Lincoln National Life Insurance Company – Individual (1991-1996)
Rate request: 30 percent increase
On September 22, 2020 Lincoln National Life Insurance Company requested an increase of 30 percent on a small block of business of individual long-term policies which were sold from 1991 to 1996.
These are no longer being marketed. There are about 45 policies in force in Connecticut.
The company said in its filing that the increase is needed as emerging experience reveals morbidity and policy persistency levels that produce lifetime loss ratios above the minimum required loss ratio.
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 the 30% increase on December 8, 2020. Both nationwide and Connecticut specific experience have inception-to-date loss ratios that significantly exceed the Connecticut statutory minimum lifetime loss ratios.
The company said its policyholders will have options to change or reduce benefits in order to mitigate the impact of an increase. The new rate would take effect 60 days after the company has notified its policyholders. The increase will be phased in over three years to comply with state law.
Find the filing documents here at Long-Term Care Insurance Rate Filing