Rate request: 80 percent increase
Decision: Under Review
Public Comment Period: October 29, 2014 through November 17, 2014
On October 15, 2014, Continental Casualty Insurance requested an 80 percent rate increase for its long-term care plans. The plans were sold from March 1999 through June 2003 and are no longer being marketed. Any rate change would affect renewals only. The renewals are guaranteed, meaning the company cannot refuse to renew a policy.
There are 918 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 higher than originally projected. There have been no rate changes to date on this block of business in Connecticut.
The company said it would work with policyholders to change or reduce benefits in order to mitigate the impact of any premium increase. Additionally, a 2014 state law requires all long-term care rate increases over 20 percent to be spread over three years to mitigate the impact to the policyholder.
If approved, the average premium on Continental Casualty policies in Connecticut would rise from $2,094 to $3,770 or approximately $140 more per month.