new Beginnings product & underwriting guide Mutual of Omaha Insurance Company cancer, heart attack & stroke insurance

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1 Mutual Omaha Insurance Company new Beginnings cancer, heart attack & stroke insurance product & underwriting guide 7920 for producer use only. not for use with general public.

2 Table Table Table page 1 Portfolio Overview Policy Descriptions o Lump Sum Cancer o Lump Sum Heart Attack & Stroke Optional Rider Descriptions o Cancer o Heart Attack & Stroke o Intensive Care Unit o Cash Value page 5 Coverage Options Premium Structure Maximum & Minimum Benefit Amounts Issue Age Program Outcomes Guaranteed Renewable Option Premium Savings Citizenship/Residency Foreign Travel & Rider Combinations page 6 Uninsurable Conditions Lump Sum Cancer Lump Sum Heart Attack & Stroke Intensive Care Unit Benefit Rider Build Chart page 9 Guideline Completion Assisting Non-English Speaking Applicants Checking Case Status Submission Eligibility for Payroll Deductions Business Submission Payroll Deduction Administrative Billing 7920

3 Table Table page 12 Time Service Incomplete s Appealing an Decision Denied s Replacements Downgrades Conversion from Term Coverage Premium Policy Issue and Delivery page 14 Licensing and Appointments Background Checks Errors and Omissions Insurance page 15 Submission Policy Delivery & Pending Mutual Omaha Licensing Sales Support Lump Sum Service Office Claims

4 Table Cancer, Heart Attack & Stroke These products provide a lump-sum cash benefit upon diagnosis cancer, heart attack or stroke. Policy benefits can be used any way client chooses. This gives m extra cash to help pay medical and non-medical expenses, including: Replacing lost income while y re f work Continuing to pay ongoing expenses, like mortgage payments, groceries and utilities Paying health insurance deductibles and copayments Hiring home health care or child care services Traveling to receive treatment Portfolio Overview This chart gives you an overview products available and allows you to clearly see similarities and differences. Issue Ages (Lifetime Coverage) Issue Ages (Term Coverage) Benefit Amounts $10,000 $20,000 $30,000 $40,000 $50,000 Policy Terms 10 years 15 years 20 years 30 years Lifetime Plan Coverage Individual Individual plus child(ren) Family Payment Schedule 100% benefit amount for cancer (internal cancer or malignant melanoma) Riders* Cancer Heart Attack & Stroke 18 to to to to 54 Heart Attack & Stroke Intensive Care Cash Value $10,000 $20,000 $30,000 $40,000 $50, years 15 years 20 years 30 years Lifetime Individual Individual plus child(ren) Family 100% benefit amount for heart attack or stroke 25% benefit amount for coronary artery bypass surgery or coronary angioplasty Cancer Intensive Care Cash Value Features and riders may not be available with all policies or approved in all states. Please refer to state special matrix. * Riders are available only at time issue. Intensive Care and Cash Value Riders are available only on lifetime coverage. 1

5 Table Lump Sum Cancer This policy is designed to provide benefits for cancer only (internal cancer or malignant melanoma). Coverage is not provided for or diseases or accidents. Here s How it Works: Upon diagnosis cancer, insured will receive a lump-sum payment 100 percent benefit amount selected. Once benefit has been paid, policy will end, unless benefits continue under an attached rider. Benefit Amounts Policy Terms Coverage Plans Available Riders* $10,000 $20,000 $30,000 $40,000 $50, year 15 year 20 year 30 year Lifetime Individual Individual & Child(ren) Family Heart Attack & Stroke Intensive Care Cash Value * Riders are available only at time issue. Intensive Care and Cash Value Riders are available only on lifetime coverage. Issue Age 18 to 99 Dependent Children Dependent children are eligible for coverage through age 25 or until date marriage, whichever occurs first Family Coverage Eir partner on a family plan may be primary insured. Premiums will be based on age oldest insured 30-Day Waiting Period A 30-day waiting period begins on policy effective date Guaranteed Renewable The coverage is guaranteed renewable for life or until end term period 2

