Download the Abacus Product kit - Abacus Series

33 Pages·2014·2.01 MB·English

FOR MORE THAN 35 YEARS, ABACUS
has been offering dynamic voluntary benefits that deliver peace
of mind, confidence, and security. We are an experienced and
effective marketing and managing general underwriter, dedi-
cated to forging long-lasting relationships with our clients. Our
specialty is developing voluntary benefits that match your par-
ticular needs. With products issued through the world’s largest
re-insurers, we maintain underwriting authority and discretion
to bring you, the broker, the most competitive and flexible prod-
uct for your clients.
We are rooted in the belief that quality doesn’t just happen;
rather, it’s a result of high expectations, intelligent direction,
and skillful execution. Abacus continually measures the needs
of our market and leverages our experience and imagination to
set industry standards — for plan creativity, customer trust,
and voluntary benefit performance.
YOU CAN COUNT ON YOU CAN COUNT ON
CUSTOMIZED SOLUTIONS PERSONALIZED SERVICE
Abacus believes in customized solutions. “Shelf Rates” are fine if At Abacus, our post-sales support has been specifically designed to
you are only selling product. But, we believe that the voluntary in- uphold our voluntary employee benefits. Abacus provides respon-
surance market demands creativity. So, when you see a plan that sive service from experienced professionals who have a thorough
carries the Abacus name; you know that it’s a plan of flexibility, working knowledge of the Abacus Series products. You get expert-
choice, and unique design. ise and support in the following areas:
Features include:
•Billing
•Flexibility in elimination and benefit periods •Live, toll-free customer support
•No percentage participation requirements •Flexible mode of payment
•Minimum group size of five (5) enrolled •Simplified billing statements
•Plans designed for associations, unions, PEO’s, and 1099’s •Consolidated billing
•No excluded W-2 industries
•Claims
•Annual Guarantee Issue re-enrollments
•Live, toll-free customer support
•Pre-existing Condition
•Personal claims examiner
•Portability
•3-day average claim response turnaround
•STD claims paid weekly
YOU CAN COUNT ON
PRICING FLEXIBILITY YOU CAN COUNT ON
FLEXIBILITY, SUPPORT, AND RESPECT
Our philosophy is designed with a simple goal in mind: to provide
clients with a plan design that makes financial sense and that meets
Support on every level is only a quick phone call away. When you
the unique benefit needs of each group. Abacus offers:
team up with Abacus, you have the flexibility you need to create vol-
•Pricing based on Issue or Attained age untary insurance plans with the range of options your clients need.
•SIC Code classification and evaluation
Abacus supports your decisions, values your independence, and re-
•Group discounting based on size
spects your groups — as your clients. Call us and find out what a
•Replacement coverage
growing number of brokers already know:
•Percentage of income covered
•Continuity of coverage
YOU CAN COUNT ON ABACUS
West Coast Corporate Office East Coast Corporate Office
800-643-2212 800-653-5242
For more information, visit us at: www.abacusseries.com
The
Difference!
All Disability plans are NOTcreated equally. In today’s economy, price is important - but it
is also important to “get what you pay for”. With the Abacus Series, you’re getting the most
for your dollar.
Abacus Series Your Competitor
The Similarity
4 4
Optional Benefit Amounts ................................................................ q q
4 4
Optional Elimination Periods............................................................ q q
4 4
Optional Benefit Periods .................................................................. q q
The Difference
q4 q
No Participation Requirement..........................................................
q4 q
Claims Paid Weekly............................................................................
Pays in addition to all other sources of income
q4 q
for the first 10 days after the Elimination Period ..........................
Pays benefits up to 100% of all income for
q4 q
the first calendar year ......................................................................
q4 q
Waiver of Premium while receiving benefits................................
q4 q
Issue Age rates for initial policy and increases............................
q4 q
Annual Guarantee Issue open enrollments ..................................
q4 q
Pre-existing Condition benefit of 25% or 100% for 4 weeks........
Coverage offered to W-2 or 1099 employees
q4 q
working 20+ hours per week............................................................
q4 q
Signature-only Applications and Online Enrollment....................
q4 q
No census required on groups of less than 1,000 ........................
