Common use of PERSISTENCY BONUS Clause in Contracts

PERSISTENCY BONUS. A. Bonus will be paid to qualified Broker/Agent only and will be calculated using all Group lines of Insurer business. Broker/Agent has the right to opt out of any bonus program. B. Medical contracts from all Group lines-of-business will be combined to meet minimum qualifying threshold for bonus calculations. No retroactivity will be applied to either the Broker/Agent Fee or Bonus based on the assignment of business during the year. C. Qualified contracts are contracts associated with Insurer paid premiums for qualified accounts. Qualified medical contracts will not include, nor will any bonus be calculated, on any premium or contracts from combined blocks of business originating from separate Brokers, Brokerages, Agents or Agencies. D. The Persistency Bonus is payable only on eligible Group contracts. Group contracts include medical as well as Group Medicare Supplemental and includes self-employed business as determined by Insurer. All Group contracts count towards Persistency Bonus calculation. E. Qualified medical contracts do not include contracts on an account that the Broker/Agent has chosen to waive fees/compensation from Insurer, unless approved in writing by Insurer’s Senior Vice President of Sales. When fees/commissions from Insurer are waived, Broker/Agent is not eligible for bonus payments on these contracts, although they are still counted in the total block of business. F. Any 51+ Business: Broker/Agent must receive commissions from Insurer >1% but <3.5% to be Bonus eligible. Contracts are used in the contract count to calculate net contract Persistency Ratio. However, because the Broker/Agent has chosen to waive compensation, these contracts are not used in the calculation of the Bonus (i.e. PCPM Bonus Rate.) G. Contracts for an account related to a consultant arrangement do not qualify towards the calculation of the net contract Persistency Ratio. H. Broker/Agent must have at least five (5) Groups or two (2) Groups with five-hundred (500) lives to qualify for Persistency Bonus regardless of Group size. I. Broker/Agent with 10,000 medical contracts as of 12/31/2012 will achieve a “Platinum Status” 1. Platinum Account Status includes: a. A new Persistency Level 0f 92.5-94.9% paid at $60 per eligible medical Contract b. Cap eligible medical contract gains and losses at 750 contacts c. Must be bonus eligible for 2012 to be included J. Exceptions and decisions regarding qualified contracts can only be approved by Insurer’s Senior Vice President of Sales for Insurer. Any such agreements must be obtained and specified in a written approval directly from Insurer’s Senior Vice President of Sales. K. Network lease and shared processing arrangements are excluded from Bonus calculations. L. For NCAS/CFA business, the following will apply: 1. Applicable only to 51+ NCAS/CFA business 2. Insurer paid contracts associated with the following will qualify for and will be included in the Persistency Bonus calculation: a. Paid administrative fees to Insurer/NCAS/CFA. b. Add on Commission to administrative fee must be paid to Broker/Agent by Insurer/NCAS/CFA. Excludes stop loss commission paid by preferred stop loss vendor, but remitted by Insurer/NCAS/TPA to broker. c. Paid premium associated with stop loss issued by the Insurer or stop loss issued by Insurer’s preferred stop loss vendors as of December 31, 2012. Accounts electing no stop loss coverage, contracts will be included in bonus calculation. 3. Loss of Groups and accompanying contracts are included in the Persistency Ratio calculations.

