termlifeplussm AGENT GUIDE term life insurance washington national

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1 AGENT GUIDE For agent information only. This material should not be distributed to the public or used in any solicitation. TL-BOOK-AGT washington national termlifeplussm term life insurance

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3 TABLE OF CONTENTS SECTION 1: PRODUCT INTRODUCTION...2 SECTION 2: PRODUCT HIGHLIGHTS...3 SECTION 3: BASE BENEFITS...5 SECTION 4: SUPPLEMENTAL BENEFIT RIDERS...6 SECTION 5: ELIGIBILITY...8 SECTION 6: UNDERWRITING OPTIONS...10 SECTION 7: ADMINISTRATIVE GUIDELINES...14 SECTION 8: COMPENSATION...20 SECTION 9: SALES SUPPORT...20 SECTION10: MARKETING...21 APPENDICES

4 SECTION 1: PRODUCT INTRODUCTION Washington National Term Life Plus SM is a level-premium term product designed for employer groups and for individuals. This product provides your clients straightforward coverage and peace of mind. It can be offered on a guarantee-issue (GI) or simplified-issue (SI) basis. The product s unique to-age-65 term lets clients gain coverage throughout their working years, even when retirement is in the distant future. With Washington National Term Life Plus, you can help your clients:* Gain financial stability Pay off their mortgage Secure a college education Compensate for lost income Pay expenses associated with a critical illness Get back part of their paid premiums *Benefits are subject to state availability

5 SECTION 2: PRODUCT HIGHLIGHTS MARKET AVAILABILITY Worksite Individual AVAILABLE COVERAGE Employee/proposed insured policy: $10,000 $250,000 Spouse policy: $10,000 $250,000 Children s Level Term Insurance rider: $10,000 LEVEL-PREMIUM TERM OPTIONS To-age-65 term: Issue ages year term: Issue ages BENEFIT PERIOD The policy remains in force as long as premiums are paid. Premiums are level for the duration of the guaranteeterm period and increase annually thereafter until the insured reaches age 98. OPTIONAL RETURN OF PREMIUM This optional benefit provides a 50% refund of base policy premiums at the end of the term. If the policy is canceled before the end of the term, the refund is paid based on a scheduled amount. Returned premium can be used to select reduced paid-up insurance or to extend the term life insurance. Clients also may choose to take the premium refund in cash. RIDERS Critical Illness rider (WNIC-6022) $3,000 lump-sum benefit when an insured is first diagnosed with cancer (except skin cancer), heart attack, stroke or end-stage renal failure and provides proof of the diagnosis. Total and Permanent Disability Benefits Waiver of Premium rider (WNIC-6021) waives monthly policy premiums when the insured is totally and permanently disabled for six months. Accidental Death Benefit rider (WNIC-6026) pays an additional benefit equal to 100% of the policy face amount, up to $150,000, if the insured person dies as the result of a covered accident. Free Accelerated Death Benefit rider (WNIC-6019) pays up to a 50% advance of the policy s face amount if the insured is diagnosed as terminally ill. Children s Level Term Insurance rider (WNIC-6020) provides level term coverage of $10,000 on each of the insured s eligible children. This rider can be added to an employee or a spouse policy, but not to both. APPLICATIONS WNIC-8001-GI should be used for groups that qualify for guarantee issue. WNIC-8001-EOI is used when evidence of insurability (EOI) is needed for guarantee-issue groups. WNIC-8000-SI is used when simplified issue underwriting is requested

6 CONVERTIBILITY Washington National Term Life Plus may be converted to a permanent life policy at any point before the end of the level-term period. POLICY FEE: $48 (commissionable) PORTABILITY: Yes SPECIFIED AMOUNT Minimum coverage amount: $10,000 or $4 a week Maximum coverage amount: $250,000 Maximum employee GI face amount: $50,000 Maximum spouse GI face amount: $15,000 (Note: The employee face amount must meet or exceed the spouse s GI face amount.) PREMIUMS Level-term premiums are unisex, issue-age rated and based on nontobacco or tobacco usage. No substandard rating classes exist for this product

