TERM CONVERSION OVERVIEW AND Q & A

Policies issued by American General Life Insurance Company (AGL). TERM CONVERSION OVERVIEW AND Q & A DEFINITION OF A TERM CONVERSION 1. What is a term conversion? a. A contractual right that allows the policy owner to convert a term policy to a permanent life insurance plan of the company s choosing during the term conversion period without evidence of insurability. 2. When does the conversion right expire? a. It is product specific and subject to limitations. Call our Producer Care Center to discuss. 800/247-8837 3. Does a conversion right expire at the end of the term duration? a. Not necessarily. A conversion is product specific and the conversion period is not necessarily the same length of time as the term period. Example, many 10 year terms are convertible only until the 8th year. 18 or 20 year terms may have the conversion period end at year 13, or, it may end at the anniversary prior to age 65, etc. Each one is different. 4. What needs to be sent to the home office to be considered on time? a. Signed/dated Term Conversion Request Form (AGLC101672-PL) or State-specific In-Force Change Form (see Forms Depot for form number); and b. Signed/dated illustration that was generated on or before the expiration date; and c. Both in our office on or before the conversion expiration date. NO EXCEPTIONS. AVAILABLE RESOURCES https://estationsecure.americangeneral.com Search Conversion Products Tab for state approvals In-Force Tab for information on the term policy Tool Box for needed Forms. 7. Who do I contact for help with a term conversion? a. Producer Call Center: 1-800-247-8837 b. For Applications: conversionapp@aig.com c. For Outstanding Requirements: conversionreq@aig.com d. For case status and updates: term.conversion.support@aig.com e. For help with conversions to AG Platinum Choice VUL: 1-713-831-6949 5. Is there a grace period for submitting conversion paper work beyond the conversion expiry date or the 8-10 policy anniversary date (See Question 10 for details)? a. No. Paper work must be received in the Home Office prior to or on the expiration date. 6. Any recommendations on getting the conversion submitted? a. Run the illustration on or prior to the conversion expiration date. b. Get the illustration and application signed and submitted on or before the conversion expiration date. c. This gets your foot in the door. You may make changes, but have to at least get the first 2 items to us on or before the term conversion expiration date. FOR FINANCIAL PROFESSIONAL USE ONLY-NOT FOR PUBLIC DISTRIBUTION PAGE 1 OF 13

GETTING STARTED 8. Where do I find a listing of products available? a. estation/products Tab. Link for State Approvals. This is updated weekly. 9. Is there a Tip Sheet I can use? If you know the following before you start a term conversion, chances are your conversion will be considered In Good Order and completed quickly. 1. Conversion Expiration Date 2. Minimum Face requirement if a partial is being completed 3. UW Class. Any table ratings? 4. Date of Birth 5. Paid to Date of Term Plan 6. Current Billing Mode and Frequency 7. If Bank Draft bank name, account number, routing number and draft day 8. Issue Date of term plan. Is it less than or more than 8 years old? 9. Any Term Riders 10. Owner of the term PRODUCTS 10. Can I use any product for a term conversion? Yes. The full permanent portfolio is available with a couple exceptions. See questions 11and12 below. Term Plan Term Policy Year Permanent Products Available 10 Year Term Years 1 8 Full Permanent Portfolio (See Questions 11 12 for available products) Years 9 10 AG Extend IUL and American Elite WL 2 15 30 Year Term Years 1 10 Full Permanent Portfolio (See Questions 11 12 for available products) Years 11+ AG Extend IUL and American Elite WL 2 11. What products can a term product NOT be converted to? a. Survivorship b. ROP Term or other term products, unless contractually allowed by the term product. 12. Are there any limitations on the products available? a. Yes. 1. Value+ IUL i. Chronic Illness Rider is not available REQUIRED PAPER WORK 13. What paper work is required? a. Application 1. Term Conversion Request Form (AGLC101672-PL REV0715); No Underwriting Required 2. State-Specific In-Force Change Application (ICC15-108251); Used if it has to go to Underwriting b. Illustration 1. Signed/Dated by both agent and policy owner and generated on or before the conversion expiration date. c. Other Possible Forms 1. Supplemental Application (ICC15-108093) i Required if converting to an Index product 2. Change Request to Bank Draft Authorization (AGLC108866 REV0116) 3. Check for initial premium 4. Disclosure of Accelerated Death Benefits (Also known as Terminal Illness Rider) (AGLC102084 REV0415) 5. Change of Ownership Form (AGLC0013 REV0715) 6. Name and Address Change Form (AGLC0222 REV0715) 7. Over age 67 forms i. Agent Certification Form (AGLC101994 REV0415) ii. Premium Finance Disclosure Form (AGLC102053 REV0415) 8. If owner is a business/corporation (Business Certification - AGLC108735) FOR FINANCIAL PROFESSIONAL USE ONLY-NOT FOR PUBLIC DISTRIBUTION PAGE 2 OF 13

