BULLETIN: Life Insurance Product Changes Key Transition Dates & Rules

Transcription

1 BULLETIN: Life Insurance Product Changes Key Transition Dates & Rules genworth.com October 22, 2012 Effective: 10/22/2012 States: All Providing life insurance protection solutions to help close the coverage gap for the Main Street market is, and always has been, our mission. Even in the face of sustained low interest rates and an evolving regulatory environment, we will remain true to our stated plan. As we balance our resources to maintain existing products and plan future offerings, we are announcing several changes to streamline our current product portfolio: Effective October 22, 2012 we will launch our new traditional term product Colony Term 10, 15 and 20 to replace Colony SM Term UL, except in New York. We are pleased to bring the 15-year coverage period back to the market. On November 12, 2012, we will expand and reprice GenGuard UL. By combining the features of Colony SM LifeLong UL and GenGuard UL into one product, the new GenGuard UL is a more comprehensive solution offering up to lifetime benefit coverage (to age 121) for single, short and level-pay planned premiums. On December 7, 2012, GenGuard UL will serve as the new conversion product,* replacing Lifetime Protector SG II, in all states except in New York, where Lifetime Protector SG NY II continues as the conversion solution. In addition, we will remove the following products from the market: Colony SM Term UL NY, effective October 22 and GenGuard SUL & GenGuard SUL NY and GenGuard NY, effective November 12. If you have any questions, please contact your agency, Genworth representative or our internal sales desk at option 3, option 1. Looking ahead, the value we bring to Main Street will continue to grow. In 2013, we will launch and expand solutions for the two fastest growing life insurance product lines index universal life and linked benefit insurance. *Variations may apply where Lifetime Protector SG II will still be the conversion product. Genworth Financial companies include: Genworth Life and Annuity Insurance Company, Richmond, VA Genworth Life Insurance Company, Richmond, VA Genworth Life Insurance Company of New York, New York, NY Only Genworth Life Insurance Company of New York is admitted in and conducts business in New York. Long term care insurance products issued by Genworth Life Insurance Company and in New York by Genworth Life Insurance Company of New York. FOR PRODUCER/AGENT USE ONLY. NOT TO BE REPRODUCED OR SHOWN TO THE PUBLIC Genworth Financial, Inc. All rights reserved. Genworth, Genworth Financial and the Genworth logo are registered service marks of Genworth Financial, Inc /12/12

2 Key Transition Dates Rates Effective & Available Last Application Received Date Colony Term 10, 15 & 20 Launch GenGuard UL Expansion & Reprice Oct. 22, 2012 Nov. 12, 2012 Nov. 9, 2012 (for old product) Colony Term UL & Colony Term UL NY, GenGuard SUL & GenGuard SUL NY, GenGuard UL NY, Lifetime Protector SG II Key Transition Dates Nov. 9, 2012 Policies Issued by: (COD cases only) Dec. 7, 2012* Dec. 7, 2012* Lifetime Protector SG II: Last day to receive Policy Change Form Part II at home office. Underwriting & Issue Requirements Target Date Last Date for Policy Effective Date, Policy Delivery & Requirement Receipt Processing of Pending Applications not issued by Dec. 7, 2012 (COD cases only) Nov. 21, 2012 (Received at home office to have best chance of policy issued prior to reprice) Dec. 31, 2012 (Requirements must be received at home office) GenGuard UL: The product will be the new GenGuard UL with new pricing. Nov. 21, 2012 (Received at home office to have best chance of policy issued prior to discontinuation) Dec. 31, 2012 (Requirements must be received at home office) Colony Term UL: The product will be new Colony Term with equivalent duration. & Lifetime Protector SG II: The product will be GenGuard UL with new pricing Colony Term UL NY, GenGuard SUL & GenGuard SUL NY and GenGuard UL NY: The product no longer available. Applications will not be processed. *Terms of the TIAA (Temporary Insurance Application Agreement) will govern the process, including policy dating, of applications with a valid TIAA signed prior to Jan. 1, If we are required to return money on a TIAA case after Dec. 7, 2012, the TIAA will no longer be effective and transition rules for COD (cash on delivery) cases will apply. 2

