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Quality Manager Training

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Presentation on theme: "Quality Manager Training"— Presentation transcript:

1 Quality Manager Training
Updated Dec 2014 TMK Agent training only. Not for sales use. 1

2 Agent training only. Not for sales use.
Checklist TMK Agent training only. Not for sales use. 2

3 Checklist Show me: Computer with Microsoft Office 2010 or 2013
Access Agent Services Access Access Qlikview Access Portal (Set up as App Approver) App Approval Packet Scripts Roster Prior to training Quality Managers should verify that they have a computer with Microsoft Office 2010 or Office 2007 will not work. Should be able to access Agent Services using QMxxxxx number. Access their address. Access Qlikview using the Agency Owner’s login credentials Access the Agent Portal and be set up as an app approver for all Agency Directors Create App Approval Packet: Agents Instruction Guide (Underwriting Chart A-4, Build Chart A-12, Medical History A-28 through A-35) plus Plan Code Cheat Sheet. Print out all scripts from Agent Services Have a Roster for the agency including, who reports to whom, Agency numbers, Agent numbers, phone numbers and addresses.

4 Agent training only. Not for sales use.
Agenda TMK Agent training only. Not for sales use. 4

5 Agenda Introductions & Role of Quality Manager
Reviewing Apps in the Portal Individual Applications Worksite Applications Worksite Case Tracking Tracking Lost Business Conservation Log SAMs & Reports Reinstatements Miscellaneous The layout of the training matches the layout of the QM Training Test on Agent Services.

6 Agent training only. Not for sales use.
My Expectations of You Take lots of notes Ask lots of questions (Test) Leave here more confident Have fun TMK Agent training only. Not for sales use. 6

7 Agent training only. Not for sales use.
The Role of the Quality Manager TMK Agent training only. Not for sales use. 7

8 Liberty Hierarchy Agency Owner Agency Director Supervising Agents
QMs should understand the hierarchy at Liberty National. Communication flows from the top to the bottom. QMs communicate only with the Agency Owner and Agency Directors who retrieve information from their SAs and Agents and report back to the QM.

9 Quality Control Manager Responsibilities
The Quality Control Manager is responsible for overall quality of business and profitability in the Agency. This person reports directly to the Agency Owner and is accountable for decreasing the amount of business that is Declined, Cancelled, and Not Taken and increasing in 13-month persistency to build Agency Owner renewals.

10 Role of the Quality Manager
To help the Agency Owner Build Wealth Front End: Prior to Upload to Home Office Pending Business: Follow-up Work Keeping Business on the books The Best Quality Managers Great communicators Extra set of eyes and ears for Agency Owner Business partner Quality Managers manage three areas: Business prior to upload, Pending Business, and Conservation. The best QMs are great communicators, acting as a second set of eyes and ears for their boss, the Agency Owner.

11 Agent training only. Not for sales use.
Understanding Quality Business TMK Agent training only. Not for sales use. 11

12 How is your performance evaluated?
Are you a good investment for the Agency Owner? This is evaluated each month based on… Front End: DCN Pending Business: DCN and Persistency Keeping Business on the books: Conservation QM performance is based on DCN, 4-month persistency, and 13-month persistency.

13 Goals DCN 6% or less: Agents on DCN earn maximum direct pay and 110% bonus 4-Month Persistency 93% or better: Agents earn maximum direct pay and 120% bonus 13-Month Persistency 75% or better: Agents maximize their income through renewals The goal for every agency is to have its quality numbers at: DCN 6% or less: Equates to new agents receiving 110% of their bonus on average. 4-Month Persistency 93% or better: Equates to veteran agents receiving 120% of their bonus on average. 13-Month Persistency 75% or better: Equates to the AO receiving large renewals.

14 Resources All documents, scripts, directions, reports, etc…
Agent Services (Use QMxxxxx to log in) Quality Business Section All resources for the QM to do their job are found on Agent Services in the Quality Business Section.

15 Individual vs. Worksite
Individual Business: Written in the home through the needs-based laptop presentation. Premiums paid through checking account Worksite Business: Also known as Payroll Deduction (PD) or Section 125. Written in the workplace to employees. Premiums deducted from employees’ paycheck and sent by employer to Liberty National Defining terminology: Individual Business: Written in the home through the needs-based laptop presentation. Premiums paid through checking account. Worksite Business: Also known as Payroll Deduction (PD) or Section 125. Written in the workplace to employees. Premiums deducted from employees’ paycheck and sent by employer to Liberty National.

16 Building Wealth = Renewals
Renewals are paid starting the 13th month a policy is in force. They are paid every month that the customer makes their premium payment … forever! Defining Terminology: Renewals are paid starting the 13th month a policy is in force. They are paid every month that the customer makes their premium payment … forever!

17 Did we get the business to the Customer?
What is DCN? Did we get the business to the Customer? Let’s define DCN: D is for Declines C is for Cancellations N is for Not Takens The good news is the Declines, Cancellations, and Not Takens are all caused by the same things: Poor training, lack of systems and oversight – and they all can be fixed.

18 Declines (<1%): Primarily worksite.
What is DCN? Declines (<1%): Primarily worksite. Never should have been uploaded to Home Office. Cancellations (3%): Primarily individual. Cancelled by customer or Home Office. Not-Takens (6%): Primarily worksite. Company never received any money. Company DCN 10% as of November 2014 Let’s define DCN: D is for Declines C is for Cancellations N is for Not Takens The good news is the Declines, Cancellations, and Not Takens are all caused by the same things: Poor training, lack of systems and oversight – and they all can be fixed.

19 Agents Direct Pay and Bonus is impacted by
DCN their first 7 months An agent’s direct pay and bonus are impacted by his DCN his first seven months of production. The same applies for an agent promoted to a Agency Director or an Agency Director promoted to Agency Owner. TMK Agent training only. Not for sales use. 19

20 Agents receive maximum direct pay and 100% of bonus first two months.
An agent’s direct pay and bonus are impacted by his DCN his first seven months of production. The same applies for an agent promoted to a Agency Director or an Agency Director promoted to Agency Owner. TMK Agent training only. Not for sales use. 20

21 How is DCN calculated? Submitted Premium Declined Premium
Cancelled Premium DCN is calculated by adding all the bad stuff (Declined, Cancelled, and Not Taken premium) and dividing it by SUMITTED premium. DCN is the gage of what type of job you do getting the business to the customer. Not Taken Premium

22 Example of 6% DCN $10,000 Submitted Premium $0 Declines $200 Cancels
Here’s an example of an 8% DCN. $800 in declined, cancelled, not taken premium divided by $10,000 in submitted premium. Please note what would happen if the agent had a $1,000 Decline for example. All of the sudden, his DCN goes to 18, dramatically impacting his pay. The point is, every app matters and can help or hurt your pay. $400 Not Takens

23 So, if I have a $1,000 policy Declined, Cancelled or Not Taken, how much clean business do I have to write to get all my bonus? Here’s an example of an 8% DCN. $800 in declined, cancelled, not taken premium divided by $10,000 in submitted premium. Please note what would happen if the agent had a $1,000 Decline for example. All of the sudden, his DCN goes to 18, dramatically impacting his pay. The point is, every app matters and can help or hurt your pay.

24 $10,000 $10,000 Submitted Premium $1,000 DCN
Here’s an example of an 8% DCN. $800 in declined, cancelled, not taken premium divided by $10,000 in submitted premium. Please note what would happen if the agent had a $1,000 Decline for example. All of the sudden, his DCN goes to 18, dramatically impacting his pay. The point is, every app matters and can help or hurt your pay.

25 Example: Calculating Individual DCN
April 25 May 24 June July Aug $4,000 $4,000 $4,000 1 2 3 Submitted Business Reports Published Submitted Business $100 $350 $350 $200 1 2 3 DECLINES, CANCELLATIONS, NOT TAKENS 4 For our example, let’s say our Agent has submitted four thousand dollars in individual Life premium on Bank Budget mode each month. The Agent has a total of one thousand dollars in Declines, Cancels and Not Takens during this period. Notice that Individual business DCN measures three months of submitted and four months of DCN’d premium. This means that the business written this month will not show on the DCN calculation next month. Therefore, “I’ll write more business” is a flawed quality correction plan. Declined, Cancelled, Not Taken Premium DCN Calculated

26 Example: Calculating Payroll Deduction DCN
Feb 25 March 24 April May June July Aug $4,000 $4,000 $4,000 1 2 3 Submitted Business Reports Published Submitted Business $0 $0 $400 $0 $0 $600 VO Now let’s look at how payroll deduction D-C-N is calculated. For our example, let’s say our Agent has submitted four thousand dollars in premium on Payroll Deduction mode each month. The Agent has a total of one thousand dollars in Declines, Cancels and Not Takens. Notice that Worksite business DCN measures three months of submitted and six months of DCN’d premium. This means that the business written this month will not show on the DCN calculation for three months. Therefore, “I’ll write more business” is a flawed quality correction plan. DECLINES, CANCELLATIONS, NOT TAKENS 1 2 3 4 5 6 Declined, Cancelled, Not Taken Premium DCN Calculated

27 Got the business to the Customer, do they keep it?
What is 4-month Persistency? Got the business to the Customer, do they keep it? Let’s define DCN: D is for Declines C is for Cancellations N is for Not Takens The good news is the Declines, Cancellations, and Not Takens are all caused by the same things: Poor training, lack of systems and oversight – and they all can be fixed.

28 Definitions Persistency: Premium issued and paid four months or longer, divided by total issued business based on policy effective date Once an agent reaches his eighth month after submitting business, his quality is measured by persistency. Persistency is a truer look at the quality of the agent’s business as it is analyzing issued business and whether or not the customer is keeping the policy four months or longer.

29 Agents Direct Pay and Bonus is impacted by Persistency
Months 8 and beyond An agent’s direct pay and bonus are impacted by his Persistency starting with his eighth month of production. The clock starts with his first issued business. The same applies for an agent promoted to a Agency Director or an Agency Director promoted to Agency Owner. The challenge with Persistency is that an agent may have overcome DCN challenges, but once they flip to persistency, it measures the first three months of issued business of that agent’s career, which is likely to be the least quality business they have written. TMK Agent training only. Not for sales use. 29

30 Example of 93% 4-Month Persistency
$10,000 Issued Premium $9,300 Paid 4 Months How is Persistency calculated? Take $8,800 of premium paid four months or longer and divide it by the $10,000 in issued premium to get an 88% persistency.

31 $8,800 $8,800 Issued Premium $1,000 Lapse
Here’s an example of an 8% DCN. $800 in declined, cancelled, not taken premium divided by $10,000 in submitted premium. Please note what would happen if the agent had a $1,000 Decline for example. All of the sudden, his DCN goes to 18, dramatically impacting his pay. The point is, every app matters and can help or hurt your pay.

32 Example: Calculating Persistency
Dec 25 Jan 24 Feb March April May June July Aug $5,000 $5,000 $5,000 1 2 3 Submitted Business Issued Business Reports Published $12,000 Paid 4 months or greater VO For our example, let’s say our Agent has issued five thousand dollars each month for a total of fifteen thousand dollars. Of that fifteen thousand dollars, twelve thousand dollars of premium is paid four months or greater. Therefore, the agent’s persistency would be 80%. Again, because we can’t go back in time, lapsing business must be addressed as soon as it lapses. Persistency Calculated

33 Agent training only. Not for sales use.
New DCN and Persistency Reports are published on the 25th of each month. Reports for DCN and Persistency are updated on the 25th of each month. Those quality numbers impact pay for the following month. This is a big day in the life of a quality manager as it is your report card. TMK Agent training only. Not for sales use. 33

34 How much of my hard work, effort, and energy is paying me a renewal?
What is 13-month Persistency? How much of my hard work, effort, and energy is paying me a renewal? Let’s define DCN: D is for Declines C is for Cancellations N is for Not Takens The good news is the Declines, Cancellations, and Not Takens are all caused by the same things: Poor training, lack of systems and oversight – and they all can be fixed.