7 SECTION 3: BASE BENEFITS LEVEL-PREMIUM TERMS To-age-65 term: The innovative to-age-65 option enables policyholders to keep their term coverage throughout their working years. When the insured reaches age 65, coverage may be kept in force at a premium rate that increases annually until he or she turns year term: The 15-year term is our traditional option. Premiums are level for the full 15-year term. At the end of the 15-year term, coverage may be kept in force at a premium rate that increases annually until the insured reaches age 98. RETURN OF PREMIUM The to-age-65 term and 15-year term can be sold with the optional Return of Premium benefit. With this option, the policyholder receives 50% of the policy s base premium at the end of the level-term period. If the policy is terminated before the end of the level-term period, the refund is paid based on a scheduled amount specified in the policy. If selected, the Return of Premium benefit is part of the base policy and cannot be removed at a later date. When a premium return is payable, the policyholder can: 1. Request the benefit amount in cash. 2. Use the benefit to extend his or her term coverage. 3. Elect reduced paid-up insurance. If option 1 or 2 is not requested, the premium return will default to this option. POLICY FEE This product has a $48 annual commissionable policy fee. This fee must be added to the annual rate when premiums are calculated on a per $1,000 basis. The ratebook (TL-RB) has the policy fee included in the precalculated rates

8 SECTION 4: SUPPLEMENTAL BENEFIT RIDERS* CRITICAL ILLNESS RIDER Form WNIC-6022 Issue age: The Critical Illness rider was developed to meet consumers increasing need for critical illness benefits that supplement high-deductible major medical plans. The rider pays a one-time $3,000 lump-sum benefit when the insured is diagnosed with one of the following specified critical illnesses: heart attack, stroke, cancer (excluding skin cancer) or end-stage renal failure. As a standalone benefit, this rider does not impact the base policy s face amount. If the applicant is approved for the base term policy, he or she may receive this rider without additional underwriting, health questions or other requirements. The rider has a 30-day waiting period. If the insured is diagnosed or treated for a specified critical illness during the first 30 days of coverage, no benefit is provided for loss resulting from that specified critical illness. If an insured is diagnosed during the waiting period, the owner may choose to void this rider from its effective date and receive a full refund for paid rider premium. To void the rider, the owner must submit a written notice to Washington National within 60 days after the waiting period ends. This rider will terminate: Upon payment of the $3,000 lump-sum benefit Upon termination of base policy On the date we receive a written request to terminate the rider The date any premium is not paid when due or within the grace period (as defined in the base policy) This rider cannot be added after policy issue. TOTAL AND PERMANENT DISABILITY BENEFITS WAIVER OF PREMIUM RIDER Form WNIC-6021 Issue age: With this rider, we will waive the policy and rider premiums when we receive written proof that the insured has become totally and permanently disabled. This rider contains a six-month elimination period. This rider terminates on the policy anniversary date on or after the policyholder s 60th birthday. *Supplemental benefit riders are subject to state availability. Forms may vary by state. Other benefit restrictions may apply. For more details, refer to a sample policy book, available at wnbizlink.com. An additional charge is required for all riders except the Accelerated Benefits rider

9 ACCIDENTAL DEATH BENEFIT RIDER Form WNIC-6019 Issue age: This rider provides an additional payment equal to the base policy s face amount, up to $150,000, if the insured dies from a covered accident before age 70. CHILDREN S LEVELTERM INSURANCE RIDER Form WNIC-6020 Issue age: 15 days through age 18 This rider covers all eligible children at a $10,000 face amount. Children are GI if they are added at the time of application or when they are first eligible. If this rider is added after issue, evidence of insurability is required unless no child is eligible for coverage when the policy was written. This rider can be added to an employee/proposed insured policy or a spouse policy, but not to both. Additional children born after the rider effective date are covered at 15 days of age with no premium increase when the policyholder notifies us in writing or with a new application. Conversion Conversion period: The insurance on a covered child can be converted on the policy anniversary when the insured is 65 or the covered child is 23, whichever is earlier. It will convert to a permanent policy of our choosing at the child s attained age. Amount: Without evidence of insurability, the face amount of the converted policy is limited to five times the amount of this rider. Time of conversion: Conversion is made upon our receipt of a written request and first premium payment of the new policy. FREE ACCELERATED BENEFITS RIDER Form WNIC-6019 Issue age: Same as the base policy This rider pays an advance benefit if the insured is diagnosed with a terminal illness. The maximum benefit cannot exceed 50% of the policy s death benefit. This rider is automatically added to every policy at no cost. The minimum advance is $500. An administrative fee is deducted from the benefit amount advanced. The amount accelerated plus fees will reduce the policy face amount dollar for dollar. Terminal illness is an illness from which the insured is not expected to recover and is expected to die within 12 months from the date of certification by a licensed physician. Any accelerated benefit payment requested under this rider will reduce the Return of Premium benefit dollar for dollar

