Transcript GFA Career Sales Kick-Off

GE Financial
Privileged Choice
and
sm
Classic Select
sm
Producer Product Training
The best just got better!
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GE Financial
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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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
Total Training Time
45min
7hrs 15min
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GE Financial
PRODUCT OVERVIEW
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Product Goals
GE Financial
Consumers
-Privileged Choice-
Distribution
Channel
-Classic SelectA Portfolio Built on Shared Goals
and Long-Term Viability!
GE
Financial
The best just got better!
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GE Financial
New Product
Why Bring New Products to Market?
 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
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GE Financial
Size of Opportunity Today
An Ocean of Opportunity
Being Siphoned Through
An Eye Dropper
61,000,000 People Over 50 Years Old*
x 60% Eligible for LTC**
$64,342,800,000 Market
x $1758 Average Annual Premium
x 90% Haven’t Bought***
$64,342,800,000 A Year Market
$58 Billion Untouched
Demographic Age Wave
Tidal Wave of 76 Million Baby
Boomers Coming
• People Are Living Longer
• Baby Boomers Are Aging
• 26% of U.S. Population Over
Age 65
• Every 7 Seconds Another Turns 50
• And, 60% of Them LTC Eligible
$13 Million LTC Premium Potential Per Day!!
* 2000 Census Bureau
** 1998 Life Plan Inc. study
*** February 12, 2001 ACLI Statistics
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GE Financial
Opportunity
…and the market continues to GROW!
In 2000, the baby boomer was 36-54 years old.
105 Million More Potential Buyers in The Pipeline!
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The Consumer
What’s Good for 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
The best just got better!
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GE Financial
The Producer
What’s Good for Distribution?





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
More Choices = More Sales
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GE Financial
HIGH LEVEL
POSITIONING
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Industry Sales
GE Financial
2002: $1 Billion in Industry Sales – 5% increase
Top Individual LTC Carriers
Company
2002 Annualized
2002 New Premium
Premium In-Force (MM)
Sales (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
$ 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)%
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.
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**** Formerly Aid Association for Lutherans & Lutheran Brotherhood
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FEATURES & BENEFITS
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GE Financial
Introducing….Two New Products!!
Privileged
Choice
Classic
Select
- Comprehensive
Coverage
- Comprehensive
Coverage
- Inclusive Plan
- Modular Design
Two Products…the best just got better!
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GE Financial
Benefit Eligibility
One qualifies for covered benefits when…
 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!
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GE Financial
Choice
Monthly/ Daily Maximum
Privileged Choice
Daily Maximum
Monthly Maximum
Ages 18 - 79: $30 - $250 daily
Ages 80 - 84: $30 - $150
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 $10
Increments of $100
Classic Select
Daily Maximum
Ages 18 - 79: $50 to $400
Ages 80 - 84: $50 to $200
Increments of $5
Reduced Home Care Option
Can choose to reimburse up
to 50% of Daily Maximum
Not available with all
optional riders
Added Cost Option
 Monthly Maximum
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GE Financial

Benefit Multiplier- Individual Plan
Choice
Privileged Choice
Classic Select
Individual Plan
Days
Individual Plan
Months
Individual Plan
Days
730 (2yrs)
 1095 (3yrs)
 1460 (4yrs)

2190 (6yrs)*
 Unlimited*

24 (2yrs)

72 (6yrs)*

730 (2yrs)
2190 (6yrs)*
 36 (3yrs)
 96 (8yrs)*
 1095 (3yrs)
 2920 (8yrs)*
 48 (4yrs)
 120 (10yrs)*
 1460 (4yrs)
 3650 (10yrs)*
 60 (5yrs)*  Unlimited*
 1825 (5yrs)*  Unlimited*
*Not available for individuals ages 80 to 84.
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GE Financial
Benefit Multiplier- Shared Plan
Choice
Privileged Choice
Shared Plan
Days*
Shared Plan
Months*
1095 (3yrs)

2920 (8yrs)

48 (4yrs)

144 (12yrs)
Classic Select
Shared Plan
Days*

1460 (4yrs)

