Agent training only. Not for sales use.TMK1536 0214 Quality Manager Training Updated Feb 2014 Agent training only. Not for sales use.TMK1536 0214

Agent training only. Not for sales use.TMK1536 0214

Quality Manager Training

Updated Feb 2014



Checklist



Checklist

• Show me:• Computer with Microsoft Office 2010 or 2013• Access Agent Services• Access [email protected] email• Access Qlikview• Access Portal (Set up as App Approver)• App Approval Packet• Scripts• Roster


Agenda



Agenda

I. Introductions & Role of Quality ManagerII. Reviewing Apps in the PortalIII. Individual ApplicationsIV. Worksite ApplicationsV. COD TrackingVI. Worksite Case TrackingVII. Tracking Lost BusinessVIII.SAMs & ReportsIX. ReinstatementsX. Miscellaneous


My Expectations of You

•Take lots of notes•Ask lots of questions (Test)•Leave here more confident•Have fun



The Role of the Quality Manager



Liberty Hierarchy

• Agency Owner

• Agency Director

• Supervising Agents

• Agents


Quality Control Manager Responsibilities

The Quality Control Manager is responsible foroverall quality of business and profitability in theAgency. This person reports directly to the AgencyOwner and is accountable for decreasing theamount of business that is Declined, Cancelled, andNot Taken and increasing in 13-month persistency tobuild Agency Owner renewals.


Role of the Quality Manager

• To help the Agency Owner Build Wealth• Front End: Prior to Upload to Home Office• Pending Business: Follow-up Work• Keeping Business on the books

• The Best Quality Managers• Great communicators• Extra set of eyes and ears for Agency Owner• Business partner


I. Understanding Quality Business



How is your performance evaluated?

• Are you a good investment for the Agency Owner?• This is evaluated each month based on…

• Front End: DCN• Pending Business: DCN and Persistency• Keeping Business on the books: Reinstatements

and PD Policyholders Transferred to Bank Draft


Goals

• DCN 6% or less• 4-Month Persistency 93% or better• 13-Month Persistency 75% or better


Resources

• All documents, scripts, directions, reports, etc…

• www.libertynational.com Agent Services (Use QMxxxxx to log in)

• Quality Business Section


Individual vs. Worksite

• Individual Business: Written in the home through the needs-based laptop presentation. Premiums paid through checking account

• Worksite Business: Also known as Payroll Deduction (PD) or Section 125. Written in the workplace to employees. Premiums deducted from employees’ paycheck and sent by employer to Liberty National


Building Wealth = Renewals

• Renewals are paid starting the 13th month a policy is in force.

• They are paid every month that the customer makes their premium payment … forever!


Guide to Growth

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


Guide to Growth


What is DCN?

Declines (<1%): Primarily worksite. Never should have been uploaded to Home Office.

Cancellations (2%): Primarily individual. Cancelled by customer or Home Office.

Not-Takens (6%): Primarily worksite. Company never received any money.

Company DCN 9% as of January 2014


Agents Direct Pay and Bonus is impacted by

DCN their first 7 months



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

TMK1536 0214 Agent training only. Not for sales use.


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

Currently measuring 9/25 to 12/24

FEB25

MARCH24

APRIL24

MAY24

JUNE24

JUNE25

DCNCalculated

1 2 3

Submitted Business

1 2 3

DECLINES, CANCELLATIONS, NOT TAKENS

4

Reports Published

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

$100 $350 $350 $200

Submitted Business

Declined, Cancelled, Not Taken Premium


Example: Calculating Payroll Deduction DCN

Currently measuring business submitted 7/25 to 10/24

DEC

25JAN

24FEB

24MARCH

24APRIL

24MAY

24JUNE

24JUNE

25

DCNCalculated

1 2 3

Submitted Business

Reports Published

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

$0 $0 $400 $0

DECLINES, CANCELLATIONS, NOT TAKENS

1 2 3 4 5 6

$0 $600

Submitted Business

Declined, Cancelled, Not Taken Premium


DCN: Can we get the business to the customer?

Persistency: Do they keep it?



Definitions

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


Agents Direct Pay and Bonus is impacted by

PersistencyMonths 8 and beyond



Example of 88% 4-Month Persistency

$8,800 Paid 4 Months

$10,000 Issued

Premium


Example: Calculating Persistency

Currently measuring business issued June 1, July 1, August 1

OCT

25NOV

24DEC

24JAN

24FEB

24MARCH

24APRIL

24MAY

24JUNE

24JUNE

25

PersistencyCalculated

1 2 3

Submitted Business Reports Published

Paid 4 months or greater

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

$12,000

Issued Business


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



13th Month Persistency is the most important measure

of quality in regards to wealth building



Example: Calculating 13-month persistency

Currently measuring business issued Sept. 1, Oct. 1, Nov. 1 2012

FEB12

MAR12

APR12

MAY12

JUN12

JUL12

AUG12

SEPT12

OCT12

NOV12

DEC12

JAN13

FEB13

MAR13

APR13

MAY13

JUN13

Paid 13 months

$9,000

$4000

$4000

$4000

Issued Business


Example of 75% 13-Month Persistency

$7,500 Paid 13 Months

$10,000 Issued

Premium


Why all this focus on quality?

