The best just got better!

82191 05/03 1

GE Financial

For Representative Use Only: Not for Public Use or Distribution

The best just got better!

Privileged ChoicePrivileged Choiceand and

Classic SelectClassic Select

Producer Product Training

sm

sm

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GE Financial

82191 05/03

Training Disclaimer

The following slides constitute a complete legal and compliance approved training program. Removal of slides to shorten the

existing training program is acceptable. However, no changes to any slides or use of any slides individually

is permitted without resubmission to GE legal and compliance review.

The following training program is subject to variation by state and does not include all state variations. For state

specifications, please refer to the brochure.

Strict adherence to this policy is required.

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GE Financial

82191 05/03

Training Overview

Product Overview 30min

High Level Positioning 30min

Features and Benefits 2 hrs

Plan Designs 2 hrs

Submitting an Application 45min

Underwriting 45min

Claims 45minTotal Training Time 7hrs 15min

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GE Financial

82191 05/03

PRODUCT OVERVIEW

5


GE Financial

82191 05/03


Consumers

GE Financial

-Privileged Choice-

-Classic Select-Distribution

ChannelA Portfolio Built on Shared Goals

and Long-Term Viability!

Product Goals

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GE Financial

82191 05/03

To bring “state of the art” answers for the increasing Baby

Boomer market To help our producers remain competitive To address the ever changing regulatory and care delivery

environment Market Economics

Long Term Price Stability & Product Competitiveness

Why Bring New Products to Market?

New Product

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GE Financial

82191 05/03

Size of Opportunity Today

Demographic Age WaveTidal Wave of 76 Million Baby

Boomers Coming

$13 Million LTC Premium Potential Per Day!!

$64,342,800,000 Market

x 90% Haven’t Bought***

$58 Billion Untouched

• Baby Boomers Are Aging

• Every 7 Seconds Another Turns 50

• And, 60% of Them LTC Eligible

61,000,000 People Over 50 Years Old*

x 60% Eligible for LTC**

x $1758 Average Annual Premium

$64,342,800,000 A Year Market

• People Are Living Longer

• 26% of U.S. Population Over Age 65

Being Siphoned Through An Eye Dropper

An Ocean of Opportunity

* 2000 Census Bureau** 1998 Life Plan Inc. study*** February 12, 2001 ACLI Statistics

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GE Financial

82191 05/03

…and the market continues to GROW!

Opportunity

105 Million More Potential Buyers in The Pipeline!

In 2000, the baby boomer was 36-54 years old.

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GE Financial

82191 05/03


What’s Good for the Consumer?

The Consumer

Flexibility (a la carte options) and More Choices!

Customization to meet Price and Value Needs

History of Rate Stability

Improved Contract Language

Prevailing expense limitations removed

More liberal eating definition (ADL)

More robust Home Health Care provision

Liberalized Assisted Living Facility definition

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GE Financial

82191 05/03

More Choices = More Sales

What’s Good for Distribution?

The Producer

Tools to Help You Sell Ease of Doing Business Customized to client needs Makes competitive comparisons easier…Apples to Apples Meets Competitors Head On…Raises the bar

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GE Financial

82191 05/03

HIGH LEVEL POSITIONING

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GE Financial

82191 05/03

Industry Sales

Top Individual LTC Carriers

SOURCE: LIMRA International 2002 and 2003 LTC Sales

*Includes Bankers Life & Casualty, Conseco Health Insurance Co., Conseco Senior Health Insurance Co., and Pioneer Life Insurance Co.

**Includes Fortis Companies

*** Includes Life Investors Insurance. Co. of America, Monumental Life Insurance Co., AUSA Life Insurance. Co., Inc., Peoples Benefit Life Insurance Co. Transamerica Life Insurance Co., Transamerica Occidental Life Insurance Co and Transamerica Occidental of New York.

**** Formerly Aid Association for Lutherans & Lutheran Brotherhood

Company2002 Annualized

Premium In-Force (MM)

1) GE

2) CONSECO*

3) Hancock**

4) C N A

5) Aegon***

6) Penn Treaty

7) UNUM

8) IDS

9) Thrivent****

10) Allianz

$ 1,466.0

874.1

711.5

487.2

430.7

345.2

263.2

249.1

205.3

155.9

2002 New Premium Sales (MM)

$ 248.4

89.3

131.1

75.9

63.2

4.4

64.4

25.4

28.1

41.4

02/01 Growth

1%

(9)%

31%

21%

1%

(91)%

(18)%

(11)%

(7)%

(1)%

2002: $1 Billion in Industry Sales – 5% increase

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GE Financial

82191 05/03

FEATURES & BENEFITS

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GE Financial

82191 05/03

Introducing….Two New Products!!

Two Products…the best just got better!

Privileged Choice

- Comprehensive Coverage

- Inclusive Plan

Flagship

Product!

Classic Select

- Comprehensive Coverage

- Modular Design

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GE Financial

82191 05/03

Benefit Eligibility

Help is needed with at least 2 of the 6 Activities of Daily Living and

expected to be needed for at least 90 days

Bathing

Dressing

Continence

Toileting

Transferring

Eating (New less restrictive definition!)