4380 (12yrs)
 1460 (4yrs)*  4380 (12yrs)
 72 (6yrs)
 192 (16yrs)
 2190 (6yrs)  5840 (16yrs)
 2190 (6yrs)
 96 (8yrs)
 240 (20yrs)
 2920 (8yrs)  7300 (20yrs)
 120 (10yrs)
 3650 (10yrs)
*Not available for individuals ages 80 to 84.
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Lifetime Maximum Benefit
(Personal Benefit Account)
GE Financial
How to calculate…
Monthly/Daily
Purchase Maximum
x
Benefit
Multiplier
=
Initial Lifetime Maximum
(Personal Benefit Account)
Monthly vs. Daily (Lifetime Maximum)
Privileged Choice
Monthly Purchase Maximum =
$1500
Classic Select
Daily Purchase Maximum =
X
Benefit Multiplier =
X
72 (6yrs)
Lifetime Maximum =
$50
$108,000
Benefit Multiplier =
Lifetime Maximum =
2190 (6yrs)
$109,500
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GE Financial Classic Select Without Optional Monthly Maximum
$50 Daily Maximum Without Monthly Maximum
Home Care
June
Sun
$ 150
x
$ 75
x
$ 200
x
$ 75
x
x
Mon
$$$$-
Tue
$ 100
x
$ 50
x
$ 75
x
$ 75
x
Wed
Thu
$-
$ 50
x
$ 50
x
$ 50
x
$ 75
x
$$$-
Fri
$$$$-
Actual
Cost
Sat
$ 75
x
$ 75
x
$ 75
x
$ 75
x
Reimbursable
Amount
$
375
$
200
$
250
$
200
$
400
$
200
$
300
$
200
$ 1,325
$
800
= up to the daily reimburseable amount
 Total cost incurred for covered services in June = $1,325
 Eligible reimbursement for all covered costs = $800
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GE Financial
Classic Select With Optional Monthly Maximum
$50 Daily Maximum With Monthly Maximum ($1,500)
Home Care
June
Sun
Mon
Tue
Wed
Thu
Fri
Actual
Cost
Sat
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
 Total cost incurred for covered services in June = $1,325
 Eligible reimbursement for all covered costs = $1,325
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GE Financial
Choice
Elimination Period
Classic Select
Privileged Choice
Home and Community Care
Home and Community Care
 0 Days
 0 Days

Facility Care
Facility Care
Facility Care
 50-days 100-days
 30-days 90-days 180-days
 30-days 90-days 180-days
 When you use a Privileged
 When you use a Privileged
 When you use a Privileged
Care Coordinator, the
Elimination Period is
reduced 1 day for every day
Home Community Care
benefits are received
Care Coordinator, the
Elimination Period is
reduced 1 day for every day
Home Community Care
benefits are received
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
Home and Community Care
30-days 90-days 180-days
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GE Financial
Choice
Inflation Protection
Privileged Choice
Benefit Increase Options
Classic Select
Benefit Increase Options Benefit Increase Options
Compound
Compound
Compound
Equal
Equal
Equal
None
None
None
No Claims Offset
No Claims Offset
Claims Offset
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Compound Inflation Protection
No Claims Offset vs. Claims Offset
$100 Daily Maximum (at the start of the claim)
30.0%
308,155
244,567
15.5%
211,770
186,337
10.2%
133,098
100,000
84,507
7.6%
120,820
200,000
165,186
12.8%
260,683
18.2%
300,000
365,970
400,000
482,048
500,000
475,637
600,000
722,675
49.9%
700,000
78,566
Benefit Paid until all Benefits are Exhausted
Total Claims Payable Assuming Maximum Daily
800,000
2 Year
3 Year
4 Year
Claims Offset
5 Year
6 Year
8 Year
10 Year
No Claims Offset
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Restoration of Benefits
How does it work?
 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 Policy
Original policy amount = $146,000
Reduced by claims paid ($50,000) to $96,000
Restored after 180 days without benefit eligibility- $146,000
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Choice
Available Discounts
Privileged Choice
Couples Discount
 25% Discount
Preferred Health
Discount
 10% Discount
Classic Select
Couples Discount
Couples Discount
 25% Discount
(if 1 policy issued)
 25% Discount
(if 1 policy issued)
40% Discount
(if both policies issued )
40% Discount
(if both policies issued)
Preferred Health
Discount
 10% Discount
Preferred Health
Discount
 10% Discount
Total Cumulative Discount Opportunity 50%
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Preferred Health Discount
How does it work?
 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
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Couples Discount
Couples Definition
 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
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GE Financial
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
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GE Financial
Couples Discount
Couples Discount Calculations
(both people in couple are eligible and apply*)
One Issued
Preferred Health Discount only
10%
Both Issued
Separate Policies
10%
(each qualifying policy)
Couples Discount only
40%
25%
(each qualifying policy)
Both discounts
35%
50%
(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
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Choice
Survivorship
Privileged Choice
Classic Select
 10 year survivorship
 10 year survivorship
Survivorship benefit NOT
benefit INCLUDED in the
base plan
benefit INCLUDED in
the base plan
INCLUDED in the base plan
 First 10 years must be
 First 10 years must be
claim-free
claim-free
Added Cost Option
Added Cost Options
2 ADDED Cost
Options
7 year survivorship
10 year benefits
benefit without
regards to claims
without claims
7 year
survivorship
benefit without
regards to claims
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International Coverage
Choice
Privileged Choice
NOT AVAILABLE
 INCLUDED in the
Classic Select
NOT AVAILABLE
base plan
 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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Choice
Facility Benefits/Bed Reservation
Privileged Choice
Classic Select
 Reimburses expenses
 Reimburses expenses up
 Reimburses expenses up
up to the Daily Maximum
to the Monthly Maximum
to the Daily Maximum
 For LTC facility
For the following:
For the following:
Nursing Home
Nursing Home
Assisted Care Facility
Assisted Care Facility
Added Cost Option
Monthly Maximum
Bed Reservations
Bed Reservations
Bed Reservations
50 days per year
60 days per year
30 days per year
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
Licensed Nursing Homes

