Effective December 11, 2018, Legal & General America announces new rates for OPTerm 10, 15, 20, 25 and 30 include a mix of decreases and increases. The rates for recent portfolio additions of 35 and 40 year durations have not changed. Rate decreases in more than 30% of pricing cells improved our ranking against core competitors.
Less than 2% of rates increased and concentrated in 10 and 15 year durations, at younger ages in Band 2.
Transition Guidelines:
New Business Submission and Pending New Business
Traditional Paper Applications
- New applications received in the home office by January 11, 2019 and applications currently pending will be issued with the most favorable premium for the insured.
- Applications received January 11, 2019 and later will be issued with the new rates.
- Banner policies issued with the new rates will use the new policy form # ICC18-OPTC. William Penn will continue to use form # OPTN-NY.
AppAssist
- Formal applications received by January 11, 2019 will be issued with the most favorable premium for the insured.
- In order for the policy to be eligible for prior rates, the drop ticket should be submitted with enough time for the interview to be completed and the application submitted by January 11, 2019.
- New rates will apply to all completed interviews and subsequent formal applications received January 11, 2019 and later.
- Banner policies issued with the new rates will use the new policy form # ICC18-OPTC. William Penn will continue to use form # OPTN-NY.
Reissue Requests
- Recently issued policies can be considered for reissue, with the new rates, provided the free look period has not expired and the request is received in the home office by January 10, 2019. Make
sure you indicate that you want the policy reissued with the new rates. - All reissue requests must be made in writing. Telephone requests
will not be accepted. - Banner policies reissued with the new rates will use the new policy form # ICC18-OPTC. William Penn will continue to use form # OPTN-NY.