State regulators and insurers have reached agreement on 10-year plans that include rate increases on long-term care insurance policies, the Florida Office of Insurance Regulation said Thursday.
The agreements involve Metropolitan Life Insurance Company and two subsidiaries of the Unum Group.
Regulators held hearings in August on requests by the companies to increase long-term care insurance rates.
Under the agreements, varying levels of rate increases will be phased in over three years.
The affected policyholders then would not see any rate changes during the following seven years, the Office of Insurance Regulation said.
The Unum subsidiaries are Unum Life Insurance Company of America and Provident Life and Accident Insurance Company.
"The Office (of Insurance Regulation) will continue to encourage other long term care insurers to approach rate needs in a similar fashion for the benefit of their policyholders, many of whom are on fixed incomes," state Insurance Commissioner David Altmaier said in a prepared statement. "This plan effectively balances the company's need for rate increases against the impact that those increases have on policyholders who have invested in these products over a period of many years."