MetLife announced Wednesday it will suspend Individual Disability Insurance (IDI) sales under its U.S. Retail business, effective Sept. 1, 2016, which will be the final date to submit business.
In a statement to Insurance Forums, MetLife said the Company’s Group, Voluntary & Worksite Benefits business will continue to manufacture and sell Group Disability Insurance/Guaranteed Standard Issue.
“The suspension will help provide MetLife with the time and resources needed to properly separate the U.S. Retail business from the rest of the company. This announcement has no impact on existing MetLife customers with IDI policies, which will remain in force,” the statement said.
“Any changes of this type are negative to the industry and are ‘bad news,’” said Andrew Mathews, president of Berkshire Advisor Resource, Inc., a disability insurance brokerage in Denver. Mathews said the usual and customary first year commissions (FYC) – and where applicable any FYC bonus – will continue to be paid on policies placed before Oct. 31, 2016, in accordance with the terms and conditions of commission agreements/schedules. “They will also continue to pay commissions on renewals in accordance with the terms and conditions of your commission agreement/schedule. It is not known yet how this business will be serviced going forward,” Mathews added.
• Thoughts on this development? Please visit this thread: MetLife suspends IDI sales