Agent Reference Guide

Transcription

1 Dignified Choice Classic Series Final Expense Agent Reference Guide Form No CL (Rev. 12/10)

2 Table of Contents Contact Information How to Contact Us... 2 Commission Information General Information... 3 Frequently Asked Questions... 4 Product Overview Base Plans... 5 Rider Options... 6 Underwriting Guidelines General Guidelines Medical Definitions and Terms... 9 New Business Policy Dating General Application Guidelines Premium Calculation Completing the Application Base Application Sample Children s Rider Application Sample Application Faxing Conservation Lapses & Cancellations Returned Bank Drafts & Checks Reinstatements Reinstatement Guidelines Reinstatement Application Sample Advertising Advertising Guidelines Advertising Approval Procedures USA PATRIOT Act Anti-Money Laundering Program This guide is not intended for consumer use, nor is it intended to represent a legal contract. The information contained herein is designed to serve as a general reference source only. The Company procedures and practices outlined in this guide are subject to change due to legal compliance requirements or the needs of the business. Sample forms are provided for reference only. Actual forms may vary by state and are subject to change or revision. Form No CL (Rev. 12/10) 1

3 How to Contact Us Licensing Phone (800) Ext Fax (607) New Business/ Phone (800) Option 1 Agent Support Fax (888) Claims Phone (800) Ext Fax (607) Underwriting Phone (800) Option 4 Fax (888) Commissions Phone (800) Ext Fax (877) Online zbgmcommissions@cfglife.com Premium Accounting Phone (800) Ext and Billing Fax (877) Forms Phone (800) Ext Fax (607) (use Form No. 166) New Business To P.O. Box 4850 Norcross, GA Fax Applications To Express Mail To (877) (for Columbian Life Final Expense only) 25 Technology Parkway South Suite 200 Norcross, GA Form No CL (Rev. 12/10) 2

4 Commissions General Commission Information Processing Time Clean business that is received before noon Eastern Time on Wednesday will be issued by Friday. Clean business assumes that the writing agent is appointed with Columbian, the application is properly completed, premium is accurate, and the MIB and prescription drug check do not indicate undisclosed medical issues. For Draft First Premium, commission is not paid until the premium has been drafted. Commission Splits When splitting commissions between agents, indicate the percentage split next to each agent s name under the Report of Licensed Agent section of the application. Commissions on Rewritten / Reinstated Policies If a new policy is written by the original writing agent within twelve months after the lapse, surrender or termination date of an existing policy, the first-year compensation on the new policy will be adjusted. The compensation adjustment will be based on the number of months the previous policy was in effect: If the policy lapsed, was surrendered or terminated at any time during its original twelve months in force, the total first-year compensation payable on the new policy will be the balance of the original twelve months on the old policy. Renewal compensation will be paid after that period. If the policy lapsed, was surrendered or terminated after its original twelve months in force, only renewal compensation will be payable on the new policy. If, as a result of the rewrite, there is an increase in premium on the new policy, first-year commissions will be paid only on the amount of the increase, with renewal compensation paid on the remainder. When a policy is reinstated in the first year, first-year commissions will be paid on premiums received for the balance of the first twelve months of the policy. First-year commissions will not be paid for more than a total of twelve months. If a policy has been reinstated by redate and a change in age has caused a premium increase, commissions will be adjusted accordingly. Commission Advances At the discretion of the Company, commissions may be advanced for policies on monthly bank draft premium mode (EFT). Advances are loans against future commissions, which are repaid by commissions as earned. No commissions will be advanced until an Advance Agreement is signed by the Agent, the Managing General Agent, and an authorized Company representative. Policies written on an Agent s immediate family (spouse, parent, child or sibling) are not eligible for commission advances Tax Reporting All earned compensation, including any bonuses or special programs, is included on the For commission advances, 1099 s are issued for the amount earned, not the amount advanced. For example, if an agent receives a 9-month commission advance of $900 in December and the actual amount earned was $100, the 1099 for that year would show only the $100 of earned commission. The remaining $800 would be included on the next year s 1099, assuming all premiums are paid. The advantages of this method of 1099 reporting include: Earnings are more level from year to year. Advances are not subject to taxation until the year the commission is earned.* Advance chargebacks do not affect the 1099, since the advance was not included in the 1099 earnings. Commission chargebacks or reversals for non-advanced commissions are automatically deducted from 1099 earnings. *No tax advice is intended to be given. Form No CL (Rev. 12/10) 3

5 Commissions Frequently Asked Questions When are commissions paid? Commissions are paid on a weekly basis and a month-end payment is made (if necessary) to close out the month. Commissions paid via EFT are deposited on Thursday and available on Friday morning. Paper checks are mailed each Friday. Commissions are not paid until the total amount payable is at least $25. How do I get my commission statements? To review your commission statements and all other reports, go to and click on the Final Expense button under Producer/RSD Log In. First-time users, click on Enroll Here, enter the last five digits of your Agent Number, the last four digits of your SSN or tax ID, and provide your Zip code, date of birth, telephone number, or address. Once your identity has been confirmed, you will create your user ID and password for future log-ins. When are advance commissions charged back? For lapsed or surrendered policies and for death within the first year of a full benefit policy, the unearned portion of commissions paid is charged back. For policies not taken, rescinded, and for death within the first year of a graded benefit policy, 100% of commissions paid are charged back. A chargeback occurs when a policy is coded as lapsed, surrendered, not taken, rescinded, or when death occurs within the first year of the policy. See page 21 for details on the number of days allowed for conservation efforts before commissions for lapsed or not taken policies will be charged back. When a chargeback occurs, it will be recovered during the next available period for which funds would be payable. If those funds do not pay the chargeback in full, the balance will be carried over until the chargeback is satisfied. When are earned commissions charged back? Earned commissions are charged back when premium is returned unpaid by the bank or refunded to the client (see page 21 for details). 100% of commissions paid are charged back for policies not taken, rescinded policies and for death within the first year of a graded benefit policy. Earnings are charged back from the next commission payment. If a negative balance remains, it will be carried over until the chargeback is satisfied. How do I check the status of my business? The real-time status of your business is posted in your Application History at Where can I find out how much my commission check will be? This information is also available at Simply log in to your home page and use the View Payment by Check feature. Form No CL (Rev. 12/10) 4

