Florida Insurance Commissioner David Altmaier has made rate filing decisions on long-term care insurance products for Metropolitan Life Insurance Company (“MetLife”) and two subsidiaries of the Unum Group, Unum Life Insurance Company of America and Provident Life and Accident Insurance Company (“Unum”). These decisions reflect agreements by MetLife and Unum to give their policyholders guaranteed certainty about the cost of their long-term care insurance for the next 10 years. Rates approved by the Office will be phased-in by the insurance companies incrementally over an initial three-year period, with average monthly premium increases ranging from $4 to $44 for MetLife and $5 to $55 for Unum.
During the next seven year period, rates will be guaranteed, with no additional rate changes for affected policyholders. In addition to the rate guarantee, policyholders will also be given a range of benefit options to choose from in mitigating the rate increase. These include allowing the policyholder to accept a reduction or removal of the inflation factor, reduction in the daily benefit provided for in the policy or an increased elimination period. It also includes a non-forfeiture provision that allows policyholders who do not wish to make future premium payments to accept a paid-up policy with maximum benefits equal to the premiums they have already paid for in the policy.
At hearings held in August to receive public input about the proposed long term care rate increases, policyholders testified about the need to plan for insurance premium increases and to have certainty about future projected costs. This testimony and the hundreds of comments received from policyholders and others proved invaluable in structuring the rate guarantee and benefit options.
“The Office will continue to encourage other long term care insurers to approach rate needs in a similar fashion for the benefit of their policyholders, many of whom are on fixed incomes. This plan effectively balances the company’s need for rate increases against the impact that those increases have on policyholders who have invested in these products over a period of many years,” said Commissioner Altmaier.
The increases for MetLife and Unum will go into effect over the next year, although the exact date may vary based on anniversary date and form number. The companies will send notices to the policyholders before the increases take effect, along with information outlining other benefit options they may choose to mitigate the increase. A summary of the Office’s approved rate changes are included as an exhibit in each company’s Consent Order, which can be found in the “Additional Information” section below.
For MetLife policyholders, the individual monthly premium impacts associated with the rate changes are listed below:
For Unum policyholders, the individual monthly premium impacts associated with the rate changes are listed below:
- Consent Order – includes an exhibit detailing the approved rate changes
- List of policyholders by county
- For policyholders who bought individual MetLife long-term care policies through agents, please call 1-888-565-3761. All others should call 1-800-438-6388.
- Consent Order (Unum Life Insurance Company of America) – includes an exhibit detailing the approved rate changes
- Consent Order (Provident Life and Accident Insurance Company) – includes an exhibit detailing the approved rate changes
- List of policyholders by county
- For policyholder questions, contact the Unum/Provident customer service number at 1-800-331-1538.
For general information about long-term insurance or the public hearings involving MetLife and Unum, visit the Office’s “Long-Term Care Public Hearings” webpage. These rate filings can be accessed via the I-File Forms & Rates Filing Search system by entering either the file log number (shown in the chart) or the name of the company in the “Quick Search” tab. Scroll down to the bottom of the results page for the most recent filing information.
About the Florida Office of Insurance Regulation
The Florida Office of Insurance Regulation has primary responsibility for regulation, compliance and enforcement of statutes related to the business of insurance and the monitoring of industry markets. For more information about the Office, please visit www.floir.com or follow us on Twitter @FLOIR_comm and Facebook.