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The Naf:ianal Under er 84th ~eg~, N~. 34 LIFE & HEALTH INSURANCE EDITION A~gu$! 23, 1750 i'he Marketing Scene Health Insurers Launch New Ad, PR Campaign In addition, meesures ~eing taken by health h~urers to br4.ng riling health costs under control are de- scribed within a rp~al box in message under the heading "Inflation and Health Care Costs." These include coverage of hospital testing, second opinion~ for surgery, and outpatient surge.,'y. Also en~hasized are the promotion of better health habits and the care- tul checking of medical facts. Supporting the national advertising campalcn are a wide range of public relation, initiatives being undertaken by individual insurance companies, agents, state health care comn~ittees which compr~e company and a~ent organization representatives, and other insurance group~. All participants have received lic relations materials from the Health Insurance Institute--such as advertis- ing reprints, booklets, prem/um en- closures, speeches, fact sheets, and other ald~--to mist in actively pro- rooting the proCram theme among thei¢ many pubLk~ These publics ~r~- eJ.ude t~e~¢ own eml~oyes, l~licyhol~- era, and 'ousiness, professional, school and community organizations. Among the activities being con- dueled are the distribution of reprints and booklets among public ~roups, articles in company publications, for- warding of premium enclosures to policyholders, and speaking engage- ments and radio-televL~ion appear- ances by health J~Jurance represen- relives. According to 2sme~ L. Mcoreflekl, Washington Roundup The third year of the private health insurance industry's Health Insurance ~ommml~catlons ProcraJ~---known I-LICP~is now underway. Three new advertising messages stressing both the performance of surance companiee and their efforts to ¢onta/n health care costs are ap- pearing in key consmuer in September, Octol~er, and IVovem- bet. The magazines: Newsweek, Time, Spor~ lllustrated, U.$. News, Busi- nero Week, ~he Atlantic, and Money. Launched in 1978 u a combined national advertising and p~olic rela- tions efforl, HICP focused init~ly on the prohl~n o! rising health care corn and what can be done about them. In late 1979 H~CP shifted to pri- mary strem on ~ ~ro~'eu of the ha- finn's health insurenco companies in protecting people against the eco- nomic burden of unforeseen medical expenses. The new campaign combines both subjects under the continuing theme "Let's Keep Health Care Healthy." Highlighted in the messages is the current extent o! health insurance coverage and the expanding scope of protection to elL'r/~nate the worry about hospital and medical bills. To this end, the ad messages cite the 181 million Americans with basic health insurance and note that of this group, 142 raison have major medi- cal expense insurance. Expansion into dental, nursing home, home care and other benefits is also underscored. Free ~ooklets on what to look for in obtaining health insurance are offered to readers in each advertise- president of the Health Insurance Assn. of America, the advertising and public relations program "marks the first time in our history that we have in place a highly visible means of communicating our views on crucial health care issues to the American people." Mr. Moorefle]d said that there are "tour ftmdamental reasons why the health insurance business should be strongly behind this commur~ications effort: "First, HICP deals with problems o! deep concern to the public and to the private health insurance system. "Second, the program provides a ready-made vehicle for .building pub- ~ic understanding of our position on "Third, HICP is c]earlT demon- Co,i'd o~ p~ge ~8 GOP Creates Health Policy Advisory Panel By I~a.EY JANE FISHEE W'~[I~'GTON~A Heal~ Poll~ ~ Group ~ ~en ~ed by the ~agan~B~h Co~ittee to ~e re~m~n~tio~ tor a national heath ~cy ~or the ~l~an presiden- tial and ~ce pr~ide~ti~ candidat~. ~e new ~mup ,~ ~e heed~ by Wi~ B. Wa~ pr~ident and r~tor of the P~pl~to-People Health Foundation, ~ow~ ~ Proje~ t~ ~ ~up wi~ examine tio~al health care ~ogr~ a~ make r~o~atio~ to the ~y's dard ~eere~ "Gov. Ronald Reagan i.~ reassured by the depth of practical experience an~ pu~bLtc sere, ice represented by" the outstan~ng men and women who w~ll ~oe evaluatir~ our national health policies and progranl&" according to P.eagan-Bush campaign chairman Bill Cagey. Among it~ members are ~amee IL Cavanaugh, former ~VMte House dep- uty cMef of staff; Theodore Cooper, Cornell University Medical College dean ar~i former ~.ssistant Secretary of Health, Education & Welfare; Prof. P~.lain C. Enthoven, Stanford Univer- sity; Clark C. Havtghurst, Duke Uni- versify ~..bw professor;, Willian> C. Felch, former American Medical Assn. Lag~slattve Council c~i~ and ~e Mount~ ~er ~erican H~- pit~ ~n. ~sla~ve Council char- ~e Democratic ~a~ adopt~ Pr~ident Jim~ Ca~s app~ach ~ nati~al heath i~ance in its ~ pe~n pla~or~ inclu~ng univer~ ~vera~e, ~mprehe~ve medic~ ~n~ wi~ cat~t~phic cost cover- a~e, and "~ive" ~st contain- ment alon~ wi~ '~ro~io~ to ~ren~hen c~petitive forc~ ~ the C~'d on Pa~ ~9 Longley Dies: '72 MDRT Pres., Former Maine Governor 3ames B, Longley, president of the Million Dollar Round Table in 19'/2 and former governor of Maine, died at hi~ home in ~wiston, Me~ at the age of ~ He had s~ered from ~ncer s~ce tare l~t ye~. ~. ~ngl~ ~m~ known na~on- ~ ~ 1~4 wh~ he w~ elect~ M~ne's ~ indepe~ent governor .~ u~et ~cto~ over the can~dat~ of the two major ~im. A long- t~e ~emocrat, ~r. '~ngley ~tc~d ~o ~ i~d~ndent tibet b~a~e he felt the ~o-p~ ~y~em w~ meeting the ~ple's nee~ nor offer- in~ ~able alte~ativ~. A New England Life ~rson~ ~o- d~ 8ener~ agen~ ~. join~ ~ ~T executive tee in 19~9 as secretary-elect. He h~ad served on several ]V~XlCT committees, including 19~1 aru~ ,I~67 vice chairman of the ~nual meeting program ~tte~ an~ w~ I~ chapman of the adva~ flnan~ plannin~ ~uide ~m~ttee. ~ agent si~e 19~, Mr. ~ngley tint qual~ for ~RT membe~hip in 1~ oecoived hk ~U d~ignation the s~e year, earn~ a law degree in 1~, and held continuo~ me~e~hip ~r the p~ ~ years. H~ 19~9 production allowed him qualdyi~ and Hfe ~T me~er- s~p stat~ for ,~, ~ngley ha~ attended ~ ~K~ a~nu~ meetin~ and wu a s~aker in 1975 an~ at the 1~8 meetin~ in Hawai~ where ~a Maine's governor he spoke on '~hat You Can Do When Motivated By Concern." As the 67th governor of Maine, he vowed to serve only one term in of- rice, and .kept hi~ promise. DuPing hi~ administration, statewide uneml>1oy- merit ~va~ cut in half and Maine wu the only ~tate whose per capita tax burden had dropped. Foilowir~g his term a~ governor, Mr. Longley became active in the national movement to require a balanced Fed- erat lbudget. Condolencee may be sent to widow, ,Mrs. Helen ]'.,ongley, at 40 Robinson Gardens, Lewiston, Me. 04~40. In addition to ~ds wife, he is survived by their ~ve children.

