Accident and Health Working Group
Accident and Health Working Group Page
Summer 2009 Meeting Summaries Index

The Accident and Health Working Group of the Life and Health Actuarial Task Force met Friday, June 11.

During this meeting, the Working Group:

• Discussed the project to update the refund calculation in Appendix A of the Model Regulation to Implement the NAIC Medicare Supplement Insurance Minimum Standards Model Act and requested an extension of time to work on the project.

• Discussed and recommended changes to the health Financial Analysis Handbook to reflect the changes to the Actuarial Opinion section of the annual statement instructions for the health Annual Statement Blank.

• Adopted an updated version of the Medicare Supplement Insurance Model Compliance Manual with a new section on innovative benefits and included information on the new Medicare supplement plans to be issued in 2010.

• Discussed the survey of state experience to address the question of closed blocks of long-term care insurance.

• Appointed a subgroup to review the Actuarial Opinion section of the health Annual Statement Instructions for 2010.

• Discussed prospective principles-based reserving issues for health insurance. Received a status report from the American Academy of Actuaries (AAA) Long-Term Care Principles-Based Work Group.

• Discussed a memo sent to the Statutory Accounting Principles (E) Working Group in response to their request for guidance on incurred dates.

• Formed a subgroup to discuss long-term care provisions under the federal Pension Protection Act of 2006.

• Discussed component rate increase analysis and appointed a subgroup to study the issue. Among the considerations discussed were:

•  Whether loss ratio standards are “minimum standards,” rather than “maximum” or “appropriate” standards.

• The professional responsibilities of an actuary certifying a rate increase.

Action Items:

• Adopted an updated version of the Medicare Supplement Insurance Model Compliance Manual.
  • Requested an extension of time to work on the Medicare supplement refund formula in the Model Regulation to Implement the NAIC Medicare Supplement Insurance Minimum Standards Model Act.