6 Product Overview Base Plans Dignified Choice - Classic I Full benefit whole life insurance with simplified underwriting and level premiums. Death Benefit: Immediate full coverage with level death benefit in all years Underwriting: All health questions answered no Medical Information Bureau (MIB) Telephone interview (point of sale) IntelliScript (prescription drug check) Classifications: Non-Tobacco Tobacco Issue Limits: Ages* Face Amounts ,500 25, ,000 25, ,500 25,000 Available Riders: Accelerated Death Benefit Rider Accidental Death Benefit Rider Children s Term Insurance Rider Waiver of Premium Due to Disability Rider Nursing Home Waiver of Premium Rider See next page for rider descriptions and ages. Dignified Choice - Classic II (Classic II not available in AR, KS, MA, MN, NC, NV, WV) Graded benefit whole life insurance with simplified underwriting and level premiums. Death Benefit: Return of premiums plus 6% interest for non-accidental death occurring within the first two policy years. Full face amount for accidental death occurring within the first two policy years or for death by any cause in year three or thereafter. Underwriting: Any Part 2 health question answered yes Medical Information Bureau (MIB) Issue Limits: Ages* Face Amounts ,500 15, ,000 15, ,500 15, ** 2,500 10,000 Available Rider: Accelerated Death Benefit Rider Classification: Graded Benefit *Age at the last birthday as of the effective date of the policy. **Maximum issue age for Graded Benefit in Missouri is 75. Maximum issue age for Graded Benefit in New Jersey is 77 for males and 82 for females. Policy/Rider specifications and availability may vary by state. Issue ages may vary by state. Form No CL (Rev. 12/10) 5

7 Product Overview Rider Options Accelerated Death Benefit Rider (Rider not available in MA, NJ, TX) Allows the Policyowner to request a benefit advance when the Insured is diagnosed by a physician as having a terminal condition and a life expectancy of 12 months or less. The Accelerated Death Benefit box must be checked on the application to have the rider added to the policy. Rider coverage is provided at no additional premium charge and remains in force for the duration of the policy.* Available with the Classic I Full Benefit Plan and the Classic II Graded Benefit Plan. (Rider not available with Classic II Graded Benefit Plan in OH & VA) Issue Ages: Same as base policy (all ages) Accidental Death Benefit Rider (Double Indemnity) Doubles the death benefit for accidental death of the Insured. Rider coverage is maintained to age 70. Available with the Classic I Full Benefit Plan only. Issue Ages: Children s Term Insurance Rider Level term insurance on the Insured s children to age 25. Single premium rate covers all eligible children. Rider coverage is maintained through the Insured s age 65. Available with the Classic I Full Benefit Plan only. Supplemental Application for Children s Term Insurance Rider must be completed to apply for coverage. Issue ages: Insured Parent / Children 15 days less than 19 years Minimum Issue: 3 Units (1 Rider Unit equals $1,000 Face Amount) Maximum Issue: - 5 Units on policies less than $10, Units on policies of $10,000 or more Child's term insurance may be converted to permanent insurance without evidence of insurability at ages 22 through 25. Waiver of Premium Due to Disability Waives premium payments after 6 full months of total and continuous disability of the Insured. Rider coverage is maintained until the policy anniversary on or next following the Insured s 60 th birthday. If the Insured is receiving benefits when the Rider expires, the waiver benefit continues as long as the Insured continues to provide proof of disability. Available with the Classic I Full Benefit Plan only. Issue Ages: Nursing Home Waiver of Premium Rider (Rider not available in HI, MA, NJ, VA) Waives premium payments during the Insured s confinement in a qualified nursing home after 90 days of continuous confinement when care is recommended by a physician after the Rider is in effect. Rider coverage remains in force for the duration of the policy. Available with the Classic I Full Benefit Plan only. Issue Ages: *If an accelerated benefit payment is made, an administrative service fee, not to exceed $200, is deducted from the payment (except where prohibited) and there will be an interest charge assessed, as outlined in the rider (see rider language for details). Receipt of accelerated benefit may affect eligibility for public assistance programs and may be taxable. Policy/Rider specifications and availability may vary by state. Form No CL (Rev. 12/10) 6

