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HomeMy WebLinkAboutResolution - 2019-R0347 - Dearborn Life Insurance - 09_24_2019Resolution No. 2019-RO347 Item No. 6.30 E - � 4 "T*03111111 [•7a� BE 1T RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK: THAT the Mayor of the City of Lubbock is hereby authorized and directed to execute for and on behalf of the City of Lubbock, an Agreement by and between the City of Lubbock and Dearborn National Life Insurance Company for term life and accidental death and dismemberment (ADD) life insurance for full-time employees in the amount of $10,000 per employee and to offer voluntary supplemental life insurance, ADD insurance, Long Term Disability Insurance, and Accident Insurance for eligible employees and their dependents with Dearborn National Life Insurance Company. Said Agreement is attached hereto and incorporated in this resolution as if fully set forth herein and shall be included in the minutes of the City Council; and THAT the City Manager may execute any routine documents and forms associated with said insurance coverage. Passed by the City Council this September 24, 2019 DANIEL M. POPE, MAYOR ATTEST: roo LU.4 I Re cca Garza, City Secreta APPROVE] AS TO -CONTENT: Leisa Hutcheson, Director of Human Resources and Risk Management opAl W__All PA! BM ► 1 � ccdocs/RES. Dearborn Nat. Life Insurance Company September 10, 2019 �t Resolution No. 2019-RO347 CONTRACT City of Lubbock, TX Ancillary Benefits Plan for City Employees RFP 19 -14820 -TF This Service Agreement (this "Agreement") is entered into as of the 1 Ith day of September, 2019, ("Effective Date") by and between Dearborn Life Insurance Company (the Company), and the City of Lubbock (the "City"). RECITALS WHEREAS, the City has issued a Request for Proposals 19 -14820 -TF Ancillary Benefits Plan for City Employees. WHEREAS, the proposal submitted by the Company has been selected as the proposal which best meets the needs of the City for this service; and WHEREAS, Company desires to perform as an independent Company to provide Ancillary Benefits upon terms and conditions maintained in this Agreement; and NOW THEREFORE, for and in consideration of the mutual promises contained herein, the City and Company agree as follows: City and Company acknowledge the Agreement consists of the following exhibits which are attached hereto and incorporated herein by reference, listed in their order of priority in the event of inconsistent or contradictory provisions: 1. This Agreement 2. Exhibit A — Final Price Sheet 3. Exhibit B — General Requirements 4. Exhibit C — Sample Policies In the event of any conflict with respect to the insurance relationship between the Parties both provided by the insurance policies filed with and approved by the state authority ("Policies") and all matters relating thereto, the Policies take precedence over all documents identified above. Scope of Work Company shall provide the services that are specified in Exhibit B. The Company shall comply with all the applicable requirements set forth in Exhibit A and B attached hereto. Article 1 Services 1.1 Company agrees to perform for the City in accord with the terms of the Agreement, including the attached Exhibits, and the sample Policies. The City agrees to pay the amounts stated in Exhibit A, to Company for performing services. 1.2 Company shall use reasonable efforts to render Services under this Agreement in a professional and business -like manner and in accordance with the standards and practices recognized in the industry. { Non -appropriation clause. All funds for payment by the City under this Agreement for Ancillary Benefits are subject to the availability of an annual appropriation for this purpose by the City. In the event of non -appropriation of funds by the City Council of the City of Lubbock for the ancillary benefits provided under the Agreement, the City will terminate that portion of the Agreement, without termination charge or other liability, on the last day of the then -current fiscal year or when the appropriation made for the then -current year for the goods or services covered by this Agreement is spent, whichever event occurs first. If at any time funds are not appropriated for the continuance of this Agreement, cancellation shall be accepted by the Company on thirty (30) days prior written notice, but failure to give such notice shall be of no effect and the City shall not be obligated under this Agreement beyond the date of termination. Article 2 Miscellaneous. 2.1 This Agreement is made in the State of Texas and shall for all purposes be construed in accordance with the laws of said State, without reference to choice of law provisions. Venue of any action related to this Agreement is proper in Lubbock, Texas. 2.2 This Agreement, including its Exhibits, and the sample Policies set forth the entire agreement between the parties with respect to the subject matter hereof. Understandings, agreements, representations, or warranties not contained in the Agreement, including the Exhibits, or as written amendment hereto, shall not be binding on either party. Except as provided herein, no alteration of any terms, conditions, delivery, price quality, or specifications of this Agreement, including its Exhibits, shall be binding on either party without the written consent of both parties. The insurance relationship between the Parties will be as set forth in the policy of insurance which is filed with and approved by the State of Texas. 2.3 This Agreement may be executed in counterparts, each of which shall be deemed an original. 2.4 In the event any provision of this Agreement is held illegal or invalid, the remaining provisions of this Agreement shall not be affected thereby. 2.5 The waiver of a breach of any provision of this Agreement by any parties or the failure of any parties otherwise to insist upon strict performance of any provision hereof shall not constitute a waiver of any subsequent breach or of any subsequent failure to perform. 2.6 This Agreement shall be binding upon and inure to the benefit of the parties and their respective heirs, representatives and successors and may be assigned by Company or the City to any successor only on the written approval of the other party. Notwithstanding anything previously stated to the contrary, an assignment does not include the sale of the Company or a transfer of substantially all of the Company's assets. In the event of such sale or transfer, the Company will use its best efforts to have the acquiring entity assume all obligations under this contract and agrees to provide at least a ninety (90) day written notice to the City of any changes or cancellation of Agreement. 2.7 All claims, disputes, and other matters in question between the Parties arising out of or relating to this Agreement or the breach thereof, shall be formally discussed and negotiated between the Parties for resolution. In the event that the Parties are unable to resolve the claims, disputes, or other matters in question within thirty (30) days of written notification from the aggrieved Party to the other Party, the aggrieved Party shall be free to pursue all remedies available at law or in equity. 2.8 At any time during the term of the contract, or thereafter, the City, or a duly authorized audit representative of the City or the State of Texas, at its expense and at reasonable times, reserves the right to audit Company's records and books relevant to all services provided to the City` under this Contract. Such an audit shall be at a time agreed to between the Parties, organized in such a way to minimize the interruption of the Company's business operations, and subject to any necessary confidentiality agreements. In the event such an audit by the City reveals any errors or overpayments by the City, Company shall refund the City the full amount of such overpayments within thirty (30) days of such audit findings. In the event that such an audit by the City reveals errors that result in underpayments to the Company, the City shall negotiate with the Company pursuant to Section 2.7 above to rectify such underpayment. 2.9 The City reserves the right to exercise any right or remedy to it by law, contract, equity, or otherwise, including without limitation, the right to seek any and all forms of relief in a court of competent jurisdiction. Further, the City shall not be subject to any arbitration process prior to exercising its unrestricted right to seek judicial remedy. The remedies set forth herein are cumulative and not exclusive, and may be exercised concurrently. To the extent of any conflict between this provision and another provision in, or related to, this document, this provision shall control. The City agrees that any conflict arising out of the Party's insurance relationship is to be handled via the prevailing state insurance laws. 2.10 The contractor shall not assign or sublet the contract, or any portion of the contract, without written consent from the Director of Purchasing and Contract Management. Should consent be given, the Contractor shall insure the Subcontractor or shall provide proof of insurance from the Subcontractor that complies with all contract Insurance requirements document, this provision shall control. Notwithstanding anything previously stated to the contrary, an assignment does not include the sale of the Company or a transfer of substantially all of the Company's assets. In the event of such sale or transfer, the Company will use its best efforts to have the acquiring entity assume all obligations under this contract and agrees to provide the City with at least a ninety (90) day notice. Further, the City agrees that a "Subcontractor" or a "Subcontract" does not include contracts or entities under contract with the Company as of the effective date of this Contract, or entities that will not perform work exclusively for this Contract, or the affiliates of Company. 2.11 Contractor acknowledges by supplying any Goods or Services that the Contractor has read, fully understands, and will be in full compliance with all terms and conditions and the descriptive material contained herein and any additional associated documents and Amendments. Except as set forth in the insurance policies that are filed with and approved by the state authority, The City disclaims any terms and conditions provided by the Contractor unless agreed upon in writing by the parties. In the event of conflict between these terms and conditions and any terms and the policies for insurance, the terms and conditions in the policies for insurance shall prevail as approved by the State of Texas. 2.12 Section 2270.002, Government Code, (a) This section applies only to a contract that: (1) Is between a governmental entity and a company with 10 or more full-time employees; and (2) has a value of $100,000 or more that is to be paid wholly or partly from public funds of the governmental entity. (b) A governmental entity may not enter into a contract with a company for goods or services unless the contract contains a written verification from the company that it: (I) does not boycott Israel; and (2) will not boycott Israel during the term of the contract. 2.13 SB 252 prohibits the City from entering into a contract with a vendor that is identified by The Comptroller as a company known to have contracts with or provide supplies or service with Iran, Sudan or a foreign terrorist organization. Article 3 Term And Termination of Agreement 3.1 Term. This Agreement shall be for a term of five (5) years, with the option of two-year 0extensions, beginning on January 1, 2020. 3.2 Termination. This Agreement may be terminated as follows: a. By either party at the end of any month after the end of the Fee Schedule Period specifications in Exhibit A of this Agreement with ninety (90) days prior written notice to the other party; or b. By both parties on any date mutually agreed to in writing; or c. By either party, in the event of conduct by the other party constituting fraud, misrepresentation of material fact or material breach of the terms of this Agreement, upon written notice. d. By the Company, if the City fails to pay timely all amounts due under this Agreement including, but not limited to, all amounts pursuant to and in accordance with the fee schedules in Exhibit A, upon the City's failure to cure the non-payment within ten (10) days. 3.3 Termination of Policy. The Parties agree that any termination of the Policies issued in accordance with this Agreement shall only be terminated in accordance with the terms of the policy, regardless of the above referenced termination of the Agreement. r. IN WITNESS WHEREOF, this Agreement is executed as of the Effective Date. CITY OF LUBBOCK, TX: COMPANY: Dearborn Life Insurance Company Daniel M. Pope, Nfayor ATTEST: "f�-J# 0. 0 ccaGarza, City Secre T-�) APP,? TO CONTENT: Lein utc eson, Director of Human Resources and Risk Management Vatite. ;OR itchstant City Attorney h k IL�42 I f Compan 's Signature Michael W. Witwer Printed Name President and CEO Title t�7 EXHIBIT A PRICE SHEET Coverage Dearborn National Age Monthly Rate Per Under 30 $1000 Basic Life $0.035 Accidental Death & $0.012 Dismemberment $0.10 Supplemental Em to ee Life Age Rate Per $1,000 Under 30 $0.05 30-34 $0.06 35-39 $0.07 4044 $0.10 45-49 $0.15 50-54 $0.23 55-59 $0.43 60-64 $0.66 65-69 $1.21 70+ $2.06 Dependent Child Life S ouse Life Amount Rate Per $5,000 $5,000 $0.80 $10,000 $1.60 $15,000 $2.40 $20,000 $3.20 $25,000 $4.00 $30,000 $4.80 $35,000 $5.60 $40,000 1 $6.40 $45,000 $7.20 $50,000 $8.00 Dependent Child Life Amount Monthly Rate Per $2,500 $2,500 $0.50 $5,000 $1.00 $7,500 $1.50 $10,000 $2.00 Voluntary AD&D Retiree Life Ne Rate Per $1000 EmployeeOnly $0.025 Employee and Spouse Only $0.038 Employee and Child ren Only $0.038 Ern to ee, Spouse & Child ren $0.038 Retiree Paid-up Life Employer paid per $1,000 $3.06 Retiree Paid-up grandfather per $1,000 $0.60 Retiree Dependent Covera e Amount Monthly Rate Per Unit Spouse $2,500 $1.25 Child ren $1,000 $1.25 LTD - Option 1(180 day EP) Retiree Life Ne Rate Per $1,000 Under 30 $0.11 30-34 $0.12 35-39 $0.17 40-44 $0.26 45-49 $0.44 50-54 $0.78 55-59 $1.27 60-64 $1.44 65-69 $2.38 70-74 $4.12 75-79 $6.20 80+ $9.75 Retiree Paid-up Life Employer paid per $1,000 $3.06 Retiree Paid-up grandfather per $1,000 $0.60 Retiree Dependent Covera e Amount Monthly Rate Per Unit Spouse $2,500 $1.25 Child ren $1,000 $1.25 LTD - Option 1(180 day EP) Age Rate Per $100 of Monthly Covered Payroll Under 25 $0.14 25-29 $0.16 30-34 $0.17 35-39 $0.18 40-44 $0.25 45-49 $0.31 50-54 $0.42 55-59 $0.64 60+ $0.79 LTD - Option 2 (90 day EP) Age Rate Per $100 of Monthly Covered Payroll Under 25 $0.16 25-29 $0.18 30-34 $0.20 35-39 $0.21 40-44 $0.28 45-49 $0.36 50-54 $0.49 55-59 $0.74 60+ $0.91 Rate Guarantee • The Life rates will be guaranteed for 7 years (1/1/2020 - 12/31/27). • The LTD rates are guaranteed for 3 years with rate caps based on the incurred loss ratios for year 4 and 5 as indicated below. Accident Poli — Month/ Rates LTD - Year 4 and Year 5 Incurred Loss Ratio Maximum Renewal Rate Increase Allowed Under 85% 0% 85%-89% 10% 90%-99% 20% 100% or more To be negotiated between the City of Lubbock and Dearborn National Accident Poli — Month/ Rates Employee Only Employee and Souse Employee and Child ren Family Plan 1 4.63 7.84 8.52 13.56 Plan 2 8.07 I3.46 15.38 24.21 Smart Plan 1 3.95 6.31 8.53 12.98 Smart Plan 2 4.65 7.42 10.07 15.32 EXHIBIT B City of Lubbock, TX RFP 19 -14820 -TF Ancillary Benefits General Requirements Products and Pricing Schedule 46Al Grouo Employer -Paid Group Life/AD&D Insurance Retiree Schedule of Benefits ELIGIBILITY: Class 02 All eligible Retirees of the Policyholder are: ALL RETIRED EMPLOYEES WHO RETIRED ON OR AFTER DECEMBER 1, 1995 Elect $5,000 or $2,000 benefit Voluntary Life Benefit $10,000 Voluntary Spouse life $2,500 Voluntary Child life $1,000 All benefits are 100% Retiree paid ELIGIBILITY: Class 03 All eligible Retirees of the Policyholder are: ALL RETIRED EMPLOYEES WHO RETIRED ON OR AFTER APRIL 1, 1988 BUT BEFORE DECEMBER 1, 1995 Term life benefit $2,000 Voluntary Life Benefit $10,000 Voluntary Spouse life $2,000 Voluntary Child life $1,000 All benefits are 100% Retiree paid ELIGIBILITY: Class 04 All eligible Retirees of the Policyholder are: ALL RETIRED EMPLOYEES WHO RETIRED ON OR AFTER JANUARY 1, 1974 BUT BEFORE APRIL 1, 1988 Benefit at the date of retirement either $2,000 or $5,000 Employer paid benefit Voluntary Life Benefit $10,000 Voluntary Spouse life $2,000 Voluntary Child life $2,000 All voluntary benefits are 100% Retiree paid e ELIGIBILITY: Class 05 All eligible Retirees of the Policyholder are: ALL RETIRED EMPLOYEES WHO RETIRED PRIOR TO JANUARY 1, 1974 $11,000 Benefit Employer paid benefit (monthly rate $3.06 per $1,000) Eligibility Waiting Period: (for all classes) Current Retirees: NONE New Retirees: NONE Waiting Period None Reduction of Benefits (for all Classes) None Benefit Eligibility Basic Life Insured Eligibility Retiree Portability Benefit Duration Age 65 MONTHLY RETIREE LIFE INSURANCE RATES Age Rate/$1,000 Under 30 .11 35-39 .17 45-49 .44 55-59 1.27 65-69 2.38 75-79 6.20 Dependent Life $2,500/spouse $1,000/child Active Employees Group Term Life/AD&D Insurance Aze Rate/$1.000 30-34 .12 40-44 .26 50-54 .78 60-64 1.44 70-74 4.12 80 or Over 9.75 $1.25 $1.25 Minimum requirements: ELIGIBILITY: Class 01 All eligible new hires and existing employees and their dependents to enroll for coverage up to the guarantee issue level. Voluntary Life amounts elected above the guarantee issue level will require evidence of insurability. Eligibility Waiting Period: (for all classes) New Employees: Working one (1) full pay period CLASS O1 Guarantee Issue for Supplemental Life Coverage is: 1. $250,000 for employees 2. $50,000 for spouses 1. $10,000 for children Must accept employees that have coverage over the Guarantee Issue amount. Basic Life Benefit Amount $10,000 Voluntary Life Benefit in the amount of 1, 2, or 3 times annual earning to a maximum of $500,000 Voluntary Spouse life - select $5,000 to a maximum of $50,000 in $5,000 Increments Voluntary Child Benefit - $2,500 increments to $10,000 $0 age live birth to 14 days $100 age 15 days to 6 months Voluntary: Benefit amounts may be subject to Guarantee Issue limits based on participation levels. Any Guarantee Issue Limits established are only available during initial enrollment and for new employees who have met the Eligibility requirements. Employees must enroll �--�f within 31 days of their eligibility date to qualify for any established Guarantee Issue. Current Rates: Group Term life AD&D $10,000: $.50 per person per month Voluntary Life 1, 2, or 3 times annual earnings monthly rates AAae Rate/$1,000 Age Rate/$1,000 Under 30 .050 30-34 .061 35-39 .069 40-44 .111 45-49 .160 50-54 .260 55 -59 .470 60-64 .769 65-69 1.209 70-74 2.141 75-79 3.950 80 or Over 6.920 Voluntary Spouse Life monthly rates: Coverage Amount Rate $5,000 $ .80 $10,000 $1.60 $15,000 $2.41 $20,000 $3.21 $25,000 $4.01 $30,000 $4.81 A, C $35,000 $5.61 $40,000 $6.41 $45,000 $7.22 $50,000 $8.02 Child(ren) Life Insurance monthly rates: Coverage Amount Rate $2,500 $ .50 $5,000 $1.00 $7,500 $1.50 $10,000 $1.99 Voluntary Accidental Death & Dismemberment (AD&D) Employee only in the amounts of 1, 2, and 3 times annual salary to a maximum of $300,000 Employee Monthly rate per 1,000 - .025 Family Monthly rate per 1,000 - .038 Basic Life and AD&D Employer -Paid Group Life insurance Guaranteed Issue f Policy portability under similar terms and conditions Vendor Answer $10,000 Yes Length of time with carrier 1!112011 Minimum participation 100% A M Best Rating of carrier (A VIII min) A Life insurance waiver of premium Not Included l notifications Limitations and exclusions Accelerated Death Benefit Line of Duty Benefit Benefit Reduction Schedule similar Seat Belt Benefit Air Bag Benefit Career Mustment Benefit Child Care Benefit _ Higher Education Benefit Enrollment Guidelines Similar We are matching the current Included Included (new) We are matching current Included Included ouse Training Benefit Included Included Included We are matching current Item I Employer -Paid Group Life Vendor Answer 1 Multi-year Rate Quote 7 Years 2 Please attach a five year rate history Rates will be guaranteed 5 years 3 Cost per $1000 1 Basic Active Life - $0.035 AD&D - $0.012 4(D) Lona -term Disability Disability Income Insurance — Monthil Income Benefits Monthly Benefit Your monthly benefit depends on the Option for which you are enrolled. Option 1: 60% of your monthly earnings, but not more than the Maximum Monthly Benefit. Option 2: 67% of your monthly earnings, but not more than the Maximum Monthly Benefit. Your benefit may be reduced by the deductible sources of income and disability earnings. Some disabilities may not be covered or may be limited under this coverage. MAXIMUM Monthly Benefit: $5,000 / $7,500 Elimination Period Your elimination period depends on the Option for which you are enrolled. You are automatically enrolled in Option 1 unless you choose to enroll for Option 2. • Option 1: The longer of 180 days and the length of time for which you receive loss of time benefits, salary continuation or accumulation of sick leave. • Option 2: The longer of 90 days and the length of time for which you receive loss of time benefits, salary continuation or accumulated sick leave. Benefits begin the day after the Elimination Period is completed. Maximum Benefit Period Age at disability Maximum benefit period Under age 61 To your normal retirement age*, but not less than 60 months 61 To your normal retirement age*, but not less than 48 months 62 To your normal retirement age*, but not less than 42 months 63 To your normal retirement age*, but not less than 36 months 64 To your normal retirement age*, but not less than 30 months 65 24 months 66 21 months 67 18 months no -I. e 68 15 months 69 and over 12 months *Your normal retirement age is your retirement age under the Social Security Act where retirement age depends on your year of birth. No contributions are required for your coverage while you are receiving payments under this plan. Cost of Coverage: The long term disability plan is provided to you on a contributory basis. You will be informed of the amount of your contribution when you enroll. The above items are only highlights of coverage. For a full description please read the entire Group Insurance Certificate. CURRENT PRICING Lonjg term Disability Option 1: Option 2: AGE RANGE RATE RATE <25 $.14 $.16 25 to 29 $.16 $.18 30 to 34 $.17 $.20 35 to 39 $.18 $.21 40 to 44 $.25 $.28 45 to 49 S.31 $.36 50 to 54 $.42 $.49 55 to 59 $.64 $.74 60+ $.79 $.91 Lonjg term Disability Vendor Answer Guaranteed Issue Yes — $5,000 for the current plan and $7,500 for the WAIVER OF PREMIUM for Yes disability Portable under similar terms and No conditions On duty and Off duty coverage Yes Length of time with carrier (1 point per 1/1/2015 Minimum participation 25% A M Best Rating of carrier (A A VIII min) Own Occupation test for wait period? Yes Waiting period for illness (180 days maximum) Option I is 180 days and Option 2 is 90 days Waiting period for injury (180 days maximum) Option 1 is 180 days and Option 2 is 90 days 0 Coverage period (5 year minimum) Benefit Duration: SSNRA Percent of usual pay (50% Option 1 is 60% and Option 2 is 66 2/3% minimum Minimum Percent of usual pay with Social Security, Worker's Comp or other income offset Minimum Benefit is $100 (40% minimum) Other features: Please list other Work Incentive Benefit, Rehabilitative Incentive Income, features of your policy. 3/12 pre -ex, Survivor Benefit, Rehabilitation Benefit Item Long term Disability Insurance 1 Multi-year Rate Quote (5 points per 3 Years with an option to renew for an r 2 1 Please attach a five year rate history Rates will be guaranteed 3 years 3 1 Bi Weekly Cost per Sam le of 100 Rates are age banded. See Proposal for Incurred Loss Ratio * Maximum Renewal Rate Increase Under 85% 0% 85%-89% 10% 90%-99% 20% 100% or more Underwriting Discretion *Calculated using paid claim payments, disabled claim reserves, and interest credited on claim reserves based on the incurred date divided by premium adjusted to the current rate basis. Year 4 and 5 renewal period: Loss ratio will be based on the most recent 24 months of experience outside of the IBNR period Year 6 and 7 renewal period: Loss ratio will be based on the most recent 48 months of experience outside of the IBNR period EXHIBIT C SAMPLE POLICIES Term Life and AD&D Insurance Employee Benefit Booklet DeoxbOfn'ffi'A NC&IOnal0 SAMPLE TX SAMPLETX-0001 I Class 1-01 Products and services marketed under the Dearborn National® brand and the star logo are underwritten and/or provided by Dearborn National ® Life Insurance Company (Downers Grove, IL) in all states (excluding New York), the District of Columbia, the United States Virgin Islands, the British Virgin Islands, Guam and Puerto Rico. 09/07/2012 Dearborn National® Life Insurance Administrative Office: Company 1020 31 st Street Downers Grove IL 60515-5591 (A stock life insurance company, herein called the "We" "Us" or "Our") Having issued Group Policy No. SAMPLETX-0001 (herein called the Policy) to SAMPLE TX (herein called the Policyholder) GROUP INSURANCE CERTIFICATE CERTIFIES that You are insured, provided that You qualify under the ELIGIBILITY AND EFFECTIVE DATES provision, become insured and remain insured in accordance with the terms of the Policy. Your insurance is subject to all the definitions, limitations and conditions of the Policy, and it takes effect as stated in the ELIGIBILITY AND EFFECTIVE DATES provision. This Certificate describes Your eligibility for benefits and the terms and provisions of the Policy. It replaces and cancels any other Certificate previously issued to You under the Policy. If the terms and provisions of the Group Insurance Certificate (issued to You) are different from the policy (issued to the Policyholder), the Policy will govern. Your coverage may be canceled or changed in whole or in part under the terms and provisions of the Policy. READ YOUR CERTIFICATE CAREFULLY Signed for Dearborn National Life Insurance Company Secretary President Death Benefits will be reduced if an accelerated death benefit is paid. DISCLOSURE: The Accelerated Death Benefit offered under this Policy is intended to qualify for favorable tax treatment under the Internal Revenue Code of 1986. If the Accelerated Death Benefit qualifies for such favorable tax treatment, the benefits will be excluded from the insured Employee's income and not subject to federal taxation. Tax laws relating to Accelerated Death Benefits are complex. The insured Employee is advised to consult with a qualified tax advisor about circumstances under which he or she could receive the Accelerated Death Benefit excludable from income under federal law. Receipt of the Accelerated Death Benefit payment may affect the insured Employee, his or her spouse, or his or her family's eligibility for public assistance such as medical assistance (Medicaid), Aid to Families with Dependent Children (AFDC), Supplementary Social Security Income (SSI), and drug assistance programs. The insured Employee is advised to consult with a qualified tax advisor and with social service agencies concerning how receipt of such payment will affect the insured Employee, his or her spouse, or his or her family's eligibility for public assistance. 00124TX Basic Group Term Life Insurance Certificate with Accidental Death & Dismemberment Insurance Benefits Non -Participating FDL 1-604-412 IMPORTANT INFORMATION ABOUT COVERAGE UNDER THE TEXAS LIFE, ACCIDENT, HEALTH AND HOSPITAL SERVICE INSURANCE GUARANTY ASSOCIATION (For insurers declared insolvent or impaired on or after September 1, 2005) Texas law establishes a system, administered by the Texas Life, Accident, Health and Hospital Service Insurance Guaranty Association (the "Association"), to protect Texas policyholders if their life or health insurance company fails. Only the policyholders of insurance companies which are members of the Association are eligible for this protection which is subject to the terms, limitations, and conditions of the Association law. (The law is found in the Texas Insurance Code, Chapter 463.) It is possible that the Association may not cover your policy in full or in part due to statutory limitations. Eligibility for Protection by the Association When a member insurance company is found to be insolvent and placed under an order of liquidation by a court or designated as impaired by the Texas Commissioner of Insurance, the Association provides coverage to policyholders who are: • Residents of Texas at that time (irrespective of the policyholder's residency at policy issue) • Residents of other states, ONLY if the following conditions are met: 1. The policyholder has a policy with a company domiciled in Texas; 2. The policyholder's state of residence has a similar guaranty association; and 3. The policyholder is not eligible for coverage by the guaranty association of the policyholder's state of residence. Limits of Protection by the Association Accident, Accident and Health, or Health Insurance: • For each individual covered under one or more policies: up to a total of $500,000 for basic hospital, medical - surgical, and major medical insurance, $300,000 for disability or long term care insurance, and $200,000 for other types of health insurance. Life Insurance: • Net cash surrender value or net cash withdrawal value up to a total of $100,000 under one or more policies on any one life; or • Death benefits up to a total of $300,000 under one or more policies on any one life; or • Total benefits up to a total of $5,000,000 to any owner of multiple non -group life policies. Individual Annuities: • Present value of benefits up to a total of $100,000 under one or more contracts on any one life. Group Annuities: • Present value of allocated benefits up to a total of $100,000 on any one life; or • Present value of unallocated benefits up to a total of $5,000,000 for one contract holder regardless of the number of contracts. Aggregate Limit: • $300,000 on any one life with the exception of the $500,000 health insurance limit, the $5,000,000 multiple - owner life insurance limit, and the $5,000,000 unallocated group annuity limit. Insurance companies and agents are prohibited by law from using the existence of the Association for the purpose of sales, solicitation, or inducement to purchase any form of insurance. When you are selecting an insurance company, you should not rely on Association coverage. Texas Life, Accident, Health and Hospital Service Texas Department of Insurance Insurance Guaranty Association 6504 Bridge Point Parkway, Suite 450 P.O. Box 149104 Austin, Texas 78730 Austin, Texas 78714-9104 800-982-6362 or www.txlifega.org 800-252-3439 or www.tdi.state.tx.us TX Notice IMPORTANT NOTICE To obtain information or make a complaint: You may contact your (title) at {telephone number). You may call Dearborn National Life Insurance Company's toll-free telephone number for infor- mation or to make a complaint at: 1-800-348-4512 You may also write to Dearborn National Life Insurance Company at: 1020 31st Street, Downers Grove, IL 60515-5591 You may contact the Texas Department of Insurance to obtain information on companies, coverages, rights or complaints at: 1-800-252-3439 You may write the Texas Department of Insurance P. O. Box 149104 Austin, TX 78714-9104 FAX #(512) 475-1771 Web: http:llwww.tdi.state.tx.us E-mail: ConsumerProtection@tdi.state.tx.us PREMIUM OR CLAIM DISPUTES: Should you have a dispute concerning your premium or about a claim, you should contact the company first. If the dispute is not resolved, you may contact the Texas Department of Insurance. ATTACH THIS NOTICE TO YOUR POLICY: This notice is for information only and does not become a part or condition of the attached document. 