On December 22, 2021 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.

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 Department disapproved the rate increase request on May 18, 2022. The company stated that the request was for remaining amounts requested in the past and not approved and the Department considered the catch-up amount excessive in light of past approvals. This decision was consistent with the NAIC Multi-State Actuarial Long-Term Car Review Team’s analysis.

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