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

Agent training only. Not for sales use.LNL Recap of Changes Impacting Quality Increasing Direct Pay on Section 125 Worksite cases must qualify (70%) Increasing max amount of Direct Pay per policy ($600) Increasing AP per sale with Laptop implementation Increasing AP per sale with needs based Worksite sale 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 bonus

Agent training only. Not for sales use.LNL 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

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

LNL Where can I find this information? Quality and Compensation Information found in the Guide to Growth on Agent Services:

Agent training only. Not for sales use.LNL Guide to Growth

Agent training only. Not for sales use.LNL Where can I find this information? Individual underwriting rules found in the Agent Instruction Guide on Agent’s Services:

Agent training only. Not for sales use.LNL Agents Instruction Guide

Agent training only. Not for sales use.LNL Where can I find this information? Worksite guidelines are found in the Worksite Agent Guide on Agent Services:

Agent training only. Not for sales use.LNL Worksite Agent Guide

Agent training only. Not for sales use.LNL Where can I find this information? Reports at a Glance and Steps to Control DCN/Persistency are found on Agent Services:

Agent training only. Not for sales use.LNL What is DCN? D eclines (1%): Primarily worksite. Poor training, systems, and oversight. C ancellations (3%): Primarily individual. Poor training, systems and oversight. N ot-Takens (5%): Primarily worksite. Poor training, systems and oversight. Company DCN 9% as of Jan. 2013

Agent training only. Not for sales use.LNL Top Reasons For Declines D eclines (1%) Only 1 policy per family or individual Ineligible dependent Dependent not eligible without employee coverage Medical history Not employed long enough Amount exceeds limits

Agent training only. Not for sales use.LNL Top Reasons for Cancels C ancellations (3%) Non Sufficient Funds/Bad Bank Information Outdated COD Requested by customer (QAC) QAC not completed Oral swab not complete Additional underwriting call, exam not complete Medical records not complete

Agent training only. Not for sales use.LNL Top Reasons for Not Takens N ot-Taken (6%) Payment not received for entire worksite case Payment not received from worksite customer, changes mind

Agent training only. Not for sales use.LNL New DCN and Persistency Reports are published on the 25 th of each month. Agent training only. Not for sales use.LNL

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

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

Agent training only. Not for sales use.LNL Example: Calculating Individual DCN AUG 25 SEPT 24 OCT 24 NOV 24 DEC 24 DEC 25 DCN Calculated Reports Published $4,000 $100$350 $200 Submitted Business Declined, Cancelled, Not Taken Premium

Agent training only. Not for sales use.LNL Example: Calculating Payroll Deduction DCN JUNE 25 JULY 24 AUG 24 SEPT 24 OCT 24 NOV 24 DEC 24 DEC 25 DCN Calculated Reports Published $4,000 $0 $400$0 $600 Submitted Business Declined, Cancelled, Not Taken Premium

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

Agent training only. Not for sales use.LNL Example: Calculating Persistency APRIL 25 MAY 24 JUNE 24 JULY 24 AUG 24 SEPT 24 OCT 24 NOV 24 DEC 24 DEC 25 Persistency Calculated 1 23 Reports Published Paid 4 months or greater $5,000 $12,000 Issued Business

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

Agent training only. Not for sales use.LNL Example: Calculating 13-month persistency AUG 11 SEPT 11 OCT 11 NOV 11 DEC 11 JAN 12 FEB 12 MAR 12 APR 12 MAY 12 JUNE 12 JULY 12 AUG 12 SEPT 12 OCT 12 NOV 12 DEC 12 Paid 13 months $9,000 $4000 Issued Business

Agent training only. Not for sales use.LNL Example of 75% 13-Month Persistency $9,000 Paid 13 Months $12,000 Issued Premium $12,000 Issued Premium

Agent training only. Not for sales use.LNL 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%

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

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

Agent training only. Not for sales use.LNL Manager 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)

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

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

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

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

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

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

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

Agent training only. Not for sales use.LNL Take Home Pay 8 DCN Agent takes home $8,400 more Agent training only. Not for sales use.LNL

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

Agent training only. Not for sales use.LNL So when is a good time to train on quality? Orientation Ongoing classroom training – New Agents & Agents/Managers DCN above co. avg Use this powerpoint First sale First DCN report

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

Agent training only. Not for sales use.LNL Top Reasons for Cancels C ancellations (3%) Non Sufficient Funds/Bad Bank Information Outdated COD Requested by customer (QAC) QAC not completed Oral swab not complete Additional underwriting call, exam not complete Medical records not complete

Agent training only. Not for sales use.LNL Agent’s Instruction Guide Review the key points in the Agent’s Instruction Guide: Save it to the desktop of the Agent’s computer when the Laptop Sales Presentation is installed.

