Admin Update

The end of 2021 is rapidly approaching and the AIN Core Carriers have begun to release their year-end processing deadlines. While not all have been released as of today, please review those that have below, and keep an eye on your in box for updates as additional carriers declare themselves!

The pertinent 2021 year-end cutoff dates for the AIN Core Carriers can be found via the links below.

• AIG
• Bestow: Any and all business placed on or before 12/31/2021 will count as 2021 production.
• Equitable
• F&G
• Foresters Financial
• Global Atlantic
• John Hancock
• Legal & General
• Lincoln Financial
• Mutual of Omaha
• Nationwide
• New York Life
• North American
• OneAmerica
• Principal
• Protective Life
• Prudential
• Sagicor
• Securian Financial
• Symetra Financial
• Transamerica
• Zurich

The AIN Member Services Team has completed a “top to bottom” review and update of the Product Intel Resources curated on AIN Essentials. Read on for the details!

Product Intel: General

• Updated: Child Rider Details – A summary of the available Child Riders by carrier
• Updated: Life Insurance In Qualified Plans – A summary of current Core Carrier policy and procedure regarding the sale of life insurance products in qualified plans. Now includes carrier position on Defined Benefit and 412 plans.
• Updated: Max Issue Age and Age Calculation – Working on a truly “older age” client? Pop this resource open to gain an understanding of carrier policy and procedure for clients over age 80
• Updated: New York Products by Carrier – Have a “New York state of mind”? Keep track of what you can and can’t sell in New York with this resource
• Updated: Premium & Face Amount Limits – Life Products – A summary of current Core Carrier limits on premiums and face amounts, if applicable
• Updated: Premium Deposit Accounts – Premium Deposit Accounts are becoming a more important part of the case design process to improve performance, accommodate large non-mec lump sums or both. Check out the parameters for the Core Carriers captured in this new resource.
• Updated: Product Availability by State – Stay up to date on where recently launched products are approved for sale with links to carrier state approval details
• Updated: Product Type By Carrier – Increase your knowledge of the breadth of product available from the AIN Core Carriers with this quick summary sheet
• Updated: Terminal Illness Rider Details – Qualification and terms regarding acceleration of death benefits due to a terminal illness diagnosis
• Updated: Section 7702 Transition Summary – A brief summary of 7702 compliant products, including links to applicable materials from each of the Core Carriers

Product Intel: LTC and CI Products and Riders

• Updated: AIN Guide to LTC and CI ABRs – A summary of rider types, availability and pertinent details, consolidated into a singular resource for those seeking to gain a sense of the market nd what differentiates rider types and carrier execution from their peers.
• Updated: The previously deployed LTC and Chronic Illness Rider Details summary has been broken into three unique pieces for easier comparison of competing offerings in the three distinct rider types:
  • Long-Term Care Rider Details
  • Premium Charge Chronic Illness Riders
  • Inherent Chronic Illness Riders
• Updated: Asset-Based LTC Product Details – A summary comparison of the terms and conditions of the most popular products in the asset-based LTC market.
• Updated: LTC CI Foreign National Options and Payments-Abroad – Long-Term Care or Chronic Illness coverage for foreign nationals or US Citizens living abroad

Product Intel: Permanent Products

• Updated: Available Riders – Permanent Products – A summary by Core Carrier of the various riders available on permanent products.
• Updated: High Early Cash Value Riders – Includes a brief description of the relevant terms and conditions governing the use of high early cash surrender value riders
• Updated: Loan Rescue: 1035 Exchanges With Outstanding Loan – While the true “loan rescue” products of the past are close to extinction, there are many sales to be had if we can find more favorable terms for a heavily loaned contract. This resource will get you headed in the right direction from a carrier and product standpoint.
• Updated: Premium Financing Guidelines – A summary of the AIN Core Carrier’s minimum requirements for Premium Finance cases. Given the complexity of this subject, a quick call to the Member Services Team is recommended as well before submitting a case formally or informally.
• Updated: Return of Premium Rider Details – Return of Premium features add flexibility and open up insurance planning conversations instead of simply taking the order. Keep tabs on the nuances of these riders with this spreadsheet.

Product Intel: Specialty Products

• Updated: Final Expense Product Details – A quick summary of the pertinent details around the Core Carrier’s Final Expense offerings.
• Updated: Juvenile Product Details – A summary of the products available for sale to those under the age of 18
• Updated: Middle Market SI Product Details – A snapshot of the Simplified Issue products available from the AIN Core Carriers. Focuses on modest face amounts and products that are priced to accommodate up to Table 4 risks at a Standard underwriting class, where speed and convenience are more important than price.
• Updated: Executive GI & SI Guidelines – The corporate owned and white collar multi-life markets are growing based on the need for effective, tax-favored savings vehicles for high income earners. Use this resource to understand program parameters from each of the AIN Core Carriers.

Product Intel: Term Products

• Updated: Available Riders – Term Products – A summary by Core Carrier of the various riders available on term products.
• Updated: External Term Conversion Programs – With all the consolidation and changes to conversion privileges in our business, these External Term Conversion programs can represent a more comfortable landing spot for clients seeking alternatives to the issuing carrier’s offering.
• Updated: Term Conversion Privileges – A summary of the current term conversion privileges by carrier.
• Updated: Term Face Reductions – Just how “manageable” is Term Insurance? Great question, and this reference focused on the rules around future face amount reductions to keep a client’s coverage in line with their needs can help you find the right carrier for your next case.

As the deadline for policy placement in order to qualify for a possible opt out of the Washington Cares Fund approaches, the AIN Core Carriers with significant business volumes continue to work diligently to approve and issue as many policies as possible. That said, there is likely to be a “crush” at some carriers as the end of next week approaches and all involved seek to place as many policies in force as possible. Read on for the details!

