Physicians Mutual Insurance Company
This filing is submitted for your consideration and approval of a proposed rate revision on the above-captioned policy forms and riders. With regard to the riders, the proposed increase applies only when the rider is attached to one of the above base policy forms. All above forms and riders are currently on file with your department. All of these policy forms are guaranteed renewable and are no longer issued.
The projected lifetime loss ratios for these forms are in excess of original expectations, resulting in a proposed 40% rate increase. This rate increase will apply to policies on their policy anniversary date following a 60-day policyholder notification period. In no event will any policy receive this rate increase less than one year after receiving the most recent rate increase implemented in DC.
It is a high priority to us that policyholders keep their long-term care coverage. As we did with the previous rate increase, we will offer policyholders an option to downgrade their coverage if they want to mitigate the impact of the rate increase. A dedicated toll-free customer service number will be available for a representative to answer policyholder questions.