Long-Term Care Rate Filing - State Farm Mutual Automobile Insurance Company (Individual)
Rate request – 38 percent average increase
Decision – Under Review
Public Comment Period: May 4, 2013 to May 24, 2013
On April 25, 2013, State Farm Mutual Automobile Insurance Co. requested an average increase of 38 percent for its long-term care plans.
The plans were sold in Connecticut from March 2000 through December 2002 and are no longer being marketed. Any rate change would affect renewals only. The renewals are guaranteed, meaning the company cannot refuse to renew a policy.
There are 48 policies currently in effect in Connecticut.
The company said it sought the increase because significantly higher than anticipated lifetime loss ratios. This is largely due to lower mortality rates and higher expected future costs of benefits.
The company said in an effort to mitigate the impact of any potential increase it will offer its policyholders the option of reducing benefits, removing optional riders or other similar options.
If approved, the new rates would take effect September 1, 2013.
Content Last Modified on 5/3/2013 2:09:56 PM