Prudential to Face Revived Suit Over Long-Term Care Rate Hikes

Jacklyn Wille

A Tufts University employee convinced the First Circuit to revive her lawsuit challenging a pair of premium increases in her long-term care insurance policy form Prudential Insurance Co. of America .

The policy covering Barbara Parmenter is ambiguous with respect to Prudential’s authority to increase premiums without approval from Massachusetts insurance regulators, the US Court of Appeals for the First Circuit said. That ambiguity can’t be resolved without more information about what Prudential knew when it drafted the policy, the three-judge panel said in a Wednesday opinion sending the dispute back to district court for more proceedings.

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