CHAPTER 2. Life Insurance Q&A for Customers. Considering Life Insurance: From the Commencement of a Contract to Receiving Insurance Benefits 20

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1 CHAPTER 2 Life Insurance Q&A Considering Life Insurance: From the Commencement of a Contract to Receiving Insurance Benefits 20 Products and Nissay Insurance Accounts for Individuals Q1 Can you help me to choose life insurance suitable for my family and myself? 22 From Application to Conclusion of a Policy Q2 I would like to know about procedures upon enrollment 26 Provision of Information during the Term of a Policy Q3 It has been quite a long time since I enrolled in my policy. Is there any information available to remind me about the contents of my policy? 28 Submitting Insurance Claims and Benefits Q4 What if you have already entered a hospital or had surgery? 30 Q5 A relative passed away. What should I do? 30 Q6 I was told that my insurance claim was ineligible for payment. What should I do? 31 Strengthening the Underwriting and Insurance Claims and Benefit Settlement System and Expanded Explanation Q7 What is the system for the regular payment of insurance claims and benefits? 32 Insurance Consultation and Inquiries Q8 What do I do when I don t understand something about insurance or otherwise have trouble? 34 Q9 Who are the Nissay Total Partners? 35 Q10 What are agencies? 36 Q11 Is it true that I can enroll in insurance at the bank or credit union? 37 Q12 Are there consultation counters at Nippon Life? 37 Q13 What kind of procedures could be completed over the phone or by Internet? 39 Q14 I am hesitant to enroll in life insurance products because I think they are complicated. 40 Q15 Will my personal information be safe? 41 To Corporate Managers Q16 I am the owner of a company. How can I offer improved benefit plans to executives and employees? 42 Investing Insurance Premiums Entrusted to Us Q17 Are the insurance premiums we are paying being safely invested? 45 Overseas Business Development 46 19

2 CONSIDERING LIFE INSURANCE: FROM THE COMMENCEMENT OF A CONTRACT A life insurance policy is an agreement with a customer that spans years from the time the customer enrolls in a policy until the policy comes to maturity, or until the customer receives claims or benefits. In order to give customers constant peace of mind, it is also important to review and adjust coverage as needed in response to events that occur during the course of this long-term agreement. Different considerations for different cases The following shows examples of the counseling sought and questions asked by customers as well as insurance-related procedures based on the stage of the contract. We hope that reading the following pages in conjunction with the rest of Q2: I would like to know about procedures upon enrollment p. 26 chapter 2 will give readers a greater understanding of our mission. Please contact your local Nippon Life representative at any time to inquire about insurance coverage. Q8: What do I do when I don t understand something about insurance or otherwise have trouble?...p34 Q4: What if you have already entered a hospital or had surgery?.. p. 30 Q6: I was told that my insurance claim was ineligible for payment. What should I do? p. 31 Q7: What is the system for the regular payment of insurance claims and benefits? p. 32 From Application to Conclusion of Policy Applying for and receiving benefits (Policy Stages) Insurance Plan Proposal Underwriting Assessment Benefit settlement assessment/guidance Disclosure of policy-related information/policy change procedure Plan Review Policy Confirmation Q1: Can you help me to choose life insurance suitable for my family and myself? p. 22 Q14: I am hesitant to enroll in life insurance products because I think they are complicated?... p. 40 Q15: Will my personal information be safe? p. 41 Q17: Are the insurance premiums we are paying being safely invested? p. 45 Policy guide Application Form Databook 2007 Information on Consistent Protection. Superior Services. Concerning the Receipt of Insurance Benefits Comparative Prospectus Life News Notices of policy terms and conditions Reference: We recommend customers refer to The Japan Institute of Life Insurance (JILI) website section Life Insurance Policy Procedures for easily understandable information on life insurance policies. The website also features information about life insurance framework life planning, and taxes in an easily understandable format. The Japan Institute of Life Insurance (Japanese) The Japan Institute of Life Insurance website s top page 20

3 TO RECEIVING INSURANCE BENEFITS Q9: Who are the Nissay Total Partners? p. 35 Q10: What are agencies? p. 36 Q11: Is it true that I can enroll in insurance at the bank or credit union? p. 37 Q12: Are there consultation counters at Nippon Life? p. 37 Q13: What kind of procedures could be completed over the phone or by Internet? p. 39 Q5: A relative passed away. What should I do? p. 30 Q6: I was told that my insurance claim was ineligible for payment. What should I do?.. p. 31 Q7: What is the system for the regular payment of insurance claims and benefits?..... p. 32 Applying for and receiving settlements Review of insurance coverage Insurance payment assessment/guidance Consultations and Procedures for Policy Changes Q3: It has been quite a long time since I enrolled in my policy. Is there any information available to remind me about the contents of my policy? p. 28 Q16: I am the owner of a company. How can I offer improved benefit plans to executives and employees?.. p. 42 Talk to Your Local Nippon Life Representative at These Times Change of policyholder Change of beneficiary Change of family name or other name Change of Change of type of personal seal policy or rider Increasing coverage Change of amount or adding coverage address Change of bank account information Claims and benefits Marriage Birth of a child When the youngest child becomes an adult Divorce Self /Self/Spouse Self/Spouse / Self/Spouse and child Self/Spouse and child /Self/Spouse Self/Spouse and child /Self/Child When something unexpected happens to the policyholder When something unexpected happens to the beneficiary When a specified reason for payment occurs or when there are grounds for exemption of premium payment *Please refer to pp for an overview of products (Main Policies/Riders) Assorted documentation 21

