Rate request: 22.5 overall average percent increase
Decision: Under Review
Public Comment Period: October 3, 2014 to October 23, 2014
On September 19, 2014, Genworth Life Insurance requested an average increase of 22.5 percent on three of its policies (7030, 7032, 7033). These individual policies were sold from 1998 to 2003 and are no longer being marketed. There are approximately 4,700 policies in force in Connecticut.
When broken out, the range of the requested increases are 32 percent on policies with a lifetime benefit, and 19 percent on policies with all other benefit periods.
The company said it needs to raise rates 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 the rate increase is approved, the average yearly premium in Connecticut, for the lifetime benefit, would rise from $3,755 to $4,956 or approximately $100 more per month. The average yearly premium for the non-lifetime benefit would rise from $2,923 to $3,505 or approximately $49 more per month. The company also intends to provide customers with a 60-day notice of any approved rate change.