CID: Long-Term Care Rate Filing - RiverSource Life Insurance Company (Individual)

Long-Term Care Rate Filing - RiverSource Life Insurance Company (Individual)

Rate request: 19.6 percent increase

Decision: Approved on October 17, 2017

On July 18, 2017, RiverSource Life Insurance Company requested a 19.6 percent rate increase for its federally tax qualified long-term care plans that provides benefits for nursing home stays and some home care. The policies were marketed from 1998 to 2000.

There are just under 700 policies in effect in Connecticut. The company said it is seeking the increase because the current pricing is inadequate to meet the anticipated benefit costs. There is a higher than expected number of policies still in force and more policyholders are expected to draw on those benefits.

In an effort to mitigate the impact of any potential increase, the company will offer its policyholders the option of reducing benefits or maintaining the premium level similar to what they were paying.

After an actuarial review, the Department determined that the company’s claims costs are running nearly 70 percent higher to date than what was expected when the product was first priced. As a result, the Department approved the rate request on October 17, 2017.

The average annual premium in Connecticut would rise from $3,205 to $3,833 or approximately $52 more per month.


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

Content Last Modified on 10/23/2017 5:28:02 PM