4 PRODUCTS AND NISSAY INSURANCE ACCOUNTS FOR INDIVIDUALS Q1 Can you help me to choose life insurance suitable for my family and myself? Nissay Insurance Accounts Card Nissay Insurance Accounts Card, Type One In addition to the features and privileges of Nissay Insurance Accounts cards, Type One cards offer users a variety of advantages, including an automatic 1% return on amounts spent on shopping services provided by Toyota Financial Corporation. Nippon Life Product Lineup Nippon Life strives to offer services and develop products with primary emphasis on providing truly useful coverage for customers. The areas that customers want to prioritize when choosing coverage vary according to their life stages. Furthermore, lifestyles have been undergoing major changes in recent years; people are getting married later in life and an increasing number of people are remaining single, leading growth in the number of households where more than one member holds down a job. To respond thoroughly to such diversifying customer needs, Nippon Life has reviewed and, where appropriate, improved its product lineup of death protection, medical and nursing care coverage, savings and retirement coverage, coverage for children and other products. We combine these to supply customers with comprehensive, well-balanced coverage according to their needs. Nissay Insurance Accounts Nippon Life works to provide comprehensive coverage suited to the needs of each and every one of its customers. Customers are able to join the service free of charge, and Nippon Life considers Nissay Insurance Accounts to be the centerpiece of its product and service strategy as a service that consolidates all types of coverage under a single umbrella. By consolidating coverage into a single account, customers can easily confirm their insurance holdings and pinpoint areas where they might have either too much or too little coverage. It also simplifies the procedures that customers have to go through. Furthermore, premiums are discounted when coverage is consolidated. Nissay Insurance Accounts provide for both life insurance and non-life insurance and service needs, providing peace of mind in a more beneficial, comprehensible and convenient way. Four Advantages of Nissay Insurance Accounts Discount Based on Transactions Discounts are offered on premiums for EX series products (policies effective as of April 2, 1999) depending on the total transaction amount for the policy in which a customer has enrolled. Discounts for Non-Life Insurance Accounts Higher Dividends for Longer Participation Naruhodo Tokuten Services for Policyholders Discounts are available on insurance premiums for automobile and accident insurance from Nissay Dowa General Insurance. Longer spans of continuous policy coverage provide customers with higher dividend eligibility. We provide an array of benefits and services to match each customer s lifestyle: Transactions can be conducted by phone, over the Internet, through ATMs, and other means Complimentary service and special discounts at 10,000 affiliates throughout Japan Consulting regarding health or nursing care, and providing information about medical organizations Housing loan preferred interest rate services, etc. Ikiru Chikara EX Once a year, Nippon Life sends customers a Notice of Policy Terms and Conditions. Please request information on Consistent protection. Superior services. For details on how to find out about the policies in which you are enrolled (see p. 28 to 29). Ikiru Chikara Frau EX Ikiru Chikara EX Medical coverage offering sufficient protection must provide both daily hospitalization costs and substantial funds to live on when one is suffering from a serious disease. Ikiru Chikara EX insurance policies provide comprehensive medical coverage that meets both of these medical coverage requirements, as well as providing for the family of the deceased. 22

5 NEWLY DEVELOPED PRODUCTS Life Insurance Products Iryo Meijin EX (Launched in September 2005) These medical insurance policies were developed for customers 50 years of age and over who are seriously thinking about enrolling in policies that provide for their own medical coverage needs in addition to death protection. In addition to hospitalization and surgery coverage, the policies provide coverage in the event of serious conditions, including the three most dread diseases, serious designated lifestyle diseases, organ transplants and other situations. Super Phoenix 100EX (Launched in September 2005) This is a long-term life insurance policy for business executives with coverage lasting until the age of 100. It provides for business insurance capital in case of unforeseen circumstances that affect the executive, and also serves as a provision for retirement bonuses at the time the executive steps down. Iryo Meijin EX Products Sold at Service Counters of Financial Institutions Long Dream (Launched in December 2005) Long Dream policies are single-payment whole life insurance policies sold only at the life insurance counters of banks and credit unions. This product features the combination of lifelong death protection with highly effective asset formation. The lineup of Long Dream policies also includes our first-ever dollar denominated product. *This product is named Eternal Dream or Ever Dream at some financial institutions. Super Phoenix 100EX My Dream Plus (Launched in August 2006) My Dream Plus is an annuity with a variable accumulation rate released to help customers prepare for their own retirement and to meet asset management needs. The product reflects changes in market interest rates in a timely manner. (It is sold nationwide at financial institutions, including banks and credit unions, as well as at Nissay Life Plazas.) Long Dream Non-Life Insurance Products Long-Term Automobile Insurance Long (Launched in April 2006) Nippon Life sells non-life insurance as an agency of Nissay Dowa General Insurance. Long extends the coverage period of our existing Pittato-Kun and New F PAP automobile insurance to three years (or two years). The policies provide a number of advantages to customers. Insurance premiums are lower than those for policies that must be renewed annually, and customers do not have to go through the procedure of renewing their policies during the coverage period. My Dream Plus Nissay Dowa General Insurance automobile insurance product Pittato-Kun 23

