Stand-alone LTCi sales are not impacted.

 

In our predictably fluctuating financial market economy we occasionally see changes within the insurance industry which catch us all off guard. We are processing the information from Genworth and waiting on analysis which will provide us with additional clarity of the impacts, if any beyond the obvious.

We are pleased to include a third party Genworth financial update from ALIRT Insurance Research which excellently summarizes the holding company and insurance subsidiaries status post earnings call on Thursday night.

Genworth ALIRT Summary

Here is what we know today…Genworth companies will no longer accept new applications for traditional life insurance and fixed annuity products, including:
  • Asset Builder Index Universal Life II
  • Foundation Builder Index Universal Life
  • Colony Term
  • Total Living Coverage (TLC)
  • Annuity Secure Living series

This change is effective for all states except Arkansas, South Dakota and Texas, where sales continue until appropriate regulatory notice and/or approval periods have run.

Here are the important take-away pieces from the announcement:

  • Last day of new business is March 7
  • Last day to pay for new business is May 4; anything not issued by this date will be closed
  • 1035 funds will be accepted past May 4 for a policy placed by that date
  • There is no effect on compensation.

Target does not have a significant number of pending Genworth Life and Annuity cases and we will be contacting producers effected individually. We appreciate you choosing Target as your General Agency and we have over 20 carriers in our stable, so do not hesitate to contact us for continued assistance. Claude and I are available for conversations about the announcement.Sincerely,

Matt McAvoy
President
913-403-5812

mattm@targetins.com

Claude Thau
Director of LTCi Funding Solutions
913-403-5824
claudet@targetins.com