3 Transition Rules Here are the important dates regarding these product transitions: Quoting and Point of Sale Monday, October 22, 2012 Monday, November 12, 2012 Monday, December 10, 2012 Colony Term 10, 15, 20 WinFlex Web, WinFlex Desktop, Life Quick Request SM (LQR) and ilqr updated to include Colony Term 10, 15 and 20 Colony Term UL & Removed from quote engines, e.g., VitalTerm, ipipeline, and Compulife. Removed from LQR and ilqr GenGuard UL Quote engines - VitalUL, ipipeline, Compulife - updated with new pricing LQR updated with new pricing WinFlex Web and WinFlex Desktop updated with new pricing. GenGuard UL prior rates will remain available to work through pending applications only. GenGuard UL NY Removed from Quote engines, e.g., VitalUL, ipipeline, Compulife Removed from LQR, GenGuard SUL, GenGuard SUL NY & GenGuard UL NY Lifetime Protector SG II and GenGuard UL Conversion Availability Removed from WinFlex Desktop and WinFlex Web Lifetime Protector SG II removed from WinFlex Desktop and WinFlex Web. GenGuard UL conversion becomes available as a product selection. 3

4 New Applications Friday, November 9, 2012 (the last day that we will accept an applications for the listed products) Colony Term UL GenGuard SUL, GenGuard SUL NY & GenGuard UL NY GenGuard UL Prior Rates Applications received after November 9, 2012 will be processed as Colony Term and require an amendment on delivery. Applications received after November 9, 2012 will not be processed. Applications received after November 9, 2012 will be processed as GenGuard UL with revised rates. Any applications received for Colony LifeLong UL will require an amendment on delivery. Pending Applications We will not issue the following products with effective (policy) dates in 2013: Colony Term UL, GenGuard UL with prior rates, GenGuard UL NY,, GenGuard SUL and GenGuard SUL NY, and Lifetime Protector SG II.* *Variations may apply where Lifetime Protector SG II will still be the conversion product. COD Cases No Valid Temporary Insurance Application Agreement Wednesday, November 21, 2012 Friday, December 7, 2012 (the final day we will issue the listed products if we do not have money and a valid TIAA) Colony Term UL, Colony Term UL NY,, GenGuard UL - Prior rates, GenGuard UL NY, GenGuard SUL, GenGuard SUL NY Colony Term UL, non New York GenGuard SUL, GenGuard SUL NY GenGuard UL NY, & Colony Term UL NY GenGuard UL - Prior Rates and Lifetime Protector SG II Lifetime and Protector SG NY II 4 All underwriting and issue requirements should be received at Genworth s home office to have best opportunity for policy to issue prior to transitioning to new product. Applications not issued on or before December 7, 2012 will be processed as the Colony Term product most closely resembling the Colony Term UL policy applied for and require an amendment on delivery. Applications for which no policy is issued on or before December 7, 2012 will not be processed. Applications not issued on or before December 7, 2012 will be processed as the GenGuard UL with revised rates. will require and amendment on delivery Outside New York Policy Change Form - Part II received on or after December 7, 2012 will be processed and issued as GenGuard UL with revised pricing. New York Lifetime Protector SG NY II will continue to be available for term conversions

