CID: Long-Term Care Rate Filing - RiverSource Life Insurance Company (Individual: 1993-1999)

Long-Term Care Rate Filing - RiverSource Life Insurance Company (Individual: 1993-1999)

Rate request: 19.9 percent increase

Decision: Approved on October 17, 2017

On July 18, 2017, RiverSource Life Insurance Company requested a 19.9 percent rate increase for long-term care plans that provides a daily benefit for nursing home stays. Hospital confinements are not a perquisite for benefit entitlement. The policies were marketed from 1993 to 1999.

There are about 1,300 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 about 44 percent higher than what was assumed when the product was first priced. As a result, the Department approved the request on October 17, 2017.

The average annual premium in Connecticut would rise from $1,856 to $2,224 or approximately $30 more per month.


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

Content Last Modified on 10/23/2017 5:27:31 PM