Life, AD&D and Disability Insurance Now Available through USAble Life!

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1 Date: August 23, 2012 Market: All Life, AD&D and Disability Insurance Now Available through USAble Life! Overview USAble Life, AD&D and Disability Insurance is now available in all jurisdictions. Quoting can begin immediately for these products, which may be sold as freestanding or in conjunction with our medical benefits only (not as freestanding). The plans are offered through USAble Life (USAL) which is wholly owned by a partnership of several Blue Cross Blue Shield Companies. Their products and services are marketed exclusively through Blue Plan Partners. Key Selling Features Owned by BlueCross and Blue Shield plans Price competitive Easy to sell bundled packages See attached for detailed information. Single point of contact for Account Management Value-added features (e.g. online will preparation, travel protection, W-2 services, identity theft support, employee assistance programs) Rated by A (Excellent) from A.M. Best Process Broker Appointments o Complete USAble Life Agent Appointment Requisition Form, available on Broker Portal, send to licensing@usable.com Submitting a Quote Request o Broker/FSP/GP submits quote request to their CareFirst representative and by ing lifequotes@carefirst.com o CareFirst submits to USAble o Turnaround time: <100 lives is 2-4 days ;>100 lives is 3-6 days Applications/Forms/Brochures Please see attached. They are also available at Broker Commissions Group Life/ADD/Disability o Small Group Bundled Product 15% Level o 10+ Group Life/ADD/STD LTD First $15K 12% 15% Next $10K 8% 10% Next $25K 5% 5% Next $50K 2% 1% CareFirst BlueCross BlueShield is the shared business name of CareFirst of Maryland, Inc. and Group Hospitalization and Medical Services, Inc. CareFirst BlueCross BlueShield and CareFirst BlueChoice, Inc. are both independent licensees of the Blue Cross and Blue Shield Association. Registered trademark of the Blue Cross and Blue Shield Association. Registered trademark of CareFirst of Maryland, Inc.

2 Voluntary Group Life/ADD/STD/LTD o 15% Level Questions If you have any questions, please contact your Broker Sales Representative. Shekar Subramaniam Associate Vice President, Broker Sales CareFirst BlueCross BlueShield is the shared business name of CareFirst of Maryland, Inc. and Group Hospitalization and Medical Services, Inc. CareFirst BlueCross BlueShield and CareFirst BlueChoice, Inc. are both independent licensees of the Blue Cross and Blue Shield Association. Registered trademark of the Blue Cross and Blue Shield Association. Registered trademark of CareFirst of Maryland, Inc.

3 P.O. Box 1650 Little Rock, Arkansas SMALL GROUP INSURANCE APPLICATION (GIIM) Type or Print in Black Ink SECTION I. GROUP INFORMATION: 1. Legal Name of Policyholder: 2. Taxpayer ID#: 3. Effective Date of Coverage: 4. Type of Company: Corporation LLC PC S-Corp Sole Proprietor Partnership Government Other 5. Nature of Business 6. SIC Code 7. Name of Subsidiary or Affiliate Companies to be Covered 8. SIC Code/Affiliate 9. Mailing Address of Policyholder City State Zip Contact Information at Company: Benefits or Billing Contact Person Phone/Fax Number Address Web Address 11. Class Definitions. Small Group is limited to three classes with a minimum of 2 employees/class. Voluntary plans are limited to one class. Class Life LTD Grp. Vol. Description of Class Waiting Period, if Different 12. Do you have any employees located in states other than the Policyholder s main 13. Billing Method: Credit Card/Bank draft address? (if yes, please indicate states below) Billed by Blue Plan Self Administered Yes No On-Line Billing List Bill 14. Total number of eligible employees: Group: Voluntary: 15. Total number of employees enrolled: Group: Voluntary: 17. Do you allow Domestic Partner Coverage under the existing Medical Plan? Yes No 18. Waiting Period: First of the following month after completion of days, or Day following Hire Date (VLTD requires a 30 day minimum waiting period.) 20. Eligible Waiting Period Applies to: Future Employees Only Present & Future Employees Does the waiting period apply to employees rehired within 12 months of their termination date Yes No SG2-APP-MD (10-11) Employer contribution: Group: Voluntary: 19. Minimum hours per week: Group: Voluntary: 20a. Annual Enrollment date for Voluntary Coverage: 21. Replacement: Are any of the following a replacement of similar coverage? If prior coverage, please include a copy of the prior carrier s plan. Yes No Grp. Vol. Coverage If Yes, Previous Carrier Termination Date Life & AD&D Insurance Long Term Disability SECTION II. EMPLOYER BENEFIT OPTIONS: FOR GROUPS WITH 2 TO 50 ELIGIBLE EMPLOYEES SELECT COVERAGES THAT BEST MEET THE GROUP S NEEDS. Term Life/AD&D is required for LTD purchase. STEP 1: Select the Life/AD&D and LTD Coverage for the Employees and the Class Applicable for that Amount Group Term Life and AD&D Insurance Group Long Term Disability Choice Class No. of Term Life and Choice Class No. of LTD Elimination Period (Circle one) ee s AD&D Benefit (Circle one) ee s Benefit 30 Day 60 Day 1, 2, 3 $25,000 1, 2, 3 $500 1, 2, 3 $35,000 1, 2, 3 $750 1, 2, 3 $40,000* 1, 2, 3 $1,000 1, 2, 3 $50,000* 1, 2, 3 $1,500* 1, 2, 3 $2,000* *Requires a minimum of 5 eligible employees participating. Amounts between classes may not exceed 2x the lower amount.

