United of Omaha Life Insurance Company – (2006 to 2009)
Rate request: 45.2 percent increase
Decision: Disapproved, limited to an 18% increase
On May 08, 2019, United of Omaha Life Insurance Company requested an average 45.2% percent increase over a two year period on a block of business of individual long-term policies sold from 2006 to 2009 and are no longer being marketed. There are approximately 18 policies in force in Connecticut.
The company said in its filing that the increase is needed because of higher anticipated future and lifetime loss ratios, due to updated morbidity assumptions resulting in higher claim costs.
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 that the nationwide experience on this closed block of business is worse than expected and as a result, the Department agreed that an 18% rate increase is warranted and approved the smaller rate increase on June 25, 2019.
The new rates will take effect once policyholders have been notified and all state requirements have been met.
Find the filing documents here at Long-Term Care Insurance Rate Filing