MONTHLY COST $ $
The Abacus Series allows you the flexibility to:
• Change your Pre-existing Condition waiting period • Offer 24-hour or Off the Job-only coverage
• Offer Weekly Claim payments • Add Portability • Allow varying coverage based on Income
While many carriers discuss their coverage in terms of rates, our philosophy is to provide
customized plans that offer quality benefits at a competitive price. If we didn’t take this
approach, we would be the same as every other carrier.
Summary of
asset strength
Assets Dec. 31, 2013 Dec. 31, 2012
Investments:
Fixed maturity securities available
for sale, at fair value $ 2,618,620 $ 2,788,141
Equity securities available for sale,
Industry Ratings
at fair value 34,386 20,061
Mortgage loans 629,256 674,034
Below is a summary of ratings assigned to
Real estate 142,536 1224,742
Kansas City Life Insurance Company by
one of the most recognized insurance Policy loans 83,518 77,133
industry analysts Short-term investments 40,712 24,902
Other investments 1,247 2,572
A.M. Best Company Rating
Total investments 3,550,275 3,711,585
A (Excellent)
Cash 8,197 7,026
Rating is based on Kansas City Life
Insurance Company's relative financial Accrued investment income 33,795 34,747
strength and operation performance. Deferred acquisition costs 256,386 176,275
According to Best, "A (Excellent) is Reinsurance receivables 191,055 190,613
assigned to companies which, in our
Property and equipment 17,524 18,343
opinion, have demonstrated excellent
Other assets 64,018 47,063
overall performance when compared to the
Separate account assets 393,416 340,093
standards established by A.M. Best
Company.
Total assets 4,514,666 4,525,745
A (Excellent) companies have a strong
ability to meet their obligations to Liabilities
Policyowners over a long period of time."
Future policy benefits 910,228 889,107
The 15 Best ratings range from A++
Policyholder account balances 2,096,212 2,128,002
(Superior) to F (In Liquidation).
Policy and contract claims 36,783 29,813
as of 06/2013
Other policyholder funds 160,421 155,749
Other liabilities 192,202 232,580
Separate account liabilities 393,416 340,093
Total liabilities 3,789,262 3,775,344
Stockholders' Equity
Common stock, par value $1.25 per share
Authorized 36,000,000 shares,
issued 18,496,680 shares 23,121 23,121
Additional paid in capital 40,989 40,969
Retained earnings 823,408 805,730
Accumulated other comprehensive income 14,170 54,094
Treasury stock, at cost
(2013 - 7,527,841 shares;
2012 - 7,463,823 shares) (176,284) (173,513)
Total stockholders’ equity 725,404 750,401
Total liabilities & stockholders’ equity 4,514,666 4,525,745
(amounts in thousands, except share data)
To learn more about the Abacus Series of products,
please call us at 1-800-643-2212
PrePrinted Enrollments
Abacus Series PrePrinted Enrollments offer a hassle-free solution to the labor intensiveness and
lossofproductionthatemployersandHRDirectorshavetraditionallydealtwith,providingaturn-key
solution that simplifies the process for everyone.
Our preprinted, signature-only benefit election and enrollment forms allow you to take advantage of:
✓ Minimal HR Involvement ✓Maximum Effectiveness ✓Less Effort and Errors
All you need is a census with Name, DOB, Salary and any other application data you want to include.
Contact us with any questions at: 800-653-5242
Our claims staff has a front line focus on delivering superior customer satisfaction and the very best outcomes.
Better outcomes mean stronger returns.
Our telephonic Short-Term Disability claim submission process is fast
and easy and most important, no time consuming forms to complete.
How it works….
•  Claimant calls a dedicated toll free number to initiate their claim: [phone].
•  Claimant has immediate access to one of our knowledgeable Ability Analysts who are trained to
put the claimant at ease from the start by explaining what is necessary to adjudicate the claim as
quickly as possible as well as what the claimant can expect next.
•  Within one business day, our Ability Analyst reaches out to the employer and attending physician
to obtain the necessary information to make a claim decision.
Our Ability Analysts are diligent and adhere to strict
performance guarantees. Most importantly, they ensure the
claimant is regularly informed of the status of their claim.
Our goals are to….
•  Focus on return to work,
•  determine reasonable recovery,
•  set expectations,
•  coordinate with the attending physician, and
•  assess rehabilitation potential if appropriate.