35 Agent training only. Not for sales use.
13th Month Persistency is the most important measure of quality in regards to wealth building Thirteen month persistency is the most important measurement of quality because it tells us how much of our hard work is paying us a renewal. TMK Agent training only. Not for sales use. 35

36 Example: Calculating 13-month persistency
APRIL MAY JUNE 13 JULY 13 AUG 13 SEP 13 OCT 13 NOV 13 DEC 13 JAN 14 FEB 14 MAR APR 14 MAY 14 JUNE14 JULY14 AUG14 $3300 $3300 $3300 $7,500 Thirteen month persistency is the most important measurement of quality because it tells us how much of our hard work is paying us a renewal. Paid 13 months Issued Business

37 Example of 75% 13-Month Persistency
$10,000 Issued Premium $7,500 Paid 13 Months In this example, the agent issued $12,000 in the period being evaluated and $9,000 of that business was still paying premium 13 months later. That’s 13-month persistency of 75%.

38 Why all this focus on quality?
Policy must be in force months before Liberty makes a profit Whole Life Policy 60% Agent Commission of Annual Premium 10% Supervising Agent Commission of AP 35% Agency Director Commission of AP 25% Agency Owner Commission of AP 130% of First-Year Premium Plus Home Office expense for marketing, underwriting, printing, mailing policy, etc. Liberty National is willing to reward agencies that write good business because that is how the company makes money and customers have their protection in force at the time of need.

39 Agent Services on www.libertynational.com Click on ‘Reports’
How do I check my DCN and Persistency? Agent Services on Click on ‘Reports’ Once an agent reaches his eighth month after submitting business, his quality is measured by persistency. Persistency is a truer look at the quality of the agent’s business as it is analyzing issued business and whether or not the customer is keeping the policy four months or longer.

40 How does Quality impact pay & retention?
1. Chargebacks Months Premium Paid Chargeback % 0-2 months 100% 3 months 90% 4 months 80% 5 months 70% 6 months 60% Months Premium Paid Chargeback % 7 months 50% 8 months 40% 9 months 30% 10 months 20% 11 months 10% Commission chargebacks are assessed based on the scale in the Guide to Growth. If the first two month’s premiums are not paid, it’s a 100% chargeback.

41 How does Quality impact pay & retention?
1. Chargebacks 2. Direct Pay submit advance commissions Direct Pay submit advance is based on the agent’s DCN. The percentage not paid in direct pay is deposited into the commission account. Agents with a DCN of 31% or more receive no direct pay.

42 How does Quality impact pay & retention?
1. Chargebacks 2. Direct Pay submit advance commissions Direct Pay submit advance is based on the agent’s Persistency if they have a Persistency, meaning they’ve had eight months of issued business. The percentage not paid in direct pay is deposited into the commission account. Agents with a Persistency of 72% or less receive no direct pay.

43 Agency Owner/Director example
6 agents on team 4 agents on DCN, 2 on Persistency Agent 1: DCN 10 (Maximum direct pay) Agent 2: DCN 18 (Direct Pay reduced 10%) Agent 3: DCN 22 (Direct Pay reduced 30%) Agent 4: DCN 31 (No direct pay) Agent 5: Persistency 79 (Direct pay reduced 10%) Agent 6: Persistency 72 (No direct pay) * Best case scenario: Assumes agent has positive commission account. Managers are paid direct pay based on the DCN or Persistency, whichever the agent is on. In this example, the manager has four agents on DCN and two on persistency. Agent 1 has a DCN of 10 so he is receiving maximum direct pay. Agent 2 has a DCN of 18 so he is having his direct pay reduced by 10%. Agent 3 has a DCN of 22 so he is having his direct pay reduced by 30%. Agent 4 has a DCN of 31 so his is receiving no direct pay. Agent 5 has a Persistency of 79 so his direct pay is being reduced by 10%. Agent 6 has a Persistency of 72 so he is receiving no direct pay. The manager’s direct pay would be impacted accordingly for each agent.

44 How does Quality impact pay & retention?
1. Chargebacks 2. Direct Pay submit advance commissions 3. DCN: Bonus multiplier or reduction first 7 months Agents receive 100% of their bonus if their DCN is 10%. Concentrate on the left side. All I ever wanted to do was work at a place that pays me what I’m worth. If I’m better than average, I want to make more. Of course, if you are below average on your quality, your bonus is reduced, including the elimination of the bonus if the DCN is 19 or higher. Note the difference between a 6 DCN and a 14 DCN, which doesn’t sound like much of a difference. But the agent with a 6 DCN is receiving 30% more bonus than the agent with a 14.

45 How does Quality impact pay & retention?
1. Chargebacks 2. Direct Pay submit advance commissions 3. DCN: Bonus multiplier or reduction first 7 months Agents receive 100% of their bonus if their DCN is 10%. Concentrate on the left side. All I ever wanted to do was work at a place that pays me what I’m worth. If I’m better than average, I want to make more. Of course, if you are below average on your quality, your bonus is reduced, including the elimination of the bonus if the DCN is 19 or higher. Note the difference between a 6 DCN and a 14 DCN, which doesn’t sound like much of a difference. But the agent with a 6 DCN is receiving 30% more bonus than the agent with a 14.

46 How does Quality impact pay & retention?
1. Chargebacks 2. Direct Pay submit advance commissions 3. Persistency Bonus multiplier or reduction month 8+ Persistency multipliers work just like DCN. Agents earn 100% of their bonus if their Persistency is between 88 and 86%. Notice the left side of the chart. Agents can earn up to an additional 30% of their bonus with a great Persistency. Of course, persistency of 74% or below and the agent cannot earn a bonus.

47 How does Quality impact pay & retention?
1. Chargebacks 2. Direct Pay submit advance commissions 3. Persistency Bonus multiplier or reduction month 8+ Persistency multipliers work just like DCN. Agents earn 100% of their bonus if their Persistency is between 88 and 86%. Notice the left side of the chart. Agents can earn up to an additional 30% of their bonus with a great Persistency. Of course, persistency of 74% or below and the agent cannot earn a bonus.

48 Oh by the way … Career Track
On the Career Track, for promotion to every position, the company evaluates the candidate’s quality for promotion. We aren’t going to promote people with poor quality to teach other how to write business with poor quality.

49 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 How important is this for new hires that are independent contractors and receiving vested renewals? That’s why 13-month persistency is so important. It’s the measure of what percentage of the business pays a renewal.

50 Agent training only. Not for sales use.
So how does that translate to dollars? TMK Agent training only. Not for sales use. 50

51 Agent training only. Not for sales use.
What does an 8% vs. 18% DCN mean to an Agent in his first seven months with a $1,425 per week average? Let’s look at 2 agents who both write the same amount of business in their first 7 months with the company -- $1,425 per week. That’s the amount needed on average to qualify for Torch Club so this is a solid agent that is working every week. What is the difference in takehome pay if one agent has an 8 DCN and the other has an 18 DCN? TMK Agent training only. Not for sales use. 51

52 8 DCN Agent takes home $8,400 more
Take Home Pay 8 DCN Agent takes home $8,400 more The agent with an 8 DCN takes home $8,400 more than an agent with an 18 DCN over the first seven months WITH THE SAME AMOUNT OF PRODUCTION!! TMK Agent training only. Not for sales use. 52

53 II. Reviewing Applications
in the Portal TMK Agent training only. Not for sales use. 53

54 When and where do I review apps?
Every day. First thing when you come in and last thing before you leave. Don’t let it stack up on you. Advantage of Daily Upload: App doesn’t effect Agency DCN if not paid on it and doesn’t count toward bonus Opportunity to make bonus if app changed to trial or cancelled It’s the World Wide Web. You can access from anywhere you have an Internet connection Find a quiet place where you are uninterrupted You call for others, they do not come to you Review apps first and last thing every day.

55 Application Review Deadlines
Eapps must be in portal by midnight Sunday to be reviewed on Monday Eapps signed by customer on Monday must be in the portal by noon Central to be reviewed on Monday Paper apps/CODs/Term Conversions, etc., must be turned in to QM by 9 a.m. Central to be reviewed on Monday Eapps must be in the portal by midnight Sunday to be reviewed on Monday. Eapps signed by customer on Monday must be in portal by noon Central Monday. Paper apps/CODs/Term Conversions must be in Quality Manager’s hand by 9 a.m. Central Monday. Miss those deadlines and the app gets reviewed on Tuesday and the agent has a jump on next week’s production.

56 Application Review Process
Application Written by Agent (7 days to upload) Agent uploads App to Portal Weekly deadline Monday 3:30 p.m. Central 10 days to upload Once an application is uploaded, it cannot be recalled QM should only hold apps: Applicant requests specific draft date Worksite case awaiting third applicant Only bad things happen when apps sit on an Agent’s laptop: Customer experiences a claim Laptop gets stolen, gets a virus, etc. QM does not have time to do their job properly because of Monday upload deadline and things get missed As an Agency Owner, how do you verify production against a WAR report without the apps being in the portal daily?

57 A-250 vs. Batch Applications
The A-250 application is the individual life insurance application (the one with 32 questions). When submitted to the Home Office, they go to an underwriter for review prior to issue. All other applications are considered Batch applications. When submitted to the Home Office, they go through a computer and issue the following day.

58 Using the Portal Use Google Chrome browser to access the portal
Access the Portal by clicking the icon on Agent Services To access the Agent Portal, log in to Agent Services and click on Agent Portal.

59 Using the Portal Once logged in, look at the Submitted Applications box, which shows the Pending Annual Premium ($7,579 in this example) and number of Pending Applications (45 in this example) Once you are logged in, look at the Submitted Applications section. The pending count shows how many applications are waiting to be reviewed and the pending annual premium shows how much annual premium those policies account for.

60 Portal Columns Click on the column headers to sort by that column
If it’s an individual policy, there will be no Franchise # Date Signed = When customers signed up Date Uploaded = When agent uploaded to portal Agents should upload daily The column headers sort when clicked. The Writing Agent listed is the Agent that logged in to the eapp. If the app was taken on Payroll Deduction, there will be a Franchise Number in the Franchise # column. If no franchise number, the app was taken on bank draft. The Date Signed is the date and time the application was signed by the customer. The Date Uploaded is the date and time the application was uploaded from the Agent’s computer to the portal. Applications can stay on an Agent’s computer for up to seven days before being automatically uploaded to the portal. Any app with 7 or more days between Date Signed and Date Uploaded should cause a phone call to that agent’s manager to make sure the business is quality.

61 Portal Columns Annual premium is the amount of premium the insured will pay each year for that policy Payment mode will have PD if Payroll Deduction Trial will have Torch symbol if it is a trial app

62 Review Process: Step 1 Upload all the ADPs
ADP = $3,000 Accidental Death Policy DC = Discount Card ADPs and DCs show an Annual Premium of $0 Upload all the $3,000 Accidental Death Policy first. These apps do not need to be reviewed as they have no health questions. Because there is no premium collected, there is no bank verification.

