American Select Corporate Overview

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URL Financial
Bridging the gap to new sales and increased
commissions TC/TC1 8/01/07
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Presented by
Dave Ward

• Senior Vice President and Senior Product Officer
  with American Select, with over 25 years
  experience in the health insurance industry.

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AGENDA

• Who is American Select
• Carrier Partners and Administration
• Supporting Our Distribution
• PPO Information
• Product/State Availability
• Target Markets
• Product Review
• Value Added Advantages
• Distribution and Contact Information

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American Select Strategic Alliance Program
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Who We Are What We Do
American Select is a management company that
manages, through strategic alliances with the
best partners in the industry, the entire product
line from beginning to end, including design,
filings, pricing, reinsurance, marketing,
underwriting, administration and risk management
(collectively referred to as our Strategic
Alliance Program)
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Who Are The Alliance Partners

• Our reinsurance partner, Munich Re America, is a
  member of the Munich Re Group, the 3rd largest
  financial services company in the world and one
  of the worlds and Americas leading reinsurers,
  meeting the needs of its clients since 1880.
  Munich Re America has 3.9 billion in statutory
  surplus and 17.5 billion in high-quality assets
  to provide clients with outstanding balance sheet
  strength, stability, and the liquidity to pay
  claims promptly.

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Carrier

• 1. Founded in 1936
• Headquartered in Glenview, IL (suburb of Chicago)
• A.M. Best Rating B (Very Good)
• A Mutual Reserve Company
• Over 2,000,000,000 life insurance in force
• 1,500,000 insureds
• Over 400,000,000 paid in claims in last five
  years
• Licensed in 49 states, DC and Puerto Rico

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Who Are The Alliance Partners

• Underwriting
• Inforce Administration
• Claims
• Commission Payments

Our administrative service partner, Insurers
Administrative Corporation (IAC), was founded
in March 1978, IAC is one of the largest
third-party administrators in the United States,
with more than 400 employees specializing in
individual health insurance administration.
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American Select Insurance Management Corporation

• Supporting Our Distribution
• Electronic Tools -
• Select Xpress Online Service (quoting and
  submission)
• Select Faxing Service
• Online Contracting Available
• Agent Website Tools
• Up-to-date Info on all products and PPO Lists
• Printable Forms, Brochures, Applications,
  Underwriting Guides and procedures, Specimen
  Policies, etc.
• Case Status in Underwriting
• Expedite the Processing of Your Cases
• Availability of Production and Business Summary
  Reports
• Online commission statements and renewal reports

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PPO Networks

• Choose from Multiple PPO networks, including two
  national PPO networks
• No balance billing when utilizing PPO providers
• No claim forms to complete when utilizing PPO
  providers
• Medical Emergency Services, (as defined in the
  policy), paid at PPO level of benefits (subject
  to usual, reasonable and customary)
• Medically necessary services not available from a
  PPO provider and referred to a Non-PPO provider
  considered for payment at PPO level(subject to
  usual, reasonable customary)
• Utilizing PPO providers will result in lower
  out-of-pocket costs to you.

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The Most Extensive PPO Network Availability in
the Industry

• Features National and Popular Regional Networks
• SelectXpress now displays the available
  PPO networks by state
• Each network has a link to their website, phone
  number and also displays Network Factor
• This makes it as easy as a click of your mouse to
  find out if your clients physician is
  participating in one of the available networks

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Phase I - Approved and Released

• Florida
• Ohio
• Pennsylvania
• Virginia
• Mississippi
• Missouri

• Wisconsin
• Illinois
• Indiana
• Michigan
• South Carolina
• Texas
• West Virginia

• Alabama
• Arizona
• Arkansas
• Colorado
• Georgia
• Nebraska

Phase II - Will be released as state approvals
are received

• Kentucky
• Kansas

• California
• Nevada

• Tennessee
• Oklahoma

• New additional states as requested by
  distribution - as approved

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Target Markets

• Individuals who are looking for Tax Relief, a
  sound investment portfolio and excellent Single
  Deductible Comprehensive Major Medical Coverage
  our TrustCare One HSA Qualified High Deductible
  Health Plan
• Individuals looking for Excellent major medical
  coverage with flexibility for various benefit
  levels and pricing (consumer driven health care)
  TrustCare Comprehensive and Popular plans.
• Individuals looking for the most affordable
  healthcare and are willing to accept the
  responsibility for most routine healthcare, but
  coverage with the best protection for severe and
  long term expenses TrustCare Economical Plan.