6 Overview of Main Products for Individual Customers (as of July 2007) Main Policies Death Coverage / Medical Coverage Type of Insurance Summary Product Name Whole life insurance* Insurance that guarantees coverage over the insured s whole life Nissay Whole Life Insurance EX Whole Life Insurance Nice Day EX (for women) Whole Life Insurance Seicho-Nikki EX (for children) Term life insurance* Insurance with death protection for a set period Nissay Term Life Insurance EX Whole life insurance Insurance that combines term coverage for a set period of time with Whole Life Insurance with Term Rider Long Run EX with term rider* coverage that continues for the insured s whole life Whole Life Insurance with Term Rider Nice Day More EX (for women) Whole Life Insurance with Term Rider Kenkou Jyujitsu Sengen EX Whole Life Insurance with Annuity Certain for Family Fureai Kazoku EX Whole Life Insurance with Term Rider My Anniversary EX Ikiru Chikara* Insurance that combines term coverage and medical whole life insurance Ikiru Chikara EX for illness, injuries and cancer Ikiru Chikara EX (cancer coverage type) Ikiru Chikara EX (medical coverage type) Ikiru Chikara Master Class EX (for male customers aged 50 and over) Ikiru Chikara Frau EX (for women) Hospitalization and Insurance that covers hospitalization and surgery Iryo Meijin EX (for customers aged 50 and over) medical insurance* Yume no Chikara (for woman) Cancer Insurance* Insurance that guarantees various types of coverage for life if the insured Nissay Cancer Insurance EX is diagnosed with cancer Coverage Combining Protection and Saving Components Type of Insurance Summary Product Name Endowment insurance* Insurance with equal benefit payments for death, serious disability Nissay Endowment Insurance EX or upon policy maturity Endowment insurance Insurance that combines death protection for a set period with Endowment Insurance with Term Rider Nissay Kurashi no Hoken EX with term rider* endowment insurance Endowment Insurance with Term Rider Little Anniversary EX Retirement Coverage Type of Insurance Summary Product Name Fixed amount annuities* Insurance that pays a fixed annuity when a specified age is reached Individual Fixed Annuity Nenkin Meijin EX Individual Fixed Annuity Kenkou Sapoto Nenkin EX Products sold at financial institution service counters Annuity with variable Adds to annuity resource coverage; while promising a set yield, Nissay Variable Accumulation Rate Annuity accumulation rate provides annuity insurance with timely single payments that (fixed interest rate and variable interest rate types) reflect changes in market interest rates Variable amount Insurance with single premiums managed in a separate account, Individual Variable Annuity Toshi Gata Nenkin (Investment-Type annuities with future amount of annuity, surrender value, and death Annuity): (standard and balanced types) benefit based on investment performance Annuity with variable accumu- Single payment whole life insurance with an accumulative rate Nissay Variable Accumulation Rate Type Single-Payment Whole Life lation rate type single-payment that moves in response to market interest rate Insurance (yen or U.S. dollar denominated) whole life insurance Coverage for Other Needs Type of Insurance Summary Product Name Term life insurance Insurance paying survival benefit every three years in addition to Term Life with Survival Benefit Insurance Nissay BIG YOU EX with survival benefit death/serious disability coverage Term Life with Survival Benefit Insurance Nissay Melody EX Juvenile insurance Insurance paying special payment when the child reaches specified age Juvenile Insurance Genki EX and a specified education annuity if the policyholder dies Notes:1. EX series products: Policies with policy dates after April 2, 1999, that were also sold at the start of Nissay Insurance Accounts. All features of the Nissay Insurance Accounts apply, namely discounts based on transactions, Naruhodo Tokuten services for policyholders and higher dividends for longer participation. (See p.22 for details). 2. Products denoted with * have a Key Man plan (when policy is in the name of a corporation) that provides a death benefit if the insured executive dies, and a fund for the executive s retirement benefit. 24

7 Riders Living Benefit Riders Name of Rider Serious Disease Rider Dread Disease Term Rider Recurrence Dread Disease Term Rider Illness & Disability Term Rider Nursing Care Term Rider Insurance Premium Waiver Rider Living Needs Rider Accident and Medical Riders Name of Rider Accident Rider with Extra Premium New Injury Rider Limited Injury Rider New Hospitalization due to Accident Rider α New Hospitalization Medical Rider α Short-term Hospitalization Rider α Hospitalization due to Cancer Rider New Hospitalization due to Adult Disease Rider α Hospitalization Rider for Women α Hospital Visit Rider α Summary Rider providing coverage for three dread diseases, serious designated lifestyle diseases, transplants, and other conditions Rider providing coverage for three dread diseases: designated malignant neoplasm (cancers), acute myocardial infarction, and cerebral stroke Rider providing coverage for recurrence of three dread diseases: designated malignant neoplasm (cancers), acute myocardial infarction, and cerebral stroke Rider providing coverage for specified disability due to illness Rider providing coverage for specified conditions that require nursing, such as being bedridden Rider that waives premium payments in one of the following situations: one of the three dread diseases specified disability due to sickness, or specified condition requiring nursing care Rider providing full or partial benefit when the insured is determined to have six months or less to live Summary Rider providing coverage for death/specified serious disability due to accident Rider providing coverage for death/specified disability due to accident Rider providing coverage for specified injuries (broken bones, joint dislocation, severed tendons) due to accident Rider providing coverage for specified hospitalization due to injury that lasts five days or more Rider providing coverage for specified surgery due to illness and injury and specified hospitalization due to illness that lasts five days or more Rider providing coverage for hospitalization for one-night, two-days stays due to disease or injury Rider providing coverage for specified hospitalization, surgery and post-hospitalization care directly related to cancer Rider providing coverage for specified hospitalization five consecutive days or more and surgery directly related to specified adult diseases Rider providing coverage for hospitalization related to specified female disease that lasts five consecutive days or more Rider providing coverage for specified outpatient services after hospitalization that lasts five consecutive days or more Riders Focused on Death Protection Name of Rider Term Insurance Rider Term Life with New Survival Benefit Rider Term Rider Annualized Payment Spouse Term Insurance Rider Juvenile Term Insurance Rider Rider providing coverage for death/specified serious disability Summary Rider paying survival benefit every two or three years in addition to coverage for death/specified serious disability Rider paying annuity for a set period for death/specified serious disability Rider providing coverage for death/specified serious disability of a spouse Rider providing coverage for death/specified serious disability of a child Types of Insurance and Additional Riders By attaching riders to a main policy, insurance coverage can be designed to meet the needs of each individual customer. (When a rider is added, there is a prescribed limit to the addition of riders according to age and the variety of riders that can be added at any one time. Some riders may not be added depending on the riders that the policyholder has already attached and the method of payment for the main insurance policy to which riders have been added.) Please refer to the Guide to Types of Insurance or the Nippon Life website for information about types of insurance and rider additions. Guide to Types of Insurance 25

