The Connecticut Insurance Department has limited increases on four blocks of long-term care insurance (LTCI) business issued by Genworth Life Insurance Company to 40 percent.
State regulators also have rejected a proposed rate increase that would have affected a fifth block of Genworth Life LTCI business.
Genworth Life, a unit of Genworth Financial Inc. (NYSE:GNW), sold the policies in the blocks subject to the rate increases to about 12,000 Connecticut residents from 1988 through 2005. The company sold the 1,460 policies in the fifth block from 1999 to 2012.
Like many other LTCI issuers, Genworth has argued that it must increase LTCI rates because claims experience has been much worse than it originally expected.
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Paul Lombardo, a Connecticut department insurance actuary, concluded that Genworth experience figures support some of the increase requests.