5630964, 69O-157.301 - Florida Administrative Rules, Law, Code, Register

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Florida Department of State and Division of Library and Information Services

Notice: 5630964

Notice of Proposed Rule

Department:

DEPARTMENT OF FINANCIAL SERVICES

Division:

OIR – Insurance Regulation

Chapter:

LONG-TERM CARE INSURANCE

Overview

RULE:

69O-157.301	Rate Increase Standards
69O-157.302	Facility Only Rates (Repealed)
69O-157.303	Home Health Care Only Rates (Repealed)
69O-157.304	Comprehensive Only Rates (Repealed)

PURPOSE:

To establish a framework for evaluating rate increases for long term care insurance, and to ensure that the rate increases are not excessive.

SUMMARY:

Section 627.9407(7)(c), Florida Statutes, provides that rates charged to an insured for renewal of an existing long term care insurance policy may not exceed the price the insurer charges for newly issued polices. The problem this statute addresses relates to “closed blocks” of business. A closed block of business occurs when a particular approved policy is no longer being sold to new customers. There will be a group of insureds who have the insurance, and they will continue to be renewed, but no new customers will be sold that policy. This statute protects those insureds in that closed block by precluding an insurer from having higher renewal rates than its rates for new business. This new rule implements this statute by defining terms used in the statute and explaining how calculations are to be done so the insurer can be sure it is in compliance with the statute.

RULEMAKING AUTHORITY:

627.9408(1) FS.

LAW:

627.031(1)(a), 627.062, 627.9407(7) FS.

PRINT PUBLISH DATE:

5/30/2008 Vol. 34/22

COMMENTS:

From 5/30/2008 To 6/20/2008 (21 Days)
The public comment period for this notice has already expired.

REFERENCE MATERIALS:

No reference(s).

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