Maximizing Partnership Benefits Through Gallagher Insurance Point with Reliance Standard

1. August 7th, 2019 2019 Insurance Point/AJG Summit

2. Agenda

3. Gallagher Insurance Point | Reliance Standard - Our Partnership • Gallagher is one of Reliance Standards Largest Brokers and we are approaching our 10 year anniversary together. • Since inception we have grown the block to just over $386M in 9.5 years • The Gallagher Insurance Point | Reliance Standard Healthcare Partnership is a consistent premium generator with first right of refusal to all of Gallagher Insurance Point’s Healthcare Life and Disability business. • Most of the opportunities presented are through our partnerships GPO’s & Associations such as Vizient, Intalere, Indiana Hospital Association, Illinois Hospital Association and more. • We are the preferred partner and these relationships recommend our Life and Disability programs to their C-Suite/HR Health Systems as an opportunity to control cost and driving savings into their organizations. • With this level of engagement and support it results in extremely high close ratios. GPO EXCLUSIVE CARRIER PARTNER HEALTHCARE ORGANIZATIONS UNDERWRITING AGREEMENT

4. Gallagher Insurance Point | Reliance Standard - Our Partnership • Clients who partner with GPO’s and Associations that have access to Gallagher Insurance Point’s programs are able to leverage an intelligent aggregation model that other broker and consulting partners cannot offer. • Our clients become a member of large pool of healthcare organizations that allow us to aggregate risk factors, drive down cost as well as access preferred underwriting and plan designs. • Our programs help healthcare providers achieve low stabilize employee benefit rates while maintaining the intent of the current plans. • Based on the risk of the large group rather than the risk of their individual hospital or healthcare system. • Aggregation of risk components through collaboration with many members ensures rate stability and greater purchasing strength to help keep rates low and stable. Group Purchasing Organization (GPO) best practices. • An Intelligent Block of Business • Gallagher Insurance Point’s approach minimizes adverse selection and maximizes enrolled product participation. • Each client added into the block of business improves overall block performance, profitability, stability, and predictability.

5. Gallagher Insurance Point | Reliance Standard - Our Partnership • Risk • Risks can create pricing fluctuations. Plan Design, Rate Factors, Demographics and Claims Management are the four main risks that can create major fluctuations in employee plan costs with each policy cycle. • Once risk components become aggregated and controlled, client’s plans will have stable, low, and predictable costs. • Gallagher Insurance Point can help organizations cope with the financial uncertainty of uncontrolled price fluctuations while providing the service they need. • Why Aggregate? • Immediate rate reduction due to larger purchasing base • Members gain rate stability by spreading risk over a much larger risk base • Pinpoint costs with accuracy and eliminates future pricing uncertainty • Because now they can! Receive budgeting predictability, rate stability, and ease of administration Standard Aggregated Gallagher Insurance Point plans will have stable, low, and predictable costs. Individual Risks create pricing fluctuations and create unpredictability.

6. Executive Leadership at All Levels of RSL

7. Reliance Resources at your fingertips! Click here for Prospecting MaterialsClick here for Service ToolsClick hereto learn more about our Matrix OfferingsClick here for Voluntary Collateral Click here for Communication Collateral For Reliance Standard/Insurance Point contacts: Contact Sheet http://www.reliancestandard.com/insurancepoint/

8. Prospect | Inforce - Life, Disability & Absence Quoting Process RSL Process Submissions are sent by Hollie to a general email box in which multiple levels internally are aware of submission. They will review or decline within 3 business day.* Alternate Options maybe presented along with current to help shape the plan. * Exception are groups requiring Large Case Review Submissions All Submissions are submitted by Hollie Pavic! Marketing Coordinators will pull together the draft submission and provide Hollie with our client/prospect strategy. Data Collection Marketing Coordinators will work with the existing carriers or Client Executive to pull together the data needed. Plan Comparisons Marketing Coordinators will build the plan comparison document which also serves as the proposal from RSL. Peer Review Marketing Coordinators will request a peer review prior to submission. If this is an inforce account the CE is responsible for this process.

