Delaware Insurance Commissioner Matt Denn says he has rejected “large rate increases” proposed by several long term care insurance companies.[@@]
Denn also says he will review all rate increases for LTC insurance policies sold in the state in the last 2 years.
Some carriers have recently raised rates “far in excess of what they promised in marketing their products,” Denn said in announcing his investigation.
Delaware law requires LTC insurance policies to declare a maximum annual rate increase to the policy buyer, according to the commissioner. Recently, some companies have asked for increases that were higher than the declared maximum, Denn says.
Penalties for companies that overcharge their policyholders include fines of up to $10,000 for each violation.
Denn says he rejected an application from Penn Treaty- American Life Insurance Company, Allentown, Pa., for increases ranging from 29% to 43% for its Delaware policyholders.
He also turned down a request by AIG Life Insurance Company, New York, for a 25% increase.
In addition, Denn says he has informed Conseco Senior Health Insurance Company, Indianapolis, which has applications pending for LTC insurance rate increases of 10% to 25%, that it should refile with lower proposed rates.
“Our financial analysis shows that these rate increases would be excessive and unjustified given the state of the long term care market and actuarial conditions faced by companies in this area of insurance,” Denn says.