CID: Long-Term Care Rate Filing - Genworth Life Insurance Company - Individual (7000, 7020 series)

Long-Term Care Rate Filing - Genworth Life Insurance Company - Individual (7000, 7020 series)



Rate request: 51.5 percent average increase

Decision: Disapproved, limited to 41% increase on November 28, 2017

On October 10, 2017 Genworth Life Insurance requested an average rate increase of 51.5 percent on a series of individual long-term care policies that were sold in Connecticut from 1994 to 2003. They are no longer being marketed. The average rate increase reflected the company’s request to raise premiums on policies with lifetime benefits by 72 percent and all other policies, 41 percent.

There are about 480 policies in force in Connecticut.

The company said the rate increase is needed because the benefit costs far exceed what the company had originally projected when it originally priced these products. Genworth says it has been paying benefit costs longer than expected and there are more policies in effect that what the company had anticipated.

After an actuarial review, the Department determined that the company’s claims cost are exceeding the projections it made when the product was originally priced. The Department determined the 72 percent increase on policies with lifetime benefits was not appropriate and disapproved it, but did approve the 41 percent request on all other policies on November 28, 2017.

The company said it will offer its customers several options to change benefits and keep premium costs. The new rates will be implemented 60 days after policyholders have been notified.

Under Connecticut law, long-term care premium increases of 20 percent or more must be phased in over three years or longer.


###

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


Content Last Modified on 11/28/2017 2:41:47 PM