- OR-

Severe cognitive impairment (e.g. Alzheimer’s)

New less restrictive eating ADL definition!

One qualifies for covered benefits when…

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GE Financial

82191 05/03

Monthly/ Daily Maximum

ChoiceChoice

Ages 18 - 79: $30 - $250 daily

Ages 80 - 84: $30 - $150

Increments of $10

Ages 18-79: $1.500 to $12,000

Ages 80 - 84: $1,500 to $6,000

(2, 3, & 4 year benefit plans only)

Increments of $100

Privileged ChoicePrivileged Choice Classic SelectClassic Select

Ages 18 - 79: $50 to $400

Ages 80 - 84: $50 to $200

Increments of $5

Monthly Maximum Daily Maximum

Reduced Home Care Option

Can choose to reimburse up to 50% of Daily Maximum

Not available with all optional riders

Daily Maximum

Added Cost Option

Monthly Maximum

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GE Financial

82191 05/03

Benefit Multiplier- Individual Plan

ChoiceChoice Privileged ChoicePrivileged Choice

730 (2yrs)

1095 (3yrs)

1460 (4yrs)

2190 (6yrs)*

Unlimited*

Individual PlanDays


*Not available for individuals ages 80 to 84.

24 (2yrs)

36 (3yrs)

48 (4yrs)

60 (5yrs)*

72 (6yrs)*

96 (8yrs)*

120 (10yrs)*

Unlimited*

Individual PlanMonths

730 (2yrs)

1095 (3yrs)

1460 (4yrs)

1825 (5yrs)*

2190 (6yrs)*

2920 (8yrs)*

3650 (10yrs)*

Unlimited*

Individual PlanDays

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GE Financial

82191 05/03

Benefit Multiplier- Shared Plan


1095 (3yrs)

1460 (4yrs)*

2190 (6yrs)

2920 (8yrs)

4380 (12yrs)

Shared PlanDays*


*Not available for individuals ages 80 to 84.

48 (4yrs)

72 (6yrs)

96 (8yrs)

120 (10yrs)

144 (12yrs)

192 (16yrs)

240 (20yrs)

Shared PlanMonths*

1460 (4yrs)

2190 (6yrs)

2920 (8yrs)

3650 (10yrs)

4380 (12yrs)

5840 (16yrs)

7300 (20yrs)

Shared PlanDays*

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GE Financial

82191 05/03

Lifetime Maximum Benefit (Personal Benefit Account)

How to calculate…

Monthly/DailyPurchase Maximum

Benefit Multiplier

x = Initial Lifetime Maximum (Personal Benefit Account)

Monthly vs. Daily (Lifetime Maximum)

Monthly Purchase Maximum = $1500 Daily Purchase Maximum = $50

Benefit Multiplier = 72 (6yrs) Benefit Multiplier = 2190 (6yrs)

Lifetime Maximum = $108,000 Lifetime Maximum = $109,500


X X

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GE Financial

82191 05/03

Classic Select Without Optional Monthly Maximum

$50 Daily Maximum Without Monthly Maximum

Home Care

Total cost incurred for covered services in June = $1,325

Eligible reimbursement for all covered costs = $800

June

Sun Mon Tue Wed Thu Fri SatActual Cost

Reimbursable Amount

150$ -$ 100$ -$ 50$ -$ 75$ 375$ 200$ x x x x75$ -$ 50$ -$ 50$ -$ 75$ 250$ 200$

x x x x200$ -$ 75$ -$ 50$ -$ 75$ 400$ 200$ x x x x75$ -$ 75$ -$ 75$ -$ 75$ 300$ 200$

x x x x

1,325$ 800$

x = up to the daily reimburseable amount

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GE Financial

82191 05/03

Classic Select With Optional Monthly Maximum

$50 Daily Maximum With Monthly Maximum ($1,500)

Home Care

Total cost incurred for covered services in June = $1,325

Eligible reimbursement for all covered costs = $1,325

June

Sun Mon Tue Wed Thu Fri SatActual Cost

Reimbursable Amount

150$ -$ 100$ -$ 50$ -$ 75$ 375$ 375$

75$ -$ 50$ -$ 50$ -$ 75$ 250$ 250$

200$ -$ 75$ -$ 50$ -$ 75$ 400$ 400$

75$ -$ 75$ -$ 75$ -$ 75$ 300$ 300$

1,325$ 1,325$

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GE Financial

82191 05/03

Elimination Period


Home and Community Care

0 Days

Facility Care

50-days 100-days

When you use a Privileged Care Coordinator, the Elimination Period is reduced 1 day for every day Home Community Care benefits are received


0 Days

Facility Care

30-days 90-days 180-days

When you use a Privileged Care Coordinator, the Elimination Period is reduced 1 day for every day Home Community Care benefits are received


Facility Care


When you use a Privileged Care Coordinator and purchase the Home Care Elimination Period Optional Rider, the Elimination Period is reduced 1 day for every day Home Community Care benefits are received



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GE Financial

82191 05/03

Inflation Protection


Benefit Increase Options

Compound

Equal

None

No Claims Offset


Compound

Equal

None

No Claims Offset



Compound

Equal

None

Claims Offset

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GE Financial

82191 05/03

No Claims Offset vs. Claims Offset$100 Daily Maximum (at the start of the claim)

