Long-Term Care Insurance Rate Decision
Pennsylvania Insurance Department | www.insurance.pa.gov
State Farm Mutual Automobile Insurance Company
August 8, 2022
SERFF #s: STLH-133115163
Filing Summary:
State Farm requested an aggregate 3.9% increase (ranges from 0% to 25%) on 892 PA policyholders of State Farm form
97058PA. The requested increases varied based upon the issue age, inflation option (only compound policies receive an
increase), elimination period, and benefit period.
The Department approved an average 3.9% increase on the 892 PA policyholders.
Effective date of rate change: Renewals on and after 8/8/2022.
The current policies in place are not generating sufficient premium to pay future claims to policyholders. This is a
common problem for a number of insurers nationwide because policyholders are keeping their policies longer than
expected and are living longer than projected. As a result, policyholders are using more benefits on average than the
company anticipated when the policies were originally sold. This means the company has to pay out more for benefits
than it originally projected.
In making this decision, the Department considered the projected loss ratio for each block of policy forms, that is,
the projected total amount of benefits paid out versus the total amount of premium collected, the reasonableness of
the assumptions the company used in its projections, and the company’s financial situation. The Department also
considered the financial impact this rate increase would pose to consumers, the past rate increases policyholders
have faced, and the availability of options to limit the rate increase by reducing benefits.
The company is offering ways for policyholders to limit the rate increase by reducing benefits. The company will let you
know your options when they contact you directly about this premium increase.
This Rate Filing Decision Summary is a tool to help explain the rate filing and does not describe all the factors
considered as part of the Department’s rate review.
