Form and Actuarial Filings Made Easy for Accident and Health, Life, Annuity and Credit Products

2. Form and Actuarial Filings Made Easy for Accident and Health, Life, Annuity and Credit Products

3. Form and Actuarial Filings Made Easy for Accident and Health, Life, Annuity and Credit Products • Presenters • Edie Phillips, Insurance Specialist- Life, Annuity and Credit Section • Russell Speir, Insurance Specialist- Accident and Health Section • Virginia Vera, Insurance Specialist- Life, Annuity and Credit Section • Dewayne Matthews, Insurance Specialist- Actuarial Section

4. Form and Actuarial Filings Made Easy for Accident and Health, Life, Annuity and Credit Products • Topics • Types of Filings • Form Review Process • Key Points to Improving the Speed for the Form Review Process

5. Form and Actuarial Filings Made Easy for Accident and Health, Life, Annuity and Credit Products • Life, Annuity, & Credit Section • Jackie Murphy-Ealey, Director • Life • Annuity • Credit • Viatical/Life Settlement • Business Changes • Life Illustrations • New, Uncommon or Unusual Forms

6. Form and Actuarial Filings Made Easy for Accident and Health, Life, Annuity and Credit Products • Accident & Health Section • Cindy Carpenter, Director • Group and Individual Major Medical • Large and Small Employer Health Benefit Plans • Association Plans • Blanket Group Type Plans • Medicare Supplement • Long Term Care • New, Uncommon or Unusual Forms

7. Form and Actuarial Filings Made Easy for Accident and Health, Life, Annuity and Credit Products • Actuarial Section • Jan Graeber, Team Leader • Long Term Care • Medicare Supplement • Individual Accident and Health • Small Group Change in Rating Methodology • Credit Life and Credit Accident and Health • Annuity Standard Non-forfeiture Calculations • Universal and Whole Life Cash Value Calculations

8. Form and Actuarial Filings Made Easy for Accident and Health, Life, Annuity and Credit Products • Form Review Process • Who Assigns Your Filings • Bill Key and Sandra Dodson • Russell Speir and Sean Fry • How Are Filings Assigned • Experience • Product Knowledge • Insurance Specialist Workload

9. Form and Actuarial Filings Made Easy for Accident and Health, Life, Annuity and Credit Products • Form Review Process • Insurance Specialist Workflow • Date received order • Statutory Review Period • Target is 30 days • Coordinating Pending Filings • Actuarial Memorandums receive a double review • Final Actions occur within 60 days

10. Form and Actuarial Filings Made Easy for Accident and Health, Life, Annuity and Credit Products

11. Form and Actuarial Filings Made Easy for Accident and Health, Life, Annuity and Credit Products • Key Points to Improving the Speed of the Form Review Process • Required Certification Form and Transmittal Checklist • Correspondence Accompanying the Forms • Actuarial Memorandum, if applicable • Explanation of Variability • Product Checklists

12. Form and Actuarial Filings Made Easy for Accident and Health, Life, Annuity and Credit Products • Texas Department of Insurance Home Page • www.tdi.state.tx.us • Filings Intake • Transmittal Checklist for Life/Health • http://www.tdi.state.tx.us/forms/lhlfilingsops/lhl020.pdf • Transmittal Checklist for Certain Miscellaneous Life/Health Documents • http://www.tdi.state.tx.us/forms/lhlfilingsops/lhl243.pdf

13. Form and Actuarial Filings Made Easy for Accident and Health, Life, Annuity and Credit Products • Product Checklists • Accident & Health Checklists • http://www.tdi.state.tx.us/forms/form10accident.html • Annuity Product Checklists • http://www.tdi.state.tx.us/forms/form10annuity.html • Credit Insurance Product Checklists • http://www.tdi.state.tx.us/forms/form10credit.html • Life Insurance Product Checklists • http://www.tdi.state.tx.us/forms/form10life.html

14. Form and Actuarial Filings Made Easy for Accident and Health, Life, Annuity and Credit Products • Product Checklists Continued • Other Product Checklists • http://www.tdi.state.tx.us/forms/form10other.html • Viatical and Life Settlement Product Checklists • http://www.tdi.state.tx.us/forms/form10viatical.html • Mandated Benefits/Offer Chart • http://www.tdi.state.tx.us/health/indexlh.html

15. Form and Actuarial Filings Made Easy for Accident and Health, Life, Annuity and Credit Products • Categories of Filings • New Policy and/or Related Forms • New, Uncommon or Unusual Forms • Resubmission of Previously Disapproved Form • Corrections to Pending Form • Substantially Similar to Previously Approved Form • Exact Copy of Previously Approved Form • Exempted Forms • Matrix Filings

