Field Underwriting Guide

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Field

Underwriting

Guide

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About This Pamphlet…

The Field Underwriting Guide was developed as an educational tool to assist Colonial Life’s sales organization with the underwriting process.

If you need to contact the Underwriting department, please dial 1.800.43.VOICE extension 6210 and choose from the following options:

Accident, Cancer, Individual Disability, Option 1 Critical Illness, Hospital Confinement, Intensive Care

Term Life, Universal Life, Whole Life Option 2 Disability Select, Group VSTD and Group VGTL Option 3 You may also email the Underwriting Department through the ProducerNet at [email protected].

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Glossary of Terms

The following is a glossary of commonly used terms in the Underwriting process. The definitions are both industry-standard and Colonial Life specific.

Actively Working - The applicant must be working on a full-time basis and paid

regular earnings at the account in which coverage is being offered. The employee is not on any type of leave such as Family Medical Leave, Disability, etc. “Actively Working” may be defined differently in certain states, and definitions may vary by product.

Amendment - An amendment is done when the Underwriter determines that the

premium, face amount or smoker status originally submitted for a life policy needs to be altered. Face amount and premium changes can occur as a result of the health risk of the applicant. Smoker status changes occur based on medical test results. The amendment, along with the policy, is mailed to the producer for delivery to the applicant. The applicant must sign a copy of the amendment and that signed copy must be forwarded to the Underwriting Department for the policy to be issued.

Annual Income - Basic annual earnings. This does not include income from

commissions, bonuses, overtime pay, any other extra compensation or include income from sources other than the current employer.

Annual Income of commissioned employees - Income actually received from

commissions and does not include renewal commissions, bonuses, overtime pay and any other extra compensation, or include income received from sources other than the current employer. Commission should be average over the 12 month period prior to the date of the application for coverage or based on the prior year’s W-2 income.

Attending Physicians Statement (APS) - Information from a physician who has

treated, or is currently treating, the proposed insured for one or more conditions that may affect insurability.

Benefit Period - The maximum length of time that benefits may be payable for a

specific disability.

Beneficiary - The person to whom the death benefit of an insurance policy is payable at the time of death of the insured.

Birth Exclusion - Applies to Disability and Hospital Income coverage. Excludes

coverage for pregnancy if delivery occurs within 9 months from the coverage effective date of the policy. This 9 month pre-existing will not be waived under any circumstances. The deﬁnition of “ Pre-Existing Condition” varies by state and product. Refer to the policy or outline for the product in your state for an accurate deﬁnition.

Blood Profile - Report containing results from testing an applicant’s blood and urine. This profile is used in the underwriting process to evaluate the health risk of the proposed insured.

Comprehensive Health Coverage - Major Medical Coverage. Note that some

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Declination - Denial of coverage on a proposed insured.

Domestic Partner - Colonial Life recognizes domestic partners ONLY if the

account we are writing allows domestic partners to be covered by their core benefits. A letter, on company letterhead, must be submitted by the account indicating they recognize domestic partner as described above.

Duplicate Coverage - Duplication of benefits provided by more than one policy/

rider. Colonial Life does not allow duplication of benefits.

Elimination Period - The period of time during which no benefits are payable.

Endorsement - Statement by the underwriting department altering the application

as originally completed by the applicant and/or producer. Note that some states do not allow endorsement and any changes to the application must be initialed by the applicant.

Evidence of Insurability - Any statement or proof of a person’s physical condition and/or other factual information affecting acceptability for insurance.

Exclusion Rider - A rider attached to a policy to exclude from coverage any loss arising from a specific disease or physical impairment. (Not available in all states).

Fully Underwritten - The process in which full medical history on the proposed

insured is reviewed to determine eligibility for coverage. This may include Health questions, blood profiles, APS, medical exams, motor vehicle reports, inspection reports, etc.

Guaranteed Issue (GI) - Act of issuing coverage to all eligible applicants regardless of health history. Guaranteed Issue is available for certain products when the Home Office determines participation requirements have been met. The appropriate application must always be completed and pre-existing still applies to the policy.

Inspection Reports - A report made by a consumer reporting agency concerning

the proposed insured’s personal life, activities, occupation, and economic standing. An inspection report is considered an investigative consumer report as defined by the Fair Credit Reporting Act.

Insurable Interest - Considered to be present if (a) the named beneficiary will suffer an economic loss upon the death of the proposed insured or (b) the parties to the insurance contract have a close relationship either by blood or marriage. Job Title - The designated title indicated by a group for a specific job. This title does not necessarily indicate the “nature of work” performed by a proposed insured.

Knockout question - A question on the application, when answered “yes”,

automatically results in declination of coverage.

Medical Exam - A report regarding the proposed insured’s health based on

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Occupation - The classification assigned to a profession based on the specific job responsibilities and duties that are specific to a particular industry or nature of employment.

Owner - The person who owns an insurance policy and has the right to make

changes and designate beneficiaries.

Paramedical - Is a medical exam

Payer - The person paying the premium for an insurance policy. It can be someone

different from the applicant, proposed insured, or policyowner.

Pre-Existing Condition - A sickness or physical condition, for which any covered

person was treated, had medical testing, received medical advice or had taken medication within 12 months before the effective date of the policy. Pre-existing will not be waived under any circumstances. The definition of “ Pre-Existing Condition” varies by state and product. Refer to the policy or ProducerNet by product in your state for an accurate definition.

Prohibited Account - Accounts whose nature of business have been determined to

be an unacceptable risk for the sale of Colonial Life products.

Replacement - Any transaction involving the purchase of life insurance in which

the agent knows that the existing insurance has been or will be lapsed, surrendered, or modified. Many states require signed replacement forms in order to complete the transaction. All internal Accident and Health (A&H) product replacements require a signed replacement form. (see replacement sections for your states specific replacement form) Internal Life Replacement are not allowed.

Simplified Issue - A level of underwriting that requires the proposed insured to answer minimal health questions.

Transfer of Coverage - Proposed insured agrees to cancel existing coverage and/ or attached riders in order to apply for new coverage. Internal Life Transfers /

Replacements are not permitted.

