Genworth Life Insurance Company – Individual (Choice I)
Rate request: 60.9 average percent increase
Decision: Disapproved, limited to 10-15%
On November 9, 2020 Genworth Life Insurance requested an average rate increase of 60.9 percent on its Choice I long-term care policies sold to individuals in Connecticut from 2002 to 2005. These policies are no longer being marketed.
There approximately 4,500 policies in force in Connecticut.
The company said the rate increase is needed because as experience has emerged, it has continued to unfold unfavorably and the continued need for premium increases to offset those expected higher claims costs.
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.
Upon Actuarial review, the Department disapproved the full rate increase request but limited it to a 10% and 15% increase for limited and lifetime benefits respectively on February 24, 2021. Although the experience has been unfavorable relative to anticipated levels, the Connecticut historical experience has been better than nationwide, has been improving in the most recent years and does not yet reflect a recent rate increase.
The company said it will offer its customers several options to change benefits and keep premium costs.
The new rates will be implemented at least 60 days after the company notifies its policyholders of a price change.
Find the filing documents here at Long-Term Care Insurance Rate Filing