We want to bring you some highlights from the in-person LTCi EX Task Force meeting we attended August 12 during NAIC’s Summer National Meeting in Portland. The Commissioners principally discussed the next steps in the rollout of the Multistate Actuarial (MSA) Framework and the results of a survey of financial advisors to help the Task Force understand how policyholders are considering rate increase communications and the accompanying reduced benefit options that the rate increase communications include.
MSA Framework. The Task Force shared that they expect to have the MSA Framework and an accompanying website available in September. Commissioners Scott White (Chair; Virginia) and Michael Conway (Vice Chair; Colorado) continued to urge companies to participate in the process. Fred Andersen from the Minnesota Department shared that it is rolling out an Actuarial Associate program to assist with training Department actuaries on LTCi issues in order to deepen the expertise available for review of MSA filings. The program currently has 12 members.
Financial Advisor Survey. The Task Force heard a report on a survey of 14 financial advisors concerning how consumers receive and react to rate increase notice letters and reduced benefit options, with a focus on standalone coverage. The key recommended changes were for the Task Force to continue to work to improve the brevity and clarity of the letters and the options provided therein. A recommendation was also made to make it easier for consumers to access financial and insurance expertise in order to make the reduced benefit option choice that is appropriate for them.
The full meeting agenda and the materials reviewed by the Task Force are available on NAIC’s website.