8 FROM APPLICATION TO CONCLUSION OF A POLICY Q2 I would like to know about procedures upon enrollment. General procedures and information disclosure at the time of enrollment in an individual insurance policy are mainly as follows. Considering a Plan Tell us what kind of coverage you want. Examine the plans by referring to the prospectuses (policy guides) and product pamphlets. Explanation of Important Matters and Demerit Information Before proceeding with the application procedure, we ask for your confirmation. To prevent unfavorable outcomes for customers due to a lack of information, Nippon Life has prepared a pamphlet entitled Especially Important Notifications. The pamphlet contains explanations of items we would especially like customers to understand and confirm, such as product details, disclosure obligations, examples of when claims and benefits cannot be paid and other items. *Especially Important Notifications includes prospectuses (policy guides), reminders and other materials. Product pamphlet Plan structure Application Reconfirm that the content of the product you are applying for is what you actually want. Fill out the Plan Confirmation Document and reconfirm before applying that the product is what you really want. We ask that the policyholder or insured party fill out the forms themselves and affix their personal seal to the application form. We also ask for them to certify with their personal seals that they have received the Especially Important Notifications and policy guides (see p. 27). Reminders Policy guide policy clause Upon completing the application, we ask customers to make their first premium payment. Payment of First Insurance Premium Disclosure Provide accurate information about your health, occupation and others When the customer fills out the disclosure document with information about their medical history and current state of health, or when verbally answering questions posed by a doctor during an examination, please provide accurate and complete answers. Plan Confirmation Document Example of completed disclosure form Duty of Disclosure and Penalties for Nondisclosure Policyholders and insured parties are required to disclose information regarding their health conditions. Please be aware that in or rider may be cancelled on the grounds of nondisclosure and provided, whether intentionally or by gross negligence, the policy the event that facts are not disclosed or inaccurate information is Nippon Life may not pay benefits and claims. 26

9 Life insurance is a system wherein a large number of people, through insurance payments, mutually support one another. In order to maintain fairness among policyholders, decisions about underwriting are made based upon the content of the application and disclosure forms. Decisions about Underwriting (at Nippon Life) Commencement of Policy Coverage When a customer agrees to have Nippon Life underwrite their insurance policy, policy coverage commences from the moment of the first premium payment or upon the completion of the disclosure process. Confirmation of Policy Content Nippon Life employees or parties entrusted by Nippon Life may phone or visit policyholders, the insured and beneficiaries in order to confirm the content of application forms, disclosure forms or content of requests for insurance claims and benefit payments. Regarding the medical condition of the insured, Nippon Life may also make inquiries and otherwise seek confirmation through the doctor who examined the insured. (Front) (back) Insurance Certificate Store insurance certificates in a safe place. Once the policy takes effect, Nippon Life sends insurance certificates to the policyholder. Through these, we confirm that there are no discrepancies with the information provided on the application form. Because the insurance certificates are essential documents in various filing processes, we ask customers to store them in a safe place. Please keep certificate numbers somewhere within easy reach. Conclusion of a Policy Cooling Off System Under what s known as the cooling off system, applicants and policyholders may withdraw their applications or cancel their policies by submitting a written request within 8 days from the later of either the application date or the date they received the receipt for first insurance premiums. In this case, written requests must be postmarked within 8 days of the above-mentioned period and sent to the sales branch that handled the application or policy. The amount that was paid shall then be returned in full. However, once an examination by a doctor designated by Nippon Life has been performed or when the customer is a corporate client, the cooling off period cannot be applied to policy changes after taking effect (an addition or increase of coverage amounts for riders, etc.) or to a reinstatement by the policy. After enrollment, keep Policy Guides within easy reach. Policy Guides contain critical information about the policy and various procedures. As such, they are extremely important documents that must be consulted not only during the application process, but during the term of the policy. The terms and conditions of the policy dictate the agreement from policy enrollment to expiration and contain information about claims payments as well as the processing of premium payments, and also explains about the invalidation of the policy in the event of premium nonpayment and the handling of policy cancellations. Access Easy-to-Understand Terms and Conditions at our website Please take advantage of the Easy-to-Understand Terms and Conditions posted on the Nippon Life website (as of April 2, 2007). Features: 1) Explanations provided for each clause 2) Employs illustrations and a Q&A format 3) Comes with search function for custom queries. 4) Clearly demonstrates specific processing standards *Covers participating whole life insurance (H11) normal insurance terms and conditions (as of April 2, 2007). Easy-to-Understand Terms and Conditions 27

10 PROVISION OF INFORMATION DURING THE TERM OF A POLICY Q3 It has been quite a long time since I enrolled in my policy. Is there any information available to remind me about the contents of my policy? Anniversary Month of the Policy After enrollment in a policy and during the policy s term, anniversary month of the policy thereafter marks the day of initial policy enrollment. The term of a life insurance policy is long. To ensure that claims and benefits are filed for without error, it is important to confirm the content of the policy during its term and that the the insured person and the beneficiary (or designated proxy, see p. 31), and not just the policyholder, understand the policy content. In this section, we will tell you how to confirm policy content during the policy s term. Notices of Policy Terms and Conditions Once a year, we provide customers with easy to understand information regarding their existing insurance coverage as well as financing and services available to them based on the policies in which they are enrolled. For customers enrolled in a single policy, we send notices approximately one month after anniversary month of the policy. For customers enrolled in multiple policies, information is summarized in one notice and sent in the earliest month after April following the month of initial policy enrollment. In each case, customers who enrolled in policies during April or May, such information is sent in July due to dividend-related matters. For customers enrolled in multiple policies, information is summarized in one notice Notices created for each single policy Address and list of policies taken out Structure of the Nissay Insurance Accounts, fund information Policy information (Example: Whole life insurance with term insurance rider) Policy information (Example: Annuity) Lists the life and non-life insurance policies taken out. 3 Explains policy content including coverage periods and coverage amounts with easy-to-understand diagrams. 2 Notification of various financing services that are available to customers (amount of accumulated dividends, deferred insurance amount, policy loan limits, etc.). Shows the amount and interest rate in the event that policy loans or insurance premiums are reimbursed. 4 Shows existing policy and coverage content. *Customers with Nissay Insurance Accounts Card can view all the details of their entire insurance policy at our website at Special Policyholder Services (Policy Terms and Conditions Inquiry) (See p. 29.) 28