9. If owner is a trust (Trust Certification - AGLC2239COT) 10. If policy is not on bank draft and payor is different than the insured and owner (Payor Authorization Form - AGLC108492-2015) HOW TO FILL OUT THE APPLICATION 14. How do I fill out the Term Conversion Request Form (AGLC101672-PL REV0715) a. Section A. Current Policy Information 1. Existing Policy Number. This is the term policy number 2. Company Code. Leave blank 3. Insured Name. Name as listed on our computer system for the insured. If not exact, a Change of Name form will be required. 4. Owner Name. This is the name of the owner(s) of the term plan. b. Section B. Conversion Request 1. Base Coverage Amount. Face amount of the new plan. 2. Conversion Effective Date. See below, Conversion Effective Date 3. New Plan Name. Product Name of the new plan. See estation/products Tab. Link for State Approvals. This is updated weekly. 4. Amount. Leave blank 5. Automatic Premium Loan only available on the American Elite Whole Life product 6. Death Benefit Option (UL plans only). Must match the illustration as either level or increasing 7. Complete information for Term Policy Conversion Box or Term Rider Conversion Box 8. Benefits and Riders. Not all are available. c. Section C. Primary Insured Information for New Policy (All information required) d. Section D. Designation of Owner for New Policy 1. Change of Ownership. Will the same owner of the term policy be the owner of the new conversion policy? Either yes or No 2. Either D1 or D2. Owner information of new policy. i. D2. If Trust is the owner, also need Certification of Trust form (AGLC2239COT). e. Section E. Payor Information (Only complete if policy not on bank draft and payor is different than the insured and owner) 1. May need Premium Payor Authorization form(aglc108492-2015). f. Section F. Beneficiary Information 1. Has to total 100%. 2. Has to be completed since this is the application for the new conversion plan. 3. Must be whole amounts, ex; 50%, 50%, or 33%, 33%, 34% = 100% g. Section G. Rider Insured 1. Information for child rider. 2. Beneficiary information for child rider. h. Section H. Billing 1. Have to complete both Frequency and Method. 2. We can use existing bank draft information, provided still on draft. 3. Change Request to Bank Draft Authorization (AGLC108866 REV0116) i. We cannot draft for partial premiums. If you are using unearned premium, you will need to send in the balance due, or have us draft the premium and send a refund check to the policy owner for the unearned premium. Much easier! ii. Draft Day. If a UL plan, have to have the draft on or prior to the effective day. Since the cost of insurance comes out monthly on the effective day, the draft has to be the same day or prior. 4. Premium $. Amount listed on the illustration. 5. Draft Initial Premium: Yes, unless a check is being included for the amount due, then it is No. 6. If new plan Universal Life: complete if applicable. 7. Payment Enclosed: complete if applicable. i. Section I. Authorization and Signatures 1. Signed at is the state of issue. Must match state on illustration. 2. Owner and agent must sign/date. FOR FINANCIAL PROFESSIONAL USE ONLY-NOT FOR PUBLIC DISTRIBUTION PAGE 3 OF 13

j. Section J. Agent Information 1. Need Agency and Agent number. 2. Legible penmanship. 3. If the sale is to change and the application is already submitted, we will need a corrected application along with a written statement and signature from original agent stating it is okay to make the change. k. Section K. Trust Affidavit (Needed if owner is or will be a trust.) CONVERSION EFFECTIVE DATE NOTE: We cannot issue or conditionally issue a policy prior to the Conversion Effective Date. 15. How do I determine the Conversion Effective Date? a. Has to be the same day of the month as the old policy was issued. Example. Term was issued on 7/13. Effective date of new policy has to be on the 13 th. b. Effective date is usually the paid to date of the term plan. c. No gap in coverage. Exception. If new product is an index UL, we have to follow this chart. If term was issued between these dates, then the new policy effective date is 1st 8th... 5th 9th 16th... 12th 17th 24th... 20th 25th 28th... 28th Examples. Term was issued on the 2 nd and paid to the 2 nd. Effective date would be the 5 th Conversion expires on the 2 nd. Effective date would be the 5 th. 16. What if term is paid to September, but effective date is to be July? a. We would put the new policy in-force, then refund the unearned premium. 