(LHP photo)

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.

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