8 Underwriting Guidelines General Underwriting Guidelines Underwriting is primarily based on the responses to the application health questions. For Classic I applications, a telephone interview is conducted at the time of sale. The Company reserves the right to require a telephone interview for any Classic II application. A prescription drug database is accessed during the telephone interview to determine if the proposed insured is using any drugs that may indicate a medical condition listed on the application, which may prompt the interviewer to ask additional questions. At the end of the call, the interviewer shares this information with the agent to let them know if they should do further follow up while in the home. The Company accesses the Medical Information Bureau (MIB) when the application is received. On rare occasions, a follow-up interview may be required to clarify specific conditions. Under unusual circumstances, an Attending Physician s Statement (APS) may be requested. These underwriting tools, used together, help to ensure a prompt and accurate underwriting decision. A policy can be rescinded during the contestable period if the insurer discovers information that would have caused the policy to be declined or issued other than as applied for had the information been known at the time of application. When a policy is rescinded, everyone loses: The family loses valuable benefits they had counted on. The insurer loses the cost of issuing the policy and the cost of the investigation. The agent loses all commissions from the policy, and if the case was obviously mishandled or a pattern of rescissions is evident, he or she could be terminated for cause. Columbian reviews all agent activity each month, including an evaluation of rescinded policies for each agent. Evidence of mishandling or a pattern of rescissions results in termination of the agent, regardless of production. You are our first defense against bad claims. In order to protect your clients, the Company, and yourself, here are some things you can do to ensure the quality of the business you write: Use good judgment. For example, you should not take an application from someone in hospice care. Use good observation. For example, seeing an oxygen machine or prescription medicine should lead you to ask further questions. For Classic I, have the telephone interview conducted in your presence and listen for discrepancies. If you have suspicions regarding health issues, include a cover letter with the application. For example, if you noticed a wheelchair in the home but the Applicant did not mention limited mobility, let us know so that we can investigate further. Ineligible Persons You should not take an application on anyone who: answers yes to any of the questions in Part 1 of the Health History section. is institutionalized, including a penal institution or psychiatric facility. is mentally incompetent or lacks the legal capacity to contract. is not a U.S. resident. If the Applicant is a foreign national, he or she must be a legal immigrant and have a Social Security number. We will accept applications up to $15,000 on foreign nationals who have a green card or tax ID number (TIN) and a driver s license. This is provided as a general guide and is not intended to be a complete list. Application Health Questions It is essential that you read each health question aloud, word for word, and take the time to be sure the Applicant understands each one. At times, an Applicant s diagnosis may fall under one of the general terms listed on the application, but may be known to the Applicant by another name. Use the Medical Definitions on page 9 as a guide, and call the Underwriting Team if you have questions. Form No CL (Rev. 12/10) 7

9 Underwriting Guidelines General Underwriting Guidelines Prescribed Medicine Several of the application health questions ask if the Proposed Insured has received treatment for the listed medical conditions. Prescription medicines are considered treatment. In order to help best assess eligibility, it is important that you ask if medicine has been prescribed and for what reason. Telephone Interview The telephone interview is required with every application for the Classic I Full Benefit policy. Whenever possible, the interview should be conducted before you leave the Applicant s home. Interviewers are available at Monday through Friday 8:30 a.m. to Midnight and Saturday and Sunday 10:00 a.m. to 8:00 p.m. Eastern. Refer to Form No. 4780CFG for details. Complete and have the Applicant sign the application before calling for the interview. Tell the operator you are calling in regard to Columbian s Final Expense product and provide your name and the state in which the application is being taken. Let the operator know if a translator is needed. Have the Applicant speak with the interviewer to confirm the answers to the health questions. A prescription drug database is accessed during the telephone interview to determine if the proposed insured is using any drugs that may indicate a medical condition listed on the application, which may prompt the interviewer to ask additional questions. At the end of the call, the interviewer shares this information with you to let you know if you should do further follow up while in the home. If the application is written after normal business hours, the telephone interview will be scheduled after the application is received by Columbian. Be sure to include the Proposed Insured s phone number on the application and indicate the best time to call in the Special Requests/ Remarks section. If the Proposed Insured does not have a telephone, they will need to call the telephone inspection service during business hours. The signed application must be submitted to the Company, even if the Applicant decides not to apply for the policy. Be sure to indicate this by writing WITHDRAWN across the front of the application. Power of Attorney The Proposed Insured must sign the application. Because the Proposed Insured must personally answer the health questions, a Power of Attorney signature will not be accepted. Medical Information Bureau The Medical Information Bureau (MIB) is a nonprofit membership organization of life insurance companies, providing an information exchange for its members. It maintains information of underwriting significance on policyholders and applicants as furnished to it by member companies. Columbian uses the MIB to check underwriting information, but only as a guide to identify areas about which we might need additional information before reaching a final underwriting decision. Columbian does not rely, in whole or in part, on an MIB report in making a final underwriting decision. Attending Physician s Statement Columbian rarely requires an Attending Physician s Statement (APS), however, we reserve the right to request one if conditions warrant. Graded Policies as a Percent of Business Graded Benefit applications should not exceed 30% of an agent s issued and paid business for the past 12 months. This is monitored on an ongoing basis. Failure to honor the 30% limit will jeopardize your ability to write the graded benefit product. Form No CL (Rev. 12/10) 8

