Genworth Life Insurance Company - Individual (Choice Round 5)
Rate request: 34.5 percent increase
Decision: Disapproved, limited to a 15% increase on November 26, 2018
On October 12, 2018 Genworth Life Insurance requested an average rate increase of 34.5 percent on its Choice_Round 5 long-term care policies sold to individuals in Connecticut from 2002 to 2005. These policies are no longer being marketed.
There approximately 4,600 policies in force in Connecticut.
The company said the rate increase is needed because more policyholders than originally assumed are claiming benefits and the premiums are not sufficient to offset those expected higher claims costs.
The company said it will offer its customers several options to change benefits and keep premium costs.
After an actuarial review, the Department determined that the Connecticut experience, while worse than expected, is slightly better than the company’s nationwide block of business but that some rate increase is warranted. As a result, the Department disapproved the initial rate increase request and limited it to an average increase of 15 percent on November 26, 2018.
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