[MyOEBB] FW: Unum LTC Announcement

Tue Feb 7 11:01:04 PST 2012

Dear Educational Entities:

You may soon receive the message below from UNUM. OEBB just became aware
of this communication and clarified with UNUM ... this does not affect
OEBB plans in any way. Educational Entities will still be able to
purchase Long Term Care coverage through OEBB, the same as in the past.
If your entity does not yet offer this coverage, you may still elect to
add it in an upcoming plan year. If you currently offer LTC through
OEBB, your plans will not be affected in any way.

We apologize if their communication causes any confusion. Thank you.

Jackie Cowsill

Communications Coordinator

Oregon Educators Benefit Board

________________________________

Feb. 7, 2012

Dear valued customer:

After a careful and comprehensive review, we have decided to end sales
of new group long-term care contracts as of today, Feb. 7. Although we
recognize there is a market need for products to help individuals pay
for long term care expenses, current economic, pricing and risk factors
make it impossible for us to meet our financial and risk management
objectives.

The decision to discontinue selling new group long term care policies
will not affect current customers or impact the high quality of service
we provide to current policyholders and claimants. Additionally, we will
continue to accept new enrollees on existing contracts. 

Unfortunately, we are not the only insurer to reach this conclusion as
many others have now exited the long term care market given the
combination of historically low interest rates and the uncertainty of
risk and pricing trends.

We believe this decision is in the best interest of all of our
policyholders, as it allows us to sharpen our focus on the markets and
products that provide the greatest long term opportunity for our company
and are more compatible with our financial and risk management
objectives.  

Additional information is available here [see below]. If you have any
additional questions, please call our Customer Support area at
800-227-4165, Monday through Friday from 8 a.m. to 8 p.m. Eastern time. 

Thank you for your understanding, as we recognize that this change may
have an impact on you. We appreciate your continued support of Unum.

Sincerely,

Unum Long Term Care Operations 

Diana Scott

National Account Manager

Unum

111 SW Columbia Street, Suite 900

Portland, OR  97201-5851

503.721.9552

f 503.221.2258

dscott at unum.com

Privacy & Confidentiality of Information Notice: This communication may
contain non-public, confidential, or legally privileged information
intended for the sole use of the designated recipient(s). If you are not
the intended recipient, or have received this communication in error,
please notify the sender immediately by reply email or telephone at
503-721-9552 and delete all copies of this communication, including
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all applicable State or Federal requirements related to the privacy and
confidentiality of information, including the HIPAA Privacy guidelines. 

Unum is a registered trademark and marketing brand of Unum Group and its
insuring subsidiaries.

         Plan Admin Q&As - Unum's market exit/GLTC

After a careful and comprehensive review, we have decided to end sales
of new group long term care contracts as of Feb. 7, 2012.

Impact

*	This decision does not impact the high quality of service we
provide to current policyholders and claimants. We will continue to
administer existing policies, including accepting future enrollees on
those policies.
*	All current employees on claim will continue to receive their
benefits in accordance with the terms of their policy.
*	All future employee claim submissions will be honored and
processed according to the terms of the policy.

Additional Q&As:

Q. Isn't Unum a leader in this market and growing a strong business?

A. Unum is a leader in the GLTC market. We are serving more than 9,000
employer groups, covering approximately 800,000 insured employees and
their families. 

While we recognize there is a market need for products to help
individuals pay long term care expenses, current economic, pricing and
risk factors make it impossible for us to meet our financial and risk
management objectives.

Q. Will you accept any changes to existing group plans?

A.  We will continue to administer existing group plans, including
accepting future enrollees on existing policies. Existing contractual
provisions will still apply. 

Q. Will I notice any difference in my service relationship with Unum?

A. This change will not impact our current relationship with existing
customers. 

Q. How long will Unum support existing customers?

A. Unum will provide responsive service to its group customers until
they terminate their plans and discontinue paying premiums. 

Q. How long will Unum support my employees who are on claim?

A. Unum will support all eligible long term care claimants covered by
either individual or group policies who are on claim, or who will submit
claims in the future. These claims will be reviewed and administered
according to policy provisions.

Q. Will Unum adjust its staffing support for GLTC?

A. The customer service and claims teams will be fully staffed to meet
the needs of our existing group customers, and current and future
claimants. We have about 5,000 open claims for group and individual long
term care, and expect that number to increase as policyholder's age. 

Q.  Does Unum have any plans to increase rates on existing policies and
certificate holders? 

A. We continue to assess the experience of our inforce blocks to
determine if that is necessary. While we do anticipate some increases on
our older contract series, any increase needs to be approved by the
state insurance department before it is effective, so we are not in a
position to communicate any details about timing or magnitude. Unum will
provide ample lead time for customers to evaluate an increase if one is
approved for their contract series.

Q.   What do I tell my employees about this change?

A.  Your employees should be reassured that Unum is committed to
supporting these plans and the employees who are on claim or may be on
claim in the future. There are no changes to the coverage or contractual
rights of current insureds.

Q. Who should I call If I have questions about my Unum GLTC plan? 

A. If you have additional questions, please call our Customer Support
area at 800-227-4165, Monday through Friday from 8 a.m. to 8 p.m.
Eastern time.

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