WRL Life Insurance Underwriting Guidelines For Products Created After January 2003*

WRL Life Insurance Underwriting Guidelines For Products Created After January 2003* Life Insurance Products offered by: WesternReserveLifeAssuranceCo. ofohio *Does not include WRL Xcelerar Exec MS431096WRL-05/10 ForAgentUseOnly.NotForUseWithThePublic. For Use With The Following Products: WRLXcelerar SM WRLXcelerarFocus SM WRLTermPlus SM WRLForLife SM WRLFreedomAssetAdvisor SM WRLFreedomGlobalIUL SM WRL Freedom Index Universal Life

WRL Life Insurance Underwriting Guidelines Table of Contents Medical Requirements..............................2 Underwriting Criteria for Products...................4 Class Availability.........................12 Underwriting Policies and Procedures................13 Authorized Paramedical Companies.................13 Trial Applications.................................13 Confidential Financial Questionnaire................13 Non Face Face Sales.............................13 Inspection Reports................................14 Personal Hisry Question Interviews................14 Mor Vehicle Reports.............................14 Cash with Application.............................14 Illustrations......................................14 Juvenile Coverage.................................15 Cover Letter (What Include)......................15 Retention and Reinsurance.........................15 Aumatic Issue Limits........................15 Jumbo Limit Definition........................15 APS Requirements................................16 Male Build Table..................................18 Female Build Table................................20 General Financial Underwriting Guidelines...........22 General Underwriting Guidelines for Agent Use........24 1

Medical Requirements In calculating the coverage amount that requires these tests, besureincludethetalamountappliedforwithwrl during the past six months. KEY: A Non-medical B ParamedExam,BCP,HOS C Paramed Exam, BCP, HOS, Resting ECG D Medical Exam, BCP, HOS, Resting ECG E MedicalExam,BCP,HOS,TRD PARAMED Basic Paramedical Exam. Includes medical hisry questions, measured height and weight, pulse, and blood pressure. MED EXAM Medical Docr Exam. Must be arranged through approved paramed companies. HOS(Home Office Urine Specimen) An HOS is required with all medical and paramedical exams. Specimensaregoodfor1yearupage70andgoodfor6 monthsforages71andolder. Term Face Amounts $25,000 $50,000 $50,001 $75,000 $75,001 $99,999 $100,000 $249,999 $250,00 $500,00 UL/VUL Face Amounts $25,000 $50,000 $50,001 $75,000 $75,001 $100,000 $100,001 $250,000 $250,00 $500,00 0-17* A A A A A 18-40 A A A B B Issue Age 41-50 A A A B B 51-60 A A B B B 61-70 B B B B C 71-75 B B B C C 76-80 B B B C D 81-85 D D D D D 2

BCP Testing is performed by ExamOne, Clinical Reference Labs and Heritage Labs. Appointed paramedical services can obtain the BloodChemistryProfile.TheBCPisavenousblooddraw.BCP isgoodfor1yearupage70andgoodfor6monthsforages 71 and older. Resting Electrocardiagram(ECG) and Treadmill (TRD) IfrestingECGandTRDrecordsareavailablefromatest conductedwithinthelast12months,thetestneednotbe repeated. Treadmill(TRD): The facility performing the test should submit the actual tracing our office for review by our Medical Direcr. AtreadmillECGshouldnotbearrangedforanyapplicantwitha hisry of heart disease without receiving authorization from the Underwriting Department. MCAS(Minnesota Cognitive Acuity Screen) Proposed insureds age 71 and older will complete the Minnesota Cognitive Acuity Screen which screens for cognitive deficits. The MCAS is a simple, short telephone interview, conducted by registered nurses(rns) trained administer the test.themcaswillbegoodfor6months. * Juvenile applications will not be considered until the child is at least 1 month old. Standalone term not available. 00 00 $500,001 $1,000,000 $1,000,001 $2,000,000 $2,000,001 $3,500,000 $3,500,001 $5,000,000 $5,000,001 $9,999,999 $10,000,000 and Higher 01 00 $500,001 $1,000,000 $1,000,001 $2,000,000 $2,000,001 $3,500,000 $3,500,001 $5,000,000 $5,000,001 $10,000,000 $10,000,001 and Higher Call Home Office B B B B B D B B C C C D C C C C C E C C C C C E C C D D D D D D D D D D D D D D D D 3