Underwriting Authorization (HIPAA) – Because of the Health Insurance

Portability and Accountability Act of 1996 (HIPAA), Colonial Life had to revise the Underwriting Authorization on all the applications. HIPAA required the Authorization to be on a separate sheet of paper and not made a part of the application. This new Underwriting Authorization allows Colonial Life to obtain medical and non-medical information necessary for underwriting the application. Waiting Period (for benefits) - The period of time after the coverage effective date, during which no benefits will be payable.

Waiting Period (for eligibility) - The period of time between an employee’s date of hire and enrollment in the benefits program.

Waiver of Monthly Deduction (Waiver of Premium) - A contract provision that

exempts an individual from the requirement to pay premiums while he or she is disabled. Colonial Life requires that a specified period of total disability must have occurred in order to be eligible for this benefit.

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Underwriting Memo

Applications submitted to the Home Office are evaluated in the Underwriting Department. If the Underwriter determines additional information is needed to complete the processing of the application, the writing level representative is contacted for that additional or missing information. This correspondence is referred to as an Underwriting memo.

The Underwriting memo, along with a copy of the application, can be located on Track an App in ProducerNet and viewed by the writing representative or their management hierarchy. Paper copies are not mailed.

For Colonial sales representatives, Track an App can be accessed via the ProducerNet>Sales and Service. For Brokers, Track an App can be accessed via ColonialConnect for Brokers> Sales and Service. Once in Track an App, go to “Business in Process” to review outstanding Underwriting issues listed by account and sales summary. There is a column which indicates “yes” or “no” to Underwriting issues. This pertains to all policies associated with that sales summary.

If the sales summary does contain Underwriting issues, the producer can access the information at the policy level by clicking on the “yes.” The next view will allow you to determine whether the ﬁle is in process based on Home Office review or Sales Organization review. In addition, it will give the producer a short description of the information under review. If no additional information is listed for that policy, the status is either issued or declined. The producer only needs to be concerned with applications that have a yellow LTR icon next to the application number.

Two additional links are provided at the policy level. The link provided via the policy number will give the producer policy detail information including the status. The white envelope symbol is a link that allows the producer to email the Underwriting department with any questions regarding that particular ﬁle. The producer must respond to any Underwriting memos in writing directly on the application or supplemental health form based on the information being requested. Do not make any corrections on the memo as this does not become part of the issued policy.

Individual policy information will remain in Track an App for 14 days after the ﬁnal policy within that sales summary has been resolved.

The writing level representative is given 16 days from the date of the Underwriting memo to return the additional or missing information to the Underwriting Department. If your application was written in a non-endorsement state, all changes made on the application must be initialed by the applicant in order for the Underwriting department to approve the application. Non-endorsement states are AL, KY, HI, LA, MD, MO, NH, OR, PA, SC and WV.

If, after the 16 day timeframe, we have not received a response to our request for additional information, the file will be declined for no reply. In addition, the applicant will receive a letter informing them of the denial of coverage. The declination will result in a charge back to the advance and the never effect rate for all producer’s compensated for that application. Reopens will not be permitted. A new application must be submitted.

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Track an App for Underwriting

All underwriting memos requesting additional information, as well as a copy of the application, are available on Track an App for review and response. Paper copies are not mailed. All responses should be faxed to the underwriting toll free fax at 1-888-668-7967 or mailed to the Home Office.

Track an App is a ProducerNet tool designed to allow the sales organization to track applications as they are processed through the Home Office. This section pertains to the processing handled by the Underwriting Department.

For Colonial sales representatives, Track an App can be accessed via the ProducerNet>Sales and Service. For Brokers, Track an App can be accessed via Brokernet>Work Essentials. Once in Track an App, go to “Business in Process” to review outstanding Underwriting issues listed by account and sales summary. There is a column which indicates “yes” or “no” to Underwriting issues. This pertains to all policies associated with that sales summary. If the sales summary does contain Underwriting issues, the producer can access the information at the policy level by clicking on the “yes.” The next view will allow you to determine whether the ﬁle is in process based on Home Office review or Sales Organization review. In addition, it will give the producer a short description of the information under review. If no additional information is listed for that policy, the status is either issued or declined. The producer only needs to be concerned with applications that have a yellow LTR icon next to the application number.

Two additional links are provided at the policy level. The link provided via the policy number will give the producer policy detail information including the status. The white envelope symbol is a link that allows the producer to email the Underwriting department with any questions regarding that particular ﬁle. The producer must respond to any Underwriting memos in writing directly on the application or supplemental health form based on the information being requested.

Individual policy information will remain in Track an App for 14 days after the ﬁnal policy within that sales summary has been resolved.

Please allow 7 to 10 days after submission for the application to be initially reviewed by an Underwriter prior to calling underwriting or sending an email through Track an App. Again, underwriting memos as well as a copy of the application are available through Track an App for you to review and handle.

An email notification will be sent to the writing representative notifying them of

correspondence from Underwriting. The email will provide the reason for correspondence and related policies or sales summaries; however, you should check Track an App at least twice a week for any issues on business submitted. In order to receive an email from us, you must have a valid email address on file with us.

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Transfer and Stacking

Transfer

A transfer occurs when a Colonial Life insured agrees to cancel existing coverage and/or attached riders in order to apply for new coverage with similar benefits. The application being completed should indicate the coverage as being transferred and the transfer section on the application should indicate the policy number(s) of the coverage or rider being canceled. In addition, a separate applicant signature in the transfer section is required. Only the new AccHlth application does not require a separate transfer signature.

Completing the application properly in a transfer situation is very important. By doing so, the producer will ensure that the prior coverage gets cancelled as of the effective date of the new coverage and avoids a gap in coverage for the insured. In addition, it ensures that the bill sent to the account shows the correct deductions for that insured. The other benefit of a transfer is that if the new coverage is declined for any reason, the prior coverage will, in most instances, be placed back in force.

A transfer can occur when an insured is increasing or decreasing benefits within a product, moving from one generation of a product to a newer generation or when adding family members to a policy. In most instances of a transfer, additional underwriting is required and the appropriate health questions need to be answered. It is important to remember that sometimes the transaction involves transferring an existing rider such as the Accident Care disability rider transferring to a Disability 1000 plan. If you are using Sales Automation, a request for service form needs to be completed in order to cancel the rider. You cannot cancel a rider through Sales Automation without canceling the base plan as well. In a manual or Harmony enrollment situation, you can indicate rider only in the transfer section and sign the transfer request.

