U.S. Update News

March 2003

COMPULIFE Software, Inc.

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.

Improvements to Multi-Life quotations

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.

Client Entry and Switching Client Improvements

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.

Cherry Picking Individual Premiums

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.

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 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.

Health Analyzer Progress - Life Companies Contacted

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:

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:

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.

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 the 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:


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.