Long-Term Care Rate Filing - Berkshire Life Insurance Company of America (Individual)

Rate request: 25 percent increase

Decision: Disapproved, limited to a 10% increase on December 21, 2018

On November 19, 2018 Berkshire Life Insurance Company of America requested an average increase of 25 percent for several of its individual long-term care plans. The plans were marketed from 2005 to 2009 and are no longer being marketed. There are approximately 80 policies currently in effect in Connecticut.

The company said it sought the increase because more policies are in force that originally anticipated and that is resulting in higher than expected claims costs and loss ratios. The current premiums are inadequate to meet those costs over the lifetime of the policies.

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 although small Connecticut block of business is doing worse than expected, the performance was driven by one unfavorable year. Moreover, the company’s nationwide experience has been better than expected. As a result, the Department disapproved the initial rate increase request on December 21, 2018, and, instead, limited it to a 10 percent increase.

The new rates will be implemented 60 days after the company notified its customers.


Find the filing documents here at Long-Term Care Insurance Rate Filing