National Opinion Poll See Inflation And Interest Rates Declining L~ok ~ 1980 infatio~ rates .to be lower than 1979 leveI~, ir, terest rates that continue to dec.line during the remainder of the year, and continua- tion of the construction industry's current recession into 1981. These are some of the forecast~ made by the Ir~ternationa1 Foundation of Em1>]oyee Benefit Plans' National Opinion Panel in iL~ just released second quarter .survey. According to Helen K. Morton. president of the educational associa- tion, the pessimism of t~e panelist4, reflected in the /~rst quarter's ques- tionnaire, was leas prevalent th~ past quarter. The most ~ign~cant change in opinion showed that 70% of the re- spondents felt that 19~0 inflation will be leas than the 1979 rate, as opposed to the opinion expreased l~t quarter by 76% of Che panel that the 1980 rate would be higher. The general economic outlook, how- ever, remained on]y ~lightly im- proved over the l~st quarter, she said. Some 66% of the panelists still be- lieve a recession as severe as 1974'a is li~kely to occur before the end of this year. That's only 7% less than Jast quarter. Some 37% believe the 19~ return on equi,ty investments will exceed the 1979 return, oni7 5°/@ more than last quarter. Concerning interest rate~, 58% pre- dicted a de~ine for the remainder o! the year, contrasting with last quarter's opinio~ expressed by 70%, that the rates would continue to clin'ub during t~e year. The panelists responded to the question of benefit fund investmenLs with a slight majority (~4%) feeling • at the current outlook L~ encourag- in¢ and a ~rea~er n~ority (62%) recommending investment alterna- tive~, such as covered options, mort- gages and/or insurance contracts. A near majority (47%) stated that the benefit !uraLs with which they are a~ocialed were beginning to ~nve~t in oommon stocks as an inv~tment alternative. ~me ~ of ~be (slightly le~ than ~t qua~er'~ vote) antici~ the p~age th~ year of ~ai ~tle IV ~gulatio~ con~rning multie~loycr pla~. Feelings gating the "p~tial withdrawal" con- cept proposed under Title IV di~ded evenly a~ng thee in ~avor, t~se opted and tho~ un~cided. The greater pe~entage of uncer- tainty ~ prompt~ by the i~ue ~eezing defined benefit pl~ in favor of defied ~ntr~ution pla~. ~% c~ed ~e Dofft Know/No LIC Studies Eye Home ServiceProblems The flr~ ~wo cases in a series for ~se in the ~e Insurers Conference management s~ar ~ ~ ~v.~- ~ ~ ~any ~ra~ing ~ ~s ~ave ~ ~. ~ seri~ ~ ~d~ devel~e~ by ~or~ S~te Univ~'~ d~a~ of ~ur~e, It ~ d~ed to e~ the tradition home se~ice comp~J~ ~ve faced ~ thor p~du~ ~rtfoli~ have b~ ~g to ~ ri~ economic circu~tances of their ~ ~t ¢~, D~ie ~e ~.. was W~tt~ ~y J~ W. ~w~ a~e p~m~r of ~Ju~ ~ ~ ~te UnweaRy. ~ ~ce C. Hunger!ore ~i~ant p~t~or ot ~r~e at M~ ~e. ~e well a~ ~ ~t]~ ~ie Life ~ Co. ~ ~on ~ ~ ~e ~ket~g Di~e ~e ~ near ~a~ ~ e~ a ~o~. ~ ~ the ca~ h~. I~ beg~ ~ ~ ~t~ ~e ~ company and is still primarily engaged ~,~ the sMe of h~ne ~ervice pro~uc~. ~me 12 ye~$ ~o the ~pany ~gan to dive~ Rs p~ i~ ~d n~ off~ ~ ad~ ~ i~ ~- ance. m~y debi~ or~, ~at~g ~i~ n~ o~a~, ch~g~ have ~ s~l tot ~e c~pany exc~t for Rs a~ ~ ~te ~~, ~ ~age- merit ~ ~en~. ~t giv~ ~ ~ a~ual ~les of ~ ¢~anfs l~e ~ by ~ ~ y~, by d~ of ~ ~ ~ level of m~ag~ ag~ ~v~ ~ by len~ ~ eerie ~ ~yment ag~ f~ inc~ lev~ by ~u~ earnings level and year. 'l~ne second report cacTies ~e dis- ~ion ~ur, ther and ~i~hlights a v~te by ~he company's board to d.ra.rnatic- ~y sl'Att Rs marketing, philosophy frmu ~n e~phasis ~n the debit form ~f Ims~ess ~o ~ts non,debit lines. The change was '0Rterly v~sed by many in mar~ement and in the agency f~roe. ~e c~e history o~tlines ~'u~gle £he company f~ed ~e ~g ~ ~t ~ changes n~ ~e ~ ~ ~ de~£ w~ by ~e ~e ~ ~ .~ ~e lat~t s~on ~ ~arch ~ ~ t~ ~e ~ ~~ ov~ the yearn. ~i~ p~j~ have ~b~o~y of ma~er~ ~la~g to ~e ~e ~ (d~) ey~ of ~d a ~k on the ~e ot~m. LOMA's Annual Will Focus On Eighties 7,.,,OMA's annual conference will be held Sept. 7-9 in M~,,~ Beach, and will feature business entrepre- neurs, Life company executives and. manaEement consultan~ as program speaker~ The conference program w/I] dress four primary concerns of life company management in the new decade; the human resources needs of business and society; responding to the marketing challenges of the 1980s; the problem of hnproving in- surance company productivity; and the effects of change upon ~uture in- surance operatlon~. Earl G. Graves, head of ~ix munJcatior-- corporations and pub- Lisher of Black Enterprise magazine, will present one of two opening speeches on Sept, 8 to an expected ~,000 life company senior officer~ and managers o! LOMA member compa- nies. His speech will discuss the role of corporate initiatives and the need for corporate commitment in the devel- opment and utilization of manpower to achieve productivity. The second opening speech will be by ~ Chairman Ivan J. Hour- ton, chairman and CEO of Golden State Mutual in Lo~ Angeles. Mr. Houston will address some of the major national and international sues which confront life insurance companies in the 1980s, and will/den- tify LOMA services and activities which may be of assistance to life company managers as they contend with the forces of change. Conenn'e.nt SeesJon~ Four concurrent sessions will ~ol- low. Dr. Denk Waitley, president of the International Society for Ad- vanced Education and author of The P~ycholo~v o)~ Winning, will present a program on career development. Fred Smith, president of Fred Smith Associates and a Dallas management consultant, will speak about '~Motiva- t/on and Productivity." "Operating in the Central City" will be the topic o~ remarks by Robert W, Condon, vice president, personnel at Occiden- tal Life of California. Connie Steer, vice president of Yankelovieh, Skelly & W~hlte, will speak about "The New Worker: Motivating Today's Era- Joseph J. Melone will address the afternoon general session on 'q./fe In- surance Marketing in the 1980s." Dr. Melone, a senior vice president for Prudential, will present a broad anal- ysis of the marketing challenges fac- ing the life industry and will discuss variou~ strategies for dealing with them, includ~g an overview of prod- uct s~d marketing service trends. Three speakers will respond to Dr. Melone's addre~. William H. Thorn- son, senior vice president of Ameri- can Bankers Li~e will speak on the operations and systems aspects of the marketing challenge. Samuel Turner, president of Life of VirL~nia, will ex- plore the financial planning and con- trn] aspects. Br~ce Callis, vice presi- dent, personnel for State Farm Life, will speak about the human resources implications. Productivity improvement will be the theme of the morning general session on Sept. 9. John D. Hogan, vice president of the American Pro- ductivity Center. will speak on "Pro- ductivity Improvement Where It Cont'd on Po~e ~4 Haggerty Named To Head Western Regional Bureau O! National Underwriter Alfred G. Hag~ty Alfred G. Hag~erty has been pointed western regional bureau ~or The National Underwriter. Mr. Hag~erty has been vice pres dent in charge o~ media relations the Insurance Information In~titut New York City. He ~oined the I.I..L 19~5, having previously aerved as correspondent for both the New Yo: Times a~l the New York Hera Tribune, and as a ~enior communic tions consultant with Ho~nan-~ Roche, a phormace~tical n~anu~a turer headquartered ~ Nutiey, N~. "Al Haggerty i~ en experienc ~ournal~t ~vith impressive erede tiak in the ~ekt of communieatio~ He will bring to our important we~ ern operations an understanding insurance and an objec~ve approe ~o the re~orti~g o! the new~ tba¢ w enJ~nce the coast-to-coast ~'~pe capabilitie~ of The National Unde writer," aaid Bernard P. Jr., president of The National Unde writer Co. Mr. Hag~erty /s headquartered Cal~forn/a. Tbe address: The Natior L~nder~vrRer, ~ Kearny St~ S Franckco, Cal. 9410~. Phrase: (~1 ~,-1~. Index Marketing Scene .................. Insurance St ock~ .................. Option .............................. ~a.ifi~ .............................. 2, ~. ............................ 1, 2 ~m~c~ New, ................... ~eud~ ............................. ~ NA~0NAL ~ER~, 0~IX). pub]~ w~kly (wl~ one ~nd e~ ~S* ~d at Cbks~ BUBSCRI~O~S: Add~ 8U eomm~k ~ ~ T~ NaUo~I Und~r ~ 4 ~0.N B~k ¢opJ~ l1 CHA~GE 0F ADDR~: Itlcke~ s~d P~t Office tom sddr~ ~d ~ 420 ~ ~on of .

