On September 9, 2022 Genworth Life Insurance requested a rate increase of 56.4 percent on “PCS-1” long-term care policies with lifetime benefits sold to individuals in Connecticut from 1994 to 2003. These policies are no longer being marketed. No rate increase is requested on policies with limited benefits. The Company has stated if the Department approves this request, they will guarantee no further increases on this block and amend their contracts to be non-cancellable.

There approximately 232 policies in force in Connecticut.

The company said the rate increase is needed because experience has been unfavorable and has had a negative impact on lifetime loss ratios. Persistency, claim incidence, claim continuance and benefit utilization rates have emerged higher than expected. More policyholders than originally assumed are claiming benefits and the premiums are not sufficient to offset those expected higher claims costs.

After Actuarial review, the increase was disapproved on December 20, 2022 and limited to 30% for policies with lifetime benefit periods. The rate guarantee will still be applied to all policyholders in this block and covers all future experience over the remaining lifetime of these policies. The Department felt an approval was reasonable, given the rate guarantee.

The new rates will be implemented at least 60 days after the company notifies its policyholders of a price change. Under Connecticut law, long-term care premium increases of 20 percent or more must be phased in over three years or longer. This 30% increase will be implemented over 3 years at 10.6% a year.

###