Pricing Med Supp Flashcards
1
Q
Pricing Med Supp
Rating Types
A
- Issue Age
- Attained Age
- Community-Rated
2
Q
Pricing Med Supp
Premium Increases
A
Done annually to account for increases in provider payment schedules and utilization changes over time
3
Q
Pricing Med Supp
NAIC Model Regulation
A
- Rates and supporting documentation must be filed and approved annually
- Must meet 3 LR requirements
4
Q
Pricing Med Supp
Loss Ratios that Must be Met as Part of Annual Filing
A
- Total Claims / Total Premiums
- Future Claims / Future Premiums
- Expected Third Year Loss Ratio
5
Q
Pricing Med Supp
Items to be Provided in Filing
A
- Desc. of Policy Benefits
- Desc. of Marketing, UW, etc.
- Historical experience (by duration)
- Projected future experience
- Actuarial certification
6
Q
Pricing Med Supp
Reserving Requirements
A
- Appropriate Reserves
- Active Life Reserves
- Test Premium Adequacy
- Risk-Based Capital Calculation
7
Q
Pricing Med Supp
Pricing Assumptions
A
- Morbidity
- Mortality (Not significant)
- Persistency
- Investment Earnings
- Selection Factors/UW
- Age/Sex Distributions
- Smoker/Non-Smoker
- Area
- Expenses and Taxes
- Mode of Premium
- Policy Fee (to cover maintenance expenses)
- Actuarial memorandum and certification
