An insurer says it will return to an older, higher sales commission structure for some long-term care insurance (LTCI) products sold in some states.
Genworth Financial Inc. (NYSE:GNW) says the commission structure update will apply to sales of one type of LTCI policy in 11 states — California, Connecticut, Florida, Hawaii, Indiana, Massachusetts, Maryland, Missouri, New York, Oregon and Virginia.
Genworth began using the same commission structure for the same product in other states where the product was being launched in April.
Genworth announced a cut in first-year gross commissions on sales of all individual LTCI products in 2012.
The new commission rate change involves a return to commission rates in effect when the cut was announced in 2012, Genworth says.
Genworth announced the change in a bulletin sent to agents.