Standard Insurance Overview and the Need for Life and Disability Insurance

2Please refer to the proposal and accompanying marketing materials for additional plan information.

Why Choose The Standard?

• Our values and our client focused culture• A dedicated team that is interested in your needs• An underwriting and pricing strategy that promotes the lowest net cost

and long-term relationships• Contractual flexibility• Enhanced contractual features and services that provide additional

benefits to your members and their families• A commitment to exceed your expectations

3Please refer to the proposal and accompanying marketing materials for additional plan information.

Group Life and AD&D Features and Benefits

Included in quoted plan:• Accelerated Benefit for eligible employees who are terminally ill• Repatriation Benefit up to $5,000• MEDEX Travel Assist• Electronic Beneficiary Designations• AD&D Family Benefits Package• Seat Belt and Airbag Benefit• Conversion and Portability • Waiver of Premium

*Provided by a third-party administrator.

Your Plan

4Please refer to the proposal and accompanying marketing materials for additional plan information.

Group Long-Term Disability Features and Benefits

Included:• Return To Work Incentive (allows for up to 100% income

replacement between return-to-work earnings and long-term disability benefit during the first 12 months of disability)

• Reasonable Accommodation Expense Benefit • Social Security Assistance• Survivors Benefit• One claim form for STD and LTD• Rehabilitation Incentive Benefit (LTD benefit is increased by 10% if

in an approved rehabilitation program)• Partial Disability is covered from first day of disability• Continuity of Coverage • Employee Assistance Program*

*Provided by a third-party administrator.

Your Plan

5Please refer to the proposal and accompanying marketing materials for additional plan information.

Group Short-Term Disability Features and Benefits

Included:• Partial Disability is covered from first day of disability• No pre-existing condition exclusion• Reasonable Accommodation Expense Benefit• Non-occupational coverage

Your Plan

66

Account Service

7Please refer to the proposal and accompanying marketing materials for additional plan information.

• Employee Benefits Manager and Field Service & Underwriting Manager

Management oversight of your account• Employee Benefits Consultant

Your advocate at The Standard Plan and claim trend evaluation and recommendations Local support for on-site consultations

• Account Manager Day-to-day account service and support

A service team dedicated to you

Account Service

8Please refer to the proposal and accompanying marketing materials for additional plan information.

Our disability management program delivers on the promises made when coverage is purchased.

• Supportively pay those who are entitled to benefits in a timely, accurate and sensitive manner

• Identify those who can return to work and help them to do so as soon as is reasonable

• Uphold the integrity of the contract

• Control costs by identifying and combating fraud

Benefits Administration

9Please refer to the proposal and accompanying marketing materials for additional plan information.

When a disability claim is submitted, the employee is placed at the center of everything that we do

• Triage – We apply the right resources to each claim

• Early intervention – Acting quickly facilitates return to work and correct claim duration

• Team approach – Working together eases communication and improves outcomes

Nurse Case Manager

PhysicianConsultant

SocialSecurity

Assistance

VocationalCase Manager

Employee

BenefitsAnalyst

Benefits Administration

10Please refer to the proposal and accompanying marketing materials for additional plan information.

Our Nurse and Vocational case management staffing model is recognized by a leading human resource consulting firm as an industry Best Practice

•Medical and Rehabilitation Experts

Nurse Case Managers

Vocational Case Managers

Mental Health Unit

Medical Director

Consulting Physicians•

Social Security Services•

Special Investigations Unit•

Overpayment Recovery Unit•

Employer Tax Services

Benefits Administration

11Please refer to the proposal and accompanying marketing materials for additional plan information.

Disability Claim Process

Claim Received

Administrative Staff· Prepares claim record within one work day· Evaluates forms and information for

completeness· May follow up at least every 15 days until

needed information is received; employee notified of incomplete status

· Assigns claim to Fast Track or Triage

Fast Track Claims· Employee has returned to work· Routine pregnancy· Clearly defined recover period

Short Duration Claims· Complex pregnancy· Routine surgery· Simple fracture· Other conditions expected to

resolve within duration guidelines

Long Duration / Complex Claims· Disability expected to exceed STD

maximum benefit period· Complex diagnosis· Multiple diagnosis· Claim filed late

Nurse Case ManagerDisability Specialist Triage

Claim Decision MadeDuration managed by Benefits Analyst

Claim Decision MadeDuration managed by Benefits Analyst with advice from Nurse Case Manager and Vocational Case Manager as needed

Claim Decision MadeDuration managed by our Managed Disability Team (Benefits Analyst, Nurse Case Manager and Vocational Case Manager)

Benefits Administration

12Please refer to the proposal and accompanying marketing materials for additional plan information.

