Mutual of Omaha has announced that they will take actions designed to help them remain a major player in the market for years to come. Due to the low interest rate environment, and based on their claims experience, effective February 1, 2012 Mutual of Omaha is adjusting rates on the inflation riders on their current LTCI portfolio.
This re-pricing will be on new business only in the following states: Alabama, Arkansas, Arizona, Georgia, Iowa, Illinois, Kansas, Kentucky, Maine, Michigan, Mississippi, Missouri, Montana, North Carolina, North Dakota, Nebraska, New Hampshire, New Mexico, Oklahoma, South Dakota, Tennessee, West Virginia, Wisconsin.
To receive the current rates, all apps for the approved states shown above must be signed by January 31, 2012 and must be received in the Home Office no later than February 15, 2012. Click here for the full communication from Mutual of Omaha.
As additional states approve the adjusted inflation rider rates, we will keep you informed. We’d like to remind you that this adjustment will not affect any current inforce policyholders. These changes are on new business only.
Please Note: Mutual of Omaha is not the first carrier to re-price new business. John Hancock, Genworth and Prudential are among the carriers currently in the market that have in the past adjusted their new business premiums to reflect the realities of the market and their claims experience.