10 SECTION 5: ELIGIBILITY AVAILABILITY Washington National Term Life Plus can be offered to employer groups and to individuals. COVERAGE OPTIONS Washington National Term Life Plus offers these coverage options: Employee/proposed insured policy Spouse policy Child(ren) rider EXCLUDED INDUSTRIES Some industries are inherently more dangerous than others. For this reason we exclude certain industries from coverage. The list of excluded industries applies whether the product is sold in the worksite or directly to an individual. NOTE: Employment is not a requirement on individual sales, but industry exclusions apply. SPECIAL CONSIDERATION: Industries listed as home office can be considered on case-specific parameters. Employers in certain industries may request a carve-out to be eligible for coverage. For example, groups may request a white-collar, office-only carve-out. ELIGIBILITY Worksite Employees who meet the stated conditions are eligible for coverage. The employee insured must: Work full-time or regular part-time hours. Average at least 20 hours per workweek. Be age if purchasing a to-age-65 term; or be age if purchasing a 15-year term. Be actively at work at enrollment and on the date of the first payroll deduction (if sold with payroll deduction). Not be employed in an excluded industry. Active military employees and temporary, transient and seasonal workers are not eligible for payroll deduction. Individual Any proposed insured who meet the stated conditions is eligible for coverage. The proposed insured must: Be age if purchasing a to-age-65 term or age if purchasing a 15-year term. Not be employed in an excluded industry. Not be an active military employee. WORKSITE GROUP The minimum group size is 10 employees, with a minimum of five policies issued. For GI underwriting, the minimum group size is 100 lives. Participation requirements also apply (see the underwriting section for details). Only employee applications count toward the minimum group size and participation. For SI underwriting, all employee, spouse and children policies count toward the minimum group size. Groups must have been in business at least 24 months to be eligible for coverage

11 WORKSITE WAITING PERIOD The waiting period is the length of time an employee must be employed to be eligible for coverage. For Washington National Term Life Plus, the waiting period is: Three months for full-time employees Six months for part-time employees Eligibility depends on whether the waiting period has been met when the application is signed. COVERAGE TYPES An employee can apply for spouse and/or child coverage even if he or she decides not to apply for coverage. If the employee does not apply then EOI is required. SPOUSE A spouse policy may be issued for face amounts up to $49,999 without the spouse s signature in the worksite market. A requested coverage amount of $50,000 or more requires the spouse s signature, subject to state-specific requirements. When selling in the individual market a spouse must sign the application. A spousal signature is required on spouse policies regardless of face amounts or GI availability in MA, MI, MO, MS, PA, RI and SC. In NV, a notice of the intent to purchase insurance on the spouse s life must be sent to the spouse within 48 hours. The agent/producer is responsible for obtaining the spouse s signature for the Washington National home office. CHILDREN Children may be covered with a Children s Level Term Insurance rider. The rider may be added to employee/main insured or spouse policies for children aged 15 days through 18 years. If an eligible child is added at issue, evidence of insurability is not required. If no eligible children exist at issue, the policyholder may add a new eligible child without evidence of insurability. If an eligible child exists at issue and the applicant declined coverage for the child, evidence of insurability must be provided to add any child at a later date. ISSUE LIMITS The minimum and maximum face amounts for Washington National Term Life Plus are: Employee/spouse Minimum: $10,000 or the face amount provided by a target premium of $4 per week, whichever is higher Maximum: $250,000; the maximum amount of all Washington National Term Life Plus policies on any one person cannot exceed $250,000 Children $10,

12 SECTION 6: UNDERWRITING OPTIONS OPTION 1: GUARANTEE ISSUE Guarantee-issue (GI) may be used when a group meets stated participation levels based on the number of eligible employees who enroll. New and existing groups may qualify for GI, subject to participation guidelines. While GI may be available for employee and spouse policies, the available face amounts are limited based on the group size. GI is not available for credit union employee nonpayroll sales. The GI option may not be available in all states. Underwriting approval is required for all GI groups with more than 500 eligible lives. Please contact the Washington National worksite underwriting department for consideration. IMPORTANT NOTE: The required number of applications must be submitted before GI is allowed. If the required number of applications is not received, the entire group must provide EOI, and the agent/producer must meet with each applicant to complete a new application (WNIC-8001-SI or state variation). GI PARTICIPATION REQUIREMENTS NEW GROUPS A new group is defined as any employer that has never submitted a Washington National Term Life Plus group profile to Washington National for underwriting approval. Only employee applications count toward participation. If participation requirements are met, only the following questions must be answered by the proposed insured: o Have you used tobacco in any form in the past 12 months? (This information is used for rating purposes only.) o Are you actively at work? (This applies to employee applications only.) If participation requirements are not met, the employee and family members may be required to provide EOI using form WNIC-8001-SI or state variation. If an employee waives coverage, the spouse is subject to EOI, regardless of whether participation requirements are met. IMPORTANT NOTE: Children written at the time of issue are always GI. Below, the chart outlines new group participation requirements and face-amount limits for GI cases. GUARANTEE-ISSUE CHART Case size Participation requirement Employee Spouse Child GI amount EOI GI amount EOI GI amount Less than 100 N/A N/A All amounts N/A All amounts $10, % Up to $50,000 $50,001+ Up to $15,000 * $15,001+ $10, Contact the worksite underwriting department for approval. *The spouse GI face amount cannot exceed the employee face amount with EOI

