GROUP INSURANCE PRODUCER AGREEMENT

Transcription

1 GROUP INSURANCE PRODUCER AGREEMENT PRODUCER AGREEMENT PART I This agreement ( Agreement ) is made between Hartford Life and Accident Insurance Company, Hartford Life Insurance Company, and Hartford Fire Insurance Company, Connecticut corporations (individually and collectively, The Hartford ) and the Producer identified in Part III of this Agreement (hereinafter the Producer ). WHEREAS, the Producer is appointed by The Hartford to solicit the sale of certain insurance products to prospective policyholders of The Hartford, and to provide sales related services to existing policyholders for which the Producer is listed as the Producer of Record ; and WHEREAS, The Hartford will pay Commissions and, if applicable, Contingent Commissions to Producer on Premiums paid to The Hartford on certain group insurance policies sold by the Producer or for which the Producer is recognized as Producer of Record; NOW, THEREFORE, in consideration of the conditions and the mutual promises contained herein, the parties agree as follows: SECTION A. DEFINITIONS Agreement means this Producer Agreement. Commissions are the basic form of compensation payable by The Hartford to the Producer on Premiums paid on certain group insurance policies upon applications secured by the Producer while this Agreement is in force, in accordance with Schedule of Commissions Part II and appended Schedules. Contingent Commissions are any form of discretionary payment payable to Producer pursuant to any incentive program(s) that The Hartford shall, in its sole discretion, declare to be in effect. Such compensation has as its purpose the promotion of growth and retention of profitable business by the Producer, and may be based on such factors as the maintenance of in force business, growth in Premiums, overall profitability, and threshold requirements. Coverage Line shall mean specific types of insurance coverage as listed in Schedule of Commissions -- Part II and appended Schedules A, B, and J. Flat Commission is a negotiated base Commission payable on certain specific Policies described in Schedule C of Part II of this Agreement. The Flat Commission is payable in lieu of the Commissions described in Schedules A and B of Part II. Group Policy shall mean the master policy contract issued by The Hartford to the Policyholder (and not the individual certificate or statement of coverage issued to the Insured) providing the Coverage Lines shown in Schedule of Commissions -- Part II

2 Insured shall mean the individual eligible for, and properly enrolled for, coverage under a Group Policy. New York Statutory Disability Policy shall mean an insurance policy providing benefits which satisfy the requirements of the non-occupational short term disability benefit law of New York. Policyholder shall mean the legal entity to which a Group Policy is issued, or the entity with which an administrative services only agreement has been executed. For NY Statutory Disability Policies, the term Policyholder shall mean the entity in whose name an insurance policy is written and/or the aggregate of those individuals who are associated by some form of relationship other than group insurance and whose premiums and losses are combined for experience rating purposes. Policy Year shall mean a one (1) year period commencing as of the original effective date of, or anniversary of the effective date of, or renewal date of, the Group Policy. Premiums are payments received by The Hartford from Policyholders or Insureds on Group Policies in force. Premiums are due as of the first day of each month. Producer is an individual or entity appointed by The Hartford to sell the insurance products identified in Part II of this Agreement and to provide sales related services to existing Policyholders. Producer of Record is the Producer on a given Policy who has been identified by the Policyholder as the Producer authorized to service that Policy, as reflected on the official records of The Hartford. The Producer of Record can be changed upon the written request of the Policyholder and the approval of The Hartford. The effective date of any such change shall generally be as specified by the Policyholder; however, The Hartford reserves the right to determine the effective date of the change if prompt notice of the Producer of Record change is not received from the Policyholder. SECTION B. TERMS OF AGREEMENT By executing Part III (Declaration Page) of this Agreement, the Producer agrees as follows: A. That this Agreement supersedes any previous agreement, written or oral, or course of dealing, with respect to Commissions and Contingent Commissions payable under this Agreement to the Producer regarding the Group Policies issued or renewed on or after the Effective Date. By executing the Agreement Producer understands and agrees to the terms and conditions of this Agreement. If Producer does not sign this Agreement, Producer understands that any submission for a request for quote from The Hartford, any request for appointment with The Hartford and/or acceptance of Commissions and/or Contingent Commissions paid by The Hartford shall constitute Producer s consent to the terms and conditions of this Agreement. B. To obtain, and maintain in-force while this Agreement is in effect, all state licenses required to transact the sale and solicitation of insurance relative to the Group Policies, and to provide current copies of such licenses promptly upon renewal to The Hartford s Simsbury office, attention License Renewal Department