4 STEP 2: Select Enhancements to the Group Coverages Dependent Life Coverage: Spouse/child: $5,000/$2,000 (Child Double the amount of the AD&D benefit. coverage from 14 days to 6 months is limited to $100) SECTION III. EMPLOYEE BENEFIT OPTIONS (VOLUNTARY PLANS): FOR GROUPS WITH 10 TO 50 ELIGIBLE EMPLOYEES Instructions: Group must elect Group Term Life/AD&D if VGTL/VAD&D or VLTD is desired. The employer cannot offer both group LTD and voluntary LTD. Voluntary* Term Life & AD&D Benefits Employee (Life & AD&D) Available amounts from $20,000 to $50,000 in $10,000 increments Dependent (Life only - spouse/child) Available amounts of $10,000/$5,000 or $20,000/$10,000 Voluntary* LTD 30 or 60 Day Elimination Period The employer elects one elimination period and one monthly benefit amount for all Available Monthly Benefit Amounts $500; $750; $1,000; $1,500 employees. The employee elects to purchase. *All voluntary plans require a minimum of 10 eligible employees, with a minimum of 5 participating or 25%, whichever is greater TERM LIFE AND ACCIDENTAL DEATH & DISMEMBERMENT FEATURES: Group and Voluntary AD&D Riders Benefits reduce by the following amounts on the insured s birthday* Group & Voluntary Plans Voluntary Plans Reduction at Age of Employee Seat Belt /Air Bag Special Education Age 65 Age 70 Coma Spouse Training 35% 50% Repatriation * Benefits for the covered person(s) terminate when no longer eligible or at Exposure and Disappearance retirement, whichever comes first. LONG TERM DISABILITY FEATURES: Disability Definition: Earnings / Occupation Test (80/20);24 month own occupation Drug & Mental Illness Limitation: 24 Month Lifetime Benefits Benefits Duration: 24 months (Group & Voluntary) Benefit Percentage: Flat benefit not to exceed 60% of pre-disability earnings Pre-existing Condition:Group LTD: 3/12; Voluntary LTD: 12/6/12 Integration: non-integrated; Voluntary amounts above $1,000 are integrated. W-2 Service Options for Long Term Disability Option 1: Withhold Federal income Taxes and the employee s portion of FICA. Prepare and File W-2 Forms. Option 2: Withhold Federal income Taxes and the employee s portion of FICA. Policyholder waives W-2 Forms Services. A detailed description of the W-2 services elected by the Policyholder pursuant to this application will be sent to the Policyholder by mail. Such services will be performed in accordance with the above election and established standard procedures. SECTION IV. AUTHORIZATION: REMARKS OR SPECIAL PROVISIONS: The undersigned employer and /or authorized representative hereby request that it be approved for insurance coverage through USAble Life and agrees to comply with all terms and provisions of the Group Policy (ies) issued in response to this application. It is understood and agreed that this application shall be made a part of the policy or policies applied for and that no insurance shall be effective until approved by USAble Life. Warning: Any person who knowingly and willfully presents a false or fraudulent claim for payment of a loss or benefit or who knowingly and willfully presents false information in an application for insurance is guilty of a crime and may be subject to fines and confinement in prison. Dated at (City & State) Name of Licensed Agent Date Signature of Licensed Agent Signature of Policyholder and Title Group # For Home Office Use Only SG2-APP-MD (10-11) 2

5 Providing More Benefits for Less Your employees deserve it. Your bottom line does too. This brochure provides a very brief description of USAble Life s Term Life, Disability and Accidental Death & Dismemberment products. This is not an insurance policy or service contract and only the actual provisions of an issued policy and contract control. USAble Life s policies set forth the rights and obligations of covered persons and USAble Life. Please be aware that certain limitations and exclusions apply and coverage may reduce or terminate due to age or lack of eligibility. If you enroll for coverage, you will be furnished with a policy and certificates of insurance for distribution to covered employees. Please read your insurance documents carefully. Convenient packages or flexible menu options for small groups. Copyright 2012 USAble Life. All rights reserved. SMGRPMNU-BROCHURE (XX-12)

