RiverSource Life Insurance Company - Individual Nursing Home (1993-1999)
Rate request: 70.9 percent increase
Decision: Disapproved, limited to a 15%
On January 11, 2019, RiverSource Life Insurance Company requested a 70.9 percent rate increase for its long-term care federally tax-qualified plans that provide a daily benefit to individuals in nursing homes. The policies were marketed from 1993 to 1999.
There are approximately 1,200 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 although the recent experience for both Connecticut and nationwide has stabilized, the inception-to-date loss ratios are still worse than expected and both exceed the minimum lifetime loss ratio minimum of 60%. As a result, the Department disapproved the initial rate increase request and instead limited to a 15 percent increase on April 3, 2019.
The new rates will take effect 60 days after the company notifies its policyholders.
Find the filing documents here at Long-Term Care Insurance Rate Filing