63 Review Process: Step 2 Click on Related App shows all applications submitted on a single payor Next is to click the ‘View’ button on the Related Apps column. This will show all the applications on each Payor. This gives the quality manager a much better picture of all the coverage purchased by the insured.

64 Related Apps Shows total amount of coverage purchased
Sheds light on total premium sold in the sale Need to know this for bank verification Don’t upload all apps from a family until all questions are answered. Many times, if one app is declined or cancelled the insured will cancel applications Next is to click the ‘View’ button on the Related Apps column. This will show all the applications on each Payor. This gives the quality manager a much better picture of all the coverage purchased by the insured. This is important because: Want to know the total amount of premium the customer will be paying to ensure affordability. This can be true on bank draft or worksite where a customer purchases multiple policies on multiple insureds. Many times, if an proposed insured has one policy rated, modified or cancelled, they will drop all of the coverage applied for. So we want to decide what we’re doing with all the applications for a payor before hitting submit. 3. You will need to know the total amount of the draft when doing bank verification.

65 Review Process: Step 3 View the image of the application by click on the Actions column Once an application has been viewed, it will show as a check mark If it has not been viewed, it will show as the application icon Next, click on the application icon in the Actions column to view the application. If it has already been viewed, a check mark will be displayed.

66 Reviewing Applications
Recommend sorting applications by the Franchise # column so that you can review the Bank Draft policies first Bank draft policies take longer to review, requiring more time to: Verify bank information Contact managers or customers to verify information on the app You can get your calls out and be waiting for responses while you move on to your PD apps Review bank draft applications first.

67 Reviewing Individual Applications
Application review doesn’t begin until the following have been submitted: What Comes Next Form Summary Sheet Voided Check Oral Swab form or bar code sticker Once all materials received, verify bank information. If the bank info is bad or funds are not available, no sense spending time reviewing the app Bank draft apps require the agent to turn in: What comes next form Summary Sheet Voided Check Oral Swab Form Verify bank info first.

68 Reviewing Individual Applications
Conduct Agency QAC using script on Agent Services Recommend QAC for: Medically questionable applications Agents in first 90 days Agents with below average DCN or Persistency Large face amounts/large premiums Group Term apps with ‘Yes’ answer on No. 9 QM communicates down chain of command to ADs only and gets answers before moving forward App approved/cancelled/changed to trial QMs can conduct Agency QAC calls using the Agency QAC script on Agent Services. Recommend QAC for: Medically questionable applications Agents in first 60 days Agents with below average DCN or Persistency Large face amounts Group Term apps with ‘Yes’ answer on No. 9 QM communicates down chain of command to ADs only and gets answers before moving forward App approved/cancelled/changed to trial

69 Review Payroll Deduction Applications
Check roster to make sure employee is eligible Employee must be employed six months or one year by end of enrollment period Re-enrollments: Use Worksite Management Information Report (AL915) to prevent duplicate coverage (Cancer Care/Endurance, Accident Protector Max) and exceeding coverage limits (Group Term, Career Life Plus, Cash Caner) On Applications, focus on: Question No. 9 on Group Term Medicaid Question The review process is different for Payroll Deduction applications. First, make sure the employee is eligible to purchase coverage by reviewing the roster. If the apps are from a re-enrollment, use the AL915 Worksite Management Information Report to make sure the coverage is not a duplication or exceeds coverage limits As far as the actual apps, because these applications are simplified, you only have to pay attention to a couple of questions: No. 9 on Group Term and the Medicaid Question. All other questions, if they had been answered yes, the application would not have been submitted to the portal.

70 Updating Information Information on the application cannot be updated
Customer Service if you gather information during the app review process that would be good for the Underwriting Department to know If the Agent entered notes on the application, there will be a notepad icon in the Agent Notes column No information on the application can be altered. If you learn additional information during the review process that should be provided to the underwriting department, send an to The notepad icon denotes that there are notes on the app.

71 Updating Information If during the bank verification process, it is discovered that the bank account information (routing or account number) is in accurate, it can be updated by clicking the plus symbol The one thing you can update is banking information. Click on the plus symbol next to the Writing Agent name. Once the window opens, you can change the name of the bank, routing and/or account number and City/State if needed.

72 Trial Applications QM changes app to Trial by clicking the button in the portal Customer receives a letter notifying them app was changed to Trial Starting Out: Always check with Agency Owner before Trialing an App Trial applications are an agent’s best friend. It allows the company to evaluate the insurability of a proposed insured without collecting premium. If the application is not placed, it does not count against the agent’s DCN. Click the ‘Change to Trial’ button to switch an app to Trial. The ability to trial and application is available only on A250 applications.

73 Cancelling Applications
Apps should be cancelled when the applicant has an uninsurable condition, Agent can’t be reached, customer calls in to cancel, duplicate applications QMs cancel by clicking the Cancel Application button. QM will have to provide a reason for cancel Customer will receive a letter Starting Out: Always check with Agency Owner before cancelling an App Cancel applications by clicking the ‘Cancel Applications’ button.

74 Approving Applications
Apps can be approved in two ways Click the plus symbol next to the Writing Agent’s name When the box expands, click ‘Approve Application’ The first way to approve an application is to click the plus symbol next to the Writing Agent and then click the ‘Approve Application’ button.

75 Approving Applications
Apps can be approved in two ways The second way, is to select multiple applications, and choose ‘Approve Applications’ from the dropdown menu If the Agent has been contracted less than 90 days or whose DCN or Persistency are worse than the company average, their apps must be approved one at a time The second way to approve apps is to choose multiple applications to upload at the same time. You will get an error message if an Agent’s applications are not able to be bulk uploaded because they have been contracted less than 90 days or their DCN or Persistency are below the company average.

76 Approving Applications
If the Agent has been contracted less than 90 days or whose DCN or Persistency are worse than the company average, you will see this message This is the message when an agent has been contracted less than 90 days or their DCN or Persistency are below the company average.

77 Agent training only. Not for sales use.
III. Individual Applications TMK Agent training only. Not for sales use. 77

78 Where can I find this information?
Individual underwriting rules found in the Agent Instruction Guide on Agent Services:

79 Agents Instruction Guide
The Agents Instruction Guide is the Underwriting handbook. It includes the height and weight chart, auto decline conditions, ALX-only conditions, and the medical history guide with general underwriting outcomes for specific medical conditions. The AIG is updated regularly; make sure you are using the most current version.

80 Reviewing Individual Applications
Application review doesn’t being until the following have been submitted: What Comes Next Form Summary Sheet Voided Check Oral Swab Once all materials received, verify bank information. If the bank info is bad or funds are not available, no sense spending time reviewing the app Bank draft apps require the agent to turn in: What comes next form Summary Sheet Voided Check Oral Swab Form Verify bank info first.

81 Agent training only. Not for sales use.
QM’s Best Line: “I’m sorry to hear that. Let me know when you get it and I’ll be glad to review your app.” TMK Agent training only. Not for sales use. 81

82 Reviewing Individual Applications
Conduct Agency QAC using script on Agent Services Recommend QAC for: Medically questionable applications Agents in first 90 days Agents with below average DCN or Persistency Large face amounts/large premiums Group Term apps with ‘Yes’ answer on No. 9 QM communicates down chain of command to ADs only and gets answers before moving forward App approved/cancelled/changed to trial QMs can conduct Agency QAC calls using the Agency QAC script on Agent Services. Recommend QAC for: Medically questionable applications Agents in first 60 days Agents with below average DCN or Persistency Large face amounts Group Term apps with ‘Yes’ answer on No. 9 QM communicates down chain of command to ADs only and gets answers before moving forward App approved/cancelled/changed to trial

83 Agent training only. Not for sales use.
What Comes Next? Form TMK Agent training only. Not for sales use. 83

84 Cancellations (2%) Top Reasons for Cancels Outdated COD
Non-Sufficient Funds (NSFs)/Bad Bank Information Requested by customer (QAC) QAC not completed Additional underwriting call, exam not complete Oral swab not complete Medical records not received Cancellations are caused by poor follow-up. The Agency doesn’t have systems in place to prevent these mistakes and no one owns a system to correct them once the home office in involved. The great news is that cancellations can be lowered with the use of simple systems.

85 What Comes Next Form Completed on every individual sale
Top copy goes to customer, pink copy to Quality Manager Must be received by quality manager for application to be uploaded to home office The What Comes Next Form should be completed on every individual sale. The top copy is left with the customer and the pink copy is turned in to the quality manager

86 What Comes Next? – Let’s fill one out
Use the What Comes Next form at the end of every presentation to prevent lost business because the customer did not understand the additional steps required to get their policy issued.

87 Agent training only. Not for sales use.
Summary Sheet Who would you rather be, the agent that writes $100,000 and gets paid renewals on 75% of it? Or the Agent that writes $125,000 and gets paid renewals on 50% of it? TMK Agent training only. Not for sales use. 87

88 Summary Sheet Completed on every individual sale
Top copy goes to customer, pink copy to Quality Manager Must be received by quality manager for application to be uploaded to home office The Summary Sheet is completed on every individual sale. It is the tangible leave-behind piece that explains to the customer what they purchased and what needs they protected.

89 Summary Sheet Based on what we heard previously about the impact of one bad app, when is a good time to train on quality? Orientation (overview of how it impacts pay and wealth-building through residual income as outlined in the recruiting process) Time of first sale. Show them how much they earn if it is issued and stays on the books. First DCN Detail Report. This is an autopsy. What can we learn from the past to help us in the future? Ongoing classroom training on field underwriting. Attended by new agents and any agent with below company DCN or persistency.

90 Oral Swab Form Barcode should have been entered in the e-app
No Oral Swab bar code? Do not upload app from portal until received No Oral Swab box? Best practice: Swab must be present for app to leave portal All swabs mailed from Agency Office Use FedEx not US Postal Never, ever submit an application to the home office from the portal without a oral swab bar code if one is required. We will only pend seven days before cancelling an app without an oral swab.

91 Oral Swab Authorization Form

92 Agent training only. Not for sales use.
App Review Packet TMK Agent training only. Not for sales use. 92

93 What’s in my App Review Packet
All items found in the Agents Instruction Guide Underwriting chart (A-4) Build Chart (A-12) Medical History Guide (A-28 through A-35) Plan Code Cheat Sheet QMs should create an App Review Packet. It includes: All items found in the Agents Instruction Guide Underwriting chart (A-4) Build Chart (A-12) Medical History Guide (A-28 through A-35) Plan Code Cheat Sheet

94 Underwriting Requirements Chart
Click the ‘Underwriting Rules’ tab in eapp. Tells you based on age and face amount if an oral swab is needed. Also tells you if an exam is needed so you can notify the customer at the time of sale.

95 Build Charts If the proposed insured does not fall within the standard weight limits shown on the chart, the proposed insured will be rated. (Charts CI/GTL/CLP). The Build Chart is listed in the Agents Instruction Guide. If a proposed insured weighs more than the maximum allowable on the chart, they are uninsurable. If they fall into one of the columns, B, C, D etc., they will pay additional premium for their policy. Table D generally means the premium will be at least twice as much as the original quoted premium. Recommendation is to submit a trial application on anyone with a Table D-L weight.