10 Underwriting Guidelines Medical Definitions and Terms These definitions and terms are provided only as a guide and are not intended as an all-inclusive list. Please contact Underwriting with any medical questions. Alzheimer s Disease A progressive neurological disease of the brain that leads to dementia. May also be called Presenile Dementia or Senile Dementia. Amputation Generally refers to removal of part or all of a body part enclosed by skin. The application question refers only to amputation which is caused by disease. Aneurysm A localized widening of an artery or localized bulging of the heart. Black Lung Disease Lung disease resulting from coal mining. Black lung disease is also called coal worker s pneumocononiosis or asbestosis. Cancer Cancer is not one disease; it is a group of more than 100 different and distinctive diseases involving an abnormal growth of cells. May also be called a malignancy, malignant tumor, carcinoma or malignant neoplasm. Chronic Obstructive Pulmonary Disease (COPD) Any disorder that persistently obstructs bronchial airflow, not including asthma. COPD is also called chronic obstructive lung disease (COLD). Congestive Heart Failure Failure of the heart to pump blood with normal efficiency. Also may be present with cardiomyopathy, congestive myopathy and restrictive myopathy. Diabetes A chronic condition caused by insulin deficiency associated with abnormally high levels of sugar (glucose) in the blood. Heart Attack The death of heart muscle due to the loss of blood supply. Also called myocardial infarction or MI. Kidney Failure Loss of kidney function. Also called renal failure or kidney failure. Liver Disease This term includes cirrhosis, hepatitis, cholangitis, liver failure, and other diseases of the liver. Multiple Sclerosis A disease that attacks the central nervous system causing a loss of control over the body, with symptoms ranging from numbness to paralysis and blindness. Parkinson s Disease A slowly progressive neurologic disease characterized by a fixed inexpressive face, a tremor at rest, slowing of voluntary movements, a gait with short accelerating steps, peculiar posture, and muscle weakness. Also called paralysis agitans and shaking palsy. Stroke The sudden death of brain cells due to a disruption of blood flow to the brain. Also called CVA (cerebrovascular accident) or TIA (transient ischemic attack). Treatment Administration or application of remedies for disease or injury including, but not limited to, surgery, prescription drugs, oxygen use, x-ray, radiation therapy, chemotherapy, or physical therapy. Form No CL (Rev. 12/10) 9

11 New Business Policy Dating The application should always be dated the day it is completed and signed, even if the check date does not match the signature date or a different policy effective date is requested. Backdating up to 6 months to save age is allowed, as long as all premiums are submitted with the application. Indicate the requested effective date on the application. A future effective date of up to 30 days from the application date is allowed. For speedy processing, be sure to mail the application the same day it is completed. Indicate the requested effective date on the application. The Proposed Insured s age should always be calculated from the effective date of the policy, not the application date. The policy effective date will be the application date except: 1. If a different effective date is requested on the application, the effective date will be the date requested (cannot be more than 30 days from the application date). 2. If the initial premium is to be drafted from a bank account (checking or savings), the policy effective date will be the date of the first bank draft. (Draft date options are the 1 st, 3 rd, 5 th, 10 th, 15 th, 20 th, or 25 th of the month.) Draft First Premium Example Draft First Premium Application Date: October 20 Requested Draft Date: The 5th of each month First Draft Date: November 5 Effective Date: November 5 Allow at least five business days between the date the application will be received by the Company and the date of the first bank draft. The first draft date must be within 30 days of the application being signed. 3. If the initial premium is submitted with the application and subsequent premiums are to be paid by bank draft, the effective date will be one month prior to the first draft. The policy effective date may not be more than 30 days from the application date. Cash with Application Example Cash with Application Application Date: October 20 Requested Draft Date: The 5th of each month First Draft Date: December 5 Effective Date: November 5 The policy effective date may not be more than 30 days from the application date. 4. If the application date is the 29 th, 30 th, or 31 st of a month, the effective date will be the 1 st of the next month. If this date would result in a change in age, the effective date will be the 28 th of the month in which the application was signed. Form No CL (Rev. 12/10) 10

12 New Business General Application Guidelines Agent Notification The Company will notify you if additional underwriting is required on an application. Beneficiary Designation If the Owner is other than the Proposed Insured, the Beneficiary must have an insurable interest. The Beneficiary s relationship to the Proposed Insured must be stated on the application. A funeral home may not be named as beneficiary. Corrections Do not use correction fluid or tape on an application. If a mistake is made, draw a single line through the mistake and have the Applicant initial it. Foreign Applicants Applications for foreign nationals are accepted as long as the applicant is a legal immigrant and has a Social Security number. Applications up to $15,000 are accepted on foreign nationals who have a green card or tax ID number (TIN) and a driver s license. Premium If the initial premium is paid in cash, premium must be submitted in the form of a personal check, cashier s check, or money order from the Applicant. The Company will not accept an Agency or Agent s personal check or any post-dated check. Alternately, the initial premium can be transferred electronically by completing the One Time Electronic Fund Transfer section of the application. Do not use this section for Draft First Premium (see below). If the initial premium is to be paid by Draft First Premium: Check the Draft 1 st Premium box on Page 1 of the application and complete the First Draft and Ongoing Electronic Fund Transfer section. Submit a voided check or deposit slip with the application. The date for the first draft must be within 30 days of the application date. Allow at least 5 business days between the date the application will be received and date of first draft. The policy will not become effective until the first premium is drafted. Commission will be paid after the policy effective date. If subsequent premiums are to be paid by electronic funds transfer: Complete the First Draft and Ongoing Electronic Fund Transfer section of the application. Submit a voided check or deposit slip with the application. The date for the first drafted premium should be within 30 days of the effective date of the policy. Multiple Policies Additional coverage may be written on an Insured as long as the total insurance does not exceed maximum issue limits. Non-Resident Applicants When taking an application for an individual who resides in another state, the plan must be approved and the agent must be appointed in the state where the application is signed. Underwriting criteria will be based on the state where the application is signed. Form No CL (Rev. 12/10) 11

13 Base Premium New Business Premium Calculation EX AMPLE Female, 45 Full Benefit Non-Tobacco $10,000 Face Monthly EFT A nnual P remium per Thousand multiply by: Face Amount in Number of Thousands x x 10 equals: Annual Base Policy Premium = = add: Annual P olicy Fee equals: Annual P remium P lus Policy Fee = = for payment modes other than annual, multiply by: Modal Factor x x.087 equals: Amount of Base Premium = = Rider Premium Annual Rider Premium per Thousand 1.08 multiply by: Face Amount in Number of Thousands x x 10 equals: Annual Rider Premium = = for payment modes other than annual, multiply by: Modal Factor x x.087 equals: Amount of Rider Premium = =.94 Annual Policy Fee: $40.23 Modal Factors: Semi-Annual.52; Quarterly.265; Monthly EFT.087 Monthly Direct Bill not available. Accidental Death Benefit Rider EX AMPLE The above is an example only. Form No CL (Rev. 12/10) 12

