We plan to post the April 2003 Internet monthly update to our five monthly update websites on Thursday, March 27th.

The April 2003 disk update will be processed Thursday, March 27th and Friday, March 28th.

Disks will be shipped Friday, March 28th. You should have the April Update in your office by Monday, March 31st. Unless you have made arrangements to purchase your diskettes, please return your February disks ONLY AFTER you have successfully installed this March 2003 Update. February disks are your backup in case you should have problems installing the February edition.

IMPORTANT NOTE: Subscribers who are receiving disks can save up to $80 per year by switching to updates by Internet. Please read the last part of this bulletin for full details.

Multi-life is a term that has been used by the life insurance industry for many years. Multi-life refers to the purchase of two life insurance polices from the same life insurance company, where some form of discount or reduction in premium has been given in recognition of single billing. For the majority of companies that offer this premium discount, the reduction usually amounts to the elimination of a policy fee from one of the policies.

Under multi-life, unlike joint life first-to-die, there are two individual insurance coverages not one. This means that if both clients die there are two death benefits. If one client dies the second policy can usually be continued although companies generally reserve the right to add back in the policy fee. Also, unlike joint life first-to-die coverage, the face amounts of the two individual coverages can be different.

To run a multi-life insurance comparison or quotation you will need to enter the two individuals into the "Enter Client Information" screen. These will be entered as "Client 1" and "Client 2". When you run a comparison, go to the option menu at the top of the "Display Product Comparison" screen and select one of the two multi-life options.

If Client 1 and Client 2 are husband and wife, you should use the "Multi-life (Discount#/Spouse)". Some companies allow a discount for a husband and wife, but may not allow it for business partners. Therefore, to ensure that you see the discount for a husband and wife, use the "Spouse" option.

It is also important to note that not all companies offer a discount for buying two policies on a husband and wife. That is what the "Discount#" reference is referring to. When you print the comparison, or when you "Display Single Product" by double clicking on a company in the comparison results, a "#" (pound symbol) will appear next to the age if the premiums shown next to that age have been reduced because of a discount. If there is no "#" symbol, there was no reduction in premiums and what you are effectively looking at is the total premiums for two individual policies.

In many cases the least expensive way for the husband and wife to purchase insurance is to buy from two different and separate life companies. This tends to be more true as the face amounts of the two policies become larger.

In order to make it easier to quote the two individual policies for the two clients that you have entered as Client 1 and Client 2, Compulife has now modified the "Switch Client" button which appears on the "Enter Client Information" window. The same modified button has now been added to the Display Product Comparison window.

You will also notice some changes to the Enter Client Information window to make the 5 client cards (pages) appear unique from the balance of the information that is entered and modified on the Client Entry window. Each card can be completed for a different person, and those can be switched with Client 1, which is the client the system uses when running comparisons and quotes.

The Switch Client button on the Display Product Comparison window now lets you switch between Client 1 and any other client right at the comparison level. When the other client is clicked on, the comparison will automatically re-display a comparison for that selected person.

This works very nicely if you are trying to compare the multi-life comparison, with the option of simply buying two individual policies from two different companies.

For example, having entered the husband and wife as Client 1 and Client 2, you can now run a comparison with the multi-life option on. Note the total premium for the least expensive company. Next, run the comparison with the multi-life option off. This will give you the lowest priced company for Client 1; note that. Next click on the "Switch Client" button which appears above the "Multiple Category" button. The Switch Client window will appear showing the other 4 clients that have been entered in the "Enter Client Information" screen. Click on the first client button in the list (that's client 2) and the comparison will immediately recalculate for the second person. Note that premium.

You can now total the two best individual premiums and compare that total with the best premium found using the multi-life comparison. This will tell you whether the clients are better to purchase from one company or two separate companies. Having said that, many consumers will prefer having only one company to deal with versus two. This will simplify future service and administration.

