[LTC-Sales_Discussions] Question for the group

Wed, 29 Oct 2003 19:34:45 -0500

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Mr. Redfern:

I would seriously consider looking into this company's stability, strength,
underwriting experience, what types of policies have they written (more
indemnity vs. reimbursement), how loose were they and are they with their
underwriting, how large is their book of business, what age is their book,
what's their current commitment to staying in the individual LTCI market,
and the list goes on.  If I were looking into this for my own clients, these
are the questions I would need to have answered.  Then I would have to look
at the age, health, financials, etc., on an individual basis to determine
whether or not it made good sense to change them over to a "better" policy
offering more rate stability.  But be careful, it seems that there may be
more rate increases with several carriers coming down the pike!

May want to even consider products that offer guaranteed premiums - Like
Single-Pay, 10-Pays, 20-Pays.

Denise R. Molohon, CSA, LTCP
Long Term Care Benefits
dmolohon@indy.rr.com

  _____  

From: ltc-sales_discussions-admin@ltpcalums.com
[mailto:ltc-sales_discussions-admin@ltpcalums.com] On Behalf Of Earl Redfern
Sent: Wednesday, October 29, 2003 2:53 PM
To: ltc-sales_discussions@ltpcalums.com
Subject: [LTC-Sales_Discussions] Question for the group

I have just had another round of rate increases on in-force contracts I had
written with a company who shall remain nameless at this point. It is their
second rate increase in a year and a half. The first increase was for 25%
and the this one is for 35%. This puts such a strain on seniors who are on
fixed budgets. My question is this - in NC, where I live, there is now a law
establishing a cumulative cap on premiums for policies sold from this point
on. It varies by age and is a % of the original premium. Policies issued
before the law went into effect have no cap, however. Would you as an agent,
be more prone to replace these contracts now that that the cap law is in
effect if you had a company that had just had two rate increases in a short
time period? I realize that there are variables to consider, such as health,
cash flow, competitive prices, etc. I am just concerned that in my state
there will be more rate increases of non-grandfathered policies now that
this cap rule is in effect.Would be interested in your thoughts. 

R. Earl Redfern, CLU, ChFC, CSA,CLTC
[image]
7008 Harps Mill Rd., Ste. 101
Raleigh, NC 27615 

(T) 919.845.5315 (F) 919.845.5346 

Securities offered through Commonwealth Financial Network, Member NASD,
SIPC.
Advisory Services offered through Commonwealth Financial Network, Member
NASD, SIPC. 

