STATE CORPORATION COMMISSION

Bureau of Insurance

AT RICHMOND, NOVEMBER 25, 2013

COMMONWEALTH OF VIRGINIA, ex rel.

STATE CORPORATION COMMISSION

Ex Parte: In the matter of revising the
Rules Governing Long-term Care Insurance

CASE NO. INS-2013-00238

ORDER INITIATING PROCEEDING

The State Corporation Commission ("Commission") initiates this proceeding to consider whether the Commission's Rules Governing Long-term Care Insurance should be revised.

Long-term care insurance sold in Virginia is regulated pursuant to Chapter 52 of Title 38.2 of the Code of Virginia, as well as through rules adopted by the Commission. In 1992, the Commission adopted Chapter 200 of Title 14 of the Virginia Administrative Code, entitled Rules Governing Long-term Care Insurance, 14VAC5-200-10 et seq. ("Rules").¹ provide standards for initial filing requirements and premium rate schedule increases that, as required by § 38.2-5206 of the Code, are "similar to those set forth in the model regulation for long-term care insurance developed by the National Association of Insurance Commissioners." In 2003, the Commission adopted revisions to the Rules that were primarily intended to lessen the need for future premium rate increases for policies issued on or after October 1, 2003.

On November 26, 2012, the Commission entered an Order in which it noted an increase in the number and frequency of substantial premium rate increase requests by insurers writing long-term care insurance in this Commonwealth. The Commission therefore directed the staff of the Bureau of Insurance ("Bureau") to prepare a report studying the premium rate increases implemented by insurers writing long-term care insurance on or after January 1, 2009 ("Report").²

The staff of the Bureau filed its Report on October 4, 2013.³ Among other things, the Report found that: (1) recent long-term care premium rate increases are largely the result of insurers' failure to adequately anticipate future claim costs given the lack of credible experience data that was available when they originally designed and priced the products; (2) many increases have been substantial and have resulted in a significant financial hardship to Virginia policyholders; and (3) those policyholders who are unable to afford the additional increases are faced with difficult choices such as reducing their benefits, if such option is available, or allowing their coverage to lapse.⁴

NOW THE COMMISSION, upon consideration of this matter, finds that it is appropriate to undertake a review of the Report and the Rules and consider proposing and adopting additional revisions to the Rules. Specifically, the Commission will seek and consider comments on matters regarding the Report and any suggested revisions to the Rules.

Accordingly, IT IS ORDERED THAT:

(1) This matter is docketed and assigned Case No. INS-2013-00238.

(2) All interested persons, including insurers writing long-term care insurance in Virginia, who desire to comment on the Bureau's Report or propose amendments to the Rules Governing Long-term Care Insurance, Chapter 200 of Title 14 of the Virginia Administrative Code, shall file written comments or proposals on or before February 1, 2014, with Joel H. Peck, Clerk, State Corporation Commission, c/o Document Control Center, P.O. Box 2118, Richmond, Virginia 23218. All comments shall refer to Case No. INS-2013-00238. Any person desiring to submit comments electronically may do so by following the instructions at the Commission's website: http://www.scc.virginia.gov/case.

(3) This matter is continued.

AN ATTESTED COPY hereof shall be sent by the Clerk of the Commission to Deputy Commissioner Althelia P. Battle, who forthwith shall mail a copy of this Order to all insurance companies who reported Long-Term Care Insurance Earned Premium in the 2012 Long-Term Care Experience Reporting Form as well as to all other interested persons; and C. Meade Browder, Jr., Senior Assistant Attorney General, Division of Consumer Counsel, Office of the Attorney General, 900 East Main Street, Second Floor, Richmond, Virginia 23219.

_____________________________

¹ The Rules can be found at: http://lis.virginia.gov/000/reg/TOC14005.HTM#C0200.

² Commonwealth of Virginia, ex rel. State Corporation Commission, Ex Parte: In the matter of investigating long-term care insurance premium rates, Case No. INS-2012-00282, Doc. Cont. Cen. No. 121130186, Order Directing Report (Nov. 26, 2012).

³ A copy of the Report can be found on the Commission's website: http://www.scc.virginia.gov/case, by selecting the "Docket Search" feature and searching for Case No. INS-2012-00282.

⁴ Report at 25-26.

DEPARTMENT OF ENVIRONMENTAL QUALITY

Notice of Citizen Nomination of State Surface Waters for Water Quality Monitoring

In accordance with § 62.1-44.19:5 F of the Code of Virginia, the Water Quality Monitoring Information and Restoration Act, the Virginia Department of Environmental Quality (DEQ) has developed guidance for requests from the public regarding specific segments that can be nominated for consideration to be included in DEQ's annual Water Quality Monitoring Plan.

Any citizen of the Commonwealth who wishes to nominate a water body or stream segment for inclusion in DEQ's Water Quality Monitoring Plan should refer to the guidance in preparation and submittal of their requests. All nominations must be received between January 1 and April 30, 2014, to be considered for the 2015 calendar year. Copies of the guidance document and nomination form are available online at http://www.deq.virginia.gov/Programs/Water/Water
QualityInformationTMDLs/WaterQualityMonitoring/CitizenMonitoring.aspx.

