Updates to LTC Policy Dating Process and Commission Timing

Mutual of Omaha is committed to providing you a product portfolio that meets the needs of your clients. With this goal in mind, we have made the following changes to get your LTC policies issued efficiently.

Currently, compensation is paid on LTC13 policies once premium has been collected and the policy is in force, regardless of any outstanding Post Issue Requirements (PIRs). Beginning February 23, 2020, compensation will now be paid at the time all PIRs are received and the case is considered placed.

Applications signed on or after this date will be effective on the date the policy is issued. Date of application date will no longer be a coverage effective date option.

Below are the PIRs that must be received to place the policy in force:

Outstanding Premium
Effective February 23, 2020, premium will no longer be accepted at time of application. Monthly EFT drafts will begin on the date of issue rather than upon receipt of the application. Total premium is due 60 days from issue.

Policy Delivery Acknowledgement
A Policy Delivery Acknowledgement (PDA) is currently required for five states: WV, LA, SD, NE and IL.

An amendment is required when a response to an application question is missing or has changed.  Amendments are also required when the policy is issued with a different risk class or benefits than applied. Changes to policy benefits made after policy issue and within the free look period will also require an amendment to be signed (the Benefit Change form included in the policy kit will not satisfy the amendment requirement).

PIR Follow-up Procedures for All Scenarios:

  • After 30 days, the case manager will reach out to the contact to outline any outstanding PIR(s)
  • If outstanding requirements are not received by 60 days, the policy will be cancelled back to issue.

Once implemented, these changes more closely align the LTC product line to how Mutual of Omaha handles PIR collection and commission payments on other product lines. The result will be business getting issued more quickly as well as limiting potential reissues and chargebacks.

If you have any questions regarding compensation changes, please contact Mutual of Omaha’s Distribution Compensation Support Center at 1-800-475-4465.

If you have any other questions about the application or PIR process, please contact Case Management at 800-275-5528.

Updates to LTC Policy Dating Process and Commission Timing