17. What if the term is paid to July, but effective date is to be September? a. 2 months premium has to be paid on the term policy before conversion can begin. SAVING AGE 18. Can you Save Age? a. Yes. 6 months and 2 days prior to birth date. Example A Birth Date is 7/13. 6 months & 2 days prior is 1/11. Term was issued 6/1. If converting to a NON Index UL. Have to stay on same day as the term, therefore, effective day would be 1/1. If converting to an IUL Effective day would be 1/5. Example B Birth Date is 7/13. 6 months & 2 days prior is 1/11. Term was issued 6/17. If converting to a NON Index UL. Have to stay on same day as the term, therefore, effective day would be 12/17. If we used 1/17, he would be closer to his new birth date rather than saving age. If converting to an IUL. Index date used if the term was issued between 17th 24th is the 20th, so the new plan would have to be issued on 12/20. If we used 1/20 the insured is closer to the new birth date and would not save age. IN-FORCE CHANGE APPLICATION 19. What State-Specific In-Force Change Form is needed? a. ICC15-108251 (generic) b. State Specific (Refer to estation or Forms Depot) National CA 2015 CT 2015 DC 2015 DE 2015 FL 2015 Compact Version FOR FINANCIAL PROFESSIONAL USE ONLY-NOT FOR PUBLIC DISTRIBUTION PAGE 4 OF 13

20. When do you use an In-Force Change Form? (Must complete all medical questions) a. Increasing face amount b. Addition of rider or benefit c. Request to change from tobacco to not tobacco. d. Converting Child Rider 21. Who signs the In-Force Change Form? a. Insured, Owner and Agent 22. How do I request non tobacco rates? a. Use the State-Specific In-Force Change Form. b. Fill out the medical and background information. c. NOTE: Insured may no longer use tobacco, but if they now have diabetes, cancer, major health issues, etc. UW will not give nonsmoker rates. UW class would stay the same as the term policy was issued. RIDER CONVERSIONS Child 23. When can a child rider be converted? a. Age 25 unless policy was written by Franklin Life (FLIC), then it is age 22. 24. How much coverage can a child rider conversion get? a. If converted at age 25 (FLIC 22), can have up to 5 times the face amount of the term rider. b. If prior to age 25 (FLIC 22), can only have the face amount of the term rider. 25. What form do I use? a. If the child is a non tobacco user, use the State-Specific In-Force Change Form (ICC15-108251) 1. Answer tobacco question. 2. Do not need to answer medical or background questions. 3. Signatures of both owner and insured are required. 26. What if child is in good health? a. You might consider submitting a New Business application. It s possible to a larger face amount for a lower premium. 27. What effective date do I use for a child rider? a. Policy anniversary closest to age 25 (FLIC 22); or b. Actual month of birth date for age 25 (FLIC 22) Example Anniversary is 3/3. Birth date is 10/17. Effective date could be either 3/3/2014 or 10/3/2013. If index, then dates would be 3/5/14 or 10/5/13. 28. What do I do if the child wants to be the owner? a. See Section D of Term Conversion Request Form (AGLC101672-PL REV0715) b. Both old and new owner signs the Term Conversion Request Form. c. New owner signs the illustration/quote. Spouse 29. Who will be the owner? a. The owner of the term will be the new policy owner unless a Change of Ownership form is completed. 30. Is spouse signature needed? a. If the Term Conversion Request Form (AGLC101672-PL) is used and Spouse is to be the owner YES. b. If State-Specific In-Force Change Form (AGLC108251) is used YES. 31. What is the UW class? a. Same as what was previously approved on the term policy. FOR FINANCIAL PROFESSIONAL USE ONLY-NOT FOR PUBLIC DISTRIBUTION PAGE 5 OF 13

