Transamerica Premier Life Insurance Company (Legacy Individual)
Rate request: 40 percent increase
Decision: Approved on November 26, 2018
On September 20, 2018, the Transamerica Premier Life Insurance Company filed for a 40 percent rate increase on its “Legacy” individual long-term care policies. There are approximately 4,100 of these policies currently in force in Connecticut. The company is no longer marketing this product.
The company says it is seeking the increase because actual claims costs far exceeded projected costs that were calculated when the product was originally priced.
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 the experience on this closed block of business is worse than expected and continues to deteriorate. As a result, the Department agreed that a rate increase is warranted and approved the rate increase request on November 26, 2018.
The company said policyholders will be given the option to offset the increase and lower their premium by reducing their current benefits. Under Connecticut law, long-term care rate increases of 20 percent or higher must be phased in over three years or more.
The new rates will be implemented three months after approval.
Find the filing documents here at Long-Term Care Insurance Rate Filing