TDI strongly encourages carriers to use plain language in all rate change notices and other consumer communications. Communications should clearly explain:
- The change.
- The consumer’s options.
- How to get more information.
- Any deadlines for consumer action.
Texas has specific laws and rules that apply when insurance carriers increase long-term care rates:
- A long-term care premium rate cannot be used before it is filed with TDI and approved by the Texas Commissioner of Insurance. (Texas Insurance Code Section 1651.056(a))
- You must notify consumers at least 45 days before their increase takes place, and must offer consumers at least one option to adjust their benefits to help offset the cost of the increase. (Texas Insurance Code Section 1651.056(c); 28 TAC 3.3844(c))
- The explanation of the increase should not be false or misleading. (Texas Insurance Code Sections 541.003, 541.051, and 541.052)
- The Commissioner can reject an increase that is not proven necessary or does not comply with statutes and TDI rules. (Texas Insurance Code Section 1651.056(b))
- You must explain why a rate adjustment was necessary, and the increase must be certified by an actuary credentialed by both the Society of Actuaries and the American Academy of Actuaries. (28 TAC 3.3831(c))
See the attached guide for help in writing letters: 10 tips for clear letters
For questions about this bulletin, contact Jan Graeber at Jan.Graeber@tdi.texas.gov.