MEDICARE SUPPLEMENT
Rate Increases
State
Plan A
Plan B
Plan C
Plan F
Plan G
Plan N
AL, AR, DE, IA, NE, NV, RI, SD
9.50%
8.70%
6.00%
6.00%
AZ, LA, MO, ND, NH, NM, UT
9.50%
7.50%
6.00%
6.00%
GA, NC, OK
9.50%
8.70%
5.00%
5.00%
KS, KY
9.50%
9.00%
3.00%
3.00%
MS, MT, WY
9.50%
5.00%
6.00%
6.00%
CO
9.50%
9.00%
4.00%
3.00%
IL
9.50%
7.00%
7.00%
5.00%
IN
9.50%
7.50%
6.50%
6.00%
MD
9.50%
6.00%
6.00%
6.00%
OH
9.50%
7.50%
7.00%
6.00%
PA
9.50%
8.70%
3.00%
3.00%
SC
9.50%
5.00%
6.00%
5.00%
TN
9.50%
7.00%
5.00%
5.00%
VA
9.50%
6.50%
6.00%
6.00%
WV
9.50%
9.50%
5.00%
5.00%
TX
5.80%
6.70%
5.80%
5.8%
FL
0.00%
0.00%
0.00%
0.00%
9.50% 9.50%
WI Nationwide average by plan
Wisconsin
7.00% 6.69%
9.50%
9.50%
Confidential, unpublished property of Cigna. Do not duplicate or distribute. Use and distribution limited solely to authorized personnel. © 2015 Cigna
7.69%
4.95%
4.53%
7.00%
3
MEDICARE SUPPLEMENT
Commission Increases
LEVEL
GA – 60
All plans except Plan A – All States unless otherwise noted Issue ages ≤ 64 (years 1-6/years 7-10/years 11+)
5.0%
5.0%
2.0%
Issue ages 65-84 (years 1-6/years 7-10/years 11+)
22%
3.0%
1.0%
Issue ages 85+ (years 1-6/years 7-10/years 11+)
11%
2.5%
1.0%
• Age 80-84 Commission Increase States to Launch April 1: AL, IA, IL, LA, MS, NC, OK, RI and SD States to Launch May 1: AZ, NE, NV, and TN Additional States will take effect with their rate increases Confidential, unpublished property of Cigna. Do not duplicate or distribute. Use and distribution limited solely to authorized personnel. © 2015 Cigna
10
MEDICARE SUPPLEMENT
Substandard Conditions for Acceptance Substandard Conditions Angioplasty
Chronic bronchitis
Atherosclerosis or arteriosclerosis
Any other chronic lung or respiratory disorder requiring the use of oxygen
Peripheral vascular disease
Diabetes with neuropathy
Carotid artery disease
Diabetes with retinopathy
Coronary artery disease (CAD)
Diabetes with vascular disease
Angina
Myasthenia gravis
Cardiomyopathy
Systemic lupus
Stent placement
Hepatitis other than hepatitis A
Heart valve surgery
Cirrhosis of the liver
Atrial fibrillation
Other liver disease
Irregular heartbeat
Cerebral palsy
Cardiac pacemaker
Parkinson’s disease
Implantable or subcutaneous defibrillator
Dementia
Transient ischemic attack (TIA)
Senility
Chronic obstructive pulmonary disease (COPD)
Alzheimer’s disease
Chronic obstructive lung disease (COLD)
PSA levels greater than 6.0
Emphysema
Confidential, unpublished property of Cigna. Do not duplicate or distribute. Use and distribution limited solely to authorized personnel. © 2015 Cigna
12
MEDICARE SUPPLEMENT
Substandard Premiums and Commissions Spread Plan F Texas
Annual Premium (no HH discount)
Spread
UHC Sex
Age
SubSt
SubSt Spread
UHC Spread
Level 2
F
72
3,011
3,832
90.33
58.24
M
72
3,463
3,832
103.89
58.24
F
75
3,172
3,832
95.16
58.24
M
75
3,648
3,832
109.44
58.24
Plan F N. Carolina
Annual Premium (no HH discount)
Spread
UHC Sex
Age
SubSt
SubSt Spread
UHC Spread
Level 2
F
72
3,111
3,350
124
65
M
72
3,578
3,350
143
65
F
75
3,277
3,684
131
65
M
75
3,769
3,684
151
65
Rates are illustrative only and are subject to state review and DOI approval Confidential, unpublished property of Cigna. Do not duplicate or distribute. Use and distribution limited solely to authorized personnel. © 2015 Cigna
18
ARLIC 2015 Rate Renewal Phased Schedule (with HH Discount and Substandard) Wave
