tmk1536 0612 for agent training purposes only, not for sales presentation 8 vs. 18

TMK1536 0612For Agent training purposes only,

not for sales presentation

8 vs. 18



Best DCN% by BranchBranch Manager Branch DCN%Steve Harris 8Ron Tadle 7Nick Slagle 7



Best Persistency% by BranchBranch Manager Branch Persistency%Byron Schreiber 92Tony Difilippo 94Jill Wilmeth 94Aaron Snider 98Nick Slagle 98



Definitions

Decline: Poor field underwriting (1%)

Cancellation: Customer cancels or underwriting requirements not met (3%)

Not-Taken: Customer returns policy during free-look period or payment not received (6%)



How is DCN calculated?

Declines

Cancels

Not Takens

Submitted Premium



Definitions

Persistency: Premium issued and paid four months or longer, divided by total issued business based on policy effective date



How does Quality impact pay & retention?

• Chargebacks

Months Premium Paid Chargeback %

0-2 months 100%3 months 90%4 months 80%5 months 70%6 months 60%

Months Premium Paid Chargeback %

7 months 50%8 months 40%9 months 30%

10 months 20%11 months 10%




• Chargebacks• Direct pay submit advance commissions

DCN BB/Annual Section 125 All Other Modes

0 – 13 70% 50% 0%14 – 17 55% 40% 0%

18+ 40% 30% 0%Direct Pay Submit Advance may be reduced based on the Agent’s DCN




• Chargebacks• Direct pay submit advance commissions• Gross Submit Production Pay – (DCN + Lapses)

Agent Gross

Submit

4 Wk Agent Gross

Submit

Lapses in first 2

monthsDCN Net Submit 4 Wk Avg.

Net SubmitProd. Pay %

Prod. Pay

DCN Mult.

Prod. Pay

$1,500 $1,500 $0 $0 $1,500 $1,500.00 15% $225.00 1.00 $225.00

$2,000 $1,750 ($400) $0 $1,600 $1,550.00 17% $263.50 1.00 $263.50

$2,800 $2,100 ($500) ($300) $2,000 $1,700.00 21% $357.00 1.00 $357.00

$1,500 $1,950 ($150) ($600) $750 $1,462.50 19% $277.88 1.00 $277.88

$800 $1,775 ($200) ($100) $500 $1,212.50 17% $206.13 1.00 $206.13

$2,000 $1,775 ($100) ($50) $1,850 $1,275.00 17% $216.75 1.00 $216.75

$3,500 $1,950 $0 ($600) $1,900 $1,500.00 19% $285.00 1.00 $285.00




• Chargebacks• Direct pay submit advance commissions• Gross Submit Production Pay – (DCN + Lapses)• DCN: Bonus multiplier first 7 months

% DCN MULTIPLIER

0.00 1.20

0.01 1.19

0.02 1.18

0.03 1.16

0.04 1.14

0.05 1.12

% DCN MULTIPLIER

0.06 1.10

0.07 1.08

0.08 1.06

0.09 1.04

0.10 1.02

0.11 1.00

% DCN MULTIPLIER

0.12 0.96

0.13 0.92

0.14 0.88

0.15 0.83

0.16 0.78

0.17 0.72

% DCN MULTIPLIER

0.18 0.66

0.19 0.60

0.20 0.54

0.21 + 0.00

Production Pay DCN Multipliers




• Chargebacks• Direct pay submit advance commissions• Gross Submit Production Pay – (DCN + Lapses)• DCN: Bonus multiplier first 7 months• Persistency: Bonus multiplier month 8 and beyone

Production Pay Persistency Multipliers% PER MULTIPLIER

1.00 1.320.99 1.320.98 1.300.97 1.280.96 1.260.95 1.240.94 1.220.93 1.200.92 1.180.91 1.16

