1. 1 Frequently Asked Questions Hosted by John Long and Rindge Leaphart Small Business

2. 2 This webinar will answer some of the questions that you may have regarding the small business legal plans offered by LegalShield.

3. 3 Frequently Asked Questions

4. 4 ANSWER: This subject is covered under Benefit 3: Designated Consultations. The member is entitled to discounts ranging from 10-25%. QUESTION: A small business owner travelled out of state and had a problem with the hotel bill. When the Provider Law Firm writes a letter on their behalf, is this service eligible to receive the 25% discount?

5. 5 QUESTION: A small business owner has an employee involved in a traffic accident in a company vehicle while in another state. How much of a discount, if any, can the the Provider Law Firm offer? ANSWER: This subject is covered under Benefit 3: Designated Consultations. The member is entitled to discounts ranging from 10-25%.

6. 6 QUESTION: When the small business operates out of a single state, to what extent can they get help in another state (i.e. A mortgage company needs a contract reviewed in multiple states)? ANSWER: This subject is covered under Benefit 3: Designated Consultations. The member is entitled to discounts ranging from 10-25%.

7. 7 QUESTION: An owner has a small business in Ohio with a production facility in Florida. Both locations have the same Federal ID/EIN. Does the Florida location have any membership benefits under the BOLSP? ANSWER: No. If an owner has businesses in two states, then separate plans are required for each state even if they happen to have the same Federal ID/EIN.

8. 8 QUESTION: If a small business owner has a BOLSP and is sued in a state other than the one of the primary business, is coverage available under Benefit 3: Designated Consultation? ANSWER: This subject is covered under Benefit 3: Designated Consultations. The member is entitled to discounts ranging from 10-25%.

9. 9 QUESTION: To what extent, if any, will the BOLSP help a business in another state? ANSWER: This subject is covered under Benefit 3: Designated Consultations. The member is entitled to discounts ranging from 10-25%.

10. 10 QUESTION: What discount is available for small business owners that live on the border of multiple states and regularly conduct business in multiple states (i.e. Kansas City, St. Louis, etc.)? ANSWER: This subject is covered under Benefit 3: Designated Consultations. The member is entitled to discounts ranging from 10-25%.

11. 11 QUESTION: If a small business owner wants a contract with an out-of-state vendor reviewed, is this covered? ANSWER: Coverage depends on the service that is being provided and in what jurisdiction the issue arises. If the member is in OK and they send their contract to a vendor in FL, then this is covered. The law firm in OK will review. If the vendor in FL sends their contract to the member in OK and the state of jurisdiction is Florida, then in this case, it falls under Benefit 3: Designated Consultations.

12. 12 QUESTION: Why are designated consultations necessary if there are unlimited phone consultations? ANSWER: We generally provide unlimited consultations except in certain specialty areas of law. Keep in mind, the Provider Law Firm may or may not have a specialized attorney on staff for certain areas of law. The designated consultations are designed for those specialty areas of law.

13. 13 QUESTION: When is it required that a business have more than one BOLSP? ANSWER: A BOLSP can cover more than one business if they share the same tax ID number, are in the same state and have less than 99 total combined employees. If the businesses have different tax ID numbers or are located in different states, then they must have separate plans.

14. 14 QUESTION: If I own several businesses within one state, does the BOLSP cover all of my business locations? ANSWER: The BOLSP will cover all business locations within the state if they share the same tax ID number and have less than 99 total combined employees. If the locations are in different states, then each must have a separate plan even if they share the same tax ID.

15. 15 QUESTION: Regarding the BOLSP, can an owner call regarding an employee who is enrolled in the group plan? Will the provider law firm return the call or will the owner be given a conflict number? ANSWER: Yes, the business owner can call regarding an employee. There may be a conflict or the member may be handled by the provider firm depending on the issue.

16. 16 QUESTION: A small business owner has the BOLSP and the Family Plan. Can the small business owner use his Family Plan for business coverage that is not in the state where his business is located? ANSWER: No. If the member has a Small Business Plan and a Family Plan, he cannot use benefits under his family membership for the business. This would be a duplication of benefits and is not permitted.

17. 17 QUESTION: Does the BOLSP cover the business owner if he is named in a civil action? Does the “Covered Entity” include the owners individually? What coverage should be recommended to the business owner for total protection? ANSWER: The BOLSP does not cover the business owner at all. Purchasing the Family Plan is recommended for business owners seeking total legal protection.

18. 18 QUESTION: Does the family plan cover trial defense for the business owner who was directly involved in the action? Does the family plan cover lawsuits filed as a result of ownership or management? How does the BOLSP affect coverage in this situation? ANSWER: Yes, the family plan does cover trial defense for the business owner who was directly involved in the action. The family plan does not, however, cover the member who was named as defendant only because he is the owner or manager of the business. The BOLSP only covers the business.

