U.S. Update News

April 2003

COMPULIFE® Software, Inc.

We plan to post the May 2003 Internet monthly update to our five monthly update websites on Friday, April 25th.

The May 2003 disk update will be processed Friday, April 25th and Monday, April 28th.

Disks will be shipped Monday, April 28th. You should have the May Update in your office by Wednesday, April 30th. Unless you have made arrangements to purchase your diskettes, please return your March disks ONLY AFTER you have successfully installed this April 2003 Update. March disks are your backup in case you should have problems installing the April 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.

Health Analyzer Progress - We are testing the new GOWIN.EXE

Our programmers have completed work on the first version of our health analyzer option. During March we have been in the process of testing and fine-tuning this new feature. We anticipate that we will be releasing the new software as a mid-month update sometime during the week of April 15th. If all goes well we hope to introduce it to all subscribers with the May monthly update.

During the testing of the new program we made some further changes to the original design. The biggest change is to the Smoking/Tobacco Use option under Health Analyzer.

Smoking/Tobacco Use option

As you know a number of non-cigarette options already exist in our software under the non-smoking category.

For example, a number of companies will allow non-cigarette tobacco users to qualify for one or more of their non-smoking or non-tobacco categories, just as long as the insured doesn't smoke cigarettes. A number of companies consider pipes and cigars to be non-smoking.

In another example some companies actually have a specific health class Šthey typically call "tobacco, not cigarettes". If such a class exists Compulife includes it in our "non-smoking" category. This will not change unless you use Health Analyzer.

If you do use Health Analyzer, and select the "Smoking/Tobacco Use" option, and then indicate that the person engages in any of the tobacco options which follow, then your comparison will become a two pass, two part result.

On the first pass the system will go through the non-smoking categories and attempt to find any products which would qualify based upon the tobacco use that you have described in Health Analyzer. ONLY those non-smoking products which fall into the parameters specified for "Smoking/Tobacco Use" in Health Analyzer will be displayed in the first part of the comparison results. If the product has no health analysis information on which to base a tobacco use decision, it will not appear. This top part of the comparison results will be labeled "Non- Smoker".

If all you examined with Health Analyzer was the Smoking/Tobacco Use, then all products appearing in the first section will have green checks. However, if you looked at any of the other factors, then it is possible the client may have been acceptable based upon tobacco use, but may have been rejected for some other reason (height/weight, BP or cholesterol). If the smoking was acceptable, but one of the other factors failed, then the product will appear with a red X next to the premium.

Once the non-smoking pass is completed, a second pass will then be made through the smoking categories. In this second section of the comparison ALL smoking related products will be quoted and the section will be labeled "smoker". A green check mark will appear next to each premium which qualifies based upon the Health Analyzer results. A red X will appear next to each premium whose tobacco use or other health factors are outside the parameters entered. If there is no green check or red X box next to the products, these products are not defined in the health analyzer database.

Having said all this, IF YOU DO NOT USE HEALTH ANALYZER, the system will work just as it does now. And that's particularly true for DOS users who will not have any Health Analyzer option.

Smoking/Tobacco Use - A Touchy Issue

We continue to be deeply concerned about what constitutes "smoking" in the mind of the general public. We believe that consumers understand "smokers" to be those who smoke cigarettes. Therefore, to label as "smoking" a product that excludes cigarettes but allows pipe, cigars, etc., is a serious concern for Compulife. The likelihood that such a product could be misrepresented as available to a cigarette smoker is high.

Worse, typical nicotine tests are unlikely to pick up on the distinction. If a client says they smoke cigars, you would expect Šnicotine in the urine. That nicotine will not say cigars or cigarettes, it will simply say nicotine. If the client is a cigarette smoker, and says he only smokes cigars, the test is of little use. By comparison, if the client says they don't smoke anything, but nicotine shows up, the company is going to have a closer look.

In any regard, Compulife brands cigar/pipe premium categories as "non- smoker" and we hope that that will give any consumer viewing such a quote a reason to pause and say, "but I smoke pipe" or "but I smoke cigars". At that point the agent, NOT COMPULIFE, can explain why a product quotation which has been identified as for a "non-smoker" can be available to a "smoker".

In the event Compulife is ever dragged into litigation about this we can truthfully say in the witness box that our quote was labeled "non- smoker". We will be able to say it wasn't us that told the consumer that it was OK to smoke something, it was the agent.

Keeping this in mind, if you double click on one of the plans in the "non-smoking" category, the single product display window will label the quote with the company name for the category, and "NS" in the short form category. Conversely, if you double click on one of the products in the smoking category, the product will come up with the company category name and the Compulife short form "SM" will be displayed.

On the other hand, it will work a little differently if you begin to file products to "Pick 12". If you are filing products from the smoking category the header will identify the quote as "smoker". If you file even one non-smoking product to Pick 5, the quote will become a non-smoker quote.

