Prudential Long-Term Care had previously announced its intent to file with state insurance regulators for a premium rate increase on Prudential Long Term CareSM and LTC by DesignSM long-term care insurance policies, its first and second generation products. A response was recently received from Arizona permitting implementation of the change in premium.
At this time, we want you to be aware that we are preparing to mail these detailed notification letters to affected policyholders in AZ on Tuesday August 25, 2015. These letters are informational and do not require any response on your part. The letter will include the new premium amount that will become effective on the next billing date following the effective date of Sunday, November 1, 2015.
The policyholder mailing will include the following:
- Rate increase letter
- Change form
- FAQs
Alternate Benefit Quotes
We understand that premium increases may be financially difficult for some of our policyholders to absorb. To help meet policyholders’ needs, alternate benefit quotes will be provided to moderate the impact of the rate increase. Several benefit changes will be customized for each policyholder so they will know how each election will reduce their premium.
Historically, we have found that less than 10% of impacted policyholders elect to change their benefits as a result of the premium rate increase. Of this group, the vast majority decided to choose one of the alternate benefits options quoted in the policyholder notification letter.
While we appreciate your efforts to help your clients, we strongly recommend that you talk to your clients before you call for additional quotes. By speaking with your clients before you call, you can determine exactly what your client’s needs are and the best approach to meet those needs.
Policyholders on Claim
If a policyholder is on claim and therefore not paying premiums due to the waiver of premium provision in their policy, this premium rate increase will not impact them until they are no longer on claim and have returned to premium-paying status. At that time, we will provide insureds with options that may allow them to reduce the amount of the premium increase by modifying certain benefits under the policy.
Client Lists Available Upon Request
To request a personalized list of your clients that are currently active, please send an e-mail to PRULTC@Prudential.com that includes your full name and contract number, and the list will be e-mailed to you in a secure manner. Please note that your copy of the rerate letter is the only notification available to advise you of your client’s specific rerate date, the options available to reduce the impact, and the new premium amount.
Dedicated Customer Service Line Available
We have a dedicated customer service line with specially-trained staff to address producer and policyholder questions. If you have any questions, the phone number is (800) 732-0416.
As states continue to act on our filings, we will notify affected policyholders and keep you informed of our progress through regular communications.
Please refer to the Producer Toolkit for more detailed information. As stated in the Producer Toolkit, please note that no first year or renewal commissions will be paid on the increased premium.