JOB AID EGTL Takeover Process - Operations DISCLAIMER: The information contained in this document is the property of Allstate Insurance Company. This document is for use by Allstate employees only. Any duplication or modification of its content is strictly prohibited. Always confirm you have the most current version of this document by visiting the authenticated content repository that supports your area. PURPOSE: Explains the process and workflows for handling EGTL takeovers EGTL Takeover Basics EGTL takeover happens when EGTL is sold to an account with an existing group life plan that is to be discontinued when Allstate Benefits issues EGTL coverage. The following general rules apply: • Target groups have 25+ full-time, active eligible W2 employees legally working and residing in the United States • Allstate Benefits contracts do not cover contract (1099) employees • EGTL is approved for employers covering their W2 employees. EGTL is not approved for associations, unions or other membership organizations Grandfathering When we take over a plan that was insured by another carrier, we are often asked to waive Evidence of Insurability (EOI) for employees or spouses who had volumes outside our Guarantee Issue limitations under the prior contract. This is called “grandfathering.” Grandfathering is an Underwriting function. Underwriting reviews the current enrollment to see if anyone falls outside the Guarantee Issue (GI) limits described in the proposal. All requests for grandfathering must be submitted to the GENELCO Underwriting team for consideration and follow the requirements below: • Submit a copy of the proposal as well as a copy of the current enrollment under the prior carrier • Include the required data elements as outlined in Step 1 of this job aid • Enrollment should be submitted as an Excel spreadsheet or, for groups with fewer than 100 enrolled employees, the underwriter can work from a PDF of a recent bill Allstate Benefits may accept some, but not all, grandfathering situations, so negotiation should happen during the proposal process. Potential obstacles for grandfathering include, but are not limited to: • Employees insured for an amount greater than the GI limit offered in the AB proposal • Employees insured for amount greater than three times their annual earnings • Spouse benefits that exceed 50% of the employee benefit • Spouse benefits that exceed the maximum amount stated in the AB proposal Revised 9/18/2017 Page 1 of 11 EGTL Takeover Process - Operations JOB AID EGTL Takeover Process - Operations EGTL Enrollment Specifics • Passive Enrollment/Rollover In a Passive Enrollment, employees are enrolled under the Allstate Benefits contract with the same volume they had under the prior contract. This method works if all coverages are under the GI limit or if grandfathering is approved by Underwriting o Passive Rollover is often used when AB takes over an employer-paid plan where the current benefits are the same that AB is offering o Passive Rollover is possible with a voluntary plan only if AB takes over the contract prior to the group’s open enrollment date o Passive Enrollments cannot be used with groups sitused in Florida, Kentucky, Louisiana, Missouri, Montana, North Carolina, New Hampshire or Virginia due to state requirements • Active Enrollment In an Active Enrollment, all employees, currently enrolled or not, make an active coverage choice o If grandfathering is approved by Underwriting, employees with prior carrier coverage will be grandfathered for Guaranteed Issue up to the limit set by Underwriting • Mix (Passive/Active) In a Mixed Enrollment, employees are given the option of choosing new coverage or rolling over existing coverage levels to the new group policy EGTL Process Flow Revised 9/18/2017 Page 2 of 11 EGTL Takeover Process - Operations JOB AID EGTL Takeover Process - Operations Sales Team 1. The sales team submits a quote request via AIM All required documentation must be uploaded to the Documents tab of the Opportunity Verify the return email address in AIM is where the quote should be delivered The enrollment engagement level must be established and communicated with the Underwriting request Determine if the request is for New or Takeover Business: • If the request is for voluntary Life and the employer does not currently have voluntary Life, the request is considered New Business • If the employer has a voluntary Life plan, the request is considered a Takeover • Voluntary Life and employer-paid Life are treated as different products when determining if the request is for New or Takeover business, even though both are Group Term Life products. If you are requesting a voluntary Life plan and the employer currently has no voluntary Life plan, the request is considered as