Special Producer Compensation Program Dental, vision and hearing coverage. Ameritas Life Insurance Corp. Ameritas Life Insurance Corp.

Transcription

1 Special Producer Compensation Program Dental, vision and hearing coverage Ameritas Life Insurance Corp. Ameritas Life Insurance Corp. of New York GR For Producer Use Only.

2 table of contents Why Ameritas How to Calculate Your Bonus Step 1 : In Force Bonus Step 2 : Persistency Adjustment Step 3 : Bonus Step 4 : Premium Growth Bonus Step 5 : Total Bonus Qualification Compensation Growth Program Details why Ameritas At Ameritas, we help people with the dental, vision and hearing benefits they need for good health. As one of the nation s leading providers of group dental and vision insurance products, Ameritas provides or administers coverage for more than 6 million employees and their dependents, through more than 113,000 employer groups nationwide. Our flexible, affordable plans and services are backed by more than 30 years of experience in group dental, and more than 20 years in group vision. We measure our success by the number of people we help, not by the numbers captured in an accounting spreadsheet. And though we are financially strong our parent company holds more than $31.4 billion in assets under management, about $17.7 billion in insurance assets, and $2.4 billion in total equity it wouldn t mean anything if we didn t value our relationships with our producers and care about our customers. We do more than provide coverage. We help create beautiful smiles, and put life in focus. We promote good health, and listen to problems and provide solutions. We build and maintain strong relationships, and open doors for each and every patient. We make sure there s always a friendly human voice on the other end of the line. We make the complicated world of benefits uncomplicated. how to calculate your bonus Follow these steps to calculate your Special Producer Compensation bonus. Prior to calculating your bonus, you will need the following information, which can be obtained from your Ameritas sales representative. In Force Annualized Business Premium as of December 31 of prior year. $ In Force Business Lines of Policy Coverage as of December 31 of prior year. Actual (or estimated) Annualized Premium for current year. $ Actual (or estimated) Lines of Policy Coverage for current year. In Force Annualized Business Premium for current year. $ Actual (or estimated) In Force Lives Persistency for current year. % Actual (or estimated) Percentage Growth of Annualized In Force Premium. (Current year-end In Force Annualized Premium divided by In Force Annualized Premium as of December 31 the prior year.) % Note: Use this brochure to calculate your Special Producer Compensation bonus or refer to our landing page at to use an interactive calculation tool. Page 2 of 8

3 how to calculate your bonus step 1 in force business bonus Adjusted In Force Premium* (Box A) Percentage Levels First $1 to $1,000,000 $ x % = $ Next $1,000,001 to $2,000,000 $ x % = $ In Excess $2,000,001 $ x % = $ table A In Force Bonus Prior Year - End In Force Business Page 3 of 8 < 5 Lines 5-9 Lines 10+ Lines < 2 Lines and Premium of < $150,000 Premium of $150,000-$299,999 Premium of $300,000+ Less than 10 Lines Lines and Premium of $150, Lines and Premium of $1,000,000+ aa bb bb bb dd dd Premium of $5,000,000+ cc ee ee table B Payout Schedule Adjusted In Force Premium (Box A) First $1 to $1,000,000 Next $1,000,001 to $2,000,000 In Excess of $2,000,001 Total Dollar Amount = $ What is your current In Force Annualized Business Premium? (see page 2) $ What is your Annualized Premium? (see page 2) $ Subtract your Annualized Premium from your current In Force Annualized Business Premium. Box A $ Allocate your amount in Box A into the three corresponding Adjusted In Force Premium rows and record those numbers in the calculation chart above. Using Table A In Force Bonus table below, find the intersection of your and your prior year-end In Force Business and this will be your starting level in Table B. Using Table B Payout Schedule table below, find the column (aa, bb, cc, dd, ee) that corresponds to your starting percentage level and fill in the percentage levels in the calculation chart above. Multiply your Adjusted In Force Premium* dollars by the appropriate Percentage Levels and record those amounts in the calculation chart above. Add the dollar amounts and record the sum in the Total Dollar Amount line in the calculation chart above. OR OR OR Percentage Levels aa bb cc dd ee 0.50% 1.00% 1.50% 2.00% 3.00% 0.25% 0.50% 1.00% 1.00% 2.00% 0.125% 0.25% 0.25% 0.25% 0.50% * Adjusted In Force Premium is equal to current year In Force Business Annualized Premium minus current year Annualized Premium (Box A)