9-632-895 AVISO IMPORTANTE Para informacion o para someter una queja: Peude communicarse con su (title) al (telephone number). Usted puede hamar al numero de telefono gratis de Dearborn National Life Insurance Company para informacion o para someter una queja al: 1-800-348-4512 Usted tambien escribir a Dearborn National Life Insurance Company al: 1020 31st Street, Downers Grove, IL 60515-5591 Puede comunicarse con el Departamento de Seguros de Texas para conseguir informacion acerca de companias, coberturas, derechos o quejas al: 1-800-2523439 Puede escribir al Departamento de Seguros de Texas: P. O. Box 149104 Austin, TX 78714-9104 FAX #(512) 475-1771 Web: http://www.tdi.state.tx.us E-mail: ConsumerProtection@tdi.state.tx.us DISPUTAS SOBRE PRIMAS O RECLAMOS: Si tiene una disputa concemiente a su prima o a un reclamo, debe comunicarse con la Compania primero. Si no se resuelve la disputa, puede entonces comunicarse con al Departamento de Seguros de Texas. UNA ESTE AVISO A SU POLIZA: Este aviso es solo para proposito de informacion y no se convierte en parte o condicion del documento adjunto. TABLE OF CONTENTS Schedule of Benefits Eligibility and Effective Dates Group Term Life Insurance Benefit Conversion of Life Insurance Waiver of Premium Accelerated Death Benefit Dependent Life Insurance Conversion of Dependent Life Insurance. Accidental Death, Dismemberment and Loss of Sight Benefit Termination Provisions General Provisions Definitions FDL1-604-412 Accelerated Death Benefit (ADB) Benefit Amount 75% Basic Term Life Insurance In force Insured Eligibility Employee Minimum Covered Life Insurance Amount $15,000 Maximum ADB Payment $250,000 Minimum ADB Payment $7,500 GROUP ACCIDENTAL DEATH & DISMEMBERMENT Employee Basic AD&D Coverage Amount $25,000 Reduction of Benefits Basic Accidental Death and Dismemberment benefits reduce by 35% of the original amount at age 65 and further reduce to 50% of the original amount at age 70. Benefits terminate at retirement. Seat Belt Benefit 10% of Employee Coverage Amount, to a maximum of $25,000 Air Bag Benefit 5% of Employee Coverage Amount to a maximum of $5,000 Repatriation Benefit Actual costs to a maximum of $5,000 Education Benefit Benefit Amount 3% of Employee Coverage Amount, to a maximum of $3,000 per year Maximum Benefit Duration Benefit payable for a maximum of four (4)years Eligible Dependents Age live birth to age 25 years FDL 1-604-412 2 SCHEDULE OF BENEFITS POLICYHOLDER: SAMPLE TX POLICY NUMBER: SAvIPLETX-0001 EFFECTIVE DATE: July 1, 2012 ELIGIBILITY: All full-time Employees of the Policyholder working in the United States of America who Class 01 are Actively at Work for the Policyholder and who have completed the Waiting Period are eligible for the insurance. A full-time Employee is one who regularly works a minimum of 30 hours per week for the Policyholder. Part-time, seasonal and temporary Employees of the Policyholder are not eligible. Eligibility Waiting Period: Current Employees: None New Employees: First of the month following of continuous, full-time active work Policyholder Basic Life & AD&D 100% of premium Contribution: GROUP TERM LIFE INSURANCE Employee Basic Life Benefit Amount $25,000 Reduction of Benefits Basic Group Term Life benefits reduce by 35% of the original amount at age 65 and further reduce to 50% of the original amount at age 70. Benefits terminate at retirement. Waiver of Premium Waiver Eligibility Totally Disabled prior to age 60 without interruption from the last date Insured Eligibility worked for at least 9 months Employee Maximum Waiver of Premium Duration age 65 Accelerated Death Benefit (ADB) Benefit Amount 75% Basic Term Life Insurance In force Insured Eligibility Employee Minimum Covered Life Insurance Amount $15,000 Maximum ADB Payment $250,000 Minimum ADB Payment $7,500 GROUP ACCIDENTAL DEATH & DISMEMBERMENT Employee Basic AD&D Coverage Amount $25,000 Reduction of Benefits Basic Accidental Death and Dismemberment benefits reduce by 35% of the original amount at age 65 and further reduce to 50% of the original amount at age 70. Benefits terminate at retirement. Seat Belt Benefit 10% of Employee Coverage Amount, to a maximum of $25,000 Air Bag Benefit 5% of Employee Coverage Amount to a maximum of $5,000 Repatriation Benefit Actual costs to a maximum of $5,000 Education Benefit Benefit Amount 3% of Employee Coverage Amount, to a maximum of $3,000 per year Maximum Benefit Duration Benefit payable for a maximum of four (4)years Eligible Dependents Age live birth to age 25 years FDL 1-604-412 2 ELIGIBILITYAND EFFECTIVE DATE PROVISIONS Who is eligible for this insurance? The eligibility for this insurance is as indicated in the Schedule of Benefits. The Eligibility Waiting Period is set forth in the Schedule of Benefits. 00001 When does Your Noncontributory insurance become ef,)`ec"? Noncontributory means the Policyholder pays 100% of the premium for this insurance. Current Employees If You are an eligible Employee on the Policy effective date, Your Noncontributory coverage under the Policy will become effective on the date indicated in the Schedule of Benefits, provided You are Actively at Work on that day. New Employees If You become an eligible Employee after the Policy effective date, Your Noncontributory coverage under the Policy will become effective on the date indicated in the Schedule of Benefits, provided You are Actively at Work on that day. If You waive all or a portion of Your Noncontributory coverage and choose to enroll at a later date, You are considered a late applicant and must fumish Evidence of Insurability satisfactory to Us before coverage can become effective. Coverage will become effective on the date We determine that the Evidence oflnsurability is satisfactory and We provide written notice of approval. You must be Actively at Work for coverage under the Policy to become effective. 00003 Change in Family Status If You experience a Change in Family Status, You may enroll for coverage, apply for additional coverage, or request changes to Your current benefit program(s) without providing Evidence of Insurability, provided the benefit change is consistent with the Change in Family Status. You must submit the appropriate Enrollment Form within 31 days of the Change in Family Status. Change In Family MOW means changes in the status of Your family, including but not limited to: 1. You get married or execute a Domestic Partner affidavit; 2. You have a Dependent Child, or You adopt or become the legal guardian of a Dependent child; 3. Your Spouse dies or You become divorced; 4. Your Dependent Child becomes emancipated or dies; 5. Your Spouse is no longer employed, resulting in a loss of group insurance, or; 6. You have a change in classification which results in You changing from part-time to full-time, or full- time to part-time. 00005 FDLI-604-412 When is Evidence oflnsurabUby required? Evidence of Insurability is required if: 1. You are a late applicant, which means You enroll for insurance more than 31 days after Your eligibility date; or 2. You voluntarily canceled Your insurance and choose to reapply; or 3. Your coverage amount exceeds the Guarantee Issue Benefit Limit as set forth in the Schedule of Benefits; or 4. You apply to increase Your coverage amount during the Policy year, or 5. An increase to Your Annual Earnings results in an increase to Your Life Insurance benefit of more than $50,000, and that amount exceeds the Guarantee Issue Benefit Limit. Receipt of premium before We have approved Evidence of Insurability will not constitute acceptance and does not guarantee issuance of any benefit amount prior to Our approval. Evidence of Insurability means a statement of Your medical history which We will use to determine if You are approved for coverage. Evidence of Insurability will be provided at Your expense. Evidence of Insurability Form means a form provided or approved by Us on which You provide a statement of Your medical history. You may obtain an Evidence of Insurability Form from the Policyholder. 00006 If You are not Actively at Work, when does coverage become effective? 0 If You are absent from Active Work on the date Your coverage would otherwise become effective; and Your absence is caused by an Injury, illness or layoff, Your effective date for any initial coverage or increased coverage will be deferred until the first day You return to Active Work. However, You will be considered Actively at Work on any day that is not Your regularly scheduled work day (including but not limited to a weekend, vacation or holiday) if You were Actively at Work on the immediately preceding scheduled work day and You were: 1. not Hospital Confined; or; 2. disabled due to an Injury or Sickness. 00008 Changes to Your coverage A change in Your coverage may occur if: 1. There is a Policy change; or 2. You enter another class and become eligible for a change in benefits; or 3. You experience a qualified Change in Family Status 4. There is a change in Your Annual Earnings, which results in an increased benefit amount If You are eligible for additional coverage due to a Policy change, the additional coverage will be effective on the date the Policy change is effective, as requested by the Policyholder and agreed upon by Us. FDLI -604-412 4 Additional coverage for reasons other than a Policy change will be effective as indicated in the "When Does Your Non -Contributory insurance become effective?" section, or the later of: 1. The date You enroll for the additional coverage; or 2. The date You become eligible for the additional coverage, if enrollment is not required; or 3. The date We approve Your coverage if Evidence of lnsurability is required. In order for Your additional coverage to begin, You must be Actively at Work. Additional Contributory coverage is subject to payment of premium. 00010 Eligibility after You Terminate Employment If Your coverage ends due to termination of employment, You must meet all the requirements of a new Employee if You are rehired at a later date. Exception: If Your coverage ends due to termination of employment and You return to Active Work in an eligible class within 6 months, we will not: 1. apply a new Eligibility Waiting Period, or 2. require Evidence of Insurability. If You converted all or part of Your group life insurance when employment terminated, the individual policy must be surrendered upon return to Active Work. 00611 FDLI-604-412 TERM LIFE INSURANCE BENEFIT THIS BENEFIT ONLYAPPLIES TO YOU IF YOU HAVE ELECTED TERM LIFE INSURANCE AND YOU HAVE PAID OR AGREED TO PAY THE APPLICABLE PREMIUM. When is a Life Insurance Benefit payable? We will pay Your beneficiary the amount of life insurance in force as of the date of Your death provided: 1. You are insured under the Policy on the date of death, and 2. We receive proof of death. We will determine the amount of insurance payable based upon the Schedule of Benefits. 00012 TX Who will receive Your Life Insurance Benefits? Your beneficiary designation must be made on a form which We provide or on a form accepted by Us. If two or more beneficiaries are named, payment of proceeds will be apportioned equally unless You had specified otherwise. The Policyholder may not be named as beneficiary. Unless You provide otherwise, if a beneficiary dies before You, We will divide that beneficiary's share equally between any remaining named beneficiaries. If a beneficiary is a minor, or is not able to give a valid release for any payment of benefits made, We will not make payment until a claim is made by the person or entity which, by court order, has been granted control of the estate of such beneficiary. This provision does not prevent Us from making payment to or for the benefit of a minor beneficiary in accordance with the applicable state law. Facility of Payment If no named beneficiary survives You or if You do not name a beneficiary, We will pay the amount of insurance: 1. to Your spouse, if living; if not, 2. in equal shares to Your then living natural or legally adopted children, if any; if none, 3. in equal shares to Your father and mother, if living; if not, 4. in equal shares to Your brothers and/or sisters, if living; if not, 5. to Your estate. If any benefits under this provision are to be paid to Your estate, We may pay an amount not greater than $250 to any person We consider equitably entitled by reason of having incurred funeral or other expenses incident to Your death. Any and all payments made by Us shall fully discharge Us in the amount of such payment. 00014 TX May You change Your beneficiary? You may change Your beneficiary at any time by completing a form provided or accepted by Us, and sending it to the Policyholder. Your written request for change of beneficiary will not be effective until it is recorded by the Policyholder. After it has been so recorded, it will take effect on the later of the date You signed the change request form or the date You specifically requested. If You die before the change has been recorded, We will not alter any payment that We have already made. Any prior payment shall fully discharge Us from further liability in that amount. FDLI-604-412 If You are approved for continued life coverage under the Waiver of Premium, You may be asked to name a beneficiary. A beneficiary designation made in connection with Waiver of Premium, if different from the designation on Your enrollment form, shall constitute a change of beneficiary under the Policy. Such change of beneficiary only applies while You qualify for continued coverage under the Waiver of Premium provision. If continuation of life insurance under the Waiver of Premium provision ceases, and You are employed by the Policyholder, You must make a new beneficiary designation. If You do not name a new beneficiary, We will pay death benefits in accordance with the Facility of Payment provision. 00015 CONVERSION OF LIFE INSURANCE How much Life Insurance may You convert ifeligibility terminates? You may convert to an individual policy of life insurance if Your life insurance, or a portion of it, ceases because: 1. You are no longer employed by the Policyholder; or 2. You are no longer in a class which is eligible for life insurance. In either of these situations, You may convert all or any portion of Your life insurance which was in force on the date Your life insurance ceased. How much Life Insurance may You convert if the policy terminates or is amended? You may also convert to an individual policy of life insurance if Your life insurance ceases because: 1. life insurance benefits under the Policy cease; or 2. the Policy is amended making You ineligible for life insurance; however, in either of these situations, You must have been insured under the Policy, or the Policy it replaced, for at least five {5} years. The amount of insurance converted in either of these situations will be the lesser of: 1. the amount of life insurance in force, less any amount for which You become eligible under this or any other group policy within 31 days after the date Your life insurance ceased; or 2. $10,000. How to apply for conversion We must receive written application and the first premium for the individual life insurance policy within 31 days after life insurance under the Policy ceased. No Evidence of Insurability will be required. The individual policy will be a policy of whole life insurance. It will not contain waiver of premium, accelerated death benefit, disability benefits, accidental death and dismemberment benefits or any other ancillary benefits. The minimum issue amount of an individual conversion policy is $2,000. The premium for the individual policy will be based on: 1. Our current rates based upon Your attained age; and 2. the amount of the individual policy. FDL 1-604-4I 2 If application is made for an individual policy, the coverage under the individual policy will be effective on the day following the 31 -day period during which You could apply for conversion. If You die during a period when You would have been entitled to have an individual policy issued to You and if You die before such an individual policy became effective, We will pay Your beneficiary the greatest amount of group term life insurance for which an individual policy could have been issued, provided: 1. Your death occurred during the 31 -day period within which You could have made application; and 2. We receive proof of death. If life insurance benefits are paid under the Policy, payment will not be made under the converted policy, and premiums paid for the converted policy will be refunded. Notice. If the Policyholder fails to notify You at least 15 days prior to the date insurance under the Policy would cease, You shall have an additional period within which to elect conversion coverage; but nothing herein shall be construed to continue any insurance beyond the period provided for in the Policy. The additional election period shall expire 15 days immediately after the Policyholder gives You notice, but in no event shall it extend beyond 60 days immediately after the expiration of the 31 -day period explained above. 