• Policy must be in force 18-24 months before Liberty makes a profit

• Whole Life Policy• 60% Agent Commission of Annual Premium• 10% Supervising Agent Commission of AP• 35% Agency Director Commission of AP• 25% Agency Owner Commission of AP• 130% of First-Year Premium• Plus Home Office expense for marketing,

underwriting, printing, mailing policy, etc.


How does Quality impact pay & retention?

• 1. Chargebacks

Months Premium Paid

Chargeback %

0-2 months 100%

3 months 90%

4 months 80%

5 months 70%

6 months 60%

Months Premium Paid

Chargeback %

7 months 50%

8 months 40%

9 months 30%

10 months 20%

11 months 10%



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



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


Agency Owner/Director example

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



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



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

Bonus multiplier month 8 and beyond


Oh by the way … Career Track



• Last but certainly not least…

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


So how does that translate to dollars?



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

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

week average?



Take Home Pay

8 DCN Agent takes home $8,400 more



II. Reviewing Applications in the Portal



When and where to I review apps?

• Every day. First thing when you come in and last thing before you leave. Don’t let it stack up on you.

• Advantage of Daily Upload: • App doesn’t effect Agency DCN if not paid on it

and doesn’t count toward bonus• Opportunity to make bonus if app changed to trial

or cancelled• It’s the World Wide Web. You can access from

anywhere you have an Internet connection• Find a quiet place where you are uninterrupted• You call for others, they do not come to you


Application Review Deadlines

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

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

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


Application Review Process

• Application Written by Agent (7 days to upload)• Agent uploads App to Portal

• Weekly deadline Monday 3:30 p.m. Central • 10 days to upload• Once an application is upload, it cannot be

recalled

• QM should only hold apps:• Applicant requests specific draft date• Worksite case awaiting third applicant


A-250 vs. Batch Applications

• The A-250 application is the individual life insurance application (the one with 32 questions). When submitted to the Home Office, they go to an underwriter for review prior to issue.

• All other applications are considered Batch applications. When submitted to the Home Office, they go through a computer and issue the following day.


Using the Portal

Access the Portal by clicking the icon on Agent Services


Using the Portal

Once logged in, look at the Submitted Applications box, which shows the Pending Annual Premium ($7,579 in this example) and number of Pending Applications (45 in this example)


Portal Columns

• Click on the column headers to sort by that column• If it’s an individual policy, there will be no Franchise

#• Date Signed = When customers signed up• Date Uploaded = When agent uploaded to portal• Agents should upload daily


Portal Columns

• Annual premium is the amount of premium the insured will pay each year for that policy

• Payment mode will have PD if Payroll Deduction• Trial will have Torch symbol if it is a trial app


Review Process: Step 1

• Upload all the ADPs• ADP = $3,000 Accidental Death Policy• ADPs show an Annual Premium of $0



• Click on Related App shows all applications submitted on a single payor


Related Apps

• Shows total amount of coverage purchased• Sheds light on total premium sold in the sale• Need to know this for bank verification• Don’t upload all apps from a family until all questions

are answered. Many times, if one app is declined or cancelled the insured will cancel applications



• View the image of the application by click on the Actions column

• Once an application has been viewed, it will show as a check mark

• If it has not been viewed, it will show as the application icon


Reviewing Applications

• Recommend sorting applications by the Franchise # column so that you can review the Bank Draft policies first

• Bank draft policies take longer to review, requiring more time to:• Verify bank information• Contact managers or customers to verify

information on the app• You can get your calls out and be waiting for

responses while you move on to your PD apps


Reviewing Individual Applications

• Application review doesn’t being until the following have been submitted:• What Comes Next Form• Summary Sheet• Voided Check• Oral Swab form or bar code sticker

• Once all materials received, verify bank information. If the bank info is bad or funds are not available, no sense spending time reviewing the app



• Conduct Agency QAC using script on Agent Services

• Recommend QAC for: • Medically questionable applications• Agents in first 60 days• Agents with below average DCN or Persistency• Large face amounts • Group Term apps with ‘Yes’ answer on No. 9

• QM communicates down chain of command to ADs only and gets answers before moving forward

• App approved/cancelled/changed to trial


Review Payroll Deduction Applications

• Check roster to make sure employee is eligible• Employee must be employed six months or one

year by end of enrollment period• Re-enrollments: Use Worksite Management

Information Report (AL915) to prevent duplicate coverage (Cancer Care/Endurance, Accident Protector Max) and exceeding coverage limits (Group Term, Career Life Plus, Cash Caner)