Assisted Care Facilities
•
24 hr a day assistance/supervision; and
•
10 or more resident inpatients
Covered Facilities
AND
•
Licensed or Certified
OR
•
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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
For Representative Use Only: Not for Public Use or Distribution
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GE Financial
Choice
Home Care Benefit
Privileged Choice
Classic Select
Reimburses Prevailing
Reimburses Actual
Reimburses Actual
Expenses up to the
Monthly Maximum
Expenses up to the
Monthly Maximum
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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Home Care Benefit Breakdown
Home Care
 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
GE Claims Breakdown
 85% Home Care
Of 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
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Choice
Caregiver Training
Privileged Choice
Caregiver Training
Caregiver Training
Classic Select
Caregiver Training
 5 x Daily
 20% of the Monthly
 5 x Daily
Maximum
Maximum
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
Choice
Respite Care
Privileged Choice
Respite Care
Respite Care
21 days per year
30 days per year
Classic Select
Respite Care
21 days per year
Respite Care Definition
Short-term care provided to relieve the person who normally provides
unpaid care in your home


Care available under the following Benefits:
•
Nursing Home
•
Assisted Care Facility
•
Home Care
Elimination Period does not apply
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Equipment Benefit
Choice
Privileged Choice
Classic Select
Equipment Benefit
Equipment Benefit
Equipment Benefit
 50 x Daily maximum
 2 x Monthly maximum
 50 x Daily maximum
per lifetime
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
Choice
Shared Benefit Plan
Privileged Choice
Classic Select
Single Owner
Joint Owners
Joint Owners
NO RIGHT to Sever
Split available upon
Split available upon
divorce or final
separation
divorce or final
separation
 25% of applicants apply for shared plans
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PRICING AND
PLAN DESIGNS
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Product Pricing Practice
Disciplined Pricing Process
The Theory
Input To Pricing:
Experience
Competition
Regulation
The Reality




