b'TABLE OF CONTENTSAn Impacted State, which is defined as thereview the insurer-provided information for domestic state or any state for which the productreasonableness. In addition, the MSA Team will associated with the insurers in-force LTCdocument how the proposal complies with the insurance premium rate increase proposal is orregulatory approach utilized by the MSA Team. At has been issued; and the completion of its review, the MSA Team will A Participating State, which is defined as anyproduce an MSA Advisory Report that provides impacted state that voluntarily agrees toboth summary and detail information about the participate in the rate review processsuchrate proposal, the review methodologies, the participation can take the form of receivinganalysis and other considerations of the team, as notifications of rate increase proposals in SERFF,well as its recommendations for rate increases.participation in communication/webinars with the MSA Team and access to the report which isGoals of the Processproduced at the end of such review (the MSAA primary goal of the adoption of the Framework is Advisory Report). that, through a coordinated review process, The MSA Review will resemble a state-specificinequities in rate approvals between states can be review process utilizing consistent actuarialreduced. The Framework also aims to benefit state standards and methodologies. The MSA Team willregulators in the following ways: (1) giving them the apply multiple approaches (as described in furtherability to leverage the expertise of the MSA Team in detail in the Framework) to calculatereviewing in-force LTC insurance rate increase filings recommended, approvable rate increases. Inin their state; (2) giving them the ability to utilize the developing its recommendations, the MSA TeamMSA Team to promote consistency; (3) allowing for will review the characteristics of the productsmore state regulatory actuaries to work with or under review to determine the most appropriateunder the supervision of qualified actuaries, which methods needed to reach its recommendations.affords them an opportunity to establish LTC While aspects of the approaches utilized may resultinsurance-specific qualifications in making actuarial in lower rate increases than those resulting fromopinions; and (4) allowing all state insurance loss ratio-based approaches and are outside theregulators to share questions and information pure loss ratio requirements included in theregarding a particular rate proposal or review statutes and regulations of most states, themethodologies, in order to increase each states approaches are aligned with statutoryknowledge base in this area and promote a more requirements that rates must be fair, reasonableconsistent national approach to in-force rate review.and not unfairly discriminatory. As part of the MSAThe intention of the adoption of the Framework is Review, the MSA Team will review support for thenot to supplant or otherwise replace the regulatory assumptions, experience and projections providedauthority, responsibility or decision-making of state by the insurer and perform validation steps toinsurance regulators. The Task Force emphasized at MAYER BROWN |101'