Rate request: 256.2 and 381.2 percent increase
Decision: Under review
Public Comment Period: October 16, 2014 to November 4, 2014
On October 10, 2014, Continental General Insurance Company requested a 256.2 percent rate increase for its individual long-term care base policy forms and riders and a 381.2 percent increase on their Inflation Guard Riders’ Percentage Load. Although the Company is requesting the full rate increase amounts, the Company is willing to accept an increase of 25 percent on the Base Policy Forms and Riders, along with an increase of 50 percent on the IGR percentage loads at this time.
The company began selling the plans in Connecticut in 1995 but is longer marketing them. Any rate change would affect renewals only. The renewals are guaranteed, meaning the company cannot refuse to renew a policy.
There are 70 policies currently in effect in Connecticut. The company said it sought the increase because the estimate of benefits to be paid out over the lifetime of the plans is much higher than originally projected. In its filing with the Department, Continental state it expects to spend $1.08 on benefits for every $1 of premium it receives.
The company is offering policyholders a series of options to mitigate the impact of any potential increase, including lowering lifetime benefits and daily benefits and increasing the elimination period.
If approved, the average premium on Continental General policies in Connecticut would rise from $2,621 to $3,276 or approximately $55 more per month.