32. Can I get a better rate class for the spouse? a. You would use the State-Specific In-Force Change Form (ICC15-108251). b. Answer Tobacco question. c. Answer all medial questions. d. Signature of both owner and insured. e. Not a guarantee to get non tobacco rates. 33. What do I do if the spouse wants to be the owner? 3 step process 1. Owner of term signs the Term Conversion Request Form. 2. Both owner and new owner sign the Change of Ownership Form. 3. New owner signs the illustration/quote. DEATH CLAIM 34. How long is the rider convertible due to a death claim? a. We will not process any rider conversion until the death claim is processed. 35. Can I convert the rider after the death claim is processed? a. Once a claim is paid, you have 30 days from the date the Term Conversion team sends the paper work. The conversion expiration will be listed in the letter. 36. What is the effective date of a policy due to a death claim? a. Once the claim paid, the conversion will be effective as of the paid to date used by Claims. Due to no gap in coverage, back premium may be required. ILLUSTRATIONS/QUOTES. INTERNAL SALES 800-677-3311 37. Are illustrations or quotes required for a term conversion? a. Yes. The same illustration rules that apply to New Business apply to conversions. The complete and properly signed illustration/quote must be submitted. Illustrations are not needed if converting to a whole life. 38. Who signs the illustration? a. Agent and owner. 39. What if I don t want to have the client sign an illustration? a. Submit the unsigned illustration. b. Have to submit a signed Acknowledgment and Certification form in lieu of a signed illustration. 1. Maine, Pennsylvania, South Dakota and Washington have their own State-Specific forms for the Acknowledgment and Certification. 40. Do Whole Life policies require an illustration? a. No. 41. When do I need to submit a signed/dated illustration? a. On all Universal Life (UL) products except GUL products for which quotations are generated. 42. Why would I need to send a corrected illustration? a. The application and illustration must match on the following 1. Age or Date of Birth. If saving age, be sure to tell us in a cover letter 2. Product 3. Face Amount 4. Gender 5. State application signature state needs to be the same as the state used to generate the illustration. 6. Mode if application says monthly, illustration has to be run monthly 7. Death Benefit Options 8. Rate Class/Rating has to be run for the same class as the original term was approved. FOR FINANCIAL PROFESSIONAL USE ONLY-NOT FOR PUBLIC DISTRIBUTION PAGE 6 OF 13

43. Do I have to illustrate a Table B rating? a. Yes if new plan will be the American Elite Whole Life or the AG Extend IUL. b. No if the new plan has the expanded standard classes (Tobacco and Non Tobacco) which include up through Table 2 and through issue age 70. 1. Some plans now include up through Table 3 in the expanded standard classes. 44. If a new illustration is needed, can it be signed at delivery? a. Yes. As long as we have the policy owner s signature on an illustration in file, you can send corrected illustration to us so the policy can be conditionally issued, and you can get is signed on delivery. 45. Do I have to include inherent riders of Terminal Illness, Surrender Charge and Maturity Extension even if there is not charge for them? a. Yes. Also, some state(s) require the Terminal Illness Rider Disclosure. 46. How do I illustrate a dump in? a. As an external lump sum. 47. How do I illustrate an internal 1035 exchange? a. Guaranteed Cash Value is shown as internal 1035 dollar values. b. Dividends are shown as external 1035 dollar values. 48. How do I illustrate an external 1035? a. Show the amount of money expected from the other company as the External Lump Sum amount. 1035 EXCHANGE It is a 3 step process. a. Term Conversion requirements 1. Signed/dated application and a signed/dated illustration. 2. No replacement paper work is needed for the term conversion portion. b. 1035 Exchange requirements 1. Once the term conversion is ready to be issued, the case will be referred to the 1035 Team. 2. All 1035 rules apply such as replacement paper work, original Absolute Assignment Forms, etc. 3. The 1035 team will mail the original absolute assignment form and any additional paper work to the replacing company. 4. The 1035 team follows up to get the funds sent to us. 5. Once the 1035 funds arrive at American General Life, the 1035 portion is closed and the case goes back to the Term Conversion team. c. Term Conversion team can either issue or conditionally issue the new plan. 49. What s the difference between a 1035 being issued or conditionally issued? a. Issued. If the amount of money illustrated is within $500 of what is actually received, we can accept, apply the funds, put the new permanent plan in-force, mail the policy and pay commission. b. Conditionally Issued. If amount of money illustrated is less than or greater than the $500 difference, then a new, corrected illustration will be needed. Policy will be printed and mailed, but not put in-force. 