00016 TX WAIVER OF PREMIUM What is the Waiver of Premium benefit? We will continue Your Basic life insurance benefit under the Policy without further payment of life insurance premium if You become Totally Disabled, provided: 1. You are insured under the Policy and were Actively at Work on or after the effective date of the Policy; and 2. You are under the age of 60; and 3. You provide Us with satisfactory written proof within 12 months after the date You became Totally Disabled; and 4. Your Total Disability has continued without interruption for at least 9 months; and 5. You are still Totally Disabled when You submit the proof of disability; and 6. all required premium has been paid. Total Disability or Totally Disabled means You are diagnosed by a Doctor to be completely unable because of Sickness or Injury to engage in any occupation for wage or profit or any occupation for which You become qualified by education, training or experience. We will waive premium beginning the month after We receive satisfactory proof that You have been Totally Disabled for at least 9 months. Premium will continue to be waived provided You: 1. remain Totally Disabled; and 2. provide satisfactory written proof of continuing Total Disability upon request. We will not request proof of continuing Total Disability more frequently than once every three months during the first two years of Total Disability, and not more frequently than once a year after the Insured has been Totally Disabled for two years. FDLI-604-412 You are responsible for obtaining initial and continuing proof of Total Disability You will be covered for the amount of life insurance in force as of the date Total Disability commenced. The amount of life insurance continued in force will be subject to any reduction in benefits as shown on the Schedule of Benefits or which are the result of an amendment to the Policy, but in no event will the insurance amount increase while Your life insurance is continued under Waiver of Premium. This life insurance coverage will continue without the payment of premium until You are no longer Totally Disabled, or attain the Maximum Waiver of Premium Duration as set forth in the Schedule of Benefits or retire, whichever occurs first. We may have You examined at reasonable intervals during the period of claimed Total Disability, but not more frequently than once every three months during the first two years of Total Disability, and not more frequently than once a year after the Insured has been Totally Disabled for two years. Continuation of life insurance under the Waiver of Premium provision shall end immediately and without notice if You refuse to be examined as and when required. If You are approved for continued coverage under the Waiver of Premium provision, You will be asked to name a beneficiary. That beneficiary designation: 1. will only apply while Your coverage continues under this Waiver of Premium provision; and 2. if different from the designation on Your enrollment form, shall constitute a change of beneficiary under the Policy. We will pay the amount of life insurance in force to Your beneficiary if You die before furnishing satisfactory proof of Total Disability, if: 1. You die within one year from the date You became Totally Disabled; and 2. We receive proof that You were continuously Totally Disabled until the date of death; and 3. We receive proof of death. If continuation of life insurance under the Waiver of Premium provision ceases while the Policy is still in force, and You are employed by the Policyholder, Your life insurance will continue provided premium payments begin on the next premium due date. if You return to work with the Policyholder, You must make a new beneficiary designation. If You do not name a new beneficiary, We will pay death benefits in accordance with the Facility of Payment provision. If continuation of life insurance under the Waiver of Premium provision ceases, and You are no longer employed by the Policyholder, You may apply for an individual life insurance policy in accordance with the Conversion of Life Insurance provision of this Certificate. How does termination of the Policy affect Your insurance under the Waiver of Premium Benefit? Termination of the Policy will not affect any insurance that has been continued under this Provision prior to the termination date. What if You are Totally Disabled and the Policy ends before You satisfy the Elimination Period? Your coverage under the Policy will end if the Policy ends before You satisfy the Elimination Period. However, when the Policy ends You may be entitled to convert Your coverage to an individual plan of life insurance as described in the Conversion of Life Insurance provision. You may still submit a claim for Waiver of Premium Benefits after the Policy ends. However, You must be Totally Disabled, pay the Conversion premium for the full length of the Elimination Period and qualify for the Waiver of Premium Benefits. FDLI-604-412 9 At no time can You be covered under both the individual conversion policy and this Policy. Upon receipt of timely notice and due proof of Your Total Disability We will evaluate Your claim. If We determine that You qualify and You pay all applicable premiums, We will approve Your Waiver of Premium claim under the Policy and agree to rescind any individual policy of life insurance issued to You under the Conversion privilege. We will refund any premiums paid for such coverage. Insurance under the Policy will not go into effect until We approve your claim in writing. 00017rXe FDLI-604-412 10 ACCELERATED DEATH BENEFIT What is the Accelerated Death Benefit? The Accelerated Death Benefit is a percentage of Your group Basic term life insurance which is payable to You prior to Your death if We receive acceptable proof that You have a Terminal Condition. The Accelerated Death Benefit is limited to the maximum and minimum amounts shown on the Schedule of Benefits, and is payable only once to any one Insured. The Accelerated Death Benefit is calculated on the group Basic term life insurance benefit amount in force under the Policy on the date You are diagnosed with a Terminal Condition. If Your group term life insurance will reduce, due to age, within 12 months after the date We receive proof, the Accelerated Death Benefit will be calculated on the reduced group Basic term life insurance benefit. Who is Eligible for an Accelerated Death Benefit? This benefit only applies to Insureds with at least the Minimum Covered Life Insurance Benefit amounts set forth in the Schedule of Benefits. You must have been Actively at Work on or after the effective date of the Policy to be eligible for an Accelerated Death Benefit. This benefit does not apply to Accidental Death and Dismemberment benefits. Terminal Condition means You have been examined and diagnosed by Your Doctor as having a non - correctable health condition that, with reasonable medical certainty, will result in Your death within 12 months from the date of the Doctor's Statement. Doctor's Statement means a written medical opinion of a Doctor currently licensed to practice in the United States which: 1. is made at Your expense; and 2. indicates that You have a Terminal Condition; and 3. includes all medical test results, laboratory reports, and any other information on which the medical opinion is based; and 4. indicates Your expected remaining life span; and 5. is acceptable to Us. The Accelerated Death Benefit Payment We will pay the benefit during Your lifetime if You are diagnosed with a Terminal Condition if You or Your legal representative submits a claim for an Accelerated Death Benefit and provides satisfactory proof. The benefit will be paid in one sum to You. There is no cost for an Accelerated Death Benefit. At the time of the payment of the Accelerated Death Benefit, We will send a statement to the certificate holder specifying the amount of benefits paid, the effect of the Accelerated Death Benefit payment on the death benefit face amount, and the amount of benefits remaining available for acceleration. Are there any exceptions to the payment of the Accelerated Death Benefit? The Accelerated Death Benefit will not be payable: I. for any amount of group term life insurance which is less than the Minimum ADB Payment as set forth in the Schedule of Benefits; or 2. if Your Terminal Condition is the result of. a. attempted suicide, while sane or insane; or �f' = b. intentionally self-inflicted injury; or 3. if Your group term life insurance benefit has been assigned; or FDL 1-604-412 11 4. if Your group term life insurance benefit is payable to an irrevocable beneficiary, including notification to Us that such benefit or a portion of such benefit is to be paid to a former spouse as part of a divorce or separation agreement; or Y 5. to retirees. Notice and Proof of Claim You must elect the Accelerated Death Benefit in writing on a form that is acceptable to Us. You must furnish proof that You have a Terminal Condition, including a Doctor's Statement within 91 days of the notice of claim. If proof is not given within 91 days, the claim will not be reduced or denied if proof is given as soon as reasonably possible. Effect on Insurance The Accelerated Death Benefit is in lieu of the group term life insurance benefit that would have been paid upon Your death. When the Accelerated Death Benefit is paid: 1. the term life insurance benefit otherwise payable upon Your death will be reduced by the amount of the Accelerated Death Benefit. Any portion of the death benefit remaining after reduction of the death benefit due to payment of an Accelerated Death Benefit shall be paid upon the death of the Insured. 2. the amount of group term life insurance which could otherwise have been converted to an individual contract will be reduced by the amount of the Accelerated Death Benefit; and 3. the premium due for group term life insurance will be calculated on the amount of such insurance remaining in force after deducting the Accelerated Death Benefit. The payment of an Accelerated Death Benefit and the balance of the death benefit under the Policy shall constitute full settlement of the face amount of the Policy. 00020 Tx 0 O FDL 1-604-412 12 ACCIDENTAL DEATH & DISMEMBERMENT BENEFIT (AD&D) What is the AD&D Benefit? If, while insured under the Policy, You suffer an Injury in an Accident, We will pay for those Losses set forth in the "Table of Losses" below. The amount paid will be the percentage stated in the Table of Losses but not more than the Coverage Amount set forth in the Schedule of Benefits. The Loss must: 1. occur within 365 days of the Accident, and 2. be the direct and sole result of the Accident; and 3. be independent of all other causes. TABLE OF LOSSES % OF COVERAGE AMOUNT PAYABLE Loss of Life 1000/0 Loss of Both Hands 1000/0 Loss of Both Feet 1000/0 Loss of Entire Sight of Both Eyes 1000/0 Loss of One Hand and One Foot 100% Loss of Speech and Hearing 1000/0 Quadriplegia 100% Paraplegia 75% Loss of One Hand 50% Loss of One Foot 50% Loss of Entire Sight of One Eye 50% Loss of Speech 50% Loss of Hearing (both ears) 50% Hemiplegia 50% Loss of Thumb and Index Finger (on same hand) 25% Uniplegia 25% Definitions which apply to the AD&D Provision: Accident or Accidental means a sudden, unexpected event that was not reasonably foreseeable. Hemiplegia means total Paralysis of one arm and one leg on the same side of the body. Loss, with respect to hand or foot, means actual and permanent severance from the body at or above the wrist or ankle joint, as applicable. With respect to eyes, speech and hearing, loss means entire and irrecoverable loss of sight, speech or hearing. With respect to thumb and index finger, loss means complete severance of entire digit at or above joints. Paralysis means loss of use without severance of a limb as a result of an Injury to the Spinal Cord, which has continued for 12 months. Paralysis must be determined by a Doctor to be permanent, total and irreversible. Paraplegia means total Paralysis of both legs. Quadriplegia means total Paralysis of both arms and both legs. Uniplegia means total Paralysis of one limb. FDL 1-604-412 13 The total amount of AD&D benefits payable for all Losses for any Insured resulting from any one Accident will not be greater than the Coverage Amount set forth in the Schedule of Benefits. Except as provided in a particular AD&D benefit provision, We will pay benefits for loss of life to the same beneficiary(ies) named to receive life insurance benefits. Benefits for all other Losses will be paid to You. 00030 SEAT BELT BENEFIT What is the Seat Belt Benefit? We will pay an additional amount, as set forth in the Schedule of Benefits, if a benefit is payable under the AD&D Benefit for Your loss of life as the result of an Accident which occurs while You were driving or riding in an Automobile, if: 1. the Automobile is equipped with Seat Belts. 2. the Seat Belt was in actual use and properly fastened at the time of the Accident. 3. the position of the Seat Belt is certified in the official report of the Accident or by the investigating officer. A copy of the police accident report must be submitted with the claim. 4. You were driving or riding in an Automobile driven by a licensed driver who was neither: a. intoxicated or driving while impaired. Intoxication and impairment shall be determined, with or without conviction, by the law of the jurisdiction in which the Accident occurs or .08% blood alcohol content if the jurisdiction in which the Accident occurred does not define intoxication; nor b. under the influence of any narcotic, hallucinogen, barbiturate, amphetamine, gas or fumes, poison or any other controlled substance as defined in Title II of the Comprehensive Drug Abuse prevention and Control Act of 1970, as now or hereafter amended, unless as prescribed by a licensed physician and used in the manner prescribed. Conviction is not necessary for a determination of being under the influence. If the required certification is not available and if it is unclear whether You were properly wearing a Seat Belt, then We will pay an additional benefit of $1,000. Automobile means a validly registered private passenger car (or policyholder -owned car), station wagon, jeep -type vehicle, SW, pick-up truck or van -type car that is not licensed commercially or being used for commercial purposes. Seat Belt means those belts that form an occupant restraint system. 00031 AIR BAG BENEFIT What is the Air Bag Benefit? We will pay an additional amount as set forth in the Schedule of Benefits if a benefit is payable under the AD&D Benefit for Your loss of life as the result of an Accident which occurs while You are driving or riding in an Automobile provided that: 1. You were positioned in a seat that was equipped with an Air Bag; 2. You were properly strapped in the Seat Belt when the Air Bag inflated; and 3. the police report establishes that the Air Bag inflated properly upon impact. If it is unclear whether You were properly wearing Seat Belt(s) or if it is unclear whether the Air Bag inflated properly, then the Air Bag Benefit will be $1,000. FDLI -604-412 14 Air Bag means an inflatable supplemental passive restraint system installed by the manufacturer of the Automobile, or proper replacement parts as required by the automobile manufacturer's specifications, that inflates upon collision to protect an individual from injury and death. A Seat Belt is not considered an Air Bag. 00032 REPATRIATION BENEFIT What is the Repatriation Benefit? We will pay an additional amount, as set forth in the Schedule of Benefits, for the preparation and transportation of Your body to a mortuary if: 1. the Coverage Amount under the AD&D Benefit is payable for Your loss of life; and 2. Your death occurs at least 75 miles away from Your principal residence. 00033 EDUCATION BENEFIT What is the Education Benefit? We will pay an additional amount, as set forth in the Schedule of Benefits to Your Dependent Student if an AD&D benefit is payable for Your loss of life. We will only pay one Education Benefit to any one Dependent Student during any one school year. If the Dependent Student is a minor, We will pay the benefit to the legal representative of the minor. Definitions which apply to the Education Benefit: Student means an Eligible Dependent child who, on the date of Your death, is: „�. 1. A full-time post -high school student in a School of Higher Education; or 2. A student in the 12'" grade but who becomes a full-time post -high school student in a School of Higher Education within 365 days after Your death. School of Higher Education means an institution which: 1. is legally authorized by the State in which it is located; and 2. provides either a program for: a. Bachelor's degrees or not less than a two year program with full credit towards a Bachelor's degree; or b. Gainful employment as long as such program is at least one year of training; and 3. is accredited by an Agency or association recognized by the U.S. Department of Education under the Higher Education Assistance Act as may be amended from time to time. When Benefit Ends: A Dependent Student will no longer be eligible to receive the Dependent Education Benefit upon the earlier of the following: 1. Our payment of the fourth installment of the Dependent Education Benefit on behalf of or to the Dependent Student, or 2. At the end of the period during which due Proof must be submitted if no due Proof is submitted. Special Child Education Benefit: If Your Eligible Dependent child does not qualify as a Student, but is enrolled in an elementary or high school, We will pay a Child Education Benefit in the amount of $1,000. This benefit is payable once upon proof that You died as a result of an Accident for which the Accidental FDL 1-604-412 15 Death & Dismemberment benefit is payable and that, within 12 months after Your death, Your Eligible Dependent Child is a full-time student in an elementary or high school. 00034 0 EXPOSURE AND DISAPPEARANCE If, as a result of an Accident while insured for this benefit, if You are unavoidably exposed to the elements and suffer a Loss as a result of that exposure, that Loss will be covered. If Your body has not been found within one (1) year of an Accidental disappearance, forced landing, sinking or wrecking of a conveyance in which You were occupants, You will be deemed to have suffered loss of life. 00043 LIMITATIONS Are there any Limitations for losses due to an Accident? We will not pay any benefit for any Loss that, directly or indirectly, results in any way from or is contributed to by: 1. any disease or infirmity of mind or body, and any medical or surgical treatment thereof; or; 2. any infection, except a pus -forming infection of an Accidental cut or wound; or 3. suicide or attempted suicide, while sane or insane; or 4. any intentionally self-inflicted Injury; or 5. war, declared or undeclared, whether or not You are a member of any armed forces; or 6. travel or flight in an aircraft while a member of the crew, or while engaged in the operation of the aircraft, or giving or receiving training or instruction in such aircraft; or 7. commission of, participation in, or an attempt to commit an assault or felony; or 8. under the influence of any narcotic, hallucinogen, barbiturate, amphetamine, gas or fumes, poison or any other controlled substance as defined in Title II of the Comprehensive Drug Abuse Prevention and Control Act of 1970, as now or hereafter amended, unless as prescribed by a licensed physician and used in the manner prescribed. Conviction is not necessary for a determination of being under the influence; or 9. intoxication as defined by the laws of the jurisdiction in which the Accident occurred or .08% blood alcohol content if the jurisdiction in which the Accident occurred does not define intoxication. Conviction is not necessary for a determination of being intoxicated; or 10. active participation in a Riot. Riot means all forms of public violence, disorder, or disturbance of the public peace, by three or more persons assembled together, whether with or without a common intent and whether or not damage to person or property or unlawful act is the intent or the consequence of such disorder. X0050 UNIFORM PROVISIONS (Applicable to Dismemberment Coverage Only) Initial Notice of Claim We must receive written notice of Loss within 30 days of the date of Loss, or as soon as reasonably possible. The Policyholder can assist with the appropriate telephone number and address of Our Claim Department. Notice may be sent to Our Claim Department at the address shown on the claim form or given to Our Agent. 