Weekly Tip: Realistic Specifications Page Values

 

Weekly Tips

Realistic Specifications Page Values

4/24/2015

In our Weekly Tip this week we would like to address a Specifications Page requirement that is common across the Uniform Standards for all types of insurance available for IIPRC review. Policy and rider standards include a requirement for the filed specifications page to be “completed with hypothetical data that is realistic and consistent with the other contents of the policy and any required actuarial memorandum.” This standards provision is typically found in the first paragraph of the Additional Submission Requirements - General section. The Standards for Individual Long-Term Care Insurance Advertising Material contain a similar requirement that the Statement of Variability present realistic and reasonable information.

This requirement means that the specifications page (also known as data page or schedule page) for your product should contain numerals that are accurate and reflective of the actual product design. For example, the issue age shown on the specifications page should be within the issue age range of the policy. A specifications page that shows $XXX.XX or $9999.99 is not realistic or acceptable. This requirement is important to the review of your submission because both form and actuarial review relies on consistency among the forms, Statement of Variability and actuarial memorandum. Inconsistency and lack of accurate specifications page data hinders substantive review and generates objections.

Best practices for all types of insurance include (1) populating the specifications page with realistic hypothetical data and (2) performing a consistency check for all data elements across the forms, Statement(s) of Variability and actuarial memorandum for your filing. Don’t forget to perform a consistency check again when documents have changed during the review process. This step is highly recommended to streamline the review of objection responses!

We hope that this Tip is helpful in making your IIPRC filing experience more efficient.  If you have any questions about this requirement or the Insurance Compact, please contact the Office.