96 Juvenile Build Chart Use the Juvenile Build Chart if the proposed insured is less than 4 foot, 8 inches tall. Use the Standard Build Chart if the proposed insured is 4 foot, 8 inches or taller. How do I use the Juvenile Build Chart? If a proposed insured falls outside the standard weight for their age, submit the application on a Trial basis.

97 Medical History Guide Lists conditions and “general” guidelines
The Medical History Guide in the Agents Instruction Guide is a great tool. It lists common medical conditions and general guidelines for those conditions. Agents should use this resource for guidance when a condition they are unfamiliar with comes up during the application process.

98 Medical History Guide So let’s do a couple examples:
What is the “general” outcome for an applicant with… Blood pressure problems Cancer Multiple DUIs The Medical History Guide in the Agents Instruction Guide is a great tool. It lists common medical conditions and general guidelines for those conditions. Agents should use this resource for guidance when a condition they are unfamiliar with comes up during the application process.

99 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 (except marijuana) within a two-year period Confined to jail Automatic decline conditions as listed in the Agents Instruction Guide.

100 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 This is just a sample of the conditions for which a proposed insured will only be offered an ALX Modified Life policy. Do not quote the proposed insured a standard policy if they have a condition or habit listed in the Agents Instruction Guide.

101 Agent training only. Not for sales use.
World’s Worst App Who would you rather be, the agent that writes $100,000 and gets paid renewals on 75% of it? Or the Agent that writes $125,000 and gets paid renewals on 50% of it? TMK Agent training only. Not for sales use. 101

102 Key Areas To Review on A-250
1. Same last name as Agent: Personal Business In the E-app, the question reads: So who is immediate family? Agent, Spouse, Mother, Father, Brother, Sister, Children, or Grandchildren Agents may submit an app on immediate family members provided an is sent in advance to Agents should only answer Yes to the immediate family question if it meets the company’s definition of immediately family. When it does meet the definition, and must be sent prior to upload from the portal to to get approval.

103 Key Areas To Review on A-250
Age: Older, more likely to have health problems Birthplace: Non-citizen requires extra paperwork Height/Weight: Check Build Chart for rating What is the rating for 5-10, 295? Key areas to review on an A-250 application: Age: Older, more likely to have health problems Birthplace: Non-citizen requires extra paperwork Height/Weight: Check Build Chart for rating What is the rating for 5-10, 295?

104 Key Areas To Review on A-250
2. Drivers License: Why not have one? Not ID? If a person doesn’t have a drivers license, that’s a red flag. Why not? Most people who don’t have one lost it because of moving violations or DUIs.

105 Key Areas To Review on A-250
4. Employer: If no job, how going to pay? 5. Occupation: Does a Janitor need $1 million 8. Beneficiary: Do they have insurable interest? 12. Base Plan: Standard or ALX? Face amount? Trial? 13. Amount Paid: $$$$ 14. Riders: Who else on the app? ADB = Accidental Death Benefit PW = Premium Waiver Key areas to review on A-250 applications: 4. Employer: If no job, how going to pay? 5. Occupation: Does a Janitor need $1 million 8. Beneficiary: Do they have insurable interest? 12. Base Plan: Standard or ALX? Face amount? Trial? 13. Amount Paid: $$$$ 14. Riders: Who else on the app? ADB = Accidental Death Benefit PW = Premium Waiver

106 Key Areas To Review on A-250
Health Questions Looking for ‘Yes’ answers and notes detailing why the question was answered ‘Yes’. This is where we evaluate if an app should be cancelled or changed to Trial Expectation is that every ‘Yes’ answer has more detail listed in the Notes Section Yes answers to the health questions should be accompanied by notes from the agent.

107 Key Areas To Review on A-250 (Page 2)
Who signed the app? Difference between Proposed Insured and Applicant This impacts Agent’s Statement Good phone number for QAC call On page 2 of the A-250, want to verify who signed the app. Proposed insured is person that will be covered. Applicant is the person providing the information. Verify at a glance that the contact number is legitimate and not a situation.

108 Key Areas To Review on A-250 (Bank Info)
Authorization for Preauthorized Payments Bubble Sheet Bank Draft Form R-3616 Ever heard of the bank? Routing Number Legit? Account number more than 12 digits? Requested draft date between 1st and 10th Couple red flags on the bank draft form: Have you ever heard of the bank? Is the account number longer than 12 digits? If so, could be debit card or credit card. If the requested draft date is not between the 1st and the 10th pick up the phone and find out why. Customer may be drafted twice in the same month which can cause NSF and overdraft charges for the customer.

109 Initial Draft Initial Bank Draft happens first business day after upload to home office. That’s why the language in the What Comes Next form say the draft will occur in the “next couple of days” because agents don’t know when the app will leave the portal. And depending on when it is uploaded and what bank it’s being drafted from, it may take an additional day. Always choose a draft date between the first and the 10th of the month so that the applicant is not double drafted. The date selected in the eapp is the date of the second and subsequent drafts. The initial draft is deducted as soon as the policy is uploaded to the home office.

110 Draft Dates: Choose one between 1st – 10th
The date selected in the eapp is for the second and subsequent drafts. What day of the month do most people get paid? Only offer a date between the 1st and the 10th. The customer never has to worry about getting drafted twice in the same month. Always choose a draft date between the first and the 10th of the month so that the applicant is not double drafted. The date selected in the eapp is the date of the second and subsequent drafts. The initial draft is deducted as soon as the policy is uploaded to the home office.

111 For the love of Pete … get a voided check
Get the check No check, get bank statement No statement, look online with customer No online bank, call the bank with customer to verify Agents should always get a voided check. If the customer does not have a voided check, get a bank statement. If the customer has no bank statement, verify online with the bank. If you can’t do that, call the bank with the customer and verify the routing and account number. In the eapp, click ‘Click Here to View Sample Check’ to see what info the agent should be entering from the check. One common error, is when agents add the check number to the account number. The point is, the bank account information must be verified before the application is uploaded to the home office.

112 What Agents are Trained to do…
Get the check Agents should always get a voided check. If the customer does not have a voided check, get a bank statement. If the customer has no bank statement, verify online with the bank. If you can’t do that, call the bank with the customer and verify the routing and account number. In the eapp, click ‘Click Here to View Sample Check’ to see what info the agent should be entering from the check. One common error, is when agents add the check number to the account number. The point is, the bank account information must be verified before the application is uploaded to the home office.

113 GIACT.COM Giact.com should be used for Banks that will not verify if an account is valid Costs $.27 per verification We don’t accept as forms of payment Debit Cards, Credit Cards, or Savings Accounts. Also the company cannot accept Prepaid Debit cards such as Metabank, Green Dot, Net Spend, and Chase Liquid. These types of cards, and there are many others, do not allow the company to draft funds from the card.

114 GIACT.COM Codes that should be uploaded: 1111 Pass AV 3333 Pass NPP
4444 Pass NRA ND00 No Data All other codes: DON’T upload the application We don’t accept as forms of payment Debit Cards, Credit Cards, or Savings Accounts. Also the company cannot accept Prepaid Debit cards such as Metabank, Green Dot, Net Spend, and Chase Liquid. These types of cards, and there are many others, do not allow the company to draft funds from the card.

115 We Don’t Accept Debit cards Credit cards Savings accounts
Prepaid cards such as Metabank, Green Dot (MoneyPak), NetSpend (14 or 16 digit account numbers), Chase Liquid, Amex Bluebird Don’t take plastic Don’t use Interim Term Rider We don’t accept as forms of payment Debit Cards, Credit Cards, or Savings Accounts. Also the company cannot accept Prepaid Debit cards such as Metabank, Green Dot, Net Spend, and Chase Liquid. These types of cards, and there are many others, do not allow the company to draft funds from the card.

116 Don’t Forget Bank verification should be done on…
CODs involving a redraft OPAIs Term conversions (customers should also be called to verify they understand changes) We don’t accept as forms of payment Debit Cards, Credit Cards, or Savings Accounts. Also the company cannot accept Prepaid Debit cards such as Metabank, Green Dot, Net Spend, and Chase Liquid. These types of cards, and there are many others, do not allow the company to draft funds from the card.

117 Key Areas To Review on A-250 (Notes)
Notes should be specific and detailed (dates, frequency, treatments, dosage, last reading, etc.) Notes should be on the cover letter and give as much detail as possible about conditions, hospitalizations, treatments, dosage, frequency, etc.

118 Medications/Conditions
Never heard of a medication … Google it! If you have never heard of a medication, google it. Oftentimes, the answer to the health question will be NO, but the applicant will list a prescription that is used to treat that condition.

119 Trialing/Cancelling Applications
TMK Agent training only. Not for sales use. 119

120 Trial Applications When applicants are medically questionable
When the applicant will be rated for build When applicant will have to undergo exam When adult applicant has a non-spouse payor Non-citizen, guardian, power of attorney Trial application are used when the applicant is medically questionable and the QM can’t tell if the app will be rated or modified or issued standard.

121 Trial Applications Only A-250s can be changed to trial
Agents can submit on trial by click the box in the eapp Trial applications do not pay commission until policy issues If customer doesn’t take policy, does not negatively impact DCN or Persistency Starting Out: Always check with Agency Owner before changing App to Trial Trial applications are an agent’s best friend. It allows the company to evaluate the insurability of a proposed insured without collecting premium. If the application is not placed, it does not count against the agent’s DCN.

122 Trial Applications QM changes app to Trial by clicking the button in the portal Customer receives a letter notifying them app was changed to Trial Starting Out: Always check with Agency Owner before Trialing an App Trial applications are an agent’s best friend. It allows the company to evaluate the insurability of a proposed insured without collecting premium. If the application is not placed, it does not count against the agent’s DCN. Click the ‘Change to Trial’ button to switch an app to Trial. The ability to trial and application is available only on A250 applications.

123 Cancelling Applications
Apps should be cancelled when the applicant has an uninsurable condition, Agent can’t be reached, customer calls in to cancel, duplicate applications QMs cancel by clicking the Cancel Application button. QM will have to provide a reason for cancel Customer will receive a letter Starting Out: Always check with Agency Owner before cancelling an App Cancel applications by clicking the ‘Cancel Applications’ button.

124 Agent training only. Not for sales use.
Agency QAC Script TMK Agent training only. Not for sales use. 124

125 Reviewing Individual Applications
Conduct Agency QAC using script on Agent Services Recommend QAC for: Medically questionable applications Agents in first 90 days Agents with below average DCN or Persistency Large face amounts/large premiums Group Term apps with ‘Yes’ answer on No. 9 QM communicates down chain of command to ADs only and gets answers before moving forward App approved/cancelled/changed to trial QMs can conduct Agency QAC calls using the Agency QAC script on Agent Services. Recommend QAC for: Medically questionable applications Agents in first 60 days Agents with below average DCN or Persistency Large face amounts Group Term apps with ‘Yes’ answer on No. 9 QM communicates down chain of command to ADs only and gets answers before moving forward App approved/cancelled/changed to trial

126 Agency QAC Call: Let’s fill one out
Agents should reach out directly to the customer if the QAC call is not promptly completed. Use the Pending Business Script in the Quality Business Section of Agent Services and connect the customer directly to the QAC department.

127 Pending Business Script: Bank Verification
TMK Agent training only. Not for sales use. 127

128 Bank Verification Script
Every bank account should be verified with the bank to make sure the account is active and open and that the funds are available. Use the Pending Business Script in the Quality Business Section of Agent Services.

