Who’s Who?

2. Who’s Who? • John Hall, Senior Vice President 972-569-3667, JKHall@Torchmarkcorp.com • Terri Slinkard, Vice President 972-569-3617, TSlinkard@Torchmarkcorp.com • Derek Schelldorf, Director 972-569-3277, DSchelldorf@Torchmarkcorp.com • Kathryn Cox, Sales Analyst 972-569-3621, KACox@Torchmarkcorp.com • Kiley Jordan, Administration Supervisor 469-525-4202, KJordan@Torchmarkcorp.com • Greg Bouska, Sr. AVP IT App. Dev. 972-569-3770, GBouska@Torchmarkcorp.com

3. The Company Behind the Coverage Introduction Industry Ratings A+ (Superior) Financial Strength Rating from A.M. Best Company for more than 30 consecutive years (as of 6/11) AA- “Very Strong” Financial Strength Rating from Standard & Poor’s(as of 5/10) • United American opened its doors in 1947. • Recognized as one of the nation's leading writers of individual Medicare Supplements. • Wholly owned subsidiary of Torchmark Corporation, a financial services holding company listed on the New York Stock Exchange (TMK:NYSE) • Firmly established in the Group Retiree Health market for employer, union, and association groups • One size does not fit all – Groups want to do business with us because we are flexible. • Solutions for Groups & Retirees • Competitive rates with solid experience • Greatly reduce administrative burden and costs • Virtually eliminate paper claims, “Automatic” Claims Filing® (ACF PLUS) • Ease of installation • List billing available

4. Medicare Facts 4 Parts of Medicare • Medicare Part A: Hospital • Medicare Part B: Medical (enrollment optional) • Medicare Part C: Medicare Advantage Plans (enrollment optional) • Medicare Part D: Prescription Drug Coverage (enrollment optional)

5. Medicare Part A (Hospital Insurance) Part A is hospital insurance that helps cover inpatient care in hospitals, skilled nursing facility, hospice, and home health care. • Inpatient care in hospitals (such as critical access hospitals, inpatient rehabilitation facilities, and long-term care hospitals) • Inpatient care in a skilled nursing facility (not custodial or long term care) • Hospice care services • Home health care services What is Part A (Hospital Insurance)?

6. Medicare Part B (Medical Insurance) Part B helps cover medically-necessary services like doctors' services, outpatient care, home health services, and other medical services. Part B also covers some preventive services. • Medically-necessary services — Services or supplies that are needed to diagnose or treat your medical condition and that meet accepted standards of medical practice. • Preventive services — Health care to prevent illness (like the flu) or detect it at an early stage, when treatment is most likely to work best. What Is Part B (Medical Insurance)?

7. Key Administrative Differences Between Medicare Supplement and Part D • Eligibility for Part D is highly regulated, Medicare Supplement is less • To enroll in Medicare Supplement, a retiree must be enrolled in Part A and Part B of Original Medicare • Late enrollment Penalties, SPAP, LIS, and credible coverage are not applicable to Medicare Supplement • CMS does not need to approve Medicare Supplement enrollment

8. What is a Medicare Supplement? A supplemental Health Plan designed to cover the gaps not covered by original Medicare. Let’s review the Standardized Medicare Supplement Plans.

9. Group Retiree Health InsuranceSupplement to Medicare • Flexible, custom-built benefit programs • Competitive rates, first year and renewal • Guaranteed acceptance • Freedom to choose providers • Excellent service and customer satisfaction • Group benefits with individual service • Attractive alternative for employers, unions, and associations • Manage future liabilities and enhance comprehensive benefits

10. Group Retiree Health Insurance • Our plans fit specific needs of a group • Deductibles, coinsurance, and out-of-pocket maximum riders reduce costs • Plans are automatically revised according to Medicare changes each year • Reduce FASB 106 and GASB 45 liabilities by going fully insured • Dedicated service team for group retiree market • Very low admin costs • All of our Group Retiree Health Plans are guaranteed issue, regardless of preexisting conditions. • There are no individual applications required — enrollment is easy!

11. Market Diversity • Charitable and Service Organizations • Financial Institutions • Hospitals • Insurers • Labor Unions • Manufacturers • Mining Companies • City and Municipality Governments • Religious Groups • Schools and Universities

12. Case Study Receive RFP or a request by e-mail to quote on specific group Review material that is received to make sure we have everything we need • Census – including zip code, date of birth and gender • Summary of Plan Descriptions or plans the Group/Broker wants quoted • Requested effective date • Employer Contribution • If RFP, review entire RFP and see if there are questions that need to be asked before moving forward • Submit requests to have quotes done on all requested plans • Once quotes are received, review to make sure it is competitive • Certain states regulate the implementation of customized, nonstandard group retiree health plans.  Where applicable, comparable standard Med Supp plans are offered to residing retirees and rates are averaged with remaining group.

13. Case Study (continued) • Composite Rates are determined to keep it simple • Other rating plans, other than composite rated, can be requested • After we have final rates, prepare proposals and complete RFP questionnaire if RFP is received. • Mail/e-mail Proposals to Broker/Consultant or complete Packet if working from RFP • Receive notification the case was sold and begin implementation process • Visit with Broker to see what is going to be required for Implementation – Enrollments, Mailings, Meetings, etc. • Once we have all requirements, a Timeline will be prepared and submitted for approval with Broker/Consultant/Group • Key Personnel with each entity will make sure that Timeline is followed

14. Group Retiree Health Plan | Financial Illustration | Retirees 65 and Older

15. Group Retiree Health Plan | Financial Illustration | Retirees 65 and Older

16. Thank You www.groupretireeinsurance.com