0 FDLI-604-412 16 Claim Forms Within 15 days of Our being notified in writing of a claim, We will supply the claimant with the necessary claim forms. The claim form is to be completed and signed by the claimant, the Policyholder and the claimant's Doctor. If the appropriate claim forms are not received within 15 days, then the claimant will be considered to have met the requirements for written proof of lass if We receive written proof, which describes the occurrence, extent and nature of the Loss. Time Limit for Filing Your Claim We must receive written proof of loss within 91 days after the date a Loss is incurred. If it is not possible to give Us written proof within 91 days, the claim is not affected if the proof is given as soon as possible. However, unless the claimant is legally incapacitated, written proof of loss mast be given no later than one year after the time proof is otherwise due. No benefits are payable for claims submitted more than 1 year after the time proof is due. However, benefits may be paid for late claims if it can be shown that: 1. It was not reasonably possible to give written proof during the one year period, and 2. Proof of loss satisfactory to Us was given as soon as was reasonably possible. For the Education Benefit, proof of loss must: 1. Include proof of Dependent Student status; and 2. Be submitted no later than a. Two months after completion of course work for that particular school year if the Dependent Student is enrolled in a School of Higher Education at the time of Your death. School year shall be deemed to begin on September 1 st and end on August 31 st; or b. Within six (6) months after enrollment in a School of Higher Education if the Dependent Student is in the 12th grade at the time of Your death. After the first year in a School of Higher Education, due proof must be submitted in accordance with the time limits defined in Item (a) above. Physical Examination/Autopsy Upon receipt of a claim, We may examine an Insured, at Our expense, at any reasonable time. We reserve the right to perform an autopsy, at Our expense, if it is not prohibited by any applicable local law(s). 00051 Tx FDL 1-604-412 17 TERMINA TION PR 0 VISIONS 01 When does Your coverage under the Policy end? Your coverage will terminate on the earliest of the following dates. Termination will not affect Your claim for a covered Loss which occurred while the coverage was in force. 1. the date on which the Policy is terminated; 2. the date You stop making any required contribution toward payment of premiums; 3. the effective date of an amendment to the Policy which terminates insurance for the class to which You belong; or 4. the date You: a. are no longer a member of a class eligible for this insurance, b. request termination of coverage under the Policy, c. are retired or pensioned, or d. are no longer Actively at Work as a result of a disability, layoff, leave of absence, sabbatical or military leave. However, You may continue to be eligible for group insurance coverage, as follows: Disability Until the end of the twelfth month following the month in which the disability began, provided all premiums are paid when due, the Policy is in force, and Your coverage is not replaced with group life insurance provided by a new carrier. Layoff Until the end of the month following the month during which the layoff began, provided all premiums are paid when due, the Policy is in force, and Your coverage is not replaced with group life insurance provided by a new carrier. Leave of Until the end of the month following the month during which the leave of absence Absence began, or, the period of time in accordance with the FMLA provision below, provided all premiums are paid when due, the Policy is in force, and Your coverage is not replaced with group life insurance provided by a new carrier. Sabbatical Until the end of the month following the sixth month in which the sabbatical began, provided all premiums are paid when due, the Policy is in force, and Your coverage is not replaced with group life insurance proved by a new carrier. Military Until the end of the twelfth month following the month in which the military leave Leave began, provided all premiums are paid when due, the Policy is in force, and Your coverage is not replaced with group life insurance provided by a new carrier. For the purposes of this Termination Provision only, Disability means You are unable to perform all of the Material and Substantial Duties of Your Regular Occupation, C,(H)52TXa FDL l -604-412 18 Will coverage be continued if You are eligible for leave under FMLAY `---w In the event You are eligible for and the Policyholder approves a leave under the Family and Medical Leave Act of 1993 (FMLA), or any applicable state family and medical leave law (State FML), provided the required premium continues to be paid, the Policy is in force and Your coverage is not replaced with group life insurance provided by a new carrier, Your insurance will continue for a period of up to the later of: 1. the leave period permitted by the federal Family and Medical Leave Act of 1993 and any amendments; or 2. the leave period permitted by applicable state law. You are eligible for leave under this Act in order to provide care: 1. After the birth of a child; or 2. After the legal adoption of a child; or 3. After the placement of a foster child in Your home; or 4. To a spouse, child or parent due to their serious illness; or S. For Your own serious health condition. While granted a Family or Medical Leave of Absence: 1. The Policyholder must remit the required premium according to the terms of the Policy; and 2. coverage will terminate if You do not return to work as scheduled according to the terms of Your agreement with the Policyholder. pdaft 00053a 5 FDL1-604-412 19 GENERAL PROVISIONS Entire Contract, Changes The Policy, the Policyholder's Application, the Employee's Certificate of coverage, and Your application, if any, and any other attached papers, form the entire contract between the parties. Coverage under the Policy can be amended by mutual consent between the Policyholder and Us. No change in the Policy is valid unless approved in writing by one of Our officers. No agent has the right to change the Policy or to waive any of its provisions. Statements on the Application In the absence of fraud, all statements made in any signed application are considered representations and not warranties (absolute guarantees). No representation by: I. the Policyholder in applying for the Policy will make it void unless the representation is contained in his signed Application; or 2. any Employee in applying for insurance under the Policy will be used to reduce or deny a claim unless a copy of the application for insurance, signed by the Employee, is or has been given to the Employee. Legal Actions Unless otherwise provided by federal law, no legal action of any kind may be filed against Us: 0 1. until 60 days after proof of claim has been given; or 2. more than 3 years after proof of Loss must be filed, unless the law in the state where You live allows a longer period of time. 0 Clerical Error Clerical error or omission by Us to the Policyholder will not: I . Prevent You from receiving coverage, if You are entitled to coverage under the terms of the Policy; or 2. Cause coverage to begin or coverage to continue for You when the coverage would not otherwise be effective. If the Policyholder gives Us information about You that is incorrect, We will: 1. Use the facts to decide whether You have coverage under the Policy and in what amounts; and 2. Make a fair adjustment of the premium. Incontestability The validity of the Policy shall not be contested, except for non-payment of premiums, after it has been in force for two years from the date of issue. The validity of the Policy shall not be contested on the basis of a statement made relating to insurability by any person covered under the Policy after such insurance has been in force for two years during such person's lifetime, and shall not be contested unless the statement is contained in a written instrument signed by the person making such statement. Premlum Provisions Premiums are payable in United States dollars on or before their due dates. Premium charges for increases in insurance amounts becoming effective during a policy month will begin on the next premium due date. Premium charges for insurance terminating during a policy month will cease at the end of the month in which such insurance terminates. This method of charging premium is FDL 1 -604-412 20 for accounting purposes only. It will not extend any insurance coverage beyond the date it would r — � otherwise have terminated. (7- Misstatement of Age If You have misstated Your age, the true age will be used to determine: 1. the effective date or termination date of insurance; and 2. the amount of insurance; and 3. any other rights or benefits. Premiums will be adjusted to reflect the premiums that would have been paid if the true age had been known. Conformity with State Statutes and Regulations If any provision of the Policy conflicts with the statutes and regulations of the state in which the Policy was issued or delivered, it is automatically changed to meet the minimum requirements of the statute. Assignment You may assign any incident of ownership You may possess of the life insurance benefits provided under the Policy to anyone other than the Policyholder. We are not responsible for the validity or legal effect of any assignment. Collateral assignments, by whatever name called, are not permitted. FDLI-604-747-Gents REV2011 );DLI -604-412 2 L DEFINITIONS This section tells You the meaning of special words and phrases used in this Certificate. To help You recognize these special words and phrases, the first letter of each word, or each word in the phrase, is capitalized wherever it appears. Actively at Work or Active Work means that You must: 1. work for the Policyholder on a full-time active basis; or 2. work at least the minimum number of hours set forth in the Schedule of Benefits: and either: a. work at the Policyholder's usual place of business; or b. work at a location to which the Policyholder's business requires You to travel; 3. be paid regular earnings by the Policyholder, and 4. not be a temporary or seasonal Employee. You will be considered Actively at Work if You were actually at work on the day immediately preceding: 1. a weekend (except for one or both of these days if they are scheduled days of work); 2. holidays (except when such holiday is a scheduled work day); 3. paid vacations; 4. any non-scheduled work day; 5. excused leave of absence (except medical leave and lay-off); and 6. emergency leave of absence (except emergency medical leave); and You were not Hospital Confined or disabled due to an Injury or Sickness. 00061 0 Activities of Daily Living means: 1. Eating — Feeding oneself by getting food into the body from a receptacle (such as a plate, cup or table) or by a feeding tube or intravenously. 2. Toileting — Getting to and from the toilet, getting on and off the toilet and performing associated personal hygiene. 3. Transferring — Moving into or out of a bed, chair or wheelchair. 4. Bathing — Washing oneself by sponge bath; or in either a tub or shower, including the task of getting into or out of the tub or shower. 5. Dressing — Putting on and taking off all items of clothing and any necessary braces, fasteners or artificial limbs. 6. Continence — Ability to maintain control of bowel and bladder function; or when unable to maintain control of bowel or bladder function, the ability to perform associated personal hygiene (including caring for catheter or colostomy bag). 00062 Application means the document which sets forth the eligible classes, the amounts of insurance, and other relevant information pertaining to the plan of insurance for which the Policyholder applied. 00066 Doctor means a person legally licensed to practice medicine, psychiatry, psychology or psychotherapy, who is neither You nor a member of Your immediate family. A licensed medical practitioner is a Doctor if applicable state law requires that such practitioners be recognized for purposes of certification of Total FDL 1-604-412 22 Disability, Terminal Condition or covered Loss, and the treatment provided by the practitioner is within the scope of his or her license. 00073 Doctor's Statement means a written medical opinion of a Doctor currently licensed to practice in the United States which: 1. is made at Your expense; and 2. indicates that You have a Terminal Condition; and 3. includes all medical test results, laboratory reports, and any other information on which the medical opinion is based; and 4. indicates Your expected remaining life span; and 5. is acceptable to Us. 00125TX Employee means an Actively at Work full-time employee whose principal employment is with the Policyholder, at the Policyholder's usual place of business or such place(s) that the Policyholder's normal course of business may require, who is Actively at Work for the minimum hours per week as set forth in the Schedule of Benefits and is reported on the Policyholder's records for Social Security and withholding tax purposes. 00074 Gainful Occupation means any work or employment in which the insured Employee: 1. is or could reasonably become qualified, considering his or her education, training, experience, and mental or physical abilities; 2. could reasonably find work or employment, considering the demand in the national labor force; and 3. could earn (or reasonably expect to earn) a before -tax income at least equal to 60% of his or her Pre- disability Income. 00078 Hospital Confined means that, upon the recommendation of a Doctor, You are registered as an inpatient in a hospital, nursing home or other medical facility which provides skilled medical care or as an outpatient in a hospital because of surgery. You are not Hospital Confined if You are receiving emergency treatment or if You are hospitalized solely because of non-surgical medical or diagnostic test. 00081 Injury means bodily injury resulting directly from an Accident and independently of all other causes. 00082 Insured means an Employee covered under the Policy. 00083 Male Pronoun whenever used includes the female. 00088 Material and Substantial Duties means duties that are normally required for the performance of Your Regular Occupation and cannot be reasonably omitted or modified. 00089 Non -Contributory means the Policyholder pays 100% of the premium for this insurance. 00092 PDL 1-604-412 23 Policy means this contract between the Policyholder and Us including the attached Application, which provides group insurance benefits., 00097 Policyholder means the person, firm, or institution to whom the Policy was issued. Policyholder also means any covered subsidiaries or affiliates set forth on the face of the Policy. 00098 TX Registered Domestic Partner means an adult of the same or opposite gender who has an emotional, physical and financial relationship to You, similar to that of a Spouse, as evidenced by the following: I - You and Your Domestic Partner share financial responsibility for a joint household and intend to continue an exclusive relationship indefinitely; 2. You and Your Domestic Partner each are at least eighteen (l 8) years of age; 3. You and Your Domestic Partner are both mentally competent to enter into a binding contract; 4. You and Your Domestic Partner share a residence and have done so for at least 12 months; 5. Neither You nor Your Domestic Partner are married to or legally separated from anyone else; 6. You and Your Domestic Partner are not related to one another by blood closer than would bar marriage; and Neither You nor Your Domestic Partner is a Domestic Partner of anyone else. Where the laws of the governing jurisdiction mandate a definition of Registered Domestic Partner other than shown above, that definition will be used in the Policy. 