14 New Business Completing the Application Check the appropriate box at the top of the application to indicate whether the policy will be mailed to you or to the Policyowner. If neither box is checked, the policy will be mailed to the Policyowner. If you elect to have the policy mailed to you for delivery to the Policyowner, you must personally deliver the policy and obtain the signature of the owner on the delivery receipt. You must return a signed copy of the receipt to the Company and retain a copy for your records. 1. PROPOSED INSURED Fill this out completely, being sure to include the Social Security number and phone number of the Proposed Insured. When calculating the Proposed Insured s age, if a specific effective date is requested or if the first premium is to be paid by bank draft, calculate the age as of the effective date or draft date, not the application date. 2. OWNER Complete this section if the Proposed Insured will not be the owner of the policy. Be sure to include the owner s Social Security number. The Policyowner must have an insurable interest in the life of the Proposed Insured. The insurable interest requirement is satisfied if the individual is an immediate family member or would suffer an economic loss by the death of the Proposed Insured. The relationship must be stated on the application. 3. BENEFICIARY If the Proposed Insured is the Owner, he or she may name the beneficiary of their choice. If the Owner is other than the Proposed Insured, the beneficiary must have an insurable interest. The relationship must be stated on the application. 4. POLICY INFORMATION Base Plan of Insurance: If any question in Part 1 of the Health History is answered yes, the Proposed Insured is not eligible for any plan. If any question in Part 2 is answered yes, the Proposed Insured is eligible to apply for the Graded Benefit Plan only. Amount of Base Premium (Minus Riders): Enter the amount of the base premium before adding any applicable rider premium. Riders: Enter the applicable rider premium amounts. If applying for a Graded Benefit policy, only the Accelerated Death Benefit Rider is available. If applying for the Nursing Home Rider, be sure to answer the Nursing Home Rider question in Part 4. If the question is answered Yes, the Proposed Insured is not eligible for the Rider. If applying for Children s Term Rider, complete the Supplemental Application for Children s Term Insurance Rider. The Family Income Rider is not yet available. You will be notified when it is available in your state. Amount Paid with Application: This should be the total of the amount of base premium plus the amount of any rider premiums. Form No CL (Rev. 12/10) 13

15 New Business Completing the Application 4. POLICY INFORMATION (continued) Payment Mode: Check the payment mode selected. Monthly payments are available only with Electronic Funds Transfer (bank draft). If the initial premium will be paid by Draft First Premium, check the Draft 1 st Premium box in addition to the payment mode selection. Requested Effective Date: Normally, the effective date of the policy is the application date (for Draft First Premium, the effective date is the date of the draft). A specific effective date can be requested within the following parameters: Backdating up to 6 months to save age is allowed. All premiums must be submitted with the application. A future effective date up to 30 days from the application date is allowed. If an effective date other than the application date is requested, note the requested date in this section of the application. State the reason for the request under Special Requests/Remarks. 5. HEALTH HISTORY If any question in Part 1 is answered yes, discontinue writing the application. If any question in Part 2 is answered yes, the Proposed Insured is eligible to apply for the graded benefit policy only. Circle or underline all applicable conditions relating to a yes answer. Be sure to answer the tobacco question in Part REPLACEMENT Answer both replacement questions on the application. If the application is signed in a state other than Oregon that has adopted the Model Replacement Regulation: If the Applicant does not have any existing life insurance or annuities, your duties with respect to replacement are complete. If the Applicant does have existing life insurance or annuities, you must complete the appropriate replacement notice for your state, even if the existing insurance or annuities are not being replaced. The notice must be read aloud to the Applicant, unless he or she initials the bottom of the form indicating that they have declined to have it read aloud. If the application is signed in Oregon or in a state that has not adopted the Model Regulation, complete the appropriate replacement notice if the Applicant answers yes to the second replacement question: Is this application for insurance intended to replace any life insurance or annuities now in force? Be sure to keep current on your state s replacement regulations. A replacement should be recommended only when it is in the best interest of the Applicant. Columbian does not condone unwarranted or unsuitable replacements. Any time that you complete a replacement notice, you must submit a copy with the application and leave a copy with the Applicant, as well as copies of all sales materials used in the presentation. Form No CL (Rev. 12/10) 14

16 New Business Completing the Application 7. SPECIAL REQUESTS/REMARKS Use this space to add any details regarding the application. 9. AUTHORIZATION & ACKNOWLEDGEMENT The Proposed Insured must sign the application. A Power of Attorney signature will not be accepted. If the Owner will be other than the Insured, the Owner must sign as well. Signatures are to be witnessed by the Agent. If the signature was not witnessed by the Agent, the reason must be noted under Special Requests/Remarks. If an Applicant is unable to write his or her own signature, he or she can make an X mark on the signature line. The Agent must then write the name beside the mark, showing the first name to the left of the mark and the last name to the right of the mark. The Agent should also write the word His or Her above the mark and the word Mark below the mark. Indicate the reason the Proposed Insured has signed with an X in the Special Requests / Remarks section. Example: X His John X Jones Mark Signature of Proposed Insured (Parent/Guardian if 15 or under) Note: The application must be received by the Company within 30 days of signature. 10. REPORT OF LICENSED AGENT Answer both replacement questions and indicate whether a telephone interview has been completed. If applying for a Classic I Full Benefit policy and the application is taken after business hours, be sure to include the Applicant s phone number and indicate the best time to call in the Special Requests/Remarks section. REQUEST FOR ELECTRONIC FUNDS TRANSFER PLAN Complete the One Time Electronic Fund Transfer section if the initial premium is to be debited from a bank account. Do not use this section for Draft First Premium. Complete the First Draft and Ongoing Electronic Fund Transfer section if the initial premium is to be paid by Draft First Premium and/or if subsequent premiums are to be paid by monthly EFT. Include a voided check or deposit slip. CONDITIONAL RECEIPT Complete this section only if premium is submitted with the application. If requesting Draft First Premium, do not complete the receipt. Form No CL (Rev. 12/10) 15