All of these goals can help claimants return to productivity,
which helps you improve your bottom line.
How weʼre doing…
•  90% of our Short-Term Disability claim decisions are made within 5 business days from receipt
of complete information.
•  90% of employers were extremely satisfied with our claim services.
•  Our claimant satisfaction rating has exceeded 90% for six years running.
Your broker is: Bob Broker
The Insurance Company
Issued through Kansas City Life
12345 Main St.
Anytown, US 67890
800-555-0000
Email: [email protected]
Sample Rates
PROPOSAL
VOLUNTARY SHORT TERM DISABILITY
VOLUNTARY LONG TERM DISABILITY
VOLUNTARY GROUP TERM LIFE AND AD&D

Group Size: 249
Domicile State: GA
SIC Code: 4213
Valid until: 11/19/14
Your broker is: Bob Broker
The Insurance Company
12345 Main St.
Anytown, US 67890
PROPOSAL Prepared for: Sample Rates 800-555-0000
Email: [email protected]
TheAbacusGroupisanexperiencedandeffectivemanaginggeneralunderwritingfirmdedicatedtoforging
long lasting relationships with our clients. With products backed by the worlds largest reinsurers, The Abacus
Group specializes in the design and pricing of Disability and Group life plans. With 38 years of experience, we
maintainunderwritingauthorityanddiscretiontobringtoyouaproductthatisfundamentallysound.Wearenot
drivenbyWallStreettrends,stockprices,orcorporatemanagementwhims.Wearerootedinthebeliefthatquality
doesn't just happen; rather it is a result of high expectations, intelligent direction, and skillful execution.
Administration of The Abacus Series Plan
The Abacus Series, issued through KCL, is administered by North American Benefits Company. With special
emphasisontheworksitemarket,NABCOprovidessupportinbilling,policyissue,andcustomerservice.Their
innovativetechnologyhasallowedTheAbacusSeriestokeepoperatingcostlow,therebymaintainingcompetitive
premiums on outstanding products.
Abacus Series Claim Administration
TheAbacusSeriesClaimsDepartmentiscomprisedofafullystaffedgroupofprofessionals,eachwiththeirown
experience in a specific area of claim processing. Disability claims are administered by the Hartford, and every
claimisapproachedknowingthatworkandincomeareanintegralpartoflife.Abacusstrivestoutilizethemost
effective and expeditious methods of communication to ensure claim payment is seamless.
Industry Rating
A
A.M. Best Company Rating
RatingisbasedonKansasCityLifeInsuranceCompany'srelativefinancialstrengthandoperationperformance.
AccordingtoBest,"A(Excellent)isassignedtocompanieswhich,inouropinion,havedemonstratedexcellent
overall performance when compared to the standards established by A.M. Best Company.
A (Excellent) companies have a strong ability to meet their obligations to Policy owners over a long period of
time." The 15 Best ratings range from A++ (Superior) to F (In Liquidation).
VVaalliidd uunnttiill:: 1111//1199//1144 Page: 2 of 7
Benefits You Can Count On
VOLUNTARY SHORT-TERM DISABILITY VOLUNTARY LONG-TERM DISABILITY
BENEFIT AMOUNTS ELIMINATION PERIODS BENEFIT AMOUNTS ELIMINATION PERIODS
$75 to $1,400 per week (refers to injury/sickness) $300 to $6,000 per month (refers to injury/sickness)
(from $50 in statutory states) 0 days/7 days, 7 days/7 days, sold in $50 increments 90 days, 180 days, 365 days
sold in $25 increments 0 days/14 days, 14 days/14 days,
BENEFIT PERIODS BENEFIT PERCENTAGE
30 days/30 days
2 years, 3 years, 5 years, Age 65, Up to 60% of monthly
BENEFIT PERIODS BENEFIT PERCENTAGE Normal Social Security Retirement Age earnings
13 weeks, 26 weeks, Up to 65% of weekly earnings
52 weeks, 104 weeks 30% in statutory states (requiring state
disability benefits - CA, HI, NJ, NY, RI)
HIGHLIGHTS
• Minimum participation - 5 enrolled for 2 year plan
(No percentage participation requirement)
HIGHLIGHTS • Minimum participation - greater of 5 enrolled or 25% of eligibles
• Minimum participation - 5 enrolled for other plans
• No percentage participation requirement • Guarantee Issue up to $3,000 per month ($1,500 for ‘E’ industries)