3 C. To render such reasonable service and effort as may be required to maintain the Group Policies inforce with The Hartford. D. To review and abide by The Hartford s policies and procedures applicable to Producers, as announced from time to time and accessible to Producer on The Hartford s ProducerView online informational source. E. To abide by all laws and regulations, local, state and federal, which apply to the conduct of, and/or the services to be rendered by, the Producer, including, without limitation, ERISA and all laws and regulations governing the solicitation and sale of insurance and the acceptance, reporting and/or disclosure of compensation. In addition, to the extent that the Producer voluntarily wishes to disclose the existence and/or terms of this Agreement to Policyholders and prospective Policyholders, such disclosure is expressly permitted. If you are receiving compensation from a Policyholder and The Hartford for the placement or service of a policy, you must disclose to the Policyholder before the sale that you are receiving compensation from The Hartford, including your eligibility for Contingent Commissions, if applicable. F. To submit to The Hartford s Simsbury office, attention Marketing Department, for The Hartford s written approval, all advertisements, circulars and other materials intended for publication by the Producer in the sale, solicitation, and marketing of the Group Policies and certificates of coverage under the Group Policies before being printed or released. G. To promptly refund any Commissions and/or Contingent Commissions that have been overpaid or that have been paid on Premiums that have been refunded (excluding experience rating refunds). Payment of any Commissions or Contingent Commissions hereunder shall be subject to, and may be offset against, any indebtedness of the Producer to The Hartford or to any of its parent, affiliate or subsidiary corporations. H. That the Commissions payable in accordance with this Agreement are subject to deduction of amounts paid by The Hartford in connection with Group Policies to joint Producers, Sub- Producers, and/or resident licensed Producers in states that require the countersignature by, or the effectuating of the insurance through, a resident licensed Producer, Agent, or Broker. I. That The Hartford, before or after the termination of this Agreement, will pay Commissions and/or Contingent Commissions strictly in accordance with all applicable local, state and federal laws. J. That the Commissions and/or Contingent Commissions payable hereunder cannot be assigned without the written consent and approval of an authorized officer of The Hartford. K. That this Agreement will terminate automatically as of the earlier to occur of the following dates: 1) The date the Producer is convicted of any fraudulent or criminal act involving the Producer s relationship with The Hartford, any Policyholder, or any Insured under any Group Policy. 2) The date the Producer fails to maintain in-force, for any reason, any Producer or broker license required to transact the solicitation and sale of insurance relative to Group Policies

4 3) The date the Producer s appointment by The Hartford is revoked, provided such revocation is for breach of this Agreement or other good cause shown. 4) The date of the Producer s death. L. That this Agreement may be terminated without cause by either party hereto by mailing to the other party, at its last known address, thirty (30) days notice in writing. M. That The Hartford may terminate this Agreement immediately for cause. For the purposes of this Agreement, the term "for cause" means any fraud or material misrepresentation or violation of any term of this Agreement by Producer. N. In no event shall The Hartford, upon termination of this Agreement, have any obligation to pay to the Producer any Commissions or Contingent Commissions on premiums due and payable after the date of termination. O. That The Hartford may amend the terms of this Agreement in writing at any time with thirty (30) days advance written notice to Producer. Further, that The Hartford may upon written notice to Producer, immediately amend or terminate this Agreement if, in its sole discretion, The Hartford determines that as a result of a change in law, regulation or government agency directive, this Agreement, or any portion thereof, is contrary to or in conflict with such law, regulation or directive. P. That The Hartford may change the Schedule of Commissions -- Part II, and attached Schedules at any time by giving the Producer at least thirty (30) days advanced written notice, but such a change shall not affect Commissions payable on Group Policies in-force prior to the date of such change. Q. That The Hartford may introduce, modify, discontinue or reintroduce any program of Contingent Commissions, including any currently existing program of Contingent Commissions, by giving the Producer at least thirty (30) days advanced written notice. R. That it acknowledges and understands that it is The Hartford s policy not to accept any last look opportunity that is not also provided to other insurance carriers. Consequently, the Producer agrees that it will not provide The Hartford with the opportunity to make a best and final offer unless the Producer also provides other insurance carriers with the same opportunity. S. That this Agreement shall be construed according to the laws of the State of Connecticut

5 PRODUCER AGREEMENT PART II Schedule of Commissions HARTFORD LIFE INSURANCE COMPANY HARTFORD LIFE AND ACCIDENT INSURANCE COMPANY HARTFORD FIRE INSURANCE COMPANY Eligibility for Commissions: Producer shall be eligible to receive Commissions on a Policy when Producer is Producer of Record on that Policy at the time the Premium is due; however, Commissions are not payable until any due Premium is received by The Hartford. If Producer accepts commission on their own Policy, Producer warrants that they have complied with all applicable federal and state laws and regulations. Group Benefit Policies: The following Schedules of Commissions apply to new business sold by a Producer under this Agreement while the policies are in-force and the Producer is recognized to be the Producer of Record for the following products: Schedule A -- Life, Accidental Death & Dismemberment, Short Term Disability (including California and Hawaii Statutory Disability), Long Term Disability, and Small Business Solutions (SBS) Policies when the Producer is eligible to receive Commissions under the Standard scale. Schedule B -- Life, Accidental Death & Dismemberment, Short Term Disability (including California and Hawaii Statutory Disability), Long Term Disability, and Small Business Solutions Policies when the Producer is eligible to receive Commissions under the Top Producer scale. Schedule C -- Life, Accidental Death & Dismemberment, Short Term Disability, Long Term Disability, and Small Business Solutions Policies when the Producer has negotiated a Flat Commission in lieu of any Commission otherwise payable under Schedules A or B. Schedule D Physician Segment business Schedule E Accident Underwriting Products Schedule F Group Retiree Health business submitted directly to The Hartford by Producer Schedule H New York Statutory Disability Schedule I New Jersey Statutory Disability Schedule J - VIP Producer Rewards Program: Producer may be entitled to receive additional compensation in the form of bonuses for growth in new sales and/or for retention of business. See Schedule J for eligibility requirements and details. Schedule K Compensation for sale of Non-Insurance Products and Services Schedule L Compensation for Medicare Policies Sold in the State Of Washington - 5 -

