Planning Tips and Carrier News for Advisors 

Mutual of Omaha- Updates to Policy Dating

Posted by LTCI Partners | Jan 22, 2020 10:10:41 AM
From: Steve Pike
Date sent 01/21/2020 11:01:25 am
Subject: Updates to LTC Policy Dating Process and Compensation Timing


 

From the Desk of

Steve Pike

 

Mutual of Omaha is committed to providing you a product portfolio that meets the needs of your clients. With this goal in mind, we have made the following changes to get your LTC policies issued efficiently. 
 
Currently, compensation is paid on LTC13 and LTC17W policies once premium has been collected and the policy is in force, regardless of any outstanding Post Issue Requirements (PIRs). Beginning February 23, 2020, compensation will now be paid at the time all PIRs are received and the case is considered placed.

Applications signed on or after this date will be effective on the date of issue. Application date will no longer be an effective date option.
 
Below are the PIRs that must be received to place the policy in force: 
 
Outstanding Premium  
Effective February 23, 2020, premium will no longer be accepted at time of applicationMonthly EFT drafts will begin on the date of issue rather than upon receipt of the application. Total premium is due 60 days from issue. 
 
Policy Delivery Acknowledgement  
A Policy Delivery Acknowledgement (PDA) is currently required for five states: WV, LA, SD, NE and IL. 
 
Amendments 
An amendment is required when a response to an application question is missing or has changed.  Amendments are also required when the policy is issued with a different risk class or benefits than applied. Changes to policy benefits made after policy issue and within the free look period will also require an amendment to be signed (the Benefit Change form included in the policy kit will not satisfy the amendment requirement). 
 
PIR Follow- up Procedures for All Scenarios:  

  • After 30 days, the case manager will reach out to the case contact to outline any outstanding PIR(s).
  • If outstanding requirements are not received by 60 days, the policy will be cancelled back to issue.   
Once implemented, these changes more closely align the LTC product line to how Mutual of Omaha handles PIR collection and commission payments on other product lines. The result will be business getting issued more quickly as well as limiting potential reissues and chargebacks.  
 
If you have any questions regarding compensation changes, please contact Mutual of Omaha’s Distribution Compensation Support Center at 1-800-475-4465. 
 
If you have any other questions about the application or PIR process, please contact Case Management at 800-275-5528.

 

Employee Photo

Steve Pike
National Sales Director - LTC, DI, CI
(952) 239-9865
Contact Me

 

For producer use only; not intended for the general public.

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Topics: Mutual of Omaha

Written by LTCI Partners

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