Rules 69O-157.302, 69O-157.303, and 69O-157.304, F.A.C., pertaining to Facility Only Rates, Home Health Care Only Rates, and Comprehensive Only Rates, are being amended to publish the new business rates that will be effective for 2010.

 

DEPARTMENT OF FINANCIAL SERVICES
OIR – Insurance Regulation

RULE NO: RULE TITLE
69O-157.302: Facility Only Rates
69O-157.303: Home Health Care Only Rates
69O-157.304: Comprehensive Only Rates
PURPOSE AND EFFECT: Rules 69O-157.302, 69O-157.303, and 69O-157.304, F.A.C., pertaining to Facility Only Rates, Home Health Care Only Rates, and Comprehensive Only Rates, are being amended to publish the new business rates that will be effective for 2010.
SUMMARY: Paragraph 627.9407(7)(c), Florida Statutes, regarding long-term care insurance, provides that any premium increase for existing insureds shall not result in a premium that exceeds the premium charged on a newly issued policy. This puts limits on how high the premium for existing customers can rise; they cannot be higher than rates charged for new policies.
The paragraph further provides that if the insurer is not issuing new coverage, the new business rate shall be as published by the Office, at the rate representing the new business rate of insurers representing 80% of the carriers currently offering policies with similar coverage, as determined by the prior calendar year earned premium.
In simple terms, every year the Office does a survey of insurers issuing new policies, and comes up with the “new business rate”, broken down by geographical area, and type of long-term care insurance.
Rules 69O-157.302, .303, and .304, F.A.C., pertaining to Facility Only Rates, Home Health Care Only Rates, and Comprehensive Only Rates, respectively, are being amended to publish the new business rates that will be effective for 2010.
SUMMARY OF STATEMENT OF ESTIMATED REGULATORY COSTS: No Statement of Estimated Regulatory Cost was prepared.
Any person who wishes to provide information regarding a statement of estimated regulatory costs, or provide a proposal for a lower cost regulatory alternative must do so in writing within 21 days of this notice.
SPECIFIC AUTHORITY: 627.9408(1) FS.
LAW IMPLEMENTED: 627.9407(7) FS.
IF REQUESTED WITHIN 21 DAYS OF THE DATE OF THIS NOTICE, A HEARING WILL BE HELD AT THE DATE, TIME AND PLACE SHOWN BELOW(IF NOT REQUESTED, THIS HEARING WILL NOT BE HELD):
DATE AND TIME: March 24, 2010, 9:30 a.m.
PLACE: 116 Larson Building, 200 East Gaines Street, Tallahassee, Florida
Pursuant to the provisions of the Americans with Disabilities Act, any person requiring special accommodations to participate in this workshop/meeting is asked to advise the agency at least 5 days before the workshop/meeting by contacting: Gerry Smith, Life and Health Product Review, Office of Insurance Regulation, E-mail [e-mail]. If you are hearing or speech impaired, please contact the agency using the Florida Relay Service, 1(800)955-8771 (TDD) or 1(800)955-8770 (Voice).
THE PERSON TO BE CONTACTED REGARDING THE PROPOSED RULE IS: Gerry Smith, Life and Health Product Review, Office of Insurance Regulation, E-mail [e-mail]

THE FULL TEXT OF THE PROPOSED RULE IS:

69O-157.302 Facility Only Rates.

(1) The following maximum new business rates are effective for 201009 rate increase filings and for 201110 rate filings until new rates are published: These annual rates are appropriate for:

(a) Tax qualified policies;

(b) A benefit of $100/day;

(c) An elimination period of 90 days.

(d) Policies offering Restoration of Benefits, and

(e) Sales in Hillsborough County. For all other counties, the rate from this table should be adjusted by the insurer’s current area factor applicable in that county relative to the insurer’s area factor in Hillsborough County.

(f) Insurers who did not use area factors in the closed blocks for which a rate change is being requested may calculate the new business rate as a weighted average of the Hillsborough and the South Florida area factors, where the weights used are in-force premium by county. For the purposes of this calculation, the South Florida area factors are those that apply in Broward, Miami-Dade Duval and Palm Beach county. The South Florida area factor is equal to 1.00.