6 Lump Sum Heart Attack & Stroke This policy is designed to provide benefits for heart attack and stroke or performance coronary angioplasty surgery or coronary artery bypass surgery only. Coverage is not provided for or diseases or accidents. Here s How it Works: Upon diagnosis heart attack or stroke or performance coronary angioplasty surgery or coronary artery bypass surgery, insured will receive a percentage benefit amount selected in a lump-sum payment: 100 percent for heart attack or stroke 25 percent for coronary angioplasty surgery or coronary artery bypass surgery (payable once per insured person during life policy) Once 100 percent benefit has been paid, policy will end, unless benefits continue under an attached rider. Benefit Amounts Policy Terms Coverage Plans Available Riders* $10,000 $20,000 $30,000 $40,000 $50, year 15 year 20 year 30 year Lifetime Individual Individual & Child(ren) Family Cancer Intensive Care Cash Value * Riders are available only at time issue. Intensive Care and Cash Value Riders are available only on lifetime coverage. Issue Age 18 to 99 Dependent Children Dependent children are eligible for coverage through age 25 or until date marriage, whichever occurs first Family Coverage Eir partner on a family plan may be primary insured. Premiums will be based on age oldest insured Guaranteed Renewable The coverage is guaranteed renewable for life or until end term period Table 3

7 4 Table Optional Rider Descriptions These riders are only available at time issue. Cancer Pays a lump-sum benefit upon diagnosis cancer (internal cancer or malignant melanoma). Benefit amounts $10,000 to $50,000 Issue ages 18 to 99 subject to additional health questions at time application 30-day waiting period for cancer coverage begins on policy effective date Available on heart attack & stroke policy only Available on lifetime and term coverage Heart Attack & Stroke Pays a lump-sum benefit upon diagnosis heart attack or stroke or performance coronary angioplasty surgery or coronary artery bypass surgery. Benefit amounts $10,000 to $50,000 Issue age 18 to 99 subject to additional health questions at time application and height and weight guidelines Percentage benefit payable: 100 percent for heart attack or stroke 25 percent for coronary angioplasty surgery or coronary artery bypass surgery (payable once per insured person during life policy) Available on cancer policy only Available on lifetime and term coverage Intensive Care Unit Pays a daily room benefit for each day confinement in an intensive care unit a hospital as result a sickness or injury. Benefit amounts $250, $500, $750 or $1,000 per day Issue age 18 to 64 Benefits payable for a maximum 30 days during any period confinement Benefit paid will not reduce lump-sum benefit available for any insured person subject to additional health questions at time application and height and weight guidelines Available only on lifetime coverage When an insured reaches age 65, ICU daily room indemnity benefit in force at time will reduce by 50 percent if insured was under age 60 when rider was issued. For an insured who was age 60 or older when rider was issued, 50 percent reduction ICU daily room indemnity benefit amount will occur on first policy renewal date on or after five-year anniversary rider date Cash Value Provides a percentage all premiums paid for policy and all riders, minus amount any benefits paid in claims for all insured persons. Issue age* 18 to 60 Benefits are payable when this rider ends providing it has been in force for more than five years. Benefits will be paid on earliest : The date insured requests removal rider; The date policy lapses because insured did not pay premium before end grace period; or The date policy ends for any or reason The percentage payable is based on number full years this rider was in force. The percentage amount* ranges from three percent in sixth year to 100 percent in 25th year *May vary by state Cash Value Percentages** 1-5 years 0% 12 years 27% 19 years 62% 6 years 3% 13 years 32% 20 years 68% 7 years 7% 14 years 36% 21 years 74% 8 years 11% 15 years 41% 22 years 80% 9 years 15% 16 years 46% 23 years 86% 10 years 19% 17 years 51% 24 years 93% 11 years 23% 18 years 56% 25 years and over 100% **Cash value issue ages and percentages may differ by state.