New Business, although the employer may have an employer-paid Life plan Include the following information in your quote request: For New Business 1. The corporate name and address of the employer to be quoted 2. The agent’s name as you want it to appear on the proposal 3. The commission percentage to be included 4. A description of the benefits to be provided 5. The requested effective date of coverage 6. The date the proposal is due back to the requestor 7. A census of the eligible group, including: - Gender - Date of Birth or Age - Volume of insurance - If benefits vary between classes, census must show each employee’s class For Takeover Business • Takeover groups with fewer than 500 eligible employees 1. Provide the same information required for new business (above) 2. Provide a copy of the current contract and/or certificate • Takeover groups with 500 to 1,000 eligible employees 1. Provide the same information required for new business (above) 2. Provide a copy of the current contract and/or certificate 3. Provide experience for the last 3-5 years (not required, but yields better rates) • Takeover groups with 1,000+ eligible employees 1. Provide the same information required for new business (above) 2. Provide a copy of the current contract and/or certificate 3. Provide experience for the last 3-5 years (required for groups larger than 1,000 eligible lives) Revised 9/18/2017 Page 3 of 11 EGTL Takeover Process - Operations JOB AID EGTL Takeover Process - Operations For Takeover Business with Grandfathering 1. Provide the same information required for takeover business (above) 2. Provide an electronic version of the current carrier’s bill that includes: - Itemized deductions for each employee currently enrolled in group voluntary term Life coverage - First and last name of employee - Gender of employee - Coverage amounts for each employee and dependent(s) Experience Experience information is helpful to Underwriting on groups of 500+ employees, but is required for groups of 1,000+ employees. Experience includes: • Three to five years of paid premiums. Show separate premiums for: o Employer-paid Life o Voluntary Life o AD&D Premium reports provided by incumbent carriers are typically broken out this way • Three to Five years of paid claims. Show separate claims experience for: o Employer-paid Life o Voluntary Life o AD&D • Provide current rates for: o Employer-paid Life o Employer-paid AD&D o Voluntary Life o Voluntary AD&D If the rates have changed in the past three years, Underwriting requires the effective date of the rate change as well as the prior rate information • Include a Disabled Lives Census showing all employees currently insured under the group Life plan that are not actively at work. Include: o Name o Gender o Date of Birth o Volume of insurance o Diagnosis or reason for not being actively at work Revised 9/18/2017 Page 4 of 11 EGTL Takeover Process - Operations JOB AID EGTL Takeover Process - Operations Underwriting 2. Underwriting completes the quote/proposal and returns it to the original submitter • The Quote/Proposal needs to include the takeover maximum if grandfathering is approved • Rate appeals are submitted in AIM and require a two-day turnaround Turnaround Times for Underwriting Proposals • Groups with 25 – 499 eligible lives: ... 2 business days after receipt of all necessary information • Groups with 500 – 999 eligible lives: . 2 - 3 business days after receipt of all necessary information • Groups with 1,000+ eligible lives: ....... 3 - 5 business days after receipt of all necessary information Sales Team 3. Requester reviews and provides the proposal to the sales lead (if sales lead is not the requester) NOTE: If the client is a National Account, the National Account team adds the proposal to the Proposal package, which includes a cover letter from the sales lead as well as the proposals for any other products requested Turnaround Times for National Accounts Implementation Teams • Standard proposal: ...... 2 business days after all necessary information received • Custom proposal: ........ 5 business days after all necessary information received • Standard RFP: .............. 3 - 5 business days after all necessary information received • Non-Standard RFP: ...... 5 - 7 business days after all necessary information received • Complex RFP: .............. 7 - 10 business days after all necessary information received NOTE: Turnaround times for National Accounts team are based on the date requests are received and include time for Underwriting to deliver the proposal (Step 1, above) 4. Sales lead presents the proposal to the client 5. When the client accepts the proposal, the sales team sends the initial Sold Case notification via AIM to the Home Office and includes: • The completed and