Rate request: 50 percent increase
Decision: Under Review
Public Comment Period: October 16, 2013 to November 4, 2013
On October 9, 2013, MetLife Insurance Company of CT requested a 50 percent increase on its LTC-031 policy, which was sold from 1992 to 1994 solely in Connecticut and is no longer being marketed. There are 55 policyholders in Connecticut with this product.
The company said in its filing that the increase is needed because over the life of these polices the expected demand for benefits and the higher cost of those benefits exceeds both original pricing expectations and state minimum requirements.
Unlike medical health insurance with premiums set to cover expenses incurred only during the upcoming policy year, long term care premiums are set to cover expenses that are not expected to occur until a distant date, sometimes 20 years in the future.
The company said policyholders will be able to change or reduce benefits in order to mitigate any rate increase. Additionally, the company will allow policyholders a one-time option for a paid-up policy with benefits equal to the total premiums paid less any claims.
If approved, any rate change would take effect on the policyholder’s renewal date.