T r a n s a m e r i c a E m p l o y e e B e n e f i t s Leading Producers Group
Table of Contents How to Become an LPG Member Page 1 Levels and Privileges of LPG Membership Page 2 LPG Elite Page 3 LPG President s Club Page 3 LPG Marketing Allowance Program..............Page 4 New Group Marketing Allowance Page 4 LPG 2014 Rome Italy Page 6 Notes Regarding 2014 Rome, Italy Convention Special Qualifications Page 8
How To Become An LPG Member In order to qualify for the rewards of LPG membership, you must achieve specified production thresholds. Managing General Agents (MGA) and General Agents (GA) are required to have $1,000,000 in new first-year submitted annualized premium. Producers are required to have $200,000. Personal producing GAs can qualify as Producers; however, their personal premium cannot be combined to meet the GA qualification. For example: Joe Agent owns ABC Brokerage. ABC Brokerage s first year premium credit is $800,000. Joe Agent s personal premium is $300,000. Therefore, Joe Agent qualifies for LPG membership but ABC Brokerage does not. Eligibility for LPG membership is determined at the end of each calendar year. Unless otherwise noted, you will receive 100% credit on first-year, submitted annualized premium for the following products:* G Accident G Cancer G Term Life G Disability G Universal Life G Vision G Critical Illness G Dental G Limited Benefit G Supplemental Out-of-Pocket Hospital Indemnity** medical Expense G Whole Life G Long Term Care*** G LifeLock** Note: Even if you qualify for LPG status, the perks of LPG membership, including but not limited to annual meetings, interest forgiveness on advances, reimbursement of non-resident license and appointment fees, the producer stock purchase plan, and marketing allowances are privileges and not rights that may, at the option of TEB, be changed, withheld, or withdrawn. Transamerica reserves the right, in its sole discretion, to modify or terminate the LPG program at any time. * The sale of TEB products not listed above will not count toward qualification. List is current as of November 2011. In the sole discretion of TEB, qualifying products may be changed during the eligibility period. ** Production credit for TransChoice Plus group limited benefit hospital indemnity insurance, TransSmile dental insurance, and LifeLock is counted at 50% of first year submitted annualized premium. *** Long Term Care production only counts toward qualification for the LPG Convention. It will not be used to determine marketing allowances, interest forgiveness, license or appointment fee reimbursements. Definitions: MGAs/GAs are appointed to recruit, train and supervise qualified individuals and entities as agents, and to personally, and through agents established under the contract, solicit and procure business. Producers are appointed to personally secure and procure business. They have no supervisory responsibilities. 1
Here are the Levels and Privileges of LPG Membership: Leading Producer Group Annual Meetings LPG Convention Held every other year, this trip is equal parts networking, relaxation and fun. These exclusive meetings prove beyond a doubt that your hard work has paid off. Transamerica Employee Benefits hosts a meeting like none other you ll stay at luxury resorts at some of the most popular vacation destinations in the world, meet other top producers, enjoy world-class golf, and gain insights to help you position yourself for continued success.** Producer Only Meeting This meeting is held in the years between LPG Conventions. Held at resort locations, this is our opportunity to tell you about new products and services, trends in our industry and provide you with networking opportunities to advance your sales with TEB. TEB will pay all expenses for our top 75 producers to attend this meeting. Others will be invited on a cost-share basis. Interest Forgiveness on Advances It takes money to make money. In order to help make this adage a reality for our top producers, TEB will forgive the interest on commission advances to an LPG member for up to nine months if that LPG member achieves a first-year persistency rate of 75% or better. Having new case funding when you need it is another way LPG membership sharpens your competitive edge. Producer Stock Purchase Plan You can take stock in us - literally. As one of our top producers, you become eligible to participate in the Producer Stock Purchase Plan by redirecting a certain amount of your commissions each month to purchase the common stock of AEGON NV. If you receive at least $250 in monthly commissions, you can choose to redirect either 2% or 4% of your first-year commissions (10% or 20% if renewal commissions) each month towards the purchase of AEGON stock. Additional information about this program can be obtained from the TEB Commissions Department. New Group Marketing Allowance If you write more than 10 new groups with us each calendar year then, as an LPG member, you can qualify for our New Group Marketing Allowance. Please see the chart on page 4 of this guide for specific guidelines. **See page 4 for qualification requirements 2
LPG Elite A producer must satisfy these additional requirements to qualify for LPG Elite status. Managing General Agents (MGA) and General Agents (GA) are required to have $1,500,000 in new, paid annualized, first-year premium. Producers are required to have $500,000 new, paid annualized, first-year premium. LPG Elite members qualify for all the privileges of the Leading Producers Group as well as those listed below. Reimbursement of Non-Resident License and Appointment Fees Are non-resident licenses and appointments sometimes required to sell business? Yes. Are they a required expense? Not necessarily. TEB will reimburse fees for an LPG Elite member s personal yearly non-resident license and TEB appointment fees*. We will reimburse your fees upon receipt of business and a copy of your proof of payment. You must write business with TEB in the state for which you seek fee reimbursement. Reimbursement requests should be sent to your Client Relationship Manager for approval. What an easy way to save hundreds of dollars each year! Annual Marketing Allowance Based on your level of paid annualized production, you may qualify for an annual marketing allowance. This allowance will be paid out in March of each year and will be based on your total paid production during the preceding calendar year. Please see schedule on page 5 of this guide for details. LPG President s Club This is the top LPG membership available. Only the Best of the Best gain entry. A producer must satisfy the following additional