Alabama Regulation Helps Curb Long-Term Care Insurance Rate Increases
Alabama enacted a long-term care insurance regulation on July 1st, 2006. Alabama residents purchasing long-term care insurance after that date are protected by Alabama’s Rate Stability Regulation*.
The regulation has helped curb long-term care insurance rate increases in Alabama because it forces long-term care insurance companies to lower their profits if they seek a rate increase.
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Profit Incentive
BEFORE 7/1/2006
UNDER THE OLD RULES
Profits were capped in the initial pricing, but more profit could be made when rate increase was requested.
AFTER 7/1/2006
UNDER THE NEW RULES
Higher profits are allowed in the initial pricing, but the higher profits can ONLY be kept IF THEY KEEP PREMIUMS LEVEL.
Margin for Error
BEFORE 7/1/2006
AFTER 7/1/2006
Actuarial Certification
BEFORE 7/1/2006
AFTER 7/1/2006
Not all policies are covered under these new regulations.
*Many group policies (like the Federal Long-Term Care Insurance Program, CalPERS, and other self-funded groups) do not have to comply with the Rate Stability Regulation.
Shop and Compare for Long Term Care
Our focus is to help you get the coverage you want, from a top insurance company, for the lowest possible premium.
Shop and Compare for Long Term Care
Our focus is to help you get the coverage you want, from a top insurance company, for the lowest possible premium.
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