Genworth continues to invest in enhancing underwriting practices that help make long term care insurance more accessible to consumers. In January and February, we enhanced underwriting with the expansion of allowable impairments and introduced a Counter Offer Program.
On April 4, we will make significant changes to underwriting requirements to improve the new business experience for our sales partners and consumers. These changes will help streamline our new business process and make doing business with Genworth faster and easier.
On April 4, Genworth will make the following improvements:
Reducing Use of Examiner Reports and Labs
Examiner reports and labs will no longer be automatic ally required for all applicants. We will only request examiner reports and labs for applicants age 64 and under if an underwriter believes additional requirements are needed. This will allow us to significantly shorten the cycle time for an underwriting decision on applicants age 64 and under. Examiner reports and labs will continue to be required for applicants over age 64.
Introducing an Underwriter Phone Interview
Once an application is received by the Home Office, a phone interview will be scheduled and conducted with the applicant by a Genworth underwriter. By using an underwriter during this step in the process, an informed decision can be made earlier on whether additional requirements are needed. We expect this new process to reduce requirements ordered and to help make a faster underwriting decision.
In order to facilitate this new streamlined process, we are no longer offering the ability for partners to order medical exams/labs. Only a Genworth underwriter will determine what requirements are needed. This will help expedite the process.
Introducing a Select Only Underwriting Segment for Smaller Coverage Amounts
The Select Only Underwriting Segment helps producers eliminate the guesswork in determining an underwriting category to quote for smaller coverage amounts. This change will further streamline an underwriting decision since underwriters will only request and review the requirements needed to determine whether an applicant qualifies for the Select Only Segment, rather than for other underwriting categories.
All applicants approved for a long-term care insurance policy with coverage that falls within the following parameters, will receive an approval for the Select underwriting category.
• Total Coverage Amount – up to $100,000
• Benefit Period – no more than 2 years
• Inflation Protection – none or 2% compound inflation
Updated Underwriting Requirements
In addition to all of these changes, we are updating requirements by age. The grids found within the announcement outline the new underwriting requirements. One grid applies to all plan designs other than the Select Only Underwriting Segment. The second grid applies only to the Select Only Underwriting Segment. These requirements are only a guide. An underwriter may choose to order additional requirements at any age if he or she believe additional requirements are warranted. For example, they may determine an examiner report and labs are needed for an applicant that is 40 years old (despite the grid not reflecting this for age 40).
When Genworth receives all materials necessary for underwriting in the Select Only Segment, our underwriters will only review the application materials to determine whether the applicant qualifies for coverage. This will streamline the Select Only Underwriting Segment and reduce turn-around times.
Applications received by the home office on or after April 4, 2016 will be reviewed under the new guidelines.
These updates will be incorporated into Genworth’s online Field Underwriting Tool, eValuate™ and into the TrueView Underwriting℠ guides. Both resources will be available April 4, 2016.