6 Helping employees protect themselves and their families. USAble Life has been helping employees protect their families with insurance products and services for over 30 years. We have packaged together our most requested products: Group Term Life, Accidental Death & Dismemberment, and Long Term Disability. You can buy one of our pre-packaged plans that combine all these great benefits. We also are providing you with the ability to customize your own plan from the menu options available. No proposals are required and coverage is available for active, full-time employees working a minimum of 25 hours per week. LONG TERM DISABILITY Provides employees with partial income replacement in the event of a covered disability to help meet financial commitments and give their families financial stability. There is an employer choice in monthly benefit amounts, subject to a maximum of 60% of covered earnings, whichever is less. Monthly benefits are paid directly to the employee. Our packages provide a 60-day elimination period, yet the employer may opt for providing a 30-day elimination period. For employer paid disability benefit, there are no offsets applied for other income. For employee paid disability benefit, offsets for other income are applicable only for the $1,500 benefit option. For partial disability, monthly benefits are available if your employees are disabled and return to work on a part-time basis and suffer a loss of income of 20% or more and our programs will help your employees transition back to work with rehabilitation assistance. Other key aspects of this program include: Definition of Disability Employees are considered disabled and eligible to receive monthly benefits if, during the elimination period and the next 24 months of disability, an injury, sickness, or pregnancy requires your employees to be under the regular care of a physician, which prevents your employees from performing at least one of the material duties of their regular occupation with reasonable accommodations, and is earning less than 80% of their pre-disability earnings. Work Incentive Benefit There is also a return-to-work incentive that allows your employees to receive the elected benefit for a limited time while working part-time (subject to 100% of the pre-disability earnings). Pre-Existing Condition Exclusion Disability benefits will not be paid if your employees disability begins in the first 12 months following the effective date of their coverage, and the disability is caused by, contributed to by, or is the result of a pre-existing condition. A pre-existing condition means any condition in the 3 months prior to their effective date of coverage for which they received medical treatment or consultation, have taken or been prescribed drugs or medicine, or received care or services including diagnostic measures. Waiver of Premium Premiums are waived during a period in which your employees are receiving disability benefits. Termination Your employees insurance will terminate when they are no longer eligible, have received benefits for 24 months 2, or retire, whichever occurs first. TERM LIFE Provides employees with peace of mind that they will be able to meet their financial commitments and give their family financial stability should a loss of life occur. There is an employer choice of coverage amounts for employees. Payments are paid directly to the employee s beneficiary for loss of life. Other program features include: Accelerated Death Benefit If your employees are diagnosed with a terminal illness, and less than 12 months to live, they can receive advanced payments of up to 75% of their life insurance benefit amount. Waiver of Premium If your employees are totally disabled before age 60 and remain disabled for at least six months, during which time premiums are paid, their life insurance and their dependents life insurance may be continued while employees are totally disabled from any occupation without payment of premiums to age 65 (dependents premium is waived for up to 12 months) or until no longer disabled, whichever occurs first. Conversion Option If your employees leave the group for any reason, they have the option to convert their coverage to a whole life policy. Reductions