17 APPLICATION FOR WHOLE LIFE INSURANCE POLICY MAIL POLICY TO: Agent Owner 1. PROPOSED INSURED: COLUMBIAN LIFE INSURANCE COMPANY HOME OFFICE: CHICAGO, IL ADMINISTRATIVE SERVICE OFFICE: PO Box 4850, Norcross, GA Proposed Insured (First, Middle Initial, Last) Social Security Number Sex Age Last Birthday Date of Birth State of Birth Lucinda M. Jones Home Address/Apt. #, City, State, Zip Code Phone Number 1234 Happy Valley Road, Anywhere, IL ( ) 2. OWNER: (Complete only if Owner is other than Proposed Insured) Name of Owner Social Security Number Relationship to Proposed Insured Mailing Address/ (If different from Insured) 3. BENEFICIARY: Primary Beneficiary Designation: (Full Name & Relationship to Insured) John S. Jones - Spouse 4. POLICY INFORMATION: Address Base Plan of Insurance: Full Benefit Plan Non-Tobacco Tobacco Graded Benefit lucyjones@ .net Amount of Base Premium (Minus Riders): $ Amount of Insurance (Face Amount): 10,000 $ F Contingent Beneficiary Designation: (Full Name & Relationship to Insured) Riders: Accidental Death Benefit Accelerated Death Benefit Waiver of Premium Nursing Home Waiver of Premium Disability Children s Term Insurance Rider Family Income Rider * *Circle benefit per month ( 250 / 350 / 500) 8/11/ Rider Premium: $.94 (No Charge) $ $ 1.28 $ $ Amount Paid with Application: Payment Mode: Annual Semi-Annual Quarterly Monthly EFT Draft 1 st Premium? (Draft date must be within 30 days of application date.) Requested Effective Date: Automatic Premium Loan: Yes No 5. HEALTH HISTORY: PART 1 (If any question in this section is answered YES, DO NOT SUBMIT THE APPLICATION) YES NO 1. Is the Proposed Insured currently hospitalized, confined to a nursing home, hospice, bed, or confined to a wheelchair (due to a disease or chronic illness), institutionalized, receiving home health care, ever been recommended for an organ or bone marrow transplant, or ever had a heart, lung, liver or bone marrow transplant, or ever had an amputation due to disease or, within the last twelve (12) months, received kidney dialysis? Has the Proposed Insured ever been diagnosed or treated by a member of the medical profession for an Immune Deficiency Disorder, Acquired Immune Deficiency Syndrome (AIDS) or AIDS Related Complex (ARC), or has the Proposed Insured been diagnosed as having a terminal medical condition that is expected to result in death within the next twelve (12) months? 3. Has the Proposed Insured ever been diagnosed with, or received treatment for: mental retardation, Down s Syndrome, cerebral palsy, muscular dystrophy, spina bifida, cystic fibrosis, sickle cell anemia or un-operated heart defects? Has the Proposed Insured ever been diagnosed or received treatment (including taking medication) with congestive heart failure, Alzheimer s disease, dementia or Lou Gehrig s disease (ALS)? During the last twenty-four (24) months, has the Proposed Insured had, been diagnosed or received treatment (including taking medication) for any form of cancer (other than basal cell skin cancer)? During the last twelve (12) months has the Proposed Insured been diagnosed as having a heart attack? Are you male and over 350 pounds, or are you female and over 300 pounds?.. PART 2 (If the answer to any question in Part 2 is YES, the Proposed Insured is eligible for the GRADED BENEFIT PLAN only.) YES NO 1. During the last thirteen to twenty-four (13-24) months has the Proposed Insured been diagnosed as having a heart attack? 2. During the last twenty-four (24) months, has the Proposed Insured been diagnosed as having: A stroke (including TIA), aneurysm, enlarged heart, angina, pacemaker implant or any procedure to improve circulation to the heart or brain? 3. During the last thirty-six (36) months, has the Proposed Insured had, been diagnosed or received treatment (including taking medication) for: A. Emphysema, chronic obstructive pulmonary disease (COPD), black lung disease, any chronic respiratory disorder (excluding asthma or sleep apnea), or used oxygen equipment to assist in breathing? B. Kidney disease, kidney failure, liver disease, chronic hepatitis, drug or alcohol abuse, or Systemic Lupus?... C. Multiple Sclerosis, Parkinson s Disease, schizophrenia, brain tumor or has the Proposed Insured been hospitalized or institutionalized for a mental or nervous disorder within the last twenty-four (24) months? During the last twenty-four (24) months, has the Proposed Insured experienced complications of diabetes, including insulin shock, diabetic coma, Retinopathy (eye), Nephropathy (kidney), Neuropathy (nerve, circulatory) disorder, or diabetes not under control with current treatment, or has the Proposed Insured used insulin for the treatment of diabetes prior to age 50?... FORM NO. A343-CL PAGE 1 of 4 45 Carrie A. Jones - Daughter IL 2.61 $ APPLICATION FORM NUMBER MAY VARY BY STATE. Form No CL (Rev. 12/10) 16