Determine
Prices &
Features
Verify Assumptions to be
certain they are
reasonable
Experience Develops Slowly
Need To Price On An Overall Basis
Competition Plays A Role
Margins for Stability Built Into Pricing Assumptions
Pricing Exercise Requires Strong Database, U/W And Claims
Experience, Intuition, Discipline & A Sense Of Balance Between
Competing Influences
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Sample Product Plan Pricing
Classic Select
Privileged Choice
% Premium
Optional Rider
Included in Privileged Choice:
9%
0 Day Elimination Period
6%
Monthly Maximum
• No claims offset (Inflation
protection)
15%
Survivorship
7 years
• International Coverage
9%
Classic Select +
about17%
• 0 day Elimination Period
• Monthly Maximum
• 10 Year Survivorship
• Bed Reservation
• Respite Care
(15%)*
10 years
50% Home Care
• Equipment
• Care Giver Training
*can not purchase 0 day EP and
Monthly Max with this rider.
If Customer Prefers 2 or more Riders, Consider the Cost of Privileged Choice
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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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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
Premium Comparisons
5-Year 90/100 day Elimination Period, $100 Daily Maximum
Base Plan
Married Preferred, Compound Inflation
Age
40
45
50
55
60
65
70
75
80
GE Capital Assurance
Classic
Privileged
Select
Choice
695
710
750
800
1035
1405
2110
3445
5545
810
825
870
930
1215
1650
2475
4035
6480
Allianz:
Future Care
Select
Prudential:
LTC By
Design
John
Hancock
Custom
MetLife Ideal
Lincoln
SeniorLinc
Premier
UNUM :
Indemnity
UNUM :
Reimbursement
688
688
703
794
1013
1394
2059
3185
4734
664
733
802
994
1185
1619
2405
3779
---
495
568
623
752
971
1320
1980
3043
---
584
661
754
906
1150
1594
2391
3890
6163
592
626
721
854
1002
1449
2298
3256
5153
641
761
857
1005
1310
1789
2656
3961
5724
502
597
672
788
1027
1403
2083
3106
4489
Apples-To-Apples
Married Preferred, Compound Inflation
Age
40
45
50
55
60
65
70
75
80
GE Capital Assurance
Classic
Privileged
Select
Choice
862
880
930
992
1283
1742
2616
4272
6876
810
825
870
930
1215
1650
2475
4035
6480
Allianz:
Future Care
Select
Prudential:
LTC By
Design
John
Hancock
Custom
MetLife Ideal
Lincoln
SeniorLinc
Premier
UNUM :
Indemnity
UNUM :
Reimbursement
855
855
874
986
1237
1671
2424
3681
5368
852
940
1028
1274
1520
2077
3084
4760
---
674
774
849
1023
1323
1797
2696
4143
---
607
688
784
942
1196
1658
2511
4084
6471
749
793
913
1081
1268
1833
2907
4119
6519
699
830
934
1095
1428
1914
2814
4119
5838
548
652
733
859
1120
1501
2208
3231
4579
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
46Survivorship
82191 05/03
For Representative Use Only: Not for Public Use or Distribution
Premium Comparisons
GE Financial
Lifetime 90/100 day Elimination Period, $100 Daily Maximum
Base Plan
Married Preferred, Compound Inflation
Age
40
45
50
55
60
65
70
75
80
GE Capital Assurance
Classic
Privileged
Select
Choice
985
1005
1055
1115
1485
2025
3040
4940
7950
1155
1170
1230
1305
1740
2370
3555
5775
9300
Allianz:
Future Care
Select
Prudential:
LTC By
Design
John
Hancock
Custom
MetLife Ideal
Lincoln
SeniorLinc
Premier
UNUM :
Indemnity
UNUM :
Reimbursement
898
904
922
1040
1358
1856
2727
4172
6165
850
938
1026
1272
1517
2073
3078
4838
---
790
857
948
1128
1512
2121
3113
4760
---
800
906
1033
1241
1576
2184
3276
5328
8442
658
696
802
949
1114
1610
2553
3618
5726
842
997
1111
1290
1683
2300
3466
5231
7510
660
782
871
1012
1320
1804
2718
4103
5890
Apples-To-Apples
Married Preferred, Compound Inflation
Age
40
45
50
55
60
65
70
75
80
GE Capital Assurance
Classic
Privileged
Select
Choice
1221
1246
1308
1383
1841
2511
3770
6126
9858
1155
1170
1230
1305
1740
2370
3555
5775
9300
Allianz:
Future Care
Select
Prudential:
LTC By
Design
John
Hancock
Custom
MetLife Ideal
Lincoln
SeniorLinc
Premier
UNUM :
Indemnity
UNUM :
Reimbursement
1115
1123
1145
1292
1658
2224
3210
4821
6991
1090
1203
1316
1631
1946
2658
3947
6093
---
1075
1167
1290
1536
2058
2888
4239
6482
---
832
942
1075
1291
1639
2271
3440
5595
