Change in ESP Participation Requirements Effective July 19, 2011

Prudential Long-Term Care is modifying the participation requirements of its Employer-Sponsored Programs (ESP) for LTC3 and LTC Evolution. Effective Tuesday, July 19, 2011, ESP cases must have at least 10 employee lives to be considered for Simplified Underwriting.

NEW group size participation and underwriting requirements are as follows:

• Two to nine employees: Full underwriting. No minimum participation requirement.
• 10 to 250 employees: Ten employees must be issued for Simplified Underwriting.
• 251 and more employees: Four percent (4%) of eligible employees must be issued for Simplified Underwriting.

For an ESP case to qualify under the current group size participation requirements, case approval forms need to be received and approved by the Prudential ESP team by Monday, July 18, 2011 and the applications must be signed and received in New Business by Monday, September 12, 2011. There will be no exceptions.

These modifications will allow us to continue to provide comprehensive, quality LTCi coverage that employers, small business owners, and association sponsors can offer as an enhancement to their benefits program. In addition to adding a valuable new benefit, this will also help them attract, retain, and reward employees and loyal members. We believe this change will keep our program competitive with most other carriers, will enable us to continue to provide comprehensive, quality LTCi coverage; and will help protect us from adverse selection.

ESP Program Guidelines

• ESP discount - 5% for employer-sponsored groups with two or more eligible employees for LTC3.
• Simplified Underwriting available for employer-sponsored groups with 10 or more eligible employees
• Employees must be actively-at-work and between the ages of 18-65 for Simplified Underwriting.
• Simplified Underwriting for actively-at-work spouses/ partners where the employer is paying for a minimum level of benefits or premium for employees and spouses/partners.
• Spouses/partners do not count toward the minimum participation. Minimum participation can only be met with employees.
• Minimum participation requirement for list bill in employer-sponsored cases is 10 lives.

We understand how valuable your time is so we're providing you with the following list of groups prone to Underwriting decline for ESP and Affiliation so you can focus your attention on those groups that are more likely to get a favorable response from Underwriting.

• Agriculture, Livestock, Fishing
• Asbestos
• Atomic/Nuclear Energy
• Auto Wreckers/Salvage
• Aviation
• Bars, Liquor Stores
• Building and Trade Construction
• Casinos
• Charitable Organizations
• Chemicals
• Explosives
• Food Service
• Forestry
• Longshoremen/Port workers
• Marine Salvage and Towing
• Mining/Quarrying
• Oil and Gas Exploration
• Public Safety (fire/police)
• Seasonal
• Certain Sports Teams
• Trucking
• Warehouse

For more information about Prudential Long-Term Care's Employer Sponsored or Affiliation/Association Programs, please contact Madison Brokerage at 888-539-3232.

For the Education of Producers/Brokers Only. Not for Use with the Public. Long-Term Care Insurance is Issued by The Prudential Insurance Company of America, Newark, N.J.
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