1. Supplemental Insurance Protection
SB Hospital Confinement Dir Gen
Approval Date: 06/04/2014
Code :
Revised: 09/25/2015
Supplemental Insurance Protection
Hospital Confinement Direct
Policy Form CH IP (01/10), or its state variation
See Separate Presentation for State Specific Variations
©2015 SureBridge® Product Training Materials | Proprietary and Confidential.
For more plan details, refer to the product materials.
The benefits described in this presentation are subject to all provisions, terms, definitions, and limitations and exclusions of the applicable policy.
Supplemental plans serve a specific purpose in the insurance market. These plans are not intended as substitutes for accident and sickness health insurance and should not be construed as such.

2. Supplemental Products Availability
Chesapeake’s SureBridge product suite is one of the largest supplemental insurance portfolios in the industry and includes critical illness, cancer, accident, disability income, hospital and fixed indemnity, dental and vision policies1. Chesapeake also has one of the broadest marketing footprints in the industry through its producer distribution systems. AK WA ID MT ME OR ND MN NH WI NY VT MI WY SD CA MA RI NV CT UT PA NE IA IL OH IN NJ CO WV DE MO VA KS MD HI KY DC AZ NC NM OK TN TX AR SC GA MS AL
All products available
Subset of products available
No products available LA FL
1 Product Availability varies by state.

3. Supplemental Products Superior Client/Broker Experience
Quoting
Compare packages with different combinations of supplemental products
Present total price for solution
Commissions
Initial Premium and any application fee are taken upon policy issue
Most policies issued within 24 hours
Book of Business report available on your Broker Portal
Application
Single e-app for any combination of supplemental products
Flexibility to select different products and/or benefit options for each family member on app
Smart app – only the questions for the products selected are asked
Simplicity – all questions are yes/no
Product Brochure provided
Claims
Claim form provided with complete instructions for submission
Claim forms are typically analyzed and adjudicated within 7 days after receipt

4. Supplemental Products Sales Pitch
Changes in the market present opportunities to sell supplemental plans
During 2015, Essential Health Benefit (EHB) plans can have out-of-pocket limits as high as $6,600 for individuals and $13,200 for families (increased in 2016 to as high as $6,850 for individuals and $13,700 for families).
This can leave large gaps in coverage which may be filled with supplemental plans.
Advanced premium tax credits for EHB plans are available for individuals or families making up to 400% of the federal poverty level. Premium dollars saved due to premium tax credits may allow your customer to purchase supplemental insurance that can help fill gaps left by high deductibles and coinsurance on EHB plans.
Number of family members
Poverty Guideline for family income (as of 2015)
Can still qualify for a subsidy under the ACA with an income up to 1
$11,770
X 400%
$47,080 2
$15,930
$63,720 3
$20,090
$80,360 4
$24,250
$97,000 5
$28,410
$113,640
Premium dollars saved due to tax credits can be used to pay for supplemental plans and help reduce coverage gaps.
Need a subsidy calculator? Try

5. Hospital Confinement Direct Sales Pitch
The Hospital Confinement Direct plan is a piece of puzzle that can help fill in gaps caused by high out-of-pocket expenses or to supplement lost wages.
On the right, health insurance is supplemented by the following:
Hospital Confinement Direct for hospital coverage,
CancerWise®* for lump-sum cancer coverage,
Accident Companion* for lump sum accident coverage
Coverage
Gap
Health Coverage
Accident
Companion
Cancer
Wise
Hospital
Confinement
Direct
*See the appropriate training documents for more details on these other products.

6. Hospital Confinement Direct Product Comparison
Fixed Indemnity Direct
Hospital Confinement Benefit
Intensive Care/Cardiac Care Unit Confinement Benefit
Continuous Care Benefit
Outpatient Surgery Benefit
Emergency Room Benefit
Outpatient Diagnostic, X-Ray, and Laboratory Procedures Benefit
Ambulance Benefit
Physician Office Visit Benefit (on some plans)
The Hospital Confinement plan is designed to provide customers a daily cash benefit for hospital or ICU confinements.
For inpatient hospital care
For a sickness or injury
There is no annual deductible
A comparison of benefits to the Fixed Indemnity Direct is shown to the right.
Hospital Confinement Direct
Hospital Confinement Benefit
Intensive Care/Cardiac Care Unit Confinement Benefit

7. Hospital Confinement Direct Navigation
Hospital Confinement Direct is located under the Illness tab of the SureBridge Point of Sale Tool.

8. Hospital Confinement Direct Understanding Guaranteed Issue (GI) Products
Underwriting Changes
Guaranteed issue (GI) products are lower benefit levels which can be selected at the point of sale for some products, including:
Hospital Confinement Direct
Critical Illness Direct
Accident Disability Direct
Income Protection Direct
A customer can also check a box on the app to get a GI version of these products, should they not qualify for their original selection.
These plans do not have height, weight or any medical Underwriting questions.
Eligibility questions still apply, such as citizenship, income or blue or white collar.
Claim Adjudication
There is no impact to claims processing if a plan is guaranteed issue (GI).
If a plan was subject to pre-ex or waiting periods as a non-GI plan, it is still subject to pre-ex and waiting periods as GI plan.
All exclusions and limitations and other plan provisions from the non-GI plan also apply to the GI plan.
State Applicability
GI products are available in the following states: AL, AR, CO, GA, IA, ID, IL, IN, KS, LA, ME, MI, MO, MS, NC, NE, NH, NV, OH, OK, PA, SC, TN, TX, UT, WI, WY

9. Hospital Confinement Direct Benefit Schedule
Daily Benefits
GI Option
Option1
Option 2
Option 3
Lifetime Maximum
365 days (per insured)
Applies to all options
Waiting Period
Sickness – 30 days
Injury – 0 days
Daily Benefit Amount
$250
$500
$750
$1000
Hospital Confinement Benefit
Days 1 – 5: 100% of Daily Benefit Amount
Days 6-10: 50% of the Daily Benefit Amount
Days 11 +: Fixed amount per day
$125
$100
$375
Note
Confinement means an Insured Person’s admission to and subsequent continued stay in a Hospital for which a daily charge for room and board is made for each day of Confinement with no discharge or interruption in such Hospital Stay.

