Note to Intermediaries:

1. Note to Intermediaries: This suggested presentation material is for guidance only. You should always check that information presented is up to date and check with your advisers that your material complies with the legal and regulatory requirements applicable to you. INT004 26/04/06

2. What is Group Income Protection (GIP)? • Group Income Protection is a policy taken out by you, that will ensure your workforce continue to receive a regular income should illness or accidental injury prevent them from working* • In short, GIP can reduce the effect an absent or injured employee has on a company’s profits. * Some types of illness or accidental injury may not be covered.

3. Absenteeism – a rising cost for UK industries • 168 million days were lost through sickness absence in 2004, with the estimated cost to UK firms being around £12.2 billion1 • The cost of absence is around £601 per employee, per year2 • There were 167,900 people aged between 20 and 64 who had been claiming State Incapacity Benefit between 6 months and 1 year, who were incapacitated on 28 February 20053 • Long term absence in the workplace accounts for a third of the total working time lost to absence each year.4 1 Absence and Labour Turnover 2005, CBI, 2 CIPD Annual Survey Report 2005 3 IAD Information Centre (DWP) 5% sample 2005, 4 CBI, 21 May 2004.

4. How GIP protects your business • If insured employees are absent through illness or injury*, the policy may pay you, the employer, a proportion of their monthly income until they are well enough to return to work or they reach the scheme termination age (usually normal retirement age) or they die whichever is earlier** • It allows you to budget for long-term sickness absence • It can be used to help cover the cost of sick pay or even replacement staff • It removes the moral dilemma of how long to go on paying the absent employee • You are perceived as a caring and considerate employer. * Some types of illness or accidental injury may not be covered. ** subject to the terms and conditions of the particular policy

5. Adding employee value through GIP • You can give employees covered by GIP peace of mind that should they suffer long term illness or injury their salary may be paid • It’s an attractive benefit to existing staff and can assist recruitment • It may help ensure financial security during a difficult time • Additional cover available to cover the cost of Pension and National Insurance contributions*. * subject to the terms and conditions of the particular policy

6. Group Income Protection from Aviva Details of our Group Income Protection policy form a summary only. Full details of standard cover and exclusions can be found in the Policy Wording, a specimen copy of which is available on request. Non standard terms may apply. Applications are required.

7. How Group Income Protection from Aviva can really add value • Employee rehabilitation and a speedier return to work • Early intervention through our 24 hour GP Helpline and 24 hour Stress Counselling Helpline, can help identify issues before they become a problem* • We can also provide your employees with access to Personal Health Manager - a revolutionary online self assessment tool, providing expert advice to help your employees lead a healthier lifestyle*. *Personal Health Manager, GP Helpline and Stress Counselling Helpline are available on the unit-rated GIP Policy. Calls may be monitored and/or recorded.

8. How Group Income Protection from Aviva can really add value • Our Disability Benefit Advisers can hold face-to-face visits offering practical advice on helping your employees return to work • Amongst other things this can help you to understand your employee’s needs on returning to work and whether or not you need to make ‘reasonable adjustments’ in line with the Disability Discrimination Act requirements.

9. How much does GIP from Aviva cost? • Group Income Protection can cost as little as 0.5% of your total payroll • …and you could receive up to an additional discount if you hold a Group Private Medical Insurance Policy* • What’s more, the premiums are a deductible business expense (under current UK tax rules 03/2006). * Discounts are for at least the first two years of a Group Income Protection scheme and are applied to the net premium after any other discounts and charges. Where Private Medical Insurance covers the same number of lives as the Group Income Protection scheme.

10. So what’s stopping you? Aviva’s GIP Policy Benefit Details: • Scheme size minimum of 3 employees • Benefit levels overall maximum 300k (including pension contribution) • Termination ages 50 to 65 • Escalation rates 3%, 5% or Limited Price Index (LPI) (RPI subject to maximum of 5%) • Deferred periods 13, 26, 28, 52, 104 • Limited payment option 2, 3, 4 or 5 years (offering discounted premiums) • Cover for equity partners yes • Linked claims period 12 months.

11. So what’s stopping you? Aviva’s GIP Policy Benefit Details continued: • Non-Selection Limit available at 10 lives or more • Unit Rate available at 25 lives or more • Definition of incapacity own, suited, combined (own for 24 months in claim followed by suited) • No worse terms yes • Personal Health Manager Our online Health Management tool is available as standard on unit-rated schemes • Own Occupation Definition to include ‘material and substantial duties’.

12. Why Aviva? • We have been offering Income Protection since 1947 and has gained invaluable experience over the years • Aviva currently covers over 100,000 individual Income Protection customers • We have one of the largest Income Protection teams in the UK • We pay approximately £29 million of benefit to around 3,500 customers each year • Aviva also has a team of experienced Disability Benefit Advisers, who actively help in getting employees back to work.