Underwriting Criteria Class Elite Plus SMOKING STA- TUS Nonsmoker (no bacco or nicotine use for): Nonsmoker 5 years (60 months) Nonsmoker 2 years (24 months) Incidental Cigar Usage Not available Available subject : Admitted on app and/or exam HOS neg for cotinine No more than1 per month BUILD Refer appropriate build table. There are no weight allowances. Refer appropriate build table. There are no weight allowances. CHOL/HDL With or without treatment Up and including: age 70: 5.0 or less; age 71+: 5.5 or less Up and including: age 70: 5.5 or less; age 71+: 6.0 or less CHOLESTEROL With or without treatment 230; disregard if ratio 4.0 or less 260 4

Tobacco Non- Tobacco Tobacco Smoker Nonsmoker Nonsmoker Smoker Not Applicable 2 years (24 months) 2 years (24 months) Not Applicable Available Available subject : Admitted on app and/or exam HOS neg for cotinine No more than 1 per month Available subject : Admitted on app and/or exam HOS neg for cotinine No more than 1 per month Available Refer appropriate build table. There are no weight allowances. Refer appropriate build table. There are no weight allowances. Refer appropriate build table. There are no weight allowances. Refer appropriate build table. There are no weight allowances. Up and including: age 70: 5.5 or less; age 71+: 6.0 or less Up and including: age 70: 6.2 or less; age 71+: 6.7 or less Up and including: age 70: 7.0 or less; age 71+: 7.5 or less Up and including age 70: 7.0 or less; age 71+: 7.5 or less 260 300 or less No limit No limit 5

Underwriting Criteria, cont. Class Elite Plus SUBSTAN- DARD No ratable impairments. No ratable impairments. Flat extras allowed for aviation. (Available on Term and UL only) BLOOD PRES- SURE No current treatment for hypertension. Prior treatment OK if discontinued more than 2 years ago: Up and including age 70: 135/85; age 71+: 145/85 With or without treatment, up and including age 70: 145/85; age 71+: 150/90 FAMILY HIS- TORY No family deaths before age 65 of heart or vascular disease or cancer of either parent or any sibling. Disregard if PI is age 65 or older. No death due heart or vascular disease or cancer of either parent before age 60. Disregard if PI is age 60 or older. PERSONAL HISTORY No heart or vascular disease, diabetes, or cancer (except some skin cancers). No heart or vascular disease, diabetes, or cancer (except some skin cancers). 6

Tobacco Non- Tobacco Tobacco No ratable impairments. Flat extras allowed for aviation. (Available on Term and UL only) No rateable impairments. Flat extras allowed for aviation. (Available on Term and UL only) Table ratings and flat extras allowed. Table ratings and flat extras allowed. With or without treatment, up and including age 70: 145/85; age 71+: 150/90 With or without treatment, up and including age 70: 148/88; age 71+: 152/88 With or without treatment, up and including age 70: 150/90; age 71+: 155/90 With or without treatment, up and including age 70: 150/90; age 71+: 155/90 No death due heart or vascular disease or cancer ofeither parent before age 60. Disregard if PI is age 60 or older. No death due heart or vascular disease or cancer of either parent before age 60. Disregard if PI is age 60 or older. No death due heart or vascular disease or cancer of both parents before age 60. Disregard if PI is age 60 or older. No death due heart or vascular disease or cancer of both parents before age 60. Disregard if PI is age 60 or older. No heart or vascular disease, diabetes, or cancer (except some skin cancers). No heart or vascular disease, diabetes, or cancer (except some skin cancers). No ratable impairments. No ratable impairments. 7

Underwriting Criteria, cont. Class Elite Plus DRIVING HISTORY No more than 2 moving violations in the past 3 years AND no convictions for operating a mor vehicle while under the influence of alcohol or other drugs, or reckless driving in the past 5 years. No more than 2 moving violations in the past 3 years AND no convictions for operating a mor vehicle while under the influence of alcohol or other drugs, or reckless driving in the past 5 years. PRIVATE AVIATION AVOCATION* Available with Aviation Exclusion Rider. Ages 71 and over not available. No participation in recreational activities listed below.* Available with Aviation Exclusion Rider. (May qualify for special no-flat rates as determined by Underwriting.) Flat extra available. (Available on Term and UL only) No participation in recreational activities listed below.* * Avocation: Prohibited activities involving aeronautics (e.g., hang-gliding, ultralight, soaring, skydiving, ballooning, etc.), powered racing, competitive vehicles, mountain climbing, rodeos, competitive skiing, or scuba/skin diving at a depth greater than 75 feet. 8

