Transamerica Premier Life Insurance Company – Group (NEA)
Rate request: 40 percent increase
Decision: Disapproved, limited to 15%
On August 03, 2020, the Transamerica Life Insurance Company filed for a 40 percent rate increase on its NEA group series long-term care policies. There are approximately 393 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 Actuarial Review, the Department approved a reduced 15% increase. This reflects the actual experience is above expected experience in total historically, but also reflects recent improvement, future increases still to be implemented and the block still needs to meet the 65% minimum over its lifetime.
The company said policyholders will be given the option to offset the increase and lower their premium by reducing their current benefits.
The new rates would be implemented three months after approval.
Find the filing documents here at Long-Term Care Insurance Rate Filing