Two units of Unum Group Corp. (NYSE:UNM) are asking Connecticut regulators to approve long-term care insurance premium increases.
Provident Life & Accident Company is asking for an average increase of 65 percent on 260 individual LTCI policies sold from 2003 through 2009, according to a rate filing posted on the Connecticut Department of Insurance website.
The company has 23,366 policies of that kind in force throughout the United States.
The policies are no longer actively marketed, but Provident Life issues some policies through conversion features linked to individual disability insurance policies.
The policyholders are now paying an average of about $3,100 per year for coverage.
The unit has its domicile in Tennessee. Tennessee has agreed to let the company phase in an 86.1 percent increase over three years.
The overall incidence of morbidity is only 84 percent of what the company had expected, but claim terminations have also been only 84 percent of what the company had expected, and mortality has been just 61 percent of the expected rate.