Legal Question in Insurance Law in Ohio
Premium Escalation of Long Term Care Insurance policy
I bought Long Term Care Insurance policies from Continental General (CGI) for me and my wife in 1998. The initial premiums totaled $1904.00. In 2001 the premium was raised to $2278.00, a 19% increase, and now in 2003 the premium has been raised to $2754.00 another 21% increase. That's an outrageous 44% increase in four years. How can this escalation be justified when the policy benefits have not changed even though the costs of nursing homes may have increased? I think this is an unacceptable situation that amounts to reckless disregard for policy holders--an unconscionable inflation.
I have now changed insurers but would like to know if I can demand to have my premiums refunded for the 5 years with Continental.
1 Answer from Attorneys
Re: Premium Escalation of Long Term Care Insurance policy
Insurance companies lost their butts when the stock market took a plunge in 2000. They have to re-coop the money somehow so they pass their losses on to the consumer. While they would like the general public to think that the rise in premiums is a result of "frivolous lawsuits", such is not the case.
Demand from CGI an explanation of why your premiums have skyrocketed.
As for getting back those premiums, not likely.
But, I do not handle class action suits, so if you can find others similarly situated as you are, an attorney who does class action work may have a case against the insurance company.
GOOD LUCK
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