As faithful readers of Insurance Forums discussion threads know, Genworth has temporarily suspended sales of individual long-term care insurance and income Assurance Annuity products through the brokerage general agency (BGA) channel in all states, effective as of Monday, March 11.
Richmond, Va.-based Genworth said in a statement it made the move because sales through the BGA channel have already fallen sharply, in part because of the company’s low credit ratings.
Genworth announced in a bulletin March 7 that while the company will continue to sell these products through other channels. Effected products include:
- Privileged Choice Flex
- Privileged Choice Flex 2
- Privileged Choice Flex 3
- Privileged Choice Flex 3 – Element
- Income Assurance Immediate Need Annuity
This change does NOT affect the following:
- Renewal commissions for in-force business
- Pending business or related compensation
- In-force policyholder servicing
- In-force policy contractual provisions and benefits such as conversion rights
April 12 is the last day to receive pending new business requirements while May 31 will be the last day to place pending new business in-force, and pending applications closed that have not been issued in-force. Agents with application questions during the transition period are asked to contact their New Business Team representative.
Existing customers and their benefits will not be impacted by this change, the bulletin said. The company will also continue to sell group LTCI, and it will sell group LTCI through the same channels.
“Our commitment to helping Americans address the financial challenges of aging remains as strong as ever, and we look forward to bringing new products and services to market that will enable people who need care as they age live their lives as they wish, how and where they prefer to receive that care,” the statement said.
As a result of the suspension, news reports out of Virginia say Genworth is laying off about 80 employees – 35 in Lynchburg and 21 in Richmond. The rest are remote workers. Impacted employees will receive at least a 60-day notice of the layoff and are eligible to receive transition benefits. Employees in good standing can apply for any open position at Genworth.
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