Rate request: 27.4 percent overall average increase
Decision: Under Review
Public Comment Period: October 3, 2014 to October 23, 2014
On September 19, 2014, Genworth Life Insurance requested an overall average increase of 27.4 percent on two its individual policy forms (7000, 7020), which were sold from 1994 to 2003. They are no longer being marketed. There are approximately 600 policies in force in Connecticut.
When broken out, the range of the requested increases are 44% on policies with a lifetime benefit, and 19% on policies with all other benefit periods.
The company said it is seeking the increase because the number of people drawing lifetime benefits is significantly higher than what was initially anticipated when the company first priced the product. The costs to maintain those benefits for the lifetime of the plan are also higher than anticipated.
The company said it will offer its customers several options to change benefits and keep premium costs down near current levels. Additionally, Genworth will comply with a 2014 state law that 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 yearly premium in Connecticut, for the lifetime benefit, would rise from $4,166 to $5,999 or approximately $152 more per month. The average yearly premium for the non-lifetime benefit would rise from $3,048 to $3,627 or approximately $48 more per month. The company also intends to provide customers with a 60-day notice of any approved rate change.