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

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



Rate request: 95.5 percent increase

Decision: Disapproved, approved lower increase of 15% on January 13, 2016


On December 11, 2015, Continental Casualty Co. requested an increase of 95.5 percent for several of long-term care group plans used by employers for their employees. There are 3,527 policies currently in effect in Connecticut. Continental Casualty said it will continue to accept new plan enrollees until February 1, 2016 after which it will be a closed block of business.

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.

After an actuarial review, the Department determined that the company’s costs on this particular block of business have not yet met the state mandated 65 percent loss ratio threshold. The threshold requires a company to spend at least 65 percent of the revenue from this business on benefits over the lifetime of the policy. However, the Department noted that the company may still incur some higher than expected claims costs in the future and allowed that some rate increase was warranted.

As a result, the Department disapproved the 95.5 percent increase request and instead reduced it to a 15 percent increase.


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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 1/13/2016 12:50:38 PM