Quick Answer
A class is a group of Long-Term Care Insurance policyholders with a common trait.
A class is a group of Long-Term Care Insurance policyholders with a common trait.
In Long-Term Care Insurance, a "class" is a group of people with similar traits in common. Shared traits can include:
Same application date
Same policy form
Same sex
Same policy issue date
Same policy issue year
Same rate classification
Same state of policy issue
Policyholders are sorted into classes for premium purposes. In Long-Term Care Insurance, premiums are intended to remain level. Premiums can only increase across an entire class, not just for individual policies.
Sorting policyholders into classes can help insurance companies determine which groups' premiums will increase. However, it should be noted that premiums can only increase if determined absolutely necessary by state actuaries.
To learn more about classes and why they’re important, you can read our article on Long-Term Care Insurance underwriting.
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