13 SPOUSE AND CHILDREN GI If the employee qualifies for GI, the Children s Level Term Insurance rider can be added to an employee or spouse policy (if spouse coverage is requested) as GI. Note: The rider cannot be added to both the spouse s and the employee s policies. If a group qualifies for GI, the spouse may elect up to $ 15,000 in coverage on a GI basis provided the employee elects an equal or greater amount. EVIDENCE OF INSURABILITY Evidence of insurability (EOI) is the process by which an underwriter reviews an application to determine whether the applicant is eligible for coverage. This process includes a thorough review of the entire application, including all health questions, a Medical Information Bureau (MIB) report and other underwriting requirements. EOI is required in these circumstances: A proposed insured or group does not qualify for GI. (WNIC-8000-SI) Employees apply for face amounts above the GI limit. (WNIC-8001-EOI) Participation requirements are not met. (WNIC-8000-SI) The Children s Level Term Insurance rider or Accidental Death Benefit rider is added after issue. (WNIC SI) Late entrants request coverage. (WNIC-8001-EOI for GI groups; WNIC-8000-SI for SI groups) The policy is written on an individual basis. (WNIC-8000-SI) Reinstatements are requested. (WNIC-8001-EOI for GI groups; WNIC-8000-SI for SI groups) When EOI is required, applicants must complete all health questions and provide an explanation for all questions answered yes on the application

14 Washington National Term Life Plus has two EOI underwriting levels. The applicant s EOI level is dependent on the face amount selected and their issue age. The chart below illustrates how to determine the applicant s EOI level. Face amounts listed are the sum of all Washington National life policies. EOI CLASS BASED ON FACE AMOUNT AND AGE Age EOI level 1 EOI level Up to $150,000 Greater than $150, Up to $100,000 Greater than $100, Up to $75,000 Greater than $75, Up to $50,000 Greater than $50,000 The chart below outlines the underwriting requirements based on the EOI level. EOI LEVEL 1 EOI LEVEL 2 Actively at work question Actively at work question Tobacco usage question Tobacco usage question Health questions Health questions Discretionary PHI Vein draw MIB PHI Discretionary prescription history check MIB This structure helps you prepare applicants for the level of underwriting. If they select an amount that is less than EOI level 2, you do not need to prepare them for EOI level 2 requirements such as a vein draw. If they select EOI level 2 amount, you can help them anticipate the EOI level 2 requirements. The more specific the information provided on the application including full disclosure on all yes answers the more likely the underwriter can make an informed decision without requesting additional requirements. Underwriting requirements definitions PHI: A personal history interview (PHI) takes about 15 minutes to complete and is handled over the phone. The process is easy. MIB: The Medical Information Bureau (MIB) is a confidential data repository used by insurance carriers. Prescription history check: The step provides an applicant s prescription history. Vein draw: The underwriting department arranges for an approved paramedical company to contact the applicant to obtain a blood sample. The company then runs tests to check for HIV, illegal narcotic use, hepatitis or other health conditions. Prescription history check

15 ADULT UNISEX HEIGHT AND WEIGHT GUIDELINES All EOI and SI applicants are subject to height and weight requirements. HEIGHT MINIMUM WEIGHT MAXIMUM WEIGHT HEIGHT MINIMUM WEIGHT MAXIMUM WEIGHT 4' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' Applicants who are less than the minimum weight or more than the maximum weight are declined