18 PART 3 TOBACCO USE YES NO 1. Within the past twelve (12) months, has the Proposed Insured used any form of tobacco or nicotine products including cigarettes, cigars, pipes, chewing tobacco or snuff?.... PART 4 ANSWER ONLY IF APPLYING FOR THE NURSING HOME WAIVER OF PREMIUM RIDER (If any question in Part 2 is answered YES, the Proposed Insured is not eligible for this rider): YES NO Does the Proposed Insured currently use mechanical devices such as a wheelchair, crutches, hospital bed or oxygen; or currently need or require assistance from another person in bathing, eating, dressing, toileting, transferring from bed to chair or maintaining continence; or has the Proposed Insured received medical advice or treatment or consulted with a member of the medical profession for osteoporosis or memory loss? REPLACEMENT: YES NO Do you have any existing life insurance or annuities?. Is this application for insurance intended to replace any life insurance or annuities now in force?. (If YES, submit any special forms required by the state in which the application is signed.) 7. SPECIAL REQUESTS / REMARKS: 8. CONDITIONS RELATING TO THE APPLICATION: I have read the questions and answers in all parts of this application and agree that they are complete and true to the best of my knowledge and belief. I agree that this application shall form a part of any policy issued. I understand and agree that no agent has the authority to waive a complete answer to any question in the application, pass on insurability, make or alter any contract, or waive any of the Company s other rights or requirements; that any policy applied for shall not take effect (except as provided in the Conditional Receipt bearing the same number as this application) unless and until the policy has been issued and delivered and the full first premium, according to the mode of payment selected by the applicant (as permitted by the Company) and stipulated in the policy, has been paid and accepted by the Company during the lifetime and condition of health of the Proposed Insured as stated in the application. 9. AUTHORIZATION & ACKNOWLEDGMENT: I authorize any licensed physician, medical practitioner, hospital, clinic, pharmacy benefit manager, other medical or medically related facility, insurance company, the Medical Information Bureau, consumer reporting agency, or other organization, institution or person that has any records or knowledge of me, to give any such information to Columbian Life Insurance Company ( the Company ) or its reinsurers for underwriting or claims purposes. This authorization also includes information about drugs, alcoholism, prescription drug records, or any other medical history information. To facilitate rapid submission of such information, I authorize all said sources, except MIB, to give such records or knowledge to any agency employed by the Company to collect and transmit such information. I understand my information may be subject to redisclosure to a third party and may no longer be protected by federal privacy laws. I understand a telephone interview may be necessary to verify or supplement information given to the Company on this application. This interview may be made from the Administrative Service Office or from a consumer-reporting agency by a trained interviewer acting on the Company s behalf. A photocopy of this form will be as valid as the original; this authorization will be valid for two (2) years from the date shown below, and will survive my death if it occurs during such two (2) year period. You may revoke this authorization by contacting us at PO Box 1381 Binghamton, NY however, we retain the right to use any information obtained under your authorization prior to your revocation. I have read and understand the Conditions Relating to the Application and the Authorization & Acknowledgment. I acknowledge receipt and review of the Information Practices Relating to Underwriting Your Application. I have read and acknowledge the applicable fraud notice required by state law. 12/20/09 X Date of Application Signature of Proposed Insured (Parent/Guardian if 15 or under) (Date) Anywhere, IL Lucinda M. Jones X Dated At (City, State) Signature of Owner (If other than Insured) (Date) 10. REPORT OF LICENSED AGENT: Does the applicant have any existing life insurance or annuities?. YES NO Is this insurance intended to replace, in whole or part, any life insurance or annuities?. YES NO (If YES, submit any special forms required by the state in which the application is signed.) HAS THE TELEPHONE INTERVIEW BEEN COMPLETED? YES NO I hereby affirm that I personally solicited, witnessed, and completed this application and all answers given above are true and correct to the best of my knowledge. Alfred Q. Agent X Alfred Q. Agent 12/20/09 Name of Licensed Agent (Print) Signature of Licensed Agent (required) (Date) Agent Number % Second Agent Number % Agent s State License ID No. (in jurisdictions where required) (If Splitting) FORM NO. A343-CL Page 2 of 4 APPLICATION FORM NUMBER MAY VARY BY STATE. 12/20/09 Form No CL (Rev. 12/10) 17

