Genworth Life Insurance Company – Individual (2004-2012)
Rate Request: 39.9 percent increase
Decision: Under Review
Public Comment Period: Will remain open until filing is closed
On October 7, 2019 Genworth Life Insurance requested a rate increase of 39.9 percent on Choice 2, Classic Select and Privileged Choice long-term care policies sold to individuals in Connecticut from 2004 to 2012. These policies are no longer being marketed.
There approximately 9,400 policies in force in Connecticut.
The company said the rate increase is needed because experience has been unfavorable and has had a negative impact on lifetime loss ratios. Persistency, claim incidence, claim continuance and benefit utilization rates have emerged higher than expected. 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 to keep premium at previous levels.
If approved the new rates will be implemented at least 60 days after the company notifies its policyholders of a price change. Under Connecticut law, long-term care premium increases of 20 percent or more must be phased in over three years or longer.