CID: Long-Term Care Rate Filing - Mutual of Omaha Insurance Company (Individual)

Long-Term Care Rate Filing - Mutual of Omaha Insurance Company (Individual)

Rate request: 51 percent

Decision: Disapproved, limited to a 15% increase on October 23, 2017

On August 4, 2017, Mutual Omaha Insurance Company requested a 51 percent increase on a small block of business of individual long-term policies sold from 1997 to 2004. There are approximately 280 policies in force in Connecticut.

The company said in its filing that the increase is needed because of higher anticipated claims cost due to more policies in effect than expected, people are living longer and benefits will be paid over a longer period 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 its policyholders will have options to change or reduce benefits in order to mitigate the impact of an increase.

After an actuarial review, the Department determined that while the experience on the Connecticut block of business is deteriorating, the company’s claims costs to date are running lower than expected. As a result, the Department disapproved the initial rate increase request and limited it to a 15 percent increase on October 23, 2017.


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

Content Last Modified on 10/23/2017 5:32:33 PM