TMK1536 092910Agent training only. Not for sales use. Quality Business & Your Money Updated January 2014 LNL2280 0114Agent training only. Not for sales

TMK1536 092910 Agent training only. Not for sales use.

Quality Business & Your Money

Updated January 2014

LNL2280 0114 Agent training only. Not for sales use.


It’s not how much you write, it’s how much you keep.

Agent training only. Not for sales use.


Quality or Quantity? Both!

• Top Agents in 2012

Agent Production DCN 4 Mo Persistency

Corey Hulsey $378,342 4% 92%

Bill Lacount $226,038 3% 95%

Serge Clouatre $213,304 5% 85%

Chase Brown $208,492 6% 92%

Doug Lavender $206,190 2% 96%

Kay Fordham $201,988 0% 91%


What’s in it for you?

• Make more money by writing quality business

• Make more money by helping your Agents write quality business

• Make more money by retaining Agents


What resources are available to help me write

better business?



Where can I find this information?

This Powerpoint found on Agent Services in the Quality Business section ‘Writing Quality Business Powerpoint’



Quality and Compensation Information is found in the Guide to Growth on Agent Services:


Guide to Growth



Individual underwriting rules found in the Agent Instruction Guide on Agent Services:


Agents Instruction Guide



Worksite guidelines are found in the Worksite Agent Guide on Agent Services:


Worksite Agent Guide



Reports at a Glance and Steps to Control DCN/Persistency are found on Agent Services:


Deadlines



Application Review Deadlines

• Eapps must be in portal by midnight Sunday to be reviewed on Monday

• Eapps signed by customer on Monday must be in the portal by noon Central to be reviewed on Monday

• Paper apps/CODs/Term Conversions, etc., must be turned in to QM by 9 a.m. Central to be reviewed on Monday


Uploading Applications

• Applications should be uploaded from an Agent’s laptop daily

• After seven days, applications will automatically upload from the Agent’s laptop to the portal when the agent syncs their computer

• Communicate with QM if:• Applicant request draft on certain day of week• Don’t have three employees that have purchased

on a new worksite case


DCN



What is DCN?

Declines (<1%): Primarily worksite. Poor training, systems, and oversight.

Cancellations (2%): Primarily individual. Poor training, systems and oversight.

Not-Takens (6%): Primarily worksite. Poor training, systems and oversight.

Company DCN 9% as of January 2014


New DCN and Persistency Reports are published on the 25th of each month.



Agents Direct Pay and Bonus is impacted by

DCN their first 7 months



Agents receive maximum direct pay and 100% of bonus first two months.

Clock starts with first submitted business.



How is DCN calculated?

Declined Premium

Cancelled Premium

Not Taken Premium

Submitted Premium


Example of 8% DCN

$0 Declines

$300 Cancels

$500 Not Takens

$10,000 Submitted Premium


Example: Calculating Individual DCN

FEB25

MARCH24

APRIL24

MAY24

JUNE24

JUNE25

DCNCalculated

1 2 3

Submitted Business

1 2 3

DECLINES, CANCELLATIONS, NOT TAKENS

4

Reports Published

$4,000 $4,000 $4,000

$100 $350 $350 $200

Submitted Business

Declined, Cancelled, Not Taken Premium


Example: Calculating Payroll Deduction DCN

DEC

25JAN

24FEB

24MARCH

24APRIL

24MAY

24JUNE

24JUNE

25

DCNCalculated

1 2 3

Submitted Business

Reports Published

$4,000 $4,000 $4,000

$0 $0 $400 $0

DECLINES, CANCELLATIONS, NOT TAKENS

1 2 3 4 5 6

$0 $600

Submitted Business

Declined, Cancelled, Not Taken Premium


Persistency



Agents Direct Pay and Bonus is impacted by

PersistencyMonths 8 and beyond



Definitions

Persistency: Premium issued and paid four months or longer, divided by total issued business based on policy effective date


Example: Calculating Persistency

OCT

25NOV

24DEC

24JAN

24FEB

24MARCH

24APRIL

24MAY

24JUNE

24JUNE

25

PersistencyCalculated

1 2 3

Submitted Business Reports Published

Paid 4 months or greater

$5,000 $5,000 $5,000

$12,000

Issued Business


Example of 88% 4-Month Persistency

$8,800 Paid 4 Months

$10,000 Issued

Premium


Example: Calculating 13-month persistency

FEB12

MAR12

APR12

MAY12

JUN12

JUL12

AUG12

SEPT12

OCT12

NOV12

DEC12

JAN13

FEB13

MAR13

APR13

MAY13

JUN13

Paid 13 months

$9,000

$4000

$4000

$4000

Issued Business


Example of 75% 13-Month Persistency

$9,000 Paid 13 Months

$12,000 Issued

Premium


How does Quality impact pay & retention?

