As part of the strategy for our long-term care insurance business, we continue pursuing initiatives to improve the risk and profitability profile of our business, including premium increases on our in-force policies, as needed.
In September 2013, we announced our intention to seek premium rate increases on certain Privileged Choice® and Classic Select® policies sold between 2003 and 2012. Subsequent to that announcement, we received approval for, and implemented, a 15% premium increase in Ohio. At the time, a larger increase was justified, based on projected experience, but rate stability requirements prevented us from requesting the fully justified amount. In 2016, we began requesting the full amount in states that previously allowed our 2013 ask.
Ohio has now allowed our requested increase, and the details of the implementation of this premium change can be found within the announcement.
Servicing agents will receive a list of their impacted policyholders in this state one week prior to the start of policyholder notifications. Policyholder notifications will begin December 6, 2016 and will continue throughout the next year. Impacted policyholders will be notified at least 60 days in advance of their billing anniversary dates.
* At this time, we are still only mailing hardcopy notifications to impacted agents.
In the notification letter, policyholders are encouraged to call our Customer Service Team at 877-710-0817. Our team will be able to answer questions and provide policyholders with information about how they may be able to reduce premiums.
In-Force Rate Action Announcement: Ohio (Privileged Choice® and Classic Select®)