• On Applications, focus on:• Question No. 9 on Group Term• Medicaid Question


Updating Information

• Information on the application cannot be updated• Email Customer Service [email protected] if you

gather information during the app review process that would be good for the Underwriting Department to know

• If the Agent entered notes on the application, there will be a notepad icon in the Agent Notes column


Updating Information

• If during the bank verification process, it is discovered that the bank account information (routing or account number) is in accurate, it can be updated by clicking the plus symbol


Trial Applications

QM changes app to Trial by clicking the button in the portal

Customer receives a letter notifying them app was changed to Trial

Starting Out: Always check with Agency Owner before Trialing an App


Cancelling Applications

• Apps should be cancelled when the applicant has an uninsurable condition, Agent can’t be reached, customer calls in to cancel, duplicate applications

• QMs cancel by clicking the Cancel Application button. QM will have to provide a reason for cancel

• Customer will receive a letter• Starting Out: Always check with Agency Owner before

cancelling an App


Approving Applications

• Apps can be approved in two ways• Click the plus symbol next to the Writing Agent’s name• When the box expands, click ‘Approve Application’



• Apps can be approved in two ways• The second way, is to select multiple applications, and

choose ‘Approve Applications’ from the dropdown menu

• If the Agent has been contracted less than 90 days or whose DCN or Persistency are worse than the company average, their apps must be approved one at a time



• If the Agent has been contracted less than 90 days or whose DCN or Persistency are worse than the company average, you will see this message


III. Individual Applications



Agents Instruction Guide


Where can I find this information?

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



• Application review doesn’t being until the following have been submitted:• What Comes Next Form• Summary Sheet• Voided Check• Oral Swab form or bar code sticker

• Once all materials received, verify bank information. If the bank info is bad or funds are not available, no sense spending time reviewing the app


QM’s Best Line: “I’m sorry to hear that. Let me know when you get it and I’ll be glad to review your app.”





• Recommend QAC for: • Medically questionable applications• Agents in first 90 days• Agents with below average DCN or Persistency• Large face amounts




Top Reasons for Cancels

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


What Comes Next? Form



What Comes Next Form

• Completed on every individual sale• Top copy goes to customer, pink copy to Quality

Manager• Must be received by quality manager for application

to be uploaded to home office


What Comes Next? – Let’s fill one out


Summary Sheet

Agent training only. Not for sales use.


Summary Sheet

• Completed on every individual sale• Top copy goes to customer, pink copy to Quality

Manager• Must be received by quality manager for application

to be uploaded to home office


Summary Sheet


Oral Swab Form

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

• Do not upload app from portal until received


Oral Swab Authorization Form


App Review Packet



What’s in my App Review Packet

• All items found in the Agents Instruction Guide• Underwriting chart (A-4)• Build Chart (A-12)• Medical History Guide (A-28 through A-35)

• Plan Code Cheat Sheet


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


Medical History Guide

So let’s do a couple examples:

What is the “general” outcome for an applicant with…

1.Blood pressure problems2.Cancer3.Multiple DUIs


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


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


World’s Worst App



Key Areas To Review on A-250

• 1. Same last name as Agent: Personal Business

In the E-app, the question reads:

So who is immediate family?Agent, Spouse, Mother, Father, Brother, Sister, and

Children Agents may submit an app on immediate familymembers provided an e-mail is sent in advance [email protected]



• Age: Older, more likely to have health problems• Birthplace: Non-citizen requires extra paperwork• Height/Weight: Check Build Chart for rating

• What is the rating for 5-10, 295?



• 2. Drivers License: Why not have one? Not ID?



• 4. Employer: If no job, how going to pay? • 5. Occupation: Does a Janitor need $1 million• 8. Beneficiary: Do they have insurable interest? • 12. Base Plan: Standard or ALX? Face amount?

Trial?• 13. Amount Paid: $$$$• 14. Riders: Who else on the app?

• ADB = Accidental Death Benefit• PW = Premium Waiver



• Health Questions• Looking for ‘Yes’ answers and notes detailing why

the question was answered ‘Yes’. This is where we evaluate if an app should be cancelled or changed to Trial

• Expectation is that every ‘Yes’ answer has more detail listed in the Notes Section


Key Areas To Review on A-250 (Page 2)

• Who signed the app? • Difference between Proposed Insured and Applicant• This impacts Agent’s Statement• Good phone number for QAC call


Key Areas To Review on A-250 (Bank Info)

• Authorization for Preauthorized Payments • Bubble Sheet• Bank Draft Form R-3616

• Ever heard of the bank? • Routing Number Legit?• Account number more than 12 digits? • Requested draft date between 1st and 10th


Initial Draft

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

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


Draft Dates: Choose one between 1st – 10th

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

What day of the month do most people get paid?

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


What Agents are Trained to do…

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


What Agents are Trained to do…

• Get the check


We Don’t Accept

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

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

• Don’t take plastic


Key Areas To Review on A-250 (Notes)

• Notes should be specific and detailed (dates, frequency, treatments, dosage, last reading, etc.)


