writing quality business

Agent training only. Not for sales use. LNL2280 0213

Writing Quality Business



Recap of Changes Impacting Quality

• Increasing Direct Pay on Section 125 Worksite cases must qualify (70%)

• Increasing max amount of Direct Pay per policy ($600)

• Increasing AP per sale with Laptop implementation

• Increasing AP per sale with needs based Worksite sale

But at the same time…

• Increasing impact of poor DCN & Persistency on Direct Pay including total loss of Direct Pay

• Increasing impact of poor DCN & Persistency on ability to earn bonus


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


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

TMK1536 092910 Agent training only. Not for sales use.


Where can I find this information?

Quality and Compensation Information foundin the Guide to Growth on Agent Services:


Guide to Growth



Individual underwriting rules found in the Agent Instruction Guide on Agent’s 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:


What is DCN?

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

Cancellations (3%): Primarily individual. Poor training,

systems and oversight.

Not-Takens (5%): Primarily worksite. Poor training, systems and oversight.

Company DCN 9% as of Jan. 2013


Top Reasons For Declines

Declines (1%) Only 1 policy per family or individual

Ineligible dependent

Dependent not eligible without employee coverage

Medical history

Not employed long enough

Amount exceeds limits


Top Reasons for Cancels

Cancellations (3%) Non Sufficient Funds/Bad Bank Information

Outdated COD

Requested by customer (QAC)

QAC not completed

Oral swab not complete

Additional underwriting call, exam not complete

Medical records not complete


Top Reasons for Not Takens

Not-Taken (6%) Payment not received for entire worksite case

Payment not received from worksite customer, changes mind


New DCN and Persistency Reports are published on the

25th of each month.



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

AUG25

SEPT24

OCT24

NOV24

DEC24

DEC25

DCNCalculated

Reports Published

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

$100 $350 $350 $200

Submitted Business

Declined, Cancelled, Not Taken Premium


Example: Calculating Payroll Deduction DCN

JUNE25

JULY24

AUG24

SEPT24

OCT24

NOV24

DEC24

DEC25

DCNCalculated

Reports Published

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

$0 $0 $400 $0 $0 $600

Submitted Business

Declined, Cancelled, Not Taken Premium


Definitions

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


Example: Calculating Persistency

APRIL25

MAY24

JUNE24

JULY24

AUG24

SEPT24

OCT24

NOV24

DEC24

DEC25

PersistencyCalculated

1 2 3 Reports Published

Paid 4 months or greater

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

$12,000Issued Business


Example of 88% 4-Month Persistency

$8,800 Paid 4 Months

$10,000 Issued

Premium


Example: Calculating 13-month persistency

AUG11

SEPT11

OCT11

NOV11

DEC11

JAN12

FEB12

MAR12

APR12

MAY12

JUNE12

JULY12

AUG12

SEPT12

OCT12

NOV12

DEC12

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?

• 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%



• Chargebacks• Direct pay submit advance commissions


Manager 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)



• Chargebacks• Direct pay submit advance commissions• DCN+Lapses subtracted from gross submit for bonus



• Chargebacks• Direct pay submit advance commissions• DCN+Lapses subtracted from gross submit for bonus• DCN: Bonus multiplier first 7 months



• Chargebacks • Direct pay submit advance commissions• DCN+Lapses subtracted from gross submit for bonus• DCN: Bonus multiplier first 7 months• Persistency: Bonus multiplier month 8 and beyond



• 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


Oh by the way … Career Track


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 $1,400 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 (3%) Non Sufficient Funds/Bad Bank Information

Outdated COD

Requested by customer (QAC)

QAC not completed

Oral swab not complete

Additional underwriting call, exam not complete

Medical records not complete


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


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.


Underwriting Requirements Chart


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).


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

• Height/Weight

• Habits


Quality During the Presentation:

Setting Correct Expectations



Open your eyes and ears open



What questions can you ask an applicant in

normal conversation to determine if

you should present ALX?



• Have you ever had cancer?

• Have you ever had diabetes?

• Have you ever had heart problems or high blood pressure?

• What medications are you taking? (Look up using smartphone)

• Are you receiving disability income?

• How’s your driving record?



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

your health conditions.”



Trial Applications

On cases with 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 declined or not taken by customer


So why don’t Agents use Trial applications?



When does an individual policy go into effect?



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) or Chase Liquid


View their Drivers License

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

License


Social Security Number

• Must have one to purchase a policy

• If they provide a number that begins with a 9, it is not a Social Security number. It is an Individual Taxpayer Identification Number (ITIN) which cannot be used.

• An ITIN, or Individual Taxpayer Identification Number, is a tax processing number only available for certain nonresident and resident aliens, their spouses, and dependents who cannot get a Social Security Number (SSN). It is a 9-digit number, beginning with the number "9", formatted like an SSN (NNN-NN-NNNN).


Citizenship


Draft Dates: Choose one between 1st – 10th

Initial Bank Draft happens first business day after upload to home office. But the second draft …


Solidifying the Sale: Last 3 Minutes in the Home



Use the Closing Script


Use the Closing Script

• Sets expectations• One or more Quality Assurance Calls (QAC)• Medical Exam• Medical Records• Be back to deliver policy


Quality After the Submit



Provide Good Customer Service

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


Worksite



Top Reasons For Declines

Declines (1%) Only 1 policy per family or individual

Ineligible dependent

Dependent not eligible without employee coverage

Medical history

Not employed long enough

Amount exceeds limits


Top Reasons for Not Takens

Not-Taken (6%) Payment not received for entire worksite case

Payment not received from worksite customer, changes mind


Better Prospecting



Eligible Industries


Approval Required Industries


Better Enrollments



Every Agent Must Have…

• Roster• Worksite Management Information Report (AL915) for

re-enrollments


Eligible Employees


Needs Planner


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…

• Why would we only collect an office number?


Relationship With The Bookkeeper


Worksite Case Checklist

• Follow-up, who is responsible, date completed


Red Alert

• PD01001: Franchise Initial Premium Unpaid (Daily)


What happens every week?

• Last week of January• Were deductions 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)


Red Alert

• AL040001: Worksite List By Franchise (Saturdays)


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



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



Adverse Business Department



Top Adverse Issues

• Sets expectations• Not sending an email to

[email protected] before submitting personal business

• Repeated bad banking information and/or Non Sufficient Funds

• 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.

mailto:[email protected]

writing quality business

Documents

q ytdlife

q hires

lnl sales increase2008

life sales

net issue net ap avgwk627

deptlnl producer count2008