6 PRODUCER AGREEMENT PART III [Declaration Page] HARTFORD LIFE INSURANCE COMPANY, HARTFORD LIFE AND ACCIDENT INSURANCE COMPANY and HARTFORD FIRE INSURANCE COMPANY Please sign both copies of this Producer Agreement-Part III. Return one fully executed original to The Hartford. Retain one original along with the Producer Agreement (Part I) and the Schedule of Commissions (Part II, and attached Schedules) for your files. Declarations I understand that this Declaration Page (Producer Agreement-Part III), together with the Producer Agreement (Part I), the Schedule of Commissions (Part II), and any Exhibits to be added to Part II Schedules documenting special commission arrangements on individual policies, constitute the entire Producer Agreement between the Producer and The Hartford. I have read and understood the provisions of this Producer Agreement. I understand and agree that this Producer Agreement supersedes any previous agreement, written or oral, or course of dealing, between The Hartford and Producer and shall apply to Group Policies (including new Coverage Lines issued on in-force Group Policies), initially placed with or renewed with The Hartford on and after the Effective Date hereof. I understand and agree that pursuant to Part I Provision E of this Agreement, I will disclose Commission and Contingent Commission information to Policyholders as required by applicable laws and regulations and, further, that if I receive compensation from a Policyholder and The Hartford for the placement or service of a policy I must disclose to the Policyholder before the sale that I am receiving compensation from The Hartford, including my eligibility for Contingent Commissions, if applicable. By executing the agreement below, I understand and agree to the terms and conditions of this Agreement. If I do not sign this Agreement, I understand that my submission for a request for quote from The Hartford, my request for appointment with The Hartford and/or acceptance of Commissions and/or Contingent Commissions paid by The Hartford shall constitute my consent to the terms and conditions of this Agreement. Producer executing this Agreement is (please check one): [ ] An individual, partnership, or LLP. Please enter SSN - - Please enter name [ ] A corporation or LLC. Please enter firm TIN - Please enter firm name Accepted for the Producer by: Print Name Accepted for Hartford Life Insurance Company, Hartford Life and Accident Insurance Company, and Hartford Fire Insurance Company by: Print Name Dana S. MacKinnon Signed Signed Title Title Vice President February 11, 2013 Date Date Form Number GR-PA

7 SCHEDULE A STANDARD COMMISSION SCHEDULE for GROUP LIFE/AD&D, STD AND LTD PRODUCTS, including SBS POLICIES and CALIFORNIA and HAWAII STATUTORY DISABILITY POLICIES The applicable Schedule of Commissions shall be determined as of January 1 of each year. Commissions shall be paid in accordance with the following Schedule until such time as the Producer qualifies to receive Commissions in accordance with Schedule B Top Producer Commission Schedule. Coverages written on a Flat Commission basis, as described in Exhibit C and its attachments, will not be considered under Schedule of Commissions A or B. Included Coverage Lines: For purposes of calculating the amount of Commission payable, each of the following shall constitute a separate Coverage Line: a)life Insurance (basic life, dependent life, retiree life, supplemental life and accidental death and dismemberment or any combination thereof); or b)a short-term disability Insurance contract (including California, Hawaii and New Jersey statutory plans) or administrative services only contract; or c)a long-term disability Insurance contract or administrative services only contract. Excluded Coverage Lines: For purposes of this Schedule, Small Business Solutions policies, and reserve buy-out premiums are not included as Lines of Coverage. Commission Rates: Annual Premium Intervals Commissions-All Years on the first $ 15, % on the next 10, % on the next 25, % on the next 1,950, % over 2,000, % The applicable rate of Commission will be applied separately to each Coverage Line if there is more than one Coverage Line issued under a single Policy. The above commission rates do not apply to reserve buy-out premium.

8 SCHEDULE B TOP PRODUCER COMMISSION SCHEDULE for GROUP LIFE/AD&D, STD and LTD PRODUCTS, including SBS POLICIES and CALIFORNIA and HAWAII STATUTORY DISABILITY POLICIES Eligibility -- Producer will qualify to earn Commissions in accordance with this Top Producer Schedule of Commissions when the Producer s total in-force book of business with The Hartford meets both the minimum number of Coverage Lines and the corresponding Annual Premium Equivalents indicated below. In addition, Producer will continue to qualify to earn Commissions in accordance with the Top Producer Schedule only if Producer continues to meet the following criteria. NUMBER OF COVERAGE LINES ANNUAL PREMIUM EQUIVALENTS 10 and at least $1,000, and at least $ 750, and at least $ 500, with No minimum requirement Included Coverage Lines: Each of the following shall constitute a separate Coverage Line: a) Life insurance (basic life, dependent life, retiree life, supplemental life and associated accidental death and dismemberment or any combination thereof); or b) A short-term disability insurance contract (including California, Hawaii and New Jersey statutory plans) or administrative services only contract; or c) A long-term disability insurance contract, or administrative services only contract; or d) A Business Travel Accident insurance contract with $2,500 or more of premium; or e) A Group Retiree Health Insurance contract (excepting trust business), but only when the business was submitted directly to The Hartford by the Producer. Excluded Coverage Lines: For purposes of this Schedule, New York statutory disability policies, Small Business Solutions policies, any policy with less than 10 lives, Blanket Line coverages, and reserve buy-out premiums are not included as Lines of Coverage. Commission Rates: Producers who meet the above requirements shall be eligible to receive commissions as follows: ANNUAL PREMIUM INTERVALS COMMISSIONS-ALL YEARS on the first $ 15, % on the next 10, % on the next 25, % on the next 50, % on the next 50, % on the next 1,850, % over 2,000, % 1 of 2

