Bill
Number: S.B. 1441
Barto
Floor Amendment
Reference
to: FINANCIAL INSTITUTIONS
Committee
Amendment
Amendment
drafted by: Leg Council
FLOOR
AMENDMENT EXPLANATION
The Barto Floor Amendment does the following:
1. Allows the Director
of the Arizona Department of Insurance (Department) to extend the 45-day period
for Long-Term Care Insurance premium rate approval by an additional 45 days in
order to allow the Department to conduct an independent actuarial review of the
requested rate.
2. Specifies that if the
independent actuary whose services are used by the Director determines that the
actuarial and historical data representing policyholder experience in this
state is not credible based on presently accepted actuarial standards of
practice, then the Director shall consider documentation based on experience
from a comparable state as determined by the independent actuary.
3. Requires the
Department to provide on its website a list of Department-specific contract
employment opportunities for independent actuaries and a link to the State
Procurement Office to apply for those positions.
4. Defines independent
actuary as a person who is a member in good standing of the American
Society of Actuaries, who is contracted by the Department for the purpose of
reviewing a rate increase filing submitted by an insurer and who is not either
employed by the Department or affiliated with an insurer.
5. Makes various
technical, conforming and clarifying changes.
Page 1, line 4, after "disapproval" insert
"; definition"
Line 12, after ". "
insert "After notifying the
insurer in writing within the forty‑five-day period, the director may
extend the forty‑five-day review period by an additional forty‑five
days to allow the department to conduct an independent actuarial review of the
requested rate."
Line 25, strike "only"
Line 29, after the period insert "If the independent actuary whose services are used by the
director pursuant to subsection D of this section determines that the actuarial
and historical data representing policyholder experience in this state is not
credible based on presently accepted actuarial standards of practice, the
director shall consider documentation based on experience from a comparable
state as determined by the independent actuary."
Page 2, line 1, strike "that is provided by the insurer and"
Line 2, after "increase"
insert ", including a description
of how the information contained"
Line 3, strike "last";
after "statements"
insert "demonstrates a need for
the requested rate increase"
Line 7, after "of"
strike remainder of line
Line 8, strike "the
policyholders" insert "policyholder claims in this state"
Line 10, strike "either:"
Line 11, strike "1."
Line 13, after "pay"
insert "the independent actuary's"
Line 15, after the period insert "The department shall provide on the department's website a
list of the department‑specific contract employment opportunities for
independent actuaries and a link to the state procurement office to apply for
those positions."
Strike lines 16 through 20
Page 2, line 23, strike "rate"; after "increase" insert "of the"; after "requested" strike remainder of line
Strike lines 24 and 25
Line 26, strike "insurer"
insert "amount"
Line 27, after "increases"
strike remainder of line
Strike lines 28 and 29, insert "that are actuarially equivalent to the single amount
requested by the insurer. The entire series and the schedule determined by the
director would be approved at one time as part of the current rate increase
filing."
Line 33, strike "may"
insert "shall";
strike "at the time of"
Line 34, strike "renewal"
insert "on the policy's
anniversary date"
Page 3, between lines 14 and 15, insert:
"K. For
the purposes of this section, "independent actuary" means a person
who is a member in good standing of the American academy of actuaries, who is
contracted by the department for the purpose of reviewing a rate increase
filing submitted by an insurer and who is not either employed by the department
or affiliated with an insurer."
Line 19, after "policyholders"
insert "in writing";
strike "thirty"
insert "ninety"
Line 20, strike "policy
renewal" insert "policy's annual anniversary"
Line 24, strike "An
illustration" insert "A disclosure"
Line 28, strike "all"
Line 29, strike "including"
insert "which shall include at
least"
Line 35, strike "may"
insert "shall also"
Line 36, strike the first "or" insert ", the option to"; strike "or may offer" insert
"and"
Page 4, line 2, strike "on renewal"
Line 4, after "lapses"
insert "and the benefit is
triggered"
Line 5, strike "all"
Line 9, strike "sixty"
insert "ninety";
strike "policy renewal"
insert "policy's annual anniversary"
Line 10, after "policyholder"
strike remainder of line
Page 4, line 11, strike "policy. The renewal notice shall include"
insert "that includes"
Line 12, after "expected"
insert "aggregate"
Amend title to conform