8864
833
881
1014
1201
1409
2036
3230
4577
7243
917
1087
1211
1406
1834
2462
3674
5440
7660
720
852
949
1103
1439
1931
2881
4267
6008
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
47Survivorship
82191 05/03
For Representative Use Only: Not for Public Use or Distribution
Premium Comparisons
5-Year 90/100 day Elimination Period, $100 Daily Maximum
GE Financial
Base Plan
Single Preferred, Compound Inflation
Age
40
45
50
55
60
65
70
75
80
GE Choice II
Classic
Privileged
Select
Choice
1251
1278
1350
1440
1863
2529
3798
6201
9981
1458
1485
1566
1674
2187
2970
4455
7263
11664
Allainz:
Future Care
Select
Prudential:
LTC By
Design
John
Hancock
Custom
MetLife Ideal
Lincoln
SeniorLinc
Premier
UNUM :
Indemnity
UNUM :
Reimbursement
983
983
1005
1134
1448
1992
2941
4551
6763
806
890
974
1206
1439
1966
2920
4589
---
647
743
815
983
1270
1726
2589
3979
---
709
803
916
1100
1397
1936
2904
4723
7483
790
835
962
1139
1337
1932
3064
4342
6871
733
762
979
1149
1497
2044
3025
4527
6541
575
682
768
901
1174
1603
2380
3550
5131
Apples-To-Apples
Single Preferred, Compound Inflation
Age
40
45
50
55
60
65
70
75
80
GE Choice II
Classic
Privileged
Select
Choice
1439
1470
1553
1656
2142
2908
4368
7131
11478
1458
1485
1566
1674
2187
2970
4455
7263
11664
Allainz:
Future Care
Select
Prudential:
LTC By
Design
John
Hancock
Custom
MetLife Ideal
Lincoln
SeniorLinc
Premier
UNUM :
Indemnity
UNUM :
Reimbursement
1062
1062
1085
1225
1564
2151
3176
4915
7304
923
1019
1115
1381
1648
2252
3343
5255
---
819
941
1032
1244
1608
2185
3277
5037
---
738
835
953
1144
1453
2013
3049
4959
7857
999
1057
1217
1441
1691
2444
3876
5492
8692
733
762
979
1149
1497
2044
3025
4527
6541
575
682
768
901
1174
1603
2380
3550
5131
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
48Survivorship
82191 05/03
For Representative Use Only: Not for Public Use or Distribution
Premium Comparisons
GE Financial
Lifetime 90/100 day Elimination Period, $100 Daily Maximum
Base Plan
Single Preferred, Compound Inflation
Age
40
45
50
55
60
65
70
75
80
GE Choice II
Classic
Privileged
Select
Choice
1773
1809
1899
2007
2673
3645
5472
8892
14310
2079
2106
2214
2349
3132
4266
6399
10395
16740
Allainz:
Future Care
Select
Prudential:
LTC By
Design
John
Hancock
Custom
MetLife Ideal
Lincoln
SeniorLinc
Premier
UNUM :
Indemnity
UNUM :
Reimbursement
1283
1291
1317
1486
1940
2651
3896
5960
8808
1032
1139
1246
1544
1842
2517
3738
5874
---
987
1072
1184
1410
1889
2651
3892
5950
---
972
1100
1255
1507
1913
2652
3978
6470
10251
878
928
1069
1266
1485
2147
3404
4824
7634
962
997
1270
1479
1923
2629
3961
5978
8583
754
894
996
1156
1508
2062
3107
4689
6732
Apples-To-Apples
Single Preferred, Compound Inflation
Age
40
45
50
55
60
65
70
75
80
GE Choice II
Classic
Privileged
Select
Choice
2039
2080
2184
2308
3074
4192
6293
10226
16457
2079
2106
2214
2349
3132
4266
6399
10395
16740
Allainz:
Future Care
Select
Prudential:
LTC By
Design
John
Hancock
Custom
MetLife Ideal
Lincoln
SeniorLinc
Premier
UNUM :
Indemnity
UNUM :
Reimbursement
1385
1395
1422
1605
2095
2863
4207
6437
9512
1182
1304
1427
1768
2109
2882
4280
6726
---
1250
1357
1499
1785
2392
3356
4927
7533
---
1010
1144
1305
1567
1990
2758
4177
6794
10764
1110
1174
1352
1601
1879
2715
4306
6102
9657
962
997
1270
1479
1923
2629
3961
5978
8583
754
894
996
1156
1508
2062
3107
4689
6732
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
49Survivorship
82191 05/03
For Representative Use Only: Not for Public Use or Distribution
GE Financial
SUBMITTING AN
APPLICATION
50
82191 05/03
For Representative Use Only: Not for Public Use or Distribution
GE Financial
NIGO
44%
Not In Good Order
Channel Example
45%
40%
35%
30%
25%
20%
11%
15%
10%
10%
9%
7%
6%
6%
2%
5%
4%
0%
Suitability - Third Party State Form Application Application
Wrong
Pers
Info
Required Not Dated Signature Application
W'sheet & Required
Required
State
82191 05/03
Agent
Licensing
Agent
Signature
Required
For Representative Use Only: Not for Public Use or Distribution
Other
51
GE Financial
Application Processing
Most commonly missed items when
submitting an application