If your employees are still actively at work on a full-time basis, benefits reduce to 65% of the pre-age 65 amount at age 65, and to 50% of the pre-age 65 amount at age 70. With the employee paid coverage option, reductions apply to the employee s spouse. Termination Your employees insurance will terminate when they are no longer eligible or they retire, whichever occurs first. Dependents coverage terminates when the employee or the dependent is no longer eligible or the employee s retirement, whichever occurs first. ACCIDENTAL DEATH & DISMEMBERMENT Provides 24-hour protection on or off the job against a covered accident anywhere in the world for eligible employees. There is an employer choice of coverage amounts for employees. Payments are paid directly to the employee s beneficiary, or to the employee in the event of a covered dismemberment (loss of hand, foot, eyesight, speech or hearing). In the event of a covered accident, accidental death will be paid as follows: life at 100% of elected amount as well as dismemberment two or more members, one member 50% of elected amount, thumb and index finger 25% of elected amount. Additional Benefits Seat Belt/Air Bag pays additional 10% of the coverage amount; Coma pays 5% of the coverage amount for up to 11 months while comatose; Repatriation pays additional 10% of the coverage amount; Exposure & Disappearance pays the coverage amount after one year of the exposure or disappearance. For the employee paid plans, we offer two additional benefits, Special Education benefit pays an additional 5% of the coverage amount for up to 4 years; Spouse Training benefit pays an additional 5% of the coverage amount for up to 4 years. Reductions If your employees are still actively at work on a full-time basis, benefits reduce to 65% of the pre-age 65 amount at age 65, and to 50% of the pre-age 65 amount at age 70. With the employee paid coverage option, reductions apply to the employee s spouse. Termination Your employees insurance will terminate when they are no longer eligible or retire, whichever occurs first. Package Options Choose a package of bundled products to fit your needs. 2+ EMPLOYEES 5+ EMPLOYEES Option A Option B Option C Option D Option E Option F Combined Term Life & Accidental Death Benefit $50,000 $50,000 $70,000 $100,000 $50,000 $100,000 TERM LIFE $25,000 $25,000 $35,000 $50,000 $25,000 $50,000 Spouse $5,000 Coverage Children (over 6 months) $2,000 Coverage Accelerated Death Benefit ACCIDENTAL DEATH & DISMEMBERMENT Waiver of Premium $25,000 $25,000 $35,000 $50,000 $25,000 $50,000 LONG TERM DISABILITY $750 $1,000 $1,500 $2,000 Waiver of Premium Benefit Duration 2 2 Year 2 Year 2 Year 2 Year Elimination Period 3 60 Day 60 Day 60 Day 60 Day Our Monthly Package Rate $8.50 $15.50 $21.00 $14.50 $22.50 $34.00 Menu Options Customize your benefit plan from this menu. Begin with desired value for your employees: o $25,000 4 o $35,000 4 o $40,000 5 o $50,000 5 o Dependent coverage: $5,000 spouse/$2,000 children 1 TERM LIFE MENU AND Consider offering an employee paid option 6 : o $20,000 o $30,000 o $40,000 o $50,000 o Dependent coverage: o $20,000 spouse/ $10,000 children o $10,000 spouse/ $5,000 children ACCIDENTAL DEATH & DISMEMBERMENT MENU Your employees receive value equal to Term Life selected: $25,000 4 $35,000 4 $40,000 5 $50, Children aged 14 days to 6 months have $100 in coverage. 2 Reducing Benefit Duration (ADEA). 3 Rates shown are for 60-day elimination period, 30-day elimination period is available for added monthly cost. 4 Available for groups of 2 or more employees. 5 Available for groups of 5 or more employees. 6 Available for groups of 10 or more employees with at least 5 participating. OR Choose to double value: $50,000 $70,000 $80,000 $100,000 If employee paid Term Life selected, receive matching value 6 : $20,000 $30,000 $40,000 $50,000 Select monthly benefit for your employees: o $500 4 o $750 4 o $1,000 4 o $1,500 5 o $2,000 5 LONG TERM DISABILITY MENU Select desired elimination period: o 30 Day o 60 Day To build your unique benefits programs and gain an affordable quote, contact your USAble Life representative. OR OR Offer an employee paid option 6 : o $500 o $750 o $1,000 o $1,500 Pre-existing condition exclusion is 12/6/24 months.