ASSISTANT CONTROLLER :L35-40,000 + Outstanding Of X~rtunity offered by an inaustry lea~er Iora CPA wil~ str~g life insurance ac- counting ~c~grou~ in e*lher ~lic accounting or insurance company ~ouid iOeally ~ring Str~g O~eti~ Uac~grou~ to t~ts ~smon li~ral relocation ~kage L-~ GROUP ~CCOUNTING MGR. =2~,~ + Growt~ op~rtun~ty (Or s~ne wit~ group tnsur- ance exit=ante to =nct~e financial statements, g~oup rating an0 analysis, accounling systems an0 buOgehng. Must ~ g~ manager Io ~ea0 the Grip O~a~tmen( financial ~fah~s. L-35~ MGR. CLAIM PROJECTS $24-27,~ I~at candidate ~s cu?ren¢ly #I or ~2 ~fson grog clamm 0~artment of small to m~mum size company ulilizing compuler systems su~rt. Proj- ects ,nvolve ~spitals, order carriers anO f~ral agencies. ~me travel =nvolv~ from ~ut~- east base. L-1552 GROUP CLAIM MGR. $18-~,~ New listing w~th prestige u~er Mz~est comoany. Will ~nage all ~e office anO fle}~ group Jnsur. once claims. Requires a ~r~, 5 years ex~ri- ence ~andling m~ical claims a~ s~e course~r~. L-1652 GROUP ~ORN~ ~,~ + ~Oup attorney s~ght wit~ a couple years ex~rv ence by this major u~r Mi~wsst c~oany. ~uld have ex~sure to marketing iSSues. ~ti~, licensing a~ ~eDart~nt lia=~. R~ ~rts to ~r~rate S~retary L-~3 LIFE UNDERWRITER Join Western r~ional office of this large a~ well- kno~ Eastern carrier I~al~ in ~aufitul M~ntam setting. ~ou~ ~ave 3+ years office iife u~rwriti~ ex~rlence Will ~ i~ C~eS u= to ~50.~. L-~ PRODUCT ~NALYST $ I Prefer ~gr~ wit~ s~e a~anc~ indusl~ st~ ms ~ f~ years ex~rience m marketing or I~hmcal pr~cl ~rk. Res~nseOle tot anafyz- i~ marketi~ infor~ti~, ¢om~titor's pr~ucts, I~islati~ and market research ~la ~thesst. L-~I GROUP UNDERWRITING MGR. $24-27,000 IOeal candidate w~lt have 0egree, 5+ years expe. trance, goo~ supervisory Skills and excellent c~ ~nicator. Will Oir~t all gr~ a~ ass~iati~ gt~ un~e~rillng funcli~s on n~ a~ in.force ~is for a ~hly r~a~ u~r M~sI client. L-2457 GROUP UNDERWR~INQ 5UPR. $~25,~ ~ ~ave sfr~g ~c~nical backgt~ in grOu~ life, LTD a~lor ~ical-fully insur~ or self- fun~. Must ~ave Su~rwso~ ex~rience or dem- ~strale~ supe~iso~ aD/Jity a~ ex~sure Io ~I~ n~ and rental busineSS O~ortunity to ~n an i~try lea0er in ~eal Northern I~ati~. L-2557 GROUP UNDERWRITER $1~24,~ ~ago area listi~ wil~ a rec~niz~ grou~ carrier. ~ ~ave several years experience u~e~riti~ gro~ life and healt~ pr~ts on a n~ a~ renewal ~sis. Will release ~alifieO c=~ates. L-~57 ASST. D~RECTOR, GROUP SALES $25-30,000 range Intereste~ in challenging ol:x~rtumty weth thriving P~iladelphia area organczahon? Here is a chance to assist the Group VP. act tn his behalf while he is out arKl basically lake over large account resrX~Sibility. R.1831 REGIONAL GROUP MKTG MANAGER $27,000 range Fine Pacdic Northwest O00orfun=ty for person with mimmum 5 years solid group sales success and the agility to train new raps =n sales techniques. Must nave prOven technical skills IO qualify. R-1232 REGIONAL DIRECTOR OF AGENCIES $20K + Car + Bonus Aggressive marketing company with growth pains now seeking Indiana resident w~tn life brokerage backgrounq tO develo~ a profitable production base in that state for them. Incentive pays 10%of premium Oevelope0 • R-3204 8RANCH MANAGER ¢~30,000 + Commissions Interested in building career ShODs in one of the following cities? Ol~n~ngs in Indianapolis, Bir- mingham. Rap~d City, BettenUOrf, Boise~ Corpus Christ~ and Pensacola. Sound financial planning background sought. R-1710 ASST. BENEFITS MANAGER $,.30,0OO + range MalOr Chicago area corporate enhty now seeking berson w~th strong credentials ~n the pension and welfare area predominantly, to loin their organi- zahon and cake on the #2 benefits resPOnsibdtty. Exceptional. R-1938 GROUP INSURANCE ANALYST To $20,000 area 1-2 years group ex~er~ence in underwrihng, claims or general administration, good math aptitude, communicative skdls sought by this major Chi. cago client Must be quick thinker/bright. Thriving OrganiZation. R-1641 CAREER GENERAL AGENT $40,000 + range Existing shop in Cincinnati with about 5 SOlid prO- ducats 0oing MDRT level or higher now o~)en and corrq3eny wants to fill in next two mo~ths. Pro(:luc- fion generates iodicated income range right now. A good one. R.1509 ADVANCEDSALESCONSULTANT To $24,000 Solid C~icago area compeny wire aggressive mar- keting plan now seeking perso~ with field sales backgroun~ interested in t~is type role. ExoOsure or aUaptability to pensions expected; wilt Oo Dr. of sale assistance. R.2342 LIFE MARKETING MANAGER $24-26,000 + Car + Bonus Major life affiliate in need of proven ability to gen- erate life prOOuct~n thru casualty sources in Cleveland, Des Molnes, St Louis. Nashville and nirmingham, Ala.. CLU and a0vanced sales know- ledge requisites. R,1814 MGR, SALES TRAINING $18-23,000 range Suburban Chicago opportunity fOr person with solid bersonai sales Ireck record interested tn home Office direCtion tO career. Can promote to greater duties in HO or into general agent's role in expanding sales force, R.14Q7 REGIONAL DIRECTOR OF AGENCIES $18-25,000 range Wisconsin based opf3ortunify for individual seeking agency department career qirection. Company re- quires l~roven recruiting ability, buOgetary respon- sibility. Will recruite PPGA'S in assigned territory ; quality company. R-3004 FSA/ASA $30-36,000 Just listed Chicago area of:~oortunity for FSA or strong ASA who is experienced in area of Ordinary product development. Will have a broad base of responsibility to incluae work on mergers and acquisitions. Excellent promotionallines. A-2022 ASAIFSA $25-35,000 Maior consulting firm is actively seeking an ASA close to Fe~lowsnip Or relatively new FSA with life co~pany experience. Must be knowleOgeable in area of tire prC~luct pricing and year-end work. Shouk3 be able fo work in an unstructureO consult- ing environment with very little day.tO-0ay direc- lion MiOwesL A-2023 ENROLLED ACTUARY $27.32,000 New listing with a well-known ar~ h~jhly regarOed lower Mk:~,west life company. Will handle aft a~. minislralion of their corporate retirement plans. compliance with ERISA, con'=pletion Of IRS, DOL and PI~.-~ forms and valuation of in force plans. Reports directly to SeniOr Officer in charge of Pen- sign Oedartment. A-2024 ACTUARIAL 3.,~l~r ANT $20-27,000 New listing with a ~estige company in very de. sirable Western U.S. location. Prefer cand~ates with 4.7 exams to work on forecasting and proiec- f~ons as related to financial results. Prior account- ing and/or income tax exposure ideal. A-2025 PENSION ACTUARY .$18.25,000 New listing w=tn a major mid-Atlantic insurance company for someone experienced in 0efined benefit plan valuations. Prefer 2-3 years experi- ence and 3 + exams with interest in becoming Enrolled, Will function in technical sul:K)ort role to Pension Dedartment. A-2026 ACTUARIAL ANALYST $17.25,000 Tremendous growth ocxx~rtunity wifh top rated bet Midwest company. Prefer strong math skills with 2-6 exams and some insurance experience Any exposure fo coml~uler or financial sfafemenf work ideal. Liberal relocation ~an. A-2027 STUDENT/ASSOCIATE $20-25,000 New England Opl~Ortunity for candidate with 4-6 exams and prior group insurance experience and some programming exposure. Will work with act~ a~f in charge of the Group LTD area of this well known company. • A,202~ Di|||miH||miH|HimnH|m|an|i|Hiningi N||nN|N|HNRnHiH|nHHBH|HiN|NRRHNHN| 4atlonal Underwriter, August 23, 1980 3

