Section R590-285-14 - Reporting Requirements(1)(a) An insurer shall maintain records of each producer's:(i) amount of replacement sales as a percent of the producer's total annual sales; and(ii) amount of lapses of policies sold by the producer as a percent of the producer's total annual sales.(b) An insurer shall file with the commissioner annually by June 30, using a form substantially similar to Appendix B of the NAIC Limited Long-Term Care Model Regulation: (i) the 10% of its producers with the greatest percentages of lapses and replacements as measured by Subsection (1)(a);(ii) the number of lapsed policies as a percent of its total annual sales and as a percent of its total number of policies in force as of the end of the preceding calendar year; and(iii) the number of replacement policies sold as a percent of its total annual sales and as a percent of its total number of policies in force as of the preceding calendar year.(2) This subsection applies to an individual policy issued in this state on or after July 1, 2021. (a)(i) Starting in the second year following the year in which an initial rate schedule is first used, an insurer shall file, by May 1 of each year, an actuarial certification prepared, dated, and signed by a qualified actuary that includes the following information:(A) a statement of the sufficiency of the current premium rate schedule;(B) for a rate schedule that is no longer marketed, a statement that the rate schedule: (I) continues to be sufficient to cover anticipated costs under best estimate assumptions; or(II) may no longer be sufficient; and(C) a description of the review performed that led to the statement.(ii) If a rate schedule is no longer sufficient under Subsection (2)(a)(i)(B)(II), an insurer shall file, within 60 days of the actuarial certification submission, a plan of action and time frame for the re-establishment of adequate margins for moderately adverse experience.(b)(i) An actuarial memorandum dated and signed by a qualified actuary who prepares the information shall be prepared to support the actuarial certification and provide the following: (A) a detailed explanation of the data sources and review performed by the actuary before making the statement;(B) a complete description of experience assumptions and their relationship to the initial pricing assumptions;(C) a description of the credibility of the experience data; and(D) an explanation of the analysis and testing performed to determine the current presence of margins.(ii) The insurer shall submit the actuarial memorandum at least once every three years with the actuarial certification under Subsection (2)(a).Utah Admin. Code R590-285-14
Adopted by Utah State Bulletin Number 2021-05, effective 2/23/2021Adopted by Utah State Bulletin Number 2024-21, effective 10/22/2024