Health Analyzer - Background

For those who need to review our plans in this area, here is a copy of the e-mail that was sent to each life company that Compulife has received assistance from during the past two years:

Health Analyzer - Two Stage Implementation

Having broken the Health Analyzer development into two stages. The first stage will analyze the following areas:

The second stage of the development will add the following areas:

This will allow us to introduce the features much more quickly. The reason is that the first four areas of analysis are handled much more consistently by life companies. I am referring to the way that companies table and define that information. Building a data storage model for the first four areas is a relatively simple task and we can complete it quickly.

By contrast the information related to the second group is handled less consistently. Some companies have complex information and criteria while others have simple information and criteria. In each case the challenge is to come up with a comprehensive questionnaire and database to encompass all possibilities. With respect to the second group of categories, we will need a much larger sample of different companies' data before we finalize the design. That means we will need time for more companies to become involved which adds a natural delay to the process. By leaving this to the second stage, it allow us to get you the first stage more quickly.

Pick 12 Multi-Life - Next on the List

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.

Multi-life for Up to 5 Individuals

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 individuals 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.

Special Offer to Agencies

We continue to repeat our reference to this special offer for agencies because NO ONE has taken us up on it. Here it is again. If you are an agency that wants term quotes for your website, you need to read this carefully as it is an attractive offer for someone that wants to do a little leg work for us.

Compulife has introduced a new Internet-based quotation system for agents. The system is currently marketed through two of our authorized Internet providers. For full details about the service and fees, please visit the www.compulife.com website. Details are in the September 2002 monthly bulletin.

One of the things that we have been hearing from agencies, who want to provide quotation and comparison services on-line, is that they would also like to have a library of life company applications and forms. One of Compulife's authorized web providers, "Insurance Squared", is anxious to provide that "forms" service. Unfortunately initial requests to life companies have met with less than an enthusiastic response. That's where this special offer can help you if you can help Insurance Squared.

We believe that MGA's have more power of persuasion when it comes to this issue. Therefore, if your agency is the first to assist Insurance Squared in obtaining the applications and forms for 6 life companies, your agency will receive a free year of the new Internet comparison service for your agents.

A second agency can also qualify for a free year of service. If the second agency can provide forms for an additional 6 life companies, that agency will also receive a free year of the new Internet comparison service for agents. (NOTE: If the first agency is first to provide 12, it will receive a 2 year free subscription to the on-line system).

A third free year of service will also be awarded to the third agency which can add 6 more unique companies to the forms library. (NOTE: If the first agency is first to provide 18, it will receive a three year free subscription to the on-line agent system. If the second agency is first to provide 12, it will receive a two year free subscription to Šthe on-line agent system).

To qualify Insurance Squared needs more than just the .PDF forms. Insurance Squared needs the forms provided by the Home Office with the understanding that the Home Office will keep Insurance Squared updated with new forms when they change. Alternately, the Home Office can provide Insurance Squared with access to the life companies forms library with the understanding that the forms can be downloaded and saved to the Insurance Squared website.

While this may entail some effort by the Home Office, we believe that the benefits are clear for the life company, the agency and the agent. We believe it will take a pro-active MGA to get that message across.

If you would like to see Compulife's new on-line quotation system for agents, give Bob Barney a call at (800) 798-3488. If you would like to discuss providing forms and qualifying, please call Glenn Cooke at Insurance Squared, (866) 662-5433.

Dueling Websites

For those who update by Internet, Compulife has gone to great lengths to provide you with redundancy in our websites. Our main website is:

www.compulife.com

However, we keep another completely separate website, on a completely different server, in a completely different country, at:

www.compulife.us     or     www.compulife.cc

Whatever we update to compulife.com, we also update to compulife.us or compulife.cc. If one website goes down, for whatever reason, the other is ready to serve you. That includes both monthly and mid-month updates.

For those doing monthly updates by Internet, we rely on three other websites to supply monthly updates. These are automatically checked and used by our automatic Internet update software.

Returning Monthly Disk Updates

For those not wanting to return disks there are two ways to eliminate the problem.

1. Switch to obtaining monthly updates by Internet.

Not only will you eliminate the expense and hassle of returning disks, you will save $80 per year in subscription fees.

To switch to Internet monthly updates, go to our webpage www.compulife.com and select the last menu choice "Forms, applications, instruction tutorials, etc." Under the section "License Agreements", the third license is the "Internet Update Endorsement". Print the endorsement. Once you have it, please read it carefully, especially the part where you agree that you have successfully downloaded and processed our "mid-month updates". If you haven't done that before, call us and we'll be happy to take you through the procedure. It's easy.

2. Disk Purchase Program

The other way to avoid returning the disks and the disk box each month is to pre-purchase them for $21 per year ($1.75 per month). Once you do that you can keep them for future reference, throw them away or return them for a credit (once each year) when you are invoiced for the following year. $21 costs you less than mailing back disks each month.