RiverSource Life Insurance Company - Individual (2000-2003)
Rate request: 75 percent increase
Decision: Disapproved, limited to 19.9%
On January 11, 2019, RiverSource Life Insurance Company requested a 75 percent rate increase for its long-term care plans that provides benefits for nursing home stays and some home care services. The policies were marketed from 2000 to 2003.
There are approximately 630 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 less than the lifetime minimum loss ratio of 60%, the experience for both the Connecticut and nationwide blocks of business has been worse than expected and will most likely lead to a lifetime loss ratio in excess of 60%. As a result, the Department disapproved the initial rate increase request and instead limited to a 19.9 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