Medications/Conditions

• Never heard of a medication … Google it!


Trialing/Cancelling Applications



Trial Applications

• When applicants are medically questionable


Trial Applications

• Only A-250s can be changed to trial.• Agents can submit on trial by click the box in the

eapp• Trial applications do not pay commission until policy issues• If customer doesn’t take policy, does not

negatively impact DCN or Persistency

• Starting Out: Always check with Agency Owner before changing App to Trial


Trial Applications

QM changes app to Trial by clicking the button in the portal

Customer receives a letter notifying them app was changed to Trial

Starting Out: Always check with Agency Owner before Trialing an App


Cancelling Applications

• Apps should be cancelled when the applicant has an uninsurable condition, Agent can’t be reached, customer calls in to cancel, duplicate applications

• QMs cancel by clicking the Cancel Application button. QM will have to provide a reason for cancel

• Customer will receive a letter• Starting Out: Always check with Agency Owner before

cancelling an App


Agency QAC Script



Agency QAC Call: Let’s fill one out


When to use Agency QAC Script?


• Recommend QAC for: • Medically questionable applications• Agents in first 60 days• Agents with below average DCN or Persistency• Large face amounts




Pending Business Script: Bank Verification



Bank Verification Script


Bank Tracker



Purpose of the Bank Tracker

• Keep all bank info at your fingertips for faster bank verification

• Track all routing numbers and account number length

• Easy to identify new “banks” • Add your comments• Save on your desktop


Oral Swab Not Complete



Oral Swab Kits

No Oral Swab Code = No Upload

No excuse for not getting an Oral Swab.Do not upload an application without the code on the application:


Underwriting Requirements Chart

When is the Agent required to get an Oral Swab?


Oral Swab Authorization Form


Pending Business Script: QAC Call Not Complete



What is QAC Call?

• Quality Assurance Call. RIP same thing• Made from the Home Office to verify the information

collected by the Agent is accurate before the company issues a policy

• Company calls three times a day, six days a week for 21 days before App is cancelled

• After 7 days, we send a letter to applicant• If phone number is bad, QAC notifies Agency Owner


What Comes Next?


Pending QAC Script


Medical Records Not Received



Medical Records Not Received


Paper Applications



Paper Applications

• Must be received in Home Office by 10 a.m. Monday to be processed with that week’s submit

• Can only be used in states where the product is not available on e-app

• Call customers on Term Conversions, make sure they understand what happened and the increase in premium

• Conduct Bank Verification on CODs just like you would a new app


IV. Reviewing Worksite Applications



Worksite Applications

• Simpler Apps than the A-250• No bank verification, premiums from paychecks• No Oral Swabs• Apps cannot be changed to Trial• Two biggest challenges:

• Ineligible employees (roster)• Re-enrollments: Duplicate coverage or exceeds

limits


Worksite Application Review Process

• Check roster to make sure employee is eligible• Re-enrollments: Use Worksite Management

Information Report to prevent duplicate coverage and exceeding coverage limits

• Question No. 9 on Group Term• Medicaid Question


Eligible Employees


How to Read the Roster….

If the enrollment period ends in August 2013, which employees would not be eligible?


Worksite Management Information Report

Report AL915: Updates Saturdays


Plan Code Cheat Sheet


Marketplace Bulletins

• Where do I find out about policy limits and other rules?


Marketplace Bulletins

• Look in the Benefit Overview section of the Marketplace Bulletin

• Plans that most often exceed coverage limits:• Group Term: $150,000 employee issue age 40

and under. $100,000 employee issue age 41-55. $50,000 dependent.

• Career Life Plus: $50,000 maximum• Cash Cancer: $50,000 maximum


Duplicate Coverage

• Plans most likely to duplicate coverage Cancer Care/Endurance (5K) and Accident Protector Max (HA)


Collecting phone numbers on the eapp…

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


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)


E-app

• On Batch apps, the e-app will not allow the application to be completed if the height and weight limits are exceeded


E-app

• On Batch apps, if the applicant answers a question ‘Yes’ that would cause it to be declined, the agent receives this message and is not allowed to complete the app


E-app

• On Batch apps, if an applicant answers ‘Yes’ to the Medicaid question, the box below will appear.


Medicare

• On Batch apps, if the applicant answers ‘Yes’ to the Medicare question, the box below appears and the app cannot be completed.


V. COD Tracker



CODs

• CODs are the single biggest cause of cancellations


COD Tracker

• What is a COD = Collect on Delivery• It’s a policy that is mailed to the Agency because it

was rated or modified• Agency has 30 days to place the policy before it is

cancelled by the Home Office


What Comes Next?


COD Tracker

Quality Control Manager Instructions for Managing CODsThe only policies mailed to the Agency are CODs. They should be collected by the Quality Manager.

