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 per policy 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

3. TMK1536 092910Agent training only. Not for sales use. Where we are at & where we are going… As of Nov. 25, 2012 DCN: 10% 4-Month Persistency: 86% 13-Month Persistency: 62%

4. TMK1536 092910Agent training only. Not for sales use. Where we are at & where we are going… Goal for each branch moving forward DCN: 6% or less (15) 4-Month Persistency: 93% or more (8) 13-Month Persistency: 75% or more

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

6. TMK1536 092910Agent training only. Not for sales use. Employee BM, $10k/wk, 10% Growth Renewals over the next 10 years BM with 75% 13-month persistency makes $65,190 more vs. BM with 63% 13-month persistency

7. TMK1536 092910Agent training only. Not for sales use. Employee BM, $25k/wk, 10% Growth Renewals over the next 10 years BM with 75% 13-month persistency makes $ 162,977 more vs. BM with 63% 13-month persistency

8. TMK1536 092910Agent training only. Not for sales use. Employee BM, $50k/wk, 10% Growth Renewals over the next 10 years BM with 75% 13-month persistency makes $325,954 more vs. BM with 63% 13-month persistency

9. TMK1536 092910Agent training only. Not for sales use. Ind. Contractor BM, $10k/wk, 10% Growth Renewals over the next 10 years BM with 75% 13-month persistency makes $216,315 more vs. BM with 63% 13-month persistency

10. TMK1536 092910Agent training only. Not for sales use. Ind. Contractor BM, $25k/wk, 10% Growth Renewals over the next 10 years BM with 75% 13-month persistency makes $540,787 more vs. BM with 63% 13-month persistency

11. TMK1536 092910Agent training only. Not for sales use. Ind. Contractor BM, $50k/wk, 10% Growth Renewals over the next 10 years BM with 75% 13-month persistency makes $1,081,574 more vs. BM with 63% 13-month persistency

12. 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.

13. 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.

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

15. TMK1536 092910Agent training only. Not for sales use. Quality Control Manager TMK1536 092910Agent training only. Not for sales use.

16. TMK1536 092910Agent training only. Not for sales use. Quality Control Manager Profile – Who are you looking for? Experienced administrator or Agent with good work habits but not strong prospector Great organizational skills Strong product and underwriting knowledge Strong phone, email, and spreadsheet skills Doesn’t have desire to be liked by Agents or Managers THIS PERSON IS NOT A UNIT MANAGER!!

17. TMK1536 092910Agent training only. Not for sales use. Quality Control Manager Duties Review applications in the portal Change apps to trial/cancel apps Make bank verification calls Make internal QAC calls to applicant Follow up on Pending Business (CODs, QAC, Medical Records, Oral Swabs, etc.) Call Worksite clients to verify deductions started, first bill received, first bill paid Call past due worksite cases Analyze Qlikview data Train agents on recurring issues

18. TMK1536 092910Agent training only. Not for sales use. Ideas on how you pay Quality Control Manager Hourly rate Bonus for each point better than company average on DCN and 13-month persistency

19. TMK1536 092910Agent training only. Not for sales use. Conservation Agents TMK1536 092910Agent training only. Not for sales use.

20. TMK1536 092910Agent training only. Not for sales use. Conservation Agent Profile – Who are you looking for? Agent with good work habits but not strong prospector Great organizational skills Calm demeanor to deal with customers Strong phone, email, and spreadsheet skills Ability to drive your entire territory Doesn’t have desire to be liked by other Agents

21. TMK1536 092910Agent training only. Not for sales use. Conservation Agent Duties Reinstate lapsed policies Move Payroll Deduction customers to bank draft ($6 MM) Travel to customer home/worksite to collect paperwork, signatures, swabs, etc.

22. TMK1536 092910Agent training only. Not for sales use. How Conservation Agent is paid Reinstatement bonus Writing additional business while reinstating policies Renewals Build a team and supervise Agents

23. TMK1536 092910Agent training only. Not for sales use. Portal Usage TMK1536 092910Agent training only. Not for sales use.

24. TMK1536 092910Agent training only. Not for sales use. Are we utilizing the portal? Last two weeks 4,500 submitted apps 39% of the apps have been viewed Last week, 11 BMs did not view any apps 15 apps cancelled 11 apps changed to trial

25. TMK1536 092910Agent training only. Not for sales use. We Don’t Accept Prepaid cards such as Metabank, Green Dot, NetSpend (14 or 16 digit account numbers) or Chase Liquid

26. TMK1536 092910Agent training only. Not for sales use. Coming Attractions TMK1536 092910Agent training only. Not for sales use.

27. TMK1536 092910Agent training only. Not for sales use. Coming Attractions… Quality Playbook Torch Magazine recognition Reinstatement bonus test … Who is committed? Quality School March 6-7, 2013