RiverSource Life Insurance Company - Individual Nursing Home (1997-2002)
Rate request: 70.4 percent increase
Decision: Disapproved, limited to 10%
On January 11, 2019, RiverSource Life Insurance Company requested a 70.4 percent rate increase for its long-term care plans that provides a daily benefit to individuals in nursing homes. The policies were marketed from 1997 to 2002.
There are approximately 50 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 inception-to-date loss ratios are better than expected in Connecticut, the experience for the nationwide block of business is more credible and has been higher than anticipated. The Connecticut block will still need to meet the minimum loss ratio of 60% though. As a result, the Department disapproved the initial rate increase request and instead limited to a 10 percent increase 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