Tobacco Non- Tobacco Tobacco No more than 2 moving violations in the past 3 years AND no convictions for operating a mor vehicle while under the influence of alcohol or other drugs, or reckless driving in the past 5 years. No more than 2 moving violations in the past 3 years AND no convictions for operating a mor vehicle while under the influence of alcohol or other drugs, or reckless driving in the past 5 years. No more than 2 moving violations in the past 3 years AND no convictions for operating a mor vehicle while under the influence of alcohol or other drugs, or reckless driving in the past 5 years. No more than 2 moving violations in the past 3 years AND no convictions for operating a mor vehicle while under the influence of alcohol or other drugs, or reckless driving in the past 5 years. Available with Aviation Exclusion Rider. (May qualify for special no-flat rates as determined by Underwriting.) Flat extra available. (Available on Term and UL only) Available as qualifies. (Available on Term and UL only) Available as qualifies. Available as qualifies. No participation in recreational activities listed below.* No participation in recreational activities listed below.* No participation in recreational activities listed below.* No participation in recreational activities listed below.* 9

Underwriting Criteria, cont. Class Elite Plus ALCOHOL/ SUBSTANCE ABUSE No hisry or treatment at any time. No hisry or treatment at any time. RESIDENCE/ CITIZENSHIP U.S. resident for past 6 months and 6 months or more each year. U.S. Citizen or permanent residency status (permanent visa or green card). No flat extra allowed. U.S. resident for past 6 months and 6 months or more each year. U.S. Citizen or permanent residency status (permanent visa or green card). No flat extra allowed. FOREIGN TRAVEL No traveling dangerous areas of the world where the State Department has issued travel advisories.* No traveling dangerous areas of the world where the State Department has issued travel advisories.* MILITARY Not available active military duty with alert or deployment orders.* Not available active military duty with alert or deployment orders.* * Unless otherwise prohibited by statute. 10

Tobacco Non- Tobacco Tobacco No hisry or treatment at any time. No hisry or treatment in the past 10 years. No hisry or treatment in the past 7 years. No hisry or treatment in the past 7 years. U.S. resident for past 6 months and 6 months or more each year. U.S. Citizen or permanent residency status (permanent visa or green card). No flat extra allowed. U.S. resident for past 6 months and 6 months or more each year. U.S. Citizen or permanent residency status (permanent visa or green card). U.S. resident for past 6 months and 6 months or more each year. U.S. Citizen or permanent residency status (permanent visa or green card). U.S. resident for past 6 months and 6 months or more each year. U.S. Citizen or permanent residency status (permanent visa or green card). No flat extra allowed. No flat extra allowed. No flat extra allowed. No traveling dangerous areas of the world where the State Department has issued travel advisories.* No traveling dangerous areas of the world where the State Department has issued travel advisories.* No traveling dangerous areas of the world where the State Department has issued travel advisories.* No traveling dangerous areas of the world where the State Department has issued travel advisories.* Not available active military duty with alert or deployment orders.* Not available active military duty with alert or deployment orders.* Not available active military duty with alert or deployment orders.* Not available active military duty with alert or deployment orders.* 11

Class Availability (1). Base Amount(Not Including Rider) must fall in Medical Requirements Category B or higher, for all products except term. (2). Base Amount is $100,000 and up(term Only) (3). Age Limitation Product Specific: Classes may not be available over age 70. Please consult your promotional material. (4). Requirements listed are not all inclusive and other facrs could prevent qualification for a class. Final decision will be made by company underwriter for all classes. 12