8 Table Coverage Options Individual Individual plus child(ren) Covers one adult and all dependent children (all children must be listed on policy in order to be covered. Newborn and newly adopted children will be automatically insured) Family Covers primary insured, partner and all dependent children (all children must be listed on policy in order to be covered. Newborn and newly adopted children will be automatically insured) Definitions: Partner One person who is: The spouse to whom applicant is legally married; or A registered domestic partner or civil union partner applicant; or An adult person who: Shares a serious and committed personal relationship with applicant that is intended to be lifelong; and Has shared a common permanent residence with applicant on a continuous basis for most recent three years; and Is not married to, a domestic partner or civil union partner, or in a committed personal relationship with anyone else; and Is not related to applicant in any way that would bar marriage in state where applicant and partner reside Dependent Child The applicant s or partner s unmarried, natural born child, adopted child or stepchild who is under age 26. Premium Structure Unisex Benefit Amount $10,000 to $50,000 Child(ren) coverage will equal base plan face amount but cannot exceed total base benefit $50,000 for any one covered condition Issue Age Issue age will be determined based on age applicant on date application is signed Premium will be based on age oldest insured Policy Lifetime Coverage Term Coverage Lump Sum Cancer 18 to to 54 Lump Sum Heart Attack & Stroke 18 to to 54 Rider Lifetime Coverage Term Coverage Cancer Benefit Rider 18 to to 54 Heart Attack & Stroke Benefit Rider 18 to to 54 Intensive Care Unit Benefit Rider 18 to 64 N/A Cash Value Benefit Rider 18 to 60* N/A *Cash value issue ages may vary by state. 5

9 Table Program Express Simple yes/no knock-out questions for face amounts $50,000 and below Accumulative lump-sum face amounts above $50,000 across all lump-sum or critical illness policies/ riders in force with Mutual Omaha have additional underwriting requirements Additional requirements (if required): MIB inquiry Pharmaceutical Telephone interview APS (attending physician statement) Labs Outcomes Issue Standard Decline No coverage available Any person who answers Yes to a health question will be excluded from coverage Guaranteed Renewability Lifetime Term 10, 15, 20 or 30 years All term policies will be issued with a Lifetime Extension Option rider (refer to Conversion from Term Coverage section for details) Premium Savings Clients who select Bank Service Plan (BSP) will receive a one dollar discount per premium payment Citizenship/Residency Applicants must be United States citizens permanently residing within United States or its territories Foreign Nationals who have a Permanent Resident Visa and have lived continuously in United States or its territories for at least three years also will be eligible for coverage Non-resident foreign nationals or those persons anticipating residence in a foreign country, even temporarily, are ineligible for lump-sum insurance Foreign Travel Applicants who travel to foreign countries frequently, for more than 90 days annually, and/or those who travel to areas with political unrest, poor economic conditions, lack modern living standards or modern medical facilities, are ineligible for lump-sum coverage Applicants who are working outside United States also are ineligible for lump-sum coverage Combination A person can own more than one Mutual Omaha lump-sum policy as long as coverage limits for any one covered condition are not exceeded requirements will be based on total dollar amount coverage requested for any one covered condition(s) Dependent children can be covered under multiple lump-sum policies as long as a lump-sum limit $50,000 for one covered condition is not exceeded Rider Combination A person may be covered under only one Intensive Care Unit Benefit Rider even if insured under multiple policies A person may be covered under more than one Cash Value Benefit Riders when insured under multiple policies 6