1. Once the signed/dated illustration is returned, then we apply the funds, put the new permanent plan in-force and pay commission. CONVERSION CREDIT 50. What policies have Conversion Credit? a. Ultra C. The C means conversion credit. 51. What is the conversion credit amount? a. It is the lesser of the annual premium or the amount of money paid in the last 12 months. 52. How is it determined? a. It is proportional to the amount being converted. If you are converting 100% of the face, then 100% of the lesser amount of the annual premium or amount of money paid in the last 12 months is credited. If it is a 50% conversion, then only 50% of the premium is credited. FOR FINANCIAL PROFESSIONAL USE ONLY-NOT FOR PUBLIC DISTRIBUTION PAGE 7 OF 13

53. Do I get commission on the conversion credit amount? a. No. It is non commissionable. b. Reduces your target premium. 54. Can I just get the conversion credit amount refunded? a. No. It is nonrefundable. b. It will be applied to reduce the premium on a whole life and any balance remaining will be refunded. c. It will be applied as cash value on UL/IUL plans 55. Do I have to illustrate conversion credit? a. No. OTHER PAPERWORK Change of Ownership 56. What are the steps to change ownership? a. Current Owner signs the Term Conversion Request Form. b. Current Owner and New Owner sign the Change of Ownership Form. c. New Owner signs the illustration/quote. 57. Can I change ownership as I do a conversion? a. Yes. 1. To change the ownership on ONLY the new policy i. Check change of ownership (Section D for Term Conversion Form/Section E for In-Force Change Form) ii. New owner and existing owner sign the form 2. To change ownership on BOTH the new and current policy i. The Change of Ownership form must be dated the same day or at least (1) day PRIOR to the Term Conversion Request Form. ii. New owner will sign the Term Conversion Request Form and illustration. 58. What policy number do I put on the Change of Ownership form? a. Write pending if changing on the new policy only or write the term policy number if changing ownership on the term. ELECTRONIC FUNDS AUTHORIZATION (EFT FORM) CHANGE REQUEST TO BANK DRAFT AUTHORIZATION (AGLC108866 REV0116) 59. Do I need to submit a new form if the term is already on bank draft? a. No. If the banking information is the same, we can use the current bank draft arrangement. 60. What do I list as the new premium since the conversion is not completed? a. Either write pending as the policy owner/amount. b. Write the amount you have illustrated. c. NOTE: The EFT form and amount being drafted have to match. 61. Does it matter what day is used as the draft day? a. Yes. The draft day should match the effective day since the cost of insurance (COI) is taken out monthly on the effective day. If the premium is not received the same day, then the policy is in grace. We won t allow a policy to be in grace due to the draft day. 62. What if the policy owner insists on having the draft day to be after the effective day? a. The policy owner will need to pay 2 premiums initially. One will be applied into the cash value so when the COI is taken later in the month, money will be there to cover it. b. Most people do not want to pay 2 premiums up front, so decide to make the draft day the same as the effective day. STOLI FORMS 63. When do I need these? a. If the insured is age 67 or older and the face is $25,000 or more. 64. What are the STOLI forms? a. Agent Certification Form AGLC101994 REV0415 b. Premium Finance Disclosure Form AGLC102053 REV0415 FOR FINANCIAL PROFESSIONAL USE ONLY-NOT FOR PUBLIC DISTRIBUTION PAGE 8 OF 13

TIR DISCLOSURE 65. What form number do I use for TIR? a. Disclosure of Accelerated Death Benefits (Also known as Terminal Illness Rider) (AGLC102084 REV0415) 66. When do I have to submit a TIR Disclosure? a. Prior to the policy being issued. 67. Who completes the TIR Disclosure? a. Both the agent and owner sign. 68. What states require a TIR Disclosure? a. AL, AR, CT, IN, KS, LA, MA, MI, MN, MS, NC, OH, OK, OR, VA, WA, DC 69. Do I have to illustrate TIR? a. Yes. If you want it on the new plan, it has to be illustrated even though it is free. SUBMISSION 70. Do I need a cover sheet? a. Yes. Include the following: 1. Key Contact Name 2. Key Contact Email Address 3. Key Contract Phone Number 71. How do I submit my case? a. Fax. 800-382-4662 b. Mail to Nashville, TN 72. What is the Term Conversion Fax Number? a. 800-382-4662 b. NOTE: if faxing more than one request package at the same time, be sure to indicate the separation of pages with a blank page. 73. Do I have to attach a cover sheet each time I submit something? a. No. Once you have the new pending policy number, you can write this on the 1 st page of your submission. 