(1) Every issuer shall maintain records for each
producer of that producer's amount of replacement sales as a percentage of the
producer's total annual sales and the amount of lapses of long-term care
insurance policies sold by the producer as a percentage of the producer's total
annual sales.
(2) Every issuer shall report annually by June 30 the 10% of its producers with the
greatest percentages of lapses and replacements as measured by (1) above.
(3) Reported replacement and lapse rates do not alone constitute a violation of
insurance laws or necessarily imply wrongdoing. The reports are for the purpose
of reviewing more closely producer activities regarding the sale of long-term
care insurance.
(4) Every issuer shall report annually by June 30 the number of lapsed policies as
a percentage of its total annual sales and as a percentage of its total number
of policies in force as of the end of the preceding calendar year.
(5) Every issuer shall report annually by June 30 the number of replacement
policies sold as a percentage of its total annual sales and as a percentage of
its total number of policies in force as of the preceding calendar year.
(6) Every issuer shall report annually by June 30, for qualified long-term
care insurance contracts, the number of claims denied for each class of
business, expressed as a percentage of claims denied, other than claims denied
for failure to meet the waiting period or because of an applicable preexisting
condition.
(7) For
purposes of this rule, "policy" shall mean only long-term care
insurance and "report" means on a statewide basis.