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Rate Request – 75 percent increase

Decision – Reduced to an icrease of 30%

 

On July 13, 2012, UNUM Life Insurance Company requested an overall rate increase of 75 percent for several of its group long-term care plans. These are plans are no longer being marketed in Connecticut. There are 2,053 certificate holders currently in force in Connecticut that would be affected by this rate change. If approved, the new rates would be implemented in early 2013. These forms have not been actively marketed since 2004, but new employees may be added to the existing in-force group policies.

 

There have been no previous rate revisions for these policies. The projected lifetime loss ratio, with and without the rate increase request exceeds the required 65% lifetime loss ratio for group long term care business in Connecticut.

 

On November 2, 2012, the Department disapproved the requested increase of 75%, but approved a smaller increase of 30%. The actuarial analysis showed that while experience in Connecticut has improved the last three years, the inception-to-date experience has been significantly worse than expected. The approved rate increase of 30% is not excessive, inadequate or unfairly discriminatory.