74. What if I have a check, but am faxing my case? a. Fax a copy of the check with your case. b. Wait 24-48 hours and you will receive an email confirmation with the new pending policy number. c. Write the new pending policy number on the check and mail to Nashville, TN 75. Where is the Term Conversion paper work mailed? Regular Mail Overnight Mail American General American General PO Box 305355 2 American General Center Nashville, TN 37230-5355 Nashville, TN 37250-0002 76. Do I have to mail any original documents? a. Yes. 1. Check(s) 2. Absolute Assignment form if doing a 1035 Exchange COMMON QUESTIONS AGL & AGLA 77. Can I convert an AGL (American General Life) to AGLA (American General Life and Accident) and vice versa? a. You can convert an AGL to an AGLA, but not an AGLA to an AGL. b. An AGLA can only be converted to AGL as follows: 1. If AGLA Term has QoL ABRs: Not allowed. 2. If AGLA Term does not have QoL ABRs: AG Extend IUL only. FOR FINANCIAL PROFESSIONAL USE ONLY-NOT FOR PUBLIC DISTRIBUTION PAGE 9 OF 13

AML 78. Do I have to have Anti-Money Laundering (AML) current? a. Yes. The website AML.LIMRA.COM is automatically updated and feeds to American General overnight. b. If you have an AML Certificate, you can email it to our Compliance Department for review AG.Compliance@aglife.com Backdating 79. Can a conversion policy be back dated? a. To save age, but not to save conversion eligibility. A new policy cannot be backdated to save conversion eligibility if the conversion period or 8/10 year anniversary has expired. b. Policy must be paid current c. Conversion privilege with respect to age and duration must be in effect. d. NOTE: New policies issued as a result of the policy owner exercising the GIO cannot be backdated. Billing/Premium 80. Can you pay with a credit card? a. No. Only check, bank draft or allotment. 81. Is a completed EFT form required when a new conversion policy will be on bank draft? a. If the existing policy is on bank draft and the bank information is not changing, you can indicate in writing that we are to use the existing bank draft information and no form is then required. Please note, the draft date needs to be the effective date. If the bank arrangement is new or the bank information is different, then a new completed EFT form and void check are required. The premium amount on the EFT form must match the premium amount illustrated. 82. Do the premiums on the existing term policy have to be paid current in order to convert? a. Yes. The policy must be paid current and cannot be in its grace period or lapsed. COLLATERAL ASSIGNMENT 83. If a term policy that has been collaterally assigned is converted how is the assignment handled? a. The collateral assignment is transferred to the new policy and the assignee s signature is required on the conversion application. If the assignment should not be transferred, then a release of assignment is required. CONDITIONALLY ISSUED 84. What is conditionally issued? a. Means the policy pages are printed and mailed along with a Requirements Letter which lists the items that need to be returned before the policy will be placed in-force and commissions paid. Examples: initial premium, signed amendment, signed illustration. CONVERSION ELIGIBILITY 85. How do I verify the conversion period and underwriting class for a policy? a. Contact the Producer Call Team at 800-247-8837. 86. Can a policy be converted if the policy is still within the conversion period, but the insured is past the maximum conversion age limit? a. In order to convert, the insured must be at or younger than the maximum conversion age and the policy conversion period cannot have expired. 87. Can a policy be converted if the insured s age has not exceeded the maximum conversion age, but the anniversary is beyond the conversion period? a. In order to convert, the insured must be at or younger than the maximum conversion age and the policy conversion period cannot have expired. DELIVERY RECEIPT 88. Do I need a delivery receipt? a. Three states require a delivery receipt to be signed and returned before the policy can be put in-force. Those states are Louisiana, South Dakota and West Virginia. FOR FINANCIAL PROFESSIONAL USE ONLY-NOT FOR PUBLIC DISTRIBUTION PAGE 10 OF 13

