Policies and Delivery Process

The steps below detail the policy delivery process – from finalizing the effective date to sending the completed delivery requirements to the carrier. These steps may evolve over time.

1. Potential for old effective dates

MassMutual has a unique procedure for setting an applicant's effective date. As noted on the Conditional Premium Receipt, an applicant's coverage becomes conditionally effective as of the date they complete their health interview or paramedical exam. This is beneficial for the applicant in that, if something happens or their health changes after this date, it will not affect MassMutual's underwriting decision.

One common issue with LTCi is the delay in obtaining medical records. MassMutual cannot issue a decision until all records are received. Sometimes the span between the effective date and decision/approval date can be 2-3 months, or more. In this case, the applicant is being charged for coverage they won't use. To save them this money, we can move their effective date forward, also called current dating.

2. Moving effective dates

When you receive the decision email from CA, they will also tell you what the effective date is. If you need to current date policies we try to move both applicants so they have the same date. We typically current date to the date we make the request. You can current date without involving the client as long as there is no age impact. However, don’t forget MassMutual's age criteria. When an applicant crosses their half-year birthday, MassMutual considers them their older age. So, if moving the effective date crosses this mark, the applicant's pricing will change. Click here for two examples of moving effective dates.

Sometimes it doesn't make sense to current date. The client may choose to current date one person but not the other. Or they may decide to current date one and move the other one as far forward as possible to their half-birthday. If changing age or having different effective dates is involved, email/talk to the client first.

Current dating may also come into play if you are running into a delivery deadline. Either the applicant has been unavailable, or they are filing an appeal, or they still aren't sure about purchasing the coverage. Current dating is the only way to buy more time to deliver the policy. See separate section on delivery deadlines.

To current date, send an email to status@ltcmassmutual.com. Type the policy #(s) in the subject field. Tell them you would like to current date these policies to mm/dd/yyyy. If the change results in a different age, you will need to attach a revised illustration.

3. Strict delivery deadline

The IRS code mandates that tax-qualified LTCi policies be delivered, and delivery requirements (delivery receipt, amendment if applicable, and balance of premium due) returned to the carrier, within 30 days of approval.

Sometimes this can be challenging to meet. First, it typically takes 4-5 business days to receive the policy (CA sends it to Madison who then sends it to you). If the client will be traveling or is just difficult to schedule, this becomes a time crunch. The only way to extend the deadline is to current date the policy because the new 'print date' is used to restart the 30 day clock. If we run into these situations, we may send the policy to the client via UPS and include a pre-paid UPS envelope so they can return the delivery requirements via Next Day UPS.

The client has a 30-Day Free Look Period which begins the day they sign the delivery receipt. If they are not satisfied with the policy, they can cancel before the end of the 30-day free look period and receive a full refund. However, delivery documents and balance of premium owed still need to be sent in before the Final Delivery Date shown on the Policy Delivery Transmittal.

4. Email client to schedule delivery when policy arrives

As soon as you receive the policy, email the client to schedule a delivery meeting. Here is a sample email for communicating to the client.

5. Make copy of all Policy Schedule pages (pages 3,3a for MM)

6. Underline effective date and inflation info on page 3 so it stands out for the client

7. Prepare other documents to go with policy

Prepare the following items to send along with the policy

We have had issues with the new plastic policy cases MassMutual is using. Most arrive in our office crunched and/or cracked. We are using a MassMutual corporate folder that can be obtained from WarehouseXpress (Item COR3569). There are two pockets inside plus a place for your business card. We put the policy in the right pocket and the informational pages in the left pocket. They fit inside a cardboard or padded flat-rate Priority Mail envelope.

8. Mail policy(ies) to client

We usually mail policies in a Priority Mail flat rate cardboard envelope. If we need to send a UPS envelope to expedite return, we use a larger padded mailer.

Organize pages in left pocket. Throw out Service Request page. 1st page is Claims Process, 2nd page is Policyholder copy of Delivery Receipt, order of rest of pages doesn't matter. If a copy of the Outline of Coverage is included, put that at the back.

On the front of each policy we clip documents that need to be returned (click here for a visual)

If there are two policies, we put the cover letter on top of the policies without clipping it to either contract. If there is time for regular return of delivery requirements, you can also clip a stamped, postage-paid #10 envelope to the front of one of the folders. If you need expedited return, we put the pre-paid UPS envelope at the back behind the two policies.

9. Hold delivery meeting

Here is a sample agenda we follow to conduct a delivery meeting.

10. Watch for return of delivery docs – set reminders

Make sure to stay on top of receipt due to the strict delivery deadline. You will receive multiple reminders from CA.

11. Mail delivery requirements to CA

12. Email client to confirm receipt

Here is a sample email we send to the client to confirm receipt of their delivery requirements and to thank them for their business.

13. Scan full Policy Schedule pages and email to Cary

When the policy is delivered, please email a copy of the full Policy Schedule (pages 3, 3a) to cmcgroarty@financialguide.com for tracking and reporting to Wells Fargo. Also include in the email the name of the employer group the client is affiliated with and whether the policy is a new policy or a replacement policy.