AB 389 Summary

• Amends long-term care insurance policy requirements to deem benefits reasonable if lifetime expected loss ratio is at least 60% of the December 31, 2009 premium scale plus 70% of premium increases filed on or after January 1, 2010

• Authorizes the Insurance Commissioner to approve rate revisions filed on or after January 1, 2010 with less than 70% loss ratios (but not below 60%) if an insurer demonstrates the rates are necessary to protect its financial condition

• Revises actuary qualification requirements to require American Academy of Actuaries membership with at least five years' relevant long-term care insurance pricing experience, or the ability to issue a statement of actuarial opinion as required by law

• Permits insurers to choose between having rate applications reviewed by state employee actuaries or independent contractors, with insurer costs charged for independent contractor reviews

• Requires department to establish regulations maintaining confidentiality of rate filings and proprietary insurer information when contracting with independent actuaries