The Pennsylvania Insurance Department has approved rate increaserequests for certain long-term care policies at four insurers.
The insurance regulator approved a 20% increase for all policiesoffered by Metropolitan Life InsuranceCo. Metropolitan Life had requested an average rate increase of 50%,with hikes ranging from 43% to 60%, depending on the policy, for 6,573 policyholders.
The department approved a 30% increase for Genworth Life Insurance Co.'s policies with lifetime benefits,and a 20% increase for policies with limited benefit periods. Genworth Life hadrequested an average 80% rate increase, with increases ranging from 33% to 130%,depending on the policy, for 27,551 policyholders.
Unum Life InsuranceCo. of America requested an average rate increase of 81%, with increasesranging from 63% to 94%, depending on the policy, for 4,829 policyholders. Unumrequested three 24.8% increases on policies with uncapped 5% compound inflationriders, with the increases implemented one year apart, compounding to a 94% increaseover three years. It also asked for three 17.7% increases on policies with uncapped5% simple inflation riders, compounding to a 63% increase over three years.
The regulator approved the requests as submitted, but directedthe company to implement the increases over four years instead of three, which willresult in four 18% increases on policies with uncapped 5% compound inflation riders,and four 13% increases on policies with uncapped 5% simple inflation riders.
John Hancock LifeInsurance Co. (USA) requested an average 22% increase, with increasesranging from 2.5% to 88%, depending on the policy, for 7,572 policyholders. Thedepartment approved an increase on these policies but capped the increase at 20%.