Connecticut OKs LTCI Rate Increases

“The actual and projected claims experience is exceeding original assumptions on MetLife’s TIAA-CREF individual long-term care insurance policies, and a rate increase is warranted in order to ensure that we deliver on our promises to all our insureds,” the representative says.

Metropolitan Life announced in November 2010 that it would no longer sell new long term care (LTC) insurance policies in either the individual or group markets after the end of 2010.

In Connecticut, an insurer asking for permission to increase LTCI rates must show that the higher rates will comply with a requirement that claims payments equal at least 60% of premium payments, Leonardi says in a discussion of his ruling.

Regulators also must look to see whether the increase requested is excessive, inadequate or discriminatory.

The increase appears to be reasonable, adequate and not discriminatory, Leonardi says.

“A concern frequently raised by insureds and the general public is that the applied for increases would not be affordable for the renewing policyholders,” Leonardi says. “Affordability, however, is relative to each person and subjective, and although of overall concern, is not a standard for rate review within the statute or standard actuarial principles.”