78,5

66

120,

820

165,

186

211,

770

260,

683

365,

970

482,

048

84,5

07

133,

098

186,

337

244,

567 30

8,15

5

475,

637

722,

675

-

100,000

200,000

300,000

400,000

500,000

600,000

700,000

800,000

2 Year 3 Year 4 Year 5 Year 6 Year 8 Year 10 Year

Tota

l Cla

ims

Pay

able

Ass

umin

g M

axim

um D

aily

Ben

efit

Pai

d un

til a

ll B

enef

its a

re E

xhau

sted

Claims Offset No Claims Offset

7.6%

18.2%

12.8%15.5%

10.2%

49.9%

30.0%

Compound Inflation Protection

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GE Financial

82191 05/03

Restoration of Benefits

Restoration of Benefits restores the depleted portion of the personal benefit account if, after benefits are paid, the policyholder is not benefit eligible for 180 consecutive days

Example – Individual PolicyOriginal policy amount = $146,000Reduced by claims paid ($50,000) to $96,000Restored after 180 days without benefit eligibility- $146,000

How does it work?

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GE Financial

82191 05/03

Available Discounts

ChoiceChoice Privileged ChoicePrivileged Choice Classic SelectClassic Select

25% Discount

Couples Discount

25% Discount

40% Discount

(if 1 policy issued)

(if both policies issued )

Couples Discount

25% Discount

40% Discount

(if 1 policy issued)

(if both policies issued)

Couples Discount

Total Cumulative Discount Opportunity 50%

Preferred Health Discount

10% Discount 10% Discount 10% Discount



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GE Financial

82191 05/03


Preferred Health Discount may be determined at the time of application

Determined by the first 10 questions on the application

For Shared Coverage plans each applicant is eligible for this discount

How does it work?

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GE Financial

82191 05/03

Couples Discount

Married or

“Committed” relationship consisting of all of the following conditions:

• Two people living together for 3 years and

• In a committed relationship as domestic partners or family members and

• Share basic living expenses and

• Not married to each other, or to anyone else or

• Belong to the same generation of the same family

Couples Definition

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GE Financial

82191 05/03

Required Couples Form

Newly revised form required for “committed relationship” (non-marrieds)

• 3 year requirement

Form needs to be submitted with every application seeking applicable couples discounts

Form available for order and in pdf format on the web for download

NEWLY Required

Version

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GE Financial

82191 05/03

Couples Discount

Preferred Health Discount only

Couples Discount only

Both discounts

One IssuedBoth Issued

Separate Policies

10%

25%

35%

10% (each qualifying policy)



*For shared coverage a 40% discount is built into the rates; With the 10% preferred health discount available to each qualifying applicant

Couples Discount Calculations (both people in couple are eligible and apply*)

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GE Financial

82191 05/03

Survivorship


10 year survivorship benefit INCLUDED in the base plan

First 10 years must be claim-free

10 year survivorship benefit INCLUDED in the base plan

First 10 years must be claim-free

Added Cost Option

7 year survivorship benefit without regards to claims


Added Cost Options

2 ADDED Cost Options

10 year benefits without claims

7 year survivorship benefit without regards to claims

Survivorship benefit NOT INCLUDED in the base plan

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GE Financial

82191 05/03

International Coverage


NOT AVAILABLE INCLUDED in the base plan


NOT AVAILABLE

Covers care and support services in a covered facility out-of- country (i.e. outside the United States and its territories)

Covers out-of-country nursing home care

Reimbursement up to 75% of policy’s monthly maximum

Payment limited to 48 months and Lifetime Maximum, but never greater than the policy’s Lifetime Maximum Benefit

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GE Financial

82191 05/03

Facility Benefits/Bed Reservation


Reimburses expenses up to the Daily Maximum

For LTC facility

Reimburses expenses up to the Monthly Maximum

For the following:

Nursing Home

Assisted Care Facility


Reimburses expenses up to the Daily Maximum

For the following:

Nursing Home

Assisted Care Facility

Added Cost Option

Monthly Maximum

Bed Reservations Bed Reservations

50 days per year 60 days per year

Bed Reservations

30 days per year

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GE Financial

82191 05/03

Covered Facilities

Licensed Nursing Homes

Assisted Care Facilities

• 24 hr a day assistance/supervision; and

• 10 or more resident inpatients

AND

• Licensed or Certified

OR

• Other Facilities acting within all applicable laws that meet the following criteria:

• Maintains records for all care and services provided

• Duly licensed physician or nurse on duty or on call at all times

• Employs an awake employee at all times

• Has appropriate procedures for administering prescribed medications

• Provides at a minimum assistance with bathing and dressing

• Provides at a minimum 3 meals a day

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GE Financial

82191 05/03

Home Care Benefit


Reimburses Prevailing Expenses up to the Monthly Maximum

Reimburses Actual Expenses up to the Monthly Maximum


Reimburses Actual Expenses up to the Daily Maximum

NO more prevailing expense language Covered care and support services in the home not normally provided by someone

who resides in the home

• Skilled Services

• Home Health Aides and Personal Care Attendants

• Homemaker Services

• Chore Services

• Community Care

• Hospice Care

• Adult Day Care Privileged Care Coordination Services can be used to coordinate these services

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GE Financial

82191 05/03

Home Care Benefit Breakdown

GE Home Care benefits includes coverage provided by unlicensed/uncertified aides

GE’s Homemaker/Chore Services DO NOT require the services of a trained aide or attendant

Home Care

85% Home CareOf this….