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)
82191 05/03
For Representative Use Only: Not for Public Use or Distribution
52
GE Financial Coverage Selection Page Changes – Individual
Choice - AL
Daily Payment
Maximum
Monthly Maximum
Classic Select - AL
Benefit Multiplier (days)
Benefit Multiplier (months)
Daily Maximum
Benefit Multiplier (days new periods)
Elimination Period 50, 100
Elimination Period 30, 90, 180
Elimination Period 30, 90, 180
Inflation
Protection/Benefit
Increases
unchanged
Not in Choice
Not in Choice
Not in Privileged Choice
Not in Privileged Choice
Not in Choice
Not in Privileged Choice
Survivorship Benefit (No,
Enhanced)
Moved below "Eligible for
Couples Discount"
Moved above "Eligible for
Preferred Health
Discount"
Moved below "Home
Care," Monthly Benefits,"
and "Waiver of Home
Care Elimination Period."
Home Care Benefits
(50%, 100%)
Monthly Benefits
Waiver of Homecare
Elimination Period
Survivorship Benefit (No,
Basic, Enhanced)
Moved below "Eligible for
Couples Discount"
Moved above "Eligible for
Preferred Health
Discount"
Limited Pay Coverage
(None, Pay-to-65, 10-Pay)
Added modal charges;
Moved below "Limited
Pay Coverage"
Moved to 2nd page of
Coverage Selection
Limited Pay Coverage
(None, Pay-to-65, 10-Pay)
Added modal charges;
Moved below "Limited
Pay Coverage"
Moved to 2nd page of
Coverage Selection
Not in Choice
Eligible for Preferred
Health Discount
Eligible for Couples
Discount
Not in Choice
Premium Payment
Mode
Electronic Funds
Transfer
82191 05/03
Individual Benefit
Privileged Choice - AL
For Representative Use Only: Not for Public Use or Distribution
53
GE Financial
Coverage Selection Page Changes – Shared
Choice - AL
Shared Benefit
Privileged Choice - AL
Classic Select - AL
Daily Payment Maximum
Monthly Maximum
Daily Maximum
Benefit Multiplier (days -
Benefit Multiplier (days)
Benefit Multiplier (months)
new periods)
Elimination Period 50, 100
Elimination Period 30, 90,180
Elimination Period 30, 90, 180
Survivorship Benefit (No,
Survivorship Benefit (No,
Not in Choice
Enhanced)
Basic, Enhanced)
Daily Payment Maximum
Monthly Maximum
Contingent Selections
Daily Maximum
Benefit Multiplier (days Benefit Multiplier (days)
Benefit Multiplier (months)
new periods)
Elimination Period 50, 100
Elimination Period 30, 90, 180
Elimination Period 30, 90, 180
Home Care Benefits (50%,
Not in Choice
Not in Privileged Choice
100%)
Not in Choice
Not in Privileged Choice
Optional Monthly Benefits
Waiver of Homecare
Not in Choice
Not in Privileged Choice
Inflation
Elimination Period
Moved to after "Waiver of
Protection/Benefit
Home Care Elimination
Increases
unchanged
Period."
Premium Payment Mode
Added modal charges
Added modal charges
Electronic Funds
Moved to 2nd page of
Moved to 2nd page of
Transfer
Coverage Selection
Coverage Selection
54
82191 05/03
For Representative Use Only: Not for Public Use or Distribution
GE Financial
UNDERWRITING
55
82191 05/03
For Representative Use Only: Not for Public Use or Distribution
GE Financial
Global Operations Structure and Staffing
42 Associates
 Production and Technical Underwriters
 Telephone Unit
 Management Staff
 Technical Unit
 Full Time Medical Director
27
6
3
5
_1_
42
56
82191 05/03
For Representative Use Only: Not for Public Use or Distribution
GE Financial
Underwriting and Risk Management
Risk Management
 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
57
82191 05/03
For Representative Use Only: Not for Public Use or Distribution
GE Financial
Underwriting and Risk Management
Risk Management
 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
58
82191 05/03
For Representative Use Only: Not for Public Use or Distribution
GE Financial
Underwriting and Risk Management
Statistics
 Declines Rate 2002
• 14.5%
 Approval Rate 2002
• 85.5%
59
82191 05/03
For Representative Use Only: Not for Public Use or Distribution