4 step 2 find your persistency adjustment Total Dollar Amount from Step 1 Persistency Adjustment* Factor $ x = $ (Box 1) What is your actual (estimated) In Force Lives Persistency for current year? (see page 2) % Record your Total Dollar Amount from the calculation chart in Step 1 in the calculation chart above. Using the Table C In Force Lives Persistency table below, locate your Persistency Adjustment Factor that corresponds with your actual (estimated) year-end In Force Lives Persistency percentage for current year and record the factor in the calculation chart above. Multiply your Total Dollar Amount by the Persistency Adjustment Factor and record the result in the yellow Box 1 in the calculation chart above. table C In Force Lives Persistency 00.0% % % % 0.05 Persistency Adjustment Factor 76.0% % % % 0.20 In Force Lives Persistency 78.0% % % % % % % % % % % % % % % % % % % Note: Use this brochure to calculate your Special Producer Compensation bonus or refer to our landing page at to use an interactive calculation tool. * This only represents an estimate and does not indicate a guarantee of payment. Page 4 of 8

5 step 3 find your new business bonus Premium Percentage Levels First $1 to $1,000,000 $ x % = $ Next $1,000,001 to $2,000,000 $ x % = $ In Excess $2,000,001 $ x % = $ Total Dollar Amount = $ (Box 2) What is your acutual (estimated) Annualized Premium? (see page 2) $ Allocate your total Annualized Premium amount into the three corresponding Premium rows and record those numbers in the calculation chart above. Using Table D Bonus table below, find the intersection of your and your prior year-end In Force Business and this will be your starting level in Table E. Using Table E Payout Schedule table below, find the column (aa, bb, cc, dd, ee) that corresponds to your starting percentage level, and fill in the percentages in the calculation chart above. Multiply your Premium dollars by the appropriate Percentage Levels and record those amounts in the calculation chart above. Add the dollar amounts and record the sum in the Total Dollar Amount line in the yellow Box 2 in the calculation chart above. table D Bonus Prior Year - End In Force Business < 5 Lines 5-9 Lines 10+ Lines < 2 Lines and Premium of < $150,000 OR OR OR Premium of $150,000-$299,999 Premium of $300,000+ Less than 10 Lines --- bb dd Lines and Premium of $150, bb dd 20+ Lines and Premium of $1,000, bb dd Premium of $5,000, ee ee table E Payout Schedule Premium First $1 to $1,000,000 Next $1,000,001 to $2,000,000 In Excess of $2,000,001 Percentage Levels aa bb cc dd ee 0.50% 1.00% 1.50% 2.00% 3.00% 0.25% 0.50% 1.00% 1.00% 2.00% 0.125% 0.25% 0.25% 0.25% 0.50% Page 5 of 8

6 step 4 find your premium growth bonus Premium Growth Bonus = $ (Box 3) What is your actual (estimated) Percentage Growth of Annualized In Force Premium? (see page 2) % What is your In Force Annualized Business Premium as of December 31 of prior year? (see page 2) $ Using Table F Premium Growth Bonus table below, find the Premium Growth Bonus amount based on where your Percentage Growth and your prior year-end Annualized In Force Premium intersect and place that dollar amount in the yellow Box 3 in the calculation chart above. table F Premium Growth Bonus Annualized In Force Premium (In Force Premium at the end of the prior program year) $1M to $2M $2M to $3M $3M to $4M $4M to $5M $5M to $7.5M $7.5M+ Percentage of Premium Growth 5.0% - 9.9% $0 $0 $0 $0 $10,000 $25, % % $0 $0 $10,000 $15,000 $25,000 $35, % % $5,000 $10,000 $15,000 $25,000 $35,000 $50, % % $7,500 $12,500 $25,000 $35,000 $50,000 $75, % % $10,000 $15,000 $35,000 $50,000 $75,000 $100,000 30% or more $15,000 $20,000 $50,000 $75,000 $100,000 $150,000 step 5 your total special producer compensation bonus Box 1 $ Box 2 $ Box 3 $ Total Special Producer Compensation Bonus = $ Record the values of the yellow boxes 1, 2 and 3 in the calculation chart above. Add the amounts from the three yellow boxes above to determine your Total Special Producer Compensation Bonus amount. Note: Use this brochure to calculate your Special Producer Compensation bonus or refer to our landing page at to use an interactive calculation tool. This only represents an estimate and does not indicate a guarantee of payment. For producer use only. Page 6 of 8

