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Writing Quality Business Updated August 2014

Writing Quality Business Updated August 2014. Agent training only. Not for sales use. LNL2280 0814. It’s not how much you write, it’s how much you keep. Agent training only. Not for sales use. LNL2280 0814. Quality or Quantity? Both!. Top Agents in 2013. What’s in it for you?.

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Writing Quality Business Updated August 2014

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  1. Writing Quality Business Updated August 2014 Agent training only. Not for sales use. LNL2280 0814

  2. It’s not how much you write, it’s how much you keep. Agent training only. Not for sales use. LNL2280 0814

  3. Quality or Quantity? Both! • Top Agents in 2013

  4. What’s in it for you? • Make more money by writing quality business • Make more money by helping your Agents write quality business • Make more money by retaining Agents

  5. What resources are available to help me write better business? Agent training only. Not for sales use. LNL2280 0814

  6. Where can I find this information? This Powerpoint found on Agent Services in the Quality Business section ‘Writing Quality Business Powerpoint’

  7. Where can I find this information? Individual underwriting rules found in the Agent Instruction Guide on Agent Services:

  8. Agents Instruction Guide

  9. Where can I find this information? Worksite guidelines are found in the Worksite Agent Guide on Agent Services:

  10. Worksite Agent Guide

  11. Deadlines Agent training only. Not for sales use. LNL2280 0814

  12. 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

  13. Uploading Applications • Applications should be uploaded from an Agent’s laptop daily • After seven days, applications will automatically upload from the Agent’s laptop to the portal when the agent syncs their computer • Communicate with QM if: • Applicant request draft on certain day of week • Don’t have three employees that have purchased on a new worksite case

  14. DCN Agent training only. Not for sales use. LNL2280 0814

  15. What is DCN? Did we get the business to the Customer?

  16. What is DCN? Declines (<1%): Primarily worksite. Poor training, systems, and oversight. Cancellations (2%): Primarily individual. Poor training, systems and oversight. Not-Takens (6%): Primarily worksite. Poor training, systems and oversight. Company DCN 9% as of June 2014

  17. Agents Direct Pay and Bonus is impacted by DCN their first 7 months Agent training only. Not for sales use. LNL2280 0814

  18. Agents receive maximum direct pay and 100% of bonus first two months. Agent training only. Not for sales use. LNL2280 0814

  19. How is DCN calculated? Declined Premium Submitted Premium Cancelled Premium Not Taken Premium

  20. Example of 8% DCN $0 Declines $10,000 Submitted Premium $300 Cancels $500 Not Takens

  21. Example: Calculating Individual DCN $4,000 $4,000 $4,000 Reports Published 3 2 1 Submitted Business Submitted Business $100 $350 $350 $200 4 3 2 1 Declined, Cancelled, Not Taken Premium DECLINES, CANCELLATIONS, NOT TAKENS DCN Calculated

  22. Example: Calculating Payroll Deduction DCN $4,000 $4,000 $4,000 Reports Published 3 2 1 Submitted Business Submitted Business $0 $0 $400 $0 $0 $600 4 3 2 1 6 5 Declined, Cancelled, Not Taken Premium DECLINES, CANCELLATIONS, NOT TAKENS DCN Calculated

  23. Persistency Agent training only. Not for sales use. LNL2280 0814

  24. What is 4-month Persistency? Got the business to the Customer, do they keep it?

  25. Agents Direct Pay and Bonus is impacted by Persistency Months 8 and beyond Agent training only. Not for sales use. LNL2280 0814

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

  27. Example: Calculating Persistency $5,000 $5,000 $5,000 Issued Business 3 2 1 Reports Published Submitted Business $12,000 Paid 4 months or greater Persistency Calculated

  28. Example of 90% 4-Month Persistency $10,000 Issued Premium $9,000 Paid 4 Months

  29. What is 13-month Persistency? How much of my hard work, effort, and energy is paying me a renewal?

  30. Example: Calculating 13-month persistency $3300 $3300 $3300 $7,500 Paid 13 months Issued Business

  31. Example of 75% 13-Month Persistency $10,000 Issued Premium $7,500 Paid 13 Months

  32. Goals • DCN 6% or less: Agents on DCN earn maximum direct pay and 110% bonus • 4-Month Persistency 93% or better: Agents earn maximum direct pay and 120% bonus • 13-Month Persistency 75% or better: Agents maximize their income through renewals

  33. New DCN and Persistency Reports are published on the 25th of each month. Agent training only. Not for sales use. LNL2280 0814

  34. How do I check my DCN and Persistency? Agent Services on www.libertynational.com Click on ‘Field Reports’

  35. How do I check my DCN and Persistency? Reports are AL566

  36. How does Quality impact pay & retention? • 1. Chargebacks

  37. How does Quality impact pay & retention? • 1. Chargebacks • 2. Direct Pay submit advance commissions

  38. How does Quality impact pay & retention? • 1. Chargebacks • 2. Direct Pay submit advance commissions

  39. 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) • * Assuming positive commission account. Negative commission account, pay reduced more.

  40. How does Quality impact pay & retention? • 1. Chargebacks • 2. Direct Pay submit advance commissions • 3. DCN: Bonus multiplier first 7 months

  41. How does Quality impact pay & retention? • 1. Chargebacks • 2. Direct Pay submit advance commissions • 3. DCN: Bonus multiplier first 7 months & Persistency Bonus multiplier month 8 and beyond

  42. Oh by the way … Career Track

  43. How does Quality impact pay & retention? • Last but certainly not least… Renewals Renewals Renewals Renewals Renewals Renewals Renewals Renewals Renewals Renewals Renewals Renewals Renewals Renewals Renewals Renewals Renewals Renewals Renewals Renewals Renewals Renewals Renewals Renewals Renewals Renewals Renewals Renewals Renewals Renewals Renewals Renewals Renewals Renewals Renewals Renewals Renewals Renewals Renewals Renewals RenewalsRenewalsRenewalsRenewalsRenewalsRenewals RenewalsRenewalsRenewalsRenewals

  44. So how does that translate to dollars? Agent training only. Not for sales use. LNL2280 0814

  45. What does an 8% vs. 18% DCN mean to an Agent in his first seven months with a $1,425 per week average? Agent training only. Not for sales use. LNL2280 0814

  46. Take Home Pay 8 DCN Agent takes home $8,400 more Agent training only. Not for sales use. LNL2280 0814

  47. So when is a good time to train on Quality? Agent training only. Not for sales use. LNL2280 0814

  48. So when is a good time to train on quality? • Orientation • Ongoing classroom training – • New Agents & Agents/Managers DCN above co. avg • Use this powerpoint • First sale • First DCN report

  49. Individual Business A-250 Application Agent training only. Not for sales use. LNL2280 0814

  50. Top Reasons for Cancels Cancellations (2%) Outdated COD Non-Sufficient Funds (NSFs)/Bad Bank Information Requested by customer (QAC) QAC not completed Additional underwriting call, exam not complete Oral swab not complete Medical records not received

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