Each product has specific guidelines for transfer situations you may encounter. You can find this information in the Underwriting Overview section for the product on ProducerNet or in the Product Reference Pamphlet for each product.

All A&H product transfers require an internal A&H replacement form (see A&H replacement section for state specific form). Internal life transfers / replacements are not permitted.

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Colonial Life does not allow stacking within the same product, generation of product or alternate product with similar benefits in any instance. This often duplicates one or more benefits and can cause overinsurance to occur.

The only exception to this rule is when the insured has aged into a new age band and wishes to increase their coverage. This can only be done if the plan design and product generation of the new coverage matches the plan design and product generation of the existing coverage. An example would be an application with a current DI 1000 with a plan 2, 14/14 day elimination period, 6 month benefit period, who has entered a new age band; can only stack a new DI 1000, plan 2, 14/14 day elimination period, 6 month benefit period.

Each product has specific guidelines for when stacking is allowed. You can find this information in the Underwriting Overview section for the product on ProducerNet or in the Product Reference Pamphlet for each product.

Adding a rider to an existing policy

Several Colonial Life products have optional riders that can be purchased if the base plan is purchased. It is important that the application be completed and submitted properly when adding a rider to an existing base plan. This section is not intended for riders added at the initial purchase of the base plan.

If the insured wishes to add an optional rider to an existing policy, the application should only indicate the plan code and premium of the rider or riders being added. The plan code and premium of the existing base policy should not be indicated on the application.

In addition, you must answer all the appropriate questions on the application. More than likely the actively at work, replacement, medicare and certain health questions will apply in rider addition situations.

The other key to handling rider additions correctly is that they must be manually submitted to the New Business department. Electronic transmission of rider additions will result in the coverage going to the warehouse and a delay in processing the business will occur.

Each product has specific guidelines for the correct Underwriting for riders available with that product. You can find this information in the Underwriting Overview section for the product on ProducerNet or in the Product Reference Pamphlet for each product.

NOTE: You may hear the addition of a rider to an existing base plan referred to as a dependent add or dependent addition.

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Service to Existing Policies

This section is designed to give you the information necessary to service existing Colonial Life policies. Please refer to the attached policy change matrix which reflects the necessary paperwork required to request / service existing policies.

Disability:

Disability coverage may be increased or decreased by changing the monthly benefit amount, elimination period or benefit period.

Any changes to an existing disability policy require a new application reﬂecting the desired change, with the exception of a decrease to the monthly benefit amount. This type of transaction can be submitted on a Request for Service form reflecting the lower benefit amount.

When submitting this new application for the desired change a transfer

signature is required in all cases as this type transaction transfers the prior policy to the new policy.

Cancer:

The benefit level of cancer coverage may be increased or decreased, family status may be changed or the applicant may transfer to the newest generation of cancer coverage in the cancer portfolio.

A new application is required when increasing or decreasing benefit level, changing from a current cancer plan to a newer version or changing from individual to one parent or one parent to two parent coverage. When submitting an application requesting any of these changes, the transfer signature is required. If the desired change is to go from a two parent to a one parent or one parent to individual coverage, a “Request for Service” form can be submitted.

If adding a new spouse or dependent to an existing family cancer plan, a new application indicating that a spouse or dependent is being added must be submitted. Note on the app that this is an update to existing coverage and you should not submit a sales summary with the application. The cancer question must be answered and reflect the health for the spouse or child being added. This is the only individual that will be underwritten.

Dependents are allowed to continue cancer coverage past age 25 without evidence of insurability by submitting an application in the dependent’s name and providing the existing policy number that dependent is currently covered

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Critical Illness:

The Critical Illness (CI) face amount may be increased or decreased. The applicant may also change from CI with cancer to CI without cancer or to CI without cancer to CI with Cancer. An insured cannot have Critical Illness with Cancer and a stand alone Cancer plan. The tobacco status may also be changed. The existing Critical Illness plan must be in force at least one (1) year before any changes can be made to the policy. A new application must be submitted and the transfer signed.

An insured cannot have Critical Illness with Cancer and a stand alone Cancer plan.

Life:

Universal Life face amounts may be increased or decreased, the death benefit option may be changed, and the tobacco status may be changed.

A new application is required when increasing the face amount, changing the death benefit option from A to B or changing the tobacco status

A “Request for Service” form may be submitted when decreasing the face amount or changing the death benefit option from B to A.

All Level Term Life change requests (face amount changes or tobacco/non-tobacco changes) require a new application.

Existing Whole Life 1000 policies can not be increased. In order to obtain additional whole life coverage, a new application for the additional face amount is required. The maximum total face amount allowed for The maximum total face amount allowed for a single Whole Life 1000 policy is $100,000. This can be reflected as multiple policies.

Spouse or Dependent term riders can be added to existing UL, Level Term or Life Bridge by submitting an application for the spouse/dependent to be added and the policy number the rider is being added to.

An Accidental Death Benefit Long Term Care and/or Waiver of Monthly deduction (or Waiver of Premium) rider may be added to existing UL life plans only if an increase is being applied for. You cannot increase an existing rider. The Accidental Death Benefit rider and the Waiver of Premium rider for Level Term and Whole life policies can only be purchased at the original issue of the base policy. They cannot be added to an existing policy.

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Hospital Confinement:

The benefit level of hospital confinement coverage may be increased or decreased, family status may be changed or the applicant may transfer to the newest generation of hospital confinement coverage in the hospital confinement portfolio.

A new application is required when increasing or decreasing beneﬁt level, changing from a current hospital confinement plan to a newer version or changing from individual to one parent or one parent to two parent coverage. When submitting an application requesting any of these changes, the transfer signature is required.

If the desired change is to go from a two parent to a one parent or one parent to individual coverage, a “Request for Service” form can be submitted.

If adding a new spouse to an existing family hospital confinement plan, a new application indicating that a spouse is being added must be submitted. Note on the app that this is an update to existing coverage and you should not submit a sales summary with the application. The cancer question must be answered and reﬂect the health for the spouse being added. This is the only individual that will be underwritten.

Dependents can be added to an existing family plan by submitting a Request for Service form indicating the dependents name and date of birth. Dependents are also allowed to continue cancer coverage past age 25 without evidence of insurability by submitting an application in the dependent’s name and providing the existing policy number that dependent is currently covered under. The new app must be submitted within six (6) months of the dependent turning 25.

