Monumental Life Insurance Company is asking Connecticut regulators for permission to increase rates on several long-term care insurance (LTCI) plans an average of 20%, and Transamerica Life Insurance Company is asking for permission to raise some LTCI rates an average of 25%
If approved, the Monumental Life rate change would affect 4,607 policies sold from 2001 to 2004 that are no longer being marketed in Connecticut, officials say. The current Monumental Life policy premiums range from about $1,460 to $1,760 per year.
The Transamerica Life change would affect 7,124 policies now in force in Connecticut. Some were sold as far back as 1992, officials say. Transamerica Life is no longer marketing those of policies in Connecticut, officials say. The Transamerica Life policyholders are paying about $1,800 to $2,700 per year for their coverage.
Connecticut recently rejected a rate increase application filed by Mutual of Omaha Insurance Company, Omaha, Neb.
Monumental Life and Transamerica Life both say they need rate increases because their medical loss ratios, or ratios of claim costs to premium revenues, appear to be on track to be higher than expected, and higher than the 60% Connecticut LTCI policy medical loss ratio minimum.
Transamerica Life says it has been hurt by past Connecticut department decisions to reject some earlier LTCI rate increase requests.
Representatives from AEGON were not immediately available to comment on the rate increase applications.