16 SECTION 7: ADMINISTRATIVE GUIDELINES EFFECTIVE DATES Payroll deduction business The effective date of worksite payroll deduction business is no earlier than the date the application is received in the home office. All payroll business is given an effective date of the 1st of the month. If the application is received on or before the 15th of the month, the effective date is the 1st of the month following the receipt date. If the application is received after the 15th of the month, the effective date is the 1st of the next month following the receipt date. Payroll deductions should begin on the policy effective date so that funds are available to remit when the first bill is due. Examples: APPLICATION RECEIPT DATE: EFFECTIVE DATE: 1st 15th 1st of following month Applications and payroll deduction authorization cards received in the home office. JUNE 1 15 EFFECTIVE DATE: FIRST BILL DATE: FIRST DUE DATE: JULY 1 JULY 1 AUGUST 1 APPLICATION RECEIVED DATE: EFFECTIVE DATE: 16th 31st 1st of next month (following month + 1) Applications and payroll deduction authorization cards received in the home office. JUNE EFFECTIVE DATE: FIRST BILL DATE: FIRST DUE DATE: AUGUST 1 AUGUST 1 SEPTEMBER 1 CREDIT UNION BUSINESS If the applications are received on the 1st 15th of the month, the effective date is 60 days from the first day of the month the application is received. Examples: ENROLLMENT FORMS RECEIVED IN HOME OFFICE: EFFECTIVE DATE: JULY 1-15 SEPTEMBER 1 For applications received on the 16th 31st of the month, the effective date is 90 days from the first day of the month the application is dated. ENROLLMENT FORMS RECEIVED IN HOME OFFICE: EFFECTIVE DATE: JULY OCTOBER

17 Deferred effective date coverage applies if any person to be covered is in a hospital, nursing home or other medical facility on the policy effective date. The insurance coverage does not become effective until the date the covered person is discharged from the hospital, nursing home or other medical facility and is able to perform normal activities. State variations apply. INDIVDUAL BUSINESS The effective date for individual policies defaults to the date of issue unless requested otherwise on the application. We do not accept backdated effective dates. Any exceptions to these guidelines must be approved by the underwriting department. PORTABILITY Policyholders who leave their place of employment may port their policy with no premium increase. Premiums for ported policies may be paid through electronic funds transfer (EFT) or by quarterly, semiannual or annual direct bill. POLICY ISSUE STATE Washington National Term Life Plus policies are issued based on the state where the application is signed. COMPLETING THE APPLICATION GI groups When a group qualifies for GI, applications WNIC-8001-GI and WNIC-8001-EOI (or state variations) should be used for the enrollment. Application WNIC-8001-GI must be completed for all GI enrollments. This application allows for the purchase of a Washington National Term Life Plus policy, as well as any available riders, on the employee and spouse. If GI guidelines are met, only this application is required. Application WNIC-8001-EOI is also required when: The applicant requests an insurance amount greater than the GI issue limit. The employee is not participating and applies only for a spouse policy. An employee is considered a late entrant. The applicant applied for any life coverage and was declined. The applicant applied for insurance and had the file incompleted (i.e., he or she did not get the necessary requirements). The applicant had coverage postponed. The applicant withdrew the request for coverage during the underwriting process. If participation requirements are not met and EOI is required, the application must be rewritten using WNIC SI. We will not accept a SI group on a GI or EOI application. NOTE: The agent/producer and applicant must sign each application used during enrollment

18 EOI groups Groups who do not attempt to reach participation requirements or do not meet GI qualifications require EOI underwriting. These groups will use application WNIC-8000-SI or the state variation. With this application, the employee may apply for coverage for all qualified family members. Some sections of the application are specific to individual sales; these sections can be ignored for EOI enrollments. The sections are marked with the heading complete for nonworksite sales. Credit unions and employee nonpayroll groups are always considered EOI groups. Individual sales For individual sales, application WNIC-800-SI or the state variation should be used. Several sections of this application are designed for individual sales. Section 3 allows the designation of a policyowner other than the proposed insured. Section 10 allows for owner signatures. WORKSITE PRE-ENROLLEMENT SUBMISSION Employer groups can be quoted, enrolled and submitted without home-office approval as long as they comply with standard plan designs, rates and underwriting. Groups that qualify for GI must fall within minimum/maximum face values, group size and participation requirements; be in an eligible industry class; and meet underwriting requirements. Groups providing EOI must fall within minimum/maximum face values and meet underwriting requirements. A new case profile (WIS-GRPPRO) form must be included with the worksite case when it is submitted to the home office. All case profiles are reviewed by the underwriting department before the business is processed. Any group that doesn t meet the requirements may be returned. Worksite underwriting review is not needed unless the case meets any of these criteria: Ineligible industry Municipality (limited to 30% police, fire or prison content) Group with more than 500 eligible lives In-force group with a group profile approved by underwriting and active Washington National Term Life Plus policies Associations and Multiple Employer Trusts (METs) Nonstandard plan design Coverage requested for ineligible employees Unfulfilled participation requirements If any of these criteria apply, you should submit a group life quote checklist (LIFE-FORM-GRPQTE). Upon receipt of the quote form, the underwriting department will review the group s qualification. You will be notified whether the group is accepted. If the case is approved, you may begin taking applications. Quote checklist may be submitted to [email protected]. In situations where a case meets any of the above criteria, a new case profile (WIS-GRPPRO) must be submitted to worksite agent services to obtain case approval before enrollment can begin. New case profile forms may be submitted by to [email protected] or faxed to (800)