Greater than 60% is care that could be provided by Non-Licensed, Non-Certified, Informal Caregivers who are NOT affiliated with a Home Care Agency

GE Claims Breakdown

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GE Financial

82191 05/03

Caregiver Training


Caregiver Training Caregiver Training

5 x Daily Maximum

20% of the Monthly Maximum


Caregiver Training

5 x Daily Maximum

Training for an unpaid caregiver to care for you in your home

Training can be received while confined to a facility

Expected to enable you to go home

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GE Financial

82191 05/03

Respite Care


Respite Care Respite Care

21 days per year 30 days per year


Respite Care

21 days per year

Care available under the following Benefits:

• Nursing Home

• Assisted Care Facility

• Home Care

Elimination Period does not apply

Respite Care Definition

Short-term care provided to relieve the person who normally provides unpaid care in your home

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GE Financial

82191 05/03

Equipment Benefit


Equipment Benefit Equipment Benefit

50 x Daily maximum 2 x Monthly maximum per lifetime


Equipment Benefit

50 x Daily maximum per lifetime

Benefit pays for expenses incurred for purchase or rental of supportive equipment

Equipment must assist in relieving direct physical need

The plan of care must indicate the equipment benefit will enable home stay of at least 90 days

Examples

• Pumps / devices for intravenous injection

• Ramps for movement within the residence

• Grab bars

• Stair lifts for movement within the home

• Expenses include installation fees, labor and related costs.

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GE Financial

82191 05/03

Shared Benefit Plan


Single Owner

NO RIGHT to Sever

Joint Owners

Split available upon divorce or final separation


Joint Owners

Split available upon divorce or final separation

25% of applicants apply for shared plans

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GE Financial

82191 05/03

PRICING ANDPLAN DESIGNS

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GE Financial

82191 05/03

Pricing Exercise Requires Strong Database, U/W And Claims Experience, Intuition, Discipline & A Sense Of Balance Between

Competing Influences

Disciplined Pricing Process

The Theory

The Reality

Input To Pricing:

ExperienceCompetitionRegulation

Verify Assumptions to be certain they are

reasonable

DeterminePrices & Features

Experience Develops Slowly Need To Price On An Overall Basis Competition Plays A Role Margins for Stability Built Into Pricing Assumptions

Product Pricing Practice

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GE Financial

82191 05/03

Included in Privileged Choice:

Classic Select + about17%

If Customer Prefers 2 or more Riders, Consider the Cost of Privileged Choice

• 0 day Elimination Period

• Monthly Maximum

• 10 Year Survivorship

• No claims offset (Inflation protection)

• International Coverage

• Bed Reservation

• Respite Care

• Equipment

• Care Giver Training

Sample Product Plan Pricing


9% 0 Day Elimination Period

6% Monthly Maximum

Survivorship

15% 7 years

9% 10 years

(15%)* 50% Home Care

% Premium

*can not purchase 0 day EP and Monthly Max with this rider.

Optional Rider

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GE Financial

82191 05/03

Suitability

A Word About Suitability of Purchase

All agents are REQUIRED to determine whether the purchase of long term care insurance is appropriate (suitable) for the applicant

Factors in Making the Determination

The ability to pay for the proposed coverage

The applicant’s goals and needs for the product

The values, benefits and costs of the applicant’s existing insurance

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GE Financial

82191 05/03

Suitability

Suitability Guidelines for Privileged Choice and Classic Select

Purchase of either a Privileged Choice or Classic Select long term care insurance policy would NOT be suitable if:

The applicant has <$10k in annual income or

The applicant has <$20K in assets to protect

The applicant is eligible or about to be eligible for Medicaid

The applicant's only source of income is Social Security

The applicant otherwise has limited assets

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GE Financial

82191 05/03

Premium Comparisons 5-Year 90/100 day Elimination Period, $100 Daily Maximum

Apples-to-Apples includes: GE Classic Select: Mo. Benefit, 0-day HC EP Allianz: Wk HC Prudential: Mo. Benefit Hancock: Mo. Benefit, 0-day HC EP, Cash Benefit MetLife: HC Plus Benefit LBL: Wk HC, Waiver of Premium for HC All Married Apples-to-Apples Rates Include Survivorship

Married Preferred, Compound Inflation

Classic Select

Privileged Choice

40 695 810 688 664 495 584 592 641 50245 710 825 688 733 568 661 626 761 59750 750 870 703 802 623 754 721 857 67255 800 930 794 994 752 906 854 1005 78860 1035 1215 1013 1185 971 1150 1002 1310 102765 1405 1650 1394 1619 1320 1594 1449 1789 140370 2110 2475 2059 2405 1980 2391 2298 2656 208375 3445 4035 3185 3779 3043 3890 3256 3961 310680 5545 6480 4734 --- --- 6163 5153 5724 4489