(2) Facility Only Rates:

Issue Age	3-Yr Benefit Period	5-Yr. Benefit Period	Unlimited Benefit Period $324.72 $324.72 $324.72 $324.72 $324.72 $393.60 $393.60 $393.60 $393.60 $393.60 $447.72 $447.72 $447.72 $447.72 $447.72 $575.64 $575.64 $575.64 $575.64 $575.64 $629.76 $649.44 $669.12 $713.40 $762.60 $816.72 $870.84 $934.80 $1,008.60 $1,087.32 $1,170.96 $1,264.44 $1,362.84 $1,485.84 $1,613.76 $1,756.44 $1,913.88 $2,081.16 $2,322.24 $2,583.00 $2,878.20 $3,207.84 $3,576.84 $3,936.00 $4,334.52 $4,777.32 $5,259.40 $5,790.76 $6,435.28 $7,153.60 $7,950.64 $8,836.24 $9,820.24 $10,622.20 $11,488.12 $12,427.84 $13,446.28 $14,543.44 $15,734.00 $17,018.12
30	$244.38	$296.71
31	$245.76	$299.01
32	$247.18	$301.32
33	$248.61	$303.70
34	$250.08	$306.08
35	$274.33	$339.84
36	$275.92	$342.43
37	$277.56	$345.02
38	$279.19	$347.65
39	$280.87	$350.32
40	$305.37	$378.71
41	$307.09	$381.46
42	$308.81	$384.30
43	$310.57	$387.18
44	$312.37	$390.10
45	$362.59	$455.72
46	$365.02	$459.37
47	$367.49	$463.12
48	$370.01	$466.94
49	$372.56	$470.84
50	$392.25	$497.62
51	$403.43	$510.23
52	$411.81	$525.78
53	$431.63	$549.95
54	$454.37	$579.89
55	$477.16	$607.08
56	$511.89	$650.81
57	$547.50	$695.62
58	$589.72	$747.22
59	$632.91	$805.76
60	$682.93	$865.57
61	$734.08	$932.48
62	$789.34	$1,000.87
63	$859.63	$1,093.53
64	$937.93	$1,192.11
65	$1,017.65	$1,289.90
66	$1,105.08	$1,399.93
67	$1,200.43	$1,521.37
68	$1,320.99	$1,677.23
69	$1,471.97	$1,856.70
70	$1,637.36	$2,071.79
71	$1,842.51	$2,312.52
72	$2,059.81	$2,579.92
73	$2,274.97	$2,868.25
74	$2,502.28	$3,190.21
75	$2,767.75	$3,547.64
76	$3,074.08	$3,942.45
77	$3,415.26	$4,385.38
78	$3,796.56	$4,872.71
79	$4,215.98	$5,416.32
80	$4,683.37	$6,020.61
81	$5,205.93	$6,725.28
82	$5,782.36	$7,499.43
83	$6,313.69	$8,190.73
84	$6,890.31	$8,918.80
85	$8,214.34	$10,442.14
86	$8,930.08	$11,338.00
87	$9,702.70	$12,319.18
88	$10,546.42	$13,380.94
89	$11,461.24	$14,532.68

 

 

