Genworth Financial said it will be suspending sales of long-term care insurance (LTCI) in Vermont July 29.
The company will be ending sales of the Privileged Choice and Classic Select policies in the state while working to get state insurance regulator approval for newer products, a company spokesman said in an e-mail interview.
Genworth and other carriers have been developing LTCI policies with higher prices, more limited benefits and tougher underwriting rules after finding that lapse rates for older policies were lower than it had expected and claims costs were higher.
The company said in a letter to producers that it has introduced the new Privileged Choice Flex and Privileged Choice Flex 2 policies in other states and is no longer willing to sell the older products.
Genworth believes it is “important that the products we offer in Vermont are priced to balance the needs of our consumers with our desire to achieve long-term profitability,” the company spokesman said.
Earlier this year, Genworth suspended LTCI sales in California. The company now is in the process of preparing to roll out the new LTCI products in that state.