Section 45-06-05.1-08.1 - Initial filing requirements for policies issued after March 1, 20201. This section applies to any long-term care policy issued in this state on or after March 1, 2020.2. An insurer shall provide the information listed in this subsection to the commissioner sixty days prior to making a long-term care insurance form available for sale. a. A copy of the disclosure documents required in section 45-06-05.1-07.b. An actuarial certification consisting of at least the following:(1) A statement that the initial premium rate schedule is sufficient to cover anticipated costs under moderately adverse experience and that the premium rate schedule is reasonably expected to be sustainable over the life of the form with no future premium increases anticipated.(2) A statement that the policy design and coverage provided have been reviewed and taken into consideration.(3) A statement that the underwriting and claims adjudication processes have been reviewed and taken into consideration.(4) A statement that the premiums contain at least the minimum margin for moderately adverse experience defined in subparagraphs a and b:(a) A composite margin may not be less than ten percent of lifetime claims.(b) A greater margin may be appropriate in circumstances where the company has less credible experience to support its assumptions used to determine the premium rates.(5)(a) A statement that the premium rate schedule is not less than the premium rate schedule for existing similar policy forms also available from the insurer except for reasonable differences attributable to benefits; or(b) A comparison of the premium schedules for similar policy forms currently available from the insurer with an explanation of the differences.(6) A statement that reserve requirements have been reviewed and considered. Support for this statement must include:(a) Sufficient detail or sample calculations provided so as to have a complete depiction of the reserve amounts to be held; and(b) A statement that the difference between the gross premium and the net valuation premium for renewal years is sufficient to cover expected renewal expenses; or if such a statement cannot be made, a complete description of the situations where this does not occur. An aggregate distribution of anticipated issues may be used as long as the underlying gross premiums maintain a reasonably consistent relationship.c. An actuarial memorandum prepared, dated, and signed by the member of the academy of actuaries must be included and must address and support each specific item required as part of the actuarial certification and provide at least the following information: (1) An explanation of the review performed by the actuary prior to making the statements in paragraphs 2 and 3 of subdivision b.(2) A complete description of pricing assumptions.(3) Sources and levels of margins incorporated into the gross premiums that are the basis for the statement in paragraph 1 of subdivision b of the actuarial certification and an explanation of the analysis and testing performed in determining the sufficiency of the margins. Deviations in margins between ages, sexes, plans, or states must be clearly described. Deviations in margins required to be described are other than those produced utilizing generally accepted actuarial methods for smoothing and interpolating gross premium scales.(4) A demonstration that the gross premiums include the minimum composite margin specified in paragraph 4 of subdivision b.N.D. Admin Code 45-06-05.1-08.1
Adopted by Administrative Rules Supplement 374, October 2019, effective 10/1/2019.Amended by Administrative Rules Supplement 2020-380, April 2021, effective 4/1/2021.General Authority: NDCC 28-32-02
Law Implemented: NDCC 26.1-45