13. 5 Good reasons to have Group Income Protection • May provide you with a regular income should illness or injury* prevent your employees from working • Can help your bottom line by providing income towards the cost of employee sickness absence • Can give you more control over staff sickness, budgeting and information on rehabilitation • Provides a high-value benefit and peace-of-mind to attract and retain experienced employees • May help employee rehabilitation and a speedier return to work. * Some types of illness or accidental injury may not be covered.

14. Pricing a GIP scheme

15. The GIP scheme underwriting team • Comprises of 19 staff dedicated to GIP scheme underwriting • A high level of expertise gained within the industry • Available to discuss illustrations direct with Intermediaries.

16. Pricing assumptions • Often the information given to produce an illustration is limited • We will attempt to gain further information, however if not available, we have to make some assumptions in order to be able to produce an illustration • This can lead to an inaccurate illustration that doesn’t always reflect the true price and terms.

17. Checklist of information required for an indicative illustration • Name of company • Location of company (include multi-sites) • Nature of business • Whether an existing scheme • Intended commencement date • % of occupations or individual occupation breakdown for <25 lives • Details of any hazardous occupations • Any employees who require special driving licences for their role.

18. Checklist of information required for an indicative illustration (2) • Details of any overseas members + overseas travel • Deferred period + benefit basis (i.e 75% less Long-Term State Incapacity Benefit) • Definition of scheme salary to be covered • Eligibility of entry to the scheme • Previous scheme history (existing schemes only - number of lives + salary roll over last 5 years) • Detailed claims history including all declined + submitted claims + pending, ceased, admitted • Details of any substandard lines, loaded, rated, restricted and exclusions.

19. What is the impact of limited information on illustrations? • Often the information supplied on occupation classes can be as simple as “Manual workers”! • Norwich Union Healthcare has several categories of Manual workers • Warehouse Foreman Class 3 • Warehouse Person Class 5 • If it is not specified, we assume an occupation class, which can result in an artificially high premium, due to the large difference between classes (as much as 20%).

20. Our aim of GIP scheme underwriting is ... To produce an accurate illustration which will give a realistic indication of the premium and terms available if the business is taken up.

21. Process of obtaining an illustration Intermediary requests an illustration Underwriting review information The more information provided, the more accurate the illustration will be Underwriting request further information Underwriting produce illustration Aim to produce an illustration 5-10 working days, more details are available upon request

22. Why are some requests for illustrations declined? • Illustrations can be declined for a number of reasons including such factors as; • Occupations • Claims • Adverse underwriting • Terms can be withdrawn even after an illustration has been issued, if a subsequent material fact comes to light.

23. Administration

24. GIP administration team • Approximately 22 staff are dedicated to the smooth acceptance of new business and management of portfolios • Team expertise gained within industry • Team aim is to simplify administration for you and your clients, by working closely with Scheme Underwriting, Medical Underwriting, Claims and Sales to ensure a smooth process • Contact is made by phone, email and sometimes face-to-face.

25. Commencement of scheme (1) • We require written confirmation to go on-risk, or a completed GIP scheme application, showing the commencement date and the accepted illustration number • We will not backdate the acceptance of risk • Risk can be accepted by either Scheme Underwriting or the GIP administration team • A completed GIP scheme application and the inception membership details will be required at the time of going on-risk, or within 14 days.

26. Commencement of scheme (2) • All Scheme and membership details will be checked against the information provided to produce the accepted illustration (including all important notes/caveats) • We need all material information that can affect cover, cost and underwriting agreed in full at the earliest opportunity • This ensures that you and the customer have a full understanding of the scheme’s premium and the terms and conditions.

27. Commencement of scheme (3) • Once agreed we will cover existing scheme members at No Worse Terms - as per our technical guide (page 7, section 22)* • Any additional information will be requested and chased as appropriate - this can delay the start of the policy • Any additional medical loadings applicable are calculated with the inception account. * A copy of the Technical Guide can be obtained by contacting the Healthcare Bureau on 0845 3000 649 or from your usual Healthcare Sales Consultant (calls may be monitored and/or recorded).

28. What can delay a scheme going on risk? • The conditions attached to the illustration aren’t fully met • The complete membership information is not supplied • It is referred back to Scheme Underwriting due to differences in the information supplied for the illustration • Application form not being fully completed.

29. New application form • Corporate application form has been revised based on your / customer feedback • Includes explanation notes on how to help make completion easier • Designed to obtain full scheme details- getting the right information at the right time • Forms the basis of the contract.