PERSISTENCY BONUS. A. Bonus will be paid to qualified Broker/Agent only and will be calculated using all Group lines of Insurer business. Broker/Agent has the right to opt out of any bonus program. B. Medical contracts from all Group lines-of-business will be combined to meet minimum qualifying threshold for bonus calculations. No retroactivity will be applied to either the Broker/Agent Fee or Bonus based on the assignment of business during the year. C. Qualified contracts are contracts associated with Insurer paid premiums for qualified accounts. Qualified medical contracts will not include, nor will any bonus be calculated, on any premium or contracts from combined blocks of business originating from separate Brokers, Brokerages, Agents or Agencies. D. The Persistency Bonus is payable only on eligible Group contracts. Group contracts include medical as well as Group Medicare Supplemental and includes self-employed business as determined by Insurer. All Group contracts count towards Persistency Bonus calculation. E. Qualified medical contracts do not include contracts on an account that the Broker/Agent has chosen to waive fees/compensation from Insurer, unless approved in writing by Insurer’s Senior Vice President of Sales. When fees/commissions from Insurer are waived, Broker/Agent is not eligible for bonus payments on these contracts, although they are still counted in the total block of business. F. Any 51+ Business: Broker/Agent must receive commissions from Insurer >1% but <3.5% to be Bonus eligible. Contracts are used in the contract count to calculate net contract Persistency Ratio. However, because the Broker/Agent has chosen to waive compensation, these contracts are not used in the calculation of the Bonus (i.e. PCPM Bonus Rate.) G. Contracts for an account related to a consultant arrangement do not qualify towards the calculation of the net contract Persistency Ratio. H. Broker/Agent must have at least five (5) Groups or two (2) Groups with five-hundred (500) lives to qualify for Persistency Bonus regardless of Group size. I. Broker/Agent with 10,000 medical contracts as of 12/31/2012 will achieve a “Platinum Status” 1. Platinum Account Status includes: a. A new Persistency Level 0f 92.5-94.9% paid at $60 per eligible medical Contract b. Cap eligible medical contract gains and losses at 750 contacts c. Must be bonus eligible for 2012 to be included J. Exceptions and decisions regarding qualified contracts can only be approved by Insurer’s Senior Vice President of Sales for Insurer. Any such agreements must be obtained and specified in a written approval directly from Insurer’s Senior Vice President of Sales. K. J. Network lease and shared processing arrangements are excluded from Bonus calculations. L. K. For NCAS/CFA business, the following will apply: 1. Applicable only to 51+ NCAS/CFA business; 2. Insurer paid contracts associated with the following will qualify for and will be included in the Persistency Bonus calculation: a. Paid administrative fees to Insurer/NCAS/CFA.CFA and b. Add on Commission to administrative fee must be paid to Broker/Agent by Insurer/NCAS/CFA. Excludes stop loss commission paid by preferred stop loss vendor, but remitted by Insurer/NCAS/TPA to broker. c. Paid premium associated with Insurer issued stop loss issued by the Insurer or stop loss issued by Insurer’s preferred stop loss vendors as of December 31, 2012. Accounts electing no stop loss coverage, contracts will be included in bonus calculationvendor. 3. Loss of Groups and accompanying contracts are included in the Persistency Ratio calculations.

PERSISTENCY BONUS. A. Bonus will be paid to qualified Broker/Agent only and will be calculated using all Group lines of Insurer business. Broker/Agent has the right to opt out of any bonus program. B. Medical contracts from all Group lines-of-business will be combined to meet minimum qualifying threshold for bonus calculations. No retroactivity will be applied to either the Broker/Agent Fee or Bonus based on the assignment of business during the year. C. Qualified contracts are contracts associated with Insurer paid premiums for qualified accounts. Qualified medical contracts will not include, nor will any bonus be calculated, on any premium or contracts from combined blocks of business originating from separate Brokers, Brokerages, Agents or Agencies. D. The Persistency Bonus is payable only on eligible Group contracts. Group contracts include medical as well as Group Medicare Supplemental and includes self-employed business as determined by Insurer. All Group contracts count towards Persistency Bonus calculation. E. Qualified medical contracts do not include contracts on an account that the Broker/Agent has chosen to waive fees/compensation from Insurer, unless approved in writing by Insurer’s