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August 25, 2022 at 12:24 PM
What You Need to Know
- Harry Seiden bought his long-term care insurance policy in 2003.
- He notes that the policy did not warn him that he or his policy were part of a class.
- A lawyer for Prudential contends that the filed rate doctrine bars suits challenging approved rates.
A Delray Beach, Florida, resident has filed a lawsuit raising questions about what a long-term care insurance issuer has to do to make an LTCI rate increase apply to a specific LTCI policy.
In the lawsuit, Florida resident Henry Seiden is asking the courts to protect him from a series of three LTCI rate increases imposed by The Prudential Insurance Company of America. The increases would raise his premiums by a total of 100% over three years.
Seiden argues that his policy was not part of the class of LTCI policies involved in the rate hike, and that Prudential has not added the rate hike agreement with the Florida Office of Insurance Regulation to his policy.
Angel Cortiñas, a lawyer for Prudential — a subsidiary of Prudential Financial — asked the court to dismiss the Seiden suit because the filed rate doctrine blocks Florida insureds from suing over premiums approved by Florida insurance regulators; because Seiden’s policy is clearly part of the class of policies affected by the rate hike; and because a policy provision lets Prudential increase the policy premiums.
Seiden and representatives for Prudential did not respond to requests for comments about the case.
The Policy
Seiden, a lawyer, bought his Prudential LTCI policy in 2003, then accepted an inflation protection benefit increase offer in 2009.
An exhibit shows that he had a policy based on form GRP 98516, with lifetime benefits, 5% compound annual inflation protection and a 0-day benefits elimination period.
The original premium amount was $5,318.09 per year. Adding the inflation protection increased the price to $5,812.72 per year.
Prudential told him about an increase of about 25% in 2017. That increased the annual cost for the coverage to $8,937.14, from $7,149.66.
In 2021, Prudential told Seiden that it would implement three 26% increases, starting in June 2021, with the increases pushing the annual cost of the premiums up to $18,877.74 in June 2023. The three increases compounded annually, and they led to the amount of the total annual premium doubling.
The Suit
Seiden is representing himself in the suit against Prudential.
He originally filed a complaint objecting to the rate increase in a state court in Palm Beach County, Florida, in April.
Prudential succeeded in getting jurisdiction of the case, Seiden v. Prudential (Case Number 22-cv-81271) moved to the West Palm Beach Division of the U.S. District Court for the Southern District of Florida.
