CID: Long-Term Care Rate Filing - Genworth Life Insurance Company - Individual (Pre-PCS)

Long-Term Care Rate Filing - Genworth Life Insurance Company - Individual (Pre-PCS)

Rate request: 71 percent increase

Decision: Approved increase of 35.0% on November 28, 2017

On October 10, 2017 Genworth Life Insurance requested a rate increase of 71.0 percent on its Pre-PCS individual long-term care policies that were sold in Connecticut from 1988 to 1998. They are no longer being marketed. The rate increase reflected the company’s request to raise premiums on policies with lifetime benefits by 71 percent and no increase on other policies.

There are approximately 300 policies in force in Connecticut.

The company said the rate increase is needed because the benefit costs far exceed what the company had originally projected when it originally priced these products. Genworth says it has been paying benefit costs longer than expected and there are more policies in effect that what the company had anticipated.

After an actuarial review, the Department determined that the company’s claims cost are exceeding the projections it made when the product was originally priced. However, the Department determined the 71 percent increase on policies with lifetime benefits was excessive and disapproved it on November 28, 2017 and limited the increase to 35 percent.

The company said it will offer its customers several options to change benefits and keep premium costs. The new rates will be implemented 60 days after policyholders have been notified.

Under Connecticut law, long-term care premium increases of 20 percent or more must be phased in over three years or longer.


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

Content Last Modified on 11/28/2017 2:52:47 PM