19. 19 QUESTION: For the BOLSP, are both employees and the business covered in a “direct action”? ANSWER: Employees do not have any benefits under the BOLSP. If the Business is named as defendant due to employee actions, the Business has coverage.

20. 20 QUESTION: For the BOLSP, when the member's number of employees goes from 45 to 55, is their membership coverage disrupted if not reported? ANSWER: At this time, there is no procedure to verify employee numbers. The employer and the Associate should track and report changes in employee headcount. Any changes in headcount that affect coverage and/or pricing should be reported to LegalShield.

21. 21 QUESTION: For the BOLSP, when the member's number of employees drops from 55 to 45, is their membership coverage disrupted if not reported? ANSWER: Coverage will not be jeopardized if the employee number goes down. The employer and the Associate should track and report changes in employee headcount. Any changes in headcount that affect coverage and/or pricing should be reported to LegalShield.

22. 22 ANSWER: If there is documentation to prove that there are more than 99 employees, then we have the right to terminate the membership. QUESTION: For the BOLSP, what happens when the number of employees exceeds 99? Do we terminate the plan immediately?

23. 23 QUESTION: For the BOLSP, how are seasonal employees counted? Do we have any provision in the contract for seasonal employees fluctuations? ANSWER: We would count them as employees in the total for the business membership.

24. 24 ANSWER: The employer and Associate should track and report changes in employee headcount. Changes in headcount that affect coverage and/or pricing should be reported to LegalShield. QUESTION: For the BOLSP, when an employer goes over 50 employees, or over 99 employees who's obligation is it to report the changes to LegalShield?

25. 25 QUESTION: Is membership coverage immediately void when an employer has more employees than the plan allows? Or is there a grace period or adjustment period? ANSWER: The employer and Associate should track and report changes in employee headcount. Changes in headcount that affect coverage and/or pricing should be reported to LegalShield.

26. 26 QUESTION: If a business owner has the BOLSP, should we recommend the LPSE if they are concerned about Trial Defense and want the best business and personal coverage? ANSWER: No. There is no point in having the LPSE for personal coverage if the member has the BOLSP. Having a LPSE would duplicate business benefits already provided on the BOLSP. The regular family plan would be the appropriate plan for personal coverage.

27. 27 QUESTION: Who is covered under the LPSE trial defense benefit? ANSWER: Only direct actions by the member or the member’s spouse would be covered for Trial Defense. There are no benefits for anyone else. The business receives a 25% discount.

28. 28 QUESTION: LPSE: When is the business owner covered in a lawsuit related to his/her business? ANSWER: The owner is covered when: A.The Business Entity is named, B.The Business Owner is named and C. The Business Owner has a direct action.

29. 29 QUESTION: For the LPSE trial defense benefit, if a business is named and the member or member’s spouse is named and caused the direct action, does this fall under the 75 hour coverage benefit? If only the business was named, does this fall under the 25% discount? ANSWER: Yes, the named member or member’s spouse must have had a direct action. If only the business was named, then the business will receive the 25% discount.

30. 30 QUESTION: A small business owner has the LPSE but wants his office manager to follow up with an attorney on a business related issue. Is this permitted? ANSWER: The LPSE covers the named member, spouse and dependents. Employees do not have coverage under this plan and therefore do not have the authority to speak to an attorney on behalf of the owner.

31. 31 QUESTION: Within a married couple, the wife purchased the LPSE and she owns a business. The husband owns a separate business. Will the LPSE cover both businesses? ANSWER: The LPSE covers one business. This may be either the member’s business or the business of the member’s spouse.

32. 32 QUESTION: If I live in one state and my business is in another state, can I buy the LPSE? ANSWER: No. The small business owner is not eligible to have the LPSE if the business and home are located in any two different states.

33. 33 QUESTION: Do the HBBR and LPSE cover business matters in all 50 states like the family plan? ANSWER: The HBBR will cover business matters in any of the 50 states. Although you cannot get the HBBR in every state, if you have the HBBR plan, you can use it in any state. The LPSE, however, will only cover business matters in the state of the membership.

34. 34 QUESTION: In case of a civil lawsuit and trial defense, when does the LPSE and HBBR cover the business, the owner or both? ANSWER: The LPSE and HBBR do not have trial defense benefits for the business. Furthermore, these plans will only cover a member who has been named as a defendant and has direct action. If the business is sued and the business owner has the LPSE or the HBBR, then the business receives a 25% discount.

35. 35 QUESTION: How can we protect several home-based businesses in one household? ANSWER: The Home Based Business Rider (HBBR) can cover more than one home- based business if they share same tax ID number and have no more than 3 employees between all businesses. If the businesses have different tax ID’s, then they must be in similar industries and/or business categories to receive coverage.

36. 36 QUESTION: In reference to contingency issues, what does 5% mean? ANSWER: It is 5 percentage points off their contingency amount. If contingency is typically 25%, then it would be reduced to 20%. Percentage Points

37. 37 Thank you for joining us for today.