Senior Vice President of Sales. When fees/commissions from Insurer are waived, Broker/Agent is not eligible for bonus payments on these contracts, although they are still counted in the total block of business. F. Any 51+ Business: Broker/Agent must receive commissions from Insurer >1% but <3.5% to be Bonus eligible. Contracts are used in the contract count to calculate net contract Persistency Ratio. However, because the Broker/Agent has chosen to waive compensation, these contracts are not used in the calculation of the Bonus (i.e. PCPM Bonus Rate.) G. Contracts for an account related to a consultant arrangement do not qualify towards the calculation of the net contract Persistency Ratio. H. BrokerX. Xxxxxx/Agent must have at least five (5) Groups or two (2) Groups with five-hundred (500) lives to qualify for Persistency Bonus regardless of Group size. I. BrokerX. Xxxxxx/Agent with 10,000 medical contracts as of 12/31/2012 will achieve a “Platinum Status” 1. Platinum Account Status includes: a. A new Persistency Level 0f 92.5-94.9% paid at $60 per eligible medical Contract b. Cap eligible medical contract gains and losses at 750 contacts c. Must be bonus eligible for 2012 to be included J. Exceptions and decisions regarding qualified contracts can only be approved by Insurer’s Senior Vice President of Sales for Insurer. Any such agreements must be obtained and specified in a written approval directly from Insurer’s Senior Vice President of Sales. K. Network lease and shared processing arrangements are excluded from Bonus calculations. L. For NCAS/CFA business, the following will apply: 1. Applicable only to 51+ NCAS/CFA business 2. Insurer paid contracts associated with the following will qualify for and will be included in the Persistency Bonus calculation: a. Paid administrative fees to Insurer/NCAS/CFA. b. Add on Commission to administrative fee must be paid to Broker/Agent by Insurer/NCAS/CFA. Excludes stop loss commission paid by preferred stop loss vendor, but remitted by Insurer/NCAS/TPA to broker. c. Paid premium associated with stop loss issued by the Insurer or stop loss issued by Insurer’s preferred stop loss vendors as of December 31, 2012. Accounts electing no stop loss coverage, contracts will be included in bonus calculation. 3. Loss of Groups and accompanying contracts are included in the Persistency Ratio calculations.

PERSISTENCY BONUS. A. Bonus will be paid to qualified Broker/Agent only and will be calculated using all Group lines of Insurer business. Broker/Agent has the right to opt out of any bonus program. B. Medical contracts from all Group lines-of-business will be combined to meet minimum qualifying threshold for bonus calculations. No retroactivity will be applied to either the Broker/Agent Fee or Bonus based on the assignment of business during the year. C. Qualified contracts are contracts associated with Insurer paid premiums for qualified accounts. Qualified medical contracts will not include, nor will any bonus be calculated, on any premium or contracts from combined blocks of business originating from separate Brokers, Brokerages, Agents or Agencies. D. The Persistency Bonus is payable only on eligible Group contracts. Group contracts include medical as well as Group Medicare Supplemental and includes self-employed business as determined by Insurer. All Group contracts count towards Persistency Bonus calculation. E. Qualified medical contracts do not include contracts on an account that the Broker/Agent has chosen to waive fees/compensation from Insurer, unless approved in writing by Insurer’s Senior Vice President of Sales. When fees/commissions from Insurer are waived, Broker/Agent is not eligible for bonus payments on these contracts, although they are still counted in the total block of business. F. Any 51+ Business: Broker/Agent must receive commissions from Insurer >1% but <3.55.0% to be Bonus eligible. Contracts are used in the contract count to calculate net contract Persistency Ratio. However, because the Broker/Agent has chosen to waive compensation, these contracts are not used in the calculation of the Bonus (i.e. PCPM Bonus Rate.) G. Contracts for an account related to a consultant arrangement do not qualify towards the calculation of the net contract Persistency Ratio. H. Broker/Agent must have at least five (5) Groups or two (2) Groups with five-hundred (500) lives to qualify for Persistency Bonus regardless of Group size. I. Broker/Agent with 10,000 medical contracts as of 12/31/2012 will achieve a “Platinum Status” 1. Platinum Account Status includes: a. A new Persistency Level 0f 92.5-94.9% paid at $60 per eligible medical Contract b. Cap eligible medical contract gains and losses at 750 contacts c. Must be bonus eligible for 2012 to be included J. Exceptions and decisions regarding qualified