After the publication of our last article, “Should I maintain my Partnership Certification…?” Yes, No, Maybe!, we received many calls and emails regarding the status of the program. As we approach the unofficial beginning of summer with barbecue parties on Memorial Day 2017, what are they cooking in Sacramento now?
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Over the course of the last two years, we here at Senior Insurance Training Services are constantly being asked:
“Should I maintain my certification for selling the California Partnership for LTC Insurance?” or
“Should I get my certification to sell the California Partnership since my company doesn’t offer it” or
My Company does not allow me to offer the only company offering, so I don’t need it.”
Another comment is, “I only sell Hybrids; so I don’t need to be certified, Right?’ Yet another, “Because of the mandatory 5% compound inflation, built in feature, it’s too expensive!”
I have heard all these comments over the course of the last 23 years.
In 1986, Dr. Mark Meiners from the University of Maryland Center on Aging wrote a paper on the issues surrounding Long-Term Care and the ability of the insurance industry to provide affordable coverage.
In the late 80’s, when the LTC Insurance market expanded from twenty-five carriers to well over seventy-five, the average age of the buyer was 66, with over seventy percent married couples. They were being sold lifetime, unlimited nursing home only coverage with about $100 a day daily benefit with no inflation.
In 2016, we saw the California Partnership drop to one company.
We saw the downgrading in ratings for the Nation’s largest LTC carrier by a rating company because it repositioned $1.3 billion from Capital/Surplus to its LTCI reserves due to an in depth claims study.
On September 22nd and September 24th, Governor Brown signed into law SB 1384 and SB 1091 into law.
Both bills were delivered to the Governor ‘s office on Sept 9th and he had until Sept 30 to sign or veto the bills (it would go into law if he did neither). The bill received unanimous support in the legislature, but the Governor could have been skeptical, as in the past, especially when it come to the task force requirement.