16. Form and Actuarial Filings Made Easy for Accident and Health, Life, Annuity and Credit Products • What is New, Uncommon or Unusual • Explanation of Product Features • Actuarial Justification • Numerical Example of How the Product Functions • Marketing or Advertising Materials

17. Form and Actuarial Filings Made Easy for Accident and Health, Life, Annuity and Credit Products • Corrections and Resubmissions • Changes must be underlined

18. Form and Actuarial Filings Made Easy for Accident and Health, Life, Annuity and Credit Products

19. Form and Actuarial Filings Made Easy for Accident and Health, Life, Annuity and Credit Products • Corrections and Resubmissions • Submit Clean Copy of Final Version • Address Each Objection • Include Copy of Disapproval or Correction Letter • For Life Filings, Provide Appropriate Reserve Information

20. Form and Actuarial Filings Made Easy for Accident and Health, Life, Annuity and Credit Products

21. Form and Actuarial Filings Made Easy for Accident and Health, Life, Annuity and Credit Products • Long Term Care Rating • Rate Authority • Rates are filed for approval • Pre-rate stabilized policies • Rate stabilized policies • Section 1651.053, Texas Insurance Code (TIC), 28 Texas Administrative Code (TAC) §3.3831

22. Form and Actuarial Filings Made Easy for Accident and Health, Life, Annuity and Credit Products • Long Term Care Rating • Requirements (initial rates) • Assumptions must be supported by credible data • All certifications required by 28 TAC §3.3831(b) must be provided • A definition of moderately adverse must be provided along with sensitivity analysis

23. Form and Actuarial Filings Made Easy for Accident and Health, Life, Annuity and Credit Products • Long Term Care Rating • Requirements (rate increases to pre-rate stabilized forms) • Experience may not be combined with rate stabilized experience • Any changes in assumptions must be supported by credible data • Texas forms only • Demonstration that a minimum 60% lifetime loss ratio is anticipated with the rate increase

24. Form and Actuarial Filings Made Easy for Accident and Health, Life, Annuity and Credit Products • Long Term Care Rating • Requirements (rate increases to rate stabilized forms) • Pricing assumption/current assumption comparison • Texas forms only • Actuarial requirements and certifications set forth in 28 TAC §3.3831(c)

25. Form and Actuarial Filings Made Easy for Accident and Health, Life, Annuity and Credit Products • Long Term Care Rating • Requirements Continued (rate increases to rate stabilized forms) • Certification: 28 TAC §3.3831(c)(2)(A)(ii)(1) • “No further premium rate schedule increases are anticipated if the requested premium rate schedule increase is implemented and the underlying assumptions, which reflect moderately adverse conditions are realized.”

26. Form and Actuarial Filings Made Easy for Accident and Health, Life, Annuity and Credit Products • Medicare Supplement Rating • Rate Authority • Rates are filed for approval • Loss ratio requirements must be met • Sections 1652.101 – 1652.105, TIC, 28 TAC §§3.3307, 3.3322, 3.3323

27. Form and Actuarial Filings Made Easy for Accident and Health, Life, Annuity and Credit Products • Medicare Supplement Rating • 1990 and 2010 plan definitions • 1990 plan – A group or individual policy issued on or after March 1, 1992 and with an effective date for coverage prior to June 1, 2010 • 2010 plan - A group or individual policy with an effective date for coverage on or after June 1, 2010

28. Form and Actuarial Filings Made Easy for Accident and Health, Life, Annuity and Credit Products • Medicare Supplement Rating • 2010 plans • Medicare Supplement plans delivered on or after June 1, 2010 must meet the minimum benefit standards set forth in 28 TAC §3.3306 • Adds plans M and N and eliminates plans E, H, I, and J

29. Form and Actuarial Filings Made Easy for Accident and Health, Life, Annuity and Credit Products • Medicare Supplement Rating • 2010 plan rating • 2010 plans may be rated independently of 1990 plans • Rating factors that were not used for 1990 plans may be used for 2010 plans • Underwriting factors may be used for rating purposes

30. Form and Actuarial Filings Made Easy for Accident and Health, Life, Annuity and Credit Products • Medicare Supplement Rating • Area Factors • What if area factors differ between 1990 and 2010 plans? • What if area factors differ between plans?

31. Form and Actuarial Filings Made Easy for Accident and Health, Life, Annuity and Credit Products • Medicare Supplement Rating • Experience • Experience for 1990 and 2010 plans must be combined for rating purposes • Exception: Acquired blocks • Experience must be separated by plan

32. Form and Actuarial Filings Made Easy for Accident and Health, Life, Annuity and Credit Products • Individual Accident and Health • Rate Authority • Rates and supporting documentation must be filed • Rate Increases greater than or equal to 50% • 28 TAC §3.4(q)

33. Form and Actuarial Filings Made Easy for Accident and Health, Life, Annuity and Credit Products