California Partner Allowance Guidelines

Mutual of Omaha is allowing a 6-month period for policyholders to receive the “Partner – Both Issued” allowance when partners are issued policies with two different rates (one issued pre rate refresh, one issued post rate refresh). The rule will only apply if the second partner’s policy is issued within 6 months of the rate refresh effective date.

Below are scenarios based on a state with a rate refresh implementation date of April 1, 2022 and a six-month deadline of October 1, 2022.

  • Partner A is issued a policy with old rates. The 15% “Partner – One Issued” allowance applies
  • Partner B applies and is issued a policy with new rates on June 15, 2022 (within the six-month period)
    • Partner A’s policy will receive the 30% old “Partner – Both Issued” allowance effective Partner B’s issued date
    • Partner B’s policy will receive the 15% new “Partner – Both Issued” allowance

View Diagram Here
AFTER the 6-month period has passed, each partner will be issued the corresponding “Partner – One Issued” allowance. For example:

  • Partner A is issued a policy with old rates and would receive the 15% “Partner – One Issued” allowance
  • Partner B is issued a policy with new rates after the six-month period and would receive the 5% “Partner – One Issued” allowance
    • Partner A’s allowance would remain at 15%

View Diagram Here

California Partner Allowance Guidelines