CID: Long-Term Care Rate Filing - Transamerica Life Insurance Company (Group)

Long-Term Care Rate Filing - Transamerica Life Insurance Company (Group)

Rate request: 151 percent increase

Decision: Disapproved, limited to a 40% increase on March 14, 2018.

On January 24, 2018, the Transamerica Life Insurance Company filed for a 151 percent rate increase on a small block of business for its group long-term care policies, which are no longer being marketed in the state. There are fewer than 450 of these policies currently in force in Connecticut.

The company said the increase is necessary because actual claims costs far exceeded projected costs that were calculated when the product was originally priced.

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.

After an actuarial review the Department determined that the small block of Connecticut policies is performing somewhat better than the company’s national book of business, the Connecticut performance is deteriorating. As a result, the Department disapproved in initial rate increase request, but limited it to a 40 percent increase to be implemented over three years.

The company said policyholders will be given the option to offset the increase and lower their premium by reducing their current benefits. Under Connecticut law, long-term care rate increases of 20 percent or higher must be phased in over three years or more.


Find the filing documents here at Long-Term Care Insurance Rate Filing

Content Last Modified on 3/14/2018 10:41:36 AM