CID: Long-Term Care Rate Filing - American General Life Insurance Company (Individual)

Long-Term Care Rate Filing - American General Life Insurance Company (Individual)

Rate Filing Review: 25 percent increase
Decision: Under Review
Public Comment Period: November 16, 2017 to December 5, 2017

On November 3, 2017, American General Life Insurance Co. requested an average increase of 25 percent for several of its individual long-term care plans. The company discontinued marketing the plans in 2001. There are approximately 70 policies currently in effect in Connecticut.

The company said it sought the increase because of the higher than projected benefit costs that would be required over the life of these policies. The company said that is the result of a higher than expected number of policies still in force and the projected costs of claims for those policyholders expected to draw on their benefits.

Unlike medical health insurance with premiums set to cover expenses incurred only during the upcoming policy year, long term care premiums are set to cover expenses that are not expected to occur until a distant date, sometimes 20 years in the future.

The company said it would offer its policyholders benefit options in order to mitigate the impact of a rate increase. Under Connecticut law, increases of 20 percent or more must be phased in over three years.

If approved, the new rates would take effect February 1, 2018.

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

Content Last Modified on 11/15/2017 1:46:25 PM