On November 30, 2022, American General Insurance Company requested an increase of 40% on a small block of individual long-term policies, which were first sold in 1997.

These are no longer being marketed. There are about 44 policies in force in Connecticut.

The company said in its filing that the increase is needed because persistency and claim experience are expected to produce lifetime loss ratios that far exceed the original pricing loss ratio.

Unlike medical health insurance with premiums set to cover expenses incurred only during the upcoming policy year, long term care premiums are set to cover expenses that are not expected to occur until a distant date, sometimes 20 years in the future.

The company said its policyholders will have options to change or reduce benefits in order to mitigate the impact of an increase. If approved, the new rate would take effect after the company has notified its policyholders, according to the contractual and regulatory provisions. Connecticut law requires that any increase 20 percent or higher be phased in over three years or more.

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