AdminUpdate: OneAmerica New Business Service Update

FROM ONEAMERICA…

Update on year-end processing for Care Solutions applications, including Washington state business

As the end of the year approaches, we want to update you on our progress in responding to the significant influx of new business OneAmerica® received, driven in part by pricing and regulatory changes.

As we prioritize applications to most efficiently work through them, our New Business and Underwriting teams are currently focused on processing applications received prior to the pricing changes on our Asset Care product line that were announced on Aug. 25. Our focus will then shift to applications received for our new, repriced Asset Care products. These cases will be processed in the order in which they were received.

What you can expect for applications submitted on or prior to Sept. 24, 2021

  • To remain compliant with the new 7702 federal tax code requirements, applications submitted with pre-7702 pricing changes for Asset Care products can no longer be offered in 2022. Our goal is to issue as many cases as possible before year-end.
  • If processing extends into early January, backdating will be required to put the coverage in force. IMPORTANT NOTE REGARDING QUALIFIED FUNDS AND 1099s: A 2021 1099 will NOT be issued for those policies issued in 2022 but backdated to 2021. Instead, the 2022 1099 will be reflective of distributions for both 2021 and 2022, as a result of the backdating.
  • At this time, we expect these remaining cases will be issued in January and early February.
  • For applications submitted in the state of Washington: Based on the state’s timeline, the deadline to have coverage in force was Nov. 1, 2021. We’re evaluating the remaining volume of business currently in-house to determine how best to proceed. We’ll send a separate communication to those affected that outlines our decision.

What you can expect for applications submitted on or after Sept. 25, 2021

  • Applications not already in process are projected to start in mid- to late- December and continue into early February.
  • We anticipate that the strain on underwriters and vendors will continue through the first quarter, likely extending processing timeframes for fully underwritten cases. At this time, it’s estimated that our surplus volume should be fully processed by the end of March.

Find out more about these changes from OneAmerica…

ProdMod: OneAmerica Announces Changes to their Asset Care Portfolio

FROM ONEAMERICA…

We’ll be making two key changes to our Asset Care portfolio, effective Sept. 25, 2021, that will affect the single premium life products only. These actions are precipitated solely by the prolonged low interest rate environment, which has the largest impact on our single premium products. These changes will not affect any recurring or Continuation of Benefits (COB) premiums.

WHAT’S CHANGING

  • Adjusting the pricing of Care Solutions single premium whole life products; this change will apply to Asset Care Single Premium and Asset-Care I (California)
  • Reducing the annuity income rider bonus on our Annuity Funded Whole Life (AFWL) product from 20% to 10%
WHAT’S NOT CHANGING
  • Asset Care Recurring Premium
  •  Continuation of Benefits (COB)
  • Asset-Care III (CA)
  •  Asset-Care IV (CA)

7702 Updates for Asset Care and Asset-Care in California

Concurrently, we will implement changes required by the recent updates to 7702 federal tax code. The regulatory changes require a reduction in our non-forfeiture interest rate (cash value interest rate). These updates will also be effective Sept. 25, 2021, with the impacts as follows:

  • Asset Care (non-California): Changes have resulted in a slight increase to policy cash values with no impact to face amounts and long-term care benefit values.
  • Asset-Care in California: There will be a slight increase to cash values and little to no impact to the policy face amount and long-term care benefit values.

What you need to know: Transition rules

Sept. 24, 2021 will be the last day to submit Asset Care and Asset-Care I applications with the current single premium rates and the 20% AFWL bonus.

Despite these changes to a portion of our portfolio, we remain steadfast in our commitment to offering long-term care protection to your clients, with features such as optional lifetime benefits, joint benefits under a single policy, a variety of funding options and our personalized Care Benefit Concierge service to support clients and their families when a claim need arises.

AdminUpdate: OneAmerica Removes COI Requirement for Most Cases

FROM ONEAMERICA…

Effective immediately, we will no longer require a Certificate of Insurability (COI) to be completed at policy delivery if premium is submitted with the application and the policy is issued standard or better. As long as the premium is submitted with the application, doesn’t have a substandard rating, and bound via a temporary insurance agreement (such as in Cash with App cases), no COI will be required.

Additionally, we will no longer require a COI to be completed prior to initiating a request of funds or 1035 exchange. This requirement is currently still populating in our application system but will be removed shortly. In the interim, our New Business team or your case manager will waive the requirement at app entry.

As always, a COI may still be requested at the discretion of our underwriters and will continue to be included in the policy delivery packet to be completed when premium is collected upon policy delivery.

Find out more about these changes from OneAmerica…

ProdMod: OneAmerica Suspends All LTC sales in WA. 

FROM ONEAMERICA…

We have continued monitoring the risk environment created by the WA Cares Fund, and it is necessary to temporarily suspend sales of ALL OneAmerica® company products that meet the definition of long-term care in Washington state effective Aug. 14, 2021. In addition to Asset Care, communicated earlier this week, this suspension now includes Annuity Care, Annuity Care II, and Indexed Annuity Care.

New Business Submission Rules

  • Beginning Aug. 14, 2021, all asset-based LTC applications in Washington will no longer be accepted.
  • All eApp or paper applications must be received in the Home Office by close of business, 9:00 p.m. local time, Friday, Aug. 13, 2021.

Please note: Increased business volumes have delayed processing times on all WA cases. We cannot guarantee the current business in-house will be issued prior to the 11/1/2021 deadline for exemption from the WA Cares Fund.

To reiterate, OneAmerica is fully committed to the long-term care marketplace. We will communicate a future date for asset-based long-term care sales to resume in Washington to benefit our mutual clients.

