copy of the group’s proposed charge included in a meeting materials packet.
The task force is also supposed to “identify options to provide consumers choice regarding modifications to long-term care insurance (LTCI) contract benefits where policies are no longer affordable due to rate increases,” according to the task force charge.
Scott White, the Virginia insurance commissioner, will be the task force chairman, and Michael Conway, the Colorado commissioner, will be the vice chair.
The task force expects to hold an in-person meeting June 3, in Kansas City, Missouri, at the NAIC’s NAIC Insurance Summit.
The task force is supposed to prepare a proposal for the NAIC’s executive committee by Nov. 14, 2020, when the NAIC is set to start its 2020 fall national meeting in Indianapolis.
Unless the NAIC decides to extend the life of the new LTCI (EX) Task Force, the new task force will shut down Jan. 31, 2021.
The NAIC LTCI Family Tree
The new, executive committee task force is supposed to work with another panel with a similar name: the Long-Term Care Insurance (B/E) Task Force.