Arthur Rudnick
Guru
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Delaware schedules Hancock LTCI rate hearing
December 20, 2011
December 20, 2011
The Delaware Department of Insurance plans to hold a public information session Dec. 28 on a long-term care insurance (LTCI) rate increase application filed by John Hancock Life Insurance Company.
John Hancock, Boston, wants to increase premium rates on individual LTCI policies issued from 1991 to 2009 an average of 36 percent, according to the rate filing.
The company is asking for 21.5 percent increases for a block of policies sold from 2004 to 2009 and another block sold from 2004 to 2006.
The company is asking for 71.1 percent increases for two blocks sold from 2002 to 2004.
The increases would affect 1,199 policyholders, the company says.
Because Delaware limits increases to 30 percent per year, John Hancock, a unit of Manulife Financial Corp., Toronto (TSX:MFC), will implement some of the increases in two stages, the company says.
The new rates would take effect on the next policy anniversary date, after a 60-day policyholder notification period, and policyholders could ask for their premiums to be held down by asking for policy modifications, the company says.
Manulife has classified LTCI as a product that is not targeted for growth.
