WAC 284-83-250. Life insurance policies that accelerate benefits for long-term care

(1) WAC 284-83-210 through 284-83-245 do not apply to life insurance policies that accelerate benefits for long-term care. (2) 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 chapter 48.76 RCW; (c) The policy meets the disclosure requirements of RCW 48.83.070 (2) and 48.83.080 ; (d) Any policy illustration that meets the applicable requirements of the chapter 48.23A RCW; and (e) An actuarial memorandum is filed with the insurance department that includes: (i) A description of the basis on which the long-term care rates were determined; (ii) A description of the basis for the reserves; (iii) A summary of the type of policy, benefits, renewability, general marketing method, and limits on ages of issuance; (iv) A description and a table of each actuarial assumption used. For expenses, the issuer must include percent of premium dollars per policy and dollars per unit of benefits, if any; (v) A description and a table of the anticipated policy reserves and additional reserves to be held in each future year for active lives; (vi) The estimated average annual premium per policy and the average issue age; (vii) A statement as to whether underwriting is performed at the time of application. The statement must indicate whether underwriting is used and, if used, the statement must 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 must indicate whether the enrollee or any dependent will be underwritten and when underwriting occurs; and (viii) 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.