CID: Long-Term Care Rate Filing - Allianz Life Insurance Company of North America (Individual)

Long-Term Care Rate Filing - Allianz Life Insurance Company of North America (Individual)



Rate request: 39 percent

Decision: Disapproved December 11, 2015


On Oct. 16, 2015, Allianz Insurance Company of North America requested a 39 percent increase on a block of business of individual long-term policies which were sold from 2003 to 2009.

These are no longer being marketed. There are approximately 375 policies in force in Connecticut.

The company said in its filing that the increase was needed because there are more policies in effect than expected and people are living longer. As a result, claims will be paid out over a longer period of time than anticipated. Connecticut law requires a company to spend at least 60 percent of premium received on benefits over the lifetime of the policy, a factor known as the “loss ratio.” Allianz said even without the proposed increase, the loss ratio is projected to be more than 100 percent over the life of the policy, meaning it would be paying out more than it is taking in.

After an actuarial review, the Department determined that this block of business is performing better than the company had expected. As a result, the Department ruled that no increase was needed at this time and disapproved the request on December 11, 2015.


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Find the filing, brief summary and public comment section here at Long-Term Care Insurance Rate Filing




Content Last Modified on 12/14/2015 12:28:48 PM