9 The above commission rates apply to Group Life including any AD&D riders, STD and LTD policies, including SBS policies. They do not apply to any products whose Commissions are described on other Schedules. The applicable rate of Commission will be applied separately to each Coverage Line if there is more than one Coverage Line issued under a single Policy. The above Commission scale does not apply to reserve buy-out premium. Qualification Periods Initial qualification for the Top Producer scale is determined based on total Coverage Lines and associated Premium as of 1/31 annually. Such determination will be made by April 30 annually, and commissions will be adjusted back to February 1 on premiums received during that period. Qualification will also be reviewed quarterly during the year, at such times of The Hartford s choosing, and the Top Producer scale will be payable on premiums received after the processing date of the change. Participation -- Participation in the Top Producer Commission Scale is voluntary on the part of the Producer, even if Producer meets all requirements for eligibility set forth in this Agreement. Producer may, with 30 days written notice to The Hartford, decline to participate in the increased Commissions under this Schedule, electing to receive Commissions in accordance with Schedule A Standard Commission Schedule. Flat Commissions -- Only coverages sold with standard scale Schedule A commissions may become eligible for payment under the Top Producer Schedule. 2 of 2

10 SCHEDULE C -- FLAT COMMISSIONS for GROUP LIFE, STD, LTD and AD&D PRODUCTS, including SBS POLICIES The policy types listed above may be sold with a modified, negotiated, Commission arrangement, as described in the case proposal. On these policies, Producer is entitled to the negotiated Commissions, as shown on the case proposal and/or The Hartford s electronic data systems, in lieu of any Commissions otherwise payable in accordance with Schedule A and B of this Producer Agreement.

11 SCHEDULE D PHYSICIAN SEGMENT BUSINESS Physician Segment Business: The following Physician Segment policies were offered effective May 1, 2006: Lines of Coverage Annualized Premium Commission Rate Basic & Supplemental Life, 0- $500,000 10% of premium STD, and LTD; per line $500,001 and above 7% of premium Voluntary Life and Voluntary AD&D all 10% of premium Groups effective prior to 6/1/2006: Groups which remain in force with The Hartford after June 1, 2006 will generate the following commissions: Product See below Policy Numbers Special Risk ADD Commission Rate Schedule D (below) with exceptions Variable Commissions, as previously established. Flat rates as identified in Schedule C The following Schedule applies to those Group coverages described in the preceding table to which Commission Schedule D applies: Up to $500,000 of Annualized Premium (per coverage line) Annualized Premium exceeding $500,000 (per coverage line) Basic & Supplemental Life Flat 9 % LTD Flat 10 % STD Flat 10 % > $500,001 to $750,000 Flat 7 % > $750,001 to $1 Million Flat 6.5 % > $1 Million Flat 6 % Voluntary Life Flat 12 % Voluntary ADD Flat 11 % Variations from the preceding commission scales may occur with the prior approval of The Hartford.

12 SCHEDULE E COMMISSIONS on ACCIDENT UNDERWRITING PRODUCTS Business Travel Accident -- 15% of premium unless otherwise established by The Hartford Blanket Lines -- 15% of premium unless otherwise established by The Hartford SCHEDULE F COMMISSIONS on GROUP RETIREE HEALTH PRODUCTS Group Retiree Health Group Retiree Health products may be sold with a modified, negotiated commission arrangement as described in the cover letter attached to the case proposal. On these policies, Producer is entitled to the negotiated commissions as shown on the case proposal and/or The Hartford s electronic data systems. NOTE: Commissions are payable to Producers under this Agreement only on business submitted directly to The Hartford by the Producer, without the involvement of any third party administrator or other intermediary in the sale.

13 SCHEDULE H COMMISSIONS AND BONUSES on NY STATUTORY DISABILITY APPLICABILITY This Schedule applies exclusively to policies providing benefits that satisfy the requirements of the non-occupational short term disability benefit law of New York. ELIGIBILITY The provisions of this Schedule do not apply to certain Producers who are required to submit their NY Statutory Disability new business through another Producer contracted with The Hartford. Commissions on NY Statutory Disability new business submitted by such Producers will be determined between those Producers and communicated to The Hartford at the time the case is submitted. Such commissions can be changed from time to time upon agreement between the Producers subject to the approval of The Hartford. None of the provisions described below in this Schedule H shall apply to such Producers or their NY Statutory Disability business. COMMISSIONS Except as provided in Eligibility, above, compensation payable on a NY Statutory Disability Policy, including any Commissions, bonuses, or service fees, are described in Addendum A to each Policy application, a copy of which is attached hereto and forms a part of this Agreement. COMMISSION LEVELS Producer will qualify for one of the three Graded Commission Schedules shown in Table II, below. Which Graded Commission Schedule will be applied to business for any given calendar year will be determined by applying the information in Addendum A to the criteria in Table I. Addendum A reports the following: A. number of cases that were in-force as of September 30 immediately preceding that calendar year, including the entire block of DBL cases in-force as of the effective date of this DBL Commission and Bonus Agreement if the Producer elected on the DBL Election Form to transfer them to this DBL Commission and Bonus Agreement; and B. annualized premium for those cases based upon the 12 month period ending on the September 30 immediately preceding that calendar year. The Graded Commission Level applicable in any one calendar year applies only for that calendar year. The Graded Commission Level for each subsequent calendar year will be determined by annual application of the information in the most recent Addendum A to Table I. The most recent Addendum A will be delivered to the Producer by December 31 of each year. The Graded Commission Level applicable for any given calendar year will apply to all new and in-force business listed on Addendum A during that calendar year. Table I -- COMMISSION QUALIFICATION Number of Cases OR Annualized Premium Graded Commission Level Up to $100,000 18% Producer $100,001 - $250,000 22% Top Producer* 251 or more $250,001 and over 25% General Agent* *A Producer must have at least 5 cases to qualify for this level. 1 of 5

