Rate request: 25 percent average increase
Decision: Disapproved on September 12, 2014
On May 20, 2014, Allianz Life Insurance Co. of North America requested an average increase of 25 percent for its long-term care plans sold under the Allianz Future Select Plus and Future Choice policies. The plans were sold from 2000 to 2004 and no longer being marketed after the company stopped issuing all long-term care insurance in 2010.
There are approximately 11 policies currently in effect in Connecticut.
The company said it sought the increase because the performance of these policies past and projected future is very poor and a premium increase of over 180 % is theoretically justified if targeting the original pricing lifetime loss ratio. However, the company stated that it prefers not to ask for a rate of increase of this magnitude.
After an actuarial review, the Department determined that the company actually has better than expected claims experience for its national business and has even better performance in its Connecticut market. As a result, the Department disapproved the rate request on September 12, 2014, ruling that the current rates are neither excessive, inadequate or unfairly discriminatory.