Chief Actuaries of Life/Accident and Health Insurance Companies and Fraternal Organizations Licensed in Illinois : Concerning; Health Insurance Reporting; Rate Filings; Valuation Manual

Springfield Office 320 W. Washington Street Springfield, Illinois 62767 (217) 782-4515 Chicago Office 122 S. Michigan Ave., 19th Floor Chicago, Illinois 60603 (312) 814-2420 Illinois Department of Insurance JB PRITZKER Governor ROBERT H. MURIEL Director TO: Chief Actuaries of Life/Accident and Health Insurance Companies and Fraternal Organizations Licensed in Illinois FROM: Robert Muriel, Director of Insurance DATE: December 20, 2019 RE: Company Bulletin 2019-08 Comments Concerning: • Health Insurance Reporting • Rate Filings • Valuation Manual Health Insurance Reporting 1. Effective May 31, 2017, 50 Ill. Adm. Code 2004 was amended to incorporate the August 29, 2016, NAIC Valuation Manual for policies issued and claims incurred on or after January 1, 2017. Provisions for all policies and claims incurred prior to January 1, 2017, remain unchanged. However, pursuant to 215 ILCS 5/223(8)(c), the Jan. 1, 2019 Edition of the NAIC Valuation Manual (adopted September 10, 2018) is the currently effective version in Illinois for policies issued and claims incurred on or after January 1, 2017. The Department is in the process of amending 50 Ill. Adm. Code 2004 to reflect the edition in effect as required by statute. 2. Companies that write small group health insurance in Illinois are required to submit by May 15 of each year a certification of compliance with the Small Employer Health Insurance Rating Act. 50 Ill. Adm. Code 3801 is the rule to be followed in completing the certification. All certifications shall be submitted through SERFF. For further information please contact Mr. Eric Anderson at Eric.Anderson@illinois.gov. 320 West Washington St. Springfield, Illinois 62767-0001 (217) 782-4515 http://insurance.illinois.gov Rate Filings 3. 50 Ill. Adm. Code 2012 was revised effective February 27, 2018. Please review the updated language before any rate filings are submitted to ensure that the filings comply with the revisions. 4. Filings for life insurance policies that accelerate benefits for long-term care should demonstrate compliance with 50 Ill. Adm. Code 2012.110(d). 5. For all Credit Life rate filings that do not file prima facie rates and for all Credit Accident and Health rate filings, an actuarial memorandum is required to be submitted. Experience exhibits are also required to be filed with all Credit Accident and Health rate filings to demonstrate compliance with the 50% loss ratio requirement in 50 Ill. Adm. Code 1052. 6. Companies writing Medicare Supplement insurance in Illinois are required by 50 Ill. Adm. Code 2008.80(b) to submit Medicare Supplement refund calculations. The calculations are due on May 31 of each year. All calculations shall be submitted through SERFF as Other- Informational filings. For additional information please contact Mr. Anderson at Eric.Anderson@illinois.gov. Valuation Manual 7. Illinois domestics are not required to file a request for the Life PBR Exemption as described in II(D) of the 1/1/19 edition of the Valuation Manual, as 2019 is within the initial three-year transition period discussed in II(C). Please refer to this bulletin in future years unless and until another bulletin is posted. Any future bulletins that pertain to year-end issues are expected to be posted in the first half of December.