Producer ( Distributor ) Commission Schedule EFFECTIVE DATE: October 1, 2014 General Provisions This schedule is part of your Distributor Agreement with Medico Insurance Company and/or Medico Corp Life Insurance Company (each a Company ) and is incorporated by this reference. All provisions of the Distributor Agreement that do not conflict with the provisions of this schedule apply also to this schedule. Compensation on unpaid and/or unearned premium shall be reversed and charged back to Distributor s account. Commissions paid for replacement of another company s policies will be subject to applicable federal and state laws and regulations. Commissions paid on a Medicare Supplement policy replacing an existing Medico Insurance Company or Medico Corp Life Insurance Company Medicare Supplement policy will be paid at 50% of the normal commission rate for such policy. Distributor agrees to regulate compensation on any offered products or policies, including Medicare supplement insurance, paid to its downline agents in accordance with state and federal laws and regulations. Compensation includes first year and subsequent years commission and pecuniary remuneration of any kind relating to the sale or renewal of Medicare supplement policies, including, but not limited to, bonuses, gifts, prizes, awards, finder s fees and policy fees. Commissionable Premium No commission will be paid on that amount of premium related to benefits or guarantee issuance of coverage mandated by state or federal laws and regulations, unless specifically stated otherwise. Total Commission This schedule represents the total commissions payable to you and is inclusive of compensation to be paid to your downline. Any commission payable to your downline will be deducted from percentages listed in this schedule, so the total compensation under this schedule may be lower than is listed above. Modification Company reserves the right to modify, terminate or discontinue all products, terms, fees, and compensation on the schedule. In the event of any state or federal law, which materially alters the required loss ratio for the business written under the schedule, the Company reserves the right to reduce commissions. 1
Producer Commission Schedule for Medicare Supplement Products EFFECTIVE DATE: October 1, 2014 Medico Insurance Company agrees to pay commissions as follows: Arkansas 65-74 19% 1.5% 75-79 8% 1.5% 80+ 3% 1.5% Alabama, Idaho, Iowa, Nebraska, Nevada, New Mexico, South Carolina and Wyoming Oregon All Ages 16% 1.5% Louisiana, Mississippi, South Dakota, Tennessee and Wisconsin 0-64 0% 0% Illinois, Montana, Oklahoma and Virginia 0-64 7% 1% Indiana 65+ 17% 0% Missouri Issue Ages Year 1 Years 2-6 Years 7-10 All Ages 18% 12% 1.5% Missouri Replacement (Internal or External) Issue Ages Year 1 Years 2-6 Years 7-10 All Ages 12% 12% 1.5% Texas Issue Ages: Years 1-7 Years 8-10 Reduced commissions on under age 65 business will be paid at $24.00 for the first year and $12.00 for each policy year after and is only available on Plan A. 2
Producer Commission Schedule for Medicare Supplement Products, cont. Utah 65-79 17% 1.5% Medico Corp Life Insurance Company agrees to pay commission as follows: Arizona 65-69 19% 2% 70-74 17% 2% 75-79 16.5% 2% 80+ 9% 2% Colorado All Ages 16% 2% Georgia and North Carolina 0-64 0% 0% 65-79 19% 2% 80+ 10% 2% Kansas 0-64 19% 2% 65-79 19% 2% 80+ 10% 2% Kentucky 0-64 4% 1% 65-79 19% 2% 80+ 10% 2% Michigan Issue Ages Years 1-3 Years 4-6 Years 7-10 0-64 0% 0% 0% 65-79 27% 6% 2.5% 80+ 12% 6% 2.5% Ohio Pennsylvania 0-64 19% 2% 65-79 19% 2% 80+ 10.5% 2% West Virginia Issue Ages: Years 1-5 Years 6-10 65-79 20% 2% 80+ 11% 2% 3
Producer Commission Schedule for Medicare Supplement Products, cont. All rider forms have the same commission rate as the policies to which they are attached unless specifically stated otherwise in the Commission Schedule. No policy fee shall be collected on this policy form. Commissions will be paid on the original premium only. No commission will be paid on any premium increase. No commission will be paid on premium attributed to the Part B Deductible coverage. You will reimburse us any commissions you receive on premiums which are returned by us as required by state regulations concerning Loss Ratio Standards and Refund or Credit of Premium. Reduced commissions (except CO, IN, MI, OR, PA, SC, TN and replacements in MO) are payable on Guaranteed Issued policies. You will be paid $24.00 for the first policy year and $12.00 for each policy year thereafter (except in Michigan, you will be paid a commission of $20.00 in each of the first through third policy years and $10.00 for each policy thereafter). No overwrites will be paid. These reduced commissions are in lieu of any commission otherwise payable. This applies to persons under age 65 that are eligible for Guaranteed Issue, but does NOT apply to policies issued to persons eligible strictly on the basis of his or her enrollment for benefits under Medicare Part B (Open Enrollment), including the special annual Open Enrollment in Missouri. 4
