[§431:10H-224]  Reserve standards; lifeinsurance policies or riders.  (a)  When long-term care benefits areprovided through the acceleration of benefits under group or individual lifepolicies or riders to these policies, the policy reserves for the benefitsshall be determined in accordance with section 431:5-307.  Claim reserves shallalso be established in the case where the policy or rider is in claim status.

(b)  Reserves for policies subject to thissection shall be based on the multiple decrement model utilizing all relevantdecrements except for voluntary termination rates.  Single decrementapproximations are acceptable if the calculation produces essentially similarreserves, if the reserve is clearly more conservative, or if the reserve is immaterial. The calculations may take into account the reduction in life insurance benefitsdue to the payment of long-term care benefits.  However, in no event shall thereserves for the long-term care benefit and the life insurance benefit be lessthan the reserves for the life insurance benefit assuming no long-term carebenefit.

(c)  In the development and calculation ofreserves for policies and riders subject to this section, due regard shall begiven to applicable policy provisions, marketing methods, administrativeprocedures, and all other considerations which have an impact on projectedclaim costs, including but not limited to the following:

(1)  Definition of insured events;

(2)  Covered long-term care facilities;

(3)  Existence of home convalescence care coverage;

(4)  Definition of facilities;

(5)  Existence or absence of barriers to eligibility;

(6)  Premium waiver provision;

(7)  Renewability;

(8)  Ability to raise premiums;

(9)  Marketing method;

(10)  Underwriting procedures;

(11)  Claims adjustment procedures;

(12)  Waiting period;

(13)  Maximum benefit;

(14)  Availability of eligible facilities;

(15)  Margins in claim costs;

(16)  Optional nature of benefit;

(17)  Delay in eligibility for benefit;

(18)  Inflation protection provisions; and

(19)  Guaranteed insurability option.

(d)  Any applicable valuation morbidity tableshall be certified as appropriate as a statutory valuation table by a member ofthe American Academy of Actuaries. [L 1999, c 93, pt of §2]