[Fredslist] (promo) LTC Insurance Rate Increase

[howard at hwbinsurance.com]

LONG TERM CARE INSURANCE
   
  RATE INCREASE
   
  Most of Insurance Companies that issue Long Term Care Insurance policies have applied for and received premium rate increases. 
   
  Each insurance company has to apply for their own rate increase. New rates are approved only after thorough review by each state insurance department. States apply strict standards when reviewing requests for rate changes to guaranteed renewable policies. Each state has its own rules for such rate filings, and some states set limits on the timing and percentage of a rate change. In all states an insurer must clearly demonstrate the need for the increase based on the way the product is performing. Insurers looking to raise rates are required to provide state regulatory agencies with a history of claims and other experience for the product. Not all states may approve a rate change request.
   
  The recent rate increases filed with each state reflect, in the insurance company’s opinion, current market conditions.  These include lower than originally projected interest rates, a higher number of expected future claims due to people living longer, and more policyholders than expected retaining their coverage to the time of claim.
   
  Rates increases have been approved in many states for several different insurance companies. Some examples:
   
  CT 11% and 15%; NJ 10%; PA 30%; CA 20%
   
  The last rate increases approved in New York were Travelers Insurance Company on August 2, 2005-8% and Continental Casualty on October 7, 2004-15%.
   
  HOWARD W. BERSCH
  howard at hwbinsurance.com
  201-567-3236
   
   
  March 17, 2008


Howard W. Bersch
tel.  201-567-3236
fax.  201-567-6210
email.  howard at hwbinsurance.com
website.www.hwbinsurance.com
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