Transamerica Life is looking to hike the premium on 7,124 long-term care policies in Connecticut by 25 percent in the coming year.
The insurer filed an application to raise its rates with the Connecticut Insurance Department last month and said past denials of rate increases by the department has put it in the position to require this size of a move to prevent seeking an even bigger one later. The company no longer markets long-term care plans in Connecticut and now only services those policies it previously sold.
The premiums currently range from approximately $1,800 to $2,700 a year. If approved as submitted, policyholders could see increases of $37 to $56 a month. The company has assured the Department that it would give customers a 60-day notice of any rate change and offer options to mitigate the impact of any rate change.
Transamerica is owned by Aegon, a European corporation that earned about 1.3 billion euros from its American division last year and reported net income for its worldwide operations of 872 million euros.
For more information, visit:www.ct.gov/cid