Age

GE Capital Assurance Allianz: Future Care

Select

Prudential: LTC By Design

John Hancock Custom

MetLife Ideal Lincoln SeniorLinc

Premier

UNUM : Indemnity

UNUM : Re-

imbursement

Base Plan


Classic Select

Privileged Choice

40 862 810 855 852 674 607 749 699 54845 880 825 855 940 774 688 793 830 65250 930 870 874 1028 849 784 913 934 73355 992 930 986 1274 1023 942 1081 1095 85960 1283 1215 1237 1520 1323 1196 1268 1428 112065 1742 1650 1671 2077 1797 1658 1833 1914 150170 2616 2475 2424 3084 2696 2511 2907 2814 220875 4272 4035 3681 4760 4143 4084 4119 4119 323180 6876 6480 5368 --- --- 6471 6519 5838 4579

Age


Select


John Hancock Custom


Premier

UNUM : Indemnity

UNUM : Re-

imbursement

Apples-To-Apples

47


GE Financial

82191 05/03

Premium Comparisons Lifetime 90/100 day Elimination Period, $100 Daily Maximum



Classic Select

Privileged Choice

40 985 1155 898 850 790 800 658 842 66045 1005 1170 904 938 857 906 696 997 78250 1055 1230 922 1026 948 1033 802 1111 87155 1115 1305 1040 1272 1128 1241 949 1290 101260 1485 1740 1358 1517 1512 1576 1114 1683 132065 2025 2370 1856 2073 2121 2184 1610 2300 180470 3040 3555 2727 3078 3113 3276 2553 3466 271875 4940 5775 4172 4838 4760 5328 3618 5231 410380 7950 9300 6165 --- --- 8442 5726 7510 5890

UNUM : Re-

imbursement

UNUM : Indemnity

John Hancock Custom


Premier


Age


Select

Base Plan


Classic Select

Privileged Choice

40 1221 1155 1115 1090 1075 832 833 917 72045 1246 1170 1123 1203 1167 942 881 1087 85250 1308 1230 1145 1316 1290 1075 1014 1211 94955 1383 1305 1292 1631 1536 1291 1201 1406 110360 1841 1740 1658 1946 2058 1639 1409 1834 143965 2511 2370 2224 2658 2888 2271 2036 2462 193170 3770 3555 3210 3947 4239 3440 3230 3674 288175 6126 5775 4821 6093 6482 5595 4577 5440 426780 9858 9300 6991 --- --- 8864 7243 7660 6008

UNUM : Indemnity

UNUM : Re-

imbursement

John Hancock Custom


Premier


Age


Select

Apples-To-Apples

48


GE Financial

82191 05/03

Premium Comparisons5-Year 90/100 day Elimination Period, $100 Daily Maximum


Single Preferred, Compound Inflation

Classic Select

Privileged Choice

40 1251 1458 983 806 647 709 790 733 57545 1278 1485 983 890 743 803 835 762 68250 1350 1566 1005 974 815 916 962 979 76855 1440 1674 1134 1206 983 1100 1139 1149 90160 1863 2187 1448 1439 1270 1397 1337 1497 117465 2529 2970 1992 1966 1726 1936 1932 2044 160370 3798 4455 2941 2920 2589 2904 3064 3025 238075 6201 7263 4551 4589 3979 4723 4342 4527 355080 9981 11664 6763 --- --- 7483 6871 6541 5131

UNUM : Re-

imbursementAge

GE Choice II Allainz: Future Care

Select


John Hancock Custom


Premier

UNUM : Indemnity

Base Plan


Classic Select

Privileged Choice

40 1439 1458 1062 923 819 738 999 733 57545 1470 1485 1062 1019 941 835 1057 762 68250 1553 1566 1085 1115 1032 953 1217 979 76855 1656 1674 1225 1381 1244 1144 1441 1149 90160 2142 2187 1564 1648 1608 1453 1691 1497 117465 2908 2970 2151 2252 2185 2013 2444 2044 160370 4368 4455 3176 3343 3277 3049 3876 3025 238075 7131 7263 4915 5255 5037 4959 5492 4527 355080 11478 11664 7304 --- --- 7857 8692 6541 5131

UNUM : Re-

imbursementAge


Select


John Hancock Custom


Premier

UNUM : Indemnity

Apples-To-Apples

49


GE Financial

82191 05/03

Premium ComparisonsLifetime 90/100 day Elimination Period, $100 Daily Maximum



Classic Select

Privileged Choice

40 1773 2079 1283 1032 987 972 878 962 75445 1809 2106 1291 1139 1072 1100 928 997 89450 1899 2214 1317 1246 1184 1255 1069 1270 99655 2007 2349 1486 1544 1410 1507 1266 1479 115660 2673 3132 1940 1842 1889 1913 1485 1923 150865 3645 4266 2651 2517 2651 2652 2147 2629 206270 5472 6399 3896 3738 3892 3978 3404 3961 310775 8892 10395 5960 5874 5950 6470 4824 5978 468980 14310 16740 8808 --- --- 10251 7634 8583 6732

