Officials at the Connecticut Insurance Department are letting a state insurance company guaranty fund increase a failed long-term care insurance (LTCI) issuer’s premiums an average of 69%.
The department earlier this week approved the full rate increase requested by the Connecticut Life & Health Guaranty Association for American Network Insurance Company.
American Network is an affiliate of another insolvent LTCI issuer, Penn Treaty.
American Network issued the 531 Connecticut policies affected by the rate increase, through agents, from 1998 through 2008.
A copy of the approval announcement is available here.
A copy of the original application, which was filed in May, and is 587 pages long, is available here.
Guaranty fund representatives told regulators in May that claim experience at American Network and Penn Treaty could justify a 635% rate increases.