Nominations can be submitted by mail, fax, email, or hand delivery to the contact person below.

Use of the nomination form available from the contact person below is preferred. All nominations with the minimum of information as outlined in the guidance document will be accepted for review.

Contact Information: Stuart Torbeck, Department of Environmental Quality, 629 East Main Street, P.O. Box 1105, Richmond, VA 23218, telephone (804) 698-4461, FAX (804) 698-4032, or email charles.torbeck@deq.virginia.gov.

STATE LOTTERY DEPARTMENT

Director's Orders

The following Director's Orders of the State Lottery Department were filed with the Virginia Registrar of Regulations on October 7, 2013. The orders may be viewed at the State Lottery Department, 900 East Main Street, Richmond, VA, or at the office of the Registrar of Regulations, 201 North 9th Street, 2nd Floor, Richmond, VA.

Director's Order Number One (14)

"Convenience Store Highlight Ticket Dispenser Retailer Incentive Promotion" Virginia Lottery Retailer Incentive Program Requirements (effective on March 1, 2014, and shall remain in full force and effect until 90 days after the conclusion of the incentive program, unless otherwise extended by the Director)

Director's Order Number Five (14)

Virginia's Instant Game Lottery 1464 "3,000,000 Jackpot" Final Rules for Game Operation (effective January 7, 2014)

Director's Order Number Six (14)

Virginia's Instant Game Lottery 1444 "10X The Money" Final Rules for Game Operation (effective January 7, 2014)

Director's Order Number Seven (14)

Virginia's Instant Game Lottery 1403 "Cash In A Flash" Final Rules for Game Operation (effective February 4, 2014)

Director's Order Number Eight (14)

Virginia's Instant Game Lottery 1467 "$100 Million Cash Extravaganza" Final Rules for Game Operation (effective March 18, 2014)

Director's Order Number Ten (14)

Virginia's Instant Game Lottery 1343 "Lucky Cherry Slots" Final Rules for Game Operation (effective March 18, 2014)

Director's Order Number One Hundred Ten (13)

Virginia's Instant Game Lottery 1440 "Holiday Double Match" Final Rules for Game Operation (effective October 29, 2013)

STATE WATER CONTROL BOARD

Proposed Consent Special Order for Honeywell Resins & Chemicals, LLC

An enforcement action has been proposed for Honeywell Resins & Chemicals, LLC for alleged violations at Honeywell Resins & Chemicals, LLC, Hopewell Site, Hopewell, Virginia. The State Water Control Board proposes to issue a consent special order to Honeywell Resins & Chemicals, LLC to address noncompliance with State Water Control Board law. A description of the proposed action is available at the Department of Environmental Quality office named below or online at www.deq.virginia.gov. Gina Pisoni will accept comments by email at gina.pisoni@deq.virginia.gov, FAX (804) 527-5106, or postal mail at Department of Environmental Quality, Piedmont Regional Office, 4949-A Cox Road, Glen Allen, VA 23060, from December 14, 2013, to January 15, 2014.

VIRGINIA CODE COMMISSION

Notice to State Agencies

Contact Information: Mailing Address: Virginia Code Commission, General Assembly Building, 201 North 9th Street, 2nd Floor, Richmond, VA 23219; Telephone: Voice (804) 786-3591; FAX (804) 692-0625; Email: varegs@dls.virginia.gov.

Meeting Notices: Section 2.2-3707 C of the Code of Virginia requires state agencies to post meeting notices on their websites and on the Commonwealth Calendar at http://www.virginia.gov/connect/commonwealth-calendar.

Cumulative Table of Virginia Administrative Code Sections Adopted, Amended, or Repealed: A table listing regulation sections that have been amended, added, or repealed in the Virginia Register of Regulations since the regulations were originally published or last supplemented in the print version of the Virginia Administrative Code is available at http://register.dls.virginia.gov/documents/cumultab.pdf.

Filing Material for Publication in the Virginia Register of Regulations: Agencies use the Regulation Information System (RIS) to file regulations and related items for publication in the Virginia Register of Regulations. The Registrar's office works closely with the Department of Planning and Budget (DPB) to coordinate the system with the Virginia Regulatory Town Hall. RIS and Town Hall complement and enhance one another by sharing pertinent regulatory information.

ERRATA

BOARD OF AGRICULTURE AND CONSUMER SERVICES

Title of Regulation: 2VAC5-690. Regulations for Pesticide Containers and Containment Under Authority of the Virginia Pesticide Control Act.

Publication: 30:6 VA.R. 571-590 November 18, 2013

Correction to Fast-Track Regulation:

Page 578, 2VAC5-690-90 C, line 7, inside the parenthetical, insert "et seq." after "2VAC5-690-110"

VA.R. Doc. No. R14-3295; Filed November 26, 2013 12:04 p.m.