John Hancock LTC Round 2
Following last week’s news that it will discontinue sales of its individual LTC products, John Hancock has announced that it will file for another round of rate increases for inforce policies. For additional information, including a list of affected policy series (pretty much everything but Performance LTC), click here.
SBLI Launches Upsell Program
SBLI’s Upsell Program makes it easier for agents to increase their customers’ insurance coverage. SBLI will provide increased coverage options for all eligible customers with no additional underwriting requirements, and if selected, an increased commission for agents! Details here.
John Hancock Abandons the Individual LTC Market
John Hancock has announced its decision to discontinue sales of individual LTC products in all states effective December 2nd, blaming, in part, reduced “consumer demand” and the presence of “far fewer outlets” through which LTC insurance is sold. For more details, click here.
Genworth to be Acquired by China Oceanwide
Genworth has agreed to be acquired by China Oceanwide for $5.43 per share in cash, for a total transaction value of approximately $2.7 billion. Here are three key points to the sale, per Genworth:
- There is no change for existing policyholders or future policyholders as a result of this announcement.
- Genworth will be a stand-alone subsidiary and therefore the Senior Management team will remain in place and continue to lead Genworth as it does today. There will be no change to day-to-day operations.
- China Oceanwide will provide financial support to help Genworth strengthen their businesses (LTC and MI) and uphold existing commitments to policyholders, distribution partners and lenders!
The press release can be found here. A letter from CEO Tom McInerney is here.
Prudential Guaranteed UL Restrictions
Effective October 24th, Prudential will implement new face amount restrictions for their GUL products (UL Protector and SUL Protector). The following face amount limits will become effective in illustration systems as of October 24:
- UL Protector policies with combined face amounts on each insured greater than $5 million will not be available.
- SUL Protector policies with combined face amounts on insureds greater than $10 million will not be available.
Applications for amounts greater than these limits may be submitted on or before Friday, October 28, 2016, and must include presentations produced no later than Sunday, October 23, 2016. More details here.
Genworth LTC Rate Action in PA
The state of Pennsylvania has approved Genworth’s request for an additional rate increase on certain Privileged Choice and Classic Select policies sold between 2003 and 2012. Policyholder notifications will begin on October 11, 2016. For details, please click here.
Just In Time (JIT) Licensing Coming to OneAmerica
Starting Oct. 1, 2016, Just in Time licensing is being implemented for all Care Solutions appointments from the brokerage channel. This long-anticipated change will free up capacity in the Care Solutions Licensing department and should allow them to operate more efficiently. More here.
Another Upcoming GUL Price Increase
North American recently became the latest company to increase pricing on their no-lapse GUL product, the Custom Guarantee UL. Pricing will also increase on their Guarantee Builder IUL. More info, including transition rules, can be found HERE.
Prudential Product Update: GUL Premium Changes
Prudential recently announced that “In order to maintain the sustainability of our GUL products, given current market conditions, Prudential has made the decision to increase premiums for new sales of PruLife Universal Protector and PruLife SUL Protector.” Additional information, including transition rules, can be found HERE.
Protective Custom Choice UL Rate Decrease
Effective August 29, 2016, initial level benefit periods of 15, 20, 25 and 30 years will see a premium decrease for Select Preferred, Preferred and Non-Tobacco rate classes. READ MORE HERE.