contracts can only be approved by Insurer’s Senior Vice President of Sales for Insurer. Any such agreements must be obtained and specified in a written approval directly from Insurer’s Senior Vice President of Sales. K. Network lease and shared processing arrangements are excluded from Bonus calculations. L. For NCAS/CFA business, the following will apply: 1. Applicable only to 51+ NCAS/CFA business 2. Insurer paid contracts associated with the following will qualify for and will be included in the Persistency Bonus calculation: a. Paid administrative fees to Insurer/NCAS/CFA. b. Add on Commission to administrative fee must be paid to Broker/Agent by Insurer/NCAS/CFA. Excludes stop loss commission paid by preferred stop loss vendor, but remitted by Insurer/NCAS/TPA to broker. c. Paid premium associated with stop loss issued by the Insurer or stop loss issued by Insurer’s preferred stop loss vendors as of December 31, 2012. Accounts electing no stop loss coverage, contracts will be included in bonus calculation. 3. Loss of Groups and accompanying contracts are included in the Persistency Ratio calculations.

PERSISTENCY BONUS. A. Bonus will be paid to qualified Broker/Agent only and will be calculated using all Group lines of Insurer business. Broker/Agent has the right to opt out of any bonus program. B. Medical contracts from all Group lines-of-business will be combined to meet minimum qualifying threshold for bonus calculations. No retroactivity will be applied to either the Broker/Agent Fee or Bonus based on the assignment of business during the year. C. Qualified contracts are contracts associated with Insurer paid premiums for qualified accounts. Qualified medical contracts will not include, nor will any bonus be calculated, on any premium or contracts from combined blocks of business originating from separate Brokers, Brokerages, Agents or Agencies. D. The Persistency Bonus is payable only on eligible Group contracts. Group contracts include medical as well as Group Medicare Supplemental and includes self-employed business as determined by Insurer. All Group contracts count towards Persistency Bonus calculation. E. Qualified medical contracts do not include contracts on an account that the Broker/Agent has chosen to waive fees/compensation from Insurer, unless approved in writing by Insurer’s Senior Vice President of Sales. When fees/commissions from Insurer are waived, Broker/Agent is not eligible for bonus payments on these contracts, although they are still counted in the total block of business. F. Any 51+ Business: Broker/Agent must receive commissions from Insurer >1% but <3.5% to be Bonus eligible. Contracts are used in the contract count to calculate net contract Persistency Ratio. However, because the Broker/Agent has chosen to waive compensation, these contracts are not used in the calculation of the Bonus Payment (i.e. PCPM Bonus RateRate)but, Contracts are used in the contract count to calculate net contract Persistency Ratio.) G. Contracts for an account related to a consultant arrangement do not qualify towards the calculation of the net contract Persistency Ratio. H. Broker/Agent must have at least five (5) Groups or two (2) Groups with five-hundred (500) lives to qualify for Persistency Bonus regardless of Group size. I. Broker/Agent with 10,000 medical contracts as of 12/31/2012 will achieve a “Platinum Status” 1. Platinum Account Status includes: a. A new Persistency Level 0f 92.5-94.9% paid at $60 per eligible medical Contract b. Cap eligible medical contract gains and losses at 750 contacts c. Must be bonus eligible for 2012 to be included J. Exceptions and decisions regarding qualified contracts can only be approved by Insurer’s Senior Vice President of Sales for Insurer. Any such agreements must be obtained and specified in a written approval directly from Insurer’s Senior Vice President of Sales. K. J. Network lease and shared processing arrangements are excluded from Bonus calculations. L. K. For NCAS/CFA business, the following will apply: 1. Applicable only to 51+ NCAS/CFA business; 2. Insurer paid contracts associated with the following will qualify for and will be included in the Persistency Bonus calculation: a. Paid administrative fees to Insurer/NCAS/CFA. b. Add on Commission to administrative fee must be paid to Broker/Agent by Insurer/NCAS/CFA. Excludes stop loss commission paid by preferred stop loss vendor, but remitted by Insurer/NCAS/TPA to broker. c. Paid premium associated with stop loss issued by the Insurer or stop loss issued by Insurer’s NCAS/CFA preferred stop loss vendors as of December 31, 2012. Accounts electing no stop loss coverage, contracts will be included in bonus calculationvendors. 3. Loss of Groups and accompanying contracts are included in the Persistency Ratio calculations.

