With the launch of Privileged Choice® Flex 3 (Flex 3) on July 21, 2014, Genworth will no longer allow clients to purchase multiple individual Genworth long term care insurance (LTCI) policies. This applies to all currently available Flex products.
After July 21, 2014, if your client already owns one or more individual Genworth policies, he or she may keep them. However, to purchase a new individual LTCI policy, your client will need to replace all current Genworth individual LTCI policies, including AARP-endorsed and LTC Business Solutions policies. Replacement regulations apply and the appropriate replacement form must be submitted with the application. In addition, the producer and client should review the replacement notice carefully and make sure a replacement is suitable.
If your client owns a group or a linked benefits policy (other than an AARP- endorsed group policy), he or she may keep it and purchase a new individual LTCI policy in addition to that policy. To purchase a new LTCI policy in this situation, your client will need to go through the underwriting process again.
As a reminder, when a client purchases a new LTCI policy and replaces an existing Genworth policy, commissions will be paid based upon our normal internal replacement commission guidelines.
Please make sure that this information is disseminated appropriately so that all interested parties are apprised of this important change.