States
Filing Schedule
Target Implementation
Wave 1
AL, AR, FL, IA, IL, KS, LA, MS, NC, OH, OK, PA, RI, SD, TX, UT
2/16/15
June 2015
Wave 2
AZ, NE, NV, TN
3/16/15
July 2015
Wave 3
IN, MT, NM
4/16/15
August 2015
Wave 4
KY, MD, ND, SC, WY
5/15/15
September 2015
Wave 5
CO, NH
6/15/15
CO: October 2015 NH: January 2016
Wave 6
MO, WI, WV
7/15/15
November 2015
Wave 7
DE, GA
8/15/15
December 2015
Wave 8
VA
9/15/15
January 2016
MEDICARE SUPPLEMENT
Target implementation dates. Actual implementation date is subject to state approval
Confidential, unpublished property of Cigna. Do not duplicate or distribute. Use and distribution limited solely to authorized personnel. © 2015 Cigna
23
Agent Contest
MEDICARE SUPPLEMENT
• 30-day contest • $500 – 10 apps issued • $750 – 15 apps issued • $1,000 – 20 apps issued
Contest start date: Coincides with launch of each state
Confidential, unpublished property of Cigna. Do not duplicate or distribute. Use and distribution limited solely to authorized personnel. © 2015 Cigna
24
FINAL EXPENSE
Commissions Loyal American Life Insurance Company® – Commission Schedule Effective August 29, 2014
COMMISSION SCHEDULE – The maximum advance for all Whole Life production is $1,500 for the writing agent. Commissions are not paid on rate increases.
Stand-Alone Whole Life MGA - 80
FMO - 90
LEVEL
Level Plan
Issue Ages 50 - 79 (Yrs 1 / 2-5 / 6-10 / 11+)
125.0% 9.0%
5.0%
1.0% 120.0% 8.0%
4.5%
1.0%
Issue Ages 80 - 85 (Yrs 1 / 2-5 / 6-10 / 11+)
95.0%
5.0%
1.0%
4.5%
1.0%
9.0%
92.5%
8.0%
Modified Plan
Issue Ages 50 - 79 (Yrs 1 / 2-5 / 6-10 / 11+)
95.0%
9.0%
5.0%
1.0%
92.5%
8.0%
4.5%
1.0%
Issue Ages 80 - 85 (Yrs 1 / 2-5 / 6-10 / 11+)
75.0%
9.0%
5.0%
1.0%
72.5%
8.0%
4.5%
1.0%
AMGA - 70*
LEVEL
GA - 60 Level Plan
Issue Ages 50 - 79 (Yrs 1 / 2-5 / 6-10 / 11+)
115.0% 7.0%
4.0%
1.0% 110.0% 6.0%
3.0%
1.0%
Issue Ages 80 - 85 (Yrs 1 / 2-5 / 6-10 / 11+)
90.0%
4.0%
1.0%
6.0%
3.0%
1.0%
7.0%
87.5%
Modified Plan
Issue Ages 50 - 79 (Yrs 1 / 2-5 / 6-10 / 11+)
90.0%
7.0%
4.0%
Issue Ages 80 - 85 70.0% 7.0% 4.0% (Yrs 1 / 2-5 / 6-10 / 11+) Compensation shown only for approved states. Some states may differ upon approval
1.0%
87.5%
6.0%
3.0%
1.0%
1.0%
67.5%
6.0%
3.0%
1.0%
* Not available for initial recruiting, except for contracts received along with 7 downline contracts. Confidential, unpublished property of Cigna. Do not duplicate or distribute. Use and distribution limited solely to authorized personnel. © 2015 Cigna .
29
Highlights
FINAL EXPENSE
The Basics • Face amounts from $2,000 to $25,000 • Coverage for individuals, ages 50-85 • Level and Modified Benefit coverage available • Simplified issue underwriting • Policies issued in 3-5 days • • • • •
5% spousal discount* No annual policy fee Husband and wife on one application No height/weight chart NO WET SIGNATURES/Phone Sales
* Only available if both individuals apply at the same time. Confidential, unpublished property of Cigna. Do not duplicate or distribute. Use and distribution limited solely to authorized personnel. © 2015 Cigna
26
Agent Contest
FINAL EXPENSE
• 1 app issued = $50 • 3 apps issued = $150 • 5 apps issued = $250 • 10 apps issued = $500
Dates: 4/1/2015 – 4/30/2015
Confidential, unpublished property of Cigna. Do not duplicate or distribute. Use and distribution limited solely to authorized personnel. © 2015 Cigna
31