Underwriting Policies and Procedures Tobacco Tobacco user is defined as using any bacco products(cigarettes, cigars, chewing bacco, etc.) within the past 24 months. Authorized Paramedical Companies The companies listed below are authorized perform paramedical and medical exams on behalf of Western Reserve Life Assurance Co. of Ohio(WRL). Paramedical and medical examsaregoodfor6months. American Para Professional Systems(APPS) 800-727-2999, www.appsnational.com Examination Management Services, Inc.(EMSI) 800-872-3674, www.exams4web.com ExamOne, Inc. 877-933-9261, www.examone.com Insurance Medical Services, Inc. 877-808-5533, www. Imsparamed.com Portamedic 800-782-7373, www.portamedic.com Superior Mobile Medics 800-898-3926, www. superiorexams.com Trial Applications Ifaprospecthasbeenhighlyratedordeclinedbyanycompany inthepasrifthereisaserioushealthproblem,submitafully completed application, providing all pertinent information for underwriter review. Further requirements should not be ordered unless requested by the underwriter. Do not collect initial premium with application. If you need guidance determine if a trial application is appropriate or have any questions regarding the trial application process, call WRL Underwriting at 800-443-9975. Confidential Financial Questionnaire (U00001-12-97) This is required at time of application and must be submitted with the application. Ages 18-70: Insurance amounts over $2,000,000 Ages 71+: Insurance amounts over $1,000,000 NonFaceFaceSales Certain brokers have gained approval from WRL Marketing engageinnonfacefacesales(nffs).thesesalesareonly permitted on Fixed Products, Term and Universal Life. Variable Universal Life is not available for NFFS. Also, NFFS must include the full, long form application. The WRL Express Application or any other short form application is not permitted. Also, the minimum face amount(term) or minimum specified amount(universal Life) must fall within the range that requires a paramedical exam, blood chemistry profile and urine specimen. 13

Inspection Reports Authorized Inspection Companies The home office will order inspection reports when necessary. The company listed below is authorized perform Inspection Reports (IRs)onbehalfofWRL.InspectionReportsaregoodfor1year. ExamOne, a Quest Diagnostic Company Personal Coverage Inspection Report required for: Ages 18 60: Insurance amounts over $5,000,000 Ages 61 85: Insurance amounts over $2,000,000 AnInspectionreportmaybeorderedatthediscretionofthe underwriter. Business Coverage Inspection Report required for: Ages 0 85: Insurance amounts over $2,500,000 A Business Beneficiary Report should be requested if the application amount is over $2,500,000. AnInspectionReportmaybeorderedatthediscretionofthe underwriter. Personal Hisry Question Interviews Personal hisry interviews can be ordered at the discretion of the home office underwriter up the Inspection Report limits. Mor Vehicle Reports These reports are ordered by Underwriting: Ages1840:allamounts. Ages4170:$1,000,001andUp Ages71andUp:allamounts Cash with Application Money may be taken with an application(s), provided the tal of all amounts applied for does not exceed $1,000,000. Eventhoughweallowmoneybecollectedonapplicationsup and including $1,000,000, the Company s liability is limited the terms of the Conditional Receipt. TheConditionalReceiptcanbeusedonlyifpaymentismadeat thetimetheapplicationissigned.ifmoneyisnotcollectedwith the application, the blank Conditional Receipt must be submitted with the application. Illustrations A signed illustration is required be submitted with all applications in jurisdictions where the NAIC Model Illustration Regulation has been passed and the plan is illustratable. Please ask your WRL Representative for a list of WRL products that are illustratable and the states that have passed the regulation. 14

Juvenile Coverage Standalone Individual Juvenile(Ages 0-17) policies are available on VUL or UL products. Juvenile applications will not be considereduntilthechildisatleast1monthold.pleaseseethe General Financial Underwriting Guide for more information about juvenile coverage. Cover Letter(What Include) The writing producer is an important source of information. Throughthecoverletter,heorshecanprovideanexplanationof thepurposeofthecoverageandthemethodusedestablishthe requested face amount. Specific information should be included regarding the background ofthesaleandthepurposeandneedforthecoverage.besure clarify any unusual aspects of the case. List all coverage amounts in forceandtheamountbeingreplaced,ifany.copiesofanestate planning analysis and available financial statements should accompany the cover letter. Acoverlettershouldbesennallcasesover$5,000,000.Thiswill help expedite handling and result in less inconvenience all parties. Retention and Reinsurance Reinsurance plays an important role in our business. WRL has developed valuable relationships with our reinsurers over the years thatenableusmeetandservicetheneedsofourfieldrepresentatives and clients effectively. TheamounflifeinsuranceretainedbyWRLvariesbytheageand ratingclassoftheclient.amountsinexcessofwhatweretainare reinsured with p-rated reinsurance companies through an aumatic reinsurance pool or facultative reinsurance. Under the aumatic arrangement, the reinsurers are aumatically bound accept our decision and do not review our underwriting papers. Facultative cases do not qualify for aumatic pool arrangements. Theserequiretheentireunderwritingfilebesentthe reinsurance company for the reinsurer s review and decision. Aumatic Issue Limits The aumatic issue limit is the amount of life insurance coverage we can issue without seeking facultative coverage. It includes the amountweretain,aswellastheamountweaumaticallycede our reinsurers. Ourlimitsareamongthehighestintheindustryandhavebeen made possible by the strength and integrity of WRL, our underwriting standards and practices, and the quality of our field underwriting. Jumbo Limit Definition The jumbo limit cannot be exceeded, or we must seek facultative coverage.itisdefinedasthesumofallinforcecoverageplusthe sumofallfaceamountsappliedforwhetherbeplacedornot. 15