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Products
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2007 Product Summary

• TrustCare One HSA Qualified Plans

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2007 Product Summary

• TrustCare One HSA Qualified Plans
• Express Scripts Discount Card Included
  (Outpatient Rx Covered after deductible)
• Routine Physical Exam - only 90 day wait
• Initial 12 month rate guarantee included
• Optional On-the-Job Coverage

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Funding Your HSA

• Individual Contribution Limit 2,850.
• Family Contribution Limit 5,650.
• If you are 55 or older you are eligible to
  contribute an additional 800 in 2007, increasing
  by 100 each year until 2009.
• You, your employer and/or another interested
  individual can make contributions to your HSA.
  However, all contributions can not exceed the
  annual contribution limit.
• Individuals or families who become covered under
  an HSA eligible plan in a month other than
  January can make the maximum HSA contribution
  limit in the first year of eligibility regardless
  of the effective date of their insurance
  coverage.
• You have until April 15 or the tax-filing
  deadline to contribute the allowable limit for
  the previous tax year.
• Annual deductibles and contributions are subject
  to annual cost of living adjustments as may be
  required by the Federal Government to coincide
  with the Consumer Price Index (CPI).

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2007 HSA Qualified Product Summary

• 5,000,000 Lifetime Maximum
• 100 PPO - 75/25 Non-PPO
• 80/20 PPO - 60/40 Non-PPO
• 50/50 PPO - 50/50 Non-PPO
• Deductible Choices of
• 1,100 Individual - 2,200 Family
• 1,750 Individual - 3,500 Family
• 2,700 Individual - 5,450 Family
• 3,500 Individual - 7,000 Family
• 5,000 Individual- 10,000 Family
• 100 plans only

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2007 Product Summary

• TrustCare Plan Series
• 3 Plan Choices
• Comprehensive
• Popular
• Economical

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The TrustCare SeriesOur commitment is to
provide you and your clients with an affordable,
high quality comprehensive health product with
excellent service. Coverage is available for
eligible individuals, families and even children
alone.
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Calendar Year Deductibles

• Options from 1,000 to 5,000
• Maximum of two deductibles (Comprehensive plan)
  or three deductibles (Popular Economical plans)
  per family per calendar year
• Fourth Quarter Deductible Carryover Credit every
  year, not just the 1st year
• No separate Non-PPO deductible
• Common Accident Deductible

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Important Features

• Benefits

• No separate benefit maximum for covered
  transplants
• No calendar year limit on covered outpatient
  prescriptions (Comprehensive Popular and, if
  option elected, on Economical Plan)
• Preventive Care Benefits included on all plans
• Emergency Care received outside the U.S. covered
• (Emergency as defined in the policy)
• Optional 24-Hour Occupational Coverage (no
  additional premium in most states for most
  occupations)
• Optional Supplemental Accident Benefits

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Premiums

• Family Premium Discount (whenever 2 or more
  family members issued together, even children
  only coverage)
• 20 Preferred Health Discount for qualified
  individuals ages 18 through 39
• Initial 12 Month Rate Guarantee Included
• Premiums can not be increased on an individual
  basis because of claims experience

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Whats covered or included?

• All covered expenses are subject to any
  applicable calendar year deductible, Service
  deductibles, Co-payments, coinsurance, and policy
  maximums unless otherwise specified.