5 Applications with a Valid TIAA The terms of the TIAA will govern processing, including policy dating, of applications for which we have a valid TIAA signed prior to January 1, If after December 7, 2012, we are required to return money on an application with TIAA, the TIAA coverage will end and the transition rules for COD cases will apply Exchanges The transition rules for 1035 exchanges mirror those stated above with the following important addition: For 1035 exchanges for which there is no valid TIAA, we must be in a position to initiate surrender on or before December 15, Otherwise, we will continue processing the applications under the new product described above and notify all interested parties of available options. Reopens and Reissues Any reopen requests received after November 9, 2012 will be processed as new applications and transition rules for new applications will apply. Reissue requests will be evaluated on an individual basis. Policy Dating, Acceptance and Delivery Friday, December 31, 2012 Colony Term UL & Colony Term UL NY GenGuard SUL & GenGuard SUL NY GenGuard UL prior rates & GenGuard UL NY Lifetime Protector SG II (Non-NY)* The policy must be dated, delivered and we must receive all outstanding requirements, appropriately dated, by December 31, Otherwise, we will withdraw our offer and no insurance will go into effect. No exceptions. *Variations may apply where Lifetime Protector SG II will still be the conversion product. 5

6 Important Information These are partial product descriptions. To accurately present these products you must fully understand their features, benefits and limitations, which are explained in more detail in the products feature guide. Only the policy contains the actual terms and conditions of coverage. All guarantees are based on the claims paying ability of the issuing insurance company. All products and their riders and benefits are subject to their policy forms and to issue limitations. Products, riders and benefits may not be available in all states. Prior to engaging in a 1035 exchange, your clients should carefully consider a number of factors including the features and crediting rate(s) of their current product, applicable surrender charges, any new surrender charge period on the purchase of a new product, as well as the various features and crediting rate(s) of the new product. Representatives should carefully consider whether a replacement is in the best interest of their client before making a recommendation to replace the client's existing product. GenGuard UL, Colony SM Term UL, Colony SM Lifelong UL, and Lifetime Protector SG II are flexible-premium, adjustable life insurance policies (commonly known as universal life insurance). GenGuard SUL is a last survivor flexible premium adjustable life insurance policy (commonly known as survivorship universal life). Colony Term is term life insurance. GenGuard UL: Policy Form No. ICC09GA1000 or GA et al. (Genworth Life & Annuity) GenGuard UL: Policy Form No. ICC09GL1000 or GL et al. (Genworth Life) GenGuard UL NY: Policy Form No. GY ; available only in NY (Genworth Life of New York) GenGuard SUL: Policy Form No. GLAULLTD0408 et al. and Rider Form No. GLAULRPPR0308 et al. In Texas, Policy Form No. ICC09GA1001 and Rider Form No. ICC09GA100R (Genworth Life & Annuity) GenGuard SUL NY: Policy Form No. GNYULLTD0408 and Rider Form No. GNYULRPPR0109; available only in NY (Genworth Life of New York) Colony SM Term UL: Policy Form No. ICC09GA1002 or GA et al. (Genworth Life & Annuity) Colony SM Term UL: Policy Form No. ICC09GL1002 or GL et al. (Genworth Life) Colony SM Term UL NY: GY ; available only in NY (Genworth Life of New York) Colony SM LifeLong UL: Policy Form No. ICC09GA1002 or GA et al.(genworth Life & Annuity) Colony SM LifeLong UL: Policy Form No. ICC09GL1002 or GL et al. (Genworth Life) Lifetime Protector SG II: Policy Form No. GLAULFX0108 et al. or GLAULFXCNV0708 et al. (Genworth Life & Annuity) Lifetime Protector SG II: Policy Form No. GLIULFX0108 et al. or GLIULFXCNV0708 et al. (Genworth Life) Lifetime Protector SG NY II: Policy Form No. GNYULFXCNV708; available only in NY (Genworth Life of New York) Colony Term: Policy Form No (96) et al. or 1421 et al. (Genworth Life & Annuity) Colony Term: Policy Form GE-1420 et al. (Genworth Life) The name Colony used with life insurance products is a Genworth service mark. Death-benefit guarantee refers to a conditional guarantee that, if the conditions are met, can keep the policy in force even if policy values do not. Certain policy rights, if exercised, can end the guarantee. 6