Issue Age	3-Yr Benefit Period	5-Yr. Benefit Period	Unlimited Benefit Period $324.72 $324.72 $324.72 $324.72 $324.72 $393.60 $393.60 $393.60 $393.60 $393.60 $447.72 $447.72 $447.72 $447.72 $447.72 $575.64 $575.64 $575.64 $575.64 $575.64 $629.76 $649.44 $669.12 $713.40 $762.60 $816.72 $870.84 $934.80 $1,008.60 $1,087.32 $1,170.96 $1,264.44 $1,362.84 $1,485.84 $1,613.76 $1,756.44 $1,913.88 $2,081.16 $2,322.24 $2,583.00 $2,878.20 $3,207.84 $3,576.84 $3,936.00 $4,334.52 $4,777.32 $5,259.40 $5,790.76 $6,435.28 $7,153.60 $7,950.64 $8,836.24 $9,820.24 $10,622.20 $11,488.12 $12,427.84 $13,446.28 $14,543.44 $15,734.00 $17,018.12
30	$228.66	$275.22
31	$229.22	$276.15
32	$229.80	$277.08
33	$230.37	$278.04
34	$230.96	$279.01
35	$263.37	$323.73
36	$264.01	$324.77
37	$264.67	$325.82
38	$265.33	$326.88
39	$266.01	$327.96
40	$298.51	$364.86
41	$299.21	$365.97
42	$299.90	$367.12
43	$300.61	$368.28
44	$301.34	$369.45
45	$369.67	$458.14
46	$370.65	$459.62
47	$371.65	$461.13
48	$372.66	$462.67
49	$373.70	$464.24
50	$398.60	$497.67
51	$411.60	$511.24
52	$420.64	$528.82
53	$445.60	$558.37
54	$474.57	$595.90
55	$503.55	$629.49
56	$540.19	$675.41
57	$577.18	$721.76
58	$622.49	$776.52
59	$668.19	$839.72
60	$722.30	$903.44
61	$776.87	$975.68
62	$835.93	$1,048.51
63	$909.53	$1,145.28
64	$992.02	$1,247.26
65	$1,077.91	$1,354.58
66	$1,172.56	$1,472.49
67	$1,276.07	$1,603.49
68	$1,412.37	$1,779.48
69	$1,575.08	$1,979.13
70	$1,754.91	$2,207.30
71	$1,962.10	$2,462.77
72	$2,188.32	$2,745.97
73	$2,413.69	$3,040.44
74	$2,658.09	$3,368.27
75	$2,934.86	$3,730.21
76	$3,245.07	$4,127.01
77	$3,589.14	$4,571.51
78	$4,000.29	$5,093.26
79	$4,452.28	$5,677.36
80	$4,957.50	$6,328.35
81	$5,524.62	$7,065.07
82	$6,150.23	$7,883.56
83	$6,698.27	$8,583.79
84	$7,290.02	$9,332.78
85	$8,214.34	$10,442.14
86	$8,930.08	$11,338.00
87	$9,702.70	$12,319.18
88	$10,546.42	$13,380.94
89	$11,461.24	$14,532.68

Rulemaking Authority 627.9408(1) FS. Law Implemented 627.9407(7) FS. History–New 11-1-07, Amended 5-31-09,________.

 

69O-157.303 Home Health Care Only Rates.

(1) The following maximum new business rates are effective for 201009 rate increase filings and for 201110 rate filings until new rates are published. These annual rates are appropriate for:

(a) Tax qualified policies;

(b) A benefit of $100/day;

(c) An elimination period of 0 days;

(d) Policies offering Restoration of Benefits, and

(e) Sales in Hillsborough County. For all other counties, the rate from this table should be adjusted by the insurer’s current area factor applicable in that county relative to the insurer’s area factor in Hillsborough County.

(f) Insurers who did not use area factors in the closed blocks for which a rate change is being requested may calculate the new business rate as a weighted average of the Hillsborough and the South Florida area factors, where the weights used are in-force premium by county. For the purposes of this calculation, the South Florida area factors are those that apply in Broward, Miami-Dade Duval and Palm Beach county. The South Florida area factor is equal to 1.34 1.30.

(2) Home Health Care Only Rates:

Issue Age	3-Yr Benefit Period	5-Yr. Benefit Period	Unlimited Benefit Period $353.52 $353.52 $353.52 $353.52 $353.52 $391.06 $391.06 $391.06 $391.06 $391.06 $434.82 $434.82 $434.82 $434.82 $434.82 $509.73 $509.73 $509.73 $509.73 $509.73 $580.43 $599.12 $624.11 $649.11 $674.02 $728.08 $770.08 $812.26 $867.74 $923.39 $978.95 $1,037.12 $1,098.99 $1,187.81 $1,286.48 $1,381.53 $1,482.81 $1,590.31 $1,714.91 $1,852.13 $1,995.50 $2,145.09 $2,307.23 $2,457.18 $2,613.54 $2,779.57 $2,948.38 $3,123.33 $3,330.88 $3,544.75 $3,754.99 $3,981.31 $4,213.86 $4,447.43 $4,697.07 $4,943.09 $5,205.36 $5,470.06 $5,849.84 $6,235.76
30	$272.61	$315.91
31	$272.61	$315.91
32	$272.61	$315.91
33	$272.61	$315.91
34	$272.61	$315.91
35	$292.22	$341.82
36	$292.22	$341.82
37	$292.22	$341.82
38	$292.22	$341.82
39	$292.22	$341.82
40	$324.90	$380.85
41	$324.90	$380.85
42	$324.90	$380.85
43	$324.90	$380.85
44	$324.90	$380.85
45	$370.83	$445.80
46	$370.83	$445.80
47	$370.83	$445.80
48	$370.83	$445.80
49	$370.83	$445.80
50	$421.10	$505.80
51	$434.17	$525.23
52	$453.78	$538.19
53	$466.85	$564.09
54	$486.64	$583.70
55	$531.60	$638.59
56	$558.45	$665.26
57	$592.02	$702.21
58	$632.66	$752.71
59	$673.29	$799.76
60	$710.48	$856.73
61	$757.65	$907.40
62	$805.00	$960.84
63	$869.58	$1,045.35
64	$937.24	$1,129.94
65	$1,015.07	$1,221.01
66	$1,092.89	$1,308.46
67	$1,170.63	$1,406.00
68	$1,268.77	$1,523.75
69	$1,373.54	$1,651.59
70	$1,484.75	$1,782.46
71	$1,602.50	$1,923.26
72	$1,720.25	$2,067.09
73	$1,849.76	$2,216.67
74	$1,979.08	$2,369.96
75	$2,118.57	$2,532.58
76	$2,261.06	$2,698.82
77	$2,403.54	$2,867.92
78	$2,587.37	$3,079.04
79	$2,771.21	$3,293.78
80	$2,968.20	$3,511.28
81	$3,171.73	$3,745.54
82	$3,381.79	$3,982.57
83	$3,595.48	$4,223.98
84	$3,819.42	$4,471.88
85	$4,052.80	$4,729.19
86	$4,296.34	$4,996.60
87	$4,542.80	$5,270.49
88	$4,921.25	$5,687.82
89	$5,302.62	$6,111.55

 

 

Issue Age	3-Yr Benefit Period	5-Yr. Benefit Period	Unlimited Benefit Period $389.82 $389.82 $389.82 $389.82 $389.82 $422.76 $422.76 $422.76 $422.76 $422.76 $461.16 $461.16 $461.16 $461.16 $461.16 $526.90 $526.90 $526.90 $526.90 $526.90 $597.11 $613.51 $635.44 $657.38 $679.24 $743.00 $785.99 $829.12 $888.01 $947.05 $1,006.01 $1,065.22 $1,129.72 $1,226.03 $1,333.02 $1,434.80 $1,542.04 $1,654.74 $1,788.57 $1,933.48 $2,083.78 $2,239.54 $2,406.31 $2,576.68 $2,752.65 $2,939.17 $3,126.07 $3,318.37 $3,557.64 $3,802.46 $4,042.05 $4,297.79 $4,559.00 $4,825.18 $5,107.51 $5,384.62 $5,678.03 $5,971.53 $6,427.23 $6,888.32
30	$300.45	$352.73
31	$300.45	$352.73
32	$300.45	$352.73
33	$300.45	$352.73
34	$300.45	$352.73
35	$317.66	$375.46
36	$317.66	$375.46
37	$317.66	$375.46
38	$317.66	$375.46
39	$317.66	$375.46
40	$346.34	$409.72
41	$346.34	$409.72
42	$346.34	$409.72
43	$346.34	$409.72
44	$346.34	$409.72
45	$386.64	$466.71
46	$386.64	$466.71
47	$386.64	$466.71
48	$386.64	$466.71
49	$386.64	$466.71
50	$436.88	$527.53
51	$448.35	$544.59
52	$465.56	$555.95
53	$477.03	$578.69
54	$494.39	$595.90
55	$548.14	$660.38
56	$575.78	$687.87
57	$609.32	$726.42
58	$653.14	$780.94
59	$696.96	$830.39
60	$735.72	$890.59
61	$785.28	$945.26
62	$834.99	$1,000.32
63	$905.94	$1,092.84
64	$977.57	$1,185.44
65	$1,060.15	$1,283.72
66	$1,142.73	$1,376.79
67	$1,225.23	$1,480.75
68	$1,329.72	$1,606.53
69	$1,440.02	$1,743.20
70	$1,555.98	$1,880.50
71	$1,677.68	$2,028.54
72	$1,799.38	$2,177.21
73	$1,941.59	$2,345.20
74	$2,083.65	$2,518.49
75	$2,236.67	$2,697.93
76	$2,390.27	$2,882.58
77	$2,543.88	$3,067.70
78	$2,746.01	$3,306.02
79	$2,948.15	$3,549.56
80	$3,161.83	$3,793.49
81	$3,381.25	$4,054.16
82	$3,606.40	$4,315.21
83	$3,836.78	$4,586.24
84	$4,078.18	$4,862.95
85	$4,325.84	$5,145.89
86	$4,584.46	$5,439.74
87	$4,843.59	$5,739.26
88	$5,281.80	$6,238.12
89	$5,720.53	$6,742.59