• Minimum 20 hours worked per week • 12/24 Pre-existing Condition Limitation (state exceptions apply)
• Guarantee Issue up to $700 per week • Accidental Dismemberment and Loss of Sight option available
• Claims paid weekly • Minimum 30 hours worked per week
• 12/12 Pre-existing Condition Limitation • Integration is Direct Full Family
• Mental Illness/Drug/Alcohol/Special
(state exceptions apply)
Conditions Limitation
• 24 hour or Non-Occupational coverage
• 24 hour coverage
• Survivor Benefit on 52 or 104 week plan
• Survivor Benefit available
• First Day Hospital Benefit available -
benefits begin on first day of 24 hour or
more hospitalization - n/a with 30/30 plan
• Pre-existing Condition Benefit of 25% or
100% of benefit for 4 weeks available
VOLUNTARY TERM LIFE
• Integration:
• Pays in addition to all other sources of BENEFIT AMOUNTS
income for first 10 days after Employee: from $20,000 to $500,000, up to the
elimination period greater of 5 times annual earnings or $100,000;
• Pays benefits up to 100% of all income in $10,000 increments
for the first calendar year Spouse: from $10,000 to $250,000 not to exceed
50% of employee amount; in $5,000 increments
Child: flat amount of $5,000 or $10,000
Accidental Death and Dismemberment [AD&D] (if offered): Employee:
up to lesser of 2 times Life benefit amount or $500,000; Spouse: up to
STD AND LTD SPECIAL FEATURES Spouse Life benefit amount; Child: equal to Child Life benefit amount
• No excluded W-2 industries • Employee coverage required to enroll Spouse and/or Child(ren)
• Annual Open Enrollments Guaranteed Issue
• No census required on groups under 1,000 lives
• Coverage available for groups over 1,000 lives, Associations, HIGHLIGHTS
PEO’s, Credit Unions and 1099’s • Minimum participation - greater of 5 enrolled or 20% of eligibles
• 4 age bands • Guarantee issue from $50,000 to $180,000 determined by group size
• Signature only applications & online enrollment capability at initial enrollment
• Shorter Pre-existing Condition Limitation options available • Annual Guaranteed Issue Employee “buy-ups”
• Issue Age rate structure for initial policy and increases • Minimum 30 hours worked per week
(Attained Age rate structure available) • Accelerated Death Benefit of 80% of coverage
• Waiver of Premium while receiving benefits • Attained Age rate structure
• Replacement coverage with Continuity of Coverage • 2 year rate guarantee
• Portability option available • Disability waiver of premium
• 2 year rate guarantee • Portability up to 3 years
For agent use only. For special limitations and exclusions please refer to our policy certificate. Coverage subject to availability by state.
The ABACUS Series is issued through Kansas City Life Insurance Company.
BENEFITS YOU CAN COUNT ON
START WITH PEOPLE YOU CAN COUNT ON.
THE ABACUS GROUP IS a marketing, underwriting, and risk-sharing company that partners with brokers, in-
surance carriers, and re-insurers to provide groups with the benefits theyneed. For over three decades, we have
been working with insurance companies, re-insurers and distribution sources specializing in the development of vol-
untary short-term disability, long-term disability, group life, critical illness plans and pharmacy cards.
BACKED BY A LEADING RE-INSURERin the insurance business, we’ve created an all-star lineup to deliver
an insurance line of products that is adaptable and flexible. Not only does our line have the financial backing of an
industry leader, but it also provides claims service and customer support, delivered by a premier third-party admin-
istrator for full customer satisfaction. The result? A company you can count on for timely payment, reliable service,
support and products that exceed your expectations.
•A (Excellent) rating by A.M. Best
CORPORATE OFFICES
2541 Lafayette Plaza Dr. 252 Harry Lane Blvd.
Albany, GA 31707 Knoxville, TN 37923
PH: 229-436-6032 PH: 865-539-5000
800-643-2212 800-653-5242
FX: 229-439-1644 FX: 865-539-5011
For more information visit us at www.abacusseries.com
To request a quote e-mail: [email protected]