Assurant Self-Funded Program Joe Simpson-Sales Representative A health care financing solution We’re glad you are here with us today. You can look forward to understanding the Assurant Self-Funded Program and how it is a health care financing solution for small-business employers. We’ll hit on the need for this type of program, the plan features, how it works and more. Joe Simpson-Sales Representative Time Insurance Company The Assurant Self-Funded Program provides tools for small-business employers to establish a self-funded health benefit plan for their employees. The benefit plan is established by the employer and is not an insurance product. Stop-loss insurance for the self-funded plan is underwritten and issued by Time Insurance Company. For agent use only.

Today’s Goal Why Assurant Self Funded? Assurant’s partnership with Health Plan Services State of the Organization-Assurant to National General Underwriting Give you a differentiator in the market Help you prospect for leads Continual Innovation in the group space

Assurant Health and Health Plan Services Health Plan Services has their own quoting ability Preferred Underwriting Licensed Sales Consultants Access to their product line plus our small group level funded product Access to an Assurant Rep

Backed by experience and strength Assurant Health-Sold to National General in Principal Fortune 500 Company with an A.M Best rating of A- (Excellent) Bought the rights to use Time Insurance Paper More than 120 years of experience In the small group self-funded market since 2002 4

Level Funded Overview Feels like a fully insured plan – Employee Deductible Coinsurance OOP Max Doctor Office and Rx Copays HSA/ HRA Compliant with HHS Requirements regarding preventive benefits, life time maximums and pre-existing conditions. Feels like a fully insured plan -- Employer Pay one monthly premium Design your plan 5

Level Funded Overview What makes the plan self funded? Still an underwritten product Premium Breakdown Stop-loss Insurance Specific Deductible Aggregate Deductible Administration, sales, general expenses Claim prefunding Potential Refund! 6

Common Misconceptions of Level Funded Plan You cannot write this product on groups under 100-FALSE-our product is filed for groups 2-99 There is a risk for the employer with level funded-FALSE-Assurant has removed all the risk associated with self insured plans so the product looks and feels like a fully insured plan Due to ACA, you cannot underwrite a group under 100. This is only true for the fully insured market. ACA allows underwriting on level funded plans. 7

Stop Loss Insurance Limits The Quote Stop Loss Insurance Limits Annual Specific Deductible $25,000.00 Annual Aggregate Limit $37,106.64 Monthly Bill Employee 5 $210.32 Employee + Spouse 4 $567.87 Employee + Child 1 $420.64 Family 7 $715.09 Stop Loss Premium $3,875.89 Admin. Sales and General Expenses $1,781.24 Claim Pre- Funding $3,092.22 Total $8,749.35

Stop-loss insurance protects employers Specific stop-loss limit (Individual) Aggregate stop-loss limit (Group) Protects against higher-than-expected claims incurred by the group as a whole Protects against higher-than-expected claims by individual member 9

Refund of unused claims fund dollars Employers will receive a refund if the plan year ends with claims below the expected amounts — or the aggregate limit — and there is money left in the employer’s claims fund. More than 50% of our self-funding employers receive a refund at the end of their plan year* Self-funding offers a unique opportunity for an employer to receive a refund of unused claim fund dollars.   More than 50% of Assurant Self-Funded Program employers receive a refund at the end of their plan year and run out period. This can be an additional incentive for employers to consider The Assurant Self-Funded Program. Even if an employer was considering a comparable fully insured plan, with respect to benefits and price, the Assurant Self-Funded Program offers an opportunity for a refund, and most fully insured plans do not. And, employers get all remaining funds in their claim fund with no processing fees, which can all be applied to next year’s costs. Plus, whether they stay with us or not, we’ll still send employers their refund checks – the money is theirs There is a 6- or 12-month runout period that begins at the end of each plan year to allow for claims from that plan year to be processed. The refund is paid at the end of the runout period * Assurant Self-Funded Program customer experience, 2013 10 10

More special features 1099 employees are eligible Full-time can be 20-40 hours per week Can cover employees at multiple locations Four-tier rates Number of children impacts rates The Assurant Self-Funded Program’s special features also include offering coverage to 1099 employees and allowing employers the freedom to determine the number of hours a week employees need to meet in order to be eligible. An employee can be considered full time if working between 20 to 40 hours per week. Self funding still allows for four-tier rating (employee only, employee and spouse, employee and children, and employee and family). And, it’s the number of children, not the age of the children that impacts rates. Depending on the situation, these features may allow for monthly savings. 11