129 Agent training only. Not for sales use.
Bank Tracker TMK Agent training only. Not for sales use. 129

130 Purpose of the Bank Tracker
Keep all bank info at your fingertips for faster bank verification Track all routing numbers and account number length Easy to identify new “banks” Add your comments Save on your desktop The Bank Tracker is merely a spreadsheet to allow QMs to track the banks they most frequently interact with.

131 Sample Bank Tracker The Bank Tracker is merely a spreadsheet to allow QMs to track the banks they most frequently interact with.

132 Agent training only. Not for sales use.
Oral Swab Not Complete TMK Agent training only. Not for sales use. 132

133 No excuse for not getting an Oral Swab.
No Oral Swab = No Upload No excuse for not getting an Oral Swab. Do not upload an application without the code on the application: No excuse for not getting an oral swab. Unprofessional to have to come back a second trip.

134 Underwriting Requirements Chart
Click the ‘Underwriting Rules’ tab in eapp. Tells you based on age and face amount if an oral swab is needed. Also tells you if an exam is needed so you can notify the customer at the time of sale.

135 Oral Swab Authorization Form

136 Pending Business Script: QAC Call Not Complete
TMK Agent training only. Not for sales use. 136

137 What is QAC Call? Quality Assurance Call. RIP same thing
Made from the Home Office to verify the information collected by the Agent is accurate before the company issues a policy Company calls three times a day, six days a week for 21 days before App is cancelled After 7 days, we send a letter to applicant If phone number is bad, QAC notifies Agency Owner QAC = Quality Assurance Call

138 What Comes Next? The What Comes Next form reminds customers they have to complete the QAC call and they may receive more than one call.

139 Pending QAC Script Agents should reach out directly to the customer if the QAC call is not promptly completed. Use the Pending Business Script in the Quality Business Section of Agent Services and connect the customer directly to the QAC department.

140 Customer Cancels on QAC
Agency is notified and has three business days to respond before the app is cancelled QAC = Quality Assurance Call

141 Top Reasons for Cancels on QAC
Financial No longer interested Went with competitor Already has coverage Upset with bank draft QAC = Quality Assurance Call

142 Agent training only. Not for sales use.
Medical Records Not Received TMK Agent training only. Not for sales use. 142

143 When are medical records ordered?
Factors include: Age Face amount of the policy Medical conditions Treatment Paper apps must be uploaded by 10 a.m. on Monday to be processed with that week’s submit.

144 Medical Records: AI Records
Medical records may take a while to obtain For status https://prodwebapps.ailife.com/apsweb/login.aspx Username: airecords Password: agents1 Click: Case Search Paper apps must be uploaded by 10 a.m. on Monday to be processed with that week’s submit.

145 Medical Records: AI Records
Enter the policy number, starting with A in the policy number field Click search Click on ‘Select’ Paper apps must be uploaded by 10 a.m. on Monday to be processed with that week’s submit.

146 Medical Records: AI Records
Paper apps must be uploaded by 10 a.m. on Monday to be processed with that week’s submit.

147 Medical Records: AI Records
Paper apps must be uploaded by 10 a.m. on Monday to be processed with that week’s submit.

148 Medical Records When all else fails, get the customer to call the doctor Paper apps must be uploaded by 10 a.m. on Monday to be processed with that week’s submit.

149 Agent training only. Not for sales use.
Paper Applications Who would you rather be, the agent that writes $100,000 and gets paid renewals on 75% of it? Or the Agent that writes $125,000 and gets paid renewals on 50% of it? TMK Agent training only. Not for sales use. 149

150 Paper Applications Must be received in Home Office by 10 a.m. Monday to be processed with that week’s submit Can only be used in states where the product is not available on e-app Call customers on Term Conversions, make sure they understand what happened and the increase in premium Conduct Bank Verification on CODs and OPAIs like you would a new app Paper apps must be uploaded by 10 a.m. on Monday to be processed with that week’s submit.

151 IV. Reviewing Worksite Applications
Who would you rather be, the agent that writes $100,000 and gets paid renewals on 75% of it? Or the Agent that writes $125,000 and gets paid renewals on 50% of it? TMK Agent training only. Not for sales use. 151

152 Worksite Applications
Simpler Apps than the A-250 No bank verification, premiums from paychecks No Oral Swabs Apps cannot be changed to Trial Two biggest challenges: Ineligible employees (roster) Re-enrollments: Duplicate coverage or exceeds limits

153 Worksite Application Review Process
Must have 3 EMPLOYEES purchase Check roster to make sure employee is eligible Re-enrollments: Use Worksite Management Information Report (AL915) to prevent duplicate coverage and exceeding coverage limits Question No. 9 on Group Term Medicaid Question

154 Eligible Employees To be eligible, employees must:
Work 30+ hours per week Been employed 6 months Be in an approved industry Not be leased or contracted

155 How to Read the Roster…. If the enrollment period ends in July 2013, which employees would not be eligible? On an enrollment, every agent must have a copy of the employee roster to avoid writing business on employees that are not eligible – which leads to declined policies.

156 Worksite Management Information Report
Report AL915: Updates Saturdays Worksite Management Information Report which shows the existing coverage and face amounts. This will avoid policies being declined for multiple policies on the same insured and coverage exceeding limits.

157 Plan Code Cheat Sheet Plan Code Cheat Sheet show the most popular products and their plan codes: Circle these 1W = Whole Life 1U = Career Life Plus AL = ALX Modified Life E = Group Term 3 = Term HA = Accident Protector Max 5K= Cancer Care 5M = Critical Illness LS = Cash Cancer

158 Where do I find this info?
Where do I find out about policy limits and other rules? Click on Products Select your state The other top reasons for declines on worksite business are related to not having the Worksite Management Information report to review existing coverage on re-enrollments and lack of product training.

159 Marketplace Bulletins
Look in the Benefit Overview section of the Marketplace Bulletin Plans that most often exceed coverage limits: Group Term: $150,000 employee issue age 40 and under. $100,000 employee issue age 41-55 $50, and over, and dependents. Career Life Plus: $50,000 maximum Cash Cancer: $50,000 maximum The plans that most often exceed limits are Group Term, Career Life Plus and Cash Cancer.

160 Duplicate Coverage Plans most likely to duplicate coverage Cancer Care/Endurance (5K) and Accident Protector Max (HA) The plans that most often are duplicates are Cancer Care/Endurance and Accident Protector Max.

161 Collecting phone numbers on the eapp…
Only reason we would call a Worksite customer is if they have left their job. So why would we only collect an office number? On the worksite eapp, make sure we’re getting a home phone number. If we only collect a work number and they leave their job, we don’t have a number to contact them to move the policy to bank draft.

162 Group Term No. 9 Only question on Group Term that can be answered ‘yes’ and be issued standard Can only be ‘yes’ for high blood pressure HBP must be controlled (140/90) The only question on the Group Term application that can be answered Yes and the policy still be issued is No. 9. But because the question asks multiple things, the Agent must ask more questions. The answer can only be to blood pressure. If it is a yes answer to No. 9 on high blood pressure the Agent should ascertain whether the BP is under control, last reading of 140/90 or lower. Otherwise pivot to ALX or Career Life Plus.

163 E-app On Batch apps, the e-app will not allow the application to be completed if the height and weight limits are exceeded You don’t have to review a build chart on group term and career life plus.

164 E-app On Batch apps, if the applicant answers a question ‘Yes’ that would cause it to be declined, the agent receives this message and is not allowed to complete the app You don’t have to review most of the health question because if the applicant had answered yes, the agent would not have been able to upload that app to the portal.

165 E-app On Batch apps, if an applicant answers ‘Yes’ to the Medicaid question, the box below will appear. A yes answer to the Medicaid question is a red flag because the customer will receive no benefits if they have a claim. The company mails them a letter after the policy issues that explains this and that’s when customers usually cancel.

166 Medicare On Batch apps, if the applicant answers ‘Yes’ to the Medicare question, the box below appears and the app cannot be completed. A yes answer on the Medicare question is an automatic decline.

167 VI. Worksite Case Tracking
TMK Agent training only. Not for sales use. 167

168 Individual vs. Worksite
Individual Business (Bank Draft): Written in the home through the needs-based laptop presentation. Premiums paid through checking account Worksite Business: Also known as Payroll Deduction (PD) or Section 125. Written in the workplace to employees. Premiums deducted from employees’ paycheck and sent by employer to Liberty National

169 Where can I find this information?
Individual underwriting rules found in the Worksite Agent Guide on Agent Services:

170 Worksite Agent Guide The Worksite Agent Guide includes guidelines on eligible industries and employees, as well as descriptions on how to correctly fill out all worksite approval paperwork.

171 Enrollments and Re-enrollments
Worksite cases have an initial enrollment period often called the Annual Enrollment The second and subsequent enrollments are called re-enrollments. They can happen every six months. They are often called mid-year enrollments

172 Worksite Approval Paperwork
TMK Agent training only. Not for sales use. 172

173 Worksite Process Agent secures agreement with business owner to allow Liberty to offer benefits to his employees

174 Use the Electronic Packet
Value of Electronic Packets No omissions Completes duplicate info Sets correct enrollment, deduction, and effective dates Gives reminder to get roster

175 Worksite Approval Paperwork
Agent turns in Approval Paperwork to Quality Manager with signed roster (hard copy or ) Quality Manager reviews paperwork and corrects any missing/inaccurate information Quality Manager gets the paperwork signed by Agency Owner Quality Manager s signed paperwork to Agency Owner and Quality Manager receive approval from Worksite Department This is the workflow of worksite paperwork.

176 So what is the QM reviewing?
Must have signed roster Must have good contact information, preferably multiple contacts and addresses Payment mode Verify enrollment dates, deduction date, and effective dates are correct. Electronic packets do this automatically These are the key points a QM should be reviewing on the worksite approval paperwork prior to going to the Agency Owner for a signature.

177 Reviewing the Packet The key information is found on the Payroll Deduction Billing Information Sheet.

178 Reviewing the Packet Number of eligible employees. Must be at least three. The smaller the case, the more diligent QM has to be getting first bill paid. The more contact info, the better. Owner is not always best person to verify roster. The fewer the number of eligible employees, that more oversight the case will require because the owner is typically the bookkeeper as well and they are very busy/haven’t done deductions before. Get multiple contact information, particularly addresses.

179 Reviewing the Packet 4. Any mode selected other than Monthly requires a conversation with the Agent/Manager 8. Make sure dates are correct on paper packets The frequency payments should be sent in should be monthly. If it is anything other than monthly, that warrants a call with the manager. Non-monthly payment modes, don’t generate a late bill and the reports don’t update as accurately. Plus would you rather have to rely on a bookkeeper sending 12 checks a year vs. 24, 26, or 52?

180 Understanding Billing Payment Frequency
TMK Agent training only. Not for sales use. 180

181 Payment Modes The selections made on the Worksite Approval Paperwork are critical They determine the rates the employees will be quoted, based on their deduction type And they determine how much premium and how often the company will be billed The frequency payments should be sent in should be monthly. If it is anything other than monthly, that warrants a call with the manager. Non-monthly payment modes, don’t generate a late bill and the reports don’t update as accurately. Plus would you rather have to rely on a bookkeeper sending 12 checks a year vs. 24, 26, or 52?

