1. TMK1536 092910Agent training only. Not for sales use. Writing Quality Business TMK1536 092910Agent training only. Not for sales use.

2. TMK1536 092910Agent training only. Not for sales use. What’s in it for you? Make more money by writing quality business Make more money by helping your agents write quality business Make more money by retaining agents

3. TMK1536 092910Agent training only. Not for sales use. It’s not how much you write, it’s how much you keep. TMK1536 092910Agent training only. Not for sales use.

4. TMK1536 092910Agent training only. Not for sales use. Definitions D ecline: Poor field underwriting (1%) C ancellation: Customer cancels or underwriting requirements not met (3%) N ot-Taken: Customer returns policy during free-look period or payment not received (6%) Company DCN 10% as of Sept. 2012

5. TMK1536 092910Agent training only. Not for sales use. How is DCN calculated? Declined Premium Cancelled Premium Not Taken Premium Submitted Premium

6. TMK1536 092910Agent training only. Not for sales use. Example of 8 DCN $0 Declines $300 Cancels $500 Not Takens $10,000 Submitted Premium

7. TMK1536 092910Agent training only. Not for sales use. Definitions Persistency: Premium issued and paid four months or longer, divided by total issued business based on policy effective date

8. TMK1536 092910Agent training only. Not for sales use. Example of 88 Persistency $8,800 Paid 4 Months $10,000 Issued Premium $10,000 Issued Premium

9. TMK1536 092910Agent training only. Not for sales use. How does Quality impact pay & retention? Chargebacks Months Premium Paid Chargeback % 0-2 months100% 3 months90% 4 months80% 5 months70% 6 months60% Months Premium Paid Chargeback % 7 months50% 8 months40% 9 months30% 10 months20% 11 months10%

10. TMK1536 092910Agent training only. Not for sales use. How does Quality impact pay & retention? Chargebacks Direct pay submit advance commissions

11. TMK1536 092910Agent training only. Not for sales use. How does Quality impact pay & retention? Chargebacks Direct pay submit advance commissions DCN+Lapses subtracted from gross submit prod. pay

12. TMK1536 092910Agent training only. Not for sales use. How does Quality impact pay & retention? Chargebacks Direct pay submit advance commissions DCN+Lapses subtracted from gross submit prod. pay DCN: Bonus multiplier first 7 months

13. TMK1536 092910Agent training only. Not for sales use. How does Quality impact pay & retention? Chargebacks Direct pay submit advance commissions DCN+Lapses subtracted from gross submit prod. pay DCN: Bonus multiplier first 7 months Persistency: Bonus multiplier month 8 and beyond

14. TMK1536 092910Agent training only. Not for sales use. How does Quality impact pay & retention? Last but certainly not least… Renewals

15. TMK1536 092910Agent training only. Not for sales use. Oh by the way … Career Track

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

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

18. TMK1536 092910Agent training only. Not for sales use. Take Home Pay Individual 8 DCN Agent takes home $8,400 more Worksite 8 DCN Agent takes home $5,600 more TMK1536 092910Agent training only. Not for sales use.

19. TMK1536 092910Agent training only. Not for sales use. Agent Direct Pay TMK1536 092910Agent training only. Not for sales use. Individual8 DCN18 DCN Production$39,200 Direct Pay %70%40% Direct Pay$27,440$19,040 Worksite8 DCN18 DCN Production$39,200 Direct Pay %50%30% Direct Pay$19,600$14,000 $8,400 More Direct Pay $5,600 More Direct Pay

20. TMK1536 092910Agent training only. Not for sales use. Production Pay Net Submit & DCN Multiplier TMK1536 092910Agent training only. Not for sales use. DCN %Gross Submit DCNNet Submit Prod. Pay % Prod. Pay DCN Mult. Prod. Pay 8$1,400$112$1,28815%$1931.06%$204 18$1,400$252$1,14815%$1720.66%$113

21. TMK1536 092910Agent training only. Not for sales use. Take Home Pay TMK1536 092910Agent training only. Not for sales use. DCNDirect Pay Prod PayTotal Individual 8$27,440$5,712$33,152 Individual 18$19,040$3,164$22,204 Take Home Pay$10,948 Worksite 8$19,600$5,712$25,312 Worksite 18$14,000$3,164$17,164 Take Home Pay$8,148

22. TMK1536 092910Agent training only. Not for sales use. Take Home Pay Individual 8 DCN Agent takes home 49% more Worksite 8 DCN Agent takes home 47% more TMK1536 092910Agent training only. Not for sales use.

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

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

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

26. TMK1536 092910Agent training only. Not for sales use. Agent’s Instruction Guide Review the key points in the Agent’s Instruction Guide: Then save it to the desktop of the Agent’s computer

27. TMK1536 092910Agent training only. Not for sales use. Automatic Decline Conditions Applicants with the following conditions will be automatically declined: Terminal Illness Lou Gehrig’s Disease or Amyotrophic Lateral Sclerosis (ALS) HIV / AIDS or Positive Test to Antibodies for AIDS virus Alzheimer’s Disease or Senile Dementia Confined to a hospital or nursing facility Use of illegal drugs within a two-year period Confined to jail

28. TMK1536 092910Agent training only. Not for sales use. Underwriting Requirements Chart When is the Agent required to get an Oral Swab?

29. TMK1536 092910Agent training only. Not for sales use. Build Charts If the proposed insured does not fall within the standard weight limits shown on the chart, the proposed insured will be rated.

30. TMK1536 092910Agent training only. Not for sales use. Medical History Guide Lists conditions and “general” guidelines

31. TMK1536 092910Agent training only. Not for sales use. ALX Only Do not submit an application for standard issue for the following conditions. An ALX will be considered if the underwriters determine the proposed insured is eligible for coverage. Heart / Circulatory / Blood Disorders Diabetes and Related Disorders Cancers Misc. Medical Disorders Disability

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

33. TMK1536 092910Agent training only. Not for sales use. Open your eyes and ears open TMK1536 0410Agent training only. Not for sales use.

34. TMK1536 092910Agent training only. Not for sales use. What questions can you ask an applicant in normal conversation to determine if you should present ALX? TMK1536 0410Agent training only. Not for sales use.

35. TMK1536 092910Agent training only. Not for sales use. Have you ever had cancer? Have you ever had diabetes? Have you ever had heart problems or high blood pressure? What medications are you taking? Are you receiving disability income? How’s your driving record? TMK1536 0410Agent training only. Not for sales use.

36. TMK1536 092910Agent training only. Not for sales use. “Great news! We have a policy specifically designed for people with your health conditions.” TMK1536 0410Agent training only. Not for sales use.

37. TMK1536 092910Agent training only. Not for sales use. Trial Applications On cases with that appear to be medically questionable, the best thing to do is submit the application on a trial basis. Apps over $1 million Collect no payment or app fee Does not count for submit for commissions or production pay Does not count against DCN if declined or not taken by customer

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

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

40. TMK1536 092910Agent training only. Not for sales use. Closing Script Sets expectations QAC Call Medical Records

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

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

43. TMK1536 092910Agent training only. Not for sales use. Relationship With The Bookkeeper Checklist Found In ‘Training Playbook’

44. TMK1536 092910Agent training only. Not for sales use. Worksite Case Checklist Follow-up, who is responsible, date completed

45. TMK1536 092910Agent training only. Not for sales use. Impact of Not-Takens This is what it looks like on a production report when a worksite case is not taken

46. TMK1536 092910Agent training only. Not for sales use. DCN Detail Report Example TMK1536 092910Agent training only. Not for sales use.