Your Success Comes First'

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Your Success Comes First.
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Outline

• Introduction to Securian Financial Network, Inc.
• Current Debt Cancellation Programs
• Results to Date
• Lessons Learned
• Dos and Donts
• Discussion

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Securian Financial Network, Inc.

• Distributor of insurance, lending and loan
  protection
• products in the financial institution market
• Focus is on maximizing participation in loan
  protection
• programs and driving fee income
• Affiliate of Minnesota Life Insurance Company
• - Leading writer of mortgage optional insurance
  products
• 9th leading writer of credit insurance, with
  history and
• focus on MOB credit
• - One of top 15 rated insurance companies in the
  U.S.
• PC affiliate, Securian Casualty, writes
  contractual
• liability insurance policies

Your Success Comes First.
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Current Debt Cancellation Programs

• Over 200 plan designs for more than 70 financial
  institutions
• 15 of these 70 have selected a debt cancellation
  partner
• 14 of the 15 have selected Securian
• Of these 14
• 6 are producing revenue
• 8 are in the process of implementation

Your Success Comes First.
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Debt Cancellation Drivers

• HOEPA changes
• Multi-state programs
• Insurance licensing concerns
• Product enhancements
• Improved consumer price points
• Simplified bank administration
• Improved income potential

Your Success Comes First.
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Results To Date

• The Good
• The Bad
• The Ugly

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Results To Date The Good

• At one institution, MOB debt cancellation has had
  better participation than SP credit insurance
• Total participation increased from 9 to 11
• At another institution, roll-out of debt
  cancellation has also helped credit insurance
  sales
• Total participation increased from 21 to 34
  (consumer loans)
• Total participation increased from 10 to 20
  (home equity loans)

Your Success Comes First.
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Results To Date The Good (continued)

• Package selections at one institution
• Single life, disability (6 month), involuntary
  unemployment (3 month), family leave (3 month) -
  68
• Single disability (6 month), involuntary
  unemployment (3 month), family leave (3 month)
  21
• Joint life, disability (6 month), involuntary
  unemployment (3 month), family leave (3 month)
  10
• Single life and disability (full term) 1

Your Success Comes First.
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Results To Date The Bad

• At several institutions, systems issues delayed
  implementation
• At one institution, too many product variations
  at POS have confused staff and led to lower
  participation

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Results To Date The Bad (continued)

• At one institution, full coverage product had too
  high a cost to sell successfully at POS

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Results To Date The Ugly

• At one case, rushed internal roll-out led to poor
  results and hurt strong existing credit
  insurance plan
• Total participation dropped from 30 to under 20
• Post-implementation audit highlighted poor
  enrollment processes and inadequate staff
  training
• Early involuntary unemployment claims were
  ineligible for coverage

Your Success Comes First.
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Lessons Learned

• Debt cancellation flexibility can lead to endless
  product design review
• It is never too early to consider impact on bank
  systems in design and implementation
• Education and training of front line personnel is
  essential to success make time for it

Your Success Comes First.
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Lessons Learned (continued)

• There are many debt cancellation issues that have
  not yet been answered best to know your
  response going in
• Be ready to make changes

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Debt Cancellation DONTs

• DONT become paralyzed by the product design
  flexibility

Your Success Comes First.
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Debt Cancellation DONTs (continued)

• DONT become paralyzed by the product design
  flexibility
• DONT try to cross-sell too many products at POS

Your Success Comes First.
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Debt Cancellation DONTs (continued)

• DONT become paralyzed by the product design
  flexibility
• DONT try to cross-sell too many products at POS
• DONT limit your ability to make plan and fee
  changes in the future

Your Success Comes First.
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Debt Cancellation DONTs (continued)

• DONT become paralyzed by the product design
  flexibility
• DONT try to cross-sell too many products at POS
• DONT limit your ability to make plan and fee
  changes in the future
• DONT forget importance of price points

Your Success Comes First.
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Debt Cancellation DONTs (continued)

• DONT become paralyzed by the product design
  flexibility
• DONT try to cross-sell too many products at POS
• DONT limit your ability to make plan and fee
  changes in the future
• DONT forget importance of price points
• DONT forget that products dont sell, people do

Your Success Comes First.
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Debt Cancellation DONTs (continued)

• DONT become paralyzed by the product design
  flexibility
• DONT try to cross-sell too many products at POS
• DONT limit your ability to make plan and fee
  changes in the future
• DONT forget importance of price points
• DONT forget that products dont sell, people do
• DONT rush implementation of the program

Your Success Comes First.
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Debt Cancellation DOs

• DO evaluate current credit insurance program

Your Success Comes First.
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Debt Cancellation DOs

• DO evaluate current credit insurance program
• DO focus on using debt cancellation to solve your
  credit insurance issues

Your Success Comes First.
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Debt Cancellation DOs

• DO evaluate current credit insurance program
• DO focus on using debt cancellation to solve your
  credit insurance issues
• DO secure top management support and involvement

Your Success Comes First.
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Debt Cancellation DOs

• DO evaluate current credit insurance program
• DO focus on using debt cancellation to solve your
  credit insurance issues
• DO secure top management support and involvement
• DO focus on building/maintaining a successful
  sales culture

Your Success Comes First.
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Debt Cancellation DOs

• DO evaluate current credit insurance program
• DO focus on using debt cancellation to solve your
  credit insurance issues
• DO secure top management support and involvement
• DO focus on building/maintaining a successful
  sales culture
• DO involve your front-end personnel on product
  design

Your Success Comes First.
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Debt Cancellation DOs

• DO evaluate current credit insurance program
• DO focus on using debt cancellation to solve your
  credit insurance issues
• DO secure top management support and involvement
• DO focus on building/maintaining a successful
  sales culture
• DO involve your front-end personnel on product
  design
• DO involve systems and compliance personnel from
  the start

Your Success Comes First.
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Debt Cancellation DOs

• DO evaluate current credit insurance program
• DO focus on using debt cancellation to solve your
  credit insurance issues
• DO secure top management support and involvement
• DO focus on building/maintaining a successful
  sales culture
• DO involve your front-end personnel on product
  design
• DO involve systems and compliance personnel from
  the start
• DO have plan for lending compliance, tax
  reporting and financial reporting

Your Success Comes First.
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Debt Cancellation DOs

• DO evaluate current credit insurance program
• DO focus on using debt cancellation to solve your
  credit insurance issues
• DO secure top management support and involvement
• DO focus on building/maintaining a successful
  sales culture
• DO involve your front-end personnel on product
  design
• DO involve systems and compliance personnel from
  the start
• DO have plan for lending compliance, tax
  reporting and financial reporting
• DO work with a high-quality partner who has
  experience in design, compliance, sales support,
  and in getting results

Your Success Comes First.
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Questions/Discussion
Your Success Comes First.