• 1. Chargebacks

Months Premium Paid

Chargeback %

0-2 months 100%

3 months 90%

4 months 80%

5 months 70%

6 months 60%

Months Premium Paid

Chargeback %

7 months 50%

8 months 40%

9 months 30%

10 months 20%

11 months 10%



• 1. Chargebacks• 2. Direct Pay submit advance commissions



• 1. Chargebacks• 2. Direct Pay submit advance commissions


Agency Owner/Director example

• 6 agents on team• 4 agents on DCN, 2 on Persistency• Agent 1: DCN 10 (Maximum direct pay)• Agent 2: DCN 18 (Direct Pay reduced 10%)• Agent 3: DCN 22 (Direct Pay reduced 30%)• Agent 4: DCN 31 (No direct pay)• Agent 5: Persistency 79 (Direct pay reduced 10%)• Agent 6: Persistency 72 (No direct pay)



• 1. Chargebacks• 2. Direct Pay submit advance commissions• 3. DCN: Bonus multiplier first 7 months



• 1. Chargebacks • 2. Direct Pay submit advance commissions• 3. DCN: Bonus multiplier first 7 months & Persistency

Bonus multiplier month 8 and beyond


Oh by the way … Career Track



• Last but certainly not least…

Renewals Renewals Renewals Renewals RenewalsRenewals Renewals Renewals Renewals RenewalsRenewals Renewals Renewals Renewals RenewalsRenewals Renewals Renewals Renewals RenewalsRenewals Renewals Renewals Renewals RenewalsRenewals Renewals Renewals Renewals RenewalsRenewals Renewals Renewals Renewals RenewalsRenewals Renewals Renewals Renewals RenewalsRenewals Renewals Renewals Renewals Renewals Renewals Renewals Renewals Renewals Renewals


So how does that translate to dollars?



What does an 8% vs. 18% DCN mean to an

Agent in his first seven months with a $1,425 per

week average?



Take Home Pay

8 DCN Agent takes home $8,400 more



So when is a good time to train on Quality?



So when is a good time to train on quality?

• Orientation • Ongoing classroom training –

• New Agents & Agents/Managers DCN above co. avg • Use this powerpoint

• First sale• First DCN report


Individual Business A-250 Application



Top Reasons for Cancels

Cancellations (2%)Outdated CODNon-Sufficient Funds (NSFs)/Bad Bank InformationRequested by customer (QAC)QAC not completedAdditional underwriting call, exam not completeOral swab not completeMedical records not received


What Comes Next?


Summary Sheet



Summary Sheet


What’s turned in to Quality Manager?

• What comes next form• Summary sheet• Voided check• Oral Swab form or bar code sticker


Oral Swab Authorization Form


Outdated CODs



Agent’s Instruction Guide

Review the key points in the Agent’s Instruction Guide:

Save it to the desktop of the Agent’s computer when the Laptop Sales Presentation is installed.


Automatic Decline Conditions

Applicants with the following conditions will be automatically declined:•Terminal Illness

•Lou Gehrig’s Disease or Amyotrophic Lateral Sclerosis (ALS)

•HIV / AIDS or Positive Test to Antibodies for AIDS virus

•Alzheimer’s Disease or Senile Dementia

•Confined to a hospital or nursing facility

•Use of illegal drugs (except marijuana) within a two-year period

•Confined to jail


Medical History Guide

Lists conditions and “general” guidelines


ALX Only

Do not submit an application for standard issue for the following conditions.

An ALX will be considered if the underwriters determine the proposed insured is eligible for coverage.

•Heart / Circulatory / Blood Disorders

•Diabetes and Related Disorders

•Cancers

•Misc. Medical Disorders

•Disability


ALX Only

A complete list of ALX Only Conditions is in the new Laptop survey. Click the ALX Quick Link.


ALX Only


ALX Only

If applicant has one of these conditions, click the ALX button for the correct applicant and the ALX video will play for the Final Expense Need


Quality During the Presentation:

Setting Correct Expectations



Open your eyes and ears



Build Charts

If the proposed insured does not fall within the standard weight limits shown on the chart, the proposed insured will be rated. (Charts CI/GTL/CLP).


“Great news! We have a policy specifically designed for people with

your health conditions.”



Trial Applications

On cases that appear to be medically

questionable, the best thing to do is submit the

application on a trial basis.

• Apps over $1 million

• Collect no payment or app fee

• Does not count for submit for commissions or bonus until issue

• Does not count against DCN if not taken by customer


So why don’t Agents use Trial applications?