UNUM : Indemnity

John Hancock Custom


Premier


Age


Select

UNUM : Re-

imbursement

Base Plan


Classic Select

Privileged Choice

40 2039 2079 1385 1182 1250 1010 1110 962 75445 2080 2106 1395 1304 1357 1144 1174 997 89450 2184 2214 1422 1427 1499 1305 1352 1270 99655 2308 2349 1605 1768 1785 1567 1601 1479 115660 3074 3132 2095 2109 2392 1990 1879 1923 150865 4192 4266 2863 2882 3356 2758 2715 2629 206270 6293 6399 4207 4280 4927 4177 4306 3961 310775 10226 10395 6437 6726 7533 6794 6102 5978 468980 16457 16740 9512 --- --- 10764 9657 8583 6732

UNUM : Indemnity

Lincoln SeniorLinc

Premier

John Hancock Custom

UNUM : Re-

imbursement

MetLife Ideal

Age

Allainz: Future Care

Select

GE Choice II Prudential: LTC By Design

Apples-To-Apples

50


GE Financial

82191 05/03

SUBMITTING AN APPLICATION

51


GE Financial

82191 05/03

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

Suitability -

Pers

W'sheet &

State

Third Party

Info

Required

State Form

Required

Application

Not Dated

Application

Signature

Required

Wrong

Application

Agent

Licensing

Agent

Signature

Required

Other

44%

9%7% 6% 6%

2%4%

11%10%

Not In Good OrderChannel Example

NIGO

52


GE Financial

82191 05/03

Application Processing

Benefit selections not completed Discount sections not completed Check amount and premium submitted don’t match EFT not signed for monthly billing Failure to include producer code Wrong form used in state where signed Birthdate and age don’t match Complete information not provided for primary care physician Replacement questions not answered Complete name of insurer not provided Third party name and address information is incomplete Application not dated Signatures not provided Incomplete and/or missing suitability forms (where required)

Most commonly missed items when submitting an application

53


GE Financial

82191 05/03

Coverage Selection Page Changes – Individual

Choice - AL Privileged Choice - AL Classic Select - ALDaily Payment Maximum Monthly Maximum Daily Maximum

Benefit Multiplier (days) Benefit Multiplier (months)Benefit Multiplier (days -

new periods)

Elimination Period 50, 100 Elimination Period 30, 90, 180 Elimination Period 30, 90, 180

Inflation Protection/Benefit

Increases unchanged

Moved below "Home Care," Monthly Benefits," and "Waiver of Home Care Elimination Period."

Not in Choice Not in Privileged ChoiceHome Care Benefits

(50%, 100%)Not in Choice Not in Privileged Choice Monthly Benefits

Not in Choice Not in Privileged ChoiceWaiver of Homecare Elimination Period

Not in ChoiceSurvivorship Benefit (No,

Enhanced)Survivorship Benefit (No,

Basic, Enhanced)Eligible for Preferred Health Discount

Moved below "Eligible for Couples Discount"

Moved below "Eligible for Couples Discount"

Eligible for Couples Discount

Moved above "Eligible for Preferred Health

Discount"

Moved above "Eligible for Preferred Health

Discount"

Not in ChoiceLimited Pay Coverage (None, Pay-to-65, 10-Pay)

Limited Pay Coverage (None, Pay-to-65, 10-Pay)

Premium Payment Mode

Added modal charges; Moved below "Limited

Pay Coverage"

Added modal charges; Moved below "Limited

Pay Coverage"Electronic Funds

TransferMoved to 2nd page of Coverage Selection

Moved to 2nd page of Coverage Selection

Individual Benefit

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GE Financial

82191 05/03

Coverage Selection Page Changes – Shared

Choice - AL Privileged Choice - AL Classic Select - ALDaily Payment Maximum Monthly Maximum Daily Maximum

Benefit Multiplier (days) Benefit Multiplier (months)

Benefit Multiplier (days -

new periods)

Elimination Period 50, 100 Elimination Period 30, 90,180 Elimination Period 30, 90, 180

Not in Choice

Survivorship Benefit (No,

Enhanced)

Survivorship Benefit (No,

Basic, Enhanced)

Daily Payment Maximum Monthly Maximum Daily Maximum

Benefit Multiplier (days) Benefit Multiplier (months)

Benefit Multiplier (days -

new periods)

Elimination Period 50, 100 Elimination Period 30, 90, 180 Elimination Period 30, 90, 180

Not in Choice Not in Privileged Choice

Home Care Benefits (50%,

100%)

Not in Choice Not in Privileged Choice Optional Monthly Benefits

Not in Choice Not in Privileged Choice

Waiver of Homecare

Elimination Period

Inflation

Protection/Benefit

Increases unchanged

Moved to after "Waiver of

Home Care Elimination

Period."