Intensive Care:

A new application is required when increasing or decreasing beneﬁt level, or changing from individual to one parent or one parent to two parent coverage. When submitting an application requesting any of these changes, the transfer signature is required.

If the desired change is to go from a two parent to a one parent or one parent to individual coverage, a “Request for Service” form can be submitted.

If adding a new spouse to an existing family hospital confinement plan, a new application indicating that a spouse is being added must be submitted. Note on the app that this is an update to existing coverage and you should not submit a sales summary with the application. The cancer question must be answered and reﬂect the health for the spouse being added. This is the only individual that

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Dependents can be added to an existing family plan by submitting a Request for Service form indicating the dependents name and date of birth. Dependents are also allowed to continue cancer coverage past age 25 without evidence of insurability by submitting an application in the dependent’s name and providing the existing policy number that dependent is currently covered under. The new app must be submitted within six (6) months of the dependent turning 25.

Accident:

There are multiple change that can be requested for an existing accident plan. These type request can be made by submitting a new application or may only require a Request for Service form, Please refer to the attached “Policy Change Matrix” for the required paperwork based on the change request desired.

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Product Requested Change Required Paperwork

Disability Increase Units New App

Decrease Units Request for Service Change Elimination or Benefit Period New App

Change Plan Design (on/off or off) New App

Drop / Terminate Rider Request for Service

Life Increase Face New App

Decrease Face (Universal Life) Request for Service Decrease Face

(Whole Life and Term) Not Available Add Riders New App Change Plan Design (Tob or Non-Tob) New App Change Plan Design (Option A to B) New App

Change Plan Design (Option B to A) Request for Service Drop / Terminate Rider(s) Request for Service

Critical Illness Increase Face New App

Decrease Face Request for Service Change Plan Design (CI w/C or

CI w/o C) or (Tob or Non-Tob)

New App

Family to Individual Request for Service Individual to Family New App

Adding a NEW spouse to a family plan when there has been a divorce or death of first spouse

New App

Spouse Continuation - Death of

Main Insured Request for Service Add Dependent to Family Plan Request for Service Dependent Continuation age 25 Not Available

Accident Individual to Family New App

Family to Individual Request for Service Add Rider(s) or Increase Units

on Existing DI Rider New App

Decrease Units on Existing DI Rider Request for Service Change Elimination Period or

Benefit Period

New App Spouse Continuation - Divorce

or Death of Main Insured

Request for Service Add Dependent or Spouse to

Individual Plan New App

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Product Requested Change Required Paperwork Hosp Confinement Individual to Family New App

Family to Individual Request for Service Increase or Decrease to Level New App

Add Dependent to Family Plan Request for Service Add Dependent to Individual Plan New App

New App

Dependent Continuation age 25 Request for Service Spouse Continuation - Divorce

or Death of Main Insured Request for Service

Cancer Individual to Family New App

Family to Individual Request for Service Add Riders or Change Level

(Increase or Decrease) New App

New App

Spouse Continuation - Divorce or Death of Main Insured

Request for Service Dependent Continuation age 25 Request for Service Drop / Terminate Rider(s) Request for Service

Intensive Care Individual to Family New App

Family to Individual Request for Service Increase or Decrease to Level New App

New App

Spouse Continuation - Divorce or Death of Main Insured

Request for Service Dependent Continuation age 25 Request for Service

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Special State Compliant Questions

In addition to the health questions on the applications, some states require us to ask what we term as special state compliant questions. This section is designed to give you some additional information about those questions and which products require the questions to be answered.

Question State Disability Accident Cancer Critical

Illness Hospital Confinement Medicare Eligible

Medicare Certification Form #49277 Guide for People with Medicare #45503

All X

(Grp & Ind) (Grp & Ind)X (Grp & Ind)X (Grp & Ind)X Important Notice to Persons on Medicare

Form #48433 All (Grp & Ind)X (Grp & Ind)X (Grp & Ind)X (Grp & Ind)X

Comprehensive Health Coverage (if answered

No, coverage should not be issued) CA, VT, DC (Grp & Ind)X (Grp & Ind)X (Grp & Ind)X

No, coverage should not be issued) GA X

No, coverage should not be issued) MA (Grp & Ind)X (Grp & Ind)X

Are you currently covered or do you have any application pending for any other specified disease coverage or for the same specified disease that this policy would cover?

MA X

(Grp & Ind) (Grp & Ind)X Will purchase of this policy result in your being

covered 8 or more specified diseases? MA (Grp & Ind)X (Grp & Ind)X

Do you wish to purchase Hospice and Home Health Care (if answered No, issue coverage. If answered Yes, write applicant to see if he wants 0714.)

CO X X

List all health insurance KY X X X X

Do you wish to purchase optional Alcoholism coverage (if answered Yes, coverage should not be issued)

MN X

(Grp & Ind) (Grp & Ind)X Are you covered under a Qualified plan (If

answered No, coverage should not be issued) MN (Grp & Ind)X (Grp & Ind)X (Grp & Ind)X (Grp & Ind)X Presently covered under any other health

insurance policy (if yes, list on app) NJ X X X X X

Do you have coverage providing benefits for hospital and medical services and supplies (If no, coverage should not be issued)

NJ X

(Grp & Ind) (Grp & Ind)X Do you have specified disease or specified

accident coverage (If yes, should not issue coverage)

PA X

(Grp & Ind) (Grp & Ind)X

Do you have other cancer coverage SC X X X

Do you (age 65 or older only) have insurance, other than life, in force with us or any other insurer (If yes, Disclosure Form (53657)

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When to use Which Application?

It seems like every time Colonial Life introduces a new product, we also introduce a new application. We recognize this is a burden on the sales organization and in an effort to assist in understanding when to use which application, we have added this section.

We are in the process of correcting the multiple applications per product situation. We have developed an application, called the AccHlth App that can be used for all accident and health products. This application will eventually replace the existing applications for all accident and health products.

In addition, we have reduced the number of life applications to two applications based on which life product is being offered. Both applications handle all underwriting levels from simplified issue to fully underwritten. Currently the two new applications are Life App 07 which supports Term Life 1000 and Life App 08 which supports Universal Life 1000 and Whole Life 1000. The eventual goal is to have one life application which will support all life products as well as all levels of underwriting.