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<DIV dir=3Dltr align=3Dleft><SPAN class=3D147062900-30102003><FONT =
face=3DArial=20
color=3D#0000ff size=3D2>Mr. Redfern:</FONT></SPAN></DIV>
<DIV dir=3Dltr align=3Dleft><SPAN class=3D147062900-30102003><FONT =
face=3DArial=20
color=3D#0000ff size=3D2></FONT></SPAN>&nbsp;</DIV>
<DIV dir=3Dltr align=3Dleft><SPAN class=3D147062900-30102003><FONT =
face=3DArial=20
color=3D#0000ff size=3D2>I would seriously consider looking into this =
company's=20
stability, strength, underwriting experience, what types of policies =
have they=20
written (more indemnity vs. reimbursement), how loose were they and are =
they=20
with their underwriting, how large is their book of business, what age =
is their=20
book, what's their current commitment to staying in the individual LTCI =
market,=20
and the list goes on.&nbsp; If I were looking into this for my own =
clients,=20
these are the questions I would need to have answered.&nbsp; Then I =
would have=20
to look at the age, health, financials, etc., on an individual basis to=20
determine whether or not it made good sense to change them over to a =
"better"=20
policy offering more rate stability.&nbsp; But be careful,&nbsp;it seems =
that=20
there may be more rate increases with several carriers coming down the=20
pike!</FONT></SPAN></DIV>
<DIV dir=3Dltr align=3Dleft><SPAN class=3D147062900-30102003><FONT =
face=3DArial=20
color=3D#0000ff size=3D2></FONT></SPAN>&nbsp;</DIV>
<DIV dir=3Dltr align=3Dleft><SPAN class=3D147062900-30102003><FONT =
face=3DArial=20
color=3D#0000ff size=3D2>May want to even consider products that offer =
guaranteed=20
premiums - Like Single-Pay, 10-Pays, 20-Pays.</FONT></SPAN></DIV>
<DIV dir=3Dltr align=3Dleft><SPAN class=3D147062900-30102003><FONT =
face=3DArial=20
color=3D#0000ff size=3D2></FONT></SPAN>&nbsp;</DIV>
<DIV dir=3Dltr align=3Dleft><SPAN class=3D147062900-30102003><FONT =
face=3DArial=20
color=3D#0000ff size=3D2>Denise R. Molohon, CSA, =
LTCP</FONT></SPAN></DIV>
<DIV dir=3Dltr align=3Dleft><SPAN class=3D147062900-30102003><FONT =
face=3DArial=20
color=3D#0000ff size=3D2>Long Term Care Benefits</FONT></SPAN></DIV>
<DIV dir=3Dltr align=3Dleft><SPAN class=3D147062900-30102003><FONT =
face=3DArial=20
color=3D#0000ff size=3D2><A=20
href=3D"mailto:dmolohon@indy.rr.com">dmolohon@indy.rr.com</A></FONT></SPA=
N></DIV><BR>
<DIV class=3DOutlookMessageHeader lang=3Den-us dir=3Dltr align=3Dleft>
<HR tabIndex=3D-1>
<FONT face=3DTahoma size=3D2><B>From:</B> =
ltc-sales_discussions-admin@ltpcalums.com=20
[mailto:ltc-sales_discussions-admin@ltpcalums.com] <B>On Behalf Of =
</B>Earl=20
Redfern<BR><B>Sent:</B> Wednesday, October 29, 2003 2:53 =
PM<BR><B>To:</B>=20
ltc-sales_discussions@ltpcalums.com<BR><B>Subject:</B> =
[LTC-Sales_Discussions]=20
Question for the group<BR></FONT><BR></DIV>
<DIV></DIV><FONT style=3D"FONT-SIZE: 11pt; FONT-FAMILY: 'Tahoma'" =
color=3D#000080=20
size=3D4><B>I have just had another round of rate increases on in-force =
contracts=20
I had written with a company who shall remain nameless at this point. It =
is=20
their second rate increase in a year and a half. The first increase was =
for 25%=20
and the this one is for 35%. This puts such a strain on seniors who are =
on fixed=20
budgets. My question is this - in NC, where I live, there is now a law=20
establishing a cumulative cap on premiums for policies sold from this =
point on.=20
It varies by age and is a % of the original premium. Policies issued =
before the=20
law went into effect have no cap, however. Would you as an agent, be =
more prone=20
to replace these contracts now that that the cap law is in effect if you =
had a=20
company that had just had two rate increases in a short time period? I =
realize=20
that there are variables to consider, such as health, cash flow, =
competitive=20
prices, etc. I am just concerned that in my state there will be more =
rate=20
increases of non-grandfathered policies now that this cap rule is in=20
effect.Would be interested in your thoughts.
<P>R. Earl Redfern, CLU, ChFC, CSA,CLTC<BR><IMG alt=3D[image]=20
src=3D"cid:147062900@30102003-0BA6"><BR>7008 Harps Mill Rd., Ste. =
101<BR>Raleigh,=20
NC 27615
<P>(T) 919.845.5315 (F) 919.845.5346
<P>Securities offered through Commonwealth Financial Network, Member =
NASD,=20
SIPC.<BR>Advisory Services offered through Commonwealth Financial =
Network,=20
Member NASD, SIPC.</B></FONT> </P></BODY></HTML>

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