Convention Calendar William R. Busching, Dover, New Hampshire I guess what they say about New Englander~ is right. At least, we like to think of ourselves as being as ruggedly individualistic as our rocky Atlantic coastline. W~thout question, it was the oppor- tunity to dO my own thing that attracted me to the Franklin in 1976. Utilizing Franklin's Trainee Associate Program, I was able to become a million dollar producer in '77, my first full year with the company and our industry. For the very first time in my life. I was actually earning according to my potential. My income this year will be five times the salary I left in 1977. My personal sales now amount to several million dollars annually and I am extremely proud of the more than $20 million dollars protection annually provided by my agency team, now just two years old and growing. Of course, you don't have to hail from New England to want tO be recognized as an individual ...or to be given the chance to sell and build in this great industry. I urge you to let Franklin tell you about the opportunities in your area. Ronald L Kef~rli Phone (217) 528-2011 FranKun 0034 Oct. 20-22, Life Ins. Marketill~g a I1~01), InnS, ~rl~olum~ Howl Im~ Ot H~ ~, ~n F~ N~. l~-lt, N~ York S~ ~n. ~ Un~ ~ W~iu~n Ave., l~lO), fall ~ ~tn~ HoWl Pa~ d~ R~ ~n Anent, Tea. N~. ~t, ~u~ Aetusrt~ Club (e/o C~rl~ T. W~d~. ~ ~199, Wi~ In~ I~l), ~, W~d-~ New Md. Team Investigates Blue Shield Auditing Maryland Commissioner Edward $. Birrane J¢. ,hal formed a s~ecial vestigating team ~o study the audit- ing procedures o! Blue Shield. The team will concentrate on the billing procedures of doctors and cLLc~ics who allegedly chaxge higher rates for patients with insurance cov- erage than patients without the cov- erage. "We want to see what, if anTthing, we can do to avoid the unreasonable billing of Blue Shield on the part of certain doctors and clinics, and the subsequent payment of those unrea- sonable bills by Blue Shield," Mr. Birrane said. "If th~s a|leged practice ~, indeed, a continuing policy on the part some doctors and clinics, and oom- pounded by the unwitting coopera- tion of Blue Shield- the individual and group s~hscribers will eventu- ally suffe~. "those unreasonable payments will be factored in to future rate increases requested by the company and will be spread out to each subscriber," Mr. Birrane explained. The ¢o~nmissioner said the investi- gation may determine that certain changes be made in l~lue Shield con° tracts, calling for periodic company audits when no-called "double--bill- ing" ~s suspected. Mr, Birrane .pointed out that the investig~tion is being conducted to provide him with data for po,~ible steps to protect the individual Blue Shield subscribers. "Pcom what information we have now," Mr. Birrane said, "there ap- pears to be no violatio~ of the insur- ance code but in m}, position as reg- u|ator of the insurance industry I want to check out every aspect o! the situation. "I think we may be dealing with a question of ethics here," Mr. ~ne s~id, "or may,be I should say the lack of ethics or a~u.ses in certain gray" areas of health insurance cov- erage." '~'ht 1910 LIMK& Group and Pen- • 1o~ Markefln¢ Conference will be held Sept. 4-5 in Atlanta, Ga. The ¢orderence wil! feature thirty-two workshops, covering a broad spectrum of group and per~ion marketing topic~. The National Underwriter, August 23, 1980

Financial News. GEICO to 22.5% o~ the outstanding shares of Id H. John.son. chairman of CO Corp. and John J. Byrne, an, president and chief execu- f GEICO. jointly announced V'HMCO and G]~CO had agreed ~ciple that O~CO would ac- with AVEME~O's approval, up common stock of AVEMCO. Mr. Byrne stated that GF_~CO already owned' III,i00 shares of AVEhM~O common stock, or slightly ~ss than 5% of the current outstand- ing shares, and had entered into agreement with severa~ ir=titutional investors to purcha#e the 435,000 shares currently held by them or approximately 17% more. Mr. Johnson and Mr. Byrne noted that the agreement between AVEMCO and GEICO, ~ well as the GEICO agreement to purchase the additional shares, were subject to the approval o! the executive committee of AV~MCO board and to receipt of the required approval o! the comm~- sioner of Maryland. Mr. Johnson stated that the AVI~KCO executive committee would meet on Aug. I-5 to cortsider the agreement. Mr. Byrne advised th~ Introducing the KeyPact 150 Computone Systems, Inc. One Dunwoody Park, Dept. 876, Atlanta, Georgia 30338 ,n,o~.~.,~, ~ ~. For Immediate Information ~.,, .. ~ ~,~,.~ call J~ Fields toll fr~ at (800) 241-3946. ~ ~ ~. ~om~ny ....... ~ ~ K~e~ Addre~ ..... filing in Maryland as soon as possible and that A~CO would use its be~t efforts to assist GEICO in attaining the necessary approval, Messrs. Johnson and Byrne also re- ported that the proposed agreement contemplates that i'ollowing the pur- chase of the additional shares by Cr~rCO: (1) one ~erson designated by GEICO wo~ld be elected to the .,E1,"~C~O board; (2) during the four years ending July ~1, 1984, GEICO would not, among o~er things, ac- quire more .than 22.5% of the total combined voting power of AV-EMCO stock then outstanding or engage in a proxy cont~t and would vote i= holdings o~ AVF, MCO stock for t,l're directors nominated by AVE, MCO's board and in favor of any consolida- tion, merger or sale of assets recom- mended by the AVEMCO board and (3) during the three years ending Ju]'y ~I, 19~3. OEICO would not sell any of the AVEMCO voting securities ex~ept in a manner designed to dis- tribute its holding widely or with consent of the AV]~£CO boarcL Equitable Of Iowa Equitable of ~owa Companies and Massachusetts Casualty have reached an agreement in principle for Equi- table to acquire all the stock o! Mu- sachusetts C~ual~. The agr~ment p~vid~ for a tra~action in w~ sh~ ofM~sachuset~ C~lty com- mon st~k would be ~quired for $~0 ~r share in a ~ination of c~h and notes. M~a~et~ C~ua/ty s~reholders ~ll bear certain ex- pe~ of the tra~action. M~a~u- set~ C~ualty, which will ~me ~uitable subsidia~, currently 1~ shares ou~tanding, Dir~ of M~ach~et~ C~u~1ty said the ~m~ny tavo~ the tra~action and each ~r~tor in~vidu~y h~ ind~- cared h~ ~ntent to vote h~ shar~ ~a~r of the tradition. ~e tra~ac- tion will be ~ject to completion of a d~nitive a~ee~nt, approval by stoc~olders of ~sach~t~ C~ual- ty, the ~ach~et~ ~mm~ioner, and certain other ~nditions. It ~s ex- pected to be completed in D~er. ~ach~et~ C~ualty, with ~e~ over $61 millio~ writ~ non-cancel- lab~e and guarant~d renewable • ~lity income ~verage and ~ cens~ in a~ states except ~ka. 1979, it had net operating inc~e ~,874,0~ with to~l revenue o~ ~0,153. Amer/can Educators l~ncbJ Corp. The company has reached agree- merits to acquire two ~m~ll insurance companies in exchange for an a~- greg~ of up to 370,000 shares of its capi.tal stock, One of the agreements provides for ~n exchange of ~17,567 • ~hares of American F~ucator~ ~tock for all of the issued a~d outstanding capital stock of Colurr~bua Standard Life, a North Caruiin~ insurer. The transaction is $~bject to the approval o! ~he North Carolina commissioner of insuranc~ and the receipt by Amer- ican Educators of at least 90% of the issued and out.standing capital stock of Columbus Standard. The second a~reernent cover~ the acquisition of American Investor~ Irm. Co. of Moun- tain ~rook, Ala., in a trar~saction whereby American Investor~ be merged into American F.~lucators Li~,e in exchange for the capital stock of American Educa- tors Financial Corp. The transaction i~ subject to the approval of the The National Underwriter, August 23, 1980

