With the rate refresh now effective in 32 states (9/1), one of the most common questions pertains to Partner Discounts and how that will be handled going forward if one partner has an inforce policy, (pre-rate refresh) and the other spouse is applying after the rate refresh.
The great news is there is a 6-month transition window from the rate refresh effective date to allow both partners to receive the full both insured partners discount.
We wanted to share the rules as well as the visuals to help with any conversations or questions you may receive. This will be included in this week’s Express as well.
Please see below.
Mutual of Omaha is allowing a 6-month period for policyholders to receive the “Partner – Both Issued” allowance when partners are issued policies with two different rates (one issued pre rate refresh, one issued post rate refresh). The rule will only apply if the second partner’s policy is issued within 6 months of the rate refresh effective date.
Below are scenarios based on a state with a rate refresh implementation date of September 1, 2020 and a six-month deadline of March 1, 2021.
- Partner A is issued a policy with old rates. The 15% “Partner – One Issued” allowance applies
- Partner B applies and is issued a policy with new rates on January 15, 2021 (within the six-month period)
- Partner A’s policy will receive the 30% old “Partner – Both Issued” allowance effective Partner B’s issued date
- Partner B’s policy will receive the 15% new “Partner – Both Issued” allowance
AFTER the 6-month period has passed, each partner will be issued the corresponding “Partner – One Issued” allowance. For example:
- Partner A is issued a policy with old rates and would receive the 15% “Partner – One Issued” allowance
- Partner B is issued a policy with new rates after the six-month period and would receive the 5% “Partner – One Issued” allowance
- Partner A’s allowance would remain at 15%
States with a refresh effective date of September 1, 2020 and partner allowance deadline of March 1, 2021 are as follows: Alabama, Alaska, Arkansas, Colorado, Georgia, Idaho, Illinois, Iowa, Kentucky, Louisiana, Maine, Michigan, Minnesota, Mississippi, Missouri, Nebraska, Nevada, New Hampshire, New Mexico, North Carolina, Ohio, Oklahoma, Oregon, Rhode Island, South Carolina, Tennessee, Texas, Utah, Virginia, Washington, West Virginia, and Wyoming.
Please let me know if there are questions or if we can be of assistance.
We thank you for your continued partnership!
-Charlotte Lyons, CLTC
770-394-3800 Ext. 2101