CID: Long-Term Care Rate Filing - Prudential Insurance Company of America (Individual)

Long-Term Care Rate Filing - Prudential Insurance Company of America (Individual)

Rate Request: 46.5 percent average increase
Decision: Under Review
Public Comment Period: July 4 to July 24, 2018

On June 30, 2018, the Prudential Insurance Company of America requested an average rate increase of 46.5 percent on certain individual long-term insurance policies. The policies were initially offered from 1999 to 2012 and are no longer being actively marketed.

There are approximately 1,300 policies in force in Connecticut.

The company said it sought the increase because the number of people expected to draw lifetime benefits on a nationwide basis is significantly higher than what was initially anticipated when the company first priced the product. The costs to maintain those benefits for the lifetime of the plan are also higher than anticipated.

Prudential said it will work its customers to change their coverage options in order to mitigate the impact. In its rate filing the company said “there will also be opportunities for almost all policyholders to keep the premium at or below the same level that they were paying prior to the rate revision.”

Under Connecticut law, increases of 20 percent or more must be phased in over three years. If approved the new rates would take effect 60 days after the company notifies customers and not before November 1, 2018.

Find the filing, brief summary and public comment section here at All Current Rate Filings

Content Last Modified on 7/3/2018 1:38:57 PM