ARTICLE
1 September 2014

Long Term Care Insurance And Actuaries

RB
Reinhart Boerner Van Deuren s.c.

Contributor

Reinhart Boerner Van Deuren is a full-service, business-oriented law firm with offices in Milwaukee, Madison, Waukesha and Wausau, Wisconsin; Chicago and Rockford, Illinois; Minneapolis, Minnesota; Denver, Colorado; and Phoenix, Arizona. With nearly 200 lawyers, the firm serves clients throughout the United States and internationally with a combination of legal advice, industry understanding and superior client service.
At its 2014 Summer Meeting yesterday, the NAIC adopted amendments to its model regulation concerning Long Term Care Insurance.
United States Accounting and Audit

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.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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