CID: Long-Term Care Rate Filing - RiverSource Life Insurance Company (Individual-Nursing Home 1989-1993)

Long-Term Care Rate Filing - RiverSource Life Insurance Company (Individual-Nursing Home 1989-1993)

Rate request: 15 percent increase

Decision: Approved on October 17, 2017

On July 18, 2017, RiverSource Life Insurance Company requested a 15 percent rate increase for its long-term care plans that provides benefits for nursing home care. The form was sold from 1989 to 1993 and is no longer being marketed. Any rate change would affect renewals only. The renewals are guaranteed, meaning the company cannot refuse to renew a policy.

There are approximately 220 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 much higher than expected and is spending approximately $1.13 of every premium dollar on benefits. That is well above the statutory loss ratio minimum of 60 percent, or 60 cents for every premium dollar. As a result, the Department approved request on October 17, 2017.

The average annual premium in Connecticut would rise from $2,012 to 2,315 or approximately $25 more per month.


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

Content Last Modified on 10/23/2017 5:09:10 PM