department o~f insurance stockholders of American Ins. Co. The~e two acqul- ~ll increase the as.sets of Educators Financial by note than $I million and :s life insurance in force by ~tely $I0 million. On Aug. 3, :losing bid and asked prices ,teal stock, par value $I per American Educators Finan- $I,~ and $1%. respectively. ration presently has 1.7 mil- 's of its capital stock out- shareholder of ARLAC will receive 1.315 shares of ABIG common stock for each share of ABLAC common stock, and each common shareholder of ABIC will receive 1.030 shares of ABIG common stock for each share of ABIC common stock. Cash will be paid in lieu of fractional shares. For Federal income tax purposes, no gain or loss will be recognized by share- holders of A,B/-~AC and A.BIC upon exchange of their common stock of ABLAC and ABIC for common stock of A.BIG, except for cash received in lieu of fractional shares. Implementation of the holding com- pany reorganization is subject to a number of condition, including ap- proval by the Florida department and by the common shareholders of ABLAC and ABIC. A public hearing to consider the fairness of the holding company re- organization to shareholders of ABLAC and ABIC will be held on Sept. 5, 1980. at I0 o'clock a.m. at the offices of the Florida department of insurance, in Room 33~B of the J. Ed- win Larson Building, Tallahassee, Fla. If the Florida department of insur- ance grants its approval, special meet- ings of the shareholders of A.BLAC and ABIC will be held on Oct. 31, 1980, st which the agreement and plan of reorganization and related matters will be submitted for shareholder ap- rroval. The affirmative aoproval of the shareholders of 75% of the com- mon stock of ABLAC and 75% of the common stock of/kBIC is required in order to implement the holding com- pany reorganization. rd Mineral~ & Chemicals NN Corp. said that their managements have reached in principle to offer NN sharehotders two alterna- art of the proposed merger 4N would become an Engel- diary. Under the first alter- gelhard would make a cash )f $40 for each outstanding ~N $3.60 Series A preferred under the second alterna- ;uch shares would remain g without change in terrns. :~e, all outstanding shares ~mon stock of NN would be into Engelhard common ernatives would require the ~ vote of a majority of all g shares of NN preferred common stock voting to- ~t the proposal to convert ading NN preferred shar~ would also require the )re of the holders of at least ; of the preferred shares ~arately. tion, consummation of , subject to various other including execution of a agreement satisfactory to )any's board of directors by ~ailing of NN's proxy state- Oct. 22, and approvals by • authorities. I'rud~ntlal ial has purchased The Hya~t Square in San Francisco hen $7{~ million from Mas- Mutual IAfe. The purchase ~0-room hotel is the first ~ for Prudentiars new ~acil- asion fund property inve,st- :SAII (Prudential Invest- ,state Accounts) ~atior, al use account. The hotel will :o be operated under the ~aster lease with the Hyatt ~ed by Ma.~achusetts Mu- 13. ~erican Bankers Life n Bankers Life 'Assurance rids (A.BI.,AC) and Ameri- era Ins. Co. of Florida ave entered into an agree° l plan of reorganization su,bject to certain condi- of the common ~tock of d ABIC wou'ld be owned by :'ormed holding company, Bankers Ins. Group, Inc. di~g company reorganiza- i be accomplished' a~ a re- exchange of all of the out- :ommon stock of ABL,AC for common stock of ABIG .s of exchange ratios deter- the boards of A/~,LAC and the as~Lstance of separate, ~t fln&ncial advisers retain- board of each company. lding company reorganiza- .p.lemented, each common ~al Underwriter, August 23, 1980 Rapid response insures business. When a policyholder calls your home office with a request, it's direct contact in its simplest form. How well you comply with that request can shape the future of your entire company. An effective policyholder service operation is far from simple. " It must combine advanced communications and information management; speed and accuracy; human understanding and technical expertise. The Bell System has studied such operations, and we're convinced that we can simplif3, yours with a customized system featuring our microprocessor-based Dimension* PBX. This system automates the directing, answering, forwarding and conferencing of policyholder calls. It speeds the collection of information so that most questions can be answered on the spot. It increases the productivity of your staff, reduces caller complaints. When outgoing calls are made to policyholders-to change dividend options, upgrade coverage or keep policies from lapsing-the DimenSion PBX can route them automatically on the least expensive circuits. It can also give a full accounting of calls for allocating costs. Applying knowledge of advanced communications to specialized information management needs-that's our business. A call to your Bell Account Executive can put our knowledge to work for your business. The knowledge business

Credit Insurer Fined $40,000 In Michigan i.ng Michigan Ccenmk¢$ioner ~--. C. ey has fl.ncd a Southfleld company and i~ ai~liates suspended their Licenses on ,A basis for six month~, and ed the flrn~ to cede and desist ~ractiees that violate the at.ate ance code. ~ned in the order were American Life o! Southflekl, its agency, American Way Service Corp., company president Thoma~ A. War- m~s, A~o named was an ~liate, ~e~n Way ~e of ~i~na. Mr. Mavkey ~icted the lice~es Of ~erican Way ~fe and i~ tot ~ days, ~orbidding th~ to credit ~ran~ group contrac~ or s~licit n~ group ~t insur~ce ¢~ac~ during t~t time. The action was ,believed to be the Rrst taken agairmt a company for dis- ciplinary rather than financial rea- sons, acoording to the insurance de- partment. Mr. Mackay said representatives of Amea'ican Way made "fal~e, mali- ciously critical and derogatory" atate- "ment~ about the financial coxr~ition of a competitor, Dealers Financial While Monthly. B~m~ con. gO". ". ! :-':'.~i'.The. Cos.t Of Living Rider also provides e special "Catch-. ~.:~-~:i.~.al~,,'.:,.~e~ture thatallows I~nefit Increases of more than :;~:~ ~'6% uhder ~erta'm ~;-~ges in the Consume~ Price Index. -;'~,-':.morv'about.this.ex~ti~.new rideL contact the Provident Services Inc., and violated the Mich/- ~-= gan uniform trade practices act refusing to i.