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2007 TrustCare Series Plans

• Preventive Care Benefits
• Child Health Supervision (includes immunizations)
  - Specific age intervals from birth to 6 years.
  (immunizations are not subject to the calendar
  year deductible or service deductible in PA).
• Pap Smear - One screening per calendar year.
• Mammograms - One baseline ages 35-39. Age 40 and
  over covered yearly
• Prostate Cancer Screening (PSA) Tests - One per
  calendar year for males age 40 and over.
• Colorectal Cancer Screening Ages 50 and above
  One screening every 3 years (not available in
  Colorado)

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BENEFIT SET

• Hospital Daily Room and Board (semi-private
  rate), Hospital Inpatient
• Miscellaneous Medical Services and Supplies,
  Hospital Outpatient Services
• Inpatient Psychiatric Care, Chemical Dependency,
  Substance Abuse, Alcohol and Drug Rehabilitation
  - Up to maximum benefit of 55 days of active
  treatment or or 2,000 per calendar year,
  whichever occurs first
• Outpatient Psychiatric Care - 50 coinsurance up
  to 20 per visit with a maximum benefit of 55
  visits per calendar year
• Organ Transplants or Replacements - For specific
  transplants or replacements up to lifetime
  Maximum
• Oxygen and Rental of Equipment for its
  Administration

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Whats Covered or Included?

• Ambulance Service (maximum benefit 1,000 for
  ground/water, 5,000 air - per occurrence!)
• Anesthetics and their Administration
• Chemotherapy and Radiation Therapy
• Dental Treatment to Sound Natural Teeth
  (resulting from a covered injury)
• Dressings, Sutures, Casts, Splints, Trusses,
  Crutches
• Rental of Durable Medical Equipment

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Whats covered or included?

• Physical, Respiratory and Speech Therapy for
  Rehabilitative Treatment no annual limits
• Physician Charges - Inpatient and outpatient
• Skilled Nursing Facility for Convalescent Care
• Confinement in an Intensive, Intermediate,
  Observation or Specialized Care Unit - Popular
  and Economical Plans Up to 3x semi-private room
  rate Comprehensive Plan 3x semi-private room
  rate maximum is not applicable
• Home Health Care (in lieu of a covered hospital
  confinement) Comprehensive and Popular Plans Up
  to 2,500 maximum per calendar year Economical
  Plan Up to 1,500 maximum per calendar year

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Whats Covered or included?

• Homeopathic Treatment - (by a licensed
  homeopathist)
• Comprehensive Plan Up to 50 per visit up to
  500 per calendar year Popular and Economical
  Plans Up to 25 per visit to a maximum of 250
  per calendar year (All Plans supplies not
  covered)
• Hospice Care - Comprehensive Plan Up to 5,000
  lifetime maximum benefit Popular Plan Up to
  2,500 lifetime maximum benefit Economical Plan
  Up to 2000 lifetime maximum benefit
• Hospice Care Bereavement Counseling (not subject
  to calendar year deductible, service deductible,
  co-payments or coinsurance) - Covered up to 3
  months after covered persons death up to maximum
  benefit of 500

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Whats covered or included?

• Private Duty Nursing - Comprehensive Plan Up to
  2,000 maximum benefit per covered person per
  calendar year Popular and Economical Plans Up
  to 1,000 maximum benefit per covered person per
  calendar year
• Spinal Manipulation and other Manipulative
  Therapy - Up to 500 maximum benefit per covered
  person per calendar year

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2007 Product Summary

• TrustCare Plan Series Comparison Calendar
  Deductibles

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• TrustCare Plan Series Comparison

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• TrustCare Plan Series Comparison

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• TrustCare Plan Series Comparison

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• TrustCare Plan Series Comparison

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Pre-existing Conditions

• An illness or injury of a covered person for
  which the covered person has received medical
  advice, services, treatment, diagnostic tests,
  consultation or medication during the twelve (12)
  months prior to the covered persons effective
  date of coverage under the policy.
• Pre-Ex Benefits payable after 12 months
  (treatment free) or 24 months (with treatment)
• Health conditions duly disclosed in the
  application for coverage of the covered person
  and otherwise covered by this policy, unless the
  condition is specifically excluded by endorsement
  or rider attached to the policy or certificate,
  are covered from the effective date of coverage
  under the policy.