11 Information Regarding Consistent protection. Superior services. Policies that the customer is enrolled in are presented in an easy-to-understand format using color-coded diagrams. Customers can also confirm the amount of funds available, including surrender benefits and policy loan limits, as of that date. Customers with inquiries can contact their Nissay Total Partners representative or the call center. Coverage amount: The amount of claims and benefits that have been paid up to that point Coverage/Renewal period: How long you are covered for Coverage content: What are you covered for Insurance premium: How much has been paid and how much needs to be paid after policy renewal Riders that are available free of charge, introduction to procedures and their use Other Important Notices In addition to the above, Nippon Life provides a variety of notices including Certification of Life Insurance Premium Deduction, Notice of Change in Discount based on transaction and others. Each of these are important notices, so we kindly request that our customers carefully confirm the content. Information on Consistent Protection. Superior Services. Provision of Information upon Conversion of Policies When a customer is considering a policy conversion, Nippon Life explains how to review policy coverage, providing handouts and other materials as well as comparative prospectuses that describe policies before and after conversion. Through these and other materials, we make every effort to enhance the customer s understanding of important points concerning policy conversion. We ask that you take out a policy only after you have fully understood its content, terms and conditions. Confirmation of Policy Content via Internet Customers can conduct a variety of procedures on the Nippon Life website, such as confirming their policy content, changing their addresses, and conducting financial transactions, including policy loans. We are expanding the number of procedures that may be easily completed over the Internet outside of the regular business hours of Nissay Total Partners, service counters and call centers. Comparative Prospectus Procedures Inquiries regarding content of life insurance and non-life insurance policies Change of address or telephone number Change in name (some procedures for family name, etc.) Change of premium payment method (number of payments) Internet ATM Payments and withdrawals for policy loans, accumulated dividends and deferred insurance payments Repayment of policy loans Requests to change accounts through which premium transfers are made Reissue of Certification of Life Insurance Premium Deduction Registration or change of PIN number for Nissay Insurance Accounts, etc. Payment of premium after the initial premium,* etc. *Some procedures can be carried out using the Internet via mobile phones. (p. 39) 29

12 SUBMITTING INSURANCE CLAIMS AND BENEFITS In the event of hospitalization, surgery, or other unforeseen circumstances that may warrant the payment of insurance claims or benefits, the first thing to do is contact us either through your representative Nissay Total Partner or by visiting a nearby service counter or telephoning one of our call centers. To prepare for the unexpected, please confirm the terms of your policy and make sure that the insured person and the beneficiary (or designated proxy) also understand the details of the policy. (See p.28-29). In the event that you wish to submit claims for payment against more than one policy or rider, you must submit a separate claim for each policy and rider. The documents required vary according to the nature of the payment request. Therefore, please confirm that you are providing the correct forms in advance of submitting your claim. Q4 What if you have already entered a hospital or had surgery? The insured person (or designated proxy) should personally file any claim for hospitalization or surgery benefits. In the event of the death of the insured, his or her lawful heir(s) should submit the payment request. However, in the event that said heir(s) is (are) unable to submit a payment request of their own volition, a designated proxy may submit the claim. Items that must be communicated: Insurance certificate number (all certificate numbers in the case of multiple policies) Name of policyholder Name of insured Information regarding the hospitalization, surgery or outpatient circumstances *Name of person who was hospitalized, underwent surgery or received outpatient services *Reason for claim (Illness, traffic accident, other accident) *Content of claim (hospitalization, surgery, outpatient services, etc.) *Date of hospitalization and discharge *Confirmation of outpatient services following discharge (in the event that a claim is being made for outpatient benefits) *Date of injury (in the event that a claim is being made for hospitalization due to accident benefits) Q5 A relative passed away. What should I do? The beneficiary himself or herself should file a mortality insurance claim. Items that must be communicated: Insurance certificate number (all certificate numbers in the case of multiple policies) Name of deceased (insured person) Date and cause of death (name of illness in the event of death due to illness, circumstances of accident in the event of death due to accident) Name of beneficiary of mortality insurance claim, name of person filing the claim (relationship to the insured, contact information) Possession or non-possession of insurance certificate Whether hospitalized and/or had surgery before death Booklet: Receiving Payment of Insurance Claims and Benefits Nippon Life has produced a booklet explaining the procedures for Partner or from their local service counter. The booklet may also requesting insurance claims and benefits. Customers may request be viewed on our website under the section To our Policyholders copies of the booklet from their representative Nissay Total (Japanese language only, to be updated in August 2007). Contains explanations regarding insurance claims and benefits, payment request procedures and examples of circumstances in which payments may or may not be received Highlights the importance of proper disclosure of health conditions when first applying for a policy and explains the handling of cases in which Nippon Life determines that nondisclosure has occurred Details other terms and conditions that may be used as grounds for the cancellation of a policy, as well as other circumstances in which insurance claims and benefits may not be received Lists references and contact information to aid in payment request procedures and payment receipt applications 30

13 Have you completed the procedure for designating a proxy? Hospitalization benefits are generally to be applied for by the agreement and to appoint their designated proxy. Insurance premiums will not change as a result. insured person. However, in the event that the insured person is unable to request payment of his/her own volition, or in the event To complete the procedures, please bring a copy of your insurance certificate and your officially registered personal seal to your of circumstances designated by policy clauses, a designated proxy may request the payment of such benefits on behalf of the insured. representative Nissay Total Partner or local service counter. Designating a proxy entails the completion of certain procedures (Service not applicable to corporate policies) in advance. Policyholders and insured persons are asked to reach Spouse, direct descendent or sibling* listed on the family register of the insured person in the main policy Relatives within the third degree of kinship who reside with or who are listed as dependents of the insured person on the main policy *Notice in accordance with expansion of the scope of people who may be appointed as a designated proxy As of April 2, 2007, siblings who have already been appointed as the designated proxy for the insured person may act in that capacity and request payment for predefined hospitalization benefits, even in cases where the designated sibling does not reside together with the insured person or is not a dependent of the insured person. Q6 I was told that my insurance claim was ineligible for payment. What should I do? Establishment of a Cancellation Complaint Call Center and a system to deliberate on customer requests (consultation with third-party lawyers) for filing objections related to the payment of insurance claims and benefits On October 25, 2006, Nippon Life established a Cancellation Complaint Call Center for handling objections related to the payment of mortality insurance claims and hospitalization, surgery and other benefits. For customers who desire to consult with a third party, we have also established a system to deliberate on customer requests whereby we introduce these customers to lawyers outside of the Company (lawyers with whom Nippon Life has not concluded advisory agreements) for free consultations. Claims-Related Services Review Session When a customer files an objection regarding the nonpayment of insurance claims or benefits, the Claims-Related Services Review Session serves as an advisory body, reviewing the appropriateness of payment and making recommendations to payment divisions based on its findings. Two lawyers from outside the Company (besides the lawyers who advices customers via the system to deliberate on customer requests) are appointed as chair and vice-chair of this committee, which meets every month. (Established in June 2006). 31