9. Commissions Form & Process – Core Lines • Complete the Policyholder Information: client name, policy numbers and effective date of coverage with RSL. • If policy numbers are not yet available at the point of completing this form, this should not hold up submission and policy numbers can be notated once received. • Team members should make sure policy number information is saved in DMS, as well as communicated internally to Hollie Pavic and Courtney Cole via email. • Product: • Only complete the lines of coverage that are inforce with the client that you are completing the form for. • Indicate Billing: Insurance Point or Reliance Standard • Notate whether or not the Insurance Point team will be handling the billing on behalf of the client, or if the client will be on a direct bill basis with Reliance Standard. Reliance Standard would handle the billing if there is a co-broker involved and they do not wish to execute a co-broker agreement with Gallagher and have Gallagher pay them, or if the client has specifically noted under special circumstances they need to be directly billed by Reliance Standard. • Indicate Commission Type: Gross or Net • Input the word gross or net, depending on the below: • Gross means that the carrier (Reliance Standard) would be paying Insurance Point commissions • Net means that Insurance Point will take out our commissions before we send on to the carrier, Reliance Standard. • Please note: Reliance Standard is normally NET on the core coverages with the exception of: • When there is a co-broker involved who will not sign a co-broker agreement with Gallagher, and when there is worksite involved. • These situations would require it to be GROSS. The client development team should have record saved of whether or not the commissions are gross or net.

10. Commission & Admin Fees • We differentiate the commissions vs. fees when we provide the administrative services.  • Below is our typical commission schedule with Reliance, reference the bolded fee column: • There are situations where commissions may fall outside of our typical commission schedule. If this situation arises, please reference this tool for guidance on the appropriate splits: RSL Tool • Remember to communicate to our BILLING TEAM • Commissions % • Fee % • NET or GROSS

11. Commissions Form & Process – Voluntary Lines • Complete the Policyholder Information: client name, policy numbers and effective date of coverage with RSL. • If policy numbers are not yet available at the point of completing this form, this should not hold up submission and policy numbers can be notated once received. • Team members should make sure policy number information is saved in DMS, as well as communicated internally to Hollie Pavic and Courtney Cole via email. • Product: • Only complete the lines of coverage that are inforce with the client that you are completing the form for. • Indicate Billing: Insurance Point or Reliance Standard • Notate whether or not the Insurance Point team will be handling the billing on behalf of the client, or if the client will be on a direct bill basis with Reliance Standard. Reliance Standard would handle the billing if there is a co-broker involved and they do not wish to execute a co-broker agreement with Gallagher and have Gallagher pay them, or if the client has specifically noted under special circumstances they need to be directly billed by Reliance Standard. • Indicate Commission Type: Gross or Net • Input the word gross or net, depending on the below: • Gross means that the carrier (Reliance Standard) would be paying Insurance Point commissions • Net means that Insurance Point will take out our commissions before we send on to the carrier, Reliance Standard. • Please note: Reliance Standard is normally NET on the core coverages with the exception of: • When there is a co-broker involved who will not sign a co-broker agreement with Gallagher, and when there is worksite involved. • These situations would require it to be GROSS. The client development team should have record saved of whether or not the commissions are gross or net.

12. Commissions Form & Process – Voluntary Lines • Indicate if Level or Heaped: • Levelis a flat commission percentage, and the commissions is the same year over year. Reliance Standard is normally flat commission on the core lines. • Heaped commission structure is when the first year premiums are high, and the renewal premiums are much lower. • Heaped commissions can be applicable to Reliance’s Voluntary Benefits in the following situations: • Group Heaped is available on Voluntary Accident Insurance, Voluntary Critical Illness and Voluntary Hospital Indemnity, and can be net and premium managed through Insurance Point. • Individual Heaped is only available on Voluntary Accident Insurance and Voluntary Critical Illness, and requires a list bill, thus it must come in Gross direct to Reliance Standard • If Heaped, Indicate if Individual or Group: • Group and Individual are specific to worksite and typically have a first year, and subsequent year commission structure. • Group contract is just that written on a group chassis. • Individual is written on an individual basis.  • If Heaped: Indicate 1st year and Renewal year commission %: • Heaped commission structure is when the first year premiums are high, and the renewal premiums are much lower. • % Share of Commission: • List any applicable commission share for the case with either a co-broker, or EOI. If there is a commission share, the commission broken out by column should be equal to 100%. If there is no commission share on the case, only complete the IP column. Please note that there may be situations where IP can have level commissions and EOI can be heaped. In these situations, you should only be recording IP’s commission.