Attending Physician Statements Providing complete information, including telephone number, will expeditetheapsprocess.apsswillonlybeorderedbywrl.any brokerdealerorrepthatdesiresorderapssforwrlwillfirst need get prior general home office approval. After general home office approval is granted APSs should only be ordered at the request of the home office underwriter. APS Requirements Face Amounts Age Up and including $1 million $1,000,001 $2,500,000 Over $2.5 million 0 50 NOT ROUTINELY (for cause or for exam within the past 3 months not marked within normal limits)* 51 60 NOT ROUTINELY (for cause or for exam within the past 3 months not marked within normal limits)* NOT ROUTINELY (for cause or for exam within the past 3 months not marked within normal limits)* NOT ROUTINELY (for cause or for exam within the past 3 months not marked within normal limits)* YES Will be required on ALL applications** YES Will be required on ALL applications 61 69 Yes If over 500k OR has seen an MD in the last 3 months (any amount)* Yes Within the last 3 years for preferred classes and has an established PCP Yes Within the last 3 years for preferred classes and has an established PCP 70 and older Yes*** Yes*** Yes * APSs not needed on annual female exams unless exam was noted as abnormal or regular annual exams that are marked within normal limits. (If it is determined that an APS is not needed on recent exams and not marked within normal limits, please amend noting normal results.) ** Individual consideration up and including $5 Million (and under age 40) if applicant has not seen an MD for more than 3 years (manager referral if over $5 Million). *** Ages 70 79, normal underwriting guidelines if seen in the last 24 months by PCP. Age 80 should have seen an MD in the last 12 months for any consideration. 16

Male and Female Build Tables 17

Male Build Table Up and including Age 70 Weight Height Elite Plus Standard 4 6 119 132 139 155 4 7 123 136 144 160 4 8 127 140 149 166 4 9 131 145 154 172 4 10 135 150 159 178 4 11 140 155 164 184 5 0 144 160 169 190 5 1 149 164 175 196 5 2 154 169 180 202 5 3 159 174 186 208 5 4 164 179 192 214 5 5 169 184 198 220 5 6 174 189 204 227 5 7 179 195 210 233 5 8 184 200 215 239 5 9 189 206 221 244 5 10 195 211 227 250 5 11 200 217 233 256 6 0 205 223 239 263 6 1 211 229 245 269 6 2 217 235 251 276 6 3 223 241 257 283 6 4 228 247 263 289 6 5 233 253 269 296 6 6 238 259 276 303 6 7 244 265 283 310 6 8 249 271 289 317 6 9 254 277 295 324 6 10 260 283 302 331 6 11 265 289 308 338 7 0 270 295 314 346 18

Male Build Table Ages 71+ Weight Height Elite Plus Standard 4 6 123 133 143 158 4 7 127 138 148 164 4 8 131 143 153 170 4 9 135 148 158 176 4 10 140 153 163 182 4 11 145 158 168 188 5 0 149 163 173 194 5 1 154 168 179 200 5 2 159 173 185 206 5 3 164 178 191 212 5 4 169 184 197 218 5 5 174 189 203 225 5 6 179 194 209 232 5 7 185 200 215 238 5 8 190 205 221 244 5 9 195 211 227 249 5 10 200 216 232 255 5 11 206 222 238 261 6 0 212 228 244 268 6 1 217 234 250 274 6 2 222 240 256 281 6 3 228 246 262 288 6 4 234 252 268 295 6 5 239 258 274 302 6 6 244 264 281 309 6 7 250 270 287 316 6 8 255 276 293 323 6 9 261 282 300 331 6 10 266 288 306 338 6 11 272 294 313 345 7 0 277 300 319 353 19

