Evolution of LTCI Plans

[Mr_Ed]

previously posted by Mr_Ed



Sorry Scott, way too much information for me to digest.

I'll use my common sense and go by what I see. And what I see is that rate increases to date, all over the planet have been numerous, exhorbitant and the biggest detriment to the future sales of LTCi.

Every local and national article about LTCi over the past 5 years mentions out of control rate increases by the "big bad insurance companies". Don't you think that's a turn-off to prospective LTCi buyers? Premiums today (IMO) are the #1 reason that sales of LTCi have dropped to levels of pre-2002. (That's an assumption, but I'm sure I'm not too far off)

You like statistics? Here's my statistics:
100% of my policyholders from a particular LTC carrier have called me to question why they've been hit with rate increases from 19% to 100% To say the least, they were not too happy.

Don't you think that these policyholders have friends that they mention this to? Don't you understand that statistics aside, these increases have hurt the growth of our industry?

You can go ahead and advise your new prospects not to worry about future increases because after 35 years, "we've finally gotten everything under control".

(You also might want to tell them "If you like your doctor, you can keep your doctor")

You can justify everything with your statistics if that makes you happy. Personally, I live in the real world. I don't look at statistics, I look at recent history.

Arthur, 100% of your clients have policies that are NOT protected by a Rate Stability Regulation.

I suggest you get licensed in a state that has a Rate Stability Regulation and learn how it will protect those who purchase LTCi today.

 

[Arthur Rudnick]

previously posted by Mr_Ed

Arthur, 100% of your clients have policies that are NOT protected by a Rate Stability Regulation.

I suggest you get licensed in a state that has a Rate Stability Regulation and learn how it will protect those who purchase LTCi today.

Unlike you, who is licensed in all 57 states, I'm only licensed in about 10.
To date, I have had rate increases in states that have signed on to the Rate Stability Regs.

Oh, I forget, that didn't start until last year and your claims won't be proven for another 5-10 years.

 

[Mr_Ed]

previously posted by Mr_Ed



Unlike you, who is licensed in all 57 states, I'm only licensed in about 10.
To date, I have had rate increases in states that have signed on to the Rate Stability Regs.

Oh, I forget, that didn't start until last year and your claims won't be proven for another 5-10 years.

What states are you licensed in?

 

[Arthur Rudnick]

previously posted by Mr_Ed

What states are you licensed in?

It really doesn't matter which states I'm licensed in, however I do about 98% of my business in NY.

This Thread is way off topic. It started with an article on LTCi and has segued into your favorite: Rate Stability Regulation. There is an existing thread on that topic which you can post on.

 

[Mr_Ed]

previously posted by Mr_Ed



It really doesn't matter which states I'm licensed in, however I do about 98% of my business in NY.

This Thread is way off topic. It started with an article on LTCi and has segued into your favorite: Rate Stability Regulation. There is an existing thread on that topic which you can post on.

It's not off topic.
It has everything to do with the evolution of LTCi.

 

[scagnt83]

Other companies are coming back into the multi life market after the New Year.

Which companies are those?

 

[Mr_Ed]

Which companies are those?

It was told to me in confidence and I don't feel right sharing the details until the carriers make their formal announcements.

 

[Justin Bilyj]

previously posted by Mr_Ed



Unlike you, who is licensed in all 57 states, I'm only licensed in about 10.
To date, I have had rate increases in states that have signed on to the Rate Stability Regs.

Oh, I forget, that didn't start until last year and your claims won't be proven for another 5-10 years.

This is awesome stuff!! Nothing ever happens in the ltc forum, all the fights happen in the FE forum.

 

[Mr_Ed]

previously posted by Mr_Ed



Unlike you, who is licensed in all 57 states, I'm only licensed in about 10.
To date, I have had rate increases in states that have signed on to the Rate Stability Regs.

Oh, I forget, that didn't start until last year and your claims won't be proven for another 5-10 years.

What's sad about Arthur's comment here is that after all my attempts at explaining the Rate Stability Regulations to him, he still thinks the Rate Stability Regulations took effect last year.

The NAIC passed the model regulation in the year 2000.
The first 2 states enacted the Rate Stability Regulation in 2001.
7 more states enacted it in 2002.
9 more states enacted it in 2003.
5 more states enacted it in 2004.
3 more states enacted it in 2005.
4 more states enacted it in 2006, plus the District of Columbia.
2 more states enacted it in 2007.
3 more states enacted it in 2008.
3 more states enacted it in 2009.
2 more states enacted it in 2010.
1 more state enacted it in 2012.

9 states have not enacted any type of Rate Stability Regulation:
Alaska
Connecticut
Indiana
Massachusetts
Mississippi
Nebraska
Nevada
New York
Wyoming


Arthur, the Rate Stability Regulations only affect policies that were issued AFTER the state enacted the Rate Stability Regulations.

The reason I know the Rate Stability Regulations work is because over 97% of the rate increases that have occurred have been on policies that were NOT protected under any type of Rate Stability Regulation.

And, I know that the regulations work because the regulations REQUIRE the insurers to price each new policy form MORE CONSERVATIVELY than all previous policy forms.

What's even sadder is that I explain this to consumers and they get it. Why can't a licensed insurance agent get it?


(hope you're enjoying the banter, empty.)

 

[Arthur Rudnick]

Scott,
Please answer me just 1 question:

Does the Rate Stability Regulations prohibit states from approving future rate increases on LTC policies?

A simple question that only requires a simple "yes" or "no" answer.

previously posted by emptyeternity

This is awesome stuff!! Nothing ever happens in the ltc forum, all the fights happen in the FE forum.

I guess you don't know our history. Scott & I have been fighting for 10 years. We have 2 different views of the world.