Genworth Financial Inc. will change long-term care insurance (LTCI) underwriting and agent commission rules July 30, the company says in a copyrighted bulletin sent to LTCI agents.
Genworth, Richmond, Va. (NYSE:GNW), a major LTCI provider, says it will cut first-year gross commissions on new LTCI policy sales by 15% in most states and by 10% in two.
Genworth also is tightening underwriting requirements, the company says. Genworth says, for example, that any applicants with a history of schizophrenia will be considered uninsurable and that those who have received Social Security Disability Insurance benefits within the previous 5 years will be considered uninsurable.
Genworth hopes to increase commissions in about 9 to 12 months, but future adjustments in the commission schedule are subject to change at Genworth’s discretion, the company says.
“The need for Long Term Care Insurance has never been stronger, and Genworth is committed to solving for this need,” the company says.