PERSISTENCY BONUS. A. Bonus will be paid to qualified Broker/Agent only and will be calculated using all Group lines of Insurer business. Broker/Agent has the right to opt out of any bonus program. B. Medical contracts from all Group lines-of-business will be combined to meet minimum qualifying threshold for bonus calculations. No retroactivity will be applied to either the Broker/Agent Fee or Bonus based on the assignment of business during the year. C. Qualified contracts are contracts associated with Insurer paid premiums for qualified accounts. Qualified medical contracts will not include, nor will any bonus be calculated, on any premium or contracts from combined blocks of business originating from separate Brokers, Brokerages, Agents or Agencies. D. The Persistency Bonus is payable only on eligible Group contracts. Group contracts include medical as well as Group Medicare Supplemental and includes self-employed business as determined by Insurer. All Group contracts count towards Persistency Bonus calculation. E. Qualified medical contracts do not include contracts on an account that the Broker/Agent has chosen to waive fees/compensation from Insurer, unless approved in writing by Insurer’s Senior Vice President of SalesStrategic Marketing. When fees/commissions from Insurer are waived, Broker/Agent is not eligible for bonus payments on these contracts, although they are still counted in the total block of business. F. Any 51+ Business: Broker/Agent must receive commissions from Insurer >1% but <3.55.0% to be Bonus eligible. Contracts are used in the contract count to calculate net contract Persistency Ratio. However, because the Broker/Agent has chosen to waive compensation, these contracts are not used in the calculation of the Bonus (i.e. PCPM Bonus Rate.) G. Contracts for an account related to a consultant arrangement do not qualify towards the calculation of the net contract Persistency Ratio. H. Broker/Agent must have at least five (5) Groups or two (2) Groups with five-hundred (500) lives to qualify for Persistency Bonus regardless of Group size. I. Broker/Agent with 10,000 medical contracts as of 12/31/2012 will achieve a “Platinum Status” 1. Platinum Account Status includes: a. A new Persistency Level 0f 92.5-94.9% paid at $60 per eligible medical Contract b. Cap eligible medical contract gains and losses at 750 contacts c. Must be bonus eligible for 2012 to be included J. Exceptions and decisions regarding qualified contracts can only be approved by Insurer’s Senior Vice President of Sales for Insurer. Any such agreements must be obtained and specified in a written approval directly from Insurer’s Senior Vice President of Sales. K. Network lease and shared processing arrangements are excluded from Bonus calculations. L. For NCAS/CFA business, the following will apply: 1. Applicable only to 51+ NCAS/CFA business 2. Insurer paid contracts associated with the following will qualify for and will be included in the Persistency Bonus calculation: a. Paid administrative fees to Insurer/NCAS/CFA. b. Add on Commission to administrative fee must be paid to Broker/Agent by Insurer/NCAS/CFA. Excludes stop loss commission paid by preferred stop loss vendor, but remitted by Insurer/NCAS/TPA to broker. c. Paid premium associated with stop loss issued by the Insurer or stop loss issued by Insurer’s preferred stop loss vendors as of December 31, 2012. Accounts electing no stop loss coverage, contracts will be included in bonus calculation. 3. Loss of Groups and accompanying contracts are included in the Persistency Ratio calculations.