NOTE: Because the "Enter Client Information" windows has grown a little in size, you may find you now have scroll bars on the window. There are two ways to fix that:

You can resize the windows by clicking on the bottom right corner and dragging that corner until the windows is large enough to eliminate the bars.

Alternately, at the top of the red Master Menu, you can click on "Options" and then "Reset Defaults". When you do so, the system will be set up and configured to the look and feel we think is best for optimum performance.

Apart from this improvement the changes that we have made to the multi- life option now allow the premium for the least expensive premium category for the first client, to be combined with the premium for the least expensive premium category for the second client. Prior to this, and this is how it still works in DOS, the program could only look at premiums contained within the same product entry. Because preferred plus non-smoker premiums are often contained in a separate product entry, they could not be combined with categories such as preferred or regular non-smoker, or preferred or regular smoker.

That problem still exists in the DOS version but has been completely solved in the Windows program.

In addition, the specific categories used for each client can be further adjusted in the new Windows program. This is particularly important for companies that have multiple preferred plus or multiple preferred categories.

For example, assume that the first client is a preferred plus non- smoker and that the company has two such categories. With the new multi-life option the system will now search for the least expensive preferred plus premium to combine with the second person. But suppose that you want to use the next higher preferred plus premium for that company. To do this you double click on the product in the comparison window. The "Display Single Product" windows appears. Under the name of the product in that window there is a "drop down box" which says "Multi-life Total Premiums (Spouse)". If you click on the down button to the right of that, you will see the two individual clients on top of the list. Click on the client that you want to adjust. With that client on screen, click on the "Rate Category" button that now appears in the header. Change the current premium to whatever premium category that you want. Your individual product is now based upon this category for that client. The total premium will be that individual premium combined with the premium for the second client. If you wish you can also adjust the second client by switching to that client and again pressing the rate category button.

When you have the premiums set to your satisfaction, you can now print that individual company quote.

Our next effort will be to allow you to file that multi-life quote into Pick 12.

Currently Pick 12 allows the premiums for only one person. When the next step is completed Pick 12 will have the ability to display the total premiums for two people. You will also be able to view and print the individual premiums for each of the two people.

Effectively this will give you a comparison of multiple companies using the multi-life function, where each of the multiple companies has the exact combination of premium categories that you believe each person can qualify for.

These features will appear in next new version of the Windows program. We have no intention of implementing any of these improvements into the DOS program. Once again, while we have no plans to eliminate our DOS software, and will keep it compatible with our database, the DOS program is falling further and further behind the Windows software in capability. That will also hold true for the new Health Analyzer option.

Once the Pick 12 multi-life option is completed, we will go back to the comparison and allow the comparison of up to a total of 5 individual on a multi-life basis. As we mentioned earlier, some companies allow the discount for husband and wife, but not for business partners. Many that do allow the discount for business partners, will allow the discount for more than 2 partners. The multi-life comparison button for non-spouse will eventually ask how many of the clients to do the comparison for, and give total premiums for that group. And yes, you will be able to file that group of 2, 3, 4 or 5 individuals into the Pick 12. Once this function is completed, multi-life will be wrapped up.

The initial version of the data entry module, which we use to store the category criteria for each company/product/class of risk, is now completed. During the course of entering data for each company into the Health data file, we have made several improvements to the data entry function.

We have now completed entering the health criteria for the following companies:

Ameritas
Banner Life
Bankers Life
Federal Kemper Life
Fidelity Life Association
First Ameritas of NY
First Colony Life
GE Capital
Indianapolis Life
Old Republic
Penn Mutual
Pruco Life
Pruco Life of NJ
Transamerica
United of Omaha
William Penn
Zurich Life

We would like to stop and thank each of these companies for their assistance in providing their health category criteria.

Now that we have a fully functioning health data file in hand, our programmers are now focusing their attention on integrating that data file into the quotation program. This should be ready for introduction some time in March or April.

