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

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

Rate request: 69.3 percent increase

Decision: Disapproved, limited to a 10% increase on October 2, 2017

On June 22, 2017, Continental Casualty Co. requested an increase of 69.3 percent for its group long-term care policies.

The policies were sold in Connecticut from 1988 to 2011 and are no longer being marketed. There are approximately 3,120 policies currently in effect in the state.

The company said it sought the increase because the original pricing does not support the higher than projected benefit costs that would be required over the life of these policies. Even with the requested increase, the company noted, its benefit costs would still exceed the minimum 60 percent loss ratio that is required by state law.

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 claims costs for this block of business are running somewhat lower than expected. However, the calculations indicate that experience would worsen and claims costs would increase over time. As a result, the Department disapproved the initial rate increase request on October 2, 2017 and limited it to a 10 percent increase.


Find the filing documents here at Long-Term Care Insurance Rate Filing

Content Last Modified on 10/2/2017 10:31:04 AM