14 A Producer may request a reevaluation of the Graded Commission Level at any point during the year if the Producer brings a single block of new New York Statutory Disability Policies to The Hartford. A block means at least 150 cases or at least $250,000 in annualized premium. Producer must submit all the applications for the block at the same time. The Hartford will evaluate the new business in addition to the existing in-force business to determine for which Graded Commission Level the Producer qualifies. Case count and annualized premium for the twelve month period ending three months prior to the submission date will be used for purposes of this evaluation. The appropriate Graded Commission Scheduled from Table II will be determined by applying these values to the criteria in Table I. If Producer qualifies for a different level, the change in the commission level will be retroactive to the date the block became effective with The Hartford. GRADED COMMISSION SCHEDULES For any given calendar year, the commission percentages applicable to the Addendum A list of cases will be as indicated in Table II, based upon the Producer s Graded Commission Level for that calendar year. Table II -- GRADED COMMISSION SCHEDULES Annual Premium Intervals Producer Top Producer General Agent $5,000 or less 18.0% 22.0% 25.0% $ , % 14.0% 16.0% $10,001 25, % 12.0% 12.0% $25,001 50, % 9.0% 10.0% $50, , % 5.0% 6.0% $100, , % 2.0% 3.0% $250, , % 1.0% 1.0% $500,000 or more 0.5% 0.5% 0.5% The Graded Commission Schedule stated on Addendum A will be effective the first of the month following the date: A. This Producer Agreement is signed; and B. production requirements are met, if any, With respect to all policies to which it applies. The Graded Commission Schedule for all subsequent calendar years will be the Graded Commission Scheduled stated on Addendum A revised and sent to the Producer. NEW YORK STATUTORY DISABILITY (DBL) PRODUCER REWARDS PROGRAM The purpose of this section is to describe Additional Compensation to be paid to Producer upon meeting the criteria described in this Schedule H. Effective February 1, 2012, this Schedule replaces any Schedule H describing any Producer bonus program previously attached to this Producer Agreement. I. Definitions: Additional Compensation - is any payment made to Producer after Producer has met or exceeded the minimum required production requirements and persistency requirements defined in this Schedule. Annualized Premium - is The Hartford s calculation of the amount of Fully Insured Premium expected to be received in the first 12 months that a given Policy is in force. 2 of 5

15 Beginning In Force Premium the total of Fully Insured Premium for which the Producer is listed as Producer of Record in The Hartford s records as of the day immediately preceding the start of any Program Period. Producer of Record changes which occur during the Program Period will result in removal of the case for Producers Beginning and Ending In Force Premiums. Capped Premium is that portion of the total Fully Insured Premium attributable to a given case (customer) on which a bonus payment may be made. The cap applicable to a given case varies based on consideration of new or in force business. Ending In Force Premium is the total of Beginning In Force Premium for which the Producer is listed as Producer of Record in The Hartford s records, less cancellations of that Premium during the Program Period. Producer of Record changes which occur during the Program Period will result in removal of the case for Producers Beginning and Ending In Force Premiums. Fully Insured Premium is Group insurance payments received or expected to be received from the Policyholder on Lines of Coverage that are also within the definition of Qualifying Business. Line of Coverage - New York Statutory Disability (DBL) New Business - is an insurance policy that was not in force with The Hartford in the year preceding the Program Period, produced either through the Producer or any other source. If a change to the Producer of Record is made during the Program Period, the original selling Producer listed in The Hartford s records retains the right to receive New Business credit for purposes of this Schedule for the remainder of the Program Period. Premium Persistency is calculated by dividing Ending In Force Premium by Beginning In Force Premium. Program Period is the term of each bonus eligibility period. Each annual Program Period runs from February 1 through the following January 31. Qualifying Business - is Fully Insured New Business or Fully Insured in-force business that meets all of the following criteria: a) Separate employee groups covered by an eligible Line of Coverage; and b) With Fully Insured Premium, (including experience rated and non-experience rated policies); and c) Producer is recognized by Policyholder and The Hartford as the Producer of Record; and Producer is directly receiving commissions from The Hartford, or consulting fees from the Policyholder, relating to the Lines(s) of Coverage, on the effective date of the sale for New Business or at the beginning of the Program Period (see definition of Beginning In Force Premium, section I) for in-force business, and at the close of the Program Period. If the Producer s portion of the case commissions is less than 100%, the case credit for any qualification or payment will be reduced to the percentage owned. Qualifying Premium - is Annualized Fully Insured Premium on New Qualifying Business (not including in-force business) effective during the Program Period. II. New Sales Bonus A. Definition A New Sales Bonus is that portion of the Additional Compensation payable on Qualifying Premium for New Business produced during the Program Period. 3 of 5

