Rate increase on older LTC policies continue to be a matter of concern. Insurance regulators through The National Association of Insurance Commissioners are working on solutions to guide state insurance regulators on the rate approval process. The key is to balance out premium increases for consumers and to ensure that insurance companies maintain some profitability. If insurance companies do not maintain some level of profitability, they will not remain in business which means that claims will definitely not be paid. It is that balance that is tricky and is exacerbated by the fact that many feel insurers caused this issue themselves by underpricing older policies. Let’s hope that more states will adopt rate regulations and ensure that insurance company’s premium increases are justified.
Join The Insurance LiteracyNewsletter
Get The Questions and Answers on Insurance Planner & receive the best tips on maximizing the value of your insurance and the latest in Insurance Best Practices.