1. Log the COD on the COD Tracker. All the information needed to enter on the tracker can be found in the COD.

2. Make a copy of the COD and file it by the Monday date it will be distributed.

3. Meet with Agency Owner the Friday before the Monday meeting to determine who CODs should be distributed to (Agency Director/Supervising Agent or Agent)

4. Print out that week's COD tracker.

5. Have the person the COD is assigned to sign the COD tracker that they have received it. Make sure they understand the deadline for placement is two weeks from that Monday and that the COD should be turned back into the Quality Manager.

6. Meet with the Agency owner the Friday before the Monday meeting to determine who the CODs that haven't been placed should be re-assigned to.

7. Since CODs are turned back into the Quality Manager for submission to the home office, the Quality Manager can update the tracker to know what CODs have not been placed.

This system ensures that every Monday, CODs are assigned and those that were not placed are re-assigned.

By requiring a reason for why the COD was not placed, Agency Owners can identify training opportunities within their agency.


Organizing Your Drawer

• Folders for:• What Comes Next Forms• Pending Worksite Approvals• 5 folders for CODs• 12 folders for approved worksite cases


VI. Worksite Case Tracking



Individual vs. Worksite

• Individual Business (Bank Draft): Written in the home through the needs-based laptop presentation. Premiums paid through checking account

• Worksite Business: Also known as Payroll Deduction (PD) or Section 125. Written in the workplace to employees. Premiums deducted from employees’ paycheck and sent by employer to Liberty National


Where can I find this information?

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


Worksite Agent Guide


Enrollments and Re-enrollments

• Worksite cases have an initial enrollment period often called the Annual Enrollment

• The second and subsequent enrollments are called re-enrollments. They can happen every six months. They are often called mid-year enrollments


Worksite Approval Paperwork



Worksite Process

• Agent secures agreement with business owner to allow Liberty to offer benefits to his employees


Use the Electronic Packet

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

deduction, and effective dates• Gives reminder to get roster


Worksite Approval Paperwork

• Agent turns in Approval Paperwork to Quality Manager with signed roster (hard copy or email)

• Quality Manager reviews paperwork and corrects any missing/inaccurate information

• Quality Manager gets the paperwork signed by Agency Owner

• Quality Manager emails signed paperwork to [email protected]

• Agency Owner and Quality Manager receive approval email from Worksite Department


So what is the QM reviewing?

• Must have signed roster• Must have good contact information, preferably

multiple contacts and email addresses• Payment mode• Verify enrollment dates, deduction date, and

effective dates are correct. Electronic packets do this automatically


Reviewing the Packet



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

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



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

• 8. Make sure dates are correct on paper packets


Worksite Case Approval Email

• Gives the Franchise Number• Sets the employment rule length (6 months or 1-year)


Worksite Case Unable to Contact

• Agency Owner receives email when unable to complete verification call





New Worksite Case Tracking



Three Periods of Worksite

• Enrollment Period: Always ends on last day of month• Deduction Period: Always one month long• Effective Period: Always the first of the month


New Worksite Case Tracker

• On Worksite Cases, if it starts good, it stays good. If it starts bad it stays bad

• QM’s are responsible for making sure the first bill gets paid

• We do that by verifying three critical points:• Payroll Deduction Authorizations delivered• Deductions Started• First Bill Received


Enrollment PeriodJanuary

Deduction PeriodFebruary

Effective PeriodMarch

LateApril

22

Bills Mailedor E-mailed

10-11

EnrollmentConducted

30

Verify PDAuthorizations

Delivered

1

$401

Bill Due

2-3

VerifyDeductions

Started

2

10

VerifyBill

Received

3

16

LateE-Mail

From HO

1

LukeInvolved

19

CommissionChargeback

30

NotTakenStatus

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

The Three Periods of Worksite

$105

Premiums DeductedFrom Employee Paycheck

$1012

$1019

$1026


Creating New Case Tracker

TMK1536 092910 Agent training only. Not for sales use.



• Report PD01 Franchise Initial Premium Unpaid• Updates Daily• Cases stay on this report until first payment is applied

or it becomes 60 days past due and becomes a not taken




New Worksite Case Scripts



New Worksite Case Verification Calls

• On Worksite Cases, if it starts good, it stays good. If it starts bad it stays bad

• QM’s are responsible for making sure the first bill gets paid

• We do that by verifying three critical points:• Payroll Deduction Authorizations delivered• Deductions Started• First Bill Received


PD Authorization


PD Authorization


What happens every week?

• Last week of January• Were authorizations for January enrollments

turned in to bookkeeper?• First week of February

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

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

• Are all cases paid for February?


New Worksite Case Script


Email From Home Office

• Sent on 16th of month


Red Alert

• PD01001: Franchise Initial Premium Unpaid (Daily)


The Worksite Timeline

49 days late

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

60 days late

Letter generated from the Home Office to all policyholders and Employer

Policies become Not Takens against the DCN of everyone paid on the case


Letter Customers Receive


Letter Employer Receives


The Worksite Timeline

After 60 Days

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


Worksite Reinstatement Requirements


Tracking Existing Cases



Why track existing cases?

