RiverSource Life Insurance Company – Individual Nursing-Home (1993-1999)
Rate request: 55.6 percent increase
Decision: Disapproved, limited to a 40% increase
On May 11, 2020, RiverSource Life Insurance Company requested a 55.6 percent rate increase for its long-term care federally tax-qualified plans that provide a daily benefit to individuals in nursing homes. The policies were marketed from 1993 to 1999.
There are approximately 1,150 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 40% rate increase on July 6, 2020, to be phased in over 3 years due to Connecticut law. Although the most recent experience has shown improvement, the historical experience has already exceeded the Connecticut minimum and continues to be greater than anticipated.
The new rates would take effect 60 days after the company notifies its policyholders.
Find the filing documents here at Long-Term Care Insurance Rate Filing