10 Table Uninsurable Conditions* Lump Sum Cancer The medical conditions listed below are not insurable with lump sum cancer plans: Applicants who have been diagnosed with or treated for Human Immunodeficiency Virus (HIV), Acquired Immune Deficiency Syndrome (AIDS), or Aids Related Complex (ARC) or any AIDS related condition Applicants who have been advised by a medical pressional to undergo treatment, furr diagnostic evaluation or testing, or who recently had diagnostic tests performed where results are still pending or were inconclusive for any medical condition Applicants who are currently receiving treatment, ever had treatment or been advised to have treatment for internal cancer, lymphoma, leukemia, or melanoma Applicants who, within past five years, have had persistently abnormal PSA readings, an abnormal mammogram, pap smear, colonoscopy, or or cancer screening test where cancer has not been ruled out Lump Sum Heart Attack & Stroke The medical conditions listed below are not insurable with Heart Attack & Stroke plans: Applicants who have been diagnosed with or treated for Human Immunodeficiency Virus (HIV), Acquired Immune Deficiency Syndrome (AIDS), or Aids Related Complex (ARC) or any AIDS related condition Applicants who have been advised by a medical pressional to undergo treatment, furr diagnostic evaluation or testing, or who recently had diagnostic tests performed where results are still pending or were inconclusive for any medical condition Applicants who have ever been diagnosed with, treated for, or advised to have treatment for any disease, disorder, or abnormality heart or circulatory system Applicants who have been diagnosed with, treated for, or advised to have treatment for carotid artery disease, peripheral artery disease, cerebrovascular disease, stroke, or TIA (transient ischemic attack) Applicants who, within past six months, have had two or more blood pressure readings 140/90 or above Applicants who have ever been diagnosed with diabetes Applicants who fall outside height and weight guidelines specified in Build Chart on page 10 * Uninsurable medical conditions may not be same on all policies or approved in all states. Refer to your state specific application. 7

11 Table Build Chart Heart Attack & Stroke Use this Build Chart for heart attack & stroke policy and rider. Finding applicant s height in left-handed column and n looking across row to find applicant s weight. The column heading above ir weight will determine appropriate risk class. Height Feet and Inches Decline Below Decline Over 4'8" '9" '10" '11" '0" '1" '2" '3" '4" '5" '6" '7" '8" '9" '10" '11" '0" '1" '2" '3" '4" '5" '6" '7" '8" '9" '10" '11" NOTE: The proposed primary insured and his or her partner, if applicable, must fall within height and weight guidelines when applying for heart attack & stroke benefits and intensive care unit rider. 8

12 Table The application packet contains application plus all forms required in applicant s state residence. Follow se guidelines when submitting an application. Use correct application Be sure to use application for client s state residence. Nonresident state applications will not be accepted. You will be required to submit correct state application before a policy can be issued You must have appropriate state license If application is taken in person, you must be licensed in state where application is signed. For mailed applications, you must be licensed to sell in state where client is at time solicitation Only applicant may sign When lump-sum insurance sales are made, only applicant for insurance may complete and sign application White out is not allowed If a question is answered in error, draw a single line through error and have correction initialed by applicant Don t use N/A N/A is not an acceptable answer. Instead, use No, None, or Yes when answering a question on application Check date s must be received by Mutual Omaha within 30 days application date. s that are more than 30 days old will require a new, complete and currently dated application. Premium will be based on applicant s age as new application signing date Completion s must be completed in ink. Typewritten applications bearing applicant s handwritten signature will be accepted Any corrections or alterations to application must be made in presence, or initiated by applicant, not agent. Changes made with corrective tape or fluids will not be accepted No application will be accepted that has been altered or corrected with regard to signature proposed insured, date signed, or licensed agent s signature Backdating an application will not be accepted Assisting Non-English Speaking Applicants If you and applicant are not fluent in same language, an interpreter must be present to translate all questions and responses. It is applicant s responsibility to have an interpreter available to meet with you when application is completed. The applicant may choose an interpreter, but interpreter cannot be a family member, beneficiary or someone who would benefit from issuance a policy. You may serve as an interpreter if you and applicant are fluent in same language In addition to questions on application and applicant s responses, interpreter is required to translate all comments you make as well as information contained in marketing materials and forms With assistance an interpreter, you should ask applicant to sign application and or Witness Certification form (MLU25947) Be sure to include a note with application that a translator will be needed for health interview and indicate what language Checking Case Status and underwriting status is available on Sales Pressional Access (SPA) our secure agent website. Log in using your seven-digit production number Select Reports tab Then select link labeled Med Supp, LTC, DI and Or Health s to view your case status report 9

