New York Life Insurance Company is asking Connecticut insurance regulators for permission to increase rates on two blocks of long-term care insurance (LTCI) policies.
New York Life would increase rates for 546 holders of Form 5000 policies by an average of 21.1 percent, to $2910
The company would increase rates for 183 holders of Form 4300 LTCI policies by an average of 20.7 percent, to $2,438.
The increases would affect only policyholders younger than 75, the company told regulators.
The rate increases are “needed due to higher than expected policy persistency, including both lower than expected mortality and lower than expected voluntary lapses,” Jeanette Slabaugh, a New York Life senior associate, wrote in the filing cover letters.
Because New York Life is a policyholder-owned mutual insurer, and company policyholders generally get dividends when a product does well, “improvements in the performance of the product could lead to dividends being paid in the future.” Slabaugh wrote.
New York Life began selling the Form 4300 policies in 1997 and ended sales of the policies in 2004.
The company has a total of 39,673 Form 4300 policies in force throughout the United States. The policies generate an average of $1,500 in annual premium revenue.
The company began selling the other policies affected, the Form 5000 policies, in 2002, and it is still selling those policies.
The actual increases on the prices of the Form 5000 policies would be 25.1 percent for policyholders ages 50 and over and 40 percent for holders younger than 50.
New York Life has a total of 76,608 Form 5000 policies in force throughout the country. The policies generate an average of annual premium of about $1,766.