Employer-funded health plan templates PPO and HSA-qualified Plan designs $500 to $6,600 Family deductibles are 2x the individual deductible Deductibles 100%, 90%, 80%, 70% and 50% Coinsurance options Copay: $20 PCP/$35 Spec, $35/$50 and $40/$60 No copay — subject to deductible and coinsurance Office visit copays The Assurant Self-Funded Program offers plan templates that allow the employers to build plans that meet the needs of their business and their employees.   Many options are available for tailoring a self-funded plan. For example, you can see we have deductible options that vary from $500 to $6,600. Employers can also choose the coinsurance amount and whether to include office visit copays.   Office visit and prescription copays, deductibles and coinsurance apply to the total out-of-pocket maximums. 12 12

Agent Compensation Group Size 2-24 Employees – 6.5 % Total Monthly Premium Group Size 25-50 Employees – 6.0 % Total Monthly Premium Group Size 51-99 Employees – 5.0 % Total Monthly Premium With many flexible benefit options, employers can even consider plan benefit templates that include options for HSAs (Health Savings Accounts) or HRAs (Health Reimbursement Accounts).   Assurant Health is not engaged in rendering legal or tax advice. Please see a qualified tax professional for help. 13

Tax-advantaged opportunities Health Saving Accounts (HSAs): Contributions are tax deductible or can be made with pretax dollars Both the employer and employee can contribute Health Reimbursement Accounts (HRAs): Deductible and/or Coinsurance reimbursments Reimbursements can go to EE or directly to Provider With many flexible benefit options, employers can even consider plan benefit templates that include options for HSAs (Health Savings Accounts) or HRAs (Health Reimbursement Accounts).   Assurant Health is not engaged in rendering legal or tax advice. Please see a qualified tax professional for help. 14

Plan administration you can trust 30 years experience of benefit management and administrative services Manages over $2 billion of health care expenses Allied Benefit Systems, Inc. (Allied) A national health solutions company Plan administration is provided by Allied Benefit Systems, Inc. It is often referred to as Allied. Allied is a Chicago-based company that has been in business for over 30 years. Assurant Health will be your contact for sales support, but Allied will be your contact for plan administration. Allied’s dedicated customer care center is available at 888-292-0272 during the hours listed on this slide.   Allied Member Service Team 888.292.0272 Monday—Thursday: 7:30 a.m. to 7:00 p.m. Friday: 8:00 a.m. to 5:00 p.m. Saturday: 9:00 a.m. to 12:00 p.m. Central time Employer/Employee website assurantselffunded.com 15

Support that leaves employers time to focus on their businesses Allied leaves the employers more time to focus on their businesses Comprehensive, Web-based plan management Monthly reports for easy access Take care of all plan administration Allied’s plan administration will leave employers more time to focus on their businesses. Allied offers extensive online services, monthly reporting and help with plan administration issues. Plan administration includes services, such as customer service, paying claims, reporting, COBRA administration, and agent compensation – just to name a few examples. 16

Comprehensive Web-based plan management For employers: Answers about benefits, plan costs and billing View plan and benefit information Check status of claims Quick claims processing and payments ID cards, Summary Plan Descriptions (SPDs), Summary of Benefits and Coverage (SBCs) Administration forms Employee addition or termination Change of address Employer Guide For employees: Compare doctors and hospitals Estimate costs of prescription drug and provider services View Explanations of Benefits (EOBs) and plan benefit information Check claims status Find doctors and hospitals Request new or replacement ID cards Employers have online access to view plan benefit information, and check claim status. Employers can also access ID cards, summary plan descriptions, or administration forms to help with adding, or terminating employees, address changes, and even access an employer guide. Employees might: Compare doctors and hospitals, estimate costs of provider services, view explanation of benefits and plan benefit information, check claims status, find in-network doctors and hospitals, or even request new or replacement ID cards. 17

Thank You! Joe Simpson (414)299-8375 Joseph.Simpson@Assurant.com This presentation provides summary information for the health benefit plan templates and Assurant Health stop-loss coverage. Please refer to the Summary Plan Description or stop-loss policy for a complete listing of the benefits, exclusions and terms of coverage. In the event that there are discrepancies with the information in this presentation, the terms and conditions of the Summary Plan Description, stop-loss policy and other plan documents will govern.   For agent use only. Not for distribution to consumers. The Assurant Self-Funded Program provides tools for small-business employers to establish a self-funded health benefit plan for their employees. The benefit plan is established by the employer and is not an insurance product. Stop-loss insurance for the self-funded plan is underwritten and issued by Time Insurance Company. J-71968 (Rev. 11/2014) © 2014 Assurant, Inc. All rights reserved. 18