CID: Long-Term Care Rate Filing - Union Security Insurance Company (Individual)

Long-Term Care Rate Filing - Union Security Insurance Company (Individual)



Rate request: 195.4 percent average increase

Decision: Disapproved as submitted, approved 15% increase on January 6, 2015

 
On October 8, 2014, Union Security Insurance requested an average increase of 192 percent increase on certain individual long-term care insurance policies. The policies were initially offered in 1998 and are no longer being actively marketed.

There are approximately 500 policies in force in Connecticut.

The company said it sought the increase because the number of people expected to draw lifetime benefits on a nationwide basis is significantly higher than what was initially anticipated when the company first priced the product. The company also factored in the increase in the cost of benefits since the product had originally been priced and said the cost to maintain those benefits for the lifetime of the plan is higher than anticipated.

After an actuarial review, the Department determined that this particular block of business was performing worse than expected and that a rate increase was warranted. However, the Department also noted that the company failed to entirely take into account the effects of a previous rate increases. As a result, the Department disapproved the initial increase request of 195.4 percent and instead approved a significantly lower rate increase of 15 percent on Jan. 6, 2015.

Union Security said it will work with its customers to make benefit and other changes to mitigate the impact of any premium 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 1/6/2015 1:24:53 PM