This section provides a list of the appropriate application based on the enrollment method used. A listing of these application form numbers and your state version can be found in this guide on pages 76-83.

Question State Disability Accident Cancer Critical

Illness Hospital Confinement Are you currently covered or have an app

pending for specified disease coverage (If yes should not issue coverage)

NY X

covered for 8 or more specified diseases? (If yes should not issue coverage)

NY X

(Grp & Ind) (Grp & Ind)X Are you currently covered or do you have any

application pending for any other specified disease coverage or for the same specified disease coverage included in this coverage?

MA X

covered for 8 or more specified diseases? MA (Grp & Ind)X (Grp & Ind)X

Will coverage applied for replace for be in addition to any existing specified disease coverage for any proposed insured?

KS X

For the Accident and Accident/Sickness Disability riders, follow the instructions in the disability column.

For the Sickness Hospital Confinement rider and Intensive Care coverage, follow the instructions in the Hospital Confinement column.

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Product Harmony Simple App Paper Individual Sales*

Accident 1.0 AccHlth App AccHlth App AccHlth App / All App Non-payroll App

Accident Care AccHlth App AccHlth App AccHlth App / All App Non-payroll App

CA Care AccHlth App AccHlth App AccHlth App / All App Non-payroll App

PS Accident Care AccHlth App AccHlth App AccHlth App / All App NA

Disability 1000 AccHlth App AccHlth App AccHlth App / All App NA

CA DADD AccHlth App AccHlth App AccHlth App / All App NA

Educator DI 1.0 AccHlth App AccHlth App AccHlth App N/A

Medical Bridge 3000 AccHlth App AccHlth App AccHlth App / All App NA

Cancer 1000 AccHlth App AccHlth App AccHlth App / All App Non-payroll App

Critical Illness 1.0 AccHlth App AccHlth App AccHlth App N/A

Critical Illness AccHlth App AccHlth App AccHlth App / All App NA

Intensive Care AccHlth App Not Scheduled AccHlth App / All App NA

Banner VSTD Group Enrollment

Form / EOI Not Scheduled Group Enrollment Form / EOI NA

DI Select DI Select App Not Scheduled DI Select App NA

Banner VGTL Not Scheduled Not Scheduled Group Enrollment Form / EOI NA

Group Supplemental Health 1000 Group Enrollment Form / EOI

GSH Enollment Form Group Enrollment Form / EOI NA

Group Cancer 1000 Group Hybrid

Enrollment Form / EOI Group Hybrid Enrollment Form / EOI Group Hybrid Enrollment Form / EOI NA Group Critical Illness 1000 Group Hybrid

Enrollment Form / EOI

Group Hybrid Enrollment Form / EOI

Group Hybrid Enrollment Form / EOI NA

Universal Life 1000 Life App 08 Not Scheduled Life App 08 / All App Non-payroll App

Whole Life 1000 Life App 08 Life App 08 Life App 08 / All App Non-payroll App

Term Life 1000 Life App 06 Life App 06 Life App 08 / All App Non-payroll App

# Medical Bridge Not Supported Not Supported AccHlth App / All App NA

# Medical Bridge 1000 Not Supported Not Supported AccHlth App / All App NA

# HI Secure Not Supported Not Supported GAP App NA

**CP97 (service only) Not Supported Not Scheduled Life GAP App 97 / Life App 92 NA

**LifeBridge (service only) Not Supported Not Scheduled GAP App / Life App 92 NA

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Product Harmony Simple App Paper Individual Sales*

Accident 1.0 AccHlth App AccHlth App AccHlth App / All App Non-payroll App

Accident Care AccHlth App AccHlth App AccHlth App / All App Non-payroll App

CA Care AccHlth App AccHlth App AccHlth App / All App Non-payroll App

PS Accident Care AccHlth App AccHlth App AccHlth App / All App NA

Disability 1000 AccHlth App AccHlth App AccHlth App / All App NA

CA DADD AccHlth App AccHlth App AccHlth App / All App NA

Educator DI 1.0 AccHlth App AccHlth App AccHlth App N/A

Medical Bridge 3000 AccHlth App AccHlth App AccHlth App / All App NA

Cancer 1000 AccHlth App AccHlth App AccHlth App / All App Non-payroll App

Critical Illness 1.0 AccHlth App AccHlth App AccHlth App N/A

Critical Illness AccHlth App AccHlth App AccHlth App / All App NA

Intensive Care AccHlth App Not Scheduled AccHlth App / All App NA

Banner VSTD Group Enrollment

Form / EOI Not Scheduled Group Enrollment Form / EOI NA

DI Select DI Select App Not Scheduled DI Select App NA

Banner VGTL Not Scheduled Not Scheduled Group Enrollment Form / EOI NA

Group Supplemental Health 1000 Group Enrollment Form / EOI

GSH Enollment Form Group Enrollment Form / EOI NA

Group Cancer 1000 Group Hybrid

Enrollment Form / EOI Group Hybrid Enrollment Form / EOI Group Hybrid Enrollment Form / EOI NA Group Critical Illness 1000 Group Hybrid

Enrollment Form / EOI

Group Hybrid Enrollment Form / EOI

Group Hybrid Enrollment Form / EOI NA

Universal Life 1000 Life App 08 Not Scheduled Life App 08 / All App Non-payroll App

Whole Life 1000 Life App 08 Life App 08 Life App 08 / All App Non-payroll App

Term Life 1000 Life App 06 Life App 06 Life App 08 / All App Non-payroll App

# Medical Bridge Not Supported Not Supported AccHlth App / All App NA

# Medical Bridge 1000 Not Supported Not Supported AccHlth App / All App NA

# HI Secure Not Supported Not Supported GAP App NA

**CP97 (service only) Not Supported Not Scheduled Life GAP App 97 / Life App 92 NA

**LifeBridge (service only) Not Supported Not Scheduled GAP App / Life App 92 NA

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Knockout questions —

AccHlth and Life App 06 and 08 applications

In designing the new AccHlth and Life App 06 and 08 applications, Colonial Life faced several challenges:

• Create a simple version with knock out questions at the lower levels of coverage; do not require height and weight.

• Make the application easy to read. • Include instructions for all sections.

• Allow the producer to know at the point of sale whether coverage would be issued.

• Provide easy enrollment for products in the accident, disability and supplemental health portfolio.

