CID: Long-Term Care Rate Filing - Continental Casualty Company (Individual)

Long-Term Care Rate Filing - Continental Casualty Company (Individual)

Rate Request: 229.5 percent increase

Decision: Under Review

Public Comment Period: March 9 to March 29, 2017

On March 7, 2017, Continental Casualty Co. requested an increase of 229.5 percent for its individual long-term care policies.

The policies were sold in Connecticut from 1998 to 2003 and are no longer being marketed. There are approximately 900 policies currently in effect in the state.

The company said it sought the increase because the original pricing does not support the higher than projected benefit costs that would be required over the life of these policies. Even with the requested increase, the company noted, its benefit costs would still exceed the minimum 60 percent loss ratio that is required by state law. In fact with the requested increase, the company expects to spend 100 percent of every premium dollar on 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.

If approved, the new rates would be implemented 60 days after the company notifies customers. The average annual premium would rise from $2,075 to $6,340. The company said it would allow policyholders to change their benefits in order mitigate the impact of a higher rate. Under state law, rate increases of more than 20 percent must be implements over three years or more.


Find the filing, brief summary and public comment section here at Health Insurance Rate Filings

Content Last Modified on 3/8/2017 1:50:07 PM