Replaces Bulletin 87-004

Bulletin No. 06-009 October 20, 2006 Replaces Nevada Bulletin 87-004 LIFE, ACCIDENT & HEALTH, ANNUITY AND CREDIT RATE AND FORM FILING PROCEDURES The insurance laws of Nevada require certain rates and forms that are issued or delivered in the state of Nevada to be filed with the Commissioner of Insurance. The Commissioner must approve such rates and forms before they can be marketed or sold. This bulletin outlines the submission and review procedures for these filings. It does not supersede the requirements of Nevada laws and regulations governing the business of insurance. Insurers are required to be aware of and comply with all Nevada laws, regulations, Division bulletins, and Division opinions. When submitting a rate or form filing to the Life and Health Section, entities subject to Chapter 687B of the NRS must adhere to the following guidelines. Filings may be submitted by U.S. mail, Federal Express or a similar mail service. The Division will not accept filings via fax or e-mail transmission. A separate filing must be submitted for each entity and be accompanied by: 1. A cover letter. The cover letter must include: a. The subject that lists: (1) A description of type of insurance and line of business. (2) The entity identification number. (3) The check or money order number. b. One of the following statements must be included in the body of the letter: (1) The filing does not contain any unusual or potentially controversial items from normal entity or industry standards; or 1 (2) The filing does contain such unusual or controversial items. Include an explanation of the items and where the information can be found within the filing. c. The proposed effective date of the forms being filed. After the Division has approved a rate change, the insurer must provide a written notice to the insured at least 60 days before the proposed effective date of the rate increase. See NRS 687B.420. d. A complete description of each form being filed. The name of the form and form number for each document. Each form must bear an identifying form number. e. Whether it is a new filing or a modification to an existing approved filing. If the filing is intended to supersede another, provide the form number being replaced. f. A statement on the nature of the revision if the filing is a modification. Include the reason why the revision is being proposed and the expected impact of the revision on coverage or cost. Provide a copy of the original form marked in red or bold faced print. g. A statement that indicates whether the forms have been approved in the entity’s domiciliary state and the name of such state. h. A statement listing any other states where such forms have been submitted and whether such states have approved or disapproved such forms.The percentage amount of any proposed rate change. i. If the filing is for a rider, a list of the form numbers the rider will be attached to and the date the forms were approved by the Division. Include a description of the type of policy. k. If the filing is submitted through SERFF (System for Electronic Rate and Form Filing), include the cover letter information in the uniform transmittal document filing description area. To receive proof of the approved filing, include a duplicate of the cover letter and a stamped, self-addressed envelope large enough to hold the documents for return. 2. A completed “Uniform Life, Accident and Health, Annuity, Credit Transmittal Document” authored by the National Association of Insurance Commissioner’s (NAIC). The document is available on the Nevada Division of Insurance Web site by logging on to http://doi.state.nv.us. The document must include: a. The identifying number for the type of insurance (field 9, Type of Insurance) and the sub-type of insurance (field 10, Product Coding Matrix Filing Code) of the uniform 2 transmittal document in accordance with the Uniform Life, Accident & Health, Annuity and Credit Coding Matrix. A copy of the matrix is posted on the Nevada Division of Insurances Web site at http://doi.state.nv.us. b. The uniform transmittal document must be completed in accordance with the filing instructions in this bulletin and attached to the top of each paper filing. c. All fields of the uniform transmittal document must be completed for SERFF in accordance with the state filing instructions contained in the SERFF data base on the SERFF Web site http://www.serff.org/. 3. Filing Fees. A filing fee must be remitted by check or money order payable to the Nevada Division of Insurance (Division) for each filing in the appropriate amount pursuant to NRS 680B.010 and Chapter 680B of the NAC. a. Paper filings must have the check or money order attached to the uniform transmittal document. b. SERFF filings must have the check or money order attached to a printed copy of the electronically submitted uniform transmittal document and mailed to the Division. A SERFF filing is not considered “received” until the Division receives the check or money order. The filing fee amount and the date of mailing must be noted on the uniform transmittal document. 4. Actuarial memorandum. An actuarial certification signed by a qualified actuary for any form or rate submission requiring or involving actuarial expertise. The guidelines for filing of rates designated by the Nevada Division of Insurance must be used. The Division does not accept average increase or average decrease language. 5. Readability certificate. Flesch scores must be on the certificate and be greater than a score of 40 points. 6. Entity Contact Information. The name, telephone number and address of the contact person for the entity must be provided. The following requirements may or may not apply. Variable Language Policy Filings. Entities that submit variable language within a form must provide a description of the variability to include a matrix of all possible combinations. Third Party Filers. Third party filers must attach a copy of the authorization letter (with each submission) from the insurance entity in order to submit filings on their behalf. Discretionary Groups. Discretionary Groups (groups other than “true” groups as defined in NAC 679B.036) must complete and provide the Division a self-certification LH100 Form, Attachment A of the LH100 Form, the name of the trust and a copy of the trust agreement. Each 3 trust must be filed separately. Nevada does not permit discretionary group annuities. See NRS 688A.430. Life Illustrations. A certification for life policies or riders that will be illustrated as required by NAC 686A.460 to 686A.479, inclusive, must be provided. The certification should be prepared by the illustration actuary and sent annually to the Nevada Division of Insurance. An insurer is also required to submit an annual certification by an officer of the insurance entity. Non-conventional life insurance policies. Non-conventional life insurance policies such as adjustable life policies, flexible premium life policies and universal life policies must comply with the requirements of the Nevada Division of Insurance Bulletin 29, issued July 6, 1981. Self-certification. Refer to Nevada Division of Insurance Bulletin 94-004 for requirements. Advertisements. Non-conventional life insurance policies (Nevada Division of Insurance Bulletin 29) and Medicare Supplement (NAC 687B.280) advertising materials must be submitted to the Nevada Division of Insurance for prior approval. All other advertising materials may be submitted to the Division as an informational filing. Deemer Date. The deemer date does not begin until the filing fee has been received and all appropriate documents have been submitted. The deemer date shall be determined by the Division. Deemer dates do not apply to rate filings or Health Maintenance Organizations. (See NRS 695C.170 and NRS 695C.180.) All filings must comply with the procedures in the applicable filing laws and bulletins. Filings that do not comply with these procedures and do not include all required components will be considered incomplete and disapproved. The Division will retain the stamped original letter of submission and any material it deems necessary used to justify its approval. Each entity shall maintain copies of all correspondence, forms, and data submitted to the Division. This bulletin becomes effective December 1, 2006. Nevada Bulletin 87-004 is withdrawn. ____________________________________ ALICE A. MOLASKY-ARMAN Commissioner of Insurance 4