Female Build Table Up and including Age 70 Weight Height Elite Plus Standard 4 6 117 128 136 149 4 7 121 132 141 154 4 8 125 136 146 159 4 9 129 140 151 164 4 10 133 144 156 169 4 11 138 149 161 175 5 0 142 154 166 181 5 1 147 159 171 187 5 2 151 164 176 193 5 3 156 169 181 197 5 4 161 174 185 202 5 5 165 179 189 206 5 6 170 184 194 210 5 7 174 189 199 215 5 8 178 195 204 220 5 9 182 200 210 225 5 10 186 205 215 230 5 11 190 210 221 236 6 0 195 216 227 242 6 1 200 222 233 248 6 2 205 228 239 254 6 3 210 233 244 260 6 4 215 239 250 267 6 5 220 245 256 274 6 6 225 250 262 281 6 7 230 256 268 287 6 8 235 262 274 293 6 9 240 267 280 300 6 10 245 273 286 306 6 11 250 279 292 313 7 0 255 284 298 319 20

Female Build Table Ages 71+ Weight Height Elite Plus Standard 4 6 120 132 140 152 4 7 124 136 145 157 4 8 128 140 150 162 4 9 133 145 155 168 4 10 137 150 160 174 4 11 142 155 165 180 5 0 146 160 170 186 5 1 151 164 176 192 5 2 156 169 181 198 5 3 160 174 186 203 5 4 165 179 190 207 5 5 170 184 195 211 5 6 175 189 199 215 5 7 179 195 204 220 5 8 183 200 210 225 5 9 187 205 215 230 5 10 191 210 220 235 5 11 196 216 226 241 6 0 201 222 232 247 6 1 206 228 238 254 6 2 211 233 244 260 6 3 216 239 251 267 6 4 221 244 257 273 6 5 226 250 263 279 6 6 231 256 270 286 6 7 237 261 277 292 6 8 243 267 284 299 6 9 249 273 291 305 6 10 254 279 298 312 6 11 259 285 305 319 7 0 264 290 312 325 21

General Financial The following financial guide is intended assist you in determining maximum coverage. Depending on the amount of coverage requested, WRL may need additional requirements. Inspection Reports and/or Personal Hisry Interviews may be required based on the applicant s age and the amount of coverage requested. When the amount requested exceeds $2,000,000(Ages 18-70) or $1,000,000(Ages 71+) a WRL Confidential Financial Questionnaire is required. Cover letters are helpful for all amounts, but should be included for amounts over $5,000,000, or whenever else indicated in this guide. Personal insurance needs should be a combination of income replacement and estate tax costs less personal coverage already inforce. Purpose Income Continuation Needs Formula and Requirements High Growth Potential/ Facr x Income Professional Ages Regular Limits Occupations Toage35 36-45 46-50 51-55 56-65 66-70 71+ 25 20 15 10 08 05 Individual Consideration 30 25 20 15 10 05 Individual Consideration Thechartaboveisausefulguidefordeterminingthemaximumfaceamountforpersonal coverage income continuation needs. The income stated must be reasonable for the profession or occupation stated. The underwriter will consider the length and level of experience. The income source considered will be that of the proposed insured, not the household income or that of the owner. Remember that earned income includes salary, bonuses, commissions, and deferred compensation. It excludes income from investments. The unemployed spouse may be considered for a percentage of the employed spouse s income. The underwriter will analyze the sources of income, the tal financialsituationoftheclientandtheamounfcoverageinforceandappliedfor determine the maximum face amount WRL can approve. Purpose Key Person Compensation Ratio Formula and Requirements AGE:Toage65 AMOUNT: 7 10 times income President/CEO AGE:Age66+ AMOUNT: 5 times income A cover letter should be provided, for all amounts, explaining the keyperson s value the company, how the coverage amount was determined, whether the keyperson has ownership in the company andthepercentageofownershipandalisfallotherkeypersons, the amount of keyperson coverage and percentage of ownership of the company for each keyperson. Purpose Credir or Business Loan Formula and Requirements Coverage should be on key individuals only(owners, executives) andthefaceamountshouldbenomorethan80%oftheloan amount for individual coverage and tal loan coverage on all partnersshouldnotexceed80%oftheloan.acoverletter should include the purpose, duration of the loan, collateral pledged,itsvalueandtheloaninterestrate.thetermoftheloan mustbe5yearsormore.acopyoftheloanagreementisneeded for loans over $3,000,000. The business should be the owner of the policy. 22