16 B. Production Requirements To become eligible for a New Sales Bonus, Producer shall place Qualifying Premium on New Business during the Program Period, and maintain that business in force through the last day of the Program Period. Producer must meet one of the following requirements: At least $25,000 of Qualifying Premium on New Business, OR At least 5 new Lines of Coverage and at least $12,500 of Qualifying Premium on New Business. C. Payment Rates After Production Requirements described in II B, above, are met, Producer will receive: Annualized Cumulative Capped Fully Insured Payment Rate DBL Premium $250,000+ 3% $50,000 to $249,999 2% $49,999 1% For purposes of this calculation, New Business Premium shall be capped at $250,000 per case. D. Payment Producers who qualify for payments as described herein will receive quarterly payment of their accrued New Sales bonus amounts during the year. The actual payment dates shall be determined from time to time by The Hartford. III. Persistency Bonus A. Persistency Requirements and Payments To be eligible for a Persistency Reward, Producer must have 10 lines and $50,000 of fully insured in force DBL premium at the beginning of the program period. The amount of the Persistency Bonus depends upon the Producer s persistency level at the end of the program period, as shown: DBL Premium Persistency Payment Rate 97.5% % 95.5% % 0.50% 90.0% % 0.35% For purposes of this calculation, Persistency Premium shall be capped at $100,000 per case. 4 of 5

17 B. Payment -- The applicable Payment rate shown above shall be applied to the Producer s Ending In force premium, after applying the applicable case caps shown, and will be paid within 90 days of the close of the Program Period. IV. Disclosure and Reporting of Additional Compensation -- All Additional Compensation paid under this program, must be disclosed to policyholders and prospective policyholders in the circumstances described in your Producer Agreement. All Additional Compensation will be reported by The Hartford on a Schedule A Worksheet to assist policyholders in completing Form 5500 Schedule A, as required for plans governed by the Employee Retirement Income Security Act (ERISA). The Hartford will allocate any Additional Compensation earned under this DBL Producer Rewards Program across the Producer s book of business in accordance with applicable state and/or federal reporting requirements. Such Additional Compensation will not be directly charged to the experience of any specific group policyholder s account. Additional Compensation paid pursuant to this Program will be paid in accordance with applicable law and this Program may be discontinued at any time at the discretion of The Hartford. V. Miscellaneous A. This Program replaces all Producer bonus programs previously offered by The Hartford s Group Benefits Division. B. The Hartford has the sole right to change the terms of this Agreement prior to the commencement of each Program Period. C. Participation in this Program is voluntary. Producer may decline to participate, or may decline to accept any payment upon written notice to The Hartford. A Producer may opt out of the program in total or opt out of a particular case or cases. If a Producer opts out of additional compensation on a particular case or cases, that case or those cases will be removed from the Producer s payment. 5 of 5

18 SCHEDULE I NEW JERSEY STATUTORY DISABILITY ELIGIBILITY The provisions of this Schedule do not apply to certain producers who are required to submit their NJ Statutory Disability new business through another Producer contracted with The Hartford. Commissions on NJ Statutory Disability new business submitted by such Producers will be determined between those Producers and communicated to The Hartford at the time the case is submitted. Such commissions can be changed from time to time upon agreement between the Producers subject to the approval of The Hartford. None of the provisions described below in this Schedule I shall apply to such Producers or their NJ Statutory Disability business. COMMISSIONS Except as provided in Eligibility, above, compensation payable on a NJ Statutory Disability Policy, shall be paid in accordance with the following Schedules, as determined by the Eligibility requirements described below: GRADED COMMISSION SCHEDULES Excess Comm Premium Level Producer Producer Major Producer General Agent $5,000 or less 10.0% 16.0% 18.0% 21.0% $5,001 - $10, % 9.0% 9.0% 15.0% $10,001 - $25, % 6.0% 6.0% 12.0% $25,001 - $50, % 3.6% 3.6% 10.0% $50,001- $100, % 2.4% 2.4% 6.0% $100,001-$250, % 1.8% 1.8% 2.0% $250,001-$500, % 1.2% 1.2% 2.0% $500,001 or more 0.75% 0.9% 0.9% 1.0% ELIGIBILITY REQUIREMENTS Commission Scale In-Force Case Count In Force Premium Excess Commission Producer 50 or $ 40,000 Major Producer 100 or $ 200,000 General Agent 125 or $ 225,000

