CID: Long-Term Care Rate Filing - Bankers Life & Casualty Co. (Individual: 2002-2005)

Long-Term Care Rate Filing - Bankers Life & Casualty Co. (Individual: 2002-2005)

Rate request: 35 percent increase

Decision: Disapproved, limited to a 15% increase December 17, 2018

On October 31, 2018 Bankers Life & Casualty Co. requested an average increase of 35 percent for several of its individual long-term care plans. The plans were marketed from 2002 to 2005 and are no longer being marketed. There are approximately 300 policies currently in effect in Connecticut.

The company said it sought the increase because of significantly higher than anticipated future and lifetime loss ratios. The company said that it is the result higher than expected claim costs, resulting in inadequate premium rates over the lifetime of the policy forms.

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.

After an actuarial review, the Department determined that while the experience on the small Connecticut block of business is worse than expected, the experience on the company’s policies nationwide is better than expected. As a result, the Department disapproved the initial rate increase request and, instead, limited it a 15 percent increase on December 17, 2018.

The new rates will be implemented 30 days after the company notified its customers.


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

Content Last Modified on 12/17/2018 3:12:25 PM