10. Hospital Confinement Direct Benefit Schedule
Daily Benefits
GI Option
Option1
Option 2
Option 3
Intensive Care/Cardiac Care Unit Confinement Benefit
Days 1-2: 200% of Daily Benefit Amount
Days 3-10: 100% of Daily Benefit Amount
Days 11-30: 50% of the Daily Benefit Amount
Days 31 +: Fixed amount per day
Note: Paid in lieu of Hospital Confinement Benefit
$500
$250
$125
$100
$1000
$1500
$750
$375
$2000
Waiver of Premium
Monthly premiums due for the policy will be waived after the primary insured has been hospital confined for at least 30 consecutive days.
Applies to all options
Pre-Existing Condition Limitation
Yes

11. Hospital Confinement Direct Claims Example
Jenny Heart, age 43, had a car accident. Jenny fractures her skull, suffers a concussion, and has multiple contusions. Due to the fracture in her skull, Jenny is confined in the hospital for 7 days. She spends the first and second day in an ICU room to monitor for swelling of the brain and spends the third through seventh days in a regular hospital room. Luckily, in addition to her bronze level EHB health insurance, Jenny has a Level 3 Hospital Confinement Direct plan.
Paid By SureBridge Plan
(1st - 2nd day)
$4,000
(3rd – 7th day)
BILL
After PPO Discounts
ICU
Room
(1st - 2nd Day)
Hospital Room
(3rd – 7th Day)
$6,000
$4,500
Paid By Health Plan $0
$4,150
Out of Pocket
$6,000
$350
The Bronze EHB plan only paid $4,150, leaving Jenny OOP $6,350. SureBridge paid $8,000, covering the gap left by the EHB plan and giving Jenny money to help with her lost wages.
$6,350
$8,000

12. Hospital Confinement Direct Renewability
The policy is guaranteed renewable to age 65, subject to the Company’s right to discontinue or terminate the coverage as provided in the TERMINATION OF COVERAGE section of the policy.

13. Hospital Confinement Direct Hospital Confinement Direct FAQs
New Business and Underwriting
This product cannot be sold with another Hospital Confinement plan offered by CLICO.
Minimal application questions apply to this product.
Claim Payment
Cash benefit to the member – no assignment of benefits.
No coordination of benefits with any health plans.
No network of providers.
Maternity is not covered.
Average claim processing time is 7 business days unless an additional review is conducted for provisions of the coverage (i.e. pre-existing, etc.)

14. Hospital Confinement Direct Underwriting Quick Reference
Question Summary
Applies to Hospital Confinement Direct
Applies to Hospital Confinement Direct GI
Applicants Info, Height/Weight
Per Height Weight Chart -
Abnormal test results
Yes
Impending test
Cancer history: full
HIV AIDS
Prescription
ADL (Activities of Daily Living)
Cholesterol/Blood Pressure
Mental Diseases or Disorders
Heart Brain and Circulatory System
Renal System
Endocrine System
Organ Transplant
Important Information
Summarized questions are based on the generic 2015 application.
See the Hospital Confinement Direct section of the Chesapeake Underwriting and Product Guide for detailed application question information.

15. Hospital Confinement Direct Pricing Examples
Rates can change. These rates come from the generic brochure dated August 2015 CH HP CON DIR 815. The chart below is only an illustration of benefit and premium options per covered person for plans. Premiums may vary by state.
Monthly Premiums¹
GI Option
Option 1
Option 2
Option 3
30 Year old Male
$6.36
$10.17
$15.25
$20.34
30 Year old Female
$4.99
$7.98
$11.97
$15.96
45 Year old Male
$12.81
$20.49
$30.74
$40.99
45 Year old Female
$9.88
$15.80
$23.70
$31.60
Sample
¹ The chart above is only an illustration of benefit and premium options per non-tobacco covered person. Premiums may vary by state.

16. Hospital Confinement Direct
This presentation is not inclusive of all policy provisions.
See product materials and/or state-specific training presentation for complete details and any additional state variations regarding Termination of Coverage, Renewability, Premium Changes, Eligible Dependents, Exclusions and Policy Definitions.
SureBridge® is a registered trademark used for both insurance and non-insurance products offered by subsidiaries of HealthMarkets, Inc. Supplemental insurance products are underwritten by The Chesapeake Life Insurance Company®. Administrative offices are located in North Richland Hills, TX.
SureBridge products are individual supplemental products and are not available as group coverage.
This material cannot be copied or used in any way for advertising or presentation purposes.
THIS POLICY PROVIDES LIMITED BENEFITS. This type of plan is not considered “minimum essential coverage” under the Affordable Care Act and therefore a Hospital Confinement Indemnity Insurance Policy does not satisfy the individual mandate that you have health insurance coverage.
This is not Medicare Supplement Insurance.
Benefits may vary by state. See state variations and product materials for more detail.

17. Hospital Confinement Direct Thank You For Everything You Do!
Hospital Confinement Indemnity Insurance Policy