Ch. 242

1993 LAWS OF MARYLAND

(2)      A POLICY OR CERTIFICATE THAT GUARANTEES THE INSURED THE
RIGHT TO PERIODICALLY INCREASE BENEFIT LEVELS WITHOUT PROVIDING
EVIDENCE OF INSURABILITY OR HEALTH STATUS SO LONG AS THE OPTION FOR THE
PREVIOUS PERIOD HAS NOT BEEN DECLINED; OR

(3)      A POLICY THAT COVERS A SPECIFIC PERCENTAGE OF ACTUAL OR
REASONABLE CHARGES AND DOES NOT INCLUDE A MAXIMUM SPECIFIED
INDEMNITY AMOUNT OR LIMIT.

(D) THE AMOUNT OF THE ADDITIONAL BENEFIT UNDER SUBSECTION (C)(2)
OF THIS SECTION SHALL BE NO LESS THAN THE DIFFERENCE BETWEEN THE
EXISTING POLICY OR CERTIFICATE BENEFIT AND THAT BENEFIT COMPOUNDED
ANNUALLY AT A RATE OF AT LEAST 5 PERCENT FOR THE PERIOD BEGINNING WITH
THE PURCHASE OF THE EXISTING BENEFIT AND EXTENDING UNTIL THE YEAR IN
WHICH THE OFFER IS MADE.

647.4. 647.3.

(A)     BENEFITS UNDER LONG-TERM CARE INSURANCE POLICIES OR
CERTIFICATES SHALL" BE DEEMED REASONABLE IN RELATION TO PREMIUMS
PROVIDED THE EXPECTED LOSS RATIO IS AT LEAST 60 PERCENT, CALCULATED IN A
MANNER THAT PROVIDES FOR ADEQUATE RESERVING OF THE LONG-TERM CARE
INSURANCE RISK.

(B)      IN EVALUATING THE EXPECTED AND ACTUAL LOSS RATIOS, THE
COMMISSIONER SHALL CONSIDER:

(1) STATISTICAL CREDIBILITY OF INCURRED CLAIMS EXPERIENCE AND
EARNED PREMIUMS;

(2) THE PERIOD FOR WHICH RATES ARE COMPUTED TO PROVIDE

COVERAGE;

(3)

(4)
DURATION;

EXPERIENCED AND PROJECTED TRENDS;

CONCENTRATION OF EXPERIENCE WITHIN EARLY POLICY

(5)      EXPECTED CLAIM FLUCTUATION;

(6)      EXPERIENCED REFUNDS, ADJUSTMENTS, OR DIVIDENDS;

(7)       RENEW ABILITY FEATURES;

(8)      ALL APPROPRIATE EXPENSE FACTORS;

(9)      INTEREST;

(10)    THE EXPERIMENTAL NATURE OF THE COVERAGE;

(11)    POLICY RESERVES;

(12)    MIX OF BUSINESS BY RISK CLASSIFICATION; AND

- 1630 -