Life insurance long-term care benefits

1. A life insurance policy that funds long-term care benefits entirely by accelerating the death benefit is considered to provide reasonable benefits in relation to premiums paid, if the policy complies with all of the following provisions: a. The interest credited internally to determine cash value accumulations, including long-term care, if any, are guaranteed not to be less than the minimum guaranteed interest rate for cash value accumulations without long-term care set forth in the policy; b. The portion of the policy that provides life insurance benefits meets the nonforfeiture requirements of North Dakota Century Code sections 26.1-33-18 through 26.1-33-28; c. The policy meets the disclosure requirements of subsections 4, 5, and 6 of North Dakota Century Code section 26.1-45-09; d. Any policy illustration that meets the applicable requirements of the national association of insurance commissioners life insurance illustrations model regulation; and e. An actuarial memorandum is filed with the insurance department that includes: (1) A description of the basis on which the long-term care rates were determined; (2) A description of the basis for the reserves; (3) A summary of the type of policy, benefits, renewability, general marketing method, and limits on ages of issuance; (4) A description and a table of each actuarial assumption used. For expenses, an insurer must include a percentage of premium dollars per policy and dollars per unit of benefits, if any; (5) A description and a table of the anticipated policy reserves and additional reserves to be held in each future year for active lives; (6) The estimated average annual premium per policy and the average issue age; (7) A statement as to whether underwriting is performed at the time of application. The statement shall indicate whether underwriting is used and, if used, the statement shall include a description of the type or types of underwriting used, such as medical underwriting or functional assessment underwriting. Concerning a group policy, the statement shall indicate whether the enrollee or any dependent will be underwritten and when underwriting occurs; and (8) A description of the effect of the long-term care policy provision on the required premiums, nonforfeiture values, and reserves on the underlying life insurance policy, both for active lives and those in long-term care claim status.