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

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



Rate request: 21 percent average increase

Decision: Disapproved, limited to a 10% increase on October 17, 2017

On July 6, 2017, John Hancock Life Insurance Company requested an average rate increase of 21 percent on a series of its individual long-term care policies, which were sold from 2012 to 2015. There are approximately 190 policies in force in Connecticut.

The company reported in its filing that the increase is needed because policyholders are living longer and requiring benefits that are more expensive over longer periods of time.

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 it will give policyholders the options of reducing benefits to offset higher premiums.

After an actuarial review, the Department determined that the company’s claims costs are running below expectations and that the data from the small sampling is not credible. As a result, the Department disapproved the initial rate increase request and limited it to a 10 percent increase.


###

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




Content Last Modified on 10/23/2017 4:58:00 PM