Sean K. Collins

Consumer attorney focusing on long-term care insurance issues. Power to the policyholders.

[Sean K. Collins @SeanKCollinsLaw]

Should a long term care insurance company collect premiums for decades then intentionally drive their insureds (many are seniors) to lapse using rate increases as their tool? Doesn't that destroy the purpose of buying the coverage?
Watch this: https://t.co/Qm5OLjBpxX

[Sean K. Collins @SeanKCollinsLaw]

That report is from 2008, before the legacy blocks ramped up their claim management efforts, I’ll look for more recent stats and will post…regardless LTCi is generally very good you just need to plan ahead for claim process and have a professional lined up to file the claim since leaving it to yourself or a relative is not advisable. I don’t want claim horror stories to cause people to drop their coverage, that’s what the legacy carriers want, policyholders just need to be prepared for the claim process with an action plan in place otherwise their policy they’ve sent so much on is rendered worthless

[Sean K. Collins @SeanKCollinsLaw]

@LTCShop @OG_BrianOConnor Where is the 2.4% stat coming from? The denial stats I’ve seen are far higher, and they are self-reported stats by carriers which appear manipulated anyhow

[Sean K. Collins @SeanKCollinsLaw]

Putting aside our statistical disagreement, I 100% agree that families should hire a professional with long term care insurance claim filing experience in particular to file their claims, the legacy carriers in recent years are doing whatever they can to steer people down the wrong path with claim forms that don’t match the policy language!!

[Sean K. Collins @SeanKCollinsLaw]

@OG_BrianOConnor And that AHIP report conveniently leaves out the claim denial statistics…who cares how much has been paid out if you can’t see how much has been denied! Families need to fight for their claims to get approved

[Sean K. Collins @SeanKCollinsLaw]

@HollyDewhurst Did CNA ever pay this claim? Was it a group or individual policy?

[Sean K. Collins @SeanKCollinsLaw]

@vreehal Yes the claim process is full of pitfalls, it’s at the point now where it’s well worth it to hire someone to properly file and oversee the claim process

[Sean K. Collins @SeanKCollinsLaw]

Should a long term care insurance company collect premiums for decades then intentionally drive their insureds (many are seniors) to lapse using rate increases as their tool? Doesn't that destroy the purpose of buying the coverage?
Watch this: https://t.co/Qm5OLjBpxX

[Sean K. Collins @SeanKCollinsLaw]

@StillKP LTC was sold as “level” premium…term life policies with a major increase at the end of the term are very different

[Sean K. Collins @SeanKCollinsLaw]

@BIGAL_Your_Pal Thanks! Will take a look

[Sean K. Collins @SeanKCollinsLaw]

@ArtemisLynn @sooschreiber See above, carriers are increasing rates even though they are still reporting huge profits, for most carriers its not about solvency short-term or long-term. It’s about protecting/increasing profits

[Sean K. Collins @SeanKCollinsLaw]

For instance CNA is very profitable, check out their SEC filings, yet they have doubled premiums on policyholders rather than directing those profits to fill any alleged gap in rates…the rate increases generally aren’t about protecting solvency they are about carriers not wanting to use profits to fill the gap, carriers want to use rate increases/lapses funded by policyholders to fill the gap

[Sean K. Collins @SeanKCollinsLaw]

@ArtemisLynn @sooschreiber Right but again a lot these rate increases are not needed for solvency the carriers admit that

[Sean K. Collins @SeanKCollinsLaw]

@BIGAL_Your_Pal What are some of the good ones available now? I reviewed one a while back and the LTC language was outdated but I haven’t circled back to see what else is available now…my day to day is focused on the old legacy stand alone LTC policies that have all kinds of issues

[Sean K. Collins @SeanKCollinsLaw]

Why is the current industry not condemning the bad behavior of the legacy carriers? I don’t understand that. They all go to the same conferences and compare notes instead of holding each other to task. LTC insurance is a critically important product but the bad apples have ruined it and nobody is speaking up

[Sean K. Collins @SeanKCollinsLaw]

Should a long term care insurance company collect premiums for decades then intentionally drive their insureds (many are seniors) to lapse using rate increases as their tool? Doesn’t that destroy the purpose of buying the coverage? Watch this:

https://t.co/K8cNta8lUZ

[Sean K. Collins @SeanKCollinsLaw]

@ArtemisLynn @sooschreiber I thought you said above that if they didn’t get rate increases they would go bankrupt? I don’t think that’s true for most carriers

[Sean K. Collins @SeanKCollinsLaw]

@ArtemisLynn @sooschreiber CNA’s rate increases on their group block are designed to try and restore the original lifetime loss ratio on the block (including the profit expectation) they are not needed to prevent a solvency issue, CNA is fine from a solvency perspective

[Sean K. Collins @SeanKCollinsLaw]

@ArtemisLynn @sooschreiber Which state insurance commission are you referring to? Not all states regulate group long term care rates

[Sean K. Collins @SeanKCollinsLaw]

@philchandler2 Yes for those that can keep it in force, and can navigate the claim process, it’s incredibly valuable, the message is: don’t let the insurers convince you to drop this valuable coverage! Are there any carriers who make the claim process difficult for your clients?

[Sean K. Collins @SeanKCollinsLaw]

@janetswags We have a class action pending against CNA aimed at holding them accountable

[Sean K. Collins @SeanKCollinsLaw]

@ArtemisLynn @sooschreiber I think carriers should have to attest that the rate increase is needed to prevent a solvency issue, rate increases should not be allowed to simply restore lost profit margins/loss ratios but that’s where we are in a lot of states