19 SUBMITTING YOUR BUSINESS In addition to the appropriate new business applications, the following forms are used, subject to state variations: HIV consent form when a vein draw is required C-NBT: New business transmittal, which lists all applications included. One transmittal is required for every 10 applications. CHIC-AUTH: Payroll deduction authorization for worksite business CI-747: EFT form, required when premiums are to be deducted from a bank account Other state-required forms (refer to TL-FORM-SRF or wnbizlink.com for a list) Forms may be downloaded or ordered at wnbizlink.com. For worksite sales When enrollment is complete, bundle the applications along with other state-required forms and submit the documents to worksite agent services for issuance. Send all applications for a group at the same time to ensure the business is processed correctly. This helps to monitor participation percentages for GI groups. Leave a copy of the payroll deduction authorization form with the payroll administrator so he or she can begin premium deductions on time. Submitting applications Completed applications may be submitted by overnight mail, regular mail or fax. To avoid confusion and delays when faxing business, do not send the original applications and enrollment forms to the home office. All business should be submitted with a New Business Transmittal form (C-NBT). DIRECT WORKSITE & CREDIT UNION SALES Attn: New Business Department Attn: Worksite New Business Washington National Insurance Company Washington National Insurance Company N. Pennsylvania St N. Pennsylvania St. Carmel, IN Carmel, IN OR OR P.O. Box 1908 P.O. Box 2036 Carmel, IN Carmel, IN OR OR Fax: (800) Fax: (800) OR [email protected]

20 DELIVERY RECEIPTS Washington National Term Life Plus policies are mailed directly to the policyholder s home address, along with a delivery receipt. The policyholder should sign and promptly return the delivery receipt to the home office upon receipt of the policy. If the delivery receipt is not returned, a follow-up letter will be mailed to the policyholder asking for the delivery receipt. No adverse action is taken if the receipt is not returned except in CA, LA, PA, SD and WV, which require us to cancel the policy if a delivery receipt is not received. POLICY CHANGES The following changes to Washington National Term Life Plus coverage can be made: Remove a rider Add the Children s Term Insurance rider The face amount cannot be increased on this policy. If the insured wants to increase his/her face amount, a second policy should be written for the additional amount. The two policies can add up to generate a face amount that equals the policyholder s desired level. A face amount decrease or rider removal, a written request should be submitted to the home office. POLICY LAPSES The policy has a 31-day grace period. When the grace period begins, a letter is sent to the policyholder and agent/producer notifying them to submit additional premium. If the premium needed to keep the policy in force is not received by the end of the grace period, the policy will lapse. An additional letter is sent to the policy owner and agent/producer if the policy lapses. REINSTATEMENTS Policies that lapse due to nonpayment may be reinstated within five years after the lapse effective date, subject to EOI. A new application is required. The reinstatement effective date is the next monthly anniversary of the policy following the reinstatement approval

21 CLAIMS Claim form LLC-002 is used for all Washington National Term Life Plus claims, except those involving the Total and Permanent Disability Benefits Waiver of Premium. This form is available to order or download at wnbizlink.com. For claims related to the Total and Permanent Disability Benefits Waiver of Premium rider, contact the customer service team at the number listed below. When submitting a claim form, please complete all sections. All necessary documentation such as a death certificate, physician statements, etc. should be attached to the completed form and mailed to: Mail all Washington National Term Life Plus claims to: Claim Processing Washington National Insurance Company P.O. Box 1917 Carmel, IN Express packages should be addressed to: Attn: Claim Processing 1917 Conseco Insurance Company N. Pennsylvania St. Carmel, IN Fax (317) Phone Policyholders: (800) Agents: (800) , ext