Non-Sufficient Funds & Bad Bank Information



OMG, They Said Yes!



For the love of Pete … get a voided check

• Get the check• No check, get bank statement• No statement, look online with customer• No online bank, call the bank with customer to verify


We Don’t Accept

• Debit cards• Credit cards• Savings accounts• Prepaid cards such as Metabank, Green Dot

(MoneyPak), NetSpend (14 or 16 digit account numbers), Chase Liquid, Amex Bluebird

• Don’t take plastic


Upload Applications Daily

• When do most people get paid?• Doesn’t effect your DCN if not paid on it and doesn’t

count toward bonus• Opportunity to make bonus if app changed to trail or

cancelled


View their Driver’s License

• This makes sure they have one• Not an ID card• Don’t use the Height or Weight on the Driver’s

License


Initial Draft

Initial Bank Draft happens first business day after upload to home office.

That’s why the language in the What Comes Next form say the draft will occur in the “next couple of days” because agents don’t know when the app will leave the portal. And depending on when it is uploaded and what bank it’s being drafted from, it may take an additional day.


Draft Dates: Choose one between 1st – 10th

The date selected in the eapp is for the second and subsequent drafts.

What day of the month do most people get paid?

Only offer a date between the 1st and the 10th. The customer never has to worry about getting drafted twice in the same month.


What Comes Next?


Bank Verification Script


Requested by Customer



QAC Not Complete



What Comes Next?


Pending QAC Script


Additional Underwriting Call or Exam not complete



Underwriting Requirements Chart


What Comes Next?


Oral Swab Not Complete



Underwriting Requirements Chart

When is the Agent required to get an Oral Swab?


Oral Swab Kits

No excuse for not getting an Oral Swab:

•Review Oral Swab Training Video on www.libertynational.com Agent Services

•Mail kits immediately. Heat can destroy sample.


Oral Swab Form

• Barcode should have been entered in the e-app• No Oral Swab bar code?

• Do not upload app from portal until received


Oral Swab Authorization Form


Medical Records Not Received



Solidifying the Sale: Last 3 Minutes in the Home



Every Customer Must Clearly Understand

The last three minutes of every sale is where quality business is nailed down. Every customer must understand these things to avoid cancellations.

•They must complete the QAC call•They may need to complete an exam •Their application can be issued as applied for, rated, modified or declined•How much they are paying•When it’s coming out of their checking account


What Comes Next?


Use the Closing Script


Surprises Kill All Deals



Quality After the Submit



Provide Good Customer Service

• Return Phone Calls• Answer questions• Do what you said you were going to do


Worksite



Better Prospecting



Worksite Agent Guide


Eligible Industries


Why would an industry be ineligible?

• Poor quality business:• High turnover• Inability to pay bill

These guidelines are in place to protect Agents and Managers!


Why can’t employers pay premiums?

• Our products are exempted from complying with certain requirements mandated by the Employee Retirement Income Security Act (ERISA) safe harbor. However, in order to maintain that exemption, we must comply with the safe harbor rules, one of which is that the employer cannot purchase or pay for the coverage.


Approval Required Industries


Eligible Employees


Employers with less than 10 employees

• Just because you can, doesn’t mean you should.

• Key questions to ask:• Does the business have a bookkeeper/accountant?• If not, who writes the checks?• Is the business doing any other deductions or will

ours be the first?• Is it all family members?


Employers with less than 10 employees

• Just because you can, doesn’t mean you should.


Worksite Approval Paperwork



Use the Electronic Packet

• Value of Electronic Packets• No omissions • Completes duplicate info• Sets correct enrollment,

deduction, and effective dates• Gives reminder to get roster


Reviewing the Packet



• Number of eligible employees. Must be at least three. The smaller the case, the more diligent QM has to be getting first bill paid.

• The more contact info, the better. Owner is not always best person to verify roster.



• 4. Any mode selected other than Monthly requires a conversation with the Agent/Manager

• 8. Make sure dates are correct on paper packets


Better Enrollments



Employee Not Eligible



Worksite Reasons for Declines

Declines• Ineligible employee


Every Agent Must Have…

• Roster• And know how to read it!


How to Read the Roster….


So what do we do …

• When an employee approaches us?• When they are on the roster but not eligible?• When they are not on the roster at all?

• The employee’s word carries no weight. • It only matters what’s on the roster.

• Note: Employees are eligible if they hit their 6-month or 1-year mark during the enrollment period.


Worksite Reasons for Declines

Declines• Only 1 policy per family or individual• Amount exceeds limits• Ineligible dependent• Dependent not eligible without employee

coverage


Marketplace Bulletin

Face AMT: Face amount of the policy. Group Term.