~sue credit ir~uranceUUL~ coverage to individua~ be~ the-- -- ~es of 55 and ~. ~erican Way sold g~up polici~ to a~t~obile dealers, who in offered credit l~fe i~urance contra~ to ~ons who ~u~t ca~ at deale~i~. Mr. Mackay sa~ Am~ican Way ~ rat~ ~th the i~urance de~rt- merit b~ on insuring individua~ t~o~gh age 64. It th~ m~e at g9 agreemen~ with autom~ile re~t~ agenci~ by which it re~d to i~ure perso~ depending on the ~ic~ ag~ement, over age 55, 58, 59, ~ or ~ De~ers were offered ~gh~ ~mm~iov~ by ~erican Way if th~ ent~ed the ~criminato~ ~men~ Mr. Mackay He said t~ ~mpa~ were ~ed $1~,~0 for m~ing ~e ~t were ~ging to the com~ng ag~ and $25,~0 for ~i~ating ~t o~er i~v~ua~ in the ~g ot ~t instant. American College Begins Search For New President Dr. John T. Fey, ¢~sirman o~ the American College at Bryn Mawr, Pa., h~ announced the formation o~ a presidential search committee to be- ~n the search and selection pro~es~ which w//1 c~lminate in the nam/n~ of the college's next president. According to Dr. 'Fey, "It i~ the hope o! the tru~tee~ that.., an ztand~ng successor to Dr. Davi~ W. Gregg ~an be chosen ~o be~in le~dero Gre~, ~, will by that time have serve& for ~/ year~ ~s president. We are hopet~ that we ~ ~ul~l request to move into a faculty poai- tion for hi~ ~emaining years ~ the cnil~ge." In ad~Ution to Dr. Fey, o! the EquRable ~ciety, other com- mitres men'~er~ are: Robert A. ~ chairman, Prudenfia/; Jarrett L. Dav~ president, American SoeieW C~U; 3nseph C. Ladd, president, deI~ty Mutual Life; Dr. Sidney Marland, former U.S. Assistant retary for Education; Dr. Louis Per~, ~resider~ ~t~dard In& Co.; I-I~'~/s ~ Wofford J~ former presi- dent of Bryn Mawr Co,age; and C'h~les J'. ~immerman, retired chah'- men at Connecticut Mutual Li~e. Dr. Bernard In~ter of Pb.ilade~phia, known ~or h~ organia.ational ~ork wi~.h colleges and ~niversit~es, w~. act ~ oonsulCant to the committee. Small Co. Pension Plans Begin Triennial Reports The Department o! Labor, in con- Jun~io~ with the Internal Revenue ,~ervice and the Pension Benefit Guar- an~ Corp., has ~opted reporting forn~ that will enable small employe pension end we/fare ,benefit plans ject to the Employee Retirement In- come ~ecurity ,Act (]~T~A.) to file a full financial report once every three year~ rat~er than annuatly. The plans will die a brief re~stration statement ~n the intervening year~ Generally, the triennial filing tern wll} be u~ed by adminLstrator~ of pension or we~are benefl~ plans with fewer than 100 participants at the beginning of the plan year. National Uncletwrlter, August 23, 1980

Pays To Stay Healthy Under New Plan By AL HAGGF.R'I~ 's so simple it'~ alm~t ridi~o~." at's t~ ~y o~ia~ in Cahfor- Mend~mo County ~I d~tri~ ibe an inno~tive new heath ~- ~ p~n th~ d~ w~ch pays ~e ~or s~yi~ beMthy. ~ pl~ w~ ~ been ~n o~ra- ~or Mm~t a ye~ and offe~ a cr~t to ~holders who ~e lai~ for • ye~, ~ attra~tin~ medical i.nsurance policy which is part of the Mendocino plan. "It's a unique concept," Mr. B~rlas said. '~rhe sub- scri.bors can get something out of it. Before, all they got was a ~ringe bene- fit. Now they get a real behest." The plan w~rl~ this way: The $2~e,000-a-year health insur- ance costs of the district were spur 40-60. 40% about $4~0,0fl0, which amounts to ~ a worker, wa~ put into an account out of .which clain'~ up to $500 are paid. The remaining $120,000 buys the major medical cov- erage. It an employe is i~jured and files a claim ~or $200, the claim is paid from the $64~ set aside for each em- ploye in a local account. If that em- ploye files no other claim during the year, he or she has a $300 credi'~ which is paid upon retirement or leaving tion from all parts of the country. iries ~ere aren't more than aeven or states from which we haven't ome inquiry," said Dan Nicbol~s, : information ofltcer for the I district, heackluartered in Lrk.iah. id the ir~quiries have come from •tive aides, other achool districts srge companies with as many ~ employes. ~k o! A~nerica i.s reportedly con- ng a pilot program for 1,000 o! .0(}0 Cahfornia employes. ~ "stay-weLl" health ~nsurance was developed ~ Louis Del.sol, .'t superintendent, and Ed Nicker° as.~stant superintendent, in re- e to an assignment from the t board to come up with a plan ~mter revenue lo.s.ses from the ,siti~n I{) tax cut. ile Mr. DeL~ol and Mr. Nicker- agree that the plan can't be ed an unqt~alified success on the o! one year's experience, they ,r~Ident it ,will continue to work. ir view is shared by ~ Barlas, .~ president with Blue Shield of rnia. which ~,,rites the major Reports UCKY CENTRA.L LIFE-- try reported tots! life insttranee :or the ~ ,~x were a record mfl.Uon, c~mpared to ~ 4or the corresponding period " ago. Fir~t-lr~l~ net earnin~ ted to ~5 n'./lllon, or $1.33 per • s against SaL2 million, or $1.67 ~r~, a year ago. Total inoome ~-'~t ~ix months amounted to hi.Ilion, compared to ~5.3 rail- year ago. Pz~ium i~come was m/I/ion, while investment in- ~o.se from ~9.7 million to $10.8 i..T.~e ~n~urance in force a~ the ~he d~'st h~ to{aled a record ~llion, a gain of 12% over the f $3.~ ~illion a year agO, ~ t ~'~ en@ of the first ted to $42$.$ mLllion, con~ared ~.9 million at the close of the ~eriod in I~9. eDARD SECuILrr~The corn- •ported n~ income of $1,829,- .38 ~per stare) ~- the ~ six , compared to $1,014,881 (74 ;r shm-e), including an extraor- credit of $68,726, in 1979. -ore operations (before net re- ;ains (losses) on investments) ed to $I,08.5,157 compared ~ ~or '~he con'@arable peri~i • Lndi~dual li~e insurance in ~creased to $1.6~5 hie.lion, Six- individual li{e insurance sales .,d 70.1% to ~d04.2 million, rat year premi.m., including ~ incre~ed 4Z5% to Ional Underwriter, August 23, Now, an option from the USLIFE family that cuts premium-paying time. Dramatically. It's USLIFE's Elective Paid-Up option. An innovation we pioneered to give your clients more paid-up life insurance in much =less time. It's also an option your clients don't pay extra for when they buy Executive 85, Business Whole Life, or other selected USLIFE non-participating perma- nent plans. As you'll see, this is one option with a very obvious benefit. Using a $100,000 Business Whole Life policy as an example, a male, age 0, would have a fully paid-up policy in just 9 years.* Yes, just 9 yearsl And the results at older of the $500 acccues annually. Thus, an employe with $500 in claims over three years, could collect $I,000 on leaving the district's employment• Of course, ~vhen claim~ exceed f~ for any one employe, the iv, surance company pays the excel. Mr. Deisol said the plan is creating a new heaRh consciousnes* among employee ,who stand to gain financial- ly from good health. They spoke of employes giving up smoking, jogging and going on apecial diets. (Ex~cutrv~ 8S not avsilsb, le in aH life is a family affair 125 Miide~ Lane. New YOtL NY 1003~ 1980 Insurance Compeny 312-399-6500 212-425-8010 General Uniled 11 ages are just as dramatic. For instance: At age 35, a Business Whole Life policy would be paid up in a fast 15 yearsl* : It's all possible because USLIFE's Elective Paid-Up option permits an exchange to a single premium whole life policy, based on the highest interest assumption allowed. Want more information or an illustra- tion? Just write or call the USLIFE company nearest you. You'll see how we help our Producers-- and their clients--get a lot more out of life. Faster.

