Nationwide: Suspending All Individual Life Insurance Sales in WA Until Further Notice
Nationwide is suspending all individual life insurance sales in Washington state until further notice
The passage of the WA Cares Fund in Washington state has created an opportunity for people to consider obtaining long-term care coverage. Because of the increasingly intense interest in Nationwide solutions, the application volume they have received has far exceeded expectations. To provide the best possible experience for all customers, Nationwide must notify you of the following change to new business applications in Washington.
Effective immediately, Nationwide is temporarily suspending sales of all individual life insurance products, including Nationwide CareMatters®, in Washington state until further notice.
All Washington applications received after 5:00 p.m. ET, August 10, 2021 will not be processed. No exceptions will be made. At this time, while Nationwide is making every attempt possible to process all business that has been received, they cannot guarantee the issue date for any previously submitted applications in Washington.
Nationwide will resume accepting new business as soon as possible, but it may not be until after November 2021.
In order to manage the volume of applications already received, Nationwide has created a separate underwriting and case management team dedicated to handling life applications from Washington. All other states will continue to follow the normal underwriting process.
Guidelines for submitting new long-term care business
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.1
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.2
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
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 for long-term care business
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 employees to meet the deadline set by Washington state. However, we believe that your best chance will be to submit applications by September 1, 2021.
Give us a call at 1-800-792-6795 if you have any questions about these updates.