Life Claim Process

Beneficiary· Complete Beneficiary Statement· Submit to the Employer or to The Standard

Processor· Prepares claim file and creates system record within 24 hours· Evaluates claim for complete data· assigns claim to your assigned Life Analyst

Life Analyst· Completes review of the claim within 5 business days of assignment· Determines if claim is approved, denied or additional information is

needed

Denied· Reviewed by Life Benefits Supervisor· Letter is mailed to all parties involved

(Employer, Beneficiary, etc.)· Phone call to follow-up

Additional Info Needed· Letter is sent requesting additional/

missing information· Follow up every 15 days

Approved· Beneficiary receives payment by

Standard Secure Access (SSA), lump sum payment or installment

Employer· Complete Life Benefits

Application· Submit to The Standard

Benefits Administration

Technology and Reporting

14Please refer to the proposal and accompanying marketing materials for additional plan information.

Our AdminEASESM secure Web site streamlines day-to-day plan management

• Timesaving efficiencies Online administration guide Claim forms for all products Employer claim submission Billing and payment details Access to Reports OnlineSM

Order supplies Update member information Resource center Request Schedule A

Technology and Reporting

Positively Different

16Please refer to the proposal and accompanying marketing materials for additional plan information.

According to our customers, The Standard:

• Possesses integrity• Demonstrates expertise• Exhibits commitment• Provides personalized service• Does things differently

Who Is

The Standard?

17Please refer to the proposal and accompanying marketing materials for additional plan information.

The Standard is a leader in Employee Benefits

• National leader in Disability, Group Life and Dental insurance

• Insured first group client in 1951, which remains in force today

• The largest subsidiary and core business of StanCorp Financial Group, Inc., a Fortune 1000 company*

• Known in the insurance industry for exceptional service and integrity

• Committed to serving our customers since 1906

Who Is

The Standard?

*StanCorp is a separate entity from Standard Insurance Company and is not responsible for The

Standard’s financial condition or contractual obligations.

18Please refer to the proposal and accompanying marketing materials for additional plan information.

We take our commitment to you seriously

• We commit to being honest and ethical in all that we do• We commit to focusing on your needs and finding solutions

as your needs change• We commit to meeting your needs for communication

materials and open enrollment support• We commit to implementing your plan within proposed

targets• We commit to accessibility and same day responses

Who Is

The Standard?

19Please refer to the proposal and accompanying marketing materials for additional plan information.

• Help protect what is priceless• What would happen if an employee suddenly died?

Could their family live without their income? Would their family be able to cover the medical expenses associated with a

terminal illness? Would their family be able to cover burial and funeral expenses?

Need for Life Insurance

20Please refer to the proposal and accompanying marketing materials for additional plan information.

Beliefs about Disability:

People insure —Their possessions Houses Cars

Their lives Income protection for their survivors

Their health

But they don't think about insuring or protecting their income.

Need for Disability

Insurance

21Please refer to the proposal and accompanying marketing materials for additional plan information.

Disability: The Odds

The incidence and consequences of disability are greater than most people think. Consider these statistics:

• Almost 3 in 10 of today’s 20 year olds will become disabled before reaching age 67 (Social Security Administration Fact Sheet 2009)

• Every 90 seconds in the United States someone files for bankruptcy in the wake of a serious illness (The American Journal of Medicine, Vol 122, No 8, August

2009) • 27 percent of Americans say they would have difficulty supporting

themselves financially immediately following a disability. Three out of four (74 percent) say they would face financial trouble within six months (The Disability Survey conducted by Kelton Research on behalf of the LIFE Foundation, April 2009)

Need for Disability

Insurance

22Please refer to the proposal and accompanying marketing materials for additional plan information.

How Disability Insurance HelpsDisability insurance provides income replacement when insured

employees experience a covered illness, injury, or pregnancy. The coverage can help with bills such as mortgage or rent payments, groceries, utilities and tuition – expenses that health insurance won’t cover.

Employees Safeguard lifestyle Protect loved ones Peace of mind

Employers Retention/recruiting tool Good will — when employees understand the benefit, they

appreciate the “safety net” Plan provisions (like Return to Work) can help your valuable

employees get back to a more productive and rewarding life

Need for Disability

Insurance