• To ensure prompt payment:• Keeps commissions and renewals coming• Identify issues with the business• Make sure they are paid current

before re-enrollments• Do not re-enroll a case that past due for payment


Tracking Existing Cases

• Use Qlikview Worksite Dashboard• Updates Tuesdays


What happens every week?

• Last week of January• Were authorizations for January enrollments

turned in to bookkeeper?• First week of February

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

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

• Are all cases paid for February?


Existing Cases Script



Existing Worksite Case Script


Worksite Online Billing

• Most common challenges with WOBS• Don’t receive emailed bill (they don’t get a paper

bill). Comes from [email protected] on the 22nd of the month

• Can’t log in (PIN is on the bill)


Moving Payroll Deduction Customers to Bank Draft



Moving Payroll Deduction to Bank Draft

• More premium lost on this issue than any other!• Are you licensed? If so …

• Will move transferred business to you for commissions


PD Authorization


PD Authorization


Worksite Bills – Marking off Employees

• Bill with ‘P’ permanents marked off


Worksite Bills

• Bill with ‘P’ permanents marked off


Moving Payroll Deduction to Bank Draft

• List is published on the Saturday SAMs

• Customers who purchased on Worksite that are no longer with the company


Payroll Deduction to Bank Draft Sample



Transferring PD to Bank Draft Sample


Transferring PD to Bank Draft Sample

Use the Field Inquiry Screen on Agent Services to lookup customer’s phone number by using policy number


Transferring Policyholders to Bank Draft Script?



Transferring PD to Bank Draft Script


Waiving Premium Rules

• Will waive up to two months premium• Will only waive premiums that are missed


Policy Exceptions

• Employer must make one payment for Group Term to be eligible to be moved to bank draft

• Dental and Vision cannot be moved to bank draft


VII. Tracking Lost Business?



Tracking Lost Business

Use Qlikview Minimum Standards DashboardUpdates TuesdaysTwo goals: 1. Fix it. 2. Learn from it


Tracking Lost Business

QM should be communicating with Agency Directors to get answers as to why business was lost and who is getting it fixed by when. This will not get done through email. It requires face to face or phone calls to get answers

This report should be ready by the Friday meeting with the Agency Owner


Tracking Lost Business – Before

Agy Dir Name Cancel Reason

JOHNSON, CARLEUS D OUTDATED COD

PATTON, MICHAEL A OUTDATED COD

PATTON, MICHAEL A OUTDATED COD

JOHNSON, CARLEUS D -


JOHNSON, CARLEUS D MISCELLANEOUS

JOHNSON, CARLEUS D CANCELLATION REQUESTED BY BRANCH OR PI

JOHNSON, CARLEUS D CANCELLATION REQUESTED BY BRANCH OR PI

WOODSON, TONYA A CANCELLATION REQUESTED BY BRANCH OR PI


JOHNSON, CARLEUS D MEDICAL FINDINGS DECLINE

LACHMAN, CAPILDEO D MEDICAL FINDINGS DECLINE

DOWLING, DAN J -

WOODSON, TONYA A -

WOODSON, TONYA A -

WOODSON, TONYA A -

WOODSON, TONYA A -

WOODSON, TONYA A -

PATTON, MICHAEL A -

PATTON, MICHAEL A -


LACHMAN, CAPILDEO D -





TETREAULT, KYLE W -

WOODSON, TONYA A -

DOWLING, DAN J -



Tracking Lost Business – After

Agy Dir Name Cancel Reason

TRIPP, ALAN P AD is going to visit client and try to place on BB

JOHNSON, CARLEUS D AD is sending an agent on Tuesday (1-28) to pick up proof of citizenship

JOHNSON, CARLEUS D agt going today to conserve business today

DOWLING, DAN J Client has a critical illness policy & agent deleted the cancer off and wrote a cancer policy & HO cancelled that app. AD is checking with HO

DOWLING, DAN J Laid Off

DOWLING, DAN J Laid Off

LACHMAN, CAPILDEO D Sunrise Health-AD trying to save

LACHMAN, CAPILDEO D Sunrise Health-AD trying to save

LACHMAN, CAPILDEO D Wrong Acct # given, agent correcting

LACHMAN, CAPILDEO D Wrong Acct # given, agent correcting

JOHNSON, CARLEUS D Agt Merton going out today to get info from client regarding name, phone no & addess from client

JOHNSON, CARLEUS D Needed oral swab sent last week and needing MVR ordered

JOHNSON, CARLEUS D Agent picking up check this morning to catch up policy. Agent will try to change payment from PD to BB

PATTON, MICHAEL A Changed his mind

LACHMAN, CAPILDEO D Left employment


VIII. SAMs/Reports



SAMs

• SAMs are the daily communication for what happened regarding pending or issued business yesterday in the Agency prior to 3:30 p.m. Central

• Reports are the snapshot of EVERYTHING that is pending in the Agency


A-250 vs. Batch Applications

• The A-250 application is the individual life insurance application (the one with 32 questions). When submitted to the Home Office, they go to an underwriter for review prior to issue.