00104 Regular Occupation means the occupation that You are routinely performing when Your life insurance terminates due to Disahility. We will look at Your occupation as it is normally performed in the national economy, instead of how the work tasks are performed for a specific Policyholder or at a specific location. 00105 Sickness means illness, disease, pregnancy or complications of pregnancy. 00109 Terminal Condition means You have been examined and diagnosed by Your Doctor as having a non - correctable health condition that, with reasonable medical certainty, will result in Your death within 12 months from the date of the Doctor's Statement. 00115 TX We, Our and Us means Dearborn National Life Insurance Company, Chicago, Illinois. 00119 You, Your and Yours means the eligible Employee to whom this Certificate is issued and whose insurance is in force under the terms of the Policy. 00120 FDLI-604-412 24 Administrative Office: 1020 31g Street Downers Grove, Illinois 60515 DEARBORN NATIONAL® LIFE INSURANCE COMPANY Chicago, Illinois RIDER This Rider is made a part of the Policy or Certificate (hereafter "the Policy") to which it is attached. It takes effect and ends at the same time as the Policy. All provisions of the Policy, including any other Riders or Amendatory Endorsements will apply to this Rider, except that in the event of a conflict, the specific provisions of this Rider will govern. Travel Resource Services What is the Travel Resource Services? Travel Resource Services is a non -insurance benefit made available to You which provides access at no additional cost to the following services: • Access to a toll free number in the event You encounter an emergency while traveling more than 100 miles from Your principal residence. • Access to on-line tools and resources for any pre -trip assistance You may need. How is Travel Resource Services accessed? Your employer will provide You with an identification card to be used whenever services are needed. This card will give You access to the toll-free number used to initiate the services. The Travel Resource Services program is administered and provided by Europ Assistance USA, Inc. Dearborn National Life Insurance Company does not underwrite or administer this program. When do the Travel Resource Services terminate? The Travel Resource Services terminate if Your coverage is terminated under the section on When does Your coverage under the Policy end? found in the Termination Provision of the Policy. President Nothing contained in this Rider shall be held to alter or affect any provision or condition of the Policy other than as stated above. FDLI-NIB-TRS-210 NOTICE to the Policyholder and Certificate holder under the Group Term Life Insurance Policy Provided by Dearborn National Life Insurance Company Regarding the Travel Resource Services Noninsurance Benefit This notice is to advise you that Your Group Term Life Insurance program also provides a non - insurance benefit: Travel Resource Services. Noninsurance Benefit Description Travel Resource Services is a service that provides telephonic access to emergency assistance while traveling more than one hundred (100) miles from Your home and access to on-line travel tools and resources when preparing a trip. This noninsurance benefit is available at the option of the Policyholder without any action required on the part of an insured person to either accept or decline the service. There is no charge for this noninsurance benefit. The service is currently administered by Europ Assistance USA, Inc. Dearborn National Life Insurance Company (sometimes referred to as "We" or "Our") makes this program available, but it does not underwrite or administer the Travel Resource Services program. Why This Service is Beine Made Available We are making this service available to provide support and assistance to persons who are traveling or preparing to travel, in addition to the group life and accidental death benefits available under this Policy. If an emergency occurs on a trip, counselors are available to assist in locating nearby hospitals, assist in recovering lost passports, medical evacuations, and other emergencies. Advice at the planning stage of a trip is available. Accessine Travel Resource Services Services may be accessed by contacting the program administrator at 1-877-715-2593., Termination of the Noninsurance Benefit This noninsurance benefit is provided free of charge as a courtesy. It is subject to termination at our option or at the option of the program administrator. If We discontinue this service We will notify the Policyholder not less than thirty (30) days in advance of the discontinuance of this service. If the current program administrator discontinues the program and we are unable to find a replacement, we will notify the Policyholder as soon as is reasonable under the circumstances. If discontinued, the services available under this noninsurance benefit will no longer be available. Unless terminated by Us or by the Program administrator, the Travel Resource Services noninsurance benefit is available following a covered loss for as long as you remain covered under the group term life insurance policy and such policy remains in effect. n NEB -TRS -Notice (4:2412) ERISA INFORMATION STATEMENT* The benefits described in your certificate are insured by a Policy issued by Dearborn National Life Insurance Company ("Dearborn National"), pursuant to an Employee Welfare Benefit Plan (" the Plan") established by your employer ("the Company"). This ERISA Information Statement ("EIS") describes some of the key provisions of the Plan in effect as of the Effective Date of the Policy. It is not the intention of the EIS to cover all situations that may arise, but to provide you with a general understanding of your benefits. In the case of any item not covered by the EIS or in the event of any conflict between the EIS and the Policy, the Plan will always control. You should not rely on any oral explanation, description, or interpretation of the Plan because the written terms of the Plan will govern. Your right to any benefit depends on the actual facts and terms and conditions of the particular Plan; no rights accrue by reason of or arising out of any statement shown in or omitted from this EIS. A. ADMINISTRATION OF THE PLAN The Plan Administrator is responsible for the administration of the Plan. The Plan Administrator has full discretionary authority and control over the Plan. This authority provides the Plan Administrator with the power necessary to operate, manage and administer the Plan. This authority includes, but is not limited to, the power to interpret the Plan and determine who is eligible to participate, to determine the amount of benefits that may be paid to a participant or his or her beneficiary, and the status and rights of participants and beneficiaries. The Plan Administrator also has the authority to prescribe the rules and procedures under which the Plan shall operate, to request information, and to employ or appoint persons to aid the Plan Administrator in the administration of the Plan. Failure by the Plan or the Plan Administrator to insist upon compliance with any provisions of the Plan at any time or under any set of circumstances shall not operate to waive or modify the provision or in any manner render it unenforceable as to any other time or as to any other occurrence, whether the circumstances are or are not the same. No waiver of any term or condition of the Plan shall be valid unless contained in a written memorandum expressing the waiver and signed by the person authorized by the Plan Administrator to sign the waiver. The Plan may be amended, terminated or suspended in whole or in part, at any time without the consent of the employees or beneficiaries. Any amendment, termination or suspension shall be in writing, and attached to the Plan. Any amendment, termination or suspension shall be executed according to the Employer's authorized procedures. Any such authorization may be specific to the Plan or persons authorized to act on behalf of the Employer or may be general as to duties of such person. Except for termination or suspensions, any amendments affecting the Policy and/or Certificate must also be approved in writing by an officer of Dearborn National and shall be effective as of the date agreed to, in writing by the Plan Sponsor and Dearborn National. Notwithstanding anything to the contrary in this document, the Policy shall terminate according to the provisions in the Policy. The Plan has other fiduciaries, advisors and service providers. The Plan Administrator may allocate fiduciary responsibility among the Plan's fiduciaries and may delegate responsibilities to others. Any allocation or delegation must be done in writing and kept with the records of the Plan. The Plan's life benefits are provided pursuant to an insurance policy issued to the Company. Dearborn National's (the Insurer's) services shall be limited to, and the Plan Administrator has the foil discretionary and final authority to: resolve all matters when a review pursuant to the claims procedures has been requested; - interpret, establish and enforce rules and procedures for the administration of the Policy and any claim under it; and determine eligibility of Employees and Dependents for benefits and their entitlement to and the amount of benefits. Each fiduciary is solely responsible for its own improper acts or omissions. Except to the extent required by ERISA, no fiduciary has the duty to question whether any other fiduciary is fulfilling all of the responsibilities imposed upon the other fiduciary by law. Nor is a fiduciary liable for a breach of fiduciary duty committed before it became, or after it stopped being, a fiduciary. However, a fiduciary may be liable for a breach of fiduciary responsibility of any Plan fiduciary, to the extent provided in ERISA Section 405(a). The Employer makes no promise to continue these " If this Plan is an ERISA plan, these ERISA provisions apply. However, your employer may issue a Summary Plan Description ("SPD"). If it does, and if there are any conflicts between the SPD and the EIS in regards to your ERISA rights, the SPD provisions will always control. FDL EIS Standard 4/2009 rev'd benefits in the future and rights to future benefits will never vest. Retirement does not give any retiree any vested right to continue to participate or receive Plan benefits. 0 B. CLAIMS PROCEDURE: When you or your Beneficiary are eligible to receive benefits, you or your Beneficiary, or your authorized representative (collectively, "you") must notify the Plan Administrator by submitting the proper form in writing. You may do this by sending notice of your claim to the PIan Administrator who has been appointed to assist Dearborn National in the claims processing for this Plan or by contacting Dearborn National directly at: Claims Department Dearborn National Life Insurance Company 1020 31 st Street Downers Grove, IL. 50515-5591 1-800-348-4512 For the purpose of this Section, including Subsections 1 and 2 below, the terms "written" and "in writing" include "electronic." Any action required to be "written" or "in writing," may be done electronically, where available. If Dearborn National uses electronic notices, it will do so in accordance with 29 CFR 2520.104b - 10(i), (iii) and (iv). I. Disability Insurance Plans Dearborn National will give you a written response to your claim, usually within 45 days. The time for decision may be extended for two additional 30 day periods provided that, prior to any extension period, Dearborn National notifies you in writing that an extension is necessary due to matters beyond the control of the Plan, identifies those matters and gives the date by which it expects to render its decision. If the extension is due to your failure to submit information necessary to decide your claim, the time for decision shall be tolled from the date on which we send you notice of the extension until the date we receive your response to our request. This period will be no longer than 45 days after we have requested the information. At that time we will decide your claim based on the information we have at that time. 0 If the claim is denied, in whole or in part, you will receive a written notice giving the following: the reason for the denial; the Policy provisions on which the denial is based; an explanation of what other information, if any, may be needed to process the claim and why it is needed; the steps that you have to follow to have the claim reviewed; a statement that you have the right to bring a civil action under section 502(a) of ERISA after you appeal our decision and after you receive a written denial on appeal; and - if an internal rule, guideline, protocol, or other similar criterion was relied upon in making the denial, either (i) the specific rule, guideline, protocol or other similar criterion; or (ii) a statement that such a rule, guideline, protocol or other similar criterion was relied upon in making the denial and that a copy will be provided free of charge to you upon request; and if denial is based on medical judgment, either (i) an explanation of the scientific or clinical judgment for the determination, applying the terms of the Plan to your medical circumstances, or (ii) a statement that such explanation will be provided to you free of charge upon request. If the claim has been denied, in whole or in part, you can appeal the denial to us for a full and fair review. You have at least 180 days to appeal from the claim denial. You may: a. request a review upon written application within 180 days of the claim denial; b. request, free of charge, copies of all documents, records and other information relevant to your claim; and * If this Plan is an ERISA plan, these ERISA provisions apply. However, your employer may issue a Summary Plan Description ("SPD"). If it does, and if there are any conflicts between the SPD and the EIS in regards to your ERISA rights, the SPD provisions will always control. FDL EIS Standard 412009 rev'd. C. submit written comments, documents, records and other information relating to your claim, without regard to whether such information was submitted or considered in the initial benefit determination. Dearborn National will make a decision no more than 45 days after we receive your appeal. The time for decision may be extended for one additional 45 day period provided that, prior to the extension, Dearborn National notifies you in writing that an extension is necessary due to special circumstances, identifies those circumstances and gives the date by which it expects to render its decision. If your claim is extended due to your failure to submit information necessary to decide your claim on appeal, the time for your decision shall be tolled from the date on which the notification of the extension is sent to you until the date we receive your response to the request. The written decision will include specific references to the Plan provisions on which the decision is based and any other notice(s), statement(s) or information required by applicable law. 2. Life Insurance Plans Dearborn National will give you a decision no more than 90 days after receipt of due proof of loss, except in special circumstances (such as the need to obtain further information), but in no case more than 180 days after the due proof of loss is received. The written decision will include specific reasons for the decision and specific references to the Plan provisions on which the decision is based. If the claim is denied, in whole or in part, the claimant will receive a written notice giving the following: the reason for the denial; the Policy provisions on which the denial is based; an explanation of what other information, if any, may be needed to process the claim and why it is needed; and the steps that have to be followed to have the claim reviewed. Any denied claim may be appealed to the Insurer for a hill and fair review. The claimant may: a) request a review upon written application within 60 days of receipt of claim denial; b) upon request and free of charge, review pertinent documents, records and other information relevant to the claim and receive copies of same; and C) submit issues, comments, records, and other information in writing. A decision will be made by the Insurer no more than 60 days after receipt of the request for review, except in special circumstances (such as the need to obtain additional evidence), but in no case more than 120 days after the request for review is received. The written decision will include specific reasons for the decision and specific references to the Plan provisions on which the decision is based. The decision will advise you of any other appeal rights you have under the Plan, as well as your right to bring an action under Section 502(x) of ERISA. C. ERISA NOTICE OF YOUR RIGHTS As a participant in the Plan you are entitled to certain rights and protections under the Employee Retirement Income Security Act of 1974 ("ERISA"). ERISA