182 Payment Modes Payment Mode Number Bills Per Year Weekly 52 Bi-Weekly
26 Semi-Monthly 24 Every 4 Weeks 13 Monthly 12 The frequency payments should be sent in should be monthly. If it is anything other than monthly, that warrants a call with the manager. Non-monthly payment modes, don’t generate a late bill and the reports don’t update as accurately. Plus would you rather have to rely on a bookkeeper sending 12 checks a year vs. 24, 26, or 52?

183 Payment Modes We always want the employer to pay their bill monthly. Why? Most other bills (rent, electric) are paid monthly Fewest number of times they have to pay Any other payment mode, they will not receive a late bill Reporting easier to inspect The frequency payments should be sent in should be monthly. If it is anything other than monthly, that warrants a call with the manager. Non-monthly payment modes, don’t generate a late bill and the reports don’t update as accurately. Plus would you rather have to rely on a bookkeeper sending 12 checks a year vs. 24, 26, or 52?

184 Monthly Bill Bookkeeper should pay the amount on the bill
Every 13 weeks the deductions and billing will balance out to $0 The frequency payments should be sent in should be monthly. If it is anything other than monthly, that warrants a call with the manager. Non-monthly payment modes, don’t generate a late bill and the reports don’t update as accurately. Plus would you rather have to rely on a bookkeeper sending 12 checks a year vs. 24, 26, or 52?

185 Monthly Bill Bookkeeper should pay the amount on the bill
The amount deducted may not match the bill Every 13 weeks the deductions and billing will balance out to $0 The frequency payments should be sent in should be monthly. If it is anything other than monthly, that warrants a call with the manager. Non-monthly payment modes, don’t generate a late bill and the reports don’t update as accurately. Plus would you rather have to rely on a bookkeeper sending 12 checks a year vs. 24, 26, or 52?

186 Monthly Bill = $130 Weekly Deduct = $30
March Four Fridays April May Five Fridays Premiums Deducted From Employees Paycheck Premiums Deducted From Employees Paycheck Premiums Deducted From Employees Paycheck Wk 1 $30 Wk 2 $30 Wk 3 $30 Wk 4 $30 Wk 1 $30 Wk 2 $30 Wk 3 $30 Wk 4 $30 Wk 1 $30 Wk 2 $30 Wk 3 $30 Wk 4 $30 Wk 5 $30 Deducted $120 Deducted $120 Deducted $150 Billed $130 Billed $130 Billed $130 Total Deducted $390 Total Billed $390

187 4-Week Bill Some government entities/non-profits will request a 4-week bill 4-week bills are easy because you pay what you deduct Bookkeepers mistakenly believe that because she has paid all 12 months, she has paid all her bills 4-Week Billings will receive 13 bills per year, not 12 There are 52 weeks in a year, not 48 If bookkeeper pays 12 times a year on a 4-week bill, they will be one month behind after one year and two months behind after two years, then lapse The frequency payments should be sent in should be monthly. If it is anything other than monthly, that warrants a call with the manager. Non-monthly payment modes, don’t generate a late bill and the reports don’t update as accurately. Plus would you rather have to rely on a bookkeeper sending 12 checks a year vs. 24, 26, or 52?

188 Bi-weekly vs. Semi-monthly
There are 52 weeks in a year Bi-weekly pay mode means 26 payments. They should be set up on Monthly bill to reduce number of payments Semi-monthly pay mode means 24 payments. They should be set up on Monthly bill to reduce number of payments Some companies pay their employees bi-weekly (26 times a year) but on two paychecks a year, they don’t take any deductions, meaning they should be on a semi-monthly bill (24 times a year) The frequency payments should be sent in should be monthly. If it is anything other than monthly, that warrants a call with the manager. Non-monthly payment modes, don’t generate a late bill and the reports don’t update as accurately. Plus would you rather have to rely on a bookkeeper sending 12 checks a year vs. 24, 26, or 52?

189 Worksite Case Approval Email
Gives the Franchise Number Sets the employment rule length (6 months or 1-year) QM is copied on the Case Approval . Pay attention to the employment rule so you know who is eligible on the roster.

190 Worksite Case Unable to Contact
Agency Owner receives when unable to complete verification call If the home office can’t reach the decision maker, you will be notified to help.

191 Organizing Your Drawer
Folders for: What Comes Next Forms Pending Worksite Approvals 5 folders for CODs 12 folders for approved worksite cases

192 Agent training only. Not for sales use.
New Worksite Case Tracking Who would you rather be, the agent that writes $100,000 and gets paid renewals on 75% of it? Or the Agent that writes $125,000 and gets paid renewals on 50% of it? TMK Agent training only. Not for sales use. 192

193 Three Periods of Worksite
Enrollment Period: Always ends on last day of month Deduction Period: Always one month long Effective Period: Always the first of the month Based on what we heard previously about the impact of one bad app, when is a good time to train on quality? Orientation (overview of how it impacts pay and wealth-building through residual income as outlined in the recruiting process) Time of first sale. Show them how much they earn if it is issued and stays on the books. First DCN Detail Report. This is an autopsy. What can we learn from the past to help us in the future? Ongoing classroom training on field underwriting. Attended by new agents and any agent with below company DCN or persistency.

194 New Worksite Case Tracker
On Worksite Cases, if it starts good, it stays good. If it starts bad it stays bad QM’s are responsible for making sure the first bill gets paid We do that by verifying three critical points: Payroll Deduction Authorizations delivered to BK Deductions Started First Bill Received Based on what we heard previously about the impact of one bad app, when is a good time to train on quality? Orientation (overview of how it impacts pay and wealth-building through residual income as outlined in the recruiting process) Time of first sale. Show them how much they earn if it is issued and stays on the books. First DCN Detail Report. This is an autopsy. What can we learn from the past to help us in the future? Ongoing classroom training on field underwriting. Attended by new agents and any agent with below company DCN or persistency.

195 From Employee Paycheck Bills Mailed or E-mailed
The Three Periods of Worksite Enrollment Period November Deduction Period December Effective Period January Late February $10 5 Premiums Deducted From Employee Paycheck $10 12 $10 19 $10 26 22 Bills Mailed or ed $40 1 Bill Due 16 Late From HO 1 Luke Involved 30 Not Taken Status Letters Mailed 10-11 Enrollment Conducted 30 Verify PD Authorizations Delivered 1 2-3 Verify Deductions Started 2 10 Verify Bill Received 3 19 Commission Chargeback

196 The No. 1 Reason Worksite cases blow up is because authorizations are not delivered on time and deductions never start or start late 90% of the reasons business is pended during the issue process is because of poor solidification at the worksite. Agents must make sure the proposed insured understands what they bought, how much is costs and how often it will come out of their paycheck.

197 Agent training only. Not for sales use.
Creating New Case Tracker Who would you rather be, the agent that writes $100,000 and gets paid renewals on 75% of it? Or the Agent that writes $125,000 and gets paid renewals on 50% of it? TMK Agent training only. Not for sales use. 197

198 New Worksite Case Tracker
Report PD01 Franchise Initial Premium Unpaid Updates Daily Cases stay on this report until first payment is applied or it becomes 60 days past due and becomes a not taken Based on what we heard previously about the impact of one bad app, when is a good time to train on quality? Orientation (overview of how it impacts pay and wealth-building through residual income as outlined in the recruiting process) Time of first sale. Show them how much they earn if it is issued and stays on the books. First DCN Detail Report. This is an autopsy. What can we learn from the past to help us in the future? Ongoing classroom training on field underwriting. Attended by new agents and any agent with below company DCN or persistency.

199 New Worksite Case Tracker
Based on what we heard previously about the impact of one bad app, when is a good time to train on quality? Orientation (overview of how it impacts pay and wealth-building through residual income as outlined in the recruiting process) Time of first sale. Show them how much they earn if it is issued and stays on the books. First DCN Detail Report. This is an autopsy. What can we learn from the past to help us in the future? Ongoing classroom training on field underwriting. Attended by new agents and any agent with below company DCN or persistency.

200 Agent training only. Not for sales use.
New Worksite Case Scripts Who would you rather be, the agent that writes $100,000 and gets paid renewals on 75% of it? Or the Agent that writes $125,000 and gets paid renewals on 50% of it? TMK Agent training only. Not for sales use. 200

201 New Worksite Case Verification Calls
On Worksite Cases, if it starts good, it stays good. If it starts bad it stays bad QM’s are responsible for making sure the first bill gets paid We do that by verifying three critical points: Payroll Deduction Authorizations delivered Deductions Started First Bill Received

202 PD Authorization This is the Payroll Deduction Authorization. It is a triplicate carbon copy form. The canary copy goes to the bookkeeper.

203 PD Authorization – Employee Sees
It’s important to know the language the customer is agreeing to when they sign the Payroll Deduction Authorization. This is the language that outlines when they can drop their coverage outside the enrollment period.

204 Points to Remember – Employer Sees
It’s important to know the language the customer is agreeing to when they sign the Payroll Deduction Authorization. This is the language that outlines when they can drop their coverage outside the enrollment period.

205 What happens every week?
Last week of September Were authorizations for September enrollments and re-enrollments turned in to bookkeeper? First week of October Did deductions start for September enrollments? Second week of October Did August enrollments receive first bill? Third week of October Are all cases paid for October? Every week each month, something key happens in the Agency to make sure all worksite cases are running smoothly. Last week of the month: Were deductions turned in to the bookkeeper for cases enrolled that month? First week of the month: Were deductions started for the previous month’s enrollments? Second week of the month: Did enrollments that ended two months ago receive their first bill? Third week of the month: Are all cases paid current, particularly cases paying for the first time?

206 New Worksite Case Script

207 Email From Home Office Sent on 16th of month
New cases that reach 15 days past due receive an to the agency owner and QM.

208 Red Alert PD01001: Franchise Initial Premium Unpaid (Daily)
Key report to know: Franchise Initial Premium Unpaid. If it starts good, it goes good. If it starts bad, you will always be playing catchup. Anything that is 35 or more days past due is a red-alert requiring a personal visit from a manager to collect the check.

209 The Worksite Timeline 49 days late
Policies lapse, agents and managers charged back commission, polices show as lapsed in transaction register 60 days late Letter generated from the Home Office to all policyholders and Employer Policies become Not Takens against the DCN of everyone paid on the case At 49 days past due, the policies lapse and commissions are charged back. At 60 days past due, the employer and employees receive a letter from Liberty National informing them that their payroll deduction agreement has been terminated. The Policies also become Not Takens against the DCN of everyone paid on the case.

210 Letter Customers Receive

211 Letter Employer Receives

212 The Worksite Timeline After 60 Days
Case must go through reinstatement process requiring all back premiums and letter from business stating premiums have been continuously deducted, no claims have been filed, and the employer understands Liberty will not reinstate their policies if this happens again. Case must go through reinstatement process requiring all back premiums and letter from business stating premiums have been continuously deducted, no claims have been filed, and the employer understands Liberty will not reinstate their policies if this happens again.

213 Worksite Reinstatement Requirements
This is the Reinstatement Letter that a lapsed case must complete.

214 Worksite Reinstatement Requirements
If a case is reinstated, no new business can be written at the next enrollment period Case must go through reinstatement process requiring all back premiums and letter from business stating premiums have been continuously deducted, no claims have been filed, and the employer understands Liberty will not reinstate their policies if this happens again.

215 Tracking Existing Cases
TMK Agent training only. Not for sales use. 215

216 Why track existing cases?
To ensure prompt payment: Keeps commissions and renewals coming Identify issues with the business Make sure they are paid current before re-enrollments Do not re-enroll a case that past due for payment There are many advantages to tracking and servicing existing worksite cases.

