CNA To Stop Selling Individual
LTC Policies In All States
CNA Insurance Companies, Chicago, says it has decided to discontinue sale of individual long term care insurance policies in all states where it operates.
The sales will stop in early October, with specific dates varying by state.
However, the company is not leaving the entire LTC insurance market. CNA will continue sale of its group LTC insurance products, explains Charles Boesel, vice president-media and public relations in the Chicago office. The company writes group LTC insurance on groups of all sizes.
In addition, he says, “we will continue to service the over 400,000 individual LTC policyholders who currently own our individual LTC policies.” Policy service on this block of business will not change, he adds, and CNA has no plans to sell this block at this time.
Several months ago, CNA did put rate increases into place on older policies in several states, Boesel notes. But that is the only change to the older book of business that CNA is making, he says.
CNA reached the decision to stop selling individual LTC policies after several months of review, the spokesman says. The insurer broke the news to producers in the first week of September 2003 by sending out notices to producers about the “discontinuance.”
CNA entered the LTC insurance market over three decades ago by selling what were than called “nursing home policies.” These products later evolved into todays comprehensive LTC insurance contracts.
Reproduced from National Underwriter Life & Health/Financial Services Edition, September 15, 2003. Copyright 2003 by The National Underwriter Company in the serial publication. All rights reserved.Copyright in this article as an independent work may be held by the author.