GE Financial
Underwriting and Risk Management
History of Decline Rates
Dementia (SDAT,OBS,Senility)
Stroke (CVA)
Insulin Dependent Diabetes
Transient Ischemic Attack (TIA)
Memory Loss/Forgetfulness
Congestive Heart Failure (CHF)
Cardiomyopathy
Peripheral Vascular Disease
Rheumatoid Arthritis (RA)
COPD/Emphysema/Bronchitis
Diabetes (NIDDM)
Cancer of the Prostate
Cancer of the Breast
Coronary Artery Disease (CAD)
Psychoneurosis/Depression
Arrhythmia/Atrial Fibrillation
Bone and Joint Disorder
Osteoarthritis/DJD
High Blood Pressure (HTN)
0.0%
82191 05/03
20.0%
40.0%
60.0%
80.0%
For Representative Use Only: Not for Public Use or Distribution
100.0%
60
120.0%
GE Financial
Underwriting and Risk Management
Decisions and Decline Rates for Age Groups
35.0%
Decline Rate
30.0%
Decisions
25.0%
20.0%
15.0%
10.0%
5.0%
0.0%
54 & under
55-64
65-71
Total Decisions for Age Groups
82191 05/03
72-75
76-79
Decline Rate for Age Groups
For Representative Use Only: Not for Public Use or Distribution
80-84
61
GE Financial
CLAIMS
62
82191 05/03
For Representative Use Only: Not for Public Use or Distribution
GE Financial
Global Operations Structure and Staffing
156 FTEs- Teams Aligned with LTC Portfolio
 Reimbursement Benefit Analysts (San Rafael)
 Indemnity Benefit Analysts (Enfield)
 Intake Team RN/Analysts
 Group-Products Team
 AMEX/IDS Team
 Technical Team
 Claims Support Team
 Travelers Team Analysts (Enfield)
 GECIS Associates (New Delhi)
 Leadership Team
55
10
5
2
6
20
18
12
16
12
156
63
82191 05/03
For Representative Use Only: Not for Public Use or Distribution
GE Financial
Claim Portfolio and Activity as of 5/31/03
 Indemnity - Facility
 Reimbursement
 Travelers
 Total Open Claims
 New Claims per Week
 Intake Calls per Week
8,189
7,472
15,661
2,738
18,394
52%
48%
Avg 300
Avg 275
64
82191 05/03
For Representative Use Only: Not for Public Use or Distribution
GE Financial
Claim Portfolio and Activity as of 5/31/03
Reimbursement
Plans
48%
Home Health Care
Assisted Care Facility
Nursing Home
85%
11%
4%
Interesting Tidbits
The 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.
65
82191 05/03
For Representative Use Only: Not for Public Use or Distribution
GE Financial
Quality Tools and Enhanced Servicing
 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
66
82191 05/03
For Representative Use Only: Not for Public Use or Distribution
GE Financial
Claims Services Support
 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
67
82191 05/03
For Representative Use Only: Not for Public Use or Distribution
GE Financial
Indemnity Products
 Per Diem Contracts
 Traditional Claims Processing
• Claim Adjudication
• Routine Monthly Claim Payment
• Facility Inquiry Service
 More Disabled Claimant / Less Direct Communication
68
82191 05/03
For Representative Use Only: Not for Public Use or Distribution
GE Financial
Reimbursement Products: Choice II
 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
69
82191 05/03
For Representative Use Only: Not for Public Use or Distribution
GE Financial
Benefit Analyst and Nurse
 The Clinical World in concert with the Claim World
 Benefits of the “R.N.” Designation
 Balancing the Roles
 Training and Mentoring
70
82191 05/03
For Representative Use Only: Not for Public Use or Distribution
GE Financial
Care Coordinators - Our Business Partners
 Administer various components of care management and
other specialized services / product complexities
 Heightened expectation for
• Performance and Turn-Around
• Accountability
• Empowerment
71
82191 05/03
For Representative Use Only: Not for Public Use or Distribution
GE Financial
Care Coordinators
“What they ARE, and…
 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.
72
82191 05/03
For Representative Use Only: Not for Public Use or Distribution
GE Financial
Care Coordinators
“…What they ARE NOT”
