1. TMK1536 092910Agent training only. Not for sales use. Building Wealth Through Quality Business TMK1536 092910Agent training only. Not for sales use.

2. TMK1536 092910Agent training only. Not for sales use. Recap of Changes Impacting Quality Increasing Direct Pay on Section 125 Worksite cases Increasing max amount of direct pay on bank draft policies But at the same time… Increasing impact of poor DCN & Persistency on direct pay including total loss of direct pay Increasing impact of poor DCN & Persistency on ability to earn production pay

3. TMK1536 092910Agent training only. Not for sales use. Where we are at & where we are going… As of Oct. 25, 2012 DCN: 10% 4-Month Persistency: 87% 13-Month Persistency: 63% Goal for each branch moving forward DCN: 6% or less 4-Month Persistency: 93% or more 13-Month Persistency: 75% or more

4. TMK1536 092910Agent training only. Not for sales use. What’s in it for you? TMK1536 092910Agent training only. Not for sales use.

5. TMK1536 092910Agent training only. Not for sales use. Employee BM, $10k/wk, 10% Growth Over the next 10 years BM with 75% 13-month persistency makes $70,623 more vs. BM with 63% 13-month persistency

6. TMK1536 092910Agent training only. Not for sales use. Employee BM, $25k/wk, 10% Growth Over the next 10 years BM with 75% 13-month persistency makes $176,558 more vs. BM with 63% 13-month persistency

7. TMK1536 092910Agent training only. Not for sales use. Employee BM, $50k/wk, 10% Growth Over the next 10 years BM with 75% 13-month persistency makes $353,117 more vs. BM with 63% 13-month persistency

8. TMK1536 092910Agent training only. Not for sales use. Ind. Contractor BM, $10k/wk, 10% Growth Over the next 10 years BM with 75% 13-month persistency makes $234,341 more vs. BM with 63% 13-month persistency

9. TMK1536 092910Agent training only. Not for sales use. Ind. Contractor BM, $25k/wk, 10% Growth Over the next 10 years BM with 75% 13-month persistency makes $585,852 more vs. BM with 63% 13-month persistency

10. TMK1536 092910Agent training only. Not for sales use. Ind. Contractor BM, $50k/wk, 10% Growth Over the next 10 years BM with 75% 13-month persistency makes $1,171,705 more vs. BM with 63% 13-month persistency

11. 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.

12. TMK1536 092910Agent training only. Not for sales use. And that’s just renewals. What else does quality business impact? TMK1536 092910Agent training only. Not for sales use.

13. TMK1536 092910Agent training only. Not for sales use. So how do you protect your wealth? TMK1536 092910Agent training only. Not for sales use.

14. TMK1536 092910Agent training only. Not for sales use. Quality Director Duties Review applications in the portal Change apps to trail/cancel apps Make bank verification calls Make internal QAC calls to applicant Train agents on recurring issues Follow up on Pending Business (CODs, QAC, Medical Records, Oral Swabs, etc.) Reinstate lapsed policies Move Payroll Deduction customers to bank draft ($8 MM) Call Worksite clients to verify deductions started, first bill received, first bill paid Call past due worksite cases

15. TMK1536 092910Agent training only. Not for sales use. Quality Director Profile – Who are we looking for? Agent with good work habits but not strong prospector Great organizational skills Strong product and underwriting knowledge Desires $40,000 income and 9-5 Mon-Fri schedule Strong phone skills, email and spreadsheet skills Willing to travel to customer home/worksite to collect paperwork, signatures or swabs

16. TMK1536 092910Agent training only. Not for sales use. How is the Quality Director Paid Salary Bonus for each point better than company average on DCN and 13-month persistency Reinstatement bonus First-year commissions & bonus on pending and lapsed business Renewals Build a team and supervise Agents

17. TMK1536 092910Agent training only. Not for sales use. Feedback on the Portal? TMK1536 092910Agent training only. Not for sales use.