Nationwide issues long-term care sales update in Washington
From Nationwide:
The Long-Term Services and Supports Trust Program, also known as the WA Cares Fund, becomes effective January 1, 2022, and will provide working residents of Washington an opportunity to vest into a basic level of benefits. The program will be financed by Washington workers, who will pay a premium assessment (a tax) through payroll deductions.
SHB 1323, as amended on April 10, 2021, specifies that employees who attest to having “long-term care insurance” as defined by RCW 48.83.020 prior to November 1, 2021, may apply for an exemption from the premium tax.
RCW 48.83.020, enacted by the Washington State Legislature, defines “long-term care insurance" for only the State of Washington, not for federal purposes. Washington has published a list of carriers approved to sell long-term care insurance, and Nationwide is included on this list. You can find more information at insurance.wa.gov/long-term-care-insurance-companies-approved-sell-washington-state.
Washington LTC Application Process Updates
Effective August 2, 2021, and through December 31, 2021, policies submitted in Washington state that include the Long-Term Care Rider on Indexed Universal Life or No-Lapse Guarantee Universal Life policies must use:
Electronic applications (no paper applications in Washington after August 2, 2021)
Intelligent Underwriting process
The digital interview
Applicable products
Policies being issued in Washington that elect the LTC Rider are subject to these requirements.
Indexed Universal Life products
No-Lapse Guarantee products
Products NOT impacted
Nationwide CareMatters® II
Survivorship Indexed Universal Life
Nationwide Variable Universal Life Accumulator
Nationwide Variable Universal Life Protector
NOTE: When selling through an intermediary, identifying them in the electronic application will help expedite processing.
No other states are impacted by this change.
Submission reminder
At Nationwide, we are here to help you place your life insurance and long-term care business. Nationwide can make no guarantees that policies submitted will be issued in time for individuals to meet the deadline set by Washington state. However, we believe that your best chance will be to submit applications by September 1, 2021.