13. Submission Process • Client Representatives should complete the RSL commission form using the SOLD plan comparisons saved in the file. • All completed commission forms must be peer reviewed and then sent to Courtney Cole for review, approval and signature. • The form should be emailed to Courtney for approval and signature along with the supporting back-up: • A copy of the carrier confirmation of commission percentage. EMAIL documentation from the carrier is required. We can’t just use a sold presentation or spreadsheet. • A email confirmation of splits by the producer on any co-broker splits or enrollment firm splits. • These items must be saved in DMS before Courtney will approve them. If the CE/CR team do not have these files, please reach out to the Marketing Coordinator to ensure they get saved appropriately. • If EOI is involved, the form must be sent to EOI for review, approval and signature. • Final commission forms should be submitted to the RSL team with case details.

14. Revenue Tracking REMINDER! • It is super important that ALL changes be reported in a timely manner: • New Lines of Coverage • Changes in Carrier • Re-enrollments • Renewal Increase • Terminations (this includes lines of coverage due to switching carriers) • We pay our GPO partner’s a % of our revenue earned and do get audited so need to make sure we are keeping up with any changes being made. • We forecast as a branch and set budgets annually, so any changes Courtney, Hollie & Amy need to know! • All changes go into SALESFORCE so please work with Client Development to report changes.

15. Implementation / Submission - The Partnership RSL and Insurance Point / AJG have forged a strong and lasting partnership that boost the offering to our shared clients.

16. SOLD TO IMPLEMENTATION PROCESS • KEY DOCUMENTS FOR RSL: • Signed Preliminary Application • Prior Carriers Contracts/ Policies • Signed Commission Form • Final Comparison of Plan • Voluntary Confirmation Sheet (if applicable) • Signed Statutory Applications (if applicable) NOTIFICATION: WOO HOO!! Notice of IP/RSL Sale TEAM ASSIGNMENT & REVIEW: IP Account Mgt Team Assigned - meet with Producer to review sale and gather KEY DOCUMENTS ENGAGMENT WITH RSL Sends notification of Sale to IPSalesTeam@rsli.com With KEY DOCUMENTS RSL REVIEW RSL Team completes the Submission Workbook – Highlighting questions • Signed App is required before Policy numbers can be assigned • Case has to be in SOLD status on PACS in order for BHS to be completed off the system. • Requirements for SOLD status: • Key Documents submitted • Case loaded in PACS • Key benefit provisions reviewed and accepted. COLLABORATION & PREP Internal meeting with RSL to review sale components and prepare for client meeting

17. Medical Underwriting Overview and Updates

19. Evidence of Insurability Options • Paper Statement of Health form • Interactive PDF link • Fillable PDF version of the Statement of Health form • Link can be embedded in enrollment / HRIS or e-mailed to employees • Form can be completed online, but must be printed signed and submitted to Medical Underwriting via mail or e-mail • Requires 5 business days lead time • eConnect • A web-service that provides seamless integration with a third-party vendor enrollment system through single sign-on for real-time, paperless Evidence of Insurability approval • Some employees and all spouses will have to follow up with a printed and signed form • Requires the enrollment system vendor coding of eConnect requirements • Lead time is 6 - 10 weeks

20. Evidence of Insurability - DocuSign • Two options available: • EOI60 • PowerForm • Both options utilize DocuSign service for: • Online completion of EOI form • Electronic signature • Online submission of EOI • Both options can be used by both Employee and Spouse • Both options maintain the same EOI Status Update methods available today: • Policyholder: • Automated update reports • Online access • Employee: • Status determination e-mailed when RSL has employee’s e-mail address • Status determination mailed to home if no e-mail address

21. Evidence of Insurability Options – DocuSign EOI60 • Available for annual enrollment only • not for ongoing new hire/late entrant enrollment • Client / Ben Admin provides post-enrollment list of individuals that require EOI (employees and spouses) • Using required report template • RSL distributes personalized EOI forms to employees via e-mail • Form is pre-populated with employee’s demographic info and elections • Employee has 60 days to complete and submit EOI form • RSL sends e-mail reminders to employee at 15 day intervals • Status reports with Sent/Received/Completed updates • Sent to the client on the 16th day following enrollment period and every 15 days thereafter • Minimum group size 250 lives • Lead time: 65 days prior to enrollment period start date

