2004 Minnesota Statutes

     62S.26 Loss ratio. 

    (a) The minimum loss ratio must be at least 60 percent, 
 calculated in a manner which provides for adequate reserving of 
 the long-term care insurance risk.  In evaluating the expected 
 loss ratio, the commissioner shall give consideration to all 
 relevant factors, including: 

    (1) statistical credibility of incurred claims experience 
 and earned premiums; 

    (2) the period for which rates are computed to provide 
 coverage; 

    (3) experienced and projected trends; 

    (4) concentration of experience within early policy 
 duration; 

    (5) expected claim fluctuation; 

    (6) experience refunds, adjustments, or dividends; 

    (7) renewability features; 

    (8) all appropriate expense factors; 

    (9) interest; 

    (10) experimental nature of the coverage; 

    (11) policy reserves; 

    (12) mix of business by risk classification; and 

    (13) product features such as long elimination periods, 
 high deductibles, and high maximum limits. 

    (b) This section does not apply to policies or certificates 
 that are subject to sections 62S.021, 62S.081, and 62S.265, and 
 that comply with those sections. 

    HIST: 1997 c 71 art 1 s 26; 1Sp2001 c 9 art 8 s 10; 2002 c 379 
 art 1 s 113