Transamerica Premier Life Insurance Company – Individual (Legacy)
Rate request: 40 percent increase
On October 07, 2019, the Transamerica Premier Life Insurance Company filed for a 40 percent rate increase on its “Legacy” individual long-term care policies. There are approximately 3,900 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 while this closed block of business will still need to meet the statutory minimum loss ratio requirement of 60% over the lifetime of the policy, actual experience has been much worse than anticipated and is expected to continue to deteriorate, along with the lifetime loss ratio, over time. The rate increase request was approved on December 18, 2019 and will be implemented over three years, at 13.5% per year.
The new rates would be implemented three months after approval.
Find the filing documents here at Long-Term Care Insurance Rate Filing