217 Tracking Existing Cases
Use Qlikview Worksite Dashboard Updates Tuesdays ID cases 15+ days past due Use the Qlikview Worksite Dashboard to track payments for existing cases.

218 Tracking Existing Cases
Use AL04 Worksite List by Franchise If a case appears to be late, verify on AL915 Worksite Management Info Report before calling the business Sometimes the case has paid but one policy has not, making the case appear late Use the Qlikview Worksite Dashboard to track payments for existing cases.

219 What happens every week?
Last week of September Were authorizations for September enrollments and re-enrollments turned in to bookkeeper? First week of October Did deductions start for September enrollments? Second week of October Did August enrollments receive first bill? Third week of October Are all cases paid for October? Every week each month, something key happens in the Agency to make sure all worksite cases are running smoothly. Last week of the month: Were deductions turned in to the bookkeeper for cases enrolled that month? First week of the month: Were deductions started for the previous month’s enrollments? Second week of the month: Did enrollments that ended two months ago receive their first bill? Third week of the month: Are all cases paid current, particularly cases paying for the first time?

220 Agent training only. Not for sales use.
Existing Cases Script TMK Agent training only. Not for sales use. 220

221 Existing Worksite Case Script
Use the existing case script to contact late cases.

222 Worksite Online Billing
Most common challenges with Online Billing Bills are ed (they don’t get a paper bill) Bills ed from on the 22nd of the month Can’t log in: PIN on welcome from Worksite online billing can be a great tool for computer savvy bookkeepers. Best guidance is the start the case on a paper bill, meet with the bookkeeper to get the first bill paid, then switch them over in person so you can show them how to log in.

223 Moving Payroll Deduction Customers to Bank Draft
TMK Agent training only. Not for sales use. 223

224 Moving Payroll Deduction to Bank Draft
More premium lost on this issue than any other! Are you licensed? If so … Will move transferred business to you for commissions

225 How the Money Works Agency Owners can move commissions/renewals to:
Agents / Supervising Agents Agency Director / Regional Agency Directors Licensed Quality Manager The newly commissioned person must have performed work to conserve the business Agency Owner continues receiving, if already getting paid, or begins receiving commissions/renewals, if not Agency Director continues receiving, if already getting paid, or begins receiving commissions/renewals, if not

226 How the Money Works If there are unpaid first-year commissions, they will be paid into the commission account Renewals will be paid as-earned starting with the first premium payment following conservation Renewals will be paid at the rate it was payable at the time the policy was originally issued

227 Original Writing Agent
Original writing agent should always receive first opportunity to conserve As always, if the original writing agent conserves the business, they keep getting commissions/renewals Recommendation is to give original agent 7 days to conserve. After that, open to all Agency

228 Agent training only. Not for sales use.
Waiving Premiums TMK Agent training only. Not for sales use. 228

229 Waiving Premium Rules Will waive up to three months premium
Will only waive premiums that are missed Do not waive future premiums When moving customers from payroll deduction to bank draft, we can waive up to two months premium but only premiums that have been missed. For example, if the policy came off the bill due for Jan. 1 and we contact the customer on Feb. 5 and they wanted to keep their coverage, we would waive the January premium and draft them for February. They haven’t missed February.

230 Waiving Premium Rules Today is July 10
Paid to 7/1 = waive 0 months. Draft for July Paid to 6/1 = waive 1 month (June). Draft for July Paid to 5/1 = waive 2 months (May & June). Draft for July Paid to 4/1 = waive 3 months (April, May & June) Importance of getting bills paid on time When moving customers from payroll deduction to bank draft, we can waive up to two months premium but only premiums that have been missed. For example, if the policy came off the bill due for Jan. 1 and we contact the customer on Feb. 5 and they wanted to keep their coverage, we would waive the January premium and draft them for February. They haven’t missed February.

231 When do we draft? Premium drafted as soon as conservation form received in the home office Example: Today is July 17 Policy is due for June 1 Waive June payment Waive July payment (since after July 15) Draft on July 18 when form received in home office for August premium Draft next on September 1st through 10th for September premium When moving customers from payroll deduction to bank draft, we can waive up to two months premium but only premiums that have been missed. For example, if the policy came off the bill due for Jan. 1 and we contact the customer on Feb. 5 and they wanted to keep their coverage, we would waive the January premium and draft them for February. They haven’t missed February.

232 Waiving Premium Rules The 15th is the cutoff each month for waiving premium On July 10, if a customer is due for July 1 we wouldn’t waive premium On July 16, if a customer is due for July 1 we would waive July’s premium and draft for August Remember, each time a month’s premium is waived, everyone involved is waiving that month’s commission or renewal When moving customers from payroll deduction to bank draft, we can waive up to two months premium but only premiums that have been missed. For example, if the policy came off the bill due for Jan. 1 and we contact the customer on Feb. 5 and they wanted to keep their coverage, we would waive the January premium and draft them for February. They haven’t missed February.

233 Agent training only. Not for sales use.
Who do I call? TMK Agent training only. Not for sales use. 233

234 Worksite Bills Each week when bills are processed, employees are marked off the bill by the bookkeeper This is a sample of what the bill looks like when an employee is marked off permanently.

235 Who do I call? Policies that are no longer being paid through payroll deduction are published on the Saturday SAMs The Saturday SAMs message includes all the employees marked off the bill each week.

236 Agent training only. Not for sales use.
What do I say? TMK Agent training only. Not for sales use. 236

237 What do I say when I call Use script on Quality Business section of Agent Services Transferring from Payroll Deduction to Bank Draft

238 Three good things Many times the employee is no longer on the bill because they left to take another job We can keep their premiums coming out of their paycheck by setting up their new employer as a Liberty National franchise Our customer knows who handles benefits because they just met with them The No. 1 reason customers will hesitate is because they are out of a job. Guess what? We’re hiring! Many customers have come to work for us Personal recruiting incentive ($400)

239 Transferring PD to Bank Draft Script

240 Agent training only. Not for sales use.
Organizing Follow-up Who would you rather be, the agent that writes $100,000 and gets paid renewals on 75% of it? Or the Agent that writes $125,000 and gets paid renewals on 50% of it? TMK Agent training only. Not for sales use. 240

241 PD to Bank Draft Instructions
Instructions found on Conservation Log Instructions tab Transfer the Saturday SAMs message to an Excel Spreadsheet. Use the field inquiry to look up the their phone number.

242 Conservation Log Sample
Transfer the Saturday SAMs message to an Excel Spreadsheet. Use the field inquiry to look up the their phone number.

243 Looking Up Policies Use the Field Inquiry Screen on Agent Services to look up customer’s phone number by using policy number Transfer the Saturday SAMs message to an Excel Spreadsheet. Use the field inquiry to look up the their phone number.

244 Looking Up Policies Find phone number, paid to date, plan type, payment Transfer the Saturday SAMs message to an Excel Spreadsheet. Use the field inquiry to look up the their phone number.

245 Plan Code Cheat Sheet Plan Code Cheat Sheet show the most popular products and their plan codes: Circle these 1W = Whole Life 1U = Career Life Plus AL = ALX Modified Life E = Group Term 3 = Term HA = Accident Protector Max 5K= Cancer Care 5M = Critical Illness LS = Cash Cancer

246 Policy Exceptions Employer must make one payment for Group Term to be eligible to be moved to bank draft (Importance of getting first bill paid on time) Cannot move Cash Cancer lapsed 90+ days Dental and Vision cannot be moved to bank draft under any circumstances There is one exception. Group Term cannot be moved to bank draft unless the employer has made the first premium.

247 Submitting the Conservation Form
Who would you rather be, the agent that writes $100,000 and gets paid renewals on 75% of it? Or the Agent that writes $125,000 and gets paid renewals on 50% of it? TMK Agent training only. Not for sales use. 247

248 Conservation Form Each conserved policy must include a Conservation Form Conservation form found on LibertyNational.com Quality Business Section There is one exception. Group Term cannot be moved to bank draft unless the employer has made the first premium.

249 Conservation Form Word Document: Can be typed on
to Must come from AO or QM address Requests without Conservation Form will be returned There is one exception. Group Term cannot be moved to bank draft unless the employer has made the first premium.

250 Home Office Process When a customer calls Home Office Customer Service, they are transferred to the Worksite Dept. If the cancellation request occurs during open enrollment, the Agency is notified via to conserve The Saturday SAMs message includes all the employees marked off the bill each week.

251 Home Office Process If the cancellation request occurs outside of open enrollment , the insured is sent this letter The Saturday SAMs message includes all the employees marked off the bill each week.

252 VII. Tracking Lost Business?
TMK Agent training only. Not for sales use. 252

253 Tracking Lost Business
Use Qlikview Minimum Standards Dashboard Updates Tuesdays Two goals: 1. Fix it. 2. Learn from it

254 Tracking Lost Business
QM should be communicating with Agency Directors to get answers as to why business was lost and who is getting it fixed by when. This will not get done through . It requires face to face or phone calls to get answers This report should be ready by the Friday meeting with the Agency Owner

255 Tracking Lost Business – Before

256 Tracking Lost Business – After

257 Agent training only. Not for sales use.
VII. Conservation Log TMK Agent training only. Not for sales use. 257

258 Agent training only. Not for sales use.
VIII. SAMs/Reports TMK Agent training only. Not for sales use. 258

259 SAMs SAMs are the daily communication for what happened regarding pending or issued business yesterday in the Agency prior to 3:30 p.m. Central Reports are the snapshot of EVERYTHING that is pending in the Agency SAMs are the daily communication for what happened regarding pending or issued business yesterday in the Agency prior to 3:30 p.m. Central Reports are the snapshot of EVERYTHING that is pending in the Agency

260 A-250 vs. Batch Applications
The A-250 application is the individual life insurance application (the one with 32 questions). When submitted to the Home Office, they go to an underwriter for review prior to issue. All other applications are considered Batch applications. When submitted to the Home Office, they go through a computer and issue the following day. There are two different types of applications: A-250 and Batch.

261 Monthly Premium Notices
About to Lapse, call them, go see them if no phone number.

262 Monthly Premium Notice Script

263 BB Stop Pays Requested by Insured or Agency. Call customer to find out why they stopped pay.

264 Applications Processed
All applications that were received in the home office by 3:30 p.m. Central the previous day

265 Loans, Surrenders, EI, and RPU

266 Loans, Surrenders, EI, and RPU
Loans: The customer took out a loan on the policy or it went on Automatic Premium Loan. No action. Extended Insurance (EI): Customer stops paying premiums. Premiums are then paid by the cash value of the policy until the cash value is $0. Only currently offered on Whole Life and Career Life Plus policies, but some discontinued products also offer this feature. Renewals continue until no cash value.

267 Loans, Surrenders, EI, and RPU
Surrenders (CSV): Cashed out the policy and cancelled the coverage. Reduced Paid Up (RPU): Customers stops paying premiums. The policy has reached a point where the premiums paid will purchase an amount of coverage less than the original face amount. Only on Whole Life and Career Life Plus policies. Renewals end.