Knock-out Questions at Lower Levels

To accomplish all of these goals, we needed to make the knock-out questions more restrictive at the lower levels (For example, Up to 66 ⅔ percent of income or $3,000 in monthly benefit for disability and up to level 3 for hospital confinement.)

Manual Process for submitting applications with a

“Yes” response

For these “yes” response situations, we have developed a manual process to address them:

1. Write the coverage using a paper AccHlth application.

2. Answer the appropriate health questions for the level of coverage for which the applicant is applying

3. Regardless of the level of coverage for which the applicant is applying, have the applicant answer questions:

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4. Provide health details for any “yes” answer on the application in the Health Details section of the application

5. Submit the application to the Home Office

Once the application is received in the Underwriting Department, it will be evaluated based on the five-year health history provided by the applicant. If the medical conditions and/or medications disclosed are deemed an acceptable risk, then we will issue the coverage. Otherwise, the file will be declined. It should benoted that “yes” answers to questions 4, 5, 7, D1 and D2 will in most instances result in a declination.

This process is for accounts that do not qualify for guaranteed issue or those that do not meet the minimum participation guidelines to qualify for guarantee issue. Resources on Medical Conditions

Remember, the Medical Conditions section of this guide will provide you with guidelines on whether a specific health condition is an acceptable risk. If the applicant has a borderline medical condition, the guide will provide you with the additional medical information the Underwriter will require in order to fully evaluate the particular condition.

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Height and Weight Chart for

Disability and Hospital Confinement

Height Weight (Feet and Inches)

4’ 0” 110 4’ 1” 117 4’ 2” 124 4’ 3” 131 4’ 4” 138 4’ 5” 145 4’ 6” 152 4’ 7” 159 4’ 8” 166 4’ 9” 173 4’ 10” 180 4’ 11” 185 5’ 0” 195 5’ 1” 202 5’ 2” 209 5’ 3” 216 5’ 4” 223 5’ 5” 230 5’ 6” 237 5’ 7” 243 5’ 8” 250 5’ 9” 257 5’ 10” 264 5’ 11” 271 6’ 0” 278 6’ 1” 285 6’ 2” 292 6’ 3” 300 6’ 4” 308 6’ 5” 316 6’ 6” 324 6’ 7” 332 6’ 8” 340 6’ 9” 348

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Height and Weight Chart for Critical Illness

Height Weight (Feet and Inches)

4’ 10” 187 4’ 11” 193 5’ 0” 201 5’ 1” 207 5’ 2” 215 5’ 3” 223 5’ 4” 229 5’ 5” 236 5’ 6” 243 5’ 7” 250 5’ 8” 257 5’ 9” 265 5’ 10” 271 5’ 11” 279 6’ 0” 287 6’ 1” 295 6’ 2” 302 6’ 3” 312 6’ 4” 317 6’ 5” 325 6’ 6” 334 6’ 7” 341 6’ 8” 349 6’ 9” 358

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Height and Weight Chart for Term Life 1000

Universal Life 1000 (CP10) and Whole Life 1000

Height Weight Weight

(Feet and Inches) Band 1 Face Amounts Band 2 Face Amounts Term Life 1000 (ONLY)

4’ 10” 173 187 4’ 11” 179 193 5’ 0” 186 201 5’ 1” 192 207 5’ 2” 199 215 5’ 3” 206 223 5’ 4” 212 229 5’ 5” 217 236 5’ 6” 225 243 5’ 7” 230 250 5’ 8” 238 257 5’ 9” 245 265 5’ 10” 251 271 5’ 11” 258 279 6’ 0” 265 287 6’ 1” 274 295 6’ 2” 281 302 6’ 3” 289 312 6’ 4” 297 317 6’ 5” 304 325 6’ 6” 312 334 6’ 7” 321 341 6’ 8” 328 349 6’ 9” 337 358

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Juvenile Height and Weight Chart

Ages 0 - 2 Ages 3 - 9 Ages 10 - 14 Ht Min Max Ht Min Max Ht Min Max

24” 8’ 23’ 30” 18’ 40’ 48” 44’ 92’ 26” 10’ 26’ 34” 22’ 44’ 52” 54’ 108’ 28” 13’ 31’ 38” 26’ 54’ 56” 63’ 126’ 30” 15’ 36’ 42” 32’ 64’ 60” 74’ 144’ 32” 18’ 40’ 46” 38’ 78’ 64” 87’ 166’ 34” 21’ 42’ 50” 46’ 94’ 68” 100’ 186’ 36” 23’ 45’ 54” 56’ 111’ 72” 113’ 206’ 38” 26’ 48’ 58” 66’ 128’ 76” 126’ 228’ 40” 29’ 52’

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Underwriting Life and Critical Illness

To determine insurability, the Underwriting Department underwrites all Universal Life 1000, Term Life 1000, Whole Life 1000 and Critical Illness applications using in-house information, as well as other underwriting sources as this information relates to the health questions on the application. That is, during the risk assessment process, underwriters may use claims history, previous application history, attending physician statements, pharmacology drug databases, etc.

Please note that Colonial Life’s applications are designed for simplicity. However, we must also manage risk appropriately and apply appropriate underwriting at the time an application is submitted — a standard practice throughout the insurance industry. This practice is not new; in fact, it has always been Colonial Life’s philosophy for the Universal Life 1000, Term Life 1000, Whole Life 1000 and Critical Illness products.

What does this mean to the writing sales rep? It is important that you communicate the following to each and every customer applying for Universal Life 1000, Term Life 1000 Whole Life 1000and Critical Illness products:

Even though you answer all questions as NO, your application must go through complete underwriting which includes review of previous claims and application history with Colonial Life. All Colonial Life Voluntary individual products are subject to underwriting, therefore you should disclose to the proposed insured that there is a possibility he or she may not qualify for coverage when there are health/ life style conditions present. The only exception is if the insured has guaranteed issue on the Universal Life 1000 or Term Life 1000 life products because the account has met the minimum participation guidelines.

If a medical condition is disclosed when you are taking the application information, please refer to the Medical Conditions section of this guide to determine if this condition may affect insurability. If the condition is not listed, you may call the Underwriting Department’s phone support team at 800.43.VOICE (438.6423), option 9, then extention 6210.

