In August 2012, we announced our intention to seek premium rate increases on certain blocks of comprehensive long term care insurance policies, including Pre-PCS, PCS I, PCS II, and Choice 1. During the course of 2012-2014, we implemented rate increases on these blocks of business. In some states, we did not receive the full requested increase. We began submitting requests in these states during the second half of 2014. We have received approvals in a number of these states and are now beginning to implement the second round of increases in Indiana. This implementation does not include Indiana Partnership policyholders.
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Indiana |
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| Product Series | Increase Percentage for Policies with Limited Benefit Periods |
Increase Percentage for Policies with Lifetime Benefit Periods |
| PCS I | 16.6% |
16.6% |
| PCS II | 20% |
20% |
| Choice 1 | 18% |
18% |
Communications Timeline
Servicing agents will receive a list of their impacted policyholders in this state one week prior to the start of policyholder notifications. Policyholder notifications will continue throughout the next year. Impacted policyholders will be notified at least 60 days in advance of their billing anniversary dates.
Agent Notifications* Begin: July 19, 2016
Policyholder Notifications Begin: July 26, 2016
* At this time, we are still only mailing hardcopy notifications to impacted agents.
In the notification letter, policyholders are encouraged to call our Customer Service Team at 877-710-0817. Our team will be able to answer questions and provide policyholders with information about how they may be able to reduce premiums.
Policyholder Options
As a reminder, policyholders may have the ability to reduce their benefits in order to help maintain premium at approximate current levels. A policyholder may:
(1) Choose to lower their current maximum daily benefit;
(2) Adjust the benefit period, inflation option (if included with their coverage) or elimination period or
(3) Where applicable, terminate Riders.
Please note: when reducing the maximum daily benefit or benefit period, the lifetime maximum will also be reduced. In addition, once benefits are decreased, they cannot be increased or changed back to the benefits that were originally selected.
If a person has previously been on claim, it may not be appropriate for this person to adjust his or her elimination period.
Reminder: The In-Force Rate Action Producer Quote Tool is accessible within individual policies on the LTC policy notification section of Genworth PRO (genworth.com/pro). In addition, an online User Guide is available on PRO to help you learn how to use the quote tool.
Quotes to include the premium increase are not available until after the policyholder’s rate increase notification has been mailed. The mailing date is 61 days prior to the policyholder’s rate action effective date. Once a rate increase has been added to a policy, any quotes provided prior to the policyholder’s rate increase notification being mailed will not include the new increased premium.
For the original announcement, click here.