Long-term care insurance: concerns about viability of AARP-recommended Genworth Insurance company

[lc71896263]

About five years ago, I bought Genworth long-term care insurance based on AARP's affiliation with Genworth. Concerns about the company's viability are now great: there is a class-action lawsuit against them (2016), it was sold to a Chinese company, and one can read about dismal responses to filed claims. I tried to contact someone in AARP to see if AARP had any recommendations about what policy holders can do (as of about a year ago, New York Life became AARP's long-term care insurance associate). I've not had a response to the question: does AARP have a recommedation regarding Genworth, and, if so, what is it? Does anyone have suggestions for what to do about Genworth? Does anyone have a suggestion as to whom to contact in AARP for some advice in this matter? Thank you.

[s59712o]

It is true that many of the older LTCi policies have had large premium increases.  To protect consumers purchasing policies today, 41 states have passed strict pricing regulations.  Consumers purchasing policies today are protected from the pricing mistakes of older policies.

North Carolina passed a strict “Rate Stability Regulation” on February 1st, 2003.  Everyone who has purchased a long-term care insurance policy approved by the state since February 1st, 2003 is protected by these strict rules regarding rate increases.  

About 95% of the rate increases in North Carolina have been on policies purchased before February 1st, 2003. Only about 5% of the rate increases in North Carolina have been on policies purchased after February 1st, 2003.

[sktn77a]

OK, so I'm subsidizing post-2003 policies in NC also........................

[s59712o]

No. You're not subsidizing other policies.  Post-2003 policies were priced higher than pre-2003 policies because of the rate stability regulation. Your rate increase was based solely on the claims experience of your policy form in your state.