provides that all Plan participants shall be entitled to: Examine, without charge, at the Plan Administrator's office and at other locations, such as work sites and union halls, all Plan documents, including insurance contracts, collective bargaining agreements and copies of all documents filed with the U.S. Department of Labor, such as detailed annual reports and Plan descriptions. Obtain copies of all Plan documents and other Plan information upon written request to the Plan Administrator. The Plan Administrator may make a reasonable charge for the copies. Receive a summary of the Plan's annual financial report. The Plan Administrator is required to furnish each participant with a copy of this summary annual report. In addition to creating rights for the Plan participants, ERISA imposes duties upon the people who are responsible for the operation of the employee benefit Plan. The people who operate your Plan, called "fiduciaries" of the Plan, have a duty to do so prudently and in the interest of you and other Plan participants and beneficiaries. No one, including your employers, your union, or any other persons, may fire you or otherwise discriminate against you in any way to prevent you from obtaining a welfare benefit or exercising your rights under ERISA. If your claim for a welfare benefit is denied in whole or in part you must receive a written explanation of the reason for the • If this Plan is an ERISA plan, these ERISA provisions apply. However, your employer may issue a Summary Plan Description ("SPD"). If it does, and if there are any conflicts between the SPD and the EIS in regards to your ERISA rights, the SPD provisions will always control. FDL EIS Standard 4!2009 rev'd denial. You have the right to have the Plan review and reconsider your claim. Under ERISA, there are steps you can take to enforce your rights. For instance, if you request materials from the plan and do not receive them within 30 days, you may file a suit in federal court. In such a case, the court may require the Plan Administrator to provide the materials and pay you up to $110 a day until you receive the materials, unless the materials were not sent because of reasons beyond the control of the Plan Administrator. If you have a claim for benefits which is denied or ignored, in whole or in part, you may file suit in a state or federal court. If it should happen that Plan fiduciaries misuse the Plan's money, or if you are discriminated against for asserting your rights, you may seek assistance from the U.S. Department of Labor, or you may file suit in federal court. The court will decide who should pay costs and legal fees. If you are successful the court may order the person you have sued to pay these costs and fees. If you lose, the court may order you to pay these costs and fees, for example, if it finds your claim is frivolous. If you have any questions about this statement or about your rights under ERISA, you should contact the nearest office of the Pension and Welfare Benefits Administration, United States Department of Labor, listed in your telephone directory or the Division of Technical Assistance and Inquiries, Employee Benefit Security Administration, United States Department of Labor, 200 Constitution Avenue, NW Washington DC 20210. D. PARTICIPANT'S RIGHTS This Plan shall not be deemed to constitute a contract between the Company and any participant or to be consideration or an inducement for the employment of any participant or employee. Nothing contained in this Plan shall be deemed to give any participant or employee the right to be retained in the service of the Company or to interfere with the right of the Company to discharge any participant or employee at any time regardless of the effect which such discharge shall have upon him or her as a participant of this Plan. 101 * If this Plan is an ERISA plan, these ERISA provisions apply. However, your employer may issue a Summary Plan Description ("SPD"). If it does, and if there are any conflicts between the SPD and the EIS in regards to your ERISA rights, the SPD provisions will always control. FDL EIS Standard 4/2009 rev'd Dearborn � rrational0 Administrative Office: 1020 31st Street- Downers Grove, IL 60515-5591 Products and services marketed under the Dearborn National brand and the star logo are underwritten and/or provided by Dearborn National ® Life Insurance Company (Downers Grove, IL) in all states (excluding New York), the District of Columbia, the United States Virgin Islands, the British Virgin Islands, Guam and Puerto Rico. Dearborn National® Life Insurance Administrative Office: Company 1020 31st Street t Downers Grove IL 60515-5591 (A stock life insurance company, herein called the "We" "us" or "Our") Policyholder: SAMPLE TX Policy Number: SAMPLETX-0001 Policy Effective Date: July 1, 2012 Anniversary Date: July 1 We agree with the Policyholder to insure certain eligible Employees of the Policyholder. We promise to pay benefits for loss covered by the Policy in accordance with its provisions. The Policyholder should read this Policy carefully and contact Dearborn National& Life Insurance Company promptly with any questions. Policyholder means the Employer to whom the Policy is issued and who sponsored the coverage for its Employees. Employer means the Policyholder and includes any division, subsidiary, or affiliated company named in the Policy. POLICY EFFECTIVE DATE AND TERM The Policy takes effect on the Policy Effective Date stated above subject to any participation requirement stated in the Policy. All insurance periods will be computed from that date. The Policy remains in force for the period for which premium has been paid. It may be renewed for further successive periods by payment of premium as stated in the Policy. All periods of insurance begin and end at 12:01 A.M., Standard Time, at the Policyholder's address as stated in the Policy, and on the Application. Signed for Dearborn National Life Insurance Company Secretary President Basic Group Term Life Insurance Policy with Accidental Death & Dismemberment Insurance Benefits Non -Participating FDL 1-504-412 TX TABLE OF CONTENTS PROVISION PAGE Premium. Premium Rate Guarantee Policy Termination Additional Provisions Rate Addendum Application Attached ATTACHMENTS: • Master Application • Certificate of Insurance D FDL 1-504-412 TX 2 ._, PREMIUM How is the initial premium cakuhded? Initial life, AD&D and Dependent Life insurance premium is calculated in accordance with the rates set forth on the attached Rate Addendum. When is premium paid? The Policy is issued in consideration of the payment in advance of premium on the premium due date indicated on the Application. Payment must be made by the premium due date as shown on the Application. If an addition, termination or change in insurance takes place other than on a regular due date, any premium adjustment will take effect on the next due date. Is premium payable while an Insured receives benefits? We will waive premium for an insured Employee in accordance with the Waiver of Premium provision of the Policy. Is there a grace period for premium payment? We will allow a grace period of 31 days for the payment of any premiums due except the first, Insurance coverage shall continue in force during the grace period unless the Policyholder has given Us advance written notice of cancellation in accordance with the terms of this Policy. If premium is not received by the end of the grace period, this Policy will terminate as of the last date for which premium was paid. The Policyholder is liable for premium due on coverage provided during the grace period. If We receive written notice during the grace period that the Policy is to be canceled, We will cancel it as of the later of - 1. the date requested in the cancellation notice; or 2. the date We receive such notice. The Policyholder must pay a pro rata premium for any coverage provided during the grace period. PREMIUM RATE GUARANTEE What is the initial premium rate guarantee? A change in premium rates will not take effect before July 1, 2013. However, We may change premium rates if the risk assumed changes. Premium rates may change if the following occurs: 1. a change in the Policy design; 2. a change in the terms of the Policy; 3. addition or deletion of a division, subsidiary or affiliated company; 4. a change in the number of Insureds by 10% or more from the number of Insureds on the initial Effective Date; S. a change in the laws or regulations or other government action which applies to the Policy; 6. for reasons other than 1-5 above such as but not limited to a change in factors bearing on the risk assumed. The Policyholder must furnish notice and documentation satisfactory to Us within 31 days of the occurrence of any event which would cause a change in rates as described above. If the Policyholder fails to provide such timely notice, we will apply new rates retroactively to the date of the event. We will notify the Policyholder in writing at least 31 days in advance of any premium rate changes. A change may take effect on an earlier date if both the Policyholder and We agree. FDLI-504-412 TX 3 POLICY TERMINATION Who nray cancel the Policy or a plan under the Policy? The Policy or a plan under the Policy can be canceled by the Policyholder with 31 days written notice delivered to Us. This Policy will terminate for any of the following reasons: 1. If the Policyholder fails to pay any premium within the 31 -day Grace Period, this Policy will terminate in accordance with the terms set forth in the Grace Period provision. 2. We may terminate this Policy on any premium due date if- a. f a. coverage is Contributory and less than 75% of the eligible Employees participate; or b. coverage is Noncontributory and less than 104% of the eligible Employees participate; or c. the Policyholder fails to perform any of its obligations that relate to the Policy; or d. the Policyholder does not promptly provide Us with information that is reasonably required; or e. fewer than 2 Employees are insured under the Policy. If We cancel the Policy, for reasons other than the Policyholder's failure to pay premium, a written notice will be delivered to the Policyholder at least 31 days prior to the cancellation date. ADDITIONAL PROVISIONS What happens if an inadvertent error occurs? Clerical error or omission by Us to the Policyholder will not: 1. Prevent an Employee from receiving coverage, if he is entitled to coverage under the terms of the Policy; or 2. Cause coverage to begin or coverage to continue for an Employee when the coverage would not otherwise be effective. 0 If the Policyholder gives Us information about an Employee that is incorrect, We will: 1. Use the facts to decide whether the Employee has coverage under the Policy and in what amounts; and 2. Make a fair adjustment of the premium. Will certifuates be issued? We will deliver certificates of insurance to the Policyholder for issuance to each insured Employee. The certificates will describe the benefits, to whom they are payable, the Policy limitations and where the Policy may be inspected. What is considered to be the entire contract? This entire Policy consists of: 1. all Policy provisions and any amendments and/or attachments issued; 2. the Certificate of Coverage; and 3. the Policyholder's signed Application. FDL1-504-412 TX 4 RATE ADDENDUM (All Rates Per $1, 000 Per Month unless otherwise stated) Term Life: $0.00 Accidental Death & Dismemberment: $0.11 FDLI-504-412 TX STATE SUPPLEMENT The following policies apply only to those individuals in your group insurance program who reside in the referenced states. Arizona and Maine Except as otherwise permitted by law, we will not disclose collected personal information about an individual to a nonaffiliated third party with whom we jointly offer products without giving the individual an opportunity to tell us that he or she does not want us to share his or her personal information. Minnesota and Montana Except as otherwise permitted by law, we will not disclose collected personal information about an individual to a nonaffiliated third party with whom we jointly offer products without obtaining the individual's written authorization. Montana Upon written request, an individual who has authorized the collection of health information is entitled to receive a record of Dearborn National's disclosures of any of his medical record information made within the preceding 3 years. Oregon An individual has the right to authorize disclosure of his or her personal information to an insurance company. An Oregon resident can exercise this right by requesting an authorization form in writing. Our address is: Dearborn National® Life Insurance Company 1020 31 st Street Downers Grove, IL 60515 FDL1-504-412 TX ERISA INFORMATION STATEMENT* The benefits described in your certificate are insured by a Policy issued by Dearborn National Life Insurance Company ("Dearborn National"), pursuant to an Employee Welfare Benefit Plan (" the Plan") established by your employer ("the Company"). This ERISA Information Statement ("EIS") describes some of the key provisions of the Plan in effect as of the Effective Date of the Policy. It is not the intention of the EIS to cover all situations that may arise, but to provide you with a general understanding of your benefits. In the case of any item not covered by the EIS or in the event of any conflict between the EIS and the Policy, the Plan will always control. You should not rely on any oral explanation, description, or interpretation of the Plan because the written terms of the Plan will govern. Your right to any benefit depends on the actual facts and terms and conditions of the particular Plan; no rights accrue by reason of or arising out of any statement shown in or omitted from this EIS. A. ADMINISTRATION OF THE PLAN The Plan Administrator is responsible for the administration of the Plan. The Plan Administrator has full discretionary authority and control over the Plan. This authority provides the Plan Administrator with the power necessary to operate, manage and administer the Plan. This authority includes, but is not limited to, the power to interpret the Plan and determine who is eligible to participate, to determine the amount of benefits that may be paid to a participant or his or her beneficiary, and the status and rights of participants and beneficiaries. The Plan Administrator also has the authority to prescribe the rules and procedures under which the Plan shall operate, to request information, and to employ or appoint persons to aid the Plan Administrator in the administration of the Plan. Failure by the Plan or the Plan Administrator to insist upon compliance with any provisions of the Plan at any time or under any set of circumstances shall not operate to waive or modify the provision or in any manner render it unenforceable as to any other time or as to any other occurrence, whether the circumstances are or are not the same. No waiver of any term or condition of the Plan shall be valid unless contained in a written memorandum expressing the waiver and signed by the person authorized by the Plan Administrator to sign the waiver. The Plan may be amended, terminated or suspended in whole or in part, at any time without the consent of the employees or beneficiaries. Any amendment, termination or suspension shall be in writing, and attached to the Plan. Any amendment, termination or suspension shall be executed according to the Employer's authorized procedures. Any such authorization may be specific to the Plan or persons authorized to act on behalf of the Employer or may be general as to duties of such person. Except for termination or suspensions, any amendments affecting the Policy and/or Certificate must also be approved in writing by an officer of Dearborn National and shall be effective as of the date agreed to, in writing by the Plan Sponsor and Dearborn National. Notwithstanding anything to the contrary in this document, the Policy shall terminate according to the provisions in the Policy. The Plan has other fiduciaries, advisors and service providers. The Plan Administrator may allocate fiduciary responsibility among the Plan's fiduciaries and may delegate responsibilities to others. Any allocation or delegation must be done in writing and kept with the records of the Plan. The Plan's life benefits are provided pursuant to an insurance policy issued to the Company. Dearborn National's (the Insurer's) services shall be limited to, and the Plan Administrator has the full discretionary and final authority to: resolve all matters when a review pursuant to the claims procedures has been requested; interpret, establish and enforce rules and procedures for the administration of the Policy and any claim under it; and determine eligibility of Employees and Dependents for benefits and their entitlement to and the amount of benefits. Each fiduciary is solely responsible for its own improper acts or omissions. Except to the extent required by ERISA, no fiduciary has the duty to question whether any other fiduciary is fulfilling all of the responsibilities imposed upon the other fiduciary by law. Nor is a fiduciary liable for a breach of fiduciary duty committed before it became, or after it stopped being, a fiduciary. However, a fiduciary may be liable for a breach of fiduciary responsibility of any Plan fiduciary, to the extent provided in ERISA Section 405(a). The Employer makes no promise to continue these * If this Plan is an ERISA plan, these ERISA provisions apply. However, your employer may issue a Summary Plan Description ("SPD"). If it does, and if there are any conflicts between the SPD and the EIS in regards to your ERISA rights, the SPD provisions will always control. FDL EIS Standard 4/2009 rev d. benefits in the future and rights to future benefits will never vest. Retirement does not give any retiree any vested right to continue to participate or receive Plan benefits. B. CLAIMS PROCEDURE: When you or your Beneficiary are eligible to receive benefits, you or your Beneficiary, or your authorized representative (collectively, "you") must notify the Plan Administrator by submitting the proper form in writing. You may do this by sending notice of your claim to the Plan Administrator who has been appointed to assist Dearborn National in the claims processing for this Plan or by contacting Dearborn National directly at: Claims Department Dearborn National Life Insurance Company 1020 31 st Street Downers Grove, IL. 60515-5591 1-800-348-4512 For the purpose of this Section, including Subsections 1 and 2 below, the terms "written" and "in writing" include "electronic." Any action required to be "written" or "in writing," may be done electronically, where available. If Dearborn National uses electronic notices, it will do so in accordance with 29 CFR 2520.104b - 10(i), (iii) and (iv). 