7 Small Group Bundled Product Business Rules Maryland, Washington DC, Virginia Product Outline Life & AD&D. These coverage s are combined under a single menu selection. In other words, the employer cannot pick Life without picking AD&D Enhancements to the Life/AD&D selection Dependent Life. If elected by the employer, Dependent Life will apply to all employees whether or not they have dependents. Double AD&D benefit. This will double the normal AD&D benefit. Long Term Disability. LTD is available if the employer elects Life/AD&D. LTD cannot be purchased standalone. The Bundled Small Group product is designed to be available to the 2 to 50 life employer paid market. General Business Rules LTD requires the purchase of any one of the Life options, LTD cannot be purchased as standalone. Employer elects the plan for all eligible employees. Separate plans for different classes are available. Minimum of three classes Minimum of 2 employees per class Plan modifications to any of the available options are not allowed. Groups in the 10+ market may request a custom quote from Home Office Underwriting. Each group must complete a Small Group Application ( ). Group billing is handled by USAL or your Full Service Producer. Claims will be handled by USAble Life. Customer Service issues can be handled jointly with your Full Service Producer and USAble. Group Eligibility An eligible group, or employer, is defined as one who: Has its primary business in the state in which this Small Group is rolled out to. Has been conducting business for a minimum of 24 months Is conducting business in an employer/employee setting No individual sales No associations No Taft-Hartley No Unions No Trusts No Chamber plans No MET s Ineligible Groups \See Appendix 1 Industry listing of ineligible SIC codes Group Size Requirements Group Plans Insured Eligibility Minimum of 2 lives, maximum of 50 lives. Life/AD&D amounts above $35,000 require a minimum of 5 participating employees. LTD amounts above $1,000 require a minimum of 5 participating employees Eligible employee. Employees must be actively at work earning an income from the employer. Retirees are not eligible Minimum hour requirement Group coverage: 25 hours or more per week An employee cannot be covered as an employee and as a dependent If an employee and spouse are both covered as employees and the employer purchases dependent coverage, neither the employee nor spouse can be covered for dependent coverage. Dependent eligibility Spouse The employee s legal spouse, if not legally separated Domestic partner coverage is allowed if domestic partners are covered under the employer s medical plan. Children Only one spouse may cover children if both are employees. Unmarried children less than age 26. Children also include legally adopted child (or placed for adoption), stepchildren, foster children or any child who lives with you, and depends on you for more than 50% of his support. Confidential

8 Contribution/Participation Bundled SG offerings are generally expected to be noncontributory (100% employer paid) for group coverage. If contributory, the group products require a minimum employer contribution of 25%. Participation Group products (Life, AD&D, LTD) If there is 100% employer contribution, there must be 100% employee participation. If there is not 100% employer contribution. 2-3 Eligible Employees, 100% participation. 4+ Eligible Employees, 75% participation (rounded up). If the group has elected an amount that requires a minimum of 5 lives and the employer is contributing less than 100% of the premium, the participation will be 75%, not less than 5 lives. Failure to meet this minimum requirement will result in non-issue of coverage. Guarantee Issue Guarantee Issue Group Products Coverage is guaranteed issue for eligible employees that are covered within their initial eligibility period Late applicants will be subject to evidence of insurability Pre-existing condition limitation applies to the LTD coverage. Rates are guaranteed 2 years from the effective date of the group contract. Confidential Small Group Decline to Quote List Number Industry Description SIC Range DTQ 1 Mining 10xx - 13xx DTQ 2 Oil & Gas Exploration 14xx DTQ 3 Logging Camps & Sawmills 241x - 242x DTQ 4 Pulp & Paper Mills 261x - 264x DTQ 5 Explosives DTQ 6 Asbestos Products 3292 DTQ 7 Blast Furnaces, Steel Mills & Foundries DTQ 8 Railroad Transportation 40xx DTQ 9 U.S. Postal Service 43xx DTQ 10 Air Transportation 45xx DTQ 11 Detective, Guard & Armored Car Services 7381 DTQ 12 Business & Professional Membership Organizations 861x - 862x DTQ 13 Labor Unions & Labor Organizations 863x DTQ 14 Civic, Social, Fraternal, Political and Organizations NEC 864x - 865x, 867x - 869x DTQ 15 Religious Organizations 866x DTQ 16 Private Households 88xx DTQ 17 Non-classifiable Establishments 9999 DTQ 17 Non-classifiable Establishments 9999 DTQ