For Insurers

Long-term care actuarial memo requirements

The actuarial memo should be prepared and signed by a qualified actuary and include:

  • Policy and certificate-form numbers
  • Brief descriptions of the type of policy, benefits, renewability, general marketing method and 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, mortality rates and tables, morbidity rates and expected claim costs, length of calculating period, anticipated loss ratio by duration, and, if applicable, 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 (It's recommended that carriers furnish the demonstration by issue-age and on a composite basis with the expected distribution of policies by issue age. In accordance with TAA 02-04, a separate demonstration must be furnished for each premium payment period option.)
  • Expense assumptions by duration, including fixed and variable expenses, schedule of commission, premium tax, risk and contingency, and profits
  • Estimated average premium for Washington state and nationwide per policy
  • A complete rate manual, or rates sheets or rating formula - see WAC 284-58-033 ( 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 qualified actuary
  • A statement as to the status of this rate filing in the company's home state