1. Disability Insurance Plans Dearborn National will give you a written response to your claim, usually within 45 days. The time for decision may be extended for two additional 30 day periods provided that, prior to any extension period, Dearborn National notifies you in writing that an extension is necessary due to matters beyond the control of the Plan, identifies those matters and gives the date by which it expects to render its decision. If the extension is due to your failure to submit information necessary to decide your claim, the time for decision shall be tolled from the date on which we send you notice of the extension until the date we receive your response to our request. This period will be no longer than 45 days after we have requested the information. At that time we will decide your claim based on the information we have at that time. 0 If the claim is denied, in whole or in part, you will receive a written notice giving the following: the reason for the denial; the Policy provisions on which the denial is based; - an explanation of what other information, if any, may be needed to process the claim and why it is needed; - the steps that you have to follow to have the claim reviewed; - a statement that you have the right to bring a civil action under section 502(a) of ERISA after you appeal - our decision and after you receive a written denial on appeal; and if an internal rule, guideline, protocol, or other similar criterion was relied upon in making the denial, either (i) the specific rule, guideline, protocol or other similar criterion; or (ii) a statement that such a rule, guideline, protocol or other similar criterion was relied upon in making the denial and that a copy will be provided free of charge to you upon request; and if denial is based on medical judgment, either (i) an explanation of the scientific or clinical judgment for the determination, applying the terms of the Plan to your medical circumstances, or (ii) a statement that such explanation will be provided to you free of charge upon request. If the claim has been denied, in whole or in part, you can appeal the denial to us for a full and fair review. You have at least 180 days to appeal from the claim denial. You may: a. request a review upon written application within 180 days of the claim denial; b. request, free of charge, copies of all documents, records and other information relevant to your claim; and * If this Plan is an ERISA plan, these ERISA provisions apply, However, your employer may issue a Summary Plan Description ("SPD"). If it does, and if there are any conflicts between the SPD and the EIS in regards to your ERISA rights, the SPD provisions will always control. FDL EIS Standard 4/2409 rev'd. e-1 C. submit written comments, documents, records and other information relating to your claim, without regard to whether such information was submitted or considered in the initial benefit determination. Dearborn National will make a decision no more than 45 days after we receive your appeal. The time for decision may be extended for one additional 45 day period provided that, prior to the extension, Dearborn National notifies you in writing that an extension is necessary due to special circumstances, identifies those circumstances and gives the date by which it expects to render its decision. If your claim is extended due to your failure to submit information necessary to decide your claim on appeal, the time for your decision shall be tolled from the date on which the notification of the extension is sent to you until the date we receive your response to the request. The written decision will include specific references to the Plan provisions on which the decision is based and any other notice(s), statement(s) or information required by applicable law. 2. Life Insurance Plans Dearborn National will give you a decision no more than 90 days after receipt of due proof of loss, except in special circumstances (such as the need to obtain further information), but in no case more than 180 days after the due proof of loss is received. The written decision will include specific reasons for the decision and specific references to the Plan provisions on which the decision is based. If the claim is denied, in whole or in part, the claimant will receive a written notice giving the following: the reason for the denial; the Policy provisions on which the denial is based; an explanation of what other information, if any, may be needed to process the claim and why it is needed; and the steps that have to be followed to have the claim reviewed. Any denied claim may be appealed to the Insurer for a full and fair review. The claimant may: a) request a review upon written application within 60 days of receipt of claim denial; b) upon request and free of charge, review pertinent documents, records and other information relevant to the claim and receive copies of same; and C) submit issues, comments, records, and other information in writing. A decision will be made by the Insurer no more than 60 days after receipt of the request for review, except in special circumstances (such as the need to obtain additional evidence), but in no case more than 120 days after the request for review is received. The written decision will include specific reasons for the decision and specific references to the Plan provisions on which the decision is based. The decision will advise you of any other appeal rights you have under the Plan, as well as your right to bring an action under Section 502(a) of ERISA. C. ERISA NOTICE OF YOUR RIGHTS As a participant in the Plan you are entitled to certain rights and protections under the Employee Retirement Income Security Act of 1974 ("ERISA"). ERISA provides that all Plan participants shall be entitled to: Examine, without charge, at the Plan Administrator's office and at other locations, such as work sites and union halls, all Plan documents, including insurance contracts, collective bargaining agreements and copies of all documents filed with the U.S. Department of Labor, such as detailed annual reports and Plan descriptions. Obtain copies of all Plan documents and other Plan information upon written request to the Plan Administrator. The Plan Administrator may make a reasonable charge for the copies. Receive a summary of the Plan's annual financial report. The Plan Administrator is required to furnish each participant with a copy of this summary annual report. In addition to creating rights for the Plan participants, ERISA imposes duties upon the people who are responsible for the operation of the employee benefit Plan. The people who operate your Plan, called "fiduciaries" of the Plan, have a duty to do so prudently and in the interest of you and other Plan participants and beneficiaries. No one, including your employers, your union, or any other persons, may fire you or otherwise discriminate against you in any way to prevent you from obtaining a welfare benefit or exercising your rights under ERISA. If your claim for a welfare benefit is denied in whole or in part you must receive a written explanation of the reason for the * If this Plan is an ERISA plan, these ERISA provisions apply. However, your employer may issue a Summary Plan Description ("SPD"). If it does, and if there are any conflicts between the SPD and the EIS in regards to your ERISA rights, the SPD provisions will always control. FDL EIS Standard 4/2009 rev'd. denial. You have the right to have the Plan review and reconsider your claim. Under ERISA, there are steps you can take to enforce your rights. For instance, if you request materials from the plan and do not receive them within 30 days, you may file a suit in federal court. In such a case, the court may require the Plan Administrator to provide the materials and pay you up to $110 a day until you receive the materials, unless the materials were not sent because of reasons beyond the control of the Plan Administrator. If you have a claim for benefits which is denied or ignored, in whole or in part, you may file suit in a state or federal court. If it should happen that Plan fiduciaries misuse the Plan's money, or if you are discriminated against for asserting your rights, you may seek assistance from the U.S. Department of Labor, or you may file suit in federal court. The court will decide who should pay costs and legal fees. If you are successful the court may order the person you have sued to pay these costs and fees. If you lose, the court may order you to pay these costs and fees, for example, if it finds your claim is frivolous. If you have any questions about this statement or about your rights under ERISA, you should contact the nearest office of the Pension and Welfare Benefits Administration, United States Department of Labor, listed in your telephone directory or the Division of Technical Assistance and Inquiries, Employee Benefit Security Administration, United States Department of Labor, 200 Constitution Avenue, NW Washington DC 20210. D. PARTICIPANT'S RIGHTS This Plan shall not be deemed to constitute a contract between the Company and any participant or to be consideration or an inducement for the employment of any participant or employee. Nothing contained in this Plan shall be deemed to give any participant or employee the right to be retained in the service of the Company or to interfere with the right of the Company to discharge any participant or employee at any time regardless of the effect which such discharge shall have upon him or her as a participant of this Plan. ' If this Plan is an ERISA plan, these ERISA provisions apply. However, your employer may issue a Summary Plan Description ("SPD"). If it does, and if there are any conflicts between the SPD and the EIS in regards to your ERISA rights, the SPD provisions will always control. PDI, EIS Standard 4/2009 rev'd Voluntary Term Life and AD&D Insurance Employee Benefit Booklet SAMPLE TEXAS SAMPLE TX -0001 Class 1-01 A 6 lonal9 Products and services marketed under the Dearborn National® brand and the star logo are underwritten and/or provided by Dearborn National® Life Insurance Company (Downers Grove, IL) in all states (excluding New York), the District of Columbia, the United States Virgin Islands, the British Virgin Islands, Guam and Puerto Rico. 12/20/2012 Dearborn National® Life Insurance Administrative Office: Company 1020 31 st Street p y Downers Grove IL 60515-5591 (A stock life insurance company, herein called the "We" "Us" or "Our") Having issued Group Policy No. SAMPLE TX -0001 herein called the Polic to SAMPLE TEXAS (herein called the Policyholder) GROUP INSURANCE CERTIFICATE CERTIFIES that You are insured, provided that You qualify under the ELIGIBILITY AND EFFECTIVE DATES provision, become insured and remain insured in accordance with the terms of the Policy. Your insurance is subject to all the definitions, limitations and conditions of the Policy, and it takes effect as stated in the ELIGIBILITY AND EFFECTIVE DATES provision. This Certificate describes Your eligibility for benefits and the terms and provisions of the Policy. It replaces and cancels any other Certificate previously issued to You under the Policy. If the terms and provisions of the Group Insurance Certificate (issued to You) are different from the policy (issued to the Policyholder), the Policy will govern. Your coverage may be canceled or changed in whole or in part under the terms and provisions of the Policy. READ YOUR CERTIFICATE CAREFULLY Signed for Dearborn National Life Insurance Company Secretary President Death Benefits will be reduced if an accelerated death benefit is paid. DISCLOSURE: The Accelerated Death Benefit offered under this Policy is intended to qualify for favorable tax treatment under the Internal Revenue Code of 1986. If the Accelerated Death Benefit qualifies for such favorable tax treatment, the benefits will be excluded from the insured Employee's income and not subject to federal taxation. Tax laws relating to Accelerated Death Benefits are complex. The insured Employee is advised to consult with a qualified tax advisor about circumstances under which he or she could receive the Accelerated Death Benefit excludable from income under federal law. Receipt of the Accelerated Death Benefit payment may affect the insured Employee, his or her spouse, or his or her family's eligibility for public assistance such as medical assistance (Medicaid), Aid to Families with Dependent Children (AFDC), Supplementary Social Security Income (SSI), and drug assistance programs. The insured Employee is advised to consult with a qualified tax advisor and with social service agencies concerning how receipt of such payment will affect the insured Employee, his or her spouse, or his or her family's eligibility for public assistance. 00 124T Voluntary Group Term Life Insurance Certificate with Accidental Death & Dismemberment and Dependent Life Insurance with Dependent Accidental Death and Dismemberment Benefits Non -Participating FDL I -604-412 IMPORTANT INFORMATION ABOUT COVERAGE UNDER THE TEXAS LIFE, ACCIDENT, HEALTH AND HOSPITAL SERVICE INSURANCE GUARANTY ASSOCIATION (For insurers declared insolvent or impaired on or after September 1, 2005) Texas Iaw establishes a system, administered by the Texas Life, Accident, Health and Hospital Service Insurance Guaranty Association (the "Association"), to protect Texas policyholders if their life or health insurance company fails. Only the policyholders of insurance companies which are members of the Association are eligible for this protection which is subject to the terms, limitations, and conditions of the Association law. (The law is found in the Texas Insurance Code, Chapter 463.) It is possible that the Association may not cover your policy in full or in part due to statutory limitations. Eligibility for Protection by the Association When a member insurance company is found to be insolvent and placed under an order of liquidation by a court or designated as impaired by the Texas Commissioner of Insurance, the Association provides coverage to policyholders who are: Residents of Texas at that time (irrespective of the policyholder's residency at policy issue) Residents of other states, ONLY if the following conditions are met:>1,�Y 1. The policyholder has a policy with a company domiciled in Texas; A 2. The policyholder's state of residence has a similar guaranty association; and 3. The policyholder is not eligible for coverage by the guaranty association of the policyholder's state of residence. .. Limits of Protection by the Association Accident, Accident and Health, or Health Insurance: 19;5,b, • For each individual covered under one or more policies: up to a total of $500,000 for basic hospital, medical - surgical, and major medical insurance, $300,000 for disability or long term care insurance, and $200,000 for other types of health insurance. Life Insurance: • Net cash surrender value or net cash withdrawal value up to a total of $100,000 under one or more policies on any one life; or • Death benefits up to a total of $300,000 under one or more policies on any one life; or • Total benefits up to a total of $5,000,000 to any owner of multiple non -group life policies. Individual Annuities: 'Vett;_ • Present value of benefits up to a total of $100,000 under one or more contracts on any one life. Group Annuities: % i111'11'11 - 11'