 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.
73
82191 05/03
For Representative Use Only: Not for Public Use or Distribution
GE Financial
7 Top Claims Tips
Common misunderstandings by our Clients & Agents
 Reimbursement Contract
 Benefit Eligibility Triggers
 90 Day Loss Certification
 Privileged Care Coordinator Role
 Elimination Period
 Equipment Benefit
 Family Members / Caregivers
74
82191 05/03
For Representative Use Only: Not for Public Use or Distribution
GE Financial
APPENDIX
75
82191 05/03
For Representative Use Only: Not for Public Use or Distribution
GE Financial
Quick Request & List Billing
Applications for List Billing May Not Be Submitted
Through The Quick Request Process
 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
Quick Request May Not Be Used For List Billing
82191 05/03
For Representative Use Only: Not for Public Use or Distribution
76
GE Financial
List Bill – 2-Step Process
Submitting Applications To Be Placed On A
List Bill Is A 2-Step Process
1. Approval of the List Bill Case
2. Submission of Applications
Following The Process Each Time Ensures Timely &
Correct Processing
77
82191 05/03
For Representative Use Only: Not for Public Use or Distribution
GE Financial
List Bill - Approval
List Bill Step 1: Approval of the List Bill Case
 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)
Approval Process Required To Get Group # And
Enrollment Cards
82191 05/03
For Representative Use Only: Not for Public Use or Distribution
78
GE Financial
List Bill – Submitting Applications
List Bill Step 2: Submission of Applications
 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
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.
* 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.
Attaching The Enrollment Cards Is The Key!
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79
GE Financial
List Bill Procedures – Process Flow
List Bill Application
Producer meets with business owner;
gets agreement to take apps from
selected executives
Producer downloads List Bill
Application from
VRO/DO/GE Finc'l Pro
Group #
The producer completes applications
with the selected executives
Application
Enrollment
Card
APPROVED!
Producer e-mails or faxes
the application into
Policyholder Svcs. (PHS)
PHS reviews the app., and
enters the new group in CLOAS.
PHS sends approval to Producer
within 3 days via e-mail or US
mail. Approval includes group #
and enrollment cards.
The producer writes the
group # on each application,
and attaches an enrollment
card for each applicant
List Bill
The producer submits a minimum of
3 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
In India, the group # is entered
with the application, which ties
each application to its list bill
group
When applications have been
approved, and policies issued,
a List Bill will be sent to the
employer based on the mode
they select.
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GE Financial
List Bill – Adding Policies
Adding New Policyholders to an Existing List Bill
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
Example:
Jan
Employer billed
$5,000 for ann.
premium for 5
policyholders
for period of
1/1-12/31
Feb Mar
Apr May
New
New application is
applicant
approved and
(employee)
policy is issued with
applies for
effective date of
LTC
5/1.
Bill sent to
employer for $600
pro-rated premium
amount for new
policyholder for
5/1–12/31.
Jun Jul Aug
Sep
Oct
Nov
Dec
Jan
Employer billed
$6,000 for
annual premium
for 6
policyholders
for period of
1/1-12/31
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GE Financial
List Bill – Adding Policies
Adding Existing Policyholders to a New/Existing List Bill
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
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For Representative Use Only: Not for Public Use or Distribution