Actuarial Certification

In Long-Term Care Insurance, an actuarial certification is a formal statement of approval that a company's insurance premiums meet federal standards set by the Model Regulation Act. 

This is an act that regulates Long-Term Care Insurance to provide fair coverage and pricing to everyone. All companies must get an actuarial certification when they wish to set or increase premiums. 

Companies can only get an actuarial certification when an independent actuary deems that the premium rate or increase is necessary for the company's survival. 

There are a few requirements companies must meet to get this certification:

• The initial premium is expected to cover costs, even under adverse conditions. 

• There are no premium increases expected for the lifetime of the policy. 

• Profit is not a reason for a premium increase.

For more information on premiums, you can read our article on how much Long-Term Care Insurance costs.