GIO (GUARANTEED INSURABILITY OPTION) 89. What form should be completed to request a Guaranteed Insurability Option (GIO) election? a. If no underwriting is required, submit a fully completed, signed Election of Guarantee Insurability Option form (AGLC101672-GIO REV0715). If underwriting is required, submit a fully completed signed state specific In-Force Change Application (ICC15-108251). 90. What products are available for Guaranteed Insurability Options? a. American Elite Whole Life is the only product available. INCREASING AN EXISTING UL/VUL 91. Can conversions be used to increase an existing UL/VUL policy? a. A term policy can be converted without UW by increasing coverage of an existing UL/VUL policy under the following conditions: 1. The existing UL/VUL policy must be on the level death benefit option. 2. The existing UL/VUL policy version must still be available for new business. 3. The amount of the increase must be equal to or less than the term policy being converted. ILLUSTRATIONS/QUOTES 92. How do I obtain an illustration for conversion? a. Use your regular New Business illustration software or contact your Marketing Support staff. Internal Sales is at 800-677-3311. ISSUE AGE 93. Do you use age nearest or actual age? a. Our policies are issued based on the age nearest birthday. 94. What age is used on an illustration? a. Attained age is used on illustrations/quotes based on age nearest birthday. 95. Do you use actual age? a. Yes. That is the age a person is today and used for determining compliance of Conversion Privilege. ISSUE STATE 96. What state is used? a. Where the app is signed is the state of issue. Agent must be licensed in that state in order to receive commissions. If signed overseas, the original issue state will be used. MAILING OF POLICY 97. Where are policies mailed? a. Our policies are mailed based on the agent code used on the sale. This address comes from the address listed on the Licensing/Contracting paper work. If a change needs to be made, it is up to the agent to contact L&C to update our records. 98. Do you ship UPS or regular mail? a. Policies are sent via UPS unless the address in the L&C system is a PO Box, then they are shipped regular mail. MINIMUM FACE REQUIREMENTS 99. What are the minimum face amounts for conversions of term policies to a new plan? a. The new policy must meet the new plan s minimum face amount. MULTIPLE POLICIES 100. Can you combine multiple term policies into 1 new whole life, UL or IUL? a. Yes. Term policies must meet all normal conversion eligibility guidelines. In order to combine must have the same insured, same owner, and same Underwriting class. May use either policy s monthaversary, as long as both policies are paid to the new effective date. FOR FINANCIAL PROFESSIONAL USE ONLY-NOT FOR PUBLIC DISTRIBUTION PAGE 11 OF 13

OWNERSHIP 101. Can ownership be transferred at time of conversion or election of GIO? a. Ownership can be changed at time of conversion or election of GIO subject to the following: To change ownership on the new policy only, in addition to the term conversion/election of GIO form, include the applicable ownership change form dated 1 day after the term conversion/gio request form. The owner exercising the conversion or GIO privilege is required to sign the term conversion/gio request form. The new owner should sign the illustration to change ownership on both the new and current policy, in addition to the term conversion/gio request form, the new owner is required to sign the term conversion/gio form and illustration. b. To change the ownership on BOTH the new and current policy (use #57-2 wording) i. The Change of Ownership form must be dated the same day or at least (1) day PRIOR to the Term Conversion Request Form. ii. New owner will sign the Term Conversion Request Form and illustration. 102. Who must sign the illustration for a conversion? a. Both the Owner and the Agent. PARTIAL CONVERSION 103. Can a partial conversion be processed if it reduces the face amount of the old policy below the minimum? a. The existing term policy must remain at or above the minimum plan death benefit required. RIDERS/BENEFITS 104. What benefits are automatically transferred from the old policy to the new policy without evidence of insurability? a. Waiver of Premium (WP) (if available on the product converting to) and Child Rider. (These must be listed on the new conversion form and illustrated) b. Any increase in death benefit and/or additions of riders will require completion of a state specific In-Force Change Application, evidence of insurability and Underwriting approval. ROP 105. Can the cash value of a Return of Premium (ROP) Term policy be distributed to the owner when converting to a permanent plan? a. Yes. The policy owner can take the ROP s value in cash or roll it into the new permanent plan. 106. Can you retain the balance of the face amount on a Return of Premium (ROP) Term policy if completing a partial conversion? a. No. Face decreases cannot be processed on ROP Term policies. You can process a partial conversion, but any remaining balance will be terminated. SIGNATURES 107. Whose signature is required for a conversion if the owner is different that the insured and the application requires Underwriting? a. Both the insured and owner signatures are required. 