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Medical Conditions

Introduction

This section was developed to provide information on some of the most common health conditions along with information needed for the underwriting process. This list is not intended to be all inclusive or to provide “black and white” answers. All Colonial Life Voluntary individual products are subject to underwriting, therefore, you should disclose to the proposed insured that there is a possibility they may not qualify for coverage when there are health conditions present.

You should refer to this guide for additional information when a medical condition is disclosed. If the condition disclosed is not in this guide, at a minimum, you should provide the following information:

Diagnosis Date of diagnosis Type of treatment

Medications currently taken Degree of recovery

Amount of time lost from work

Name/address of health care provider (Dr., Hospital, etc.)

You may contact the Underwriting department regarding conditions not in this guide. However, the underwriter cannot indicate whether a health condition would be insurable until the underwriting process has been completed. Part of the underwriting process may include telephone interviews with the applicant, requesting medical records, Paramedical exams, and MIB reports.

Certain conditions may require that a signed exclusion rider be obtained in order to issue coverage. If this is necessary, an underwriting memo will be sent to the agent to obtain the signed rider.

Medical conditions that may be acceptable by themselves may constitute an uninsurable risk when there are other medical conditions present. For example, hypertension controlled by one medication may be acceptable, however, in conjunction with non-insulin dependent diabetes, would be an unacceptable risk.

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Medical Conditions

Abscess

Accident Okay to issue

Cancer Okay to issue

Critical Illness Need additional information Disability Need additional information Life Need additional information Hospital Confinement Need additional information

Information needed: - location of abscess

- date diagnosed and date of last treatment - cause

- degree of recovery - any residuals Accident

Critical Illness Okay to issue

Disability Need additional information Life Need additional information Hospital Confinement Need additional information

Information needed: - cause of injury

- date of accident and type of last treatment - when release from doctor

- if hospitalized, how many days - any residuals or loss of conscious

- any time missed from work; if yes, how long Aids / ARC

Cancer Decline, Do not submit Critical Illness Decline, Do not submit Disability Decline, Do not submit

Life Decline, Do not submit

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Alcoholism

Critical Illness Decline, Do Not Submit Disability Need additional information

Life Need additional information; submit an alcohol questionnaire Hospital Confinement Need additional information

Information needed:

- date treated and date of last treatment - date stopped drinking

- any relapses - degree of recovery

- any type of support system (i.e. AA)

** if less than 8 years treatment free do not submit application Allergies

Accident Okay to Issue

Critical Illness Okay to issue Disability Okay to issue

Life Okay to issue

Hospital Confinement Okay to issue Alzheimer’s Disease

Disability Decline, Do not submit

Hospital Confinement Decline, Do not submit Amputations

Information needed:

- reason for amputation, if other than an accident, do not submit application

- what part of the body affected - date of procedure

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Anemia

Critical Illness Need additional information Disability Need additional information

Life Need additional information

Hospital Confinement Need additional information Information needed:

- type

- any medication - underlying cause - any hospitalization - any blood transfusions - time missed from work

- cause of condition; if anxiety refer to anxiety section - smoker or non-smoker

Aneurysm

Critical Illness Decline, Do not submit Disability Need additional information Intensive Care Decline, Do not submit Life Need additional information Hospital Confinement Need additional information

Information needed: - date diagnosed - treatment received - location of bulge

- decline if diagnosed less than 5 years Angina

Critical Illness Decline, Do not submit Disability Need additional information Intensive Care Decline, Do not submit Life Need additional information Hospital Confinement Need additional information

Information needed:

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Angioplasty

Critical Illness Decline, Do not submit Disability Decline, Do not submit Intensive Care Decline, Do not submit

Hospital Confinement Decline, Do not submit Anxiety

Information needed: - date diagnosed

- frequency of attacks and severity - type treatment and date of last treatment - name of medication(s)

- any inpatient treatment or outpatient; if yes, how long - time missed from work

- cause Aortic Stenosis

Critical Illness Decline, Do not submit Disability Decline, Do not submit Intensive Care Decline, Do not submit Life Need additional information Hospital Confinement Need additional information

Information needed:

- surgically repaired, if yes, decline - date diagnosed

- severity - mild, moderate or severe - smoker or non-smoker

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Arteriosclerosis

Critical Illness Decline, Do not submit Disability Decline, Do not submit Intensive Care Decline, Do not submit Life Need additional information Hospital Confinement Need additional information

- test performed and results

- any surgery or angioplasty, do not submit - smoker or non-smoker

- height and weight Arthritis

Information needed: - date diagnosed - type arthritis - how treated

- severity (mild, moderate, severe) - any time missed from work - part of body affected

- any assistance device required; if yes, what type

** if Rheumatoid Arthritis and/or treatment includes methotraxate, Imuran, Rituxam, Chemcia, Kimeret, humira, or gold shots; do not submit disability, hospital confinement, or life applications.

Asthma

Critical Illness Need additional information **Disability Need additional information Life Need additional information Hospital Confinement Need additional information

Information needed: - date diagnosed - frequency of attacks - date of last attack

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Attention Deficit Hyperactivity Disorder

Critical Illness Okay to issue Disability Okay to issue Intensive Care Okay to issue

Life Need additional information Hospital Confinement Okay to issue

Information needed: - age diagnosed

- diagnostic severty (mild, moderate, severe) - any hospitalization

- any history of drug or alcohol abuse - list of predominant symptoms

- treatment, include any drugs prescribed - any other mental or nervous disorder - any time missed from work

Atrial Fibrillation

Critical Illness Decline, Do not submit Disability Need additional information Life Need additional information Hospital Confinement Need additional information Intensive Care Decline, Do Not Submit

Information needed:

- date diagnosed and date of last treatment

- how treated, list any medications and any devices used to treat - number of episodes

- any underlying impairments Autistic Disorder

Disability Decline, Do not submit Intensive Care Okay to issue

Life Need additional information Hospital Confinement Need additional information

Information needed: - age diagnosed - any other disorders

- any history of seizures/epilepsy - level of intellectual funcion

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Back/Neck

**Disability Need additional information

Life Okay to issue

- date diagnosed and date of last treatment - type injury (sprain/strain/rupture/herniation) - type treatment, any surgery

** if issued, may issue with signed back/neck exclusion rider Bell’s Palsy

Disability Need additional information Life Need additional information Hospital Confinement Okay to issue

