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October 21, 2014 at 03:30 AM
The Connecticut Insurance Department is reviewing three applications for big rate increases on individual long-term care insurance (LTCI) policies.
Continental General Insurance Company is asking for an average increase of 256.2 percent on its base LTCI policy forms and riders, and a 381.2 percent increase on the inflation protection riders’ percentage load. Great American Insurance Group, the parent of Continental General, says it will accept an increase of 25 percent on the base policy forms and riders, and a 50 percent increase on the inflation protection riders at this time.
Continental General sold the policies starting in 1995 and later discontinued them. The policies now cover 70 people in Connecticut and 7,178 people throughout the country.
If Connecticut approved the full increases requested there, the average premium in Connecticut would increase to $3,276 per year, from $2,621.
John Hancock, a unit of Manulife Financial Corp. (TSX:MFC), is asking for an average increase of 182 percent for about 200 policies sold in Connecticut by Time Insurance Company. John Hancock has assumed responsibility for the policies through a reinsurance arrangement with Time’s former parent, Fortis.
Time started selling the policies in 1997 and stopped marketing them in 1999.
