Provident Life and Accident Insurance Company
The purpose of this letter and attached actuarial memorandum is to request a rate increase for the inforce business sold under the Unum group long-term care policy forms referenced in the subject line above. These policy forms are no longer marketed in any state. A rate increase of 10% was approved in the District of Columbia in 2013 under SERFF Tracking Number: Unum-128352718.
A rate increase of 86.1%, to be implemented over 3 years, was approved in our state of domicile, by the Tennessee Department of Commerce and Insurance on September 10, 2012.
At this time, Unum is requesting the approval of a 10% premium rate increase on the base rates associated with the policy forms listed above. We intend to begin using these new premium rates in July 2014, or upon approval by your Department, whichever occurs later. Any approved premium rate increase will be effective upon the policyholder's next anniversary, subject to at least a 60 day notification to the insured or longer if required by your state.
We will offer all insureds affected by the premium rate increase the option of reducing their coverage to mitigate the impact of the rate increase. Insureds will have the option to reduce their monthly benefit, increase their elimination period, decrease their benefit period, elect to continue the policy under contingent non-forfeiture or make other benefit changes that will best meet their needs.