RiverSource Life Insurance Company - Individual Nursing Home (1989-1993)
Rate request: 13.3 percent increase
On January 11, 2019, RiverSource Life Insurance Company requested a 13.3 percent rate increase for its long-term care plans that provides benefits for nursing home care. The form was sold from 1989 to 1993 and is no longer being marketed. Any rate change would affect renewals only. The renewals are guaranteed, meaning the company cannot refuse to renew a policy.
There are just under 200 policies in effect in Connecticut. The company said it is seeking the increase because the current pricing is inadequate to meet the anticipated benefit costs. There is a higher than expected number of policies still in force and more policyholders are expected to draw on those benefits.
After an actuarial review, the Department determined that the inception-to-date loss ratios are worse than expected in Connecticut and nationwide and both are already higher than the minimum lifetime loss ratio of 60%. As a result, the Department approved the initial rate increase request on April 3, 2019.
The new rates would take effect 60 days after the company notifies its policyholders.
Find the filing documents here at Long-Term Care Insurance Rate Filing