TMK Agent training only. Not for sales use. Writing Quality Business TMK Agent training only. Not for sales use.

TMK Agent 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

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

TMK Agent 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

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

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

TMK Agent 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

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

TMK Agent 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%

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

TMK Agent 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

TMK Agent 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

TMK Agent 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

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

TMK Agent training only. Not for sales use. Oh by the way … Career Track

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

TMK 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 $1,400 per week average? TMK Agent training only. Not for sales use.

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

TMK Agent training only. Not for sales use. Agent Direct Pay TMK Agent 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

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

TMK Agent training only. Not for sales use. Take Home Pay TMK Agent 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

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

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

TMK Agent training only. Not for sales use. Individual Business A-250 Application TMK Agent training only. Not for sales use.

TMK Agent training only. Not for sales use. Quality Before the Sale: Classroom Training TMK Agent training only. Not for sales use.

TMK Agent 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

TMK Agent 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

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

TMK Agent 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.

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

TMK Agent 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

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

TMK Agent training only. Not for sales use. Open your eyes and ears open TMK Agent training only. Not for sales use.

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

TMK Agent 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? TMK Agent training only. Not for sales use.

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

TMK Agent 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

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

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

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

TMK Agent training only. Not for sales use. Quality After the Submit TMK Agent training only. Not for sales use.

TMK Agent training only. Not for sales use. Worksite TMK Agent training only. Not for sales use.

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

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

TMK Agent 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

TMK Agent training only. Not for sales use. DCN Detail Report Example TMK Agent training only. Not for sales use.