requirements to qualify for LPG President s Club status. Managing General Agents (MGA) and General Agents (GA) are required to have $2,000,000 in new, paid annualized, first-year premium. Producers are required to have $1,500,000 new, paid annualized, first-year premium. In addition, both MGA s and producers must have a history of consistently writing new group s with TEB, writing at least 2 new cases a year or having at least 5 current, active cases with TEB. As an exclusive member of the LPG President s Club, you are eligible for all LPG and LPG Elite privileges outlined above, as well as qualifying for a very special pre-lpg convention trip. We will take this group for an advance 3 day, 2 night stay to our convention destination. You will stay at an even more exclusive hotel and be able to spend time with some of our Senior Management team. For our LPG 2014 trip, the LPG President s Club members will be invited to join us in Florence, Italy. * Transamerica Employee Benefits will only reimburse license and appointment fees for Transamerica Life Insurance Company and Transamerica Financial Life Insurance Company. 3
LPG Marketing Allowance Program *** As a member of LPG Elite or LPG President s Club, you may qualify to receive the following marketing allowance. The allowance amount is based on your paid production level, as follows: New, Paid Annualized Premium Credits Required Amount of Marketing Allowance $500,000 to $1,500,000 $5,000 $1,500,001 to $2,500,000 $10,000 $2,500,001 to $5,000,000 $30,000 $5,000,001 + $6,500 for each $500,000 of paid annualized premium credit If you are an MGA/GA and someone in your downline qualifies for the marketing allowance, the amount of their marketing allowance paid to them will be deducted from your allowance. MGA/General Agent New, Paid Annualized Premium Amount of Marketing Allowance Total MGA/GA $5,500,000 $71,500 Agency Production Two Producers qualify for $500,000 (each) $10,000 allowance ($5,000 each) MGA/General Agent Award $61,500 New Group * Marketing Allowance Number of new groups each year Amount paid for each new group 10 to 15 $150 16 + new groups $200 The New Group Marketing Allowance is a retroactive allowance. If you submitted a total of 10 new groups in the prior calendar year, you would receive a total of $1,500. The maximum New Group Marketing Allowance you can earn is $5,000 per calendar year. Definitions: MGAs/GAs are appointed to recruit, train and supervise qualified individuals and entities as agents, and to personally, and through agents established under the contract, solicit and procure business. Producers are appointed to personally secure and procure business. They have no supervisory responsibilities. Vision, Long Term Care and Legal Access Plan production does not count towards the marketing allowance or the new group marketing allowance. TransChoice Plus, TransSmile and LifeLock production credit is counted at 50% of first year paid annualized premium. Marketing allowances are only payable to active producers as of the date that they are paid. 4
The hard work and unmatched success of our extraordinary producers has helped to transform Transamerica Employee Benefits (TEB) into an industry leader and one of the fast growing carriers in the voluntary group benefits marketplace. But, your hard work doesn t go unnoticed. As a member of TEB s Leading Producer Group, you can now be rewarded for your remarkable success as a part of our exclusive alliance of top achievers. Transamerica s LPG rewards includes perks like stock purchase plans, marketing allowances and reimbursement of licenses fees. Your stellar performance can also take you to some of the most sought-after vacation destinations in the world. For LPG 2014, Transamerica is planning an unforgettable trip to Rome, Italy, capital of the famed Roman Empire and home to The Vatican City. On our trip to one of the world s most popular cities, you can visit must-see attractions like The Sistine Chapel, Galleria Borghese and St. Peter s Basilica, along with ancient wonders like The Colosseum, The Pantheon and the Arch of Titus. Of course, when in Rome you must do as the Romans do. That includes discovering local cafes, shops, theaters and entertainment venues, where you can enjoy great food, entertainment and world-famous wine and art. And don t forget to tour the charming Roman neighborhoods and streets that make this Mediterranean city an unforgettable vacation spot. Join us in Rome, Italy in 2014, where you ll find LPG is no ordinary reward. 6 6
Notes Regarding 2014 Rome, Italy Convention Special Qualification ** QUALIFICATIONS ARE LISTED BELOW. Qualification Level Qualification Period MGA 10/01/11 9/30/13 (2 years) Personal Producing GA & Producers 10/01/11 9/30/13 (2 years) Annualized Submitted Premium to Qualify $2,000,000*** $500,000*** For MGAs, $2 million earns one trip and each additional $2 million earns another trip up to a maximum of five trips per agency. Again, there is no minimum case limit. For MGA s appointed January 1, 2013 and after the qualification amount is $1,000,000 submitted annualized premium. For Personal Producing, GA and Producers appointed January 1, 2013 and after, their qualification amount is $300,000 submitted annualized premium. * A new group is defined as a group that has never had a master policy or group billing with Transamerica Employee Benefits previously. ** Because of the cumulative nature of the Rome meeting requirements, it is possible to qualify for LPG and other LPG privileges, but not qualify for the trip. The qualification period will be the accounting months of October 2011 through September 2013. Only products and services used for LPG eligibility will qualify for convention credits. Information provided here is intended as an overview of qualification requirements. All trips are by invitation only to producers in good standing, as determined in TEB s sole discretion. For more information, please contact your Regional Marketing Center. *** Production for TransChoice Plus group limited benefit hospital indemnity insurance, TransSmile dental insurance and LifeLock is counted at 50% of annualized premium. Long Term Care production only counts toward qualification for the LPG Convention. It will not be used to determine stock options, interest forgiveness or license and appointment fee reimbursements. Trips are non-transferrable, however, in special circumstances TEB may allow a substitution. Once a trip has been confirmed and air travel has been booked, if someone has to cancel, there will be no substitution. 8
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