7 qualification Your Special Producer Compensation qualification level is determined by your annual Annualized Premium sales in the program year and your In Force Business Premium as of December 31 of the prior year. Use the chart below to determine your current Special Producer Compensation qualification level. Qualification Level < 5 Lines 5-9 Lines 10+ Lines OR OR OR < 2 Lines and Premium of < $150,000 Premium of $150,000-$299,999 Premium of $300,000+ Less than 10 Lines --- Plus Elite Prior Year - End In Force Business Lines and Premium of $150, Lines and Premium of $1,000,000+ Silver Silver Plus Silver Elite Gold Gold Plus Gold Elite Premium of $5,000,000+ Platinum Platinum Plus Platinum Elite compensation growth At Ameritas we value our relationships with our producers. We recognize that our success comes from your dedication in creating innovative solutions for your client s dental, vision and hearing needs. The enhanced Ameritas Special Producer Compensation program rewards dedicated producers for their growth and retention of long-term relationships and their success in developing new relationships in the ever-changing world of insurance benefits. Compensation Growth Chart $200,000 Examples of Compensation Growth $180,000 $160,000 $140,000 $120,000 $100,000 $80,000 $60,000 $40,000 $20,000 $0 Elite Gold Gold Elite Platinum Platinum Elite Page 7 of 8

8 Special Producer Compensation program details Eligible Producers Subject to terms and conditions of the guidelines set forth below, licensed and appointed producers who place new fully insured dental, vision and/or hearing account and ASO fees are eligible for Special Producer Compensation (SPC). Rules In order to receive compensation for a contract, the producer must be the broker of record for the account at the end of the program. SPC is based on fully insured Ameritas dental, vision and hearing annualized premium and ASO fees. LASIK benefits do not count as a line of coverage. Sales made through Ameritas business partners or those who convert to Ameritas business partners are not eligible. Cases over $1 million are individually negotiated for the new production bonus. Edge Series products and cases are excluded from the SPC program. Trust product sales are not included in the SPC program and do not count toward qualification or bonuses. Individual product sales premium does not qualify. Block acquisitions may be excluded from the SPC program. In all matters relating to the interpretation or application of any rules or phase of this program, Ameritas decision is final. We reserve the right to cancel, amend or revoke the program at any time, for any reason. This only represents an estimate and does not indicate a guarantee of payment. For producer use only. In some states, producers are required to disclose to customers in writing, prior to the close of the sale, the producer s eligibility to receive commission or other compensation under the program. Ameritas supports disclosure of producer compensation so that customers can make an informed buying decision. Ameritas reserves the right to modify or discontinue the SPC program or any component thereof at any time. Payment Compensation is based on the bonus program schedules. All compensation received from the SPC program will be included on your IRS 1099 form. Any overrides paid during the program period will be subtracted from the in force SPC bonus. For ASO cases, only the fees will be credited to the in force annualized premium. is defined as the expected annual premium (the fee, if ASO) during the first 12 continuous months of the case s existence. In Force Business is defined as the expected total premium (the fee, if ASO) during the program period that is NOT part of the first 12 months of the case s existence. The term of the SPC program is January 1 to December 31 of the program year. The in force and new business SPC bonus is calculated twice a year: The June 30 amount is paid on October 15 (consisting of the bonus earned during the first six months of the year, if any, less any override compensation). The December 31 amount is paid on April 15 the following year (consisting of the bonus amount earned for the entire year, less any SPC amount already paid for the current year as well as any override compensation). Premium Growth Bonus is calculated once each year, on December 31 and paid out on April 15 the following year. It is calculated from the prior year s business versus the current year s business. Compensation will be paid to the licensed and appointed producer for the account on file with Ameritas. Accounts sold as shared sales will be split among the producers based on the shared percentage of commission or as determined by Ameritas. All cases must be received and approved before December 31 of the program year. Minimum lives persistency of 75% or greater required for New Production Bonus and Premium Growth Bonus. This bonus is paid on the current year s annualized premium or earned fees on tailored cases that are in force on the last day of the program period. In force business is any line of business that: a. was in force with Ameritas prior to the first day of the program year and b. remained continuously in force with Ameritas for at least the first month of the program year New business is any line of business that: a. was newly effective with Ameritas during the program year and b. remained continuously in force with Ameritas up to and including the last day of the calculation period Ameritas Life Insurance Corp. Ameritas Life Insurance Corp. of New York This information is provided by Ameritas Life Insurance Corp. (Ameritas Life). Group dental, vision and hearing care products (9000 Rev , dates may vary by state) and individual dental and vision products (Indiv Ed ) are issued by Ameritas Life. Some plan designs are not available in all areas. In Texas, our dental network and plans are referred to as the Ameritas Dental Network. Some states require that producers be appointed with Ameritas Life before soliciting its products. To become appointed with Ameritas Life, please call Most plans for groups with 26 or more enrolled lives are administered by Ameritas Life. Billing and eligibility for most plans with 25 or fewer enrolled lives are provided by HealthPlan Services, Inc. Ameritas, the bison design, "fulfilling life" and product names designated with SM or are service marks or registered service marks of Ameritas Life, affiliate Ameritas Holding Company or Ameritas Mutual Holding Company. All other brands are property of their respective owners Ameritas Mutual Holding Company ameritas.com