Find out more about these changes from OneAmerica…

ProdMod: OneAmerica Suspends Asset Care Sales in Washington State

FROM ONEAMERICA…

Suspension of Asset Care Sales in Washington State

We have been monitoring the sales and regulatory environment created by the WA Cares Fund. It’s important for OneAmerica® to regularly assess risk to protect our ability to deliver on promises made today and long into the future. Accordingly, we have decided to temporarily suspend sales of our Asset Care product in Washington state effective Aug. 14, 2021.

New Business Submission Rules

  • Beginning Aug. 14, 2021, Asset Care applications in Washington will no longer be accepted.
  • All eApp or paper applications must be received in the Home Office by close of business, Friday, Aug. 13, 2021.
OneAmerica is fully committed to the long-term care marketplace. We will communicate a future date for Asset Care sales to resume in Washington to help ensure that our mutual clients have access to our asset-based long-term care strategies.

 

Find out more about these changes from OneAmerica…

 

AdminUpdate: OneAmerica Eases COVID Underwriting Restrictions

FROM ONEAMERICA…

At OneAmerica® we exist to be there for our customers when they need us most. For so many, the COVID-19 pandemic has been an especially critical time of need, and we are honored to have been able to provide our policyholders with products that offer protection, security and flexibility – even in such challenging times.

As we begin to emerge from the pandemic and continue to see conditions improve, we’re pleased to lift some of the COVID restrictions implemented in 2020. These updated limits for Asset Care are effective today, July 1, 2021:

  • Age 69 and younger
    • No restrictions
  • Age 70 and older
    • All products now available, bringing Asset Care Recurring Premium Whole Life, Asset Care with Return of Premium and Asset-Care IV (CA) back for active sales to these ages
    • Rated cases will still not be accepted
    • Annuity Care: All products remain available

Find out more about these changes from OneAmerica…

AdminUpdate: Expanded and Simplified Expedited Underwriting at OneAmerica

FROM ONEAMERICA…

Expedited Underwriting: Expanded and Simplified

With Asset Care® expedited underwriting, applicants who qualify can bypass medical exams and medical records, and policies move through underwriting and on to issue more quickly. Now, we’re expanding the program so more applicants can participate, and we’re simplifying the calculations that determine who qualifies. The changes apply to all new applications submitted on or after February 24.

What’s changing: Making expedited easier

By increasing the amount to underwrite limits for the expedited program, we’re giving more applicants access to easier, quicker underwriting. We’ve also eliminated the 1.5x multiplier previously used to determine the limits for policies with a COB rider, for a simpler calculation.

What’s not changing

Clients will still need to meet certain requirements to qualify for expedited underwriting. If they don’t, or if the case exceeds the new limits, full underwriting is still available.

Learn more

Our updated Care Solutions Process Guide is your go-to resource for expedited underwriting process and calculations. You’ll find Asset Care impairment guidelines with underwriting considerations (page 6-9) as well as full details on the underwriting process, requirements and how to calculate total amount to underwrite (pages 12-13).

Find out more about these changes from OneAmerica…

Updated: Year-End Processing Deadlines for All Core Carriers Now Available

With just over three weeks left before 2021 is upon us, we now have the final year-end deadlines for 2020 business from all the AIN Core Carriers. Please review the list below for additional details for each insurance company,

Important: These deadlines may or may not reflect the transition rules regarding AG 49A. Please see AIN’s AG 49A Resource for those rules and deadlines.


The pertinent 2020 year-end cutoff dates for the AIN Core Carriers can be found via the links below.

ProdMod: Changes Coming to Asset-Care for California Cases

Changes to Asset-Care® in California launching on July 25

OneAmerica® is committed to the asset-based long-term care market and to offering products that bring value to both our agents and the clients we serve together. To maintain the viability of our Asset-Care® product in California and continue offering it until the updated product is available in this state, we are making key updates starting July 25.

What’s changing

  • New, generally increased Continuation of Benefits (COB) rates will apply.
  • Base policy PEC will be reduced.

The base policy PEC change only affects applications submitted on or after July 25. Existing inforce policies are not affected by the PEC change, as all premiums are contractually guaranteed to remain unchanged for the life of the policy.

Transition Rules

  • July 24, 2020, will be the last day to submit Asset-Care (CA) applications with the current premium expense charges and COB rates.
  • All applications and 1035 paperwork (if applicable) must be received by the Home Office by close of business on July 24.

All funding (cash or 1035 exchange) must be received by the Home Office no later than 60 days after Underwriting approval.

Find out more about these changes from OneAmerica…

Formal Announcement from OneAmerica

 

AdminUpdate: OneAmerica Optimizes Interview Order Process

From OneAmerica…

Coming Soon!

Care Solutions LTCG interview auto-order for ALL applications

As we continue to make updates and improvements that enrich both client and agent experiences with OneAmerica®, we’re excited to announce an addition to our previously launched Care Solutions LTCG interview auto-order enhancement.

In March we implemented this feature for all electronic applications (eApps). Beginning on May 22, 2020, the auto-order feature will also be implemented for non-eApps. Read below for more on how this enhancement simplifies and shortens the application process for both clients and agents, no matter which application process you choose!

What you need to know

Starting May 22, whenever you submit an application — whether an eApp or non-eApp — the LTCG interview will be automatically ordered as part of the process. You will no longer need to contact LTCG to request a client interview!

Prepare for May 22

Remember, this enhancement is already live for eApps. For non-eApps, please continue to order LTCG interviews on any applications submitted until May 22. Thank you for doing business with OneAmerica. We look forward to continuing to enhance your experience with us in 2020!

 Find out more about these changes from OneAmerica…