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

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



Rate request: 101.6 percent average increase

Decision: Disapproved, limited to a 15% increase on February 4, 2016


On January 4, 2016, Continental Casualty Co. requested an average increase of 101.6 percent for its individual long-term care policies.

The policies were sold in Connecticut from 1999 to 2003 and are no longer being marketed. There are just under 900 policies currently in effect in the state.

The company said it sought the increase because of the much higher than projected benefit costs that would be required over the life of these policies. The company said that its performance on this particular product nationwide “has deteriorated significantly.”

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. Under Connecticut state law, premium increases of more than 20 percent must be phased in over a three year period.

After an actuarial review, the Department determined that the company’s Connecticut business has deteriorated but has still performed better over the last two years than Continental block of business in the rest of the nation. As a result, the Department disapproved the request as submitted on February 4, 2016 but did allow that some rate increase was warranted an approved an increase of 15 percent.

The company said it will allow policyholders to change their benefits in order mitigate the impact of a higher rate. The new rate will take effect after 60-day notification period to policyholders.


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Find the filing, brief summary and public comment section here at Long-Term Care Insurance Rate Filing


Content Last Modified on 2/4/2016 4:06:18 PM