Underwriting Guide The cover letter should include the purpose of the coverage and how the amount was determined. Copies of the estate planning analysis should accompany the cover letter. Third party verification is required for amounts over $10,000,000. Third party verification is defined as atrney signature and supporting documentation and/or CPA or accountant verification and signed statement. Additionally, for amounts over $10,000,000 copies of the last two years financial statements are required. Purpose Estate Tax Planning Formula and Requirements This coverage is designed protect the value of an individual s estateatthetimeoftheirdeath.weneedthepurposeoftheinsurance, a current value of the applicant s estate, which includes a personal balance sheet listing all assets and liabilities, and an estate analysis. After calculating the applicant s net worth we use a base interest rate, times the applicant s life expectancy arrive atafaceamountthatshouldmaintainthevalueoftheestate.we cancoverup50%ofthe projectedfuturevalue. AGE: To age 65 *Expected annual Interest: 7% **Maximum Number of Years: 15 66 75: *Expected annual Interest: 7% **Maximum Number of Years: 10 76 80: *Expected annual Interest: 7% **Maximum Number of Years: 7 *The 7% annual growth rate is used for illustration purposes. This estate appreciation rate should be adjusted, up or down, taking in consideration what is a reasonable growth facr in the current economic environment. Typically, this has been in the 5-10% range. ** Standard Risks only, otherwise the underwriter will use the maximum number of years or the remaining life expectancy projection, whichever is less. Purpose Business Continuation, Buy-Sell Sck Repurchase Purpose Juvenile Formula and Requirements Coverage is designed protect the partners or sckholders in a business and allow for the continuation of that business after thelossofapartner.theamountisdeterminedbytheownership percentage and the fair market value of the business. Premiumsarepaidbythecompanyandtheproceedsareusedbuy out the deceased partner s share of the business. A cover letter should be provided for all amounts explaining how the amount of insurance and the market value of the business were determined.acopyofthebuy-sellagreemenrthedetailsofthe buy-sell agreement should be provided. Please provide the applicant s ownership percentage, the number of other partners, their ownership percentage and the amount of buy-sell coverage on eachpartnerandtheamountandpurposeofallinforcebusiness coverage. All partners must apply for or have in force buy/sell coverage. The underwriter will need the last two years corporate balance sheets and income statements, including NOTES. Formula and Requirements The maximum tal line amount of coverage, inforce and appliedforis$500,000.theparentsorlegalguardianshouldhavea minimumof2timestheamountrequestedonthejuvenile.all siblings should have equal coverage. Parents or guardians must always witness the applications and complete the non-medical declarations. For amounts over $500,000 the underwriter will consideronanindividualbasiswithacoverletterfromtheagent explaining the need and purpose and the overall family insurance estate planning program where the insurance needs of the parentsarefirstcoveredandtheamounfcoverageonallfamily members is consistent with the financial picture of the parents.incomeandnetworthoftheparentswillbeafacrinthe decisionashowmuchcoveragewillbeissued. 23

General Underwriting Guidelines For Agent Use Only Thefollowingguideisprovidedhelptheagentmake tentative quotes only. Final underwriting decision may differ from ratings stated below. Key A=Standard4Tables(or$2.50$5perthousandflatextra*) B=4Tables8Tables(or$5$10perthousandflatextra*) C=8Tables12Tables(or$10$15perthousandflatextra*) Decline * Cancer, drug/alcohol abuse, adverse driving record and aviation usually require flat extras occasionally in combination with a table rating. Please call the Home Office or send in a preliminary inquiry if you have any questions. AIDSorHIVPositive...Decline ALCOHOLISM(AGE30&UP) Currentlydrinking...Decline Years of recovery: 0-2years...Decline 3-5years...C 6years&up...A ALZHEIMER S DISEASE/ DEMENTIA...Decline ASTHMA Mild(Nooralsteroids)...A Moderate(Occasionaloralsteriods)...B Severe...Decline ATRIAL FIBRILLATION 0-5years...B 6years&up...A CEREBRAL PALSY Under10yearsold...Decline 10 years old& up(self-sufficient) Mildonly...A CIRRHOSIS OF THE LIVER Best cases only: Mild liver function elevations No alcohol use No complications- Time since diagnosis: 0-5years...Decline 6-9years...C 10years&up...B 24