Given that the Washington Cares Act lacks specificity regarding the definition of having Long-Term Care coverage in place by October 31, 2021, to qualify for the opt out, each carrier has been left to interpret the legislation and apply policy and procedure based on that interpretation. This has resulted in varying protocols in place across the carrier landscape. Where available, AIN has assembled those protocols on AIN Essentials for ready reference. Links to these communications, where available, can be found below.

Carrier Policy on Backdating Washington Business

One area that is of particular interest and subject to varying interpretations is the ability to “backdate” policies to an effective date prior to the deadline even if they are not issued/in force on the actual day in question. While the carriers in question make no representations regarding Washington’s acceptance of such an approach, some will allow backdating for cases that can’t be approved, issued and placed in force prior to the deadline. What follows is a summary of carrier position on this single issue.

• Equitable:
  • Life products with an LTC Rider: Equitable has yet to declare their position on backdating these cases.
• Global Atlantic:
  • ForeCare: Backdating not available
• John Hancock:
  • Life products with an LTC Rider: Per normal backdating rules
• Lincoln Financial:
  • MoneyGuard: Backdating not available
  • Life products with an LTC Rider: Backdating not available
• Mutual of Omaha:
  • Traditional LTC: Backdating not available
  • Life products with an LTC Rider: Backdating not available
• Nationwide:
  • If your application has outstanding requirements, they must be submitted immediately for the application to have a chance of being placed in force prior to November 1, 2021. See below for details on the Life Pending Tracker and information regarding outstanding requirements.
  • While some applications will not be completed prior to November 1, 2021, we will continue to work on them after that date.
  • For currently pending policies issued on or after November 1, 2021, Nationwide will issue the policy with an effective date of October 28, 2021, while the proceeds will be applied on the issue date (or the date received if proceeds are received after the issue date).
  • NOTE: Nationwide cannot provide guidance as to whether policies with an effective date prior to November 1, 2021, but not issued prior to November 1, 2021, will satisfy the requirements of the WA Cares Fund. Please consult your tax professional.
  • Please see the most recent communication from Nationwide for additional details.
• OneAmerica:
  • Asset Care: Backdating not available
  • Annuity Care: Backdating not available
• Securian:
  • SecureCare: Backdating not available
• Transamerica:
  • Traditional LTC: Backdating not available
  • Life products with an LTC Rider: Transamerica has yet to declare their position on backdating these cases.

Carrier Guidance on Policy Placement

Given the uncertainty of the backdating strategy as well as it not being universally available, please see the following excerpts from Core Carrier communications regarding best practices for expediting Washington business. Clicking through to the full communication from the carrier, where available, is highly recommended.

• Equitable:
  • Life products with an LTC Rider: Please follow normal New Business protocols
• Global Atlantic:
  •  ForeCare: Please follow normal New Business protocols. Given that Global Atlantic has already issued the majority of their Washington cases, this is not likely to be an issue.
• John Hancock:
  • Life products with an LTC Rider: Please follow normal New Business protocols
• Lincoln Financial:
  • MoneyGuard:
    • To help ensure policy placement of your pending Lincoln MoneyGuard cases before November 1, 2021, all placement-restrictive requirements, including all premium(s), must be received at Lincoln in-good-order by October 25, 2021.
    • Your dedicated MoneyGuard Underwriting & New Business team will be working to place your Washington cases inforce through end-of-day October 29, 2021.
    • For cases in which any final requirements are received after October 25, processing will be handled on a first-in basis and are not guaranteed for placement by October 29, 2021.
    • Please see the most recent Lincoln Leader for additional details.
  • Life products with an LTC Rider:
    • Please follow normal New Business protocols. There are less than 15 of these cases still awaiting placement at Lincoln across AIN.
• Mutual of Omaha
  • Traditional LTC: Please follow normal New Business protocols. There are very few of these cases still awaiting placement at Mutual of Omaha.
  • Life products with an LTC Rider: Please follow normal New Business protocols
• Nationwide: CareMatters and Life products with an LTC Rider:
  • Have an illustration (even if it’s unsigned) on file with us so when we have an underwriting decision, we will be able to issue the policy at our next review. You can upload the illustration on the Life Pending Tracker.
  • Provide modal premium or EFT information with the permission to draft. With this we will place the case in force right away and collect any needed signatures when the policy is delivered.
  • Please see the most recent communication from Nationwide for additional details.
• OneAmerica: Asset Care and Annuity Care
  • Submitting these requirements electronically through OneSource Online will provide the quickest turnaround for issuing business:
  • An unsigned illustration showing how the policy should be issued.
  • Electronic premium via e-Check/Bank Draft Authorization (form 7-17159)
  • Please see the most recent communication from OneAmerica for additional details.
• Securian: SecureCare:
  • In order for SecureCare contracts to meet the stat of WA’s guidance of LTC coverage being “purchased” before November 1, we will need an underwriting approval issue requirements met (In Good Order) and money received by Securian Financial no later than 3 p.m. CST on Friday, October 29.
  • Securian Financial will accept premium in the following ways until 3 p.m. CST on Friday, October 29.
  • The quickest and easiest ways to ensure premium is received on time is to have the client either:
    • Pay online at: www.securian.com/initial-premium
    • Call in a premium payment at: 1-800-643-5728
  • The client may submit a check via mail, but it must be received by the deadline. We recommend using a shipment service to ensure the check’s delivery is expedited and tracking information is available.
  • Please see the most recent communication from Securian Financial for additional details.
• Transamerica:
  • Traditional LTC:
    • Please follow normal New Business protocols. There are very few of these cases still awaiting placement at Transamerica.
  • Life products with an LTC Rider:
    • Please follow normal New Business protocols. There are very few of these cases still awaiting placement at Transamerica in third party brokerage.