RiverSource Life Insurance Company – Individual Nursing-Home (1997-2002)
Rate request: 66.9 percent increase
Decision: Disapproved, limited to a 10% increase
On May 8, 2019, RiverSource Life Insurance Company requested a 66.9 percent rate increase for its long-term care plans that provides a daily benefit to individuals in nursing homes. The policies were marketed from 1997 to 2002.
There are approximately 50 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.
In an effort to mitigate the impact of any potential increase, the company will offer its policyholders the option of reducing benefits or maintaining the premium level similar to what they were paying.
After Actuarial Review, the Department approved a 10% increase on June 26, 2020. The Connecticut experience has been better than anticipated, but it is not credible and the nationwide experience has been worse than anticipated. The Connecticut block also still needs to meet the minimum lifetime loss ratio.
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