Unum Life Insurance Company of America – Group (1997 to 2004)


Rate request: 299.0 percent average increase

Decision: Disapproved, limited to 50% increase

On June 24, 2019 Unum Life Insurance Company of America requested an average increase of 299.0 percent on a block of business of group long-term care, mostly Partnership, policies which were sold from 1997 to 2004.

These are no longer being marketed. There are about 1,285 policies in force in Connecticut.

The company said in its filing that the increase is needed due to emerging and projected experience running more adverse than previously expected.

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, it was determined that both the Connecticut and nationwide experience is worse than anticipated. Both nationwide and Connecticut specific blocks still need to meet a minimum 65% loss ratio over the lifetime of the policy forms. A 50% increase was approved on October 21, 2019, phased in over three years.

The new rate will take effect 60 days after the company has notified its policyholders.

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Find the filing documents here at Long-Term Care Insurance Rate Filing