April 16, 2012
Re: Compensation Adjustment for Single Pay Premiums
Over the last several months, I’ve spoken extensively about Transamerica’s commitment to the long term care marketplace and in our belief that this market represents tremendous opportunity for those carriers who offer products and programs that are sustainable. I’ve also talked extensively about our willingness to actively manage our long term care business and make any required adjustments to ensure long term success.
As a result of that philosophy, we have determined that a reduction in the compensation paid for single premium policies is required. Effective May 16, 2012, first year compensation for single premiums will be reduced from current rates. To determine the amount of the reduction applicable to you, please contact the agency assisting you with your Transamerica appointment.
This reduction will apply to all single premium applications received on and after May 16, 2012.
This communication shall serve as the 30-day notice of commission changes required under your contract.
With the current low interest rate environment, it is important that we maintain adequate diversification in the mix of submitted business. As the only leading long term care provider still offering single premium programs, we are making this change to ensure that our business mix maintains acceptable diversification.
We feel confident in our long term care products and programs. As part our business strategy, we will continue to analyze our business to ensure sustainability for the long term. Where necessary, we will make modifications and changes.
We realize that the ability to offer Single Premium policies is an important aspect of your product portfolio. I am pleased that Transamerica Long Term Care is able to continue offering these policies to you, your agents and your clients.
Should you have any questions about this change, please feel free to contact us.
As always, we appreciate your business and value your partnership with us.
Sincerely,
Tim Kneeland
President