268 QAC / RIP Notifications
Appears when first posted, then once more when it goes to letter status (10 days past due). Track on OI125 LNL New Business Status Report. Call the customer and get them to complete QAC Call

269 QAC / RIP Notifications
Appears when first posted, then once more when it goes to letter status (7 days past due). Track on OI125 LNL New Business Status Report. Call the customer and get them to complete QAC Call

270 QAC / RIP Notifications
Letter status notification. Call the customer and get them to complete QAC Call.

271 NSF Return for Initial Premium
No action Automatically redraft next business day if policy effective date current month. Re-draft on draft date of effective month if future effective date. Do not contact customer or go get check

272 Non-NSF s Only for Non-NSF failed drafts (closed account, frozen account, account not found) Day 1: Agency Day 11: Call customer Day 5: Call Agency Day 14: Report Adverse Day 8: Agency

273 Status Shows all pending requirements added on an application.

274 Oral Swab Confusion 2. Bar code was received with the app and we’re waiting for results from lab. No action. 4. Bar code was NOT submitted with the app. Must be submitted before underwriting can be completed.

275 Oral Swab Status How do I check the status of an oral swab?
Best practice: Swab must be present for app to leave portal All swabs mailed from Agency Office Use FedEx not US Postal

276 Oral Swab Status How do I check the status of an oral swab?
Enter bar code in Slip ID/CCF box

277 Oral Swab Status When Swab Received? Status?

278 Medical Records: AI Records
Medical records may take a while to obtain For status https://prodwebapps.ailife.com/apsweb/login.aspx Username: airecords Password: agents1 Click: Case Search Paper apps must be uploaded by 10 a.m. on Monday to be processed with that week’s submit.

279 Medical Records: AI Records
Enter the policy number, starting with A in the policy number field Click search Click on ‘Select’ Paper apps must be uploaded by 10 a.m. on Monday to be processed with that week’s submit.

280 Medical Records: AI Records
Paper apps must be uploaded by 10 a.m. on Monday to be processed with that week’s submit.

281 Medical Records: AI Records
Paper apps must be uploaded by 10 a.m. on Monday to be processed with that week’s submit.

282 Medical Records When all else fails, get the customer to call the doctor Paper apps must be uploaded by 10 a.m. on Monday to be processed with that week’s submit.

283 COD 15 Days Past Due Additional reminder. Should be already assigned on the COD Tracker.

284 Policies Issued Shows policies issued the previous day prior to 3:30 p.m. Central Time

285 Bank Draft Returns Existing Business where the monthly bank draft was returned. Company automatically redrafts. No action on agency.

286 Cancelled/Declined Apps
Tells why an application was Cancelled or Declined. If A-250 application, get requirements completed and re-open application.

287 Cancelled/Declined Apps
Tells why an application was Cancelled or Declined. If A-250 application, get requirements completed and re-open application.

288 SAMs vs. Reports SAMs are the daily communication for what happened yesterday in the Agency prior to 3:30 p.m. Central Reports are the snapshot of EVERYTHING that is pending in the Agency

289 Key Reports 0I125 LNL New Business Status Report Updated Tuesdays
Status on all pending A-250 application requirements

290 Key Reports BI925 Batch Pending Updated Daily
Status on all pending individual batch requirements

291 Key Reports BI925 Batch Pending Worksite Updated Tuesdays
Status on all pending batch worksite application requirements

292 Key Reports OI525 CODs by Days Pending Updated Fridays
Status on all pending CODs that have not been issued or cancelled

293 Agent training only. Not for sales use.
IX. Reinstatements TMK Agent training only. Not for sales use. 293

294 Agent training only. Not for sales use.
Reinstatements Rules TMK Agent training only. Not for sales use. 294

295 Reinstatement Rules Reinstatement Application required:
Life policy face amount less than $50,000, days past due Life policy face amount $50,001 or more, 60 days past due Health policy lapsed 91 or more days. Cannot be reinstated if lapsed more than six months Cash Cancer polices cannot be reinstated Based on what we heard previously about the impact of one bad app, when is a good time to train on quality? Orientation (overview of how it impacts pay and wealth-building through residual income as outlined in the recruiting process) Time of first sale. Show them how much they earn if it is issued and stays on the books. First DCN Detail Report. This is an autopsy. What can we learn from the past to help us in the future? Ongoing classroom training on field underwriting. Attended by new agents and any agent with below company DCN or persistency.

296 Agent training only. Not for sales use.
Standard Reinstatements TMK Agent training only. Not for sales use. 296

297 Standard Reinstatements
Reinstatements where the policy was reinstated by the original writing agent or otherwise did not qualify for the Reinstatement Bonus These Reinstatements should be mailed to: Liberty National Premium Accounting P.O. Box Oklahoma City, OK 73126

298 Agent training only. Not for sales use.
Bonus-Paying Reinstatements TMK Agent training only. Not for sales use. 298

299 Bonus-Paying Reinstatements
Reinstatements that meets the criteria for a reinstatement bonus These Reinstatements should be mailed to: Liberty National Attn: Amber Dunlap 100 Concourse Parkway Suite 350 Hoover, AL 35244

300 How is the bonus paid? Life: Bonus equal to 25% of the annual premium
Accident and Health: Bonus equal to 15% of the annual premium No Bonus paid on Med Supp, Dental, Vision, ADP

301 How is the bonus paid? Reinstatements processed in the home office by the first Friday of the month will be paid by the 15th (Example: Dec. 6) Agency Owner will receive a physical check mailed to the Agency for purpose of recognizing the agent Agent must be active at the time of bonus payment

302 How are commissions & renewals paid?
Policies reinstated in the first policy year: Reinstating agent receives any remaining first-year commission, paid to commission account (same for managers) Reinstating agent receives renewals as earned beginning the 13th premium payment Policies reinstated in second or subsequent year: Reinstating agent receives renewals as earned starting with next premium payment No negative impact to DCN if reinstated policy lapses again

303 Premium Notice/Combined Billing (FA215)
Published on Saturdays (ready for Monday call clinic) Most policies lapse on 18-20th of the month Agents use first minutes of each call clinic to call delinquent customers on their agency

304 When does a reinstatement qualify for bonus?
Policy must have lapsed (49 days past due) Reinstating agent must be different than the original writing agent Must collect all back premiums and current month Must be reinstated on bank draft Check for back premiums must be from same bank account as ongoing bank draft Bonus only paid once on a policy

305 Example of all back premiums + current
Today is Sept. 26 Reinstating lapsed policy with a premium of $30 per month with a July 1st (7/1) Date Paid to (DPT) Agent must collect $90: $30 for July $30 for August $30 for September Draft October’s premium from checking account End of the month reinstatements, go ahead and get next month’s premium.

306 How is Reinstatement Bonus paid?
Agency mails weekly: Reinstatement Bonus Transmittal Reinstatement Request Forms with checks for back premiums for each reinstatement Authorization for Preauthorized Payments Life reinstatement applications (when applicable) Policies in force when reinstatement has been approved and money is applied Quality Control Manager should be handling this!

307 Reinstatement Bonus Transmittal

308 Who are we calling? Lapse list ed as spreadsheet by Home Office 22nd of each month from List is pure lapses. No cash value, Extended Insurance, Reduced Paid Up, Death Claims

309 The List Quality Control Manager should be in charge of distributing and tracking lapsed policies All Reinstatements are turned in to the Quality Control Manager so she can submit to Home Office and provide Agency Owner info on who is doing the best job working them (play the hot hand) Don’t distribute all the leads at once Lapses don’t go bad, people’s situations change. That’s why we are distributing multiple months

310 Sorting the List The list is sorted by ZIP Code to group leads
Then it is sorted by Payor Name so all policies are grouped Then it is sorted by Insured Name

311 The List Plan Codes Cheat Sheet should be printed out for call session. Codes not listed can be found in the Policy Prefix Book Last Paid: If there is a letter in this column, the last premium was paid via Payroll Deduction Issue Date: Date policy originally purchased. Good for reminding customer how long they have been paying for policy

312 The List DPT: Date Paid To. This is the last month the customer paid a premium. Used to calculate how many premiums the Agent will need to collect Payor Name and Insured Name can be different. Examples include husband paying for wife, grandparent paying for grandchild, etc. Ask for the Payor when you call. Some will have no phone number or bad phone numbers. We have an address, go see them PO Boxes use zabasearch.com

313 Getting Policy Info Because the lapsed policy is not typically in the Agent’s agency, the Agent will need the Quality Manager to pull the customer’s info from the Field Inquiry screen prior to going on the appointment

314 What do we say? This is a customer service call, not a sales call!

315 What do we say? No matter the response, set the appointment.

316 Mailing Reinstatement Letters
Use approved Reinstatement Letter Can edit your contact information

317 Mailing Reinstatement Letters
Set up Business Reply Mail account through post office for reply envelopes. Only pay for postage you use

318 Mailing Reinstatement Letters
Handwrite customer’s name and address on outside of outbound envelope. Call three days after mailing Reinstatement Letters only for customers outside of your area. Additional activity Perfect for you Quality Control Manager (can receive bonus if licensed) Bonus/commissions/renewals paid the same on policies reinstated through the mail

319 Reinstatement Request
Based on what we heard previously about the impact of one bad app, when is a good time to train on quality? Orientation (overview of how it impacts pay and wealth-building through residual income as outlined in the recruiting process) Time of first sale. Show them how much they earn if it is issued and stays on the books. First DCN Detail Report. This is an autopsy. What can we learn from the past to help us in the future? Ongoing classroom training on field underwriting. Attended by new agents and any agent with below company DCN or persistency.

320 Reinstatement Letter Based on what we heard previously about the impact of one bad app, when is a good time to train on quality? Orientation (overview of how it impacts pay and wealth-building through residual income as outlined in the recruiting process) Time of first sale. Show them how much they earn if it is issued and stays on the books. First DCN Detail Report. This is an autopsy. What can we learn from the past to help us in the future? Ongoing classroom training on field underwriting. Attended by new agents and any agent with below company DCN or persistency.

321 Plan Code Cheat Sheet Based on what we heard previously about the impact of one bad app, when is a good time to train on quality? Orientation (overview of how it impacts pay and wealth-building through residual income as outlined in the recruiting process) Time of first sale. Show them how much they earn if it is issued and stays on the books. First DCN Detail Report. This is an autopsy. What can we learn from the past to help us in the future? Ongoing classroom training on field underwriting. Attended by new agents and any agent with below company DCN or persistency.

322 Agent training only. Not for sales use.
X. Miscellaneous TMK Agent training only. Not for sales use. 322

323 Organizing Your Drawer
Folders for: What Comes Next Forms Pending Worksite Approvals 5 folders for CODs 12 folders for approved worksite cases

324 Top Adverse Issues Not sending an to before submitting personal business Repeated bad banking information and/or NSFs Same address or bank account as the Agent or another Agent Wrong height/weight or birthday QAC cannot reach applicant as phone number Writing ineligible employees that are not on roster

325 Personal Business In the E-app, the question reads “Are you a member of the Agent’s immediate family?” So who is immediate family? Agent, Spouse, Mother, Father, Brother, Sister, Children, and Grandchildren Agents may submit an app on immediate family members provided an is sent in advance to Commissions are paid into the commission account. No submit advance or bonus will be paid on personal business. Personal business rules do not apply to worksite sales.

326 Adverse Emails Respond within the timeframe requested
Use these to identify Agent training issues Ineligible employee, cash, savings account, QAC answers, bad account, same address/account

327 Adverse & Warning Emails
Respond within the timeframe requested Third warning, Agent subject to termination

328 Key Contacts Must be emailed from your QM@libnat.com address
Customer Service: Everything Worksite Department: Billing, New Bills, Rosters Agency Support: Technical Issues Use LogMeIn on Agent Services


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