The brokerage world is reeling from the news that Genworth is halting long-term care insurance and annuity sales through the broker general agency channel.
“We are deeply concerned about this course of action,” said Myra Palmer, chair of the board of directors of National Association of Independent Life Brokerage Agencies. “We are hopeful this is only a temporary course of action and access to any ongoing blocks of business will not be impacted.”
NAILBA will be requesting more information and “closely monitoring this situation,” she added.
The Genworth news was revealed in a Friday bulletin and includes the company’s Privileged Choice line of LTCi products, as well as its Income Assurance immediate annuity.
The change does not affect renewal commissions for “in-force business, pending business or related compensation, in-force policyholder servicing, or in-force policy contractual provisions and benefits such as conversion rights,” Genworth added.
All LTCi and annuity products will continue to be sold through other channels, Genworth said.
Like many insurers in the LTCi business, Genworth has struggled for years to keep its LTCi book financially viable after low initial pricing proved to be a miscalculation.
China Oceanwide Holdings Group Company Ltd. of Beijing is in the process of acquiring Genworth, a transaction that is supposed to be completed this week. However, the companies have pushed the deal completion deadline back eight times since the deal was first announced.
Here are some other dates announced by Genworth in its bulletin:
04/12/2019: Last day to receive pending new business requirements
05/31/2019: Last day to place pending new business in-force
05/31/2019: Pending applications closed that have not been issued in-force
InsuranceNewsNet Senior Editor John Hilton has covered business and other beats in more than 20 years of daily journalism. John may be reached at [email protected]. Follow him on Twitter @INNJohnH.
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