22 SECTION 8: COMPENSATION First-year and renewal commissions are paid on the base policy, policy fee and riders, based on the application signed date, according to the percentages on the Compensation Schedule in effect with your marketing agreement. Commission is not altered by the agent s relationship to the applicant. COMMISSION EARNINGS The formula used to calculate commission earnings is: Commissionable premium collected x commission rate = commission earned Earned commissions and advance activity are applied first to pay off any outstanding primary account debt. Earned commission and advance activity in excess of debt in the primary account and minus secondary paybacks are paid to the agent/producer. ELECTRONIC FUNDS TRANSFER Advances and commissions are paid through electronic funds transfer (EFT), which helps expedite payments and shortens the agent/producer s wait. COMMISSION PAYMENTS The minimum commission payment is $25. Primary balances that do not meet the minimum payout are accumulated until the minimum is met. At that time, an EFT is issued for the accumulated net balance at the next commission cycle. The file transmission is sent on Monday of each week, except on holidays. COMMISSION STATEMENTS Commission statements list detail by policy of the premium processed and commission activity. A statement is generated for all activity during each weekly pay period for every active agent/producer and manager. All business processed Monday through Friday is reflected on the weekly commission statement. Statements are posted at wnbizlink.com by 8 a.m. ET each Monday. Register online at wnbizlink.com to access this convenient service. SECTION 9: SALES SUPPORT If you have questions about Washington National Term Life Plus, call sales development, (888)

23 SECTION 10: MARKETING MARKETING TOOLS AND FORMS Insurance is a state-regulated industry, and Washington National policies, forms and product availability may vary by state. Under no circumstances should an agent/producer assume that policies available in one state are also available in another state, or that forms may be the same in different states. If you have any questions about product availability or state-specific differences, consult your sales support specialist. Forms and marketing materials for your state are available online at wnbizlink.com, or by contacting agent care. On-hand supplies are mailed within 48 hours after the order is received. All supplies are sent by regular ground delivery. There is no charge for most materials and no charge for UPS ground-mail shipping. Expedited shipping can be selected for an additional charge. For the status of your order, please call agent care at (800) A representative will be able to help you place an order or determine the status. ADVERTISING Advertising is anything intended to generate interest in a specific insurance product, company or agent/producer. This includes but is not limited to: Website information and other online services Product brochures Newsletters Agent/producer recruiting mailers Prospecting letters Print, radio, television and all other forms of media advertising Illustration and presentation materials Business cards and stationery An agent/producer may not publish, advertise or promote any material about Washington National Insurance Company or its contracts without prior written authorization. Failure to submit advertising before use may result in termination of the agent/producer s contract. Submit your materials for approval by fax, mail or to: Sales Quality N. Pennsylvania St. Carmel, IN [email protected] If you have questions about using advertising materials or the approval process, please contact sales quality, (800) , ext

24 APPENDICES APPENDIX A: Standard industrial classification codes (in alphabetical order) Ineligible industries based on Standard Industrial Classification codes The Standard Industrial Classification (SIC) codes in this list represent industries that are ineligible for Washington National Term Life Plus coverage. Consideration may be given, based on case-specific parameters, to those marked with an X in the Home office column. Contact the worksite underwriting department for more details. SIC CODE 287X 348X HOME OFFICE INDUSTRY Agricultural chemicals Ammunition and explosives 7381 Armored car services X 45XX Aviation X 48XX Cable companies X 7011 Casinos X ADB EXCLUDED 09XX Commercial fishing, hunting and trapping 13XX Crude petroleum/natural gas 32XX Glass products, including asbestos 7363 Help supply services employee leasing X 16XX Highway/street construction 2819 Industrial acidic chemicals 2835 Industrial radioactive chemicals 2411 Logging, timber, sawmills, paper mills and pulp mills 811 Logging, timber, sawmills, paper mills and pulp mills 17XX Masonry/stonework X 2011 Meat packing plants 2015 Meat packing plants poultry 2013 Meat packing plants prepared meats 10XX Mining and mineral products 12XX Mining and mineral products 14XX Mining and mineral products 2892 Miscellaneous chemicals explosives 91XX Municipalities general government X 92XX Municipalities public order X 9999 Nonclassifiable establishments X 2621 Paper mills 2911 Petroleum refining 7941 Professional sports teams 41XX Public transportation companies (taxicabs and buses) X 2611 Pulp mills 4953 Refuse systems 7382 Security businesses X 7361 Temporary employment agencies X 42XX Truck drivers X X 49XX Utility (electric and nuclear power) companies (except 4953) X 44XX Water transportation

