Mutual of Omaha Insurance Company has asked the Connecticut Insurance Department for permission to increase rates on several long-term care insurance (LTCI) plans by an average of 32.7%, officials say.
The Connecticut department has posted information about the application on its website.
Connecticut regulators rejected an earlier request for a 32.7% increase that Mutual of Omaha filed in September 2011.
Mutual of Omaha began selling LTCI coverage in 1987, and it issued the policies that would be affected by the increases before 2004.
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Mutual of Omaha has 40,497 LTCI policies written on 8 different forms in force throughout the United States, and those policies generate about $76 million in annualized premium revenue, according to the increase application.
Lapse rates for policyholders with issue ages under 80 have been lower than expected, but lapse rates for policyholders with issue ages 80 to 84 are higher than Mutual of Omaha had priced for, and lapse rates for policyholders with issue ages of 80 to 84 who have had policies in effect for 9 years or longer are 210% of what the company had priced for, the company says in the increase application.