Agent training only. Not for sales use.LNL 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

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

Agent training only. Not for sales use.LNL Oral Swab Kits No excuse for not getting an Oral Swab: Review Oral Swab Training Video on Agent Services Mail kits immediately. Heat can destroy sample.

Agent training only. Not for sales use.LNL Underwriting Requirements Chart

Agent training only. Not for sales use.LNL 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).

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

Agent training only. Not for sales use.LNL 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 Height/Weight Habits

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

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

LNL 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.

LNL 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? (Look up using smartphone) Are you receiving disability income? How’s your driving record? TMK Agent training only. Not for sales use.

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

LNL 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 bonus until issue Does not count against DCN if declined or not taken by customer

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

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

LNL OMG, They Said Yes! TMK Agent training only. Not for sales use.

LNL 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

Agent training only. Not for sales use.LNL 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) or Chase Liquid

Agent training only. Not for sales use.LNL View their Drivers License This makes sure they have one Not an ID card Don’t use the Height or Weight on the Drivers License

Agent training only. Not for sales use.LNL Social Security Number Must have one to purchase a policy If they provide a number that begins with a 9, it is not a Social Security number. It is an Individual Taxpayer Identification Number (ITIN) which cannot be used. An ITIN, or Individual Taxpayer Identification Number, is a tax processing number only available for certain nonresident and resident aliens, their spouses, and dependents who cannot get a Social Security Number (SSN). It is a 9-digit number, beginning with the number "9", formatted like an SSN (NNN-NN- NNNN).

Agent training only. Not for sales use.LNL Citizenship

Agent training only. Not for sales use.LNL Draft Dates: Choose one between 1 st – 10th Initial Bank Draft happens first business day after upload to home office. But the second draft …

Agent training only. Not for sales use.LNL Solidifying the Sale: Last 3 Minutes in the Home TMK Agent training only. Not for sales use.

LNL Use the Closing Script

Agent training only. Not for sales use.LNL Use the Closing Script Sets expectations One or more Quality Assurance Calls (QAC) Medical Exam Medical Records Be back to deliver policy

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

LNL Provide Good Customer Service Return Phone Calls Answer questions Do what you said you were going to do

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

LNL Top Reasons For Declines D eclines (1%) Only 1 policy per family or individual Ineligible dependent Dependent not eligible without employee coverage Medical history Not employed long enough Amount exceeds limits

Agent training only. Not for sales use.LNL Top Reasons for Not Takens N ot-Taken (6%) Payment not received for entire worksite case Payment not received from worksite customer, changes mind

Agent training only. Not for sales use.LNL Better Prospecting TMK Agent training only. Not for sales use.

LNL Eligible Industries

Agent training only. Not for sales use.LNL Approval Required Industries

Agent training only. Not for sales use.LNL Better Enrollments TMK Agent training only. Not for sales use.

LNL Every Agent Must Have… Roster Worksite Management Information Report (AL915) for re-enrollments

Agent training only. Not for sales use.LNL Eligible Employees

Agent training only. Not for sales use.LNL Needs Planner

Agent training only. Not for sales use.LNL 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)

Agent training only. Not for sales use.LNL Collecting phone numbers on the eapp… Why would we only collect an office number?

Agent training only. Not for sales use.LNL Relationship With The Bookkeeper

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

Agent training only. Not for sales use.LNL Red Alert PD01001: Franchise Initial Premium Unpaid (Daily)

Agent training only. Not for sales use.LNL What happens every week? Last week of January Were deductions for January enrollments turned in to bookkeeper? First week of February Did deductions start for January enrollments? Second week of February Did December enrollments receive first bill? Third week of February Are all cases paid for February? (Use Worksite Management Information AL915 or Worksite List by Franchise AL04)

Agent training only. Not for sales use.LNL Red Alert AL040001: Worksite List By Franchise (Saturdays)

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

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

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

LNL Adverse Business Department TMK Agent training only. Not for sales use.

LNL Top Adverse Issues Sets expectations Not sending an to before submitting personal business Repeated bad banking information and/or Non Sufficient Funds Same address or bank account as the Agent or another Agent Wrong height/weight or birthday Writing ineligible employees that are not on roster

Agent training only. Not for sales use.LNL 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, and Children 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.