Genworth Financial announced it will suspend sales of individual long-term care insurance products in California starting March 21 as the company awaits approval from state regulators for a new long-term care insurance product to replace them.
The suspended products are California Choice and Choice Partnership. They represented about 12 percent of Genworth's 2012 long-term care insurance sales, the company said.
Genworth is asking the state to approve a new product, called Privileged Choice Flex, to replace California Choice and Choice Partnership.
"We are working closely with the California Department of Insurance to approve Privileged Choice Flex with the goal of resuming sales in the near future," Pat Kelleher, president and CEO of Genworth Life Insurance Co., said in a press statement.
Kelleher said the company believes the suspension of sales is appropriate "in light of the return profiles on both the California Choice and Choice Partnership products. It is important that the products we offer are priced to balance the needs of our consumers with our desire to achieve long-term profitability."
In addition, Genworth plans to launch the new Privileged Choice Flex 2 product in 31 states on April 15.
The actions will have no impact on existing policyholders.