Editorial Comment .t week, we commented on the ~at the life industry today ~tself facing the ~me type oriented challenges that have .'onfronted property-casualty era. But what does that mean .~ future of the industry? :e are come ~uggestions on point by W. Dougias Bell, tent and chief executive of Mutual Life. What follows adaptation of continents made ~r. Bell a while back, before ~merican Council of Life In- • a long time those of us in fe insurance busine~ tended ay in the background. We ted -- perhaps indifferently, ~ps complacently -- while industries came under fire vere forced to alter the way did business. :ause we were allowed to re- in the background, perhaps ~ to believe that we were me, that what was happening ~er businesses and to parts of nsurance business, such as ~obile insurance, couldn't m to us in the fine old ante business. Well, i/ we ~ht it couldn't happen to us, nt developments make it clear ere wrong. tay, the lHe insurance buai- stands on center stage, and ~ being looked at and ex- ed and scrutinized as never A New Ballgame before. Federal and state regula- tory agencies that never used to bother us are now breathing down our neck~. Congress and the State legislatures are proposing, and passing, more and more laws to control more and more of our bus- Up to now, at least, we've done a pretty good job meeting the chal- lenges our business has faced. We've had outstanding leadership from our people throughout the business and from the Council's st~But we've a~o been lucky, and ~t I look ahead to the future, it seems clear to me that we're going to need more than luck to get us through. The point is that we are no longer immune from society's pressures. If we want to survive and prosper, then we must better ourselves to do Step one i3 our need to encour- age greater participation and closer personal contacts between chief executive officers and legi~ lators, both at the state and Fed- eral levels, on an ongoing basis-- not just when we have a problem. And here I would underline the words "chief executive officers," for the power structure ef govern- ment wants to talk to the power str~cture of business. We can hire all the lobbyists and public rela- tions and advertising people we want. We need these people. But when the background and techni- cal work has been completed, we cannot escape the fact that the most effective individual in any life insurance company when it comes to dea~ng with government is the chief executive officer. Step two is an expansion of step one. It i~ not enough for us to improve our personal communicao tions with members of legislatures and regulatory bodies. We need to do the same thing with influen- tial members of the community. We need to communicate with the news media, with our policyhold- ers, with employes and agents, with CEOs outside our business, with community leaders, with special interest groups, with other trade associations, and with the public at large. Step three is the need for us to come together in our thinking, policies and programs. I have be* come increasingly concerned with the wide divergency of opinions that is being advanced to key leg- lalative, ~egulatory and other bod- ies. In too many cases, we are presenting less than a united ~ront. Step four is perhaps the most important of all--the need for us, u an industry, to try. to correct whatever abuses or bad business practice~ may exist in our busi- ness--and to do it now before the regulators step in and kill a lot of good along with the bad. Cl~m~ w. Hamm~, S-t,m D~ Anoth+r Perspe~t~veOOa~-~O Market Model Managerial Aid By ~L ANTHONY AUTIN Jr. Mak~ sense out of today's market- ing scene calk ~or a~ the s~ ~~ t.~t life ~y ~ag~ c~ m~ter. ,~- no~e a~ ~ far ~m ~ on their f~ ~r t~ ~ent ~n~tio~ a~ put~ng ex- treme ~ur~ on the ~uying ~et~r th~ ~ will e~ ~ e~g ma~ets a~ w~t e~ ~ ~e ~i~c~ imu~. It ~ to ~k ~he~ ~ to ~ve a ~nce~ ~el of how m~k~ v~op and ~ntra~. ~d~n~ to ~ny g~h and d~y ~tt~ ~ the ~$ic '~" c~e. ~ ~uent~ ~ natur~ ~ep~ pa~ ~ra~e~ c~ng rote ~ ~ or d~ay over the ~te ~¢le of ~ orgen~m an~ ~ h~p~ ia under~anding market d~op~n~. To be~ let's ~r t~ growth ~ a ~~ ~ ma~e~ ~a~ can ~]y s~c exampl~ ~ see if ~e~ ex~e~e tra~ that d~d h~e. A new m~et ~g.i~, tot our p~- ~ ~th t~ s~e of a n~ product in ~e e~ting or a n~ marketplace or ~ the ~e of ~ ex~g p~duct ~ • n~ market~a~. ~e i~ng ~m~ny ~ t~ one w~ch ge~ ~e ~ ~i~nt l~ of ~1~ in si~afi~ Oth~ ~m~ni~ may have ~eove~ the n~ pro~ ~ ~et ~ut ~ete 1~ eff~e in ~ing spl~h in ~he ~e initiM vo~me o[ ~les is in ~n~r~t to ~tal ind~t~ saI~, and ~~e c~ the ~a~-up ph~e. D~ing i~ ~e inno~ting ~mpany h~ • ~rtual ~y in o~rtunity ~ in fa¢t. M~t o~er ~mp~ies ~e either unaware o[ the manet or have not yet d~ide~ to enter iL ~e w~ ~ve made the d~ion to enter w~ r~t in the next ~e o~ ~ ~nd ~e of ~th can be ¢a$1~ the e~ly rea~ion entry Those ~mpani~ with qui~ rea~ion t~ en~ the ~ket here a,nd joy rapid sat~ ~ow~ a~g ~th the ~no~ting ~m~ny. A naturM or ~e~te~ ~lm d~and ~ develop, get~ng ~e ~ attention o[ the ~al- ~ of the ~st~. ~ore serio~ tention ~ ~e[ng ~id to w~ ~ now ~r~i~e~ ~ a ~u~uL d~irable ~et ~d many ~i~ st~ ~ ~n~nan~ ~i~n ent~ ph~ ~en~ the ~riod o[ rapid a~regate ~h in ~e mar- ~e~ ~e ~k ~ the ind~t~ ge~ ~e ba~ag~" a~ joip~ the ear~ ~i~. ~e aggregate Kro~h ~ ~eat~ in~vidu~ ~mpany t~ that enjoy~ in ~e p~or ph~e. ~ere ~ m~e ~fi~ion ~w ~e easier sal~ ~1 ~ve b~n ~ r~rative ~ion ent~ The National Unde~rlter, August 23,

The Nonsmoker As A Preferred Risk' |y JO~F..PH E, CROWN~ ~d KOBF.~T D. S~ ~ent pub~Lio~widely ~e ne~ m~ S~ M~ fe's no~mok~ ~t ~ ~cre~ed ~ ~e ~ce y's mter~t ~ pr~e~d ~ ~ ~ ~ p~i~, ~ non- • produ~ e~ly d~i~ ~ s~ pre- ~ ~e ~ ~ace ~o~ (e.g. ~,0~ or ~ an~ ~ ~me ~ a lower ~ ~e ~e~i~g deb~ ~ s~n~d ~ ~e~er or not ~s~ ~ smok~ ~g~ett~ zen no ~de~t~g co~der- ~y, however, ~e~ ~k .