H233 Summary: Long-Term Care Insurance Changes

• Maximum annual rate increase for long-term care insurance policies is limited to 10% of the current premium rate in any calendar year.

• Cumulative rate increases for a long-term care policy form cannot exceed 100% of the original rate when the policy form was initially approved.

• For policies issued prior to February 1, 2003, anticipated lifetime loss ratios must be at least 60% for individual policies and 75% for group policies to approve rate increases.

• Insurers must provide policyholders with 45 days' written notice before rate increases take effect, including an explanation approved by the Commissioner for why the increase was requested.

• A contingent nonforfeiture benefit on lapse is triggered for policies issued after January 1, 2014, when cumulative premium increases reach specified thresholds based on the insured's issue age (ranging from 10% to 100% of initial premium).