JM NEWS
Transamerica: Suspension of Transcare® II AND III in MA
Posted by Justin Jurs in News | 0 comments
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| MASSACHUSETTS NOTICE: SUSPENSION OF TRANSCARE® II AND III |
| As you are probably aware, the experience with certain legacy blocks of long-term care (LTC) has been substantially worse than originally anticipated, at pricing, due to lapse rates being much lower than originally expected and benefit utilization being much higher than originally expected. As you know, this issue is not specific to Transamerica; the entire LTC insurance industry is faced with the same challenges and is seeking to address them. |
| The poor performance of these blocks has led Transamerica to seek actuarially justified rate increases around the country, including in the Commonwealth of Massachusetts. While most states are working with carriers to address these challenges, the Massachusetts Division of Insurance has for many years refused to approve actuarially justified rate increase requests as a matter of principle. Under these circumstances, and as we have informed the Division, we cannot justify continuing to write new LTC business in Massachusetts while these circumstances persist. Please know that this decision was not made lightly, and we continue to actively support a regulatory environment in Massachusetts that will allow Transamerica to resume LTC sales in the commonwealth, on a sustainable basis, and provide consumers there with all the benefits and advantages that this critical solution can bring. |
| All TransCare® II and TransCare® III drop tickets/ITBs and applications must be received in our home office no later than Midnight CT Tuesday, November 14, 2017. For all Massachusetts based association cases, the case will remain open and will allow non-Massachusetts residents to continue to apply. |
| Previously saved quotes on TransQuote® will no longer be available starting November 15, 2017. |
| Thank you for your patience as we work to provide LTC policies that best reflect the needs of your clients and state requirements. |
| Thank you for your business and your trust in Transamerica Life Insurance Company. For questions related to this announcement or other assistance with Long Term Care, please contact your dedicated Transamerica sales desk. |