Rulemaking Authority 627.9408(1) FS. Law Implemented 627.9407(7) FS. History–New 11-1-07, Amended 5-31-09,________.

 

69O-157.304 Comprehensive Only Rates.

(1) The following maximum new business rates are effective for 201009 rate increase filings and for 201110 rate filings until new rates are published. These annual rates are appropriate for:

(a) Tax qualified policies;

(b) A benefit of $100/day;

(c) An elimination period of 90 days;

(d) Policies offering Restoration of Benefits, and

(e) Sales in Hillsborough County. For all other counties, the rate from this table should be adjusted by the insurer’s current area factor applicable in that county relative to the insurer’s area factor in Hillsborough County.

(f) Insurers who did not use area factors in the closed blocks for which a rate change is being requested may calculate the new business rate as a weighted average of the Hillsborough and the South Florida area factors, where the weights used are in-force premium by county. For the purposes of this calculation, the South Florida area factors are those that apply in Broward, Miami-Dade Duval and Palm Beach county. The South Florida area factor is equal to 1.00.

(2) Comprehensive Only Rates:

Issue Age	3-Yr Benefit Period	5-Yr. Benefit Period	Unlimited Benefit Period $622.87 $625.56 $628.85 $640.99 $644.48 $681.96 $694.85 $699.14 $703.57 $708.14 $744.90 $754.41 $761.15 $777.40 $785.18 $811.36 $827.36 $834.12 $843.22 $872.16 $885.02 $910.57 $941.52 $972.94 $1,005.11 $1,038.38 $1,098.41 $1,168.20 $1,241.76 $1,327.49 $1,406.23 $1,518.87 $1,634.80 $1,763.51 $1,889.04 $2,039.15 $2,242.87 $2,472.25 $2,717.22 $2,977.95 $3,258.58 $3,650.61 $4,078.34 $4,516.90 $4,989.64 $5,495.62 $6,160.74 $6,891.93 $7,616.29 $8,355.38 $10,904.13 $11,818.20 $12,820.94 $13,927.26 $15,117.75 $16,454.06 $17,976.84 $19,582.64 $21,291.57 $23,112.87
30	$356.29	$454.14
31	$357.87	$456.21
32	$359.50	$458.88
33	$361.17	$470.16
34	$371.48	$472.96
35	$394.20	$488.52
36	$396.05	$500.51
37	$398.42	$503.55
38	$400.41	$507.18
39	$411.53	$510.43
40	$425.67	$546.94
41	$431.46	$553.40
42	$435.96	$558.44
43	$440.16	$563.69
44	$453.08	$569.55
45	$462.69	$600.10
46	$476.62	$604.61
47	$481.31	$609.99
48	$487.16	$617.01
49	$501.72	$624.68
50	$510.28	$643.51
51	$530.60	$665.25
52	$547.56	$693.85
53	$565.67	$712.92
54	$584.47	$743.02
55	$604.14	$754.11
56	$644.88	$809.63
57	$679.14	$865.06
58	$724.11	$932.83
59	$760.97	$982.81
60	$817.49	$1,054.33
61	$883.47	$1,136.02
62	$954.83	$1,213.95
63	$1,029.20	$1,304.31
64	$1,101.86	$1,392.44
65	$1,189.14	$1,489.02
66	$1,303.22	$1,638.22
67	$1,439.64	$1,819.93
68	$1,586.10	$1,997.01
69	$1,726.79	$2,189.76
70	$1,882.16	$2,399.49
71	$2,122.56	$2,689.46
72	$2,380.33	$3,011.03
73	$2,643.96	$3,334.39
74	$2,925.10	$3,689.09
75	$3,233.67	$4,080.01
76	$3,622.71	$4,564.96
77	$4,043.45	$5,116.80
78	$4,467.54	$5,674.34
79	$4,913.66	$6,236.42
80	$5,365.77	$7,657.61
81	$5,851.19	$8,314.46
82	$6,360.85	$9,038.95
83	$6,954.06	$9,851.27
84	$7,579.36	$10,744.46
85	$9,393.68	$11,738.30
86	$10,622.25	$13,240.69
87	$11,550.00	$14,432.21
88	$12,554.44	$15,692.91
89	$13,619.15	$17,034.25

