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. The Company is requesting a 10% rate increase at this time. The only prior rate increase in the District of Columbia was a 10% increase approved in 2012 under SERFF Tracking Number: Unum-128352718.
A rate increase of 72%, to be implemented over 3 years, was approved in our state of domicile, by the Maine Bureau of Insurance on September 25th, 2012.
We intend to begin using these new premium rates in early 2015, or upon approval by your Department, whichever occurs later. Any approved premium rate increases will be effective upon the employer policyholder's next anniversary, subject to at least a 60 day notification to the insured or longer if required by your state.
Unum 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, elect to continue the policy under contingent non-forfeiture, or make other benefit changes that will best meet their needs.
Each insured will be given the option to exchange their current policy for a non-forfeiture benefit (paid-up policy) upon lapse which is equal to 100% of the sum of all premiums paid. This option will be available to all insureds (both pre and post rate stability certificate holders) regardless of the level of the rate increase amount or the insured’s issue age.
Percent Change: 10.000%