Face AMT: Face amount of the policy. Career Life Plus



Face AMT: Face amount of the policy. Cash Cancer



ADB: Amount of Accidental Death Benefit.

Example 1


ADB Examples

ADB: Cannot exceed $300,000

Example 1


ADB Examples

ADB: Cannot exceed $300,000



State Specific Exceptions: Group Term


Group Term No. 9

• Only question on Group Term that can be answered ‘yes’ and be issued standard

• Can only be ‘yes’ for high blood pressure• HBP must be controlled (140/90)


Collecting phone numbers on the eapp…

• Only reason we would call a Worksite customer is if they have left their job. So why would we only collect an office number?


Re-Enrollments



Every Agent Must Have…

• Roster• Worksite Management Information Report (AL915)

for re-enrollments• And know how to read them!


Worksite Management Information Report

Re-enrollments: Is the business paid current? If not, don’t re-enroll until business has paid current.





PLN Column: This is the Plan Code for the policy.• Found in Policy Identity and Prefix Book found in

the Quality Section of Agent Services

Common Codes

E09: Group Term 100

E13: Group Term PU65

1U Series: Career Life Plus

HAM: Accident Protector Max

5K Series: Cancer Care

LS: Cash Cancer


Solidifying the Sale: Last 3 Minutes



Every Employee Must Clearly Understand

The last three minutes of every sale is where quality business is nailed down. Every employee must understand three things to avoid Not Takens.

•What did I buy?•How much does it cost?•How often does it come out of my check?


Needs Planner


Surprises Kill All Deals



Relationship With The Bookkeeper



Enrollment PeriodNovember

Deduction PeriodDecember

Effective PeriodJanuary

LateFebruary

22

Bills Mailedor E-mailed

10-11

EnrollmentConducted

30

Verify PDAuthorizations

Delivered

1

$401

Bill Due

2-3

VerifyDeductions

Started

2

10

VerifyBill

Received

3

16

LateE-Mail

From HO

1

LukeInvolved

19

CommissionChargeback

30

NotTakenStatus

------------LettersMailed

The Three Periods of Worksite

$105

Premiums DeductedFrom Employee Paycheck

$1012

$1019

$1026


Relationship With The Bookkeeper


Setting it up right …

• When securing the paperwork, use the points to remember to get owner buy-in on seeing all employees


Using the Points to Remember


PD Authorization


PD Authorization


Worksite Case Checklist

• Follow-up, who is responsible, date completed


Email From Home Office

• Sent on 16th of month


Red Alert

• PD01001: Franchise Initial Premium Unpaid (Daily)


The Worksite Timeline

49 days late

Policies lapse, agents and managers charged back commission, polices show as lapsed in transaction register

60 days late

Letter generated from the Home Office to all policyholders and Employer


Letter Customers Receive


Letter Employer Receives


The Worksite Timeline

After 60 Days

Case must go through reinstatement process requiring all back premiums and letter from business stating premiums have been continuously deducted, no claims have been filed, and the employer understands Liberty will not reinstate their policies if this happens again.


What happens every week?

• Last week of January• Were authorizations for January enrollments

turned in to bookkeeper?• First week of February

• Did deductions start for January enrollments?• Second week of February

• Did December enrollments receive first bill?• Third week of February

• Are all cases paid for February? (Use Worksite Management Information AL915 or Worksite List by Franchise AL04)


Agency Owner: Red Alert

• AL040001: Worksite List By Franchise (Saturdays)


Agency Director/Agent: Red Alert

• AL915: Worksite Management Information Report


Impact of Not-Takens

• This is what it looks like on a production report when a worksite case is not taken


DCN Detail Report Example



Ongoing Training

Agent Services, Quality Business Section•This Powerpoint•Worksheet (Blank & With Answers)


It’s not how much you write, it’s how much you keep.



Avoiding Adverse Business



Top Adverse Issues

• Not sending an email to [email protected] before submitting personal business

• Repeated bad banking information and/or NSFs• Same address or bank account as the Agent or

another Agent• Wrong height/weight or birthday• Writing ineligible employees that are not on

roster


Personal Business

In the E-app, the question reads “Are you a member ofthe Agent’s immediate family?”

So who is immediate family?Agent, Spouse, Mother, Father, Brother, Sister, and Children Agents may submit an app on immediate family membersprovided an e-mail is sent in advance [email protected]

Commissions are paid into the commission account. No submit advance or bonus will be paid on personal business.

Documents

TMK1536 092910Agent training only. Not for sales use. Quality Business & Your Money Updated January 2014 LNL2280 0114Agent training only. Not for sales