~ ~ often e~m~ w~ rett~mo~g ~Y one o~ u~em~ ~o~ ~at ~y p~du~ ~ac~m (e.g. ~ of c~h v~- ~ p~ ~g ~) ~d ~pse ~ ~d ~v~ent ;s rat~) ~ ~uenca ~e level r~e~ ~ ~o~L ~ ~g ~e ~ offe~ ~ ~i~ ~t ~ve o~y a no~mok- ~ement ~ ~e ~o~ of :i~ ~t ~ have height/ ~d/or mo~ ~d ~r~e~ ~d~ ~ ~e ~ ~ ~ ~ ~u~ on ~e 1~ ~ ~he discount. An exception to this may exist at the older ~e ~ic~ ~i~ N~oke~ D~ V~o~ ~e ~ce comp~ ~ve provided ~o~ to no~mok- e~ over ~e p~t I~ ye~ ~ pion~ offer~g no~mok~ ~co~ ~ 19~ ~hed by ~e Nation~ Unde~ter Co.) ~t~ o~y S~te Mut~ Mutual ~ity ~e ~o~ over ~0 ~mp~ w~ ~t~ ~ ~e b~ for no~mo~ H~ond ~d ~e re~£ of no~mo~g on ~ ~e mo~Hty. ~en S~te Mu~'s no~moker ~t ~ce w~ p~b~hed ~te ~ 19~9, ~ ~t con~bu~on w~ rode ~e ~ r~ement for q~- ~on for a no~mok~ ~t cig~ett~ have not ~n smoked ~ ~e 12 ~n~ p~or ~p~catio~ Pipe ~d cig~ To ~t~e ~ ~ app~t ~ for ~e ~o~ a qu~tion as, "Have you amoked cigarettes in the last 12 month~?" is asked. Unless a~ inspection re,port is requested part of the normal procedure for the case, no further investigation about smoking habits is generally per- formed. If an inspection report is part of the regular underwriting process, the ir,~pecting company can be d/rec- ted to inquire about smoking h~bits. Since there is no real increase in underwriting expenses, many compa- nies allow the discount even for is- sues with low face amounts. There is some concern that appli- cants will not ~oe truthful in answer- ing the smolrAng question. However, a number of companies who sell through their own agent=, rat~er than through broker~ have reported that their n~¢ of business between smok- ers and nonsmoker~ seems to be about what they expected. The re=u/t= could be d~erent for companies through broke~. In any case, when determining the level of the ¢tiscount, some cons/deration should be given to the ~ibiLity of insured= being untruthful a~out their smoking habits. A compromise ~requently made tween a straight nonsmoker discount and • rigoro~ ~referred z~k design is to add a "builcr requirement to the nonsmoking requirement. The build requirement is ~enerally set =o that a nonsmok~ng applicant will qualify/~ his or hez we/~ht ~ not exceed about 10% to 15% above the average for hi= or her height. The nonsmoking requirement is usually the same as previo~ly discussed. Adding the build requfrement ha= the advantage of improving the ex. ~ mortalRy resumes arid, presmnab~y ~neres~u~ the ~ve~ of ~he discount. A disadvantage is that a nonsmoker whose weight is sl/~htly over the I/mR may feel he is paying a ~heav~' price for a sn~s~l amount of exce~ baggage. ~n addition to no-cigarette-smoking and a build lira/teflon, a more rigor- ous preferred risk design may include one or more of the fol/owing requfreo I. Medical examination. 2. Favorable family medical his- tory, with no deaths of parents or sibling from card~iov'a.~'ular dise~ prior to age ~0. 3. Fevorab~ ~ereona/ medlca/ h~. tory with no incidents of elevated blood pressure, or elevated blood auo 4, Good automobile d~iving record. 5. Lk~t~d ak-oholic ~evera~e con. sumpt~on. 6. Regular program of exercise. When the preferred risk class is de- ~h~ed by a set of criteria such as those ~isted above, a ~h minimum polic~ Co~'d o~ Page I| nically S~.aking How To Cope With Surging Business By ~O~='~TA CAS~Y tcial ~atinn~l IAfe ~ N~ ~ ex~d~ i~ o~atio~ to en ~ ~om ~,~ ~ m~ .~Ide~ Be~ ~ ~ti~tio~ we ha~ ~le to ~ w~t w~d have tidM wave M pa~ ~ge ~ ~ at ~n~M ~t sever~ ye~s ~d ~ve m ~l~d of ~o~ had conve~ ~m a pa~r ~ing to a mi~ ~ra~on. ~ -~ t~ ~ploy~ were ab~ to ~e app~o~ with ~eat- en~ ~ l~ ~ of I~ or to r~r~ ~I of ~r ~ ~ton ~li~Iders ~uld en an ~d~ t~ ~ m~t ~t~ ~ ~y ~t or ~ed e ~d ke~ t~ ~d s~em ~ ~we~d~re~n om of sWra~e sp~," ~ ~oller, ~nt se~et~ ~d ~ ~ ~e ~II ~ ~th rent ~r~io~ r~r~ t~ke I0% ~ ~ s~ pre~o~y . We ~d ~e ad~ conve- ~ows ~ ~ ~e o~ s~ mor~ •ely w~ hel~ ~ re~e d~ ~ ~ of ~,~ a • sey k communications vice t of Beneficial N~lonal Llf~ The microfilm department bes a ful) time staff" of 15, or approximately o~e person for every 80,000 po~icy- holders---compared with l~l when t~re were fo~ staff me~ or one for ~e~ 1~0 ~licy~ld~. app~z~tely ~% g~n ~ l~r p~i~ ~ re~ One of the ~ re~ for compan~s e~nent~ ~w~ h~ been o~ ~-~k~ing p~m. We s~ t~e and ~a~ ~n~ g~u~ of ~e w~ ~e ~t~ ~ a ~n ~ter~ -- ~tomers ~ a ~lar b~m~ hol~s of a cr~ ~ m~ of a ~f~ion~ or ~ ~ciation or ~, de~i- to~ of a sa~n~ ba~ eW. ~e pla~ are sold t~u~ d~t o~an~tio~ repr~t~g the inter~t of the ~a~ ~ the ~p. ~e le~rs~p that pionee~ ~ ~eting p~gr~ ~ r~le for ~nverting o~ r~ord- k~pin~ ~ a ~c~m Pr~ident ~ank C~ w~ concerned ~ut p~t~t~g i~um~e r~ fr~ d~t~ion ~y ~e or ~ esgeHy antt~te~ ~ti~al ~ He want~ to ~ ~ that the ~m- ~ny ~d ~e a a~t of new b~eM w~n it ~o~ ~neflci~ ~o~k~ with E~n K~ to develop o~ ~ operati~ and ~]e~ ~p~t for o~ ~Jcu- lar needs. W~t~ the aid of 1~ temlx~- rary en~loyes, we converted the 50,- 000 o~ ~ ~ minim in j~ ten wee~. ~e crew so~ed each er file, p~ dup~cate d~en~ ~v~ ~pl~, and orga~ed ~ for ~~. ~ ~k ~el~nt ~ ~ ~re ~ for t~ ~nv~s~ ~wi~ the o~raW~ ~ more ~an 200 d~umen~ a ~ute on- to 10~f~t ~ of m~ ~e ~r ~lde~ we~ retained for year~ a~ ~en d~troye~ a t~t ~ s~ll in eff~t for new ~in~ ~ ~ w~ ~en cut ~ert~ ~ mi~o~ ja~e~ T~ay ~ 16 ~lDon docent ~ag~ in ~e one ~lio~ ~ at Beneficial 6-inch t.ra~rent ja~e~ h~ up to- ~0 do~nt i~. ~e ~r~ 1,~ ~Wme~ ~n ~ kept ~n ~ ~e drawer the s~e ~ a ~e new o~ration ~ the added feature o~ ~ntainin~ ~ of an indi- Wdual cu~omer's ~r~ in a s~n~le jackeh It elimlnat~ lon~ ~a~es for r~r~ and en~n¢~ the ~m- ~ny'n ~wmer ser~. N~ ~n a ~ho~er cal~ for informatio~ the ~aff can r~pi~y ret~eve ~e entre ~e. To p~vent I~ ~ ~placin~ of r~r~, the ~ are prenum~red ~li~ a~ ~lor~ded wi~ ~e ~lor stripe on top chan~inff every thou- sand. Every hundred ~les have a different notch on top to help keep them in proper group=. A rotating ~e provides pushJbutton access to all recorck. ~Before, it took five minutes to ~ a paper file, provided i.t had not been misplaced," comments IVY, Col- let. '*/'he new ~ystem en~ble~ em- ployes to retrieve policy information in just seconds." Update~ are ~dded by microi~lmir=g any new documents and inserting them into the Jacket with the parson's other records. Original ~l]e= never leave the micro- ~ department, ~ut enlarged paper copies and d~azo microfilm dlAp]Jcates are used to dissen~inate information to executives and underwriter~ on other floors. A single d~azo duplicate of an entire film file can be made in leas thar~ a minute. There are 50 microfilm reeder~ d~tr~buted Jn convenieot places around the building for con- venlent access to the fil~ed R1es. The e~y acce.~ to comI:]ete policy helps the underwritera to give their client= better sarv/ce. '~Currently we proces~ more than 200,000 application~ for accident, health, ant} life ic.~urance a year," aa~ds '~s. Coller. "In addition to the large labor sav~ng and space savin& micro~llrr= gives u= ccnvenlent access to all our records, and we feel secure that nothing wil2 ever be lost or de- stroyed." onal Underwriter, August ~3, 1980 13