14 STRENGTHENING THE UNDERWRITING AND INSURANCE CLAIMS AND Q7 What is the system for the regular payment of insurance claims and benefits? To provide the proper payment to claims and benefits and to gain the trust of customers, Nippon Life makes every effort to ensure the fair and appropriate assessment of policy underwriting and insurance claims and benefit settlements. Living Needs Benefits Products Pays claims and benefits to the surviving insured party when a specific disease has been contracted. Assessment of Policy Underwriting Assessment is based upon the health of the insured person. In some cases, Nippon Life secures the agreement of the applicant regarding particular conditions (higher premiums, lower coverage, exclusion of certain areas of the body from coverage, etc.) and underwrites policies under terms and conditions different from those in the original application. In some cases, Nippon Life refuses to underwrite policies. Assessment of Insurance Claims and Benefit Settlements Assessment is made based upon documents submitted at the time of the claim. Payment may be refused depending on the findings of the assessment. (Please see the table Reasons for Denial of Payments on p. 33 for further details). In light of requirements for the appropriate assessment of various medical and moral risks, Nippon Life is stepping up its training of assessment specialists and strengthening administrative systems. As demonstrated by the rising demand for living benefit products in recent years, the range of insurance products on the market is increasingly diverse, and Nippon Life will work to ensure that customers are sufficiently informed about products and payment conditions. 32 Enhancing the Training of Assessment Specialists Since fiscal 2003, Nippon Life has been constructing a structured training system for cultivating assessment specialists responsible for policy underwriting and benefit payment assessment, both essential areas of the life insurance business. We are conducting in-house examinations and providing training in essential medical and legal knowledge. We also launched the Personnel Training Project in October 2006 through which we are improving the educational curriculum and in-house certification systems. Upgrading Administrative Systems Nippon Life started up its First Underwriting System in September 2006, enabling the centralization and standardization of assessment data previously done by hand, as well as the effective management of administrative procedures. Aiming to further improve administrative quality, we are proceeding with the development of a Next-Generation Underwriting System. Moreover, we established the Administrative Development Headquarters, which is headed by the president, in October With the goal of providing customeroriented insurance services, the new department engages in focused deliberations on ways to reinforce administrative systems and service management systems. Improving Explanations to Customers In October 2006, we set up a hot line that handles grievances regarding the payment of insurance claims and benefits. For customers who desire to consult a third party, we set up a system to deliberate on customer requests whereby we introduce such customers to lawyers from outside of the Company (lawyers with whom Nippon Life has not concluded advisory agreements) with whom they can have free consultations. (See p. 31.) Furthermore, we published a booklet entitled Receiving Payment of Insurance Claims and Benefits in November 2006 that describes issues related to the payment of claims and benefits and reflecting our efforts to improve explanations to customers. (See p. 30.) Strengthening Medical Research Nippon Life established the Medical Information Department in fiscal 2005 with the aim of enhancing research in the increasingly important fields of medical and nursing care. Based upon previously compiled data and the latest transformations in the medical field, we work to develop new products suited to customer needs and to review our underwriting standards.

15 BENEFIT SETTLEMENT SYSTEM AND EXPANDED EXPLANATION Payment of Insurance Benefits and Claims Life insurance is a system whereby a large number of people participate in mutual support through insurance coverage in the event of sickness, injury or other unforeseen circumstance. During fiscal 2006, Nippon Life made 81,210 payments of insurance claims, and 611,894 payments of other benefits. In contrast, as a result of appropriate claim and benefit settlement assessment efforts, we determined that the payment of insurance claims should not be made in 2,977 cases, and that payment of other benefits should not be made in 8,536 cases. *These results are also posted on our website. Number of Policies Paid on and Amount of Payments (Fiscal 2006) (Unit: Millions of Yen, Number of cases) Insurance Claims Other Benefits Number of payments 81, ,894 Amount of payments 689, ,648 Notes:1. The above represent the total for individual and group insurance policies upon which claims were filed. 2. Figures do not include policies that require no payment assessment such as maturity benefits, survival benefits, single payments, annuities and other benefits. 3. Regarding payments for group insurance underwritten by multiple companies, the figures include policies for which Nippon Life is the lead underwriter. Number of Cases for Which It was Determined That No Payment was Warranted (Fiscal 2006) (Unit: Number of cases) Reasons for Denial of Payment Insurance Claims Other Benefits Cases of fraud 0 0 Benefit claim for illegal objectives 0 0 Cancellation of policies due to nondisclosure Cancellation due to serious matters 0 7 Categorized as an exemption Not categorized as a reason for payment 2,318 7,478 Total 2,977 8,536 Notes:1. The above represent the total for individual and group insurance policies upon which claims were filed. 2. Regarding payment for corporate insurance underwritten by multiple companies, the figures include policies for which Nippon Life is the lead underwriter. Explanation of Terms Cases of fraud Benefit claim for illegal objectives Cancellation of policies due to nondisclosure Cancellation due to serious matters Categorized as an exemption Not categorized as a reason for payment Content Policies are rendered invalid in the event that fraudulent actions were taken by the policyholder or by the insured at the time when the policy was taken out. In such cases, premiums that have already been paid shall not be returned. If a customer enrolls in an insurance policy with the intention of illegally gaining insurance benefits, said insurance policy could be invalidated. In such case, insurance premiums already paid shall not be returned. Policies may be cancelled in the event that the policyholder or the insured neglected to disclose important information that should have been disclosed, or disclosed false information at the time when the policy was taken out, whether intentionally or by gross negligence. In such cases, surrender benefits shall be returned to the policyholder. Policies shall be cancelled in the event that accidents are caused intentionally for the purpose of fraudulently obtaining insurance claims, or in the event of fraudulent acts, such as the falsification of diagnosis forms to support a request of payment. In such cases, surrender benefits shall be returned to the policyholder. Nippon Life may determine that the content of a claim falls in the category of an exemption under the terms and conditions of the policy. Examples: A claim for death benefits following a suicide by the insured during the prescribed non-payment period. A claim for benefits following an accident caused intentionally by the policyholder or beneficiary or following an accident caused by the insured s criminal activities. Nippon Life may determine that a claim does not qualify as a reason for payment under the terms and conditions of the policy. Examples: A claim for hospitalization benefits after a hospitalization of less than five days, while the terms of the policy attach a rider for hospitalization benefits in the event that hospitalization is for a period of five days or more A claim for surgical benefits following the removal of the tonsils, which does not fall into the category of procedures eligible for coverage 33