13 Table Submission Brokerage Mutual Omaha Records/Mailing Center 9330 State Hwy. 133 Blair, NE Fax: (402) Agency Submit through your Division Office Eligibility for Payroll Deductions This program is voluntary participation and available to all eligible full-time employees working 30+ hours per week. The underwriting program allows employee to customize coverage using three associated lump-sum products and optional riders. Three Eligible Employees No pre-approval required for group sizes eligible employees Individual Apply Business Submission Payroll Deduction Mutual Omaha provides a lump-sum insurance application that agents will find easy to use. All applications and required forms can be found on our Sales Pressional Access (SPA) website. Step 1: Create a Quote Complete a case quote using Mutual Omaha s Rate Book. Step 2: Submit applications and appropriate forms Submit one signed copy Fully Underwritten Employer Acknowledgement form with initial Lump Sum applications Complete Payroll Deduction form Submit your applications and accompanying forms using your normal channel Mail to: Records/Mailing Center 9330 State Hwy. 133 Blair, NE Fax: Administrative Completion s must be completed based upon applicant s resident state unless orwise stipulated in Offer Letter The agent must be licensed in signing state s must be received in our home fice within 30 days Billing Billing Options The agent/marketer/division fice and Multi-Life Coordinator will work toger to set up a billing plan to meet needs group. Payroll Deduction Available for all eligible employees. A minimum three participants and a completed Payroll Deduction form are required to set up a payroll deduction case. All employees using payroll deduction must elect same premium mode. The following premium modes are available for payroll deduction: 10

14 PRD Modes Modal Factors 9-Pay Pay Pay Pay Pay Pay Pay Pay Pay Pay Pay Pay Table Premium Collection Premium should not be collected with applications. This applies to all direct bill and payroll deduction cases. As no premium is collected with application, conditional coverage is not available for Lump Sum cases. 11

15 Table Time Service Our goal is to make underwriting decisions and issue applications in good order within two business days receipt application in home fice. Incomplete s If we are unable to complete our underwriting requirements within 60 days application date, we must close file as incomplete and check will be destroyed, if applicable A letter explanation is sent to agent and applicant to inform m that insurance is not in force as a result an incomplete application Appealing an Decision s that are declined or issued or than applied for are eligible for reconsideration through an appeal process To ensure privacy, specific reason for a policy being declined or issued or than applied for is shared only with applicant After reviewing letter with applicant please review information in this guide for our handling applicant s condition(s) If applicant disagrees with specific reason given in letter, he or she has right to submit additional information. Here s how appeal process works: A notice appeal must be submitted in writing by applicant and/or his or her physician within 60 days receipt letter (some states vary slightly). Informal (verbal) appeals will be considered at request Managers, District Sales Managers and Brokerage Managers A decision letter will be sent to applicant within 60 days receipt appeal information The 30-day period for review policy and billing notice premium due are independent appeal process The application date will determine wher original application can be used along with a Statement Good Health or if a new application will be required Declined s When an application is denied, a letter will be sent to applicant and check will be destroyed, if applicable. Replacements Replacement present insurance must conform to replacement regulations for applicant s state residence. You should advise proposed insured to continue premium payments on any present insurance until underwriting is completed and a policy is issued Make sure proper forms are fully completed, paying special attention to replacement questions, agent certification, existing policy number and issuing company Replacement forms can be obtained from Sales Pressional Access (SPA) Downgrades A downgrade reduces benefits. Downgrades can be requested by policyholder in a letter containing his or her signature and date. The following downgrades are allowed: Decreasing lump-sum benefit amount Removing a family member Removing coverage or riders 12