19 SCHEDULE J PARTNER REWARDS PROGRAM This Amendment is to the Group Producer Agreement previously entered into between Producer and The Hartford. The purpose of this Amendment is to describe Additional Compensation to be paid to Producer upon meeting the criteria described in this Schedule J. Effective January 1, 2012, this Schedule replaces any Schedule J describing any Producer bonus program previously attached to this Producer Agreement. I. Definitions (See also the Definitions Section in Part I of this Producer Agreement): Additional Compensation - is any payment made to Producer after Producer has met or exceeded the minimum production and retention requirements defined in this Schedule. For purposes of disclosure, Additional Compensation includes the Additional Benefit amounts described in Section V. Annualized Premium - is The Hartford s calculation of the amount of Fully Insured Premium expected to be received in the first 12 months that a given Policy is in- force. Beginning Total Paid Premium is the amount of Fully Insured Premium received by The Hartford during the prior calendar year for which the Producer is listed as Producer of Record in The Hartford s records. Capped Premium is that portion of the total Fully Insured Premium attributable to a given Policyholder (customer) on which an additional compensation payment may be made. For New Business Additional Compensation the cap applicable to a given Policyholder varies with the Producer s total paid premium size evaluated at 7/31/2012 and 1/31/2013. For Retention Additional Compensation the cap applicable will be determined by Producer s total paid premium size at the end of the Retention Program Period. Total Paid Premium is the amount of Fully Insured Premium received by The Hartford during the New Business or Retention Program Periods. Renewal Paid Premium is the amount of Fully Insured Premium received by The Hartford during the Retention Program Period for Policyholders that were in-force on 1/1/2012 with effective dates prior to 1/1/2012. Fully Insured Premium is Group insurance payments received or expected to be received from the Policyholder on Eligible Lines of Coverage that are also within the definition of Qualifying Business. Eligible Lines of Coverage - are any of the following Group products: a) Life insurance (basic life, dependent life, retiree life, and accidental death and dismemberment ( AD&D ) or any combination thereof); or b) A supplemental, or voluntary, life insurance contract; or c) A stand alone AD&D insurance contract; or d) A short-term disability insurance contract (including statutory STD plans except for New York DBL); or e) A long-term disability insurance contract; or f) A Group Retiree Health insurance contract, but only when the business was submitted directly to The Hartford by the Producer; or g) A Business Travel Accident insurance contract. The term Eligible Lines of Coverage shall not include creditor, pension, association, multiple 1 of 7

20 employer trusts or groups, Small Business Solutions policies, any policy with fewer than 10 lives, Blanket Line coverages, reserve buyout premiums, Administrative Services Only (ASO) fees or any other form of premium equivalents. Add issue premium (benefit increase or plan enhancement, new units or increased participation on voluntary plans) is not credited for New Business Additional Compensation. New Business - is an insurance policy that was not in force with The Hartford in the year preceding the New Business Program Period, produced either through the Producer or any other source. If a change to the Producer of Record is made during the New Business Program Period, the original selling Producer listed in The Hartford s records retains the right to receive New Business credit for purposes of this Schedule for the remainder of the New Business Program Period. Retention Business is an insurance policy that was in force with The Hartford in the year preceding the Retention Program Period, produced either through the Producer or any other source. Policyholder - is the legal entity to which a group policy is issued. Producer- is an individual or entity appropriately licensed and appointed by The Hartford to sell The Hartford s insurance products to prospective Policyholders and to provide service to existing Policyholders. Producer of Record - is the Producer on a given policy who has been identified by the Policyholder as the Producer authorized to service that Policy, as reflected on the official records of The Hartford. The Producer of Record can be changed upon the written request of the Policyholder and the approval of The Hartford. If a change to the Producer of Record is made during the Retention Program Period, the Producer of Record listed in The Hartford s records will receive credit for the Qualifying Business for that portion of the Retention Program Period in which the Producer is recognized as Producer of Record. Premium Retention is calculated by dividing Renewal Paid Premium by Beginning Total Paid Premium. New Business Program Period is the term of this bonus eligibility period which begins on February 1, 2012 and ends on January 31, Retention Program Period is the term of this bonus eligibility period which begins on January 1, 2012 and ends on December 31, Qualifying Business - is Fully Insured business that meets all of the following criteria: a) Separate employee groups covered by an eligible Line of Coverage; and b) With Fully Insured Premium (including experience rated and non-experience rated policies); and c) Producer is recognized by Policyholder and The Hartford as the Producer of Record; and 2 of 7

21 d) Producer is directly receiving commissions from The Hartford, or consulting fees from the Policyholder, relating to the Lines(s) of Coverage, on the effective date of the sale for New Business or at any time during the Retention Program Period for Retention Business. e) For purposes of this Schedule Qualifying Business shall not include: i) Creditor, pension, association, multiple employer trusts or groups, ii) ASO Fees or other premium equivalents, iii) Reserve buy out premium iv) New York statutory disability coverages, v) Group Retiree Health in force policies, vi) Blanket Lines coverages, vii) Small Business Solutions policies, viii) Any policy covering fewer than 10 lives II. New Sales Additional Compensation (New Sales Performance Plan) A) Definition - New Sales Additional Compensation is that portion of the Additional Compensation payable on Annualized Premium for New Business produced during the New Business Program Period. B) Production Requirements - To become eligible for New Sales Additional Compensation, Producer shall place Annualized Premium on New Business during the New Business Program Period, and maintain that business in force through the last day of the New Business Program Period. Producer must meet one of the following requirements: At least $250,000 of Annualized Premium on New Business, OR At least 7 new Lines of Coverage and at least $50,000 of Annualized Premium on New Business. C) Payment Rates After Production Requirements described in II B, above, are met, Producer will receive: Cumulative Fully Insured Capped Premium Payment Factor on the first $750,000 of Annualized Capped Premium 2.5% on the next $750,000 of Annualized Capped Premium 3.0% on Annualized Capped Premium in excess of $1,500, % 3 of 7