16 INSURANCE CONSULTATION AND INQUIRIES Q8 What do I do when I don t understand something about insurance or otherwise have trouble? Nippon Life is continually developing a variety of service channels to match customer needs. There are personnel readily available to consult with customers on a range of issues. Inquiries about insurance may be directed to Nissay Total Partners (sales representatives) or by contacting an agency. Our representatives provide consultation and help to customers for everything from finding products that match their lifestyle needs to policy enrollment and amendment procedures and how to file for insurance claims and benefits. Nippon Life is always ready to offer customers any assistance needed. Life Plazas and branch service counters provide consulting services. In addition to consulting on a range of procedures, our Life Plazas present regular seminars regarding public pensions, post-retirement asset investment, tax services, inheritance and other topics. We offer a range of highly specialized consulting services to match customer needs. Our trained operator will be waiting to assist you at our call center. We are also expanding services available via the Internet, providing information about Nippon Life and our products. Through this service, customers may request materials as well as access information regarding their policies, take out loans and withdraw accumulated dividends. We hope you will make full use of our Automatic Phone Services and ATMs. We will continue to expand our network of sales representatives to cover customers throughout Japan, while working to create new service channels in response to diversifying customer needs. We invite you to contact your nearest Nippon Life sales representative. Ordinary procedures/request for visit/consultations/other requests Nissay Total Partners (Sales representatives) p. 35 Agencies p. 36 Customer Execute procedures independently/consultation/other requests (Participation in seminars) Execute procedures independently/consultation/other requests Life Plazas, Branch service counters p. 37 Call center p. 39 Procedures, consulting, etc. Requesting materials, procedures, consulting, requests for visits from sales representatives, etc. Providing more precise consulting services by promoting links with Nissay Total Partners Execute procedures independently/collect information Internet p. 39 Providing information, requesting materials, procedures, inquiries about policy terms and conditions, etc. Execute procedures independently Automatic Phone Services & ATMs p. 39 Take out policy loans, withdrawing accumulated dividends, etc. 34

17 Q9 Who are the Nissay Total Partners? Nissay Total Partners (Sales Representatives) Nippon Life has a network of approximately 49,000 Nissay Total Partners (sales representatives) at 110 nationwide branches and 1,656 offices that serves 50 million households and 100,000 offices. Through this network, Nippon Life is able to respond to the needs to each and every one of its customers throughout Japan. Nissay Total Partners seeks to visit every customer at least once a year to help them with a variety of policy-related procedures and provide them with the information they need. We are also striving to enhance the abilities of personnel in order to provide precisely tailored consulting services. We encourage our Nissay Total Partners to obtain national certifications from the Ministry of Health, Labour and Welfare as financial planners as well as Japan Association of Financial Planners certification (AFP certification). These certifications require in-depth knowledge of not only life insurance, but also financial products, real estate, taxation and inheritance. The number of Nissay Total Partners that had obtained certification as of April 2007 was 9,150, the largest number in the industry. Furthermore, we have equipped all Nissay Total Partners with Duo mobile consulting terminals that feature precise sales support and consulting functions, making full use of our expanding IT infrastructure as we develop a system to enable Nissay Total Partners to respond to customer expectations on the spot. Education of the Nissay Total Partners Through personal one-on-one consulting, Nissay Total Partners work to assist customers regarding all of their insurance needs, from recommending and reviewing insurance plans to the payment of insurance claims and benefits. Nippon Life places a special emphasis on in-depth training in after-sales service. Nissay Total Partners Nippon Life sales representatives are referred to as Nissay Total Partners. This title embodies the concept of total service and total support for customers and their families Financial Planner (FP) A financial planner is a specialist that analyzes a customer s situation, including insurance, assets, liabilities, composition of income and expenditures, and number of family members. When necessary, he or she seeks the support of attorneys, tax accountants, and various other specialists in such fields as insurance and real estate. Based on the analysis, the financial planner helps the customer create and implement a comprehensive plan, including tax strategies, insurance plans, investment strategies, and savings plans to enable the customer to reach their lifeplan goals. Strengthening Our Training of Human Resources That are Integrated with Sales Offices, Branches and Headquarters Sales offices: Model employees are given responsibility for the education of employees who have been with Nippon Life for less than two years and work together with the general managers of sales offices to lead basic insurance knowledge training, role-playing activities and compliance education programs. Branches: Personnel specialized in education work at the Training Center. In addition to product knowledge and practical training in sales and payment administration, they accompany trainees on customer visits and provide support to employees responsible for the education of new employees. Headquarters: Intensive training is given to regular employees in advanced consulting techniques, and leadership training is conducted in areas such as coaching of employees responsible for education. Mobile Terminals for Consulting (Duo) Training Education and Training Curriculum for Fiscal 2007 Join company First year Second year Third year and thereafter Pre-test training (general course) Basic education necessary for insurance sales and after-sales service Business manners Life insurance basic information Nissay insurance product information Basic knowledge of payment-related matters Compliance Practical sales training (role playing) Basic sales training Customer service training Sales activity training in local areas/worksites Education for payment-related matters Knowledge acquisition Public pension system Public medical insurance system Competitors products Securities assessment Advanced consulting training Course to prepare for advanced certification course Sales education and training for assigned areas Industry-wide test preparation courses Gain knowledge of specific fields including AFP/taxes/nonlife insurance education Total service (non-life insurance) education All-employee general knowledge/information education (watching NICE-NET programs learning material role playing) Education utilizing internal satellite broadcast system (NICE-NET) 35

