Mutual of Omaha is changing long-term care insurance (LTCI) underwriting and agent commission rules July 30, the company says in a copyrighted bulletin sent to LTCI agents.
Mutual of Omaha, Omaha, Neb., says it will stop taking applications from employers for new multi-life LTCI programs. Any applications for new multi-life programs must have been signed no later than Wednesday, and the completed applications must arrive at the company’s home office no later than Aug. 8, Randy Mousel, a vice president at the company, says in the bulletin.
The company will add new employees to existing multi-life LTCI groups only if the home office is already administering the process, Mousel says.
Mutual of Omaha also is cutting first-year gross commissions on new LTCI policy sales by up to 15% in many states, Mousel says. The company plans to distribute new LTCI compensation charts Aug. 8.
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The company is eliminate the lifetime benefit option and all limited-pay options, except for the Flex to Age 85 option, Mousel says.
“As the long-term care insurance market continues to evolve, Mutual of Omaha remains a key player in the industry,” Mousel says. “We will remain a strong, stable, and secure solution for your business.”
But Mutual of Omaha believes its product offerings must adapt to remain sustainable, Mousel says.
“Just as as the market continues to mature and evolve, so does our approach,” Mousel says. “In the current low interest rate environment, changes are necessary to maintain a long-term care viable product line.”