22. Evidence of Insurability Options – DocuSign PowerForm • Available for annual and perpetual enrollment • RSL creates a URL pointing to a customized EOI form • Policyholder name and policy numbers are pre-populated • Employee information is not pre-populated • Client / Ben Admin firm provides employee access to URL: • Add URL to enrollment site • Add URL to intranet / benefit page • E-mail directly to employees that require EOI • Employee completes EOI form and submits it online • Minimum group size 50 lives • Lead time: 50 days prior to enrollment period start date

23. Evidence of Insurability – when is it required? • When an applicant applies for coverage in excess of a Guaranteed Issue amount • Guaranteed issue amounts vary by policyholder • Guaranteed issue is offered at the individual’s initial eligibility and in the event of a Qualified Life Event (QLE) • Late entrants • Unless due to a Qualified Life Event • At Annual Enrollment • Unless a pre-approved re-enrollment with Guaranteed Issue has been allowed • Can be negotiated during the initial sale as an annual re-enrollment • Can be discussed on a year-by-year basis • Underwriting approval must be secured prior to the enrollment period

24. Voluntary Market Coordinator Role • Support the growth of voluntary business • New business • Cross-sell • Re-enrollment • Subject Matter Expert on RSLI Voluntary products and processes • Develop client-level enrollment strategies • Conduct employee presentations • Coordinate marketing and communication efforts • Conduct and staff enrollment meetings 24

25. Creating Enrollment Strategy “It ain’t sold until it’s enrolled” • Develop a strategy that fits the specific needs of the client • One size does not fit all • Factors to consider • Geographic make-up • Centralized vs. de-centralized • Comfort level and access to online components • Availability of employees for meetings • Client’s normal communication methods

26. Communication Tools • Customized Brochures • Bilingual Materials • “Why Buy” Videos • E-mail Blasts • Telephonic Enrollment Support • Posters • Table Tents

27. Enrollment CommunicationExample of Micro-site • Dedicated URL with customer name • www.reliancestandard.com/customername • Client logo • Why buy videos • Custom messaging from HR • Important dates • Meeting dates/times/locations • Accessto materials: • Highlight Sheets • Rate Tables • Enrollment Forms • PPTs • Value Add pages

28. Enrollment Season • HELP US HELP YOU!!!! • Enrollment Planning Meetings – What will your clients need this season? • Benefit Highlight Sheets • Current BHS? IP will order and deliver to client • Updates to BHS? – provide needed updates. Changes take 3 business days from the time of request. • No BHS – need booklet etc to build BHS • NOTE Customization take more time – requires manual intervention and review. • Enrollment Dates - underwriter approval of OE? • Staffing needs • Raffle items • !

29. RENEWAL PROCESS • Quarterly renewal calls/meetings with RSL and IP team to review upcoming renewals. Notes will be posted on the shared drive for review by IP teams. (S:\Administration\Renewals) • “Targeted” accounts (high loss ratios) will be identified in advance so that we can proactively work with clients to set expectations or consider plan design changes for upcoming renewals. Announcement: Lori Baillargeon is the new Underwriting Manager for IP block. Welcome Lori!!!

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36. Single Point Billing Overview Single Point Billing is a term that we use to describe how Gallagher Insurance Point runs our billing. We allow for our clients to select multiple policies offered through various carriers and remit payment to one organization (Gallagher Insurance Point) to allow for the client to not have to worry about issuing multiple payments for multiple carriers. We are able to reconcile the payments and then divvy them out to the appropriate carriers. Thus making a Single Point Billing platform for the convenience of our clients.

37. Single Point Billing Solutions IP Billing Carriers Case (HR) • Applications (Enrollments, New Hires, Cancellation Requests (CRF), Termination/Change Reports • Sending Payments and appropriate Payment Details • Making changes as provided in Benefits Manager • Notifies client of changes via Weekly Activity and Status Report • Creates Invoices based on the information in Benefits Manger • Reconciles payments and pays out to appropriate carriers • Reliance Standard • Unum • Assurity • Lincoln • Aflac • Etc…

38. Billing Types How a client will be invoiced will be decided during the implementation call (either list, summary billed, or self administered). A self administered client: will track and report all information to provide to Insurance Point; this would include the various policies with the volume, number of lives, and total premium. The client will then report the numbers to the Billing team with the payment and the Billing team will reconcile the payments as informed. Insurance Point will either send a blank invoice for the client to enter the coverage amount the number of lives and the file will use a formula to calculate the premium or we will not send a monthly invoice to these clients at all. A summary billed client: will only see the total numbers for each policy on the invoices that are sent to them. This includes the total number of coverage, number of lives, and total premiums for each policy. We can summary bill almost all policies other than Unum, Assurity, Lincoln, Aflac, and any other policies that would be considered to be individually owned by the employee. Any group policy can be summary billed (i.e. Reliance and other similar policies). A list bill: will show each employee, the policies that the individual has, the amount of the premiums for each individual policy, and then the total premiums due for the employee for the month. The list view option is also available for clients that only have employer paid policies (basic life and others) if they would like to see the full detail of what makes up their invoice. The invoice will also use formulas to calculate a summary at the top of the invoice for a quick view by the client.

