RiverSource Life Insurance Company – Individual (2000-2003)
Rate request: 62.2 percent increase
Decision: Disapproved, limited to a 30% increase
On May 8, 2020, RiverSource Life Insurance Company requested a 62.2 percent rate increase for its long-term care plans that provides benefits for nursing home stays and some home care services. The policies were marketed from 2000 to 2003.
There are approximately 600 policies in effect in Connecticut. The company said it is seeking the increase because the current pricing is inadequate to meet the anticipated benefit costs. There is a higher than expected number of policies still in force and more policyholders are expected to draw on those benefits.
After Actuarial review, the Department approved a 30% rate increase on July 6, 2020, to be phased in over 3 years due to Connecticut law. Although the Connecticut experience has yet to reach the required minimum lifetime loss ratio, the historical experience continues to be greater than anticipated for both Connecticut and nationwide experience.
The new rates will take effect 60 days after the company notifies its policyholders.
Find the filing documents here at Long-Term Care Insurance Rate Filing