22 New Business Producer Levels are established semi-annually based on the Producer s Total Paid Premium as of 7/31/2012 and 1/31/2013. New Sales Producer s Total Paid Premium Applicable Policyholder Cap < $1,000,000 $ 500,000 $1,000,000 - $5,999,999 $1,000,000 $6,000,000 - $11,999,999 $2,000,000 >$12,000,000 + $3,000,000 For purposes of this calculation, Annualized Premium with the exception of Group Retiree Health business shall be capped at the Policyholder level according to Producer s Total Paid Premium size on 7/31/2012 and 1/31/2013 as described above. Group Retiree Health Annualized Premium shall be capped at $100,000 per Policyholder. D) Payment Producers who qualify for payments as described herein will receive semi-annual payments of their accrued New Sales Additional Compensation amounts during the year. The actual payment dates shall be as determined by The Hartford. E) Payment Offsets New Sales Additional Compensation Payments made during the year are based on Annualized Premiums established at the time of payment. Annualized Premiums will be recalculated following the close of the New Business Program Period, and adjustments will be made in the final New Sales Additional Compensation to reflect any increases or decreases in Annualized Premiums. At our discretion, any payment under the Partner Rewards Program may be applied to any outstanding balances, uncollected amounts and other monies which are due from you to any affiliated company of The Hartford Financial Services Group, Inc. including any amount due as a result of any breach of your obligations owed to us. III. Retention Additional Compensation (Retention Rewards Plan) A) Definition Retention Additional Compensation is that portion of the Additional Compensation payable for retained business during the Retention Program Period. B) Retention Requirements and Payments If Producer satisfies the retention requirements shown below, Producer will qualify for a Retention Additional Compensation payment. Producer s payment factor is determined by Producer s Total Paid Premium. 4 of 7

23 Group Benefits Retention Payment Factor Table Annualized News Sales $100K- <$500K >$500K- <$1M Total Paid Premium >$1M- >3M- <$3M <$6M >$6M- <$12M >$12M $50K $50K $25K $0 $0 $0 Paid Premium Retention <86.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% % 0.00% 0.00% 0.75% 0.75% 1.00% 2.00% % 0.00% 0.75% 0.85% 0.85% 1.50% 2.50% % 0.75% 0.75% 1.00% 1.00% 2.00% 3.00% % 0.75% 0.75% 1.15% 1.15% 2.15% 3.15% >97.00% 0.75% 0.75% 1.25% 1.25% 2.25% 3.25% $100K- <$500K >$500K- <$1M Total Paid Premium >$1M- >3M- <$3M <$6M >$6M- <$12M >$12M Case Cap* $1M $1M $1M $1.5M $1.5M $1.5M * Case caps for Retention Rewards are applied at the policyholder level. C. Payment The applicable payment factor shown above shall be applied to the Producer s Renewal Capped Paid Premium and will be paid following the close of the Retention Program Period. IV. Enterprise VIP Additional Compensation Enterprise VIPs are guaranteed a minimum payment factor determined by their total eligible premium across The Hartford s Consumer and Commercial Markets according to the table below: Overall Eligible Premium Volume* Minimum Factor < $15 M 1.50% $15 M - <$25 M 1.75% > $25 M 2.00% *Total premium on eligible lines for Middle Market, Small Commercial, Group Benefits and Personal Lines for the calendar period 1/1/2012 to 12/31/2012. Enterprise VIPs earning a Retention additional compensation payment are guaranteed a fifteen percent (15%) increase on their earned Retention payment factor described in Section III. An Enterprise VIP is a Producer who: Has not less than $3.5 million in Property & Casualty premium placed with The Hartford and whose cases have realized a profit for at least two of the prior three years; and Achieves at least 80% of the prior year s business plan objectives, which objectives are determined by The Hartford and communicated to Producer prior to the start of the prior year, 5 of 7

24 or Has not less than $6 million in Group Benefits premium, with at least 90% premium retention and at least $250,000 New Business annualized premium or Has not less than $5.0 million combined Property & Casualty and Group Benefits premium with at least 90% premium retention of Group Benefits and at least $250,000 Group Benefits New Business annualized premium. And Engages in a thorough joint business planning process with The Hartford s Sales Management. Sustains long term profitable growth Is committed and takes a long-term approach to achieving success with The Hartford Invests in technology and automation V. Additional Benefits - Certain non-cash benefits will be made available to Producers. These benefits may include participation at special events and similar non-cash items or activities. VI. VII. Disclosure and Reporting of Additional Compensation - All Additional Compensation paid under this Program, including values assigned by The Hartford to the non-cash benefits described herein, must be disclosed to policyholders and prospective policyholders in the circumstances described in The Hartford s Group Insurance Producer Agreement. All Additional Compensation will be reported by The Hartford on a Schedule A Worksheet to assist policyholders in completing Form 5500 Schedule A, as required for plans governed by the Employee Retirement Income Security Act (ERISA). The Hartford will allocate any Additional Compensation earned under this Partner Rewards Program across the Producer s book of business in accordance with applicable state and/or federal reporting requirements. Such Additional Compensation will not be directly charged to the experience of any specific group policyholder s account. Additional Compensation paid pursuant to this Partner Rewards Program will be paid in accordance with applicable law and this Partner Rewards Program may be discontinued at any time at the discretion of The Hartford. Miscellaneous A) This Program replaces all Contingent Commission programs previously offered by The Hartford s Group Benefits Division. B) The Hartford has the sole right to change the terms of this Agreement prior to the commencement of each Partner Reward s Program Period. C) Participation in The Hartford s Partner Rewards Program is voluntary. Producer may decline to participate, or may decline to accept any payment upon written notice to The Hartford. A Producer may opt out of the Program in total or opt out of a particular case or cases. If a Producer opts out of additional compensation on a particular case or cases, that case or those cases will be removed from the Producer s payment, if any. 6 of 7