% PER MULTIPLIER0.90 1.140.89 1.120.88 1.110.87 1.100.86 1.090.85 1.080.84 1.070.83 1.060.82 1.040.81 1.02

% PER MULTIPLIER0.80 1.000.79 0.950.78 0.900.77 0.850.76 0.800.74 0.750.74 0.700.73 0.650.72 0.600.71 0.55

% PER MULTIPLIER0.70 0.500.69 0.450.68 0.400.67 0.350.66 0.300.65 0.25

≤0.64 0.00




• Last but certainly not least…

Renewals Renewals Renewals Renewals RenewalsRenewals Renewals Renewals Renewals RenewalsRenewals Renewals Renewals Renewals RenewalsRenewals Renewals Renewals Renewals RenewalsRenewals Renewals Renewals Renewals RenewalsRenewals Renewals Renewals Renewals RenewalsRenewals Renewals Renewals Renewals RenewalsRenewals Renewals Renewals Renewals RenewalsRenewals Renewals Renewals Renewals Renewals Renewals Renewals Renewals Renewals Renewals



So how does that translate to dollars?



What does an 8 vs. 18 DCN mean to an Agent in his first seven months with a $1,400

per week average?



Take Home Pay

Individual8 DCN Agent takes home 49% more

Worksite8 DCN Agent takes home 47% more



Individual 8 DCN 18 DCN

Production $39,200 $39,200

Direct Pay % 70% 40%

Direct Pay $27,440 $19,040

Worksite 8 DCN 18 DCN

Production $39,200 $39,200

Direct Pay % 50% 30%

Direct Pay $19,600 $14,000

$8,400 More Direct Pay

$5,600 More Direct Pay

Agent Direct Pay



DCN % Gross Submit

DCN Net Submit

Prod. Pay %

Prod. Pay

DCN Mult.

Prod. Pay

8 $1,400 $112 $1,288 15% $193 1.06% $204

18 $1,400 $252 $1,148 15% $172 0.66% $113

Production Pay Net Submit & DCN Multiplier



DCN Direct Pay Prod Pay Total

Individual 8 $27,440 $5,712 $33,152

Individual 18 $19,040 $3,164 $22,204

Take Home Pay $10,948

Worksite 8 $19,600 $5,712 $25,312

Worksite 18 $14,000 $3,164 $17,164

Take Home Pay $8,148

Take Home Pay



Take Home Pay

Individual8 DCN Agent takes home 49% more

Worksite8 DCN Agent takes home 47% more



So when is a good time to train on Quality?



Individual Business A-250 Application



Quality Before the Sale: Classroom Training



Review the key points in the Agent’s Instruction Guide:

Then save it to the desktop of the Agent’s computer

Agent’s Instruction Guide



Automatic Decline Conditions

• 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 within a two-year period• Confined to jail

Applicants with the following conditions will be automatically declined:



When is the Agent required to get an Oral Swab?

Underwriting Requirements Chart



If the proposed insured does not fall within the standard weight limits shown on the chart, the proposed insured will be rated.

Build Charts



Lists conditions and “general” guidelines

Medical History Guide



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

ALX Only



Quality During the Presentation:

Setting Correct Expectations



Open your eyes



What questions can you ask an applicant in

normal conversation to determine if you should

present ALX?



Questions• 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?• Are you receiving disability income?• How’s your driving record?



“Great news! We have a policy specifically

designed for people with your health conditions.”



On cases with that appear to be medicallyquestionable, the best thing to do is submit theapplication on a trial basis.

• Apps over $1 million

• Collect no payment or app fee

• Does not count for submit for commissions or production pay

• Does not count against DCN if declined or not taken by customer

Trial Applications



So why don’t Agents use Trial applications?



When does an individual policy go

into effect?



• Sets expectations• QAC Call• Medical Records

Closing Script



Quality After the Submit



Worksite



• Checklist Found In ‘Steps to Success’

Relationship With The Bookkeeper



• Follow-up, who is responsible, date completed

Worksite Case Checklist



• This is what it looks like in Qlikview when a worksite case is not taken

Impact of Not-Takens



DCN Detail Report Example

tmk1536 0612 for agent training purposes only, not for sales presentation 8 vs. 18

Documents