Premium Payment Mode Added modal charges Added modal charges

Electronic Funds

Transfer

Moved to 2nd page of

Coverage Selection

Moved to 2nd page of

Coverage Selection

Shared Benefit

Contingent Selections

55


GE Financial

82191 05/03

UNDERWRITING

56


GE Financial

82191 05/03

Production and Technical Underwriters 27 Telephone Unit 6 Management Staff 3 Technical Unit 5 Full Time Medical Director _1_

42

Global Operations Structure and Staffing

42 Associates

57


GE Financial

82191 05/03

Modified Underwriting• Application Only: Age 54 and Under and Qualify

for Preferred Health Discount• Application and PHI: Ages 55 to 64 and Qualify

for Preferred Health Discount

Full Underwriting• 3 Years Medical Records• Health Interviews: Ages 72-84 and as needed

• 2 Cognitive Screens (DWR & SPMSQ)• Functional Assessment• Health History

Underwriting and Risk Management

Risk Management

58


GE Financial

82191 05/03

Preferred Discount (PD)• Applicant is Eligible for PD if Answered No to Medical

Questions

Field Underwriting Support• Agents’ Manual • Hotline 800-354-6892• Conference Calls

We strive for a high Approval Rate• Decline Review • Case Review Committee


Risk Management

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GE Financial

82191 05/03

Declines Rate 2002• 14.5%

Approval Rate 2002• 85.5%


Statistics

60


GE Financial

82191 05/03

0.0% 20.0% 40.0% 60.0% 80.0% 100.0% 120.0%

High Blood Pressure (HTN)

Osteoarthritis/DJD

Bone and Joint Disorder

Arrhythmia/Atrial Fibrillation

Psychoneurosis/Depression

Coronary Artery Disease (CAD)

Cancer of the Breast

Cancer of the Prostate

Diabetes (NIDDM)

COPD/Emphysema/Bronchitis

Rheumatoid Arthritis (RA)

Peripheral Vascular Disease

Cardiomyopathy

Congestive Heart Failure (CHF)

Memory Loss/Forgetfulness

Transient Ischemic Attack (TIA)

Insulin Dependent Diabetes

Stroke (CVA)

Dementia (SDAT,OBS,Senility)

History of Decline Rates


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GE Financial

82191 05/03

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

54 & under 55-64 65-71 72-75 76-79 80-84

Total Decisions for Age Groups Decline Rate for Age Groups

Decisions

Decline Rate

Decisions and Decline Rates for Age Groups


62


GE Financial

82191 05/03

CLAIMS

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GE Financial

82191 05/03

Reimbursement Benefit Analysts (San Rafael) 55 Indemnity Benefit Analysts (Enfield) 10 Intake Team RN/Analysts 5 Group-Products Team 2 AMEX/IDS Team 6 Technical Team 20 Claims Support Team 18 Travelers Team Analysts (Enfield) 12 GECIS Associates (New Delhi) 16 Leadership Team 12

156

Global Operations Structure and Staffing

156 FTEs- Teams Aligned with LTC Portfolio

64


GE Financial

82191 05/03

Indemnity - Facility 8,189 52% Reimbursement 7,472 48%

15,661 Travelers 2,738 Total Open Claims 18,394

New Claims per Week Avg 300 Intake Calls per Week Avg 275

Claim Portfolio and Activity as of 5/31/03

65


GE Financial

82191 05/03

Claim Portfolio and Activity as of 5/31/03

Reimbursement Plans 48%

Home Health Care 85%Assisted Care Facility 11%Nursing Home 4%

Interesting TidbitsThe longest continuous claim started in March 1990 and is still currently being paid. The client is now 84 years old.

70 policyholders are expected to be 100 years of age within 2 years.

66


GE Financial

82191 05/03

IMAGE Technology - no paper, workstation fax capability, sophisticated diary systems CALYPSO!

Audit Program - measures quality and links performance to standard operating procedures

Call Recording/Monitoring - technical accuracy, documentation, courtesy, quality customer service

Voice of Customer - monthly telephone claimant surveys

Quality Tools and Enhanced Servicing

67


GE Financial

82191 05/03

Dedicated toll free telephone coverage 6:00 am - 5:00 pm PST - 18,000 + Inbound calls monthly

(800-876-4582)

Inbound/Outbound Claims Correspondence

GECIS Management of reduced handling Facility claims, confinement calls and benefit payments - 5000 + per month

Claims Services Support

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GE Financial

82191 05/03

Per Diem Contracts

Traditional Claims Processing

• Claim Adjudication

• Routine Monthly Claim Payment

• Facility Inquiry Service

More Disabled Claimant / Less Direct Communication

Indemnity Products

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GE Financial

82191 05/03

Reimbursement Contract

Unique Claims Processing

• “Intake Calls” - claim initiation over the phone

• Care Coordinator Assignment, Onsite Functional Assessment, Care Services Placement, Plan of Care

• Claim Adjudication & Reimbursement Payment monthly

Less Disabled Claimant / Frequent & Direct Communication

Reimbursement Products: Choice II

70


GE Financial

82191 05/03

The Clinical World in concert with the Claim World

Benefits of the “R.N.” Designation

Balancing the Roles

Training and Mentoring

Benefit Analyst and Nurse

71


GE Financial

82191 05/03

Administer various components of care management and other specialized services / product complexities

Heightened expectation for

• Performance and Turn-Around

• Accountability

• Empowerment

Care Coordinators - Our Business Partners

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GE Financial

82191 05/03

Trained professional clinicians who assess needs and develop plans of care;

Members of constantly changing national vendor-networks;

Focussed on “short term intervention”;

Experts in all types of “local” resources - skilled, lay and “free”;

GEFA’s “On Site” Representative - our eyes and ears.

