Broadtower Insurance

From the desk of Tess Grace, Senior Vice President, Brokerage Sales, with Mutual of Omaha

As a leading long-term care insurance carrier, Mutual of Omaha has a responsibility to their policyholders and distribution partners to ensure their pricing strategy and product offerings are in line with industry trends, internal claims data and the economic environment.

Last year, Mutual of Omaha began implementing new rates and benefit option changes to the MutualCare® Solutions Portfolio in approved states. Effective November 1, 2021, Mutual of Omaha will be implementing these changes in two additional states.

Impacted States

Montana and New York

Rate Adjustments

Premium adjustments may vary by age, sex and benefit selection. You may view the new rates by referring to the quoting software beginning November 1, 2021.

Cash Benefit Changes

• MutualCare® Custom: 25% of home health care benefit up to initial maximum of $2,000 per month
• MutualCare® Secure: 25% of home health care benefit up to initial maximum of $2,000 per month

Partner Premium Allowance Changes

• Both Issued: 15%
• One Issued: 5%

Transition Rules

New paper and e-Applications for MutualCare® Solutions will be required for impacted states beginning November 1, 2021. The new application pack cover series will end in _1121. Please discontinue use of all old applications based on the transition rules below. The following transition rules will apply:

Paper Applications

• Applications with a signed date of November 1, 2021, and later will get the new rates and benefits and will require Mutual of Omaha’s new application.
• Applications signed prior to November 1, 2021, and received in the Mutual of Omaha Home Office on or before November 12, 2021, will receive the current rates and product benefits.
• Old applications received after November 12, 2021, will not be accepted regardless of application sign date. Applications will be closed, and a new application will be required to apply for coverage. No exceptions will be made.
• Back dating applications is not allowed and will not be accepted.

e-Applications

• If you have a pending e-Application started, it must be signed on or before October 31, 2021, to receive the old rates and benefits. You can access your pending application, complete and submit like normal.
• Pending e-Applications must be submitted to the Mutual of Omaha Home Office no later than November 12, 2021, or they will not be accepted.

Quoting Software

Winflex, MutualCare® Solutions, and mobile quote software will be available for download effective November 1, 2021. To ensure rates are appearing properly, please update your software on or after this date.

Marketing Materials and Forms

• Old paper applications will be available for download only on Sales Professional Access until October 31, 2021.
• New paper applications, e-Applications and marketing materials will be available on November 1, 2021.

Thank you for your continued trust in Mutual of Omaha. They look forward to providing LTC solutions for years to come.

NGL is currently processing the influx of business created by the Washington State Cares Fund as efficiently as possible; however, due to the high volume of applications, it is recommended you submit Washington State applications on or before September 3, 2021. Applications submitted on or before this date will have a greater likelihood of being issued by November 1, 2021.

NGL will continue to accept and process business from Washington State after September 3, 2021, but those applications are less likely to be issued before November 1, 2021.

Updated Premium Minimum – Applications submitted for less than a $3,000 annual premium (or modal equivalent) will not be processed. Any application received in the home office after Friday, August 6, 2021, must meet the new minimum premium level or it will not be processed.

To further clarify what the $3,000 annual premium is equivalent to:

• Modal Equivalents – $1,560 Semi-Annual Premium; $810 Quarterly Premium; $263 Monthly Premium.
• The minimum annual premium for a joint application is $3,000 total, not $3,000 per applicant.
• Single Premium policies will not be processed if the single premium is under $30,000.
• 10-Year Pay policies are subject to the $6,000 annual premium minimum.

Commissions: There will be a full charge back of commissions for policies where the premium is not paid for the second year of coverage.

Underwriting: Applicants must have been seen by a physician in the last 24 months. NGL will not be ordering parameds in place of this.

Contracting: Washington is and will continue to be a pre-appointment state for NGL contracting purposes. Agents must be fully appointed prior to soliciting an application.

NGL wants to thank you for your business and collaboration as we all work through this together.

Due to the recent Washington Cares Fund, National Guardian Life Insurance Company (NGL) is experiencing a very high volume of low premium LTCi new business applications from Washington, many of which are less than one-third NGL’s average LTCi premium per policy.

NGL is taking steps to increase the likelihood applicants are purchasing LTCi protection for the long term.

NGL is instituting a new premium minimum in Washington state only:

• Effective Wednesday, July 7, 2021, all WA applications must have a minimum annual premium of $2,000.
• The other previously announced benefit minimums will no longer in be effect and will be replaced by the $2,000 annual premium minimum.
• Please note, the minimum annual premium for a joint application is only $2,000 total, not $2,000 per applicant.

Any application below the $2,000 minimum will not be processed if received by NGL’s administrative office after July 6, 2021, regardless of application signature date.

This is a unique and fluid situation that may require future adjustments. Therefore, the illustration and E-APP systems will not be updated to restrict benefits below the minimums described above.

Reminders:

There will be a full charge back of commissions for policies where the premium is not paid for the second year of coverage.

Underwriting – If an applicant in Washington has not been seen by a physician in the last 24 months, they will be declined; a para-med will no longer be used in these situations.

Other considerations:

• Submit Washington business as soon as possible. It’s quite possible that business submitted closer to November 1, 2021, will not get issued.
• Washington is a pre-appointment state for contracting purposes. Agents must be fully appointed prior to soliciting an application.

These changes are only applicable to Washington applications and are only in place through November 1, 2021.