For the purpose of this chapter, the following definitions and standards apply, unless the context clearly requires otherwise.
(1) "Certificate" has the meaning set forth in RCW 48.83.020
(2) "Exceptional increase" means only those increases filed by the issuer as exceptional for which the commissioner determines the need for the premium rate increase is justified due to changes in laws or regulations applicable to long-term care coverage in this state; or due to increased and unexpected utilization that affects the majority of issuers of similar products. Except as provided in WAC 284-83-090
, exceptional increases are subject to the same requirements as other premium rate schedule increases. The commissioner may request a review by an independent actuary or a professional actuarial body of the basis for a request that an increase be considered an exceptional increase. The commissioner, in determining that the necessary basis for an exceptional increase exists, must also determine any potential offsets to higher claims costs.
(3) "Incidental," as used in WAC 284-83-090
, means a value of the long-term care benefits provided that is less than ten percent of the total value of the benefits provided over the life of the policy. These values must be measured as of the date of issue. In simple cases where the base policy and the long-term care benefits have separately identifiable premiums, the premiums can be directly compared. In other cases, annual cost of insurance charges might be available for comparison. Some cases may involve comparison of present value of benefits.
(4) "Group long-term care insurance" has the meaning set forth in RCW 48.83.020
(5) "Guaranteed renewable" means that renewal of a long-term care insurance policy cannot be declined by the issuer for any reason except nonpayment of premiums, but the issuer can revise rates on a class basis.
(6) "Insured" means any beneficiary or owner of a long-term care policy regardless of the type of issuer.
(7) "Issuer" has the meaning set forth in RCW 48.83.020
(8) "Noncancellable" means that renewal of a long-term care insurance policy cannot be declined and rates cannot be revised by the issuer.
(9) "Policy" has the meaning set forth in RCW 48.83.020
(7), unless the context clearly indicates otherwise, and includes certificates issued under a group policy.
(10) "Qualified actuary" means a member in good standing of the American Academy of Actuaries.
(11) "Qualified long-term care insurance" has the meaning set forth in RCW 48.83.020
(12) "Similar policy forms" means all of the long-term care insurance policies and certificates issued by the issuer in the same long-term care benefit classification as the policy form being considered. Certificates of groups that meet the definition in RCW 48.83.020
(6)(a) are not considered similar to certificates or policies otherwise issued as long-term care insurance, but are similar to other comparable certificates with the same long-term care benefit classifications. For purposes of determining similar policy forms, long-term care benefit classifications are defined as follows: Institutional long-term care benefits only, noninstitutional long-term care benefits only, or comprehensive long-term care benefits.