If a company you routinely use is not included in the above list, your help in communicating with the company would be appreciated. It is obvious that they have not yet responded to our e-mail request and so any encouragement from you, to send their health criteria to us, would be appreciated.

Alternately, if you have a copy of the current criteria used by the company, we would appreciate receiving that from you.

During the second week of December the following e-mail was sent to each life company that Compulife has received assistance from during the past two years:

Compulife to introduce "Health Analyzer" option

Early in 2003 Compulife intends to introduce a new option to our insurance comparison software. The option will be provided in the Windows based software which we market to insurance agents. The agent will enter a client's information as they do now, selecting the existing smoking and preferred status of their client. If the new Health Analyzer option is not used, comparisons will continue to be based upon the basic client information, just as they are now.

To use the new option the agent will click a new button called "Health Analyzer". This will allow the entry of additional details regarding the client. This additional information will be analyzed during the comparison process and products will be flagged "GO" or "NO GO" based upon the results.

IMPORTANT: The new information will not remove or eliminate products that are currently quoted based upon the smoking and preferred health information. As noted above, products will be flagged as "GO" or "NO GO".

The initial health analysis areas will be:

Smoking/Tobacco Use

Height/Weight Tables

Blood Pressure

Cholesterol

Driving History

Family History

Hazardous Sports and Occupations (including pilot)

When the Health Analyzer button is selected the agent will be able to check any OR all of the above areas. The agent will then move on to the related questionnaires that will examine each area that was selected. Only those areas selected will be considered in the final "GO" or "NO GO" decision.

For example, if the agent wishes to locate policies that permit cigars, then they would simply invoke the "Smoking/Tobacco Use" option and answer just questions related to cigars.

Once the the selected questionnaires have been completed, the client entry screen will reappear. Providing that the client's age, sex, smoking and preferred status are not altered after the client entry window is closed, the results of the questionnaire will be retained. Quotes run for that client will be the subject of the Health Analyzer option.

If Health Analyzer is selected, comparisons will display a new column next to the premium results. The new column will display one of three indicators:

1. A Green shaded circle with a check mark. This is a "GO".

2. A Red shaded circle with an X. This is a "NO GO".

3. Nothing. This indicates that we lack the company information needed to make a decision.

Green for "GO" - Premium and health categories that meet the additional criteria which was entered by the agent will be flagged green for "GO". Based upon the information that was entered by the agent, and based upon the information on file for the company's product and health category, the premium (for that health category) will be flagged green indicating the premium should be available for the client.

Red for "NO GO". A red dot will indicate that one or more of the client's health criteria were outside the company's tables. The agent will be able to click on the red dot to discover what criteria caused the red dot to appear. If the agent has any questions they can contact the Home Office or General Agent.

No indication means that we do not have the company's product and health category information. Because of that we cannot make a decision.

We do not expect that every company will cooperate in the provision of this health criteria information. For that reason we do not wish to eliminate a company's result from the agent's view. That is why premiums will still be quoted even though we cannot give a green or red indication.

Please understand that there has been a growing demand for a feature like this in our software. With the completion of many of the new options planned for our Windows software, we are in a position to tackle a significant new project like "Health Analyzer".

Having given the issue significant consideration, we believe that this approach is the best way to meet the demand. Given that this demand does exist, we would encourage life companies to give serious consideration to providing us with their health (including smoking) criteria so that we can properly include the corresponding tables in our Health Analyzer database.

We believe that agents will appreciate having this additional information about your products. If an agent's client has a health related issue that is less than perfect, we believe that products with green dots will attract the agent's attention. For that reason, giving us your health requirement criteria will be a tangible way to attract an agent's attention to your term products.

Please e-mail me your current health criteria / health category information at barneyrl@concentric.net. Alternately you can fax the material to me at (859) 885-3988.

If you should have any questions, comments or suggestions, I would appreciate hearing from you. Feel free to call me toll-free at (800) 798-3488.

Bob Barney
President
Compulife Software, Inc.