Information needed:

- date diagnosed and type treatment - full recovery

- cause - residuals

- any time missed from work Biopsy

Cancer Need additional information Critical Illness Need additional information Disability Need additional information Life Need additional information Hospital Confinement Need additional information

Information needed: - date of biopsy - results of biopsy - location of biopsy

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Blood Clot (Thrombosis)

Critical Illness Decline, Do not submit Disability Decline, Do not submit

Hospital Confinement Decline, Do not submit Information needed:

- date treated - location of clot

- type treatment and medication(s) - underlying cause

- degree of recovery - any hospitalization Blood Pressure (Hypertension)

Critical Illness Need additional information Disability Dependent upon reading Intensive Care Dependent upon reading Life Need additional information Hospital Confinement Need additional information

- type treatment, medication(s) - includes diuretics - last 2 blood pressure readings and date taken - height and weight

- any inpatient treatment - any time missed from work - smoker or non-smoker

- any other health conditions such as high cholesterol or diabetes **if 3 or more meds, and applying for disability, crtical illness or hospital confinement; do not submit.

**if diabetic with hypertension; do not submit. Bone Disorder

Cancer Need additional information Critical Illness Okay to issue

Information needed:

- any prior or planned surgery - diagnosis

- part of body affected - type and date(s) of treatment

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Bone Spurs

Disability Need additional information

Life Okay to issue

- any prior or planned surgery - location of bone spur

- date diagnosed and date of last treatment - time missed from work

**if planned surgery; do not submit. Broken Bone

Life Okay to issue

- date broken - location of break - how treated, any surgery - time missed from work - released by doctor

**any surgery planned; if yes, do not submit Bronchitis

- number of episodes and date of last attack - are lungs clear between attacks

- type treatment and medication(s) - any inpatient treatment

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Burns

Information needed: - date of burn(s)

- cause and degree of burn - any prior or planned surgery - any residuals

- location of burn Bursitis / Tendonitis

Life Okay to issue

- date diagnosed and date of last treatment - location

- type treatment and medication(s) - prior episodes

- time missed from work Cancer, Internal

Cancer Decline unless treatment free for 10 years Critical Illness Need additional information

Disability Need additional information Life Need additional information Hospital Confinement Decline, Do not submit

Information needed: - date diagnosed - location of cancer - type treatment - date of last treatment - any recurrence

**do not submit for DI or Life unless 5 years treatment free. **if currently under treatment; do not submit.

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Cancer, Skin (not melanoma)

Cancer Need additional information Critical Illness Okay to issue

Disability Okay to issue

Life Okay to issue

Hospital Confinement Okay to issue Information needed:

- type skin cancer (basal cell or in-situ) - location of cancer

- type treatment

** may issue with a skin cancer exclusion rider unless 5 years treatment free Cardiomyopathy

Hospital Confinement Decline, Do not submit Carpal Tunnel Syndrome

**Disability Need additional information

Life Okay to issue

- date diagnosed

- prior or planned surgery

** if issued, may require signed carpal tunnel exclusion rider Cataracts

Information needed: - any surgery planned

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Cerebral Palsy

Disability Decline, Do not submit

Hospital Confinement Decline, Do not submit Chest Pain

Information needed:

- cause (cardiac or non-cardiac) - final diagnosis

- current medication or treatment - frequency of attacks

- degree of recovery - date of diagnosis - time missed from work - any hospitalization Cholesterol

Critical Illness Need additional information Disability Need additional information

- date diagnosed

- treatment/medications and dosage - height/weight

- last cholesterol reading including total & LDL/.HDL readings and dates taken

- any other conditions, i.e high blood pressure, diabetes - smoker or non-smoker

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Chronic Fatigue Syndrome

Information needed:

- date diagnosed and date of last treatment - time missed from work

- type treatment and medication(s) - list underlying cause and conditions - any anxiety or depression

**if hospitalized do not submit applications for disability or hospital confinement. Cirrhosis

Hospital Confinement Decline, Do not submit Colitis

Information needed: - type and cause - type treatment - number of attacks - prior or planned surgery - degree of recovery

- time missed from work or hospitalized - date last treated

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Colon Disorders

Information needed:

- date and type diagnosis

- type treatment and date of last treatment - frequency of attacks

- time missed from work or hospitalized - prior or planned surgery

- any malignancy Colostomy/Colectomy

Cancer Okay to issue if no malignancy Critical Illness Okay to issue

Disability Decline, Do not submit Life Need additional information Hospital Confinement Decline, Do not submit

Information needed: - date of procedure

- reason and findings from procedure - any further treatment

- any underlying problems or malignancy Concussion

Cancer Need additional information Critical Illness Need additional information Disability Need additional information Life Need additional information Hospital Confinement Need additional information

Information needed: - date of occurrence

- any loss of consciousness, if so how long - any residuals

Congestive Heart Failure

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COPD (Chronic obstructive pulmonary disease)

Hospital Confinement Decline, Do not submit Coronary Artery Disease

Critical Illness Decline, Do not submit Disability Decline, Do not submit Intensive Care Decline, Do not submit Life Need additional information Hospital Confinement Decline, Do not submit

Information needed:

- test performed and findings - date of procedure

- any surgery or angioplasty - smoker

- last 2 blood pressure readings Coronary Bypass Surgery

Hospital Confinement Decline, Do not submit Coronary Thrombosis

Field Underwriting Guide

Field

Underwriting

Guide

Table of Contents

About This Pamphlet…

Glossary of Terms

Underwriting Memo

Track an App for Underwriting

Transfer and Stacking

Transfer

Adding a rider to an existing policy

Service to Existing Policies

Disability:

Cancer:

Critical Illness:

Life:

Hospital Confinement:

Intensive Care:

Accident:

Special State Compliant Questions

When to use Which Application?

Knockout questions —

AccHlth and Life App 06 and 08 applications

Knock-out Questions at Lower Levels

Manual Process for submitting applications with a

“Yes” response

Height and Weight Chart for

Disability and Hospital Confinement

Height and Weight Chart for Critical Illness

Height and Weight Chart for Term Life 1000

Universal Life 1000 (CP10) and Whole Life 1000

Juvenile Height and Weight Chart

Underwriting Life and Critical Illness

Medical Conditions

Introduction

Medical Conditions