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Exclusions and Limitations

• Special waiting period
• Charges incurred prior to the date the covered
  person has been covered under the policy for six
  consecutive calendar months for the care or
  treatment of hernia tonsils adenoiditis any
  disease or disorder of the reproductive system
  any rectal disease or disorder gall bladder
  varicose veins or laminectomy, discectomy or
  spinal fusion. Any such condition may also be
  excluded as a pre-existing condition.
• This limitation shall not apply to services
  provided for an emergency where such condition is
  not excluded as a pre-existing condition. This
  exclusion will not apply to a covered person
  receiving treatment due to a malignancy, provided
  such treatment is not being rendered to a
  pre-existing condition.

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TrustCare Plan Series
All applications including Children Only
available for Online submission!

• Single
• Sample Rate for male age 32 Comprehensive
  Popular Economical
• W/o Preferred Health Discount 102.15
  85.53 79.23
• With Preferred Health Discount(PHD) 89.31
  75.38 69.52
• Couple
• Sample Rate for couple age 32
• With Family Discount 193.68
  157.35 142.74
• W/ Family Discount and PHD 166.15
  135.59 121.93
• Children Only (youngest child rate based on male,
  18, non-smoker. Additional children at dependent
  child rates.)
• Sample Rate for a 3 year old child
• One Child 81.69 69.63
  66.15
• Two children w/family discount
  121.42 100.86 93.60
• Rates are for illustrative purposes only. Rates
  presented for MBD, TrustCare PPO 80/20-10k, 1500
  deductible, PHCS Network, zip 61108, standard
  risk. 3/15/07 effective date and Basic
  association membership. Comp. plan includes
  inherent 250 ded. Rx benefit, Pop. plan includes
  inherent 500 ded. Rx Benefit, Econ. plan
  includes optional 1000 ded. Rx benefit. Rates
  include applicable dues and fees.

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New Online Proposal Tool
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New Online Application
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IAC Service Standards
IAC service standards for GTL in 2007

• Underwriting turnaround
• 2 to 7 calendar days from receipt---complete
  applications/no APS, etc.(No additional info
  necessary)
• Online applications with verification call
  completed within hours of submission normally
  issued under 48 hours.
• All correspondence is directed to client with a
  fax copy to agent (also posted on web site)
  allowing agents to focus on additional sales
  while we work with clients to expedite the
  underwriting process.
• From receipt of final requirement to date policy
  package is mailed one calendar day
• Claims average turnaround time 7 calendar days

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Underwriting Advantages

• Voice Acceptance of Exclusionary Riders
• Preferred Health Discount (PHD) questions for
  Applicants 18-39 now part of the app If selected
  and qualified issued with 20 discount
• Limited Medical Record Requests Recorded
  Telephone interviews when necessary
• Quick Reference Guide available on-line from web
  site download area (Underwriting tables,
  rate-ups, procedures, riders, state mandates,
  information, etc.) www.amersel.com

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Contact Information

• American Select Web Site
• www.amersel.com login with your American Select
  Agent Number For on-line quoting, submission,
  download supplies, and status information
  (password initially set as your social security
  number with no dashes you may change password)
  We also support your web site with links to our
  processes
• Contracting and Service Information
• URL Financial Group One-Stop Brokerage
• 5320 Jaycee Ave, Harrisburg, PA 17112-4902
• 800-926-8875 ext. 131 - Kristi Saul
• Email KristiS_at_urlfinancial.com
• Fax [phone] local phone [phone]
  ext. 131
• Ask for On-Line Contracting Instructions and GTL
  Quotes
• Only 100,000 in Health Premium qualifies you for
  URLs Puerto Rico Sales Trip!!!

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Thank you!