Although they no longer market LTCI products, Pru does administer a large number of policies and will be implementing an in-force rate action for a number of states. Read below for more info.
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Although Prudential no longer markets long-term care insurance products, they monitor the experience of our in-force book of business. After a careful review, we determined that another in-force rate increase on the Prudential Long Term CareSM Insurance and LTC by DesignCM books of business is necessary. This is in addition to the increases announced in 2008 and 2011. An in-force rate increase for a portion of the LTC3SM book of business is also necessary.
We began filing these in-force rate increases with the states in April 2013. The first increases will be implemented on the first modal premium due date on or after February 1, 2014, in most states that authorized the increase, subject to state variations. The states implementing the increase on Prudential Long Term CareSM Insurance and the Prudential LTC by DesignSM are: AK, AL, AR, DE, GA, KY, MI, MS, MT, ND, OK and SD. The LTC3SM increase will be implemented in the following states at the same time: AK, AL, AR, CT, DE, GA, MD, MI, MS, MT (Pre Rate Stabilization) ND, OK, PA , SD and TN.
These in-force rate actions do not impact LTC3SM new business issued with the “refreshed rates” that were introduced in some states beginning on April 5, 2011. The Prudential LTC EvolutionSM book of business is not impacted.
For more information on which states approved the refresh rate and date of approval, please refer to the In-Force Rate Action Field Toolkit, which also includes a Frequently Asked Questions section. The toolkit can help you address any client questions.
We wanted to notify you about these in-force rate actions prior to the first policyholder letters being sent out later this month and will keep you informed as more information becomes available. Please refer to the attached Detailed Notice Letters in addition to the In-Force Rate Action Field Toolkit. You and your clients can also call the dedicated customer service line at (877) 214-6583 for assistance.