• All other applications are considered Batch applications. When submitted to the Home Office, they go through a computer and issue the following day.


Monthly Premium Notices

• About to Lapse, call them, go see them if no phone number.


Monthly Premium Notice Script


BB Stop Pays

• Requested by Insured or Agency. Call customer to find out why they stopped pay.


Applications Processed

• All applications that were received in the home office by 3:30 p.m. Central the previous day


Loans, Surrenders, EI, and RPU



• Loans: The customer took out a loan on the policy or it went on Automatic Premium Loan. No action.

• Extended Insurance (EI): Customer stops paying premiums. Premiums are then paid by the cash value of the policy until the cash value is $0. Only currently offered on Whole Life and Career Life Plus policies, but some discontinued products also offer this feature. Renewals continue until no cash value.



• Surrenders (CSV): Cashed out the policy and cancelled the coverage.

• Reduced Paid Up (RPU): Customers stops paying premiums. The policy has reached a point where the premiums paid will purchase an amount of coverage less than the original face amount. Only on Whole Life and Career Life Plus policies. Renewals end.


QAC / RIP Notifications

• Appears when first posted, then once more when it goes to letter status (10 days past due). Track on OI125 LNL New Business Status Report. Call the customer and get them to complete QAC Call



• Appears when first posted, then once more when it goes to letter status (7 days past due). Track on OI125 LNL New Business Status Report. Call the customer and get them to complete QAC Call



• Letter status notification. Call the customer and get them to complete QAC Call.


NSF Return for Initial Premium

• No action • Automatically redraft next business day if policy

effective date current month. Re-draft on draft date of effective month if future effective date.

• Do not contact customer or go get check


Non-NSF Emails

• Only for Non-NSF failed drafts (closed account, frozen account, account not found)

• Day 1: Email Agency Day 11: Call customer• Day 5: Call Agency Day 14: Report Adverse• Day 8: Email Agency


Status

• Shows all pending requirements added on an application.


Oral Swab Confusion

• 2. Bar code was received with the app and we’re waiting for results from lab. No action.

• 4. Bar code was NOT submitted with the app. Must be submitted before underwriting can be completed.


COD 15 Days Past Due

• Additional reminder. Should be already assigned on the COD Tracker.


Policies Issued

• Shows policies issued the previous day prior to 3:30 p.m. Central Time


Bank Draft Returns

• Existing Business where the monthly bank draft was returned. Company automatically redrafts. No action on agency.


Cancelled/Declined Apps

• Tells why an application was Cancelled or Declined. If A-250 application, get requirements completed and re-open application.


Cancelled/Declined Apps

• Tells why an application was Cancelled or Declined. If A-250 application, get requirements completed and re-open application.


SAMs vs. Reports

• SAMs are the daily communication for what happened yesterday in the Agency prior to 3:30 p.m. Central

• Reports are the snapshot of EVERYTHING that is pending in the Agency


Key Reports

• 0I125 LNL New Business Status Report• Updated Tuesdays• Status on all pending A-250 application

requirements


Key Reports

• BI925 Batch Pending• Updated Daily• Status on all pending individual batch requirements


Key Reports

• BI925 Batch Pending Worksite • Updated Tuesdays• Status on all pending batch worksite application

requirements


Key Reports

• OI525 CODs by Days Pending• Updated Fridays• Status on all pending CODs that have not been

issued or cancelled


IX. Reinstatements



ReinstatementsRules



Reinstatement Rules

• Reinstatement Application required:• Life policy face amount less than $50,000,

120 days past due• Life policy face amount $50,001 or more, 60 days

past due• Health policy lapsed 91 or more days. Cannot be

reinstated if lapsed more than six months• Cash Cancer polices cannot be reinstated


Standard Reinstatements



Standard Reinstatements

• Reinstatements where the policy was reinstated by the original writing agent or otherwise did not qualify for the Reinstatement Bonus

• These Reinstatements should be mailed to: Liberty National Premium Accounting

P.O. Box 268891 Oklahoma City, OK 73126


Bonus-Paying Reinstatements



Bonus-Paying Reinstatements

• Reinstatements that meets the criteria for a reinstatement bonus

• These Reinstatements should be mailed to:

Liberty NationalAttn: Amber Dunlap 100 Concourse ParkwaySuite 350Hoover, AL 35244


How is the bonus paid?

• Life: Bonus equal to 25% of the annual premium

• Accident and Health: Bonus equal to 15% of the annual premium

• No Bonus paid on Med Supp, Dental, Vision, ADP


How is the bonus paid?