39. Billing Implementation • Step 1: Confirmation of new case • Client Executive/Client Representative will notify Client Services, via email, of the new client along with lines of coverage sold. • CE/CR and Producer will start the process with a Kick-off call with the client to verify lines of coverage being implemented and the effective date of coverage. High level overview of products being implemented. • CE/CR will provide documents necessary to Client Services for implementation. • Step 2: Verify Plan Design and Rates • Review all plan documents provided by CE/CR. These documents will be saved in the client file in DMS. Any questions regarding plan design, rates or billing information should be directed to the CE/CR assigned to the case. • CE/CR will request enrollment materials/employee communication pieces from Reliance Standard. Information will need to be audited before sending to client. • CE/CR will schedule a call with the client to review current billing processes and discuss Billing and Administration options moving forward. Billing Team and Client Services Team will be included on the call • Step 3: Client setup in Benefits Manager • Billing Team Lead will set up the account in Benefits Manager using the completed Billing & Enrollment Form, COP, rate grid and details obtained during billing call. • New clients are added to Benefits Manager in the Case Manager. Add-Ins section. This section includes employer demographic information, employer contacts, lines of coverage and flat rates.

40. Our Standard Operating Procedures Premium received by Insurance Point is entered into the premium admin system (Benefits Manager) within 24 hours of receipt. All payments entered into Benefits Manager will reference the date the premium payment was received by Insurance Point. For checks, the receipt date is determined by the date stamp entered on the check. All checks are date stamped on the day of receipt by the associate at the front desk who receives all incoming mail. For ACH transfers or wires, the receipt date is determined from the banking notice that reflects the date the funds were received. All group premium received by Insurance Point will be processed and approved for payment to the carrier within 14 days of receipt. All premiums for voluntary coverage (UL, ISWL, Cancer, Critical Illness, etc.) will be processed and approved for payment to the carrier within 10 days of receipt.

41. Lapse/Term Process Step 1: RSL Billing Report RSL Billing Team sends “Paid-to-Date” report on the first business day of each month. Review for potential client premium lapse status. Identify all cases that are approaching 45 days in arrears on Tab 2 including the following information. Date 45 day notice will be mailed. Date 60 day notice will be mailed. Negotiations for pending payments for past due accounts. Send report to RSL Billing team, prior to the monthly billing meeting on the 8th. Step 2: First Invoice Reminder Notice – 45th day Copy Client Executive and Client Representative. Blind copy RSL Premium Accounting and IP Relationship Director. Do not mention possible reinstatement or non-payment of claims.

42. Lapse/Term Process Step 3: First Lapse Notice – 60th day Letter must state that a final termination notice will come from Reliance Standard. Copy Client Executive and Client Representative. Blind copy RSL Premium Accounting and IP Relationship Director. Do not mention possible reinstatement or non-payment of claims. Client Executive to call client on 60th day. Follow up email documenting call. Payment must be received within 10 business days. Step 4: RSL Lapse Letter – 80th day Billing Team copied on RSL lapse letter sent to client. Advises Producer and VP of Operations of RSL lapse letter. Copy Client Executive and Client Representative. Step 5: Client Call – 90th day VP of Operations/Producer will call the client on the 90th day.

43. Lapse/Term Process Step 6: Final Termination – 97th day RSL will send formal termination letter to the client. Billing Team will be copied on termination letter. Termination date is the paid-to-date not the date of final processing. Billing Team notifies the Producer and VP of Operations of final termination letter. Copy Client Executive and Client Representative Producer/VP of Operations will call the client to advise the termination letter is coming from RSL. If premium is received before the 97th day, immediately alert RSL. This will stop the termination process. • Note: • All reinstatements will require a no-claims letter from the client and all back premiums. • All reinstatements require underwriting approval from RSL. • Any exceptions to the above timelines will require RSL approval.