For Insurers

Disability income actuarial memo requirements

The actuarial memo must be prepared and signed by a qualified actuary and include, but not limited to, the following:

Policy and certificate form numbers,

A brief description of the:

  • Type of policy.
  • Benefits.
  • Renew ability.
  • General marketing method.
  • The issue age limits.

Target groups and group sizes, if applicable,

A description of the purpose(s) of the memo,

A description of how rates were determined for both new and renewal business, including the general description and source of each assumption used. Assumptions should contain, but not be limited to:

  • Voluntary lapse by duration if calculating period is longer than one year.
  • Morbidity rates and expected claim costs.
  • Length of calculating period.
  • Anticipated loss ratio by duration, if calculating period is longer than one year.
  • If applicable, mortality rates/tables, and underwriting and selection wear-off factors.

Overall anticipated loss ratio for the policy,

Minimum anticipated loss ratio requirements,

A demonstration illustrating the development of anticipated loss ratio by duration for the entire calculating period. (For example: For long-term care, it is recommended that carriers furnish the demonstration by issue-age and on a composite basis with the expected distribution of policies.)

Expense assumptions by duration if calculating period is longer than one year, including the following:

  • Fixed and variable expenses.
  • Schedule of commission.
  • Premium tax.
  • Risk and contingency.
  • Profits.

Estimated average premium for Washington state and nationwide per policy,

A complete rate manual, or rate sheets, or rating formula, see WAC 284-58-030 ( and RCW 48.19.010(2) (

Appropriate rate formulas and rate factors for renewal policies if the manual rates are not applicable.

Samples of rate calculation for specified policyholders.

A certification of the memo signed by a qualified actuary.

A statement as to the status of this rate filing in the company's home state.