No long-term care policy may contain a renewal provision less favorable to the insured than a right of renewal upon timely payment of premium, except that rates may be revised by the insurer on a class basis. However, the Office may authorize nonrenewal on a statewide basis, on terms and conditions deemed necessary by the Office, to best protect the interests of the insureds, if the insurer demonstrates:

1. (1) That renewal will jeopardize the insurer’s solvency; or

2. (2) That:

   1. (a) The actual paid claims and expenses have substantially exceeded the premium and investment income associated with the policies; and
   2. (b) The policies will continue to experience substantial and unexpected losses over their lifetime; and
   3. (c) The projected loss experience of the policies cannot be significantly improved or mitigated through reasonable rate adjustments or other reasonable methods; and
   4. (d) The insurer has made repeated and good faith attempts to stabilize loss experience of the policies, including the timely filing for rate adjustments.

Rulemaking Authority 624.308(1), 627.9407(1) FS. Law Implemented 624.307(1), 627.9407(1), (3) FS. History–New 5-17-89, Formerly 4-81.005, 4-157.005.