25 Ineligible industries based on Standard Industrial Classification codes The Standard Industrial Classification (SIC) codes in this list represent industries that are ineligible for Washington National Term Life Plus coverage. Consideration may be given, based on case-specific parameters, to those marked with an X in the Home office column. Contact the worksite underwriting department for more details. SIC CODE HOME OFFICE INDUSTRY 0811 Logging, timber, sawmills, paper mills and pulp mills 2011 Meat packing plants 2013 Meat packing plants prepared meats 2015 Meat packing plants poultry 2411 Logging, timber, sawmills, paper mills and pulp mills 2611 Pulp mills 2621 Paper mills 2819 Industrial acidic chemicals 2835 Industrial radioactive chemicals 2892 Miscellaneous chemicals explosives 2911 Petroleum refining 4953 Refuse systems 7011 Casinos X 7361 Temporary employment agencies X 7363 Help supply services employee leasing X 7381 Armored car services X 7382 Security businesses X 7941 Professional sports teams 9999 Nonclassifiable establishments X ADB EXCLUDED 09XX Commercial fishing, hunting and trapping 10XX Mining and mineral products 12XX Mining and mineral products 13XX Crude petroleum/natural gas 14XX Mining and mineral products 16XX Highway/street construction 17XX Masonry/stonework X 287X Agricultural chemicals 32XX Glass products, including asbestos 348X Ammunition and explosives 41XX Public transportation companies (taxicabs and buses) X 42XX Truck drivers X X 44XX Water transportation 45XX Aviation X 48XX Cable companies X 49XX Utility (electric and nuclear power) companies (except 4953) X 91XX Municipalities general government X 92XX Municipalities public order X

26 APPENDIX B: Rates per $1000 of coverage

27 APPENDIX C: Completing the application FORM WNIC-8000-SI This form is used for worksite sales where GI is not applicable and for all nonworksite sales. Mark the appropriate box at the top before submitting the form. Section 1 This section is used to collect personal and beneficiary information on the main insured. If the employee is applying in the worksite for spouse coverage only, this section does not need to be completed. The occupation field must be completed for worksite and individual sales

28 Section 2 This section is used to collect information about the spouse. Only complete this if the spouse is applying for coverage. Area C must be completed if the employee did not apply for coverage on the same application. Employment is not required for spousal coverage. If spouse is not employed then not employed should be written in the occupation section. If spouse is employed in an excluded industry then they are not eligible for coverage. A spousal social security number is required in the worksite market whenever a signature is also required. If the social security number is unknown then it can be obtained via a spousal signature card. In the individual market the social security number is always required

29 Section 3 This section is not used for worksite sales. Ownership of a worksite policy defaults to the employee. For nonworksite sales, this section is used to designate the owner. Section 4 This section is used to select coverage and show the total modal premium

30 Section 5 This section is used to select the payment method and frequency. Subsections handle worksite and non-worksite options. Section 6 This section should be completed as fully as possible

31 Section 7 This section must be completed for all SI applications. When a question is answered yes, the details should be carefully noted. Without this information, the underwriting department has a difficult time making a determination and may order additional requirements

32 Section 8 In this section, the applicant can authorize Washington National to change the coverage or premiums in order to issue the policy. Section

33 Section 10 This section has two subsections. 1. For worksite sales, the employee and agent/producer are required to sign. The employee is always the owner of both policies. 2. For nonworksite sales, the applicant and spouse must sign if both parties apply for coverage. If a separate owner is designated, that individual must sign for the policy. The agent/producer also signs this section as the witness

34 Section 11 and 12 The HIPAA authorization forms must be completed with every application. For worksite sales, the spouse is not required to sign a HIPAA authorization at time of application

35 Section 13 This section is completed by the agent/producer. FORM WNIC-8001-GI This form is used only when an applicant applies for coverage in a GI group. Most sections are the same as the SI application. Some sections that don t apply to GI cases have been removed to streamlined enrollment. FORM WNIC-8001-EOI This application is used only if the applicant is in a GI group but EOI is needed on an application

36 Insurers and their representatives are not permitted by law to offer tax or legal advice. The general information here was written to support the sales, marketing or service of insurance policies offered by Washington National Insurance Company. Based upon individuals particular circumstances and objectives, they should seek specific advice from their own qualified and duly-licensed independent tax or legal advisers. No one may rely upon or use the information here for the purpose of avoiding any tax or tax penalty that may be imposed by the Internal Revenue Code or other applicable law. For agent information only. This material should not be distributed to the public or used in any solicitation. Policy forms (may vary by state): WNIC-3001R and WNIC-3003R WNIC-3000 and WNIC-3002 Rider series (may vary by state): Accelerated Benefits rider: WNIC-6019 Accidental Death Benefit rider: WNIC-6026 Children s Term Insurance rider: WNIC-6020 Critical Illness rider: WNIC-6022 Waiver of Premium rider: WNIC-6021 Washington National Insurance Company Home Office N. Pennsylvania Street Carmel, IN WashingtonNational.com 2011 Washington National (06/11) TL-BOOK-AGT