19 MISCELLANEOUS Complete, If Applicable Not Required In All States SECONDARY ADDRESSEE / THIRD PARTY DESIGNEE Not Electing A Secondary Addressee/Third Party At this Time. (The Applicant/Owner may designate a Secondary Addressee/Third Party to receive a copy of Important Notices.) Name & Address: Secondary Addressee / Third Party Authorization I hereby give permission to accept any Important Notices on behalf of the named Proposed Insured. X Signature of Secondary Addressee/Third Party (If Required) REQUEST FOR ELECTRONIC FUNDS TRANSFER PLAN - (Must complete in full) DO NOT USE FOR DRAFT 1 st PREMIUM Amount Paid With Application: $ Complete this section to have the initial premium transferred ONE TIME ELECTRONIC FUND TRANSFER electronically (do not use for Draft 1st Premium or EFT mode). For Electronic Funds Transfer, your agent will submit your application for insurance and this authorization for payment to Columbian Life Insurance Company ( the Company ). By signing this form, you authorize the Company to initiate an electronic funds transfer from your bank account. Please note that your bank account may be debited the same day your agent submits this authorization. The below hereby authorizes the Company to draw an electronic fund transfer from my bank account for payment of new life insurance. This will be a one time withdrawal from my account in the amount of $ from the account detailed below. Financial Institution: Trustworthy Bank of Anywhere Name of Bank Account Holder: Account Type : Checking or Savings 0 Routing Number: Must have 9 digits in routing # Account Number: Can have up to 17 positions in account # 12/20/09 Lucinda M. Jones X Date Authorized Signature as it appears on Bank Records (one time withdrawal) IF YOU WISH TO CONTINUE MAKING PREMIUM PAYMENTS VIA ELECTRONIC FUNDS TRANSFER, PLEASE COMPLETE THE INFORMATION BELOW AND SIGN. PLEASE NOTE: YOU NEED ONLY INCLUDE THE ACCOUNT INFORMATION IF IT IS DIFFERENT THAN STATED ABOVE. FIRST DRAFT AND ONGOING ELECTRONIC FUND TRANSFER Complete this section for Draft First Premium I authorize the payment of debits drawn on my account payable to Columbian Life Insurance AND/OR Company, Monthly provided EFT there are mode. sufficient funds in the account. I agree that if any such debit be dishonored, you shall be under no liability in the event the dishonored debit results in forfeiture of insurance. Any requirement for giving notice of premiums due shall be waived as long as this Electronic Funds Transfer plan is in effect. No premium shall be deemed to have been paid until the Company receives actual payment. The use of this plan shall in no way change the provisions of the policy with respect to the termination of such policy upon nonpayment of the premium due. This plan shall continue in effect until terminated by the Company or by me by thirty days written notice to the other party. The Company may terminate the EFT plan if any check or electronic fund transfer is not paid on presentation. Upon termination of the Electronic Funds Transfer plan, premiums due under the policy after such termination shall be payable directly to the Company at the minimum modal premium available at the time of issue. Bank Name Checking (Attach voided check if available.) or Savings No need to complete account Transit / Routing # Must have 9 digits in routing # information if same as above. Account # Can have up to 17 positions in account # I request withdrawal of payments on or about the 1 st 3 rd 5 th 10 th 15 th 20 th or 25 th of each month, beginning in the January month of. 12/20/09 Lucinda M. Jones Lucinda M. Jones X Name of Bank Account Holder Date Authorized Signature as it appears on Bank Records (ongoing withdrawals) FORM NO. A343-CL Page 3 of 4 APPLICATION FORM NUMBER MAY VARY BY STATE. Form No CL (Rev. 12/10) 18

20 SUPPLEMENTAL APPLICATION FOR CHILDREN S TERM INSURANCE RIDER COLUMBIAN LIFE INSURANCE COMPANY HOME OFFICE: CHICAGO, IL ADMINISTRATIVE SERVICE OFFICE: PO Box 4850, Norcross, GA This application supplements Application Form No., dated. CHILDREN S TERM INSURANCE RIDER NUMBER OF UNITS APPLIED FOR: 1. CHILDREN PROPOSED FOR INSURANCE: Name all natural born children, stepchildren, and legally adopted children of Proposed Insured who have not reached age 19. Insurance will not be provided on newborn children less than 15 days of age. A. B. C. D. E. FULL NAME OF PROPOSED INSURED CHILD Carrie A. Jones Jonah E. Jones SOCIAL SECURITY NUMBER AGE LAST BIRTHDAY DATE OF BIRTH MO/DAY/YEAR HEIGHT FT IN 2. BENEFICIARY: (If a trust, give Trustee Name, Trust Name & Trust Date. If no Beneficiary is named for any child, the Beneficiary Designation defaults to the Insured of the base policy.) Primary Beneficiary Designation (Full name): Relationship to Insured: Lucinda S. Jones Contingent Beneficiary Designation(Full name): John M. Jones /20/ Relationship to Insured: 3. HEALTH HISTORY: 1. Has any Proposed Insured Child ever been diagnosed or treated for cancer, diabetes, heart or circulatory disorder, mental or nervous disorder, mental retardation, Down s Syndrome, cerebral palsy, muscular dystrophy, spina bifida, cystic fibrosis, un-operated heart defects, epilepsy, asthma, disorder of the muscles or bones, anemia to include sickle cell or other blood disorder, or been diagnosed or received treatment for a kidney, liver or lung disorder?. 2. Has any Proposed Insured Child ever been diagnosed or treated by a member of the medical profession for an Immune Deficiency Disorder, Acquired Immune Deficiency Syndrome (AIDS) or AIDS Related Complex (ARC)? Has any Proposed Insured Child ever used or received treatment, advice or counseling from a physician or other practitioner relating to the usage of alcohol, heroin, cocaine, narcotics, hallucinogens, tranquilizers, barbiturates, amphetamines, or other similar drugs except as prescribed by a physician?. 4. Is any Proposed Insured Child currently institutionalized, hospitalized, confined to a wheelchair or bed due to chronic illness or disease or has any Proposed Insured Child had or been recommended for an organ transplant? PLEASE GIVE DETAILS TO ANY YES ANSWER TO QUESTIONS 1 4 (Attach Another Sheet If Necessary): Proposed Insured Child Condition & Treatment Date 8/8/92 9/5/93 Mother Father YES Name & Address of Physician or Hospital WEIGHT LBS 5' 2" 110 5' 6" 150 NO 4. ACKNOWLEDGEMENT & SIGNATURES: I declare and represent that the foregoing statements and answers have been correctly recorded and that they are full, complete and true to the best of my knowledge and belief and shall constitute a part of the application. 12/20/09 Lucinda M. Jones Date X Signature of Parent/Guardian 12/20/09 Alfred Q. Agent X Date Signature of Licensed Agent Agent Number FORM NO. A333-CL APPLICATION FORM NUMBER MAY VARY BY STATE. Form No CL (Rev. 12/10) 19