Rate request: 39 percent increase
Decision: Under Review
Public Comment Period: October 3, 2014 to October 23, 2014
On September 19, 2014, Genworth Life Insurance requested a rate increase of 39 percent on its Pre-PCS individual long-term care policies with lifetime benefits. These individual policies were sold from 1988 to 1998 and are no longer being marketed. There are approximately 1,100 policies in force in Connecticut.
Genworth is not seeking any rate increase on Pre-PCS policies with non-lifetime or limited benefits.
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 policies with lifetime benefits would rise from $1,829 to $2,543 or approximately $60 more per month. The company also intends to provide customers with a 60-day notice of any approved rate change.