Prudential Group Insurance, a division of Prudential Financial Inc., announced on Wednesday that it plans to stop selling group long-term care policies in most states, effective Aug. 1, 2012.
The Newark, New Jersey-based insurer will continue writing new policies in Indiana, Iowa, Kansas, Louisiana and South Dakota for varying periods of time dictated by state laws, according to a statement from the company.
Existing policies will remain in effect and renewable, provided an employer's premiums are paid on time and its policy limits are not exhausted.
However, Prudential said it will cease accepting new enrollments to those plans after June 30, 2013.
"Prudential is committed to ensuring that current group long-term care insurance clients and plan participants will continue to receive quality service," the company said in its statement.
Prudential said its decision to wind down the group long-term care products was a reflection of depressed interest rates, which have negatively impacted the bond investments the insurer relies on to fund its claim payouts.
The company's exit from the group long-term care marketplace comes after its announcement in March that it would stop accepting new accounts in the individual long-term care market.
Matt Dunning writes for Business Insurance, a sister publication of Workforce Management. To comment, email editors@workforce.com.
Stay informed and connected. Get human resources news and HR features via Workforce Management's Twitter feed or RSS feeds for mobile devices and news readers.