Care Coordinators

“What they ARE, and…

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GE Financial

82191 05/03

Knowledgeable about insured’s policy and coverage;

Allowed to provide actual “care services”;

Decision makers relative to claim-eligibility;

In a “friendship” role ‘per-se’;

“Identified” until the insured files a claim.

Care Coordinators

“…What they ARE NOT”

74


GE Financial

82191 05/03

Reimbursement Contract

Benefit Eligibility Triggers

90 Day Loss Certification

Privileged Care Coordinator Role

Elimination Period

Equipment Benefit

Family Members / Caregivers

7 Top Claims Tips

Common misunderstandings by our Clients & Agents

75


GE Financial

82191 05/03

APPENDIX

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GE Financial

82191 05/03

Applications for List Billing May Not Be Submitted Through The Quick Request Process

Quick Request May Not Be Used For List Billing

Quick Request & List Billing

Quick Request may be used for individual applications only

Executive Carve-out cases (or other groups of applications to be included on one bill) must be submitted using applications - Not Quick Request Forms

The List Bill Process must be followed in order to ensure that all applications get included on one bill once policies are issued

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GE Financial

82191 05/03

1. Approval of the List Bill Case

2. Submission of Applications

Submitting Applications To Be Placed On A List Bill Is A 2-Step Process

Following The Process Each Time Ensures Timely & Correct Processing

List Bill – 2-Step Process

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GE Financial

82191 05/03

Submit completed Business Profile (a.k.a. List Bill Application)

Receive approval letter within three business days (via US Mail, unless e-mail approval is requested on the form)

Approval letter includes the assigned Group Number(s) & Enrollment Card(s)

Submit applications (see Submission of Applications, next)

List Bill Step 1: Approval of the List Bill Case

Approval Process Required To Get Group # And Enrollment Cards

List Bill - Approval

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GE Financial

82191 05/03

Receive approval (see Approval of List Bill Case, prior)

Use the correct Limited Pay application

Write the Group Number on the top left corner of each application

Attach Enrollment Card (one for each applicant) to each application

Bundle applications together (you must submit a minimum of three [3] applications the first time you send in applications for a new group*) and submit to the home office, Attn: App Processing

List Bill Step 2: Submission of Applications

Attaching The Enrollment Cards Is The Key!

* The minimum requirement for any List Bill is 3 policies. Also, any applications received with a signature over 30 days old will be held until a fresh signature is obtained, so please submit the first 3 applications of your case right away, and then follow the above steps for each subsequent application in the group as you complete them.

Note: Submission of cash is NOT required for List Billing. The employer will be sent an initial bill for all approved applications. C.I.A. is not available for list bills.

List Bill – Submitting Applications

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GE Financial

82191 05/03

Group #

EnrollmentCard

Application

The producer writes thegroup # on each application,and attaches an enrollment

card for each applicant

Producer meets with business owner;gets agreement to take apps from

selected executivesPHS reviews the app., and

enters the new group in CLOAS.

The producer completes applicationswith the selected executives

The producer submits a minimum of3 applications and enrollment cards

in a bundle to LTC Home Office

The apps are received in San Rafael,and put through existing New Business process

List Bill Application

Producer e-mails or faxesthe application into

Policyholder Svcs. (PHS)

Producer downloads List BillApplication from

VRO/DO/GE Finc'l Pro

APPROVED!

PHS sends approval to Producerwithin 3 days via e-mail or US

mail. Approval includes group #and enrollment cards.

In India, the group # is enteredwith the application, which tieseach application to its list bill

group

List Bill

When applications have beenapproved, and policies issued,

a List Bill will be sent to theemployer based on the mode

they select.

List Bill Procedures – Process Flow

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GE Financial

82191 05/03

1. Follow steps in Submission of Applications

2. Application will be processed at the LTC Home Office

3. Approved policy is issued & employer sent pro-rated bill for new policyholder

4. New policyholder will appear on the next List Bill

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Employer billed $5,000 for ann. premium for 5 policyholders for period of 1/1-12/31

New applicant (employee) applies for LTC

New application is approved and policy is issued with effective date of 5/1.

Bill sent to employer for $600 pro-rated premium amount for new policyholder for 5/1–12/31.

Employer billed $6,000 for annual premium for 6 policyholders for period of 1/1-12/31

Example:

List Bill – Adding Policies

Adding New Policyholders to an Existing List Bill

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GE Financial

82191 05/03

1. Complete a Coverage Change Request (CCR) form, including a signature from the policyholder

2. Complete an Enrollment Card for the policyholder

3. Policyholder is refunded any premium overpayment

(from effective date of the list Bill group, forward)

4. A confirmation letter is sent to the policyholder and

employer

5. Policyholder will now appear on the next List Bill

List Bill – Adding Policies

Adding Existing Policyholders to a New/Existing List Bill

Date post:	15-Jan-2016
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