Producer Commission Schedule for Dental/Vision/Hearing Products EFFECTIVE DATE: October 1, 2014 Medico Insurance Company agrees to pay commissions as follows: Georgia Issue Ages: Commission First Policy Year Years 2+ 18-74 45% 5% 75-89 45% 5% Alabama, Arkansas, Idaho, Illinois, Kansas, Louisiana, Mississippi, Missouri, Montana, Nebraska, New Mexico, Oklahoma, Pennsylvania, South Carolina, Texas, West Virginia, Wisconsin and Wyoming Issue Ages: Commission First Policy Year Years 2+ 18-74 40% 5% 75-89 40% 5% Arizona, Delaware, Indiana, Iowa, Maine, Michigan, North Carolina, Ohio, Oregon, Tennessee, Utah, Virginia, and Vermont Issue Ages: Commission First Policy Year Years 2+ 18-74 35% 3% 75-89 35% 3% Colorado, Minnesota, North Dakota, Rhode Island and South Dakota Issue Ages: Commission First Policy Year Years 2+ 18-89 17% 2% Florida and Nevada Issue Ages: Commission First Policy Year Years 2+ All Ages 14% 1.5% All rider forms have the same commission rate as the policies to which they are attached unless specifically stated otherwise in the Commission Schedule. No policy fee shall be collected on this policy form. Commissions will be paid on the original premium only. No commission will be paid on any premium increase. 5
Producer Commission Schedule for Other Health Products EFFECTIVE DATE: September 1, 2014 Medico Insurance Company agrees to pay commissions as follows: Hospital Indemnity Alabama, Arkansas, Georgia, Idaho, Illinois, Iowa, Kansas, Louisiana, Maine, Mississippi, Missouri, Montana, Nebraska, Nevada, New Mexico, North Carolina, Oklahoma, Oregon, Pennsylvania, Texas, Utah, West Virginia, Wisconsin and Wyoming Issue Ages Commission First Policy Year Years 2-6 Years 7-10 Years 11+ Ages 40-85 50% 10% 5% 2.5% Arizona, Florida, Indiana, Kentucky, Michigan, Ohio, South Carolina, Tennessee and Virginia Issue Ages Commission First Policy Year Years 2-6 Years 7-10 Years 11+ Ages 40-85 42% 10% 5% 2.5% Colorado and Washington Issue Ages Commission First Policy Year Years 2-6 Years 7-10 Years 11+ Ages 40-85 36% 5% 2.5% 2.5% Recovery Care Products Alabama, Arizona, Arkansas, Colorado, Delaware, Georgia, Idaho, Illinois, Indiana, Iowa, Kentucky, Louisiana, Maine, Mississippi, Missouri, Montana, Nebraska, Nevada, New Mexico, North Carolina, Ohio, Oklahoma, Oregon, Pennsylvania, South Carolina, Tennessee, Utah, Virginia, West Virginia and Wyoming Issue Ages: Commission First Policy Year Years 2-10 Years11+ 18-79 45% 5% 2.5% Michigan Issue Ages: Commission First Policy Year Years 2-10 Years11+ 18-64 45% 5% 2.5% Issue Ages: Years 1-3 Years 4-10 Years11+ 65-79 22.5% 5% 2.5% First Diagnosis Cancer Products: Alabama, Arizona, Arkansas, Georgia, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Missouri, Montana, Nebraska, Nevada, New Mexico, North Carolina, Ohio, Oklahoma, Oregon, Pennsylvania, South Carolina, Tennessee, Texas, Utah, Wisconsin and Wyoming Without Inflation Protection Issue Ages: Commission First Policy Year Years 2-10 Years 11+ 18-79 45% 5% 2.5% With Inflation Protection Issue Ages: Commission First Policy Year Years 2-10 Years 11+ 18-79 52% 12% 4.5% 6
Producer Commission Schedule for Other Health Products, cont. Colorado and Washington Without Inflation Protection Issue Ages: Commission First Policy Year Years 2-10 Years 11+ 18-79 28% 2.5% 2.5% With Inflation Protection Issue Ages: Commission First Policy Year Years 2-10 Years 11+ 18-79 37% 7.5% 4.5% Michigan Without Inflation Protection Issue Ages: Commission First Policy Year Years 2-10 Years 11+ 18-64 45% 5% 2.5% Issue Ages: Years 1-3 Years 4-10 Years 11+ 65-79 12% 5% 2.5% With Inflation Protection Issue Ages: Commission First Policy Year Years 2-10 Years 11+ 18-64 52% 12% 4.5% Issue Ages: Years 1-3 Years 4-10 Years 11+ 65-79 15% 12% 4.5% All rider forms have the same commission rate as the policies to which they are attached unless specifically stated otherwise in the Commission Schedule. No policy fee shall be collected on this policy form. Commissions will be paid on the original premium only. No commission will be paid on any premium increase. No commissions will be paid on Waivered premiums (applies only to Recovery Care Products and First Diagnosis Cancer Products). Inflation coverage is not available in Georgia. 7
Producer Commission Schedule for Life Insurance Products EFFECTIVE DATE: October 1, 2012 Medico Insurance Company agrees to pay commissions as follows: Whole Life Arkansas, Colorado, Idaho, Illinois, Iowa, Kentucky, Missouri, Nebraska, Nevada, New Mexico, Oklahoma, Oregon, South Carolina, Tennessee, Utah, West Virginia and Wyoming Issue Ages: Commission First Policy Year Years 2+ 50-75 70% 5% 76-85 60% 5% Commissions are paid on annual $40.00 processing fee. Commissions will be charged back for death due to natural causes during first six months at 100%. Death due to natural caused during second six months at 50% Unearned commissions will be charged back on lapsed policies due to death. Graded Benefit Colorado, Idaho, Illinois, Iowa, Kentucky, Missouri, Nebraska, New Mexico, Oklahoma, Oregon, South Carolina, Tennessee, Utah and Wyoming Issue Ages: Commission First Policy Year Years 2+ 50-75 70% 5% 76-85 60% 5% Commissions are paid on annual $40.00 processing fee. Commissions will be charged back for death due to natural causes during first twelve months at 100%. Death due to natural causes during second twelve months at 50%. Unearned commissions will be charged back on lapsed policies due to death. 8