• Reinstatements processed in the home office by the first Friday of the month will be paid by the 15th (Example: Dec. 6)

• Agency Owner will receive a physical check mailed to the Agency for purpose of recognizing the agent

• Agent must be active at the time of bonus payment


How are commissions & renewals paid?

• Policies reinstated in the first policy year:• Reinstating agent receives any remaining first-year

commission, paid to commission account (same for managers)

• Reinstating agent receives renewals as earned beginning the 13th premium payment

• Policies reinstated in second or subsequent year:• Reinstating agent receives renewals as earned

starting with next premium payment

• No negative impact to DCN if reinstated policy lapses again


Premium Notice/Combined Billing (FA215)

• Published on Saturdays (ready for Monday call clinic)• Most policies lapse on 18-20th of the month• Agents use first 15-30 minutes of each call clinic to

call delinquent customers on their agency


When does a reinstatement qualify for bonus?

• Policy must have lapsed (49 days past due)• Reinstating agent must be different than the original

writing agent• Must collect all back premiums and current month• Must be reinstated on bank draft• Check for back premiums must be from same bank

account as ongoing bank draft• Bonus only paid once on a policy


Example of all back premiums + current

• Today is Sept. 26• Reinstating lapsed policy with a premium of $30 per

month with a July 1st (7/1) Date Paid to (DPT)

• Agent must collect $90:• $30 for July• $30 for August• $30 for September

Draft October’s premium from checking account

End of the month reinstatements, go ahead and get next month’s premium.


How is Reinstatement Bonus paid?

• Agency mails weekly:• Reinstatement Bonus Transmittal• Reinstatement Request Forms with checks for

back premiums for each reinstatement• Authorization for Preauthorized Payments • Life reinstatement applications (when applicable)

• Policies in force when reinstatement has been approved and money is applied

• Quality Control Manager should be handling this!


Reinstatement Bonus Transmittal


Who are we calling?

• Lapse list emailed as spreadsheet by Home Office 22nd of each month from [email protected]

• List is pure lapses. No cash value, Extended Insurance, Reduced Paid Up, Death Claims


The List

• Quality Control Manager should be in charge of distributing and tracking lapsed policies

• All Reinstatements are turned in to the Quality Control Manager so she can submit to Home Office and provide Agency Owner info on who is doing the best job working them (play the hot hand)

• Don’t distribute all the leads at once

• Lapses don’t go bad, people’s situations change. That’s why we are distributing multiple months


Sorting the List

• The list is sorted by ZIP Code to group leads• Then it is sorted by Payor Name so all policies are

grouped• Then it is sorted by Insured Name


The List

• Plan Codes Cheat Sheet should be printed out for call session. Codes not listed can be found in the Policy Prefix Book

• Last Paid: If there is a letter in this column, the last premium was paid via Payroll Deduction

• Issue Date: Date policy originally purchased. Good for reminding customer how long they have been paying for policy


The List

• DPT: Date Paid To. This is the last month the customer paid a premium. Used to calculate how many premiums the Agent will need to collect

• Payor Name and Insured Name can be different. Examples include husband paying for wife, grandparent paying for grandchild, etc. Ask for the Payor when you call.

• Some will have no phone number or bad phone numbers. We have an address, go see them. PO Boxes use zabasearch.com


Getting Policy Info

• Because the lapsed policy is not typically in the Agent’s agency, the Agent will need the Quality Manager to pull the customer’s info from the Field Inquiry screen prior to going on the appointment


What do we say?

This is a customer service call, not a sales call!


What do we say?

No matter the response, set the appointment.


Mailing Reinstatement Letters

• Use approved Reinstatement Letter• Can edit your contact information



• Set up Business Reply Mail account through post office for reply envelopes. Only pay for postage you use



• Handwrite customer’s name and address on outside of outbound envelope. Call three days after mailing

• Reinstatement Letters only for customers outside of your area. Additional activity

• Perfect for you Quality Control Manager (can receive bonus if licensed)

• Bonus/commissions/renewals paid the same on policies reinstated through the mail


Reinstatement Request


Reinstatement Letter


Plan Code Cheat Sheet


X. Miscellaneous






Key Contacts

• Must be emailed from your [email protected] address• Customer Service: Everything

• [email protected]• 205-325-4979

• Worksite Department: Billing, New Bills, Rosters• [email protected]

• Agency Support: Technical Issues• [email protected]• Use LogMeIn on Agent Services


Any Other Questions?



Homework

• Schedule follow-up call• By Friday• Email me:

• Lost Business Tracker• New Case Tracker• Existing Case Tracker• Re-enrollment Tracker• COD Tracker


Luke Gilliam, VP Quality Business

• Contact Info• Office: 972-569-3747• Cell: 214-415-3660• [email protected]

Documents

Agent training only. Not for sales use.TMK1536 0214 Quality Manager Training Updated Feb 2014 Agent training only. Not for sales use.TMK1536 0214