CID: Long-Term Care Rate Filing - Principal Life Insurance Company (Group)

Long-Term Care Rate Filing - Principal Life Insurance Company (Group)

Rate Filing Review: 103 percent increase
Decision: Under Review
Public Comment Period: November 16, 2017 to December 5, 2017

On November 7, 2017, Principal Life Insurance Co. requested an average increase of 103 percent for its group long-term care plans. The plans were first issued from 1990 to 1995 but are no longer being marketed. There are under 10 policies in effect in Connecticut.

The company said it sought the increase because the claims costs have greatly exceeded what was anticipated when the product was originally priced and emerging experience continues to deteriorate.

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 would offer its policyholders benefit options in order to mitigate the impact of a rate increase. Under Connecticut law, increases of 20 percent or more must be phased in over three years.

Find the filing, brief summary and public comment section here at All Current Rate Filings

Content Last Modified on 11/15/2017 1:56:09 PM