At its 2014 Summer Meeting yesterday, the NAIC adopted amendments to its model regulation concerning
Long Term Care Insurance to increase the amount of actuarial
analysis to support rate filings and rate increases for such
policies. The expanded requirements for the actuarial certification
and a supporting memorandum signed by a member of the American
Academy of Actuaries include requirements of discussion of margin
for foreseeable adverse experience and the calculation of reserves
to be held.
As this article discusses, long term care
insurance has been and will increasingly be an area for litigation
and regulatory scrutiny. Increasing numbers of seniors and rate
increases which often greatly exceeded consumers' expectations
have prompted this new look by regulators. It is hoped that
additional input from actuaries may improve the quality of long
term projections of what rates may be needed.