108. Whose signature is required for a conversion if the owner is different that the insured and no Underwriting is required? a. The owner s signature is required. TERMINAL ILLNESS HAS BEEN EXERCISED 109. If the TIR has been exercised, can it still be converted? a. No. When the TIR is used, a lien is placed on the policy. The only way to remove a lien is to surrender or process a death claim. TURN AROUND TIME 110. How long does it take to process a conversion? a. If a request is sent In Good Order, it can take a week or less. If not sent In Good Order, it won t be processed until all requirements are met. FOR FINANCIAL PROFESSIONAL USE ONLY-NOT FOR PUBLIC DISTRIBUTION PAGE 12 OF 13

WAITING PERIOD 111. Can I do a conversion with the same effective date as the term was issued? a. No. The term has to be in-force at least one month. 112. Is there a waiting period to convert a policy? a. No, unless the contract specifically states there is a waiting period. 113. What if the term policy is less than 18 months old? a. The conversion paper work and signed/dated illustration will be sent to upper management for review to ensure the conversion is in the policy owner s best interest. Once approved, upper management will return the conversion paper work and signed/dated illustration for the Term Conversion team to begin processing. If upper management determines the conversion is not in the best interest of the client, upper management and the RVP will notify the agent and any paper work needed. 114. What underwriting is required for a term conversion? a. No underwriting is required to convert a term policy to an available permanent policy in the same underwriting class. WAIVER OF PREMIUM 115. Can a policy be converted that is currently being paid by premium waiver? a. The policy cannot be converted unless the policy contract states that the policy can be converted while premiums are being waived by premium waiver. COMMISSIONS PLEASE NOTE: SPECIFIC COMMISSION QUESTIONS SHOULD BE DIRECTED TO YOUR LICENSING AND CONTRACTING REPRESENTATIVE. THE FOLLOWING ARE GENERAL GUIDELINES ONLY. 116. What is the impact of the Internal and Affiliate Replacement Commission Adjustment Guidelines on a conversion of a term policy that has been in-force less than 1 year? a. First Year Commissions (FYC) applies only to the increase in annual premium. 117. How is the contractual conversion credit, if applicable, applied to the new policy? a. Some older term products marketed in the past offer a conversion credit. When converting to a UL, the conversion credit, if any will be applied as non commissionable pour-in deposit to the policy. The target premium will be reduced by the amount of the conversion credit applied to the policy. Example: Target Premium: $10,000 Conversion Credit: - $4,000 (Non Commissionable Pour-In Deposit) Adjusted Target Premium: $6,000 (First Year Commissionable Premium) b. When converting to a whole life policy, the conversion credit, if any, will be applied to the modal premium of the new policy up to, but not in excess of the allowable conversion credit. Commissions will be adjusted on a pro-rata basis. 118. Are commissions paid on internal dump-in funds or internal 1035 exchange funds? a. No. These funds are non-commissionable. Additionally, these transactions require properly completed replacement forms. Policies issued by American General Life Insurance Company (AGL) except in New York, where issued by The United States Life Insurance Company in the City of New York (US Life). Issuing companies AGL and US Life are responsible for financial obligations of insurance products and are members of American International Group, Inc. (AIG). Guarantees are backed by the claims-paying ability of the issuing insurance company. Products may not be available in all states and product features may vary by state. FOR FINANCIAL PROFESSIONAL USE ONLY-NOT FOR PUBLIC DISTRIBUTION AGLC108539 REV1117 2017 AIG. All rights reserved. PAGE 13 OF 13