Close Close
Sign In
Newsletters
Popular Financial Topics Discover relevant content from across the suite of ALM legal publications From the Industry More content from ThinkAdvisor and select sponsors Investment Advisor Issue Gallery Read digital editions of Investment Advisor Magazine Tax Facts Get clear, current, and reliable answers to pressing tax questions
Luminaries Awards
Podcast Center Video Center Webcasts Resource Center Events
About ThinkAdvisor Contact Us Advertise With Us Asset & Logo Licensing Sitemap Terms of Service Privacy Policy Copyright © 2024 ALM Global, LLC. All Rights Reserved.
ThinkAdvisor

Life Health > Health Insurance > Health Insurance

Connecticut rules on RiverSource LTCI rate changes

By Allison Bell

X
Your article was successfully shared with the contacts you provided.

The Connecticut Insurance Department has posted decisions on a batch of four individual long-term care insurance (LTCI) rate increase applications filed by RiverSource Life Insurance Company.

RiverSource, a unit of Ameriprise Financial Inc., asked Connecticut for permission to increase rates by 20 percent on 721 LTCI policies sold from 2000 through 2003.

Regulators rejected that request, contending that, so far, the claims experience for the policies have been lower than expected at both the state and national level.

Regulators cut a 20 percent increase request down to 10 percent for a block of 1,552 policies sold from 1993 to 1999.

Regulators said they think a 20 percent increase would be excessive but that, without an increase, the loss ratio for the policies could potentially exceed 100 percent. 

The regulators approved a third 20 percent increase, for 809 policies sold from 1998 through 2000, and a 21.4 percent increase, for 314 policies sold from 1989 through 1993.

For both of those blocks, the company’s claims experience far exceeded the projections made when the products were priced, officials said.

“The experience was significantly higher for both the Connecticut and nationwide markets,” officials said.

Representatives from Ameriprise were not available to comment on the rate rulings.

See also:

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.