Brighthouse Life Insurance Company – Individual (1998-2001)
Rate request: 45.2 percent increase
On April 12, 2019 Brighthouse Insurance Company requested an increase of 45.2 percent on a block of business of tax-qualified individual facility only long-term policies which were sold from 1998 to 2001.
These are no longer being marketed. There are about 11 policies in force in Connecticut.
The company said in its filing that the increase is needed due to morbidity and persistency levels which produce lifetime loss ratios in excess of original pricing and the minimum requirement.
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 the experience on this closed block of business is worse than expected and as a result, the Department agreed that a rate increase is warranted and approved the rate increase request on June 20, 2019.
The new rates will take effect 60 days after the company notifies policyholders. Connecticut law requires that any increase 20 percent or higher be phased in over three years or more.
Find the filing documents here at Long-Term Care Insurance Rate Filing