Prudential Group will discontinue sales of new group long-term care insurance policies effective Aug. 1, 2012, except in Indiana, Iowa, Kansas, Louisiana and South Dakota, where it will continue for a period as required by state law.
The decision is based on the continuing effects of low-interest rates and the company’s desire to achieve appropriate returns, enhance its long-term risk profile and maintain sustainable profitable growth, in its core group life and disability lines of business, the company said.
Prudential will also notify clients of its intent to continue to accept group long-term care enrollments until June 30, 2013.
The terms and conditions of coverage provided under existing group long-term care insurance certificates will not change. This coverage is guaranteed renewable, and as long as premiums are paid on time and benefits are not exhausted, coverage will remain in place—although premiums may change on a class basis, subject to regulatory review.
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