16 Conversion from Term Coverage Mutual Omaha allows insured to convert a term benefit period to lifetime benefit period without underwriting after third year and through 10th year policy is in force at current age. The term coverage maximum issue age is 54 Premium Premiums At least one month s premium must be submitted or authorized with application. If application is faxed, Bank Service Plan (BSP) must be utilized with draft initial premium option If no cash is submitted with application, such as Drafting Initial Premium, effective date policy will be later date policy is issued or date Post-Issue (PIR) documents are received. All post issue requirements (including premium) must be received in home fice within 30 days, from date issue, to avoid cancellation effective issues Mutual Omaha does not accept individually billed monthly business Bank Service Plan (BSP) Can be used to pay premiums on new and existing policies. Have applicant complete authorization in application Send a voided check or provide banking information (routing & account information) on BSP authorization with application For in force policies, send form listing policies already in force and a voided check. If your client has more than one policy, we will establish a convenient combined payment plan for all policies to keep m in force with one monthly authorized payment We will establish contact with bank. The withdrawal will n appear on client s bank statement Table Modes Applied to Monthly* Rates Annual 12 Semiannual 6 Quarterly 3 Monthly 1 *Subtract $1 if paying with BSP Example: monthly modal premium x 12 months = annual premium Policy Issue and Delivery Delivering Policy It s important to deliver policy in person to build relationships with your clients and ensure y receive ir policies in a prompt and reliable manner. 13

17 Table Licensing and Appointments Non-Pre-Appointment States (All states except PA) If you are properly licensed in your state, you may solicit business prior to becoming appointed with Mutual Omaha s must be submitted along with contracting paperwork. Each state has different rules on number days to submit an appointment to state Department Insurance from date application is received Policies cannot be issued until effective date your appointment Pre-Appointment States (PA) You must be properly licensed and appointed with Mutual Omaha BEFORE soliciting business If an application is dated prior to your appointment effective date, it will be rejected and a letter will be mailed to applicant Background Checks All new agents are subject to a background check, which includes credit history, insurance department actions and federal and county criminal records. Be sure to disclose all information and answer each question on information sheet truthfully. If answering Yes to any questions, an explanation (signed and dated by you) and any supporting documentation must accompany contracting paperwork Background checks are conducted by an outside entity and typically take one to three business days. If an issue is found, you will be contacted in writing to resolve it, if possible No information regarding finding background check can be discussed with your MGA If Mutual Omaha declines to appoint you, both you and your MGA, if applicable, will be notified in writing Errors and Omissions Insurance Errors and Omissions insurance in amount $1,000,000 per claim is required for Mutual Omaha Insurance Company products. 14

18 Table Submission Records/Mailing Center 9330 State Hwy. 133 Blair, NE Fax: Policy Delivery & Pending Fax: Mutual Omaha Licensing Phone: Hours: 8 a.m. to 4:30 p.m. Central Time Monday Friday Fax: contractsandappointments@mutualomaha.com Sales Support Agency: Brokerage: Hours: 7:30 a.m. to 5:30 p.m. Central Time Monday Friday sales.support@mutualomaha.com Lump Sum Service Office Claims Phone: Hours: 7 a.m. to 5 p.m. Central Time Monday Friday Phone: Hours: 8 a.m. to 4:30 p.m. Central Time Monday Friday Multi-Life Coordinator Phone: Fax: Hours: 8 a.m. to 4:30 p.m. Central Time Monday Friday multilife@mutualomaha.com 15

19 Table Revisions to this Guide The following updates effective October 01, Page 10 added PRD information Page 15 added contact information to multi-life underwriting coordinator Programs Financial Occupational Sales and Marketing 16

20 Insurance is underwritten by: Mutual Omaha Insurance Company Mutual Omaha Plaza Omaha, NE mutualomaha.com