 

 

Issue Age	3-Yr Benefit Period	5-Yr. Benefit Period	Unlimited Benefit Period $551.77 $553.82 $556.47 $559.25 $562.12 $609.39 $613.04 $616.87 $620.85 $625.03 $666.22 $677.58 $686.36 $696.61 $706.05 $737.53 $749.12 $760.44 $773.49 $798.54 $813.68 $835.17 $864.38 $893.83 $923.80 $953.92 $1,013.97 $1,077.32 $1,142.80 $1,225.21 $1,295.72 $1,407.63 $1,517.18 $1,641.04 $1,754.64 $1,897.16 $2,109.14 $2,340.31 $2,577.06 $2,819.57 $3,075.07 $3,470.22 $3,900.29 $4,333.65 $4,800.53 $5,298.58 $5,959.12 $6,705.56 $7,436.47 $8,167.71 $9,137.19 $9,856.49 $10,649.85 $11,569.42 $12,583.26 $13,731.52 $15,353.86 $16,617.84 $17,971.04 $19,424.16
30	$338.04	$424.62
31	$339.55	$426.64
32	$341.12	$438.88
33	$352.01	$441.06
34	$353.68	$443.59
35	$372.21	$466.26
36	$373.99	$468.92
37	$376.10	$471.68
38	$387.27	$474.83
39	$389.53	$487.62
40	$401.94	$511.06
41	$406.86	$516.21
42	$410.98	$520.70
43	$424.26	$525.26
44	$428.32	$540.20
45	$435.39	$555.82
46	$447.54	$560.69
47	$452.53	$566.29
48	$467.40	$572.59
49	$473.01	$589.03
50	$479.26	$595.61
51	$505.23	$623.11
52	$513.39	$649.76
53	$538.24	$668.55
54	$556.76	$686.10
55	$576.17	$705.82
56	$613.07	$763.28
57	$644.96	$814.10
58	$685.09	$865.63
59	$727.89	$918.63
60	$770.32	$982.63
61	$837.63	$1,054.63
62	$902.26	$1,125.02
63	$970.76	$1,216.48
64	$1,037.79	$1,289.00
65	$1,115.07	$1,381.69
66	$1,227.95	$1,534.96
67	$1,363.32	$1,701.42
68	$1,500.23	$1,865.03
69	$1,633.30	$2,052.92
70	$1,789.01	$2,248.85
71	$2,018.76	$2,528.81
72	$2,256.08	$2,812.66
73	$2,512.25	$3,130.51
74	$2,787.33	$3,470.24
75	$3,076.60	$3,832.91
76	$3,443.00	$4,280.81
77	$3,835.70	$4,784.33
78	$4,226.95	$5,296.16
79	$4,655.32	$5,816.66
80	$5,033.64	$6,283.38
81	$5,957.64	$7,384.25
82	$6,462.62	$8,016.60
83	$7,047.04	$8,737.67
84	$7,672.15	$9,524.34
85	$8,275.28	$10,351.15
86	$9,225.98	$11,509.12
87	$9,960.46	$12,463.27
88	$10,770.06	$13,480.85
89	$11,635.34	$14,571.84

Rulemaking Authority 627.9408(1) FS. Law Implemented 627.9407(7) FS. History–New 11-1-07, Amended 5-31-09,________.

 

NAME OF PERSON ORIGINATING PROPOSED RULE: Gerry Smith, Life and Health Product Review, Office of Insurance Regulation, E-mail [e-mail]

NAME OF AGENCY HEAD WHO APPROVED THE PROPOSED RULE: The Financial Services Commission

DATE PROPOSED RULE APPROVED BY AGENCY HEAD: January 26, 2010

DATE NOTICE OF PROPOSED RULE DEVELOPMENT PUBLISHED IN FAW: October 23, 2009