CONGESTIVE HEART FAILURE(CHF) Present3yearsrecovered...Decline 4years&up...B CROHN S DISEASE(medication treatment only, stable, no reocurrence and normal weight) Mild- Years since diagnosis: 0-1year...Decline 2years&up...AorB Moderate/severe...B Decline CYSTICFIBROSIS...Decline DIABETES Withratablebuild,kidneyorheartdisease...Decline Diagnosedpriorage20...Decline Others with GOOD control, see tables below: (no complications, A1C < 8.0) DMII(Diet or Oral) Age at Diagnosis Duration in Years 0-5 5-15 21 50 B B 51 65 A A 66years&up A A DMI(Insulin) Age at Diagnosis Duration in Years 0-5 5-15 26 50 B B 51years&up A A DOWN S SYNDROME Toage20...Decline 21-40withmildimpairmennly...C 41yearsandup...Decline DRUG ABUSE Marijuana(Occasionaluse)...A,Tobaccorates All other drugs Years since recovery: 3-6years...B 6years&up...A AnyRelapses...Decline EMPHYSEMA/COPD(Non-smoker) MILD...A MODERATE...B SEVERE...C Decline (Smoker) MILD...B,Tobaccorates MODERATE/SEVERE...C(Tobaccorates) Decline HEART ATTACK, HEART BYPASS, ANGIOPLASTY or STENT Age at onset: 0-39years...Decline 40years&up...B 25

HEPATITISBandC Normalliverenzymes,favorableliverbiopsy...A Normalliverenzymes,noliverbiopsy...B Abnormalliverenzymes...B Decline Successfulresponsetreatment...A HIGH BLOOD PRESSURE(Hypertension) MILD(normalreadings/withmedication)...A MODERATE...B SEVERE...Decline HODGKINS DISEASE 0-3years...Decline 4-9years...C 10years&up...A LEUKEMIA...Decline LUPUS ERYTHEMATOSIS(SLE) Age at time of diagnosis: Under20yearsold...Decline Age20&upwithdiseaseduration: 2-10years...C 10years&up...B SevereDisease...Decline MENTAL RETARDATION Under19yearsold...Decline 19years&up MILD...A MULTIPLE SCLEROSIS MILD...A (lowerendofrangeatlongerdurations0-3yearsvs.3-10years vs.over10years) MODERATE...B (lowerendofrangeatlongerdurations,0-3yearsvs.3-10years vs.over10years) SEVERE...Decline NEPHRITIS/ GLOMERULONEPHRITIS(Kidney Disease) Under15yearsold...Decline 15years&up: Normalkidneyfunction...A Mildkidneyimpairment...B Moderateimpairment...C Severe...Decline NON-HODGKIN S LYMPHOMA(Complete remission) LowGradeLymphoma...Decline Intermediate/High grade Lymphoma 0-3years...Decline 4years&up...C Decline PACEMAKER Under15yearsold...Decline Years since placement: 0-3months...Decline 4months&up...AB PERIPHERAL VASCULAR DISEASE(nonsmoker) Unoperated: Mild...A Moderate...B Operated: Successfully treated with single surgery Time since surgery: 0-6months...Decline 7months&up...A PHLEBITIS/ BLOOD CLOT(NO lung involvement) No complications: 0-2months...Decline 3months&up...A 26

RHEUMATOID ARTHRITIS Mild/Moderate...A Severe&disabling...Decline SLEEPAPNEAbuildup2tables. 0-6monthssincediagnosis...B 7 months& up(good response/compliance with treatment).a STROKE(non-smoker, single attack/ no complications or residuals) 0-1year...Decline 2-4years...B+$5.00x3 5years&up...A TRANSPLANTRECIPIENTS...ALLDecline **QUOTES ABOVE ARE BASED ON AVERAGE CASES - ACTUAL PATHOLOGY MAY INDICATE BETTER OR WORSE CASE** Cancer-mustbeinremissionwithNOhisryoflymphnodeinvolvement, metastasis and NO reocurrence. Rate from the date of surgical removal or completion of chemotherapy&/or radiation. Cancer cases will be quoted on a preliminary inquiry basis. 27

Life Insurance Products offered by: Western Reserve Life Assurance Co. of Ohio Home Office: Columbus, Ohio Administrative Office Address: P.O. Box 5068 Clearwater, Florida 33758-5068 www.westernreserve.com Cusmer Service: 1-800-443-9975 ext. 1975 MS431096WRL-05/10 For Agent Use Only. NotForUse With The Public.