8 vs. 18

1. 8 vs. 18 TMK1536 092910 Agent training only. Not for sales use.

2. TMK1536 092910 Agent training only. Not for sales use.

3. Best DCN% by Branch TMK1536 092910 Agent training only. Not for sales use.

4. Best DCN% by Region TMK1536 092910 Agent training only. Not for sales use.

5. Best Persistency% by Branch TMK1536 092910 Agent training only. Not for sales use.

6. Best Persistency% by Region TMK1536 092910 Agent training only. Not for sales use.

7. Definitions Decline: Poor field underwriting (1%) Cancellation: Customer cancels or underwriting requirements not met (3.5%) Not-Taken: Customer returns policy during free-look period or payment not received (7.8%)

8. How is DCN calculated? Premium From Declines + Cancels + Not-Takens ÷ Submitted Premium

9. Definitions Persistency: Premium issued and paid four months or longer, divided by total issued business based on policy effective date

10. How does Quality impact pay & retention? • Chargebacks

11. How does Quality impact pay & retention? • Chargebacks • Direct pay submit advance commissions

12. How does Quality impact pay & retention? • Chargebacks • Direct pay submit advance commissions • DCN+Lapses subtracted from gross submit prod. pay

13. How does Quality impact pay & retention? • Chargebacks • Direct pay submit advance commissions • DCN+Lapses subtracted from gross submit prod. pay • DCN: Bonus multiplier first 7 months

14. How does Quality impact pay & retention? • Chargebacks • Direct pay submit advance commissions • DCN+Lapses subtracted from gross submit prod. pay • DCN: Bonus multiplier first 7 months • Persistency: Bonus multiplier month 8 and beyond

15. How does Quality impact pay & retention? • Last but certainly not least… • Renewals Renewals Renewals Renewals Renewals • Renewals Renewals Renewals Renewals Renewals • Renewals Renewals Renewals Renewals Renewals • Renewals Renewals Renewals Renewals Renewals • Renewals Renewals Renewals Renewals Renewals

16. So how does that translate to dollars? TMK1536 092910 Agent training only. Not for sales use.

17. What does an 8 vs. 18 DCN mean to an Agent in his first seven months with a $1,400 per week average? TMK1536 092910 Agent training only. Not for sales use.

18. Take Home Pay Individual 8 DCN Agent takes home 51% more Worksite 8 DCN Agent takes home 49% more TMK1536 092910 Agent training only. Not for sales use.

19. Agent Direct Pay $8,400 More Direct Pay $5,600 More Direct Pay TMK1536 092910 Agent training only. Not for sales use.

20. Production Pay Net Submit & DCN Multiplier TMK1536 092910 Agent training only. Not for sales use.

21. Take Home Pay TMK1536 092910 Agent training only. Not for sales use.

22. Take Home Pay Individual 8 DCN Agent takes home 51% more Worksite 8 DCN Agent takes home 49% more TMK1536 092910 Agent training only. Not for sales use.

23. So when is a good time to train on Quality? TMK1536 092910 Agent training only. Not for sales use.

24. Individual Business A-250 Application TMK1536 092910 Agent training only. Not for sales use.

25. Quality Before the Sale: Classroom Training TMK1536 092910 Agent training only. Not for sales use.

26. Agent’s Instruction Guide Review the key points in the Agent’s Instruction Guide: Then save it to the desktop of the Agent’s computer

27. Automatic Decline Conditions • Applicants with the following conditions will be automatically declined: • Terminal Illness • Lou Gehrig’s Disease or Amyotrophic Lateral Sclerosis (ALS) • HIV / AIDS or Positive Test to Antibodies for AIDS virus • Alzheimer’s Disease or Senile Dementia • Confined to a hospital or nursing facility • Use of illegal drugs within a two-year period • Confined to jail

28. Underwriting Requirements Chart When is the Agent required to get an Oral Swab?

29. Build Charts If the proposed insured does not fall within the standard weight limits shown on the chart, the proposed insured will be rated.

30. Medical History Guide Lists conditions and “general” guidelines

31. ALX Only • Do not submit an application for standard issue for the following conditions. • An ALX will be considered if the underwriters determine the proposed insured is eligible for coverage. • Heart / Circulatory / Blood Disorders • Diabetes and Related Disorders • Cancers • Misc. Medical Disorders • Disability

32. Quality During the Presentation: Setting Correct Expectations TMK1536 092910 Agent training only. Not for sales use.

33. Open your eyes TMK1536 0410 Agent training only. Not for sales use.

34. What questions can you ask an applicant in normal conversation to determine if you should present ALX? TMK1536 0410 Agent training only. Not for sales use.

35. Have you ever had cancer? • Have you ever had diabetes? • Have you ever had heart problems or high blood pressure? • What medications are you taking? • Are you receiving disability income? • How’s your driving record? TMK1536 0410 Agent training only. Not for sales use.

36. “Great news! We have a policy specifically designed for people with your health conditions.” TMK1536 0410 Agent training only. Not for sales use.

37. Trial Applications • On cases with that appear to be medically • questionable, the best thing to do is submit the • application on a trial basis. • Apps over $1 million • Collect no payment or app fee • Does not count for submit for commissions or production pay • Does not count against DCN if declined or not taken by customer

38. So why don’t Agents use Trial applications? TMK1536 092910 Agent training only. Not for sales use.

39. When does an individual policy go into effect? TMK1536 092910 Agent training only. Not for sales use.

40. Closing Script • Sets expectations • QAC Call • Medical Records

41. Quality After the Submit TMK1536 092910 Agent training only. Not for sales use.

42. Worksite TMK1536 092910 Agent training only. Not for sales use.

43. Relationship With The Bookkeeper • Checklist Found In ‘Steps to Success’

44. Worksite Case Checklist • Follow-up, who is responsible, date completed

45. Impact of Not-Takens • This is what it looks like in Qlikview when a worksite case is not taken

46. What would it take to lower our company DCN from a 12 to an 8? TMK1536 092910 Agent training only. Not for sales use.

47. TMK1536 092910 Agent training only. Not for sales use.

48. 48 issued policies per branch per week TMK1536 092910 Agent training only. Not for sales use.

49. Homework Assignment TMK1536 092910 Agent training only. Not for sales use.