| (5) If an acquiring insurer files for a rate increase
either on a long-term care policy form acquired from a nonaffiliated
insurer, or on a block of policy forms acquired from a nonaffiliated
insurer on or before January 1, 2002, or the end of the 24-month period
after the date of the acquisition of the block or policies, the acquiring
insurer may exclude that rate increase from the disclosure. However,
the nonaffiliated selling insurer must include the disclosure of that
rate increase in accordance with paragraph (2)(E) of this subsection.
(6) If the acquiring insurer in paragraph (5) of this
subsection files for a subsequent rate increase, even within the 24-month
period, on the same policy form acquired from a nonaffiliated insurer
or block of policy forms acquired from a nonaffiliated insurer referenced
in paragraph (5) of this subsection, the acquiring insurer must make
all disclosures required by paragraphs (2)(E), (3), (4), and (5) of
this subsection.
(7) An applicant must sign an acknowledgement at the
time of application that the insurer has made the disclosure(s) required
under paragraph (2) of this subsection. If due to the method of application
the applicant cannot sign an acknowledgement at the time of application,
the applicant must sign no later than at the time of delivery of the
policy or certificate.
(8) An insurer must use the text for Form Number LHL560(LTC)
as specified in Figure: 28 TAC §3.3829(b)(8)(H) to comply with
the requirements in paragraph (2)(A) and (E) of this subsection and
Form Number LHL561(LTC) as specified in Figure: 28 TAC §3.3829(b)(8)(I)
to comply with the requirements in paragraph (2)(B), (C), and (D)
of this subsection. The effective dates for use of each form are specified
in subsection (c) of this section. The following requirements and
procedures apply to Form Number LHL560(LTC) and Form Number LHL561(LTC):
(A) The text in each form must be in at least 12-point
type and must follow the order of the information presented in the
form.
(B) The text and order of presentation of information
in each form are mandated; the format for the forms is a recommended
format. An insurer may format the mandated text in a different format
from that specified in Figure: 28 TAC §3.3829(b)(8)(H) and Figure:
28 TAC §3.3829(b)(8)(I) if the insurer files the forms for review
and approval by the commissioner as provided in subparagraphs (C)
and (F) of this paragraph.
(C) Any form filed pursuant to subparagraph (B) of
this paragraph must be filed no later than 60 days prior to use and
is subject to the requirements and procedures set forth in Subchapter
A of this chapter (relating to Submission Requirements for Filings
and Departmental Actions Related to Such Filings).
(D) An insurer may add a company name and identifying
form number to Form Number LHL560(LTC) and Form Number LHL561(LTC)
as specified in Figure: 28 TAC §3.3829(b)(8)(H) and Figure: 28
TAC §3.3829(b)(8)(I) without obtaining commissioner approval.
(E) The Instructions to Company that are included in
Figure: 28 TAC §3.3829(b)(8)(H) and Figure: 28 TAC §3.3829(b)(8)(I)
are to aid the insurer in drafting the forms and should not be included
in the text of the forms used by the insurer.
(F) The forms filed pursuant to subparagraph (B) of
this paragraph should be filed with the Texas Department of Insurance,
Life and Health Division, Filings Intake, MC-LH-LHL, P.O. Box 12030,
Austin, Texas 78711-2030.
(G) Persons may obtain the required form by making
a request to the Texas Department of Insurance, Life and Health Division,
Life and Health Lines, MC-LH-LHL, P.O. Box 12030, Austin, Texas 78711-2030,
or by accessing the department's website at www.tdi.texas.gov/forms.
(H) A representation of Form Number LHL560(LTC) Long-Term
Care Insurance Personal Worksheet is as follows:
Attached Graphic
(I) A representation of Form Number LHL561(LTC) Long-Term
Care Insurance Potential Rate Increase Disclosure Form is as follows:
Attached Graphic
(9) An insurer must provide notice of an upcoming premium
rate schedule increase to all policyholders or certificate holders,
as applicable, at least 45 days prior to the implementation of the
premium rate schedule increase by the insurer. The notice must include
the information required by paragraph (2)(B), (C), and (D) of this
subsection and Form Number LHL561(LTC) Long-Term Care Insurance Potential
Rate Increase Disclosure Form as specified in Figure: 28 TAC §3.3829(b)(8)(I)
when the rate increase is implemented. The notice must comply with
the requirements specified in Figure: 28 TAC §3.3829(b)(8)(I).
(c) Effective dates for use of Form Number LHL560(LTC)
Long-Term Care Insurance Personal Worksheet, and Form Number LHL561(LTC)
Long-Term Care Insurance Potential Rate Increase Disclosure Form.
(1) In lieu of Form Number LHL560(LTC) Long-Term Care
Insurance Personal Worksheet specified in Figure: 28 TAC §3.3829(b)(8)(H),
insurers may use until December 31, 2009, the standard NAIC Long-Term
Care Insurance Personal Worksheet and a Texas Supplement printed on
a separate sheet that contains the "Questions Related to Your Needs."
(2) In lieu of Form Number LHL561(LTC) Long-Term Care
Insurance Potential Rate Increase Disclosure Form specified in Figure:
28 TAC §3.3829(b)(8)(I), insurers may use until December 31,
2009, the "Texas" Long-Term Care Insurance Potential Rate Increase
Disclosure Form, LTC RATE INCR DISC-01-2002, that is currently being
used in Texas. Insurers are not required to include the "Rate Increase
History" information on the "Texas" Long-Term Care Insurance Potential
Rate Increase Disclosure Form but are required to include such information
on the standard NAIC Long-Term Care Insurance Personal Worksheet.
(3) Insurers are not required to file the standard
NAIC Long-Term Care Insurance Personal Worksheet or the Texas Supplement
for review and approval by the Department.
(4) On and after January 1, 2010, all insurers must
use Form Number LHL560(LTC) Long-Term Care Insurance Personal Worksheet
specified in Figure: 28 TAC §3.3829(b)(8)(H) and Form Number
LHL561(LTC) Long-Term Care Insurance Potential Rate Increase Disclosure
Form specified in Figure: 28 TAC §3.3829(b)(8)(I) in accordance
with all of the requirements specified for these two forms in this
section.
|
| Source Note: The provisions of this §3.3829 adopted to be effective February 15, 1990, 15 TexReg 544; amended to be effective July 20, 1992, 17 TexReg 4769; amended to be effective May 8, 1997, 22 TexReg 3786; amended to be effective February 29, 2000, 25 TexReg 1705; amended to be effective January 6, 2002, 26 TexReg 10886; amended to be effective February 2, 2009, 34 TexReg599; amended to be effective May 11, 2022, 47 TexReg 2758 |