18 Q10 What are agencies? Nissay Agency System The number of agencies handling life insurance has grown rapidly following revisions to the Insurance Business Law in 1996 that allowed agencies to handle both life and non-life insurance. In addition, with the introduction of a system of independent life insurance agencies, which formerly acted as exclusive agents of single insurance companies, we are endeavoring to increase customer convenience by making it possible for customers to get information on various life insurance companies products from a single agency. Accordingly, we opened the Nissay Agency System in fiscal Agencies Forming agency consignment agreements, we have developed a network of 7,282 agencies, (a year-on-year increase of 357 agencies) centered on tax accountants; professional life and non-life insurance sales agencies; and major financial institutions and their related agencies throughout Japan as of March 31, Agencies consult on such topics as business transfers, executive retirement benefits and succession, mainly for sole proprietorships. In addition to this, in autumn 2002, we began to offer individual variable annuities at the service counters of financial institutions, making it possible for customers to receive advice related to various products and services, including asset formation and retirement coverage, at the service counters of local financial institutions. Aiming to respond to a wider range of customer needs, we are making an effort to expand our sales support system for agencies and strengthen their compliance system by offering numerous types of educational materials and programs, utilizing the Internet, and posting over 460 agency personnel at 81 locations throughout Japan. Agency Education Program A-Net (Nissay Agency Net) This is an Internet-based system that makes it possible for agencies to create the most appropriate proposals based on customer needs by accessing the Nissay Agency website. In addition to the function for creating proposals, there are various reference menus that are useful for agencies. STEP 1 Orientation (Explanation of the content of the agency s business) Agency business overview Nippon Life overview STEP 2 Industrywide training (Training before and after registration) Product training Policy sales practical training Compliance training STEP 3 Monthly training FP basics Compliance training STEP 4 FP training (Executive retirement benefits, treasury stock, inheritance tax law, lifetime transfer of wealth, etc.) Hold agency training 36

19 Q11 Is it true that I can enroll in insurance at the bank or credit union? Life Insurance Sales at the Service Counters of Financial Institutions Through an agency agreement forged with banks, credit unions and other financial institutions, Nippon Life sells individual annuities, such as the My Dream Plus, and single-payment whole life insurance, such as Long Dream, through the service counters of these institutions. Once you have enrolled in a policy, you are able to access us through the dedicated call centers of the participating financial institutions product sales counters. Call centers enable us to provide such after-sales service as handling customer inquiries about policy content and account status and processing insurance claims and benefits. In addition, we can provide a wide array of other in-depth services for customers. Nippon Life is working hard to improve the education and training of insurance sales-related personnel at these institutions as well as to strengthen their compliance systems. Products Sold at Financial Institution Service Counters and Financial Institutions Handling these Products (as of April 2, 2007) Variable amount annuities Number of Type of product Product Name Financial Institutions Handling Products Dream Select variable amount annuities (standard type), etc 24 Dream Select (balanced type), etc 108 Fixed amount annuities My Dream fixed amount annuities 139 Single-payment whole life insurance Long Dream single-payment whole life insurance, etc 102 Q12 Are there consultation counters at Nippon Life? Customer Service Counters We have established customer service counters, which handle all insurance-related procedures, provide consultations and respond to a wide-range of customer requests, in 89 locations throughout Japan. Approximately 760,000 customers visit these counters annually. As they constitute the face of Nippon Life, these counters aim to provide reliable service in order to gain customer trust. Toward that end, we are working to enhance the consulting ability of representatives, providing training and testing to expand their financial planning knowledge and to foster the receptiveness needed to offer quality service. In the years ahead, we will continue to provide useful information to customers and meticulously meet their individual needs. Nissay Life Plaza Consulting 37

20 Nissay Life Plazas There are Nissay Life Plazas in 48 locations throughout Japan. These customer service counters meet a wide range of advanced customer needs, including consulting related to taxation, asset investment, medical insurance, nursing care insurance and investment-type annuities, while handling insurance related procedures and providing insurance-related advice. In addition, Nissay Life Plazas hold free seminars on various topics, provide tax accounting advice (in some locations), and, if desired by the customer, a staff member will visit a customer at home or another place for consulting, in addition to providing various other services. (Some locations provide services on Saturdays.) Keihan Ikeda Sapporo Umeda Head office Tennouji Fuse Kawagoe Omiya Kashiwa Sakai Life Plazas Around Osaka Sendai Ikebukuro Kichijoji Ueno Funabashi Tachikawa Shinjuku Marunouchi Machida Shibuya Chiba Shinagawa Kawasaki Toyama Utsunomiya Nagano Gunma Mito Yokohama Shonan Kitakyushu Fukuoka Hiroshima Okayama Kobe Tokushima Kyoto Nara Gifu Nagoya Numazu Hamamatsu Kariya Shizuoka Life Plazas Around Tokyo Kumamoto Nagoya-ekimae Kagoshima Branch Service Counters Branch service counters have been established at 41 locations throughout Japan. These customer service counters provide services especially geared toward their particular regions while meeting immediate customer needs, such as handling insurance-related procedures, consulting, explaining policy content and assessing coverage. 38