John Hancock Life Insurance Company (USA) – Individual (1991-2015)
Rate request: 68.3 percent average increase
Decision: Limited to a 10-50% increase
On May 13, 2020 John Hancock Life Insurance Company requested an average increase of 68.3 percent for several of its individual long-term care plans. The plans were marketed from 1991 to 2015 and are no longer being marketed. There are approximately 7,150 policies currently in effect in Connecticut.
The company said it sought the increase because they anticipate having to pay more claims in the future than previously expected.
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 Actuarial review, the Department approved reduced increases that range from 10-50% that varied by product form on August 7, 2020. Higher increases (40-50%) were approved for forms with significant unfavorable experience and large actual-to-expected ratios. Lower rate increase (10-19.1%) were approved for some unfavorable experience or where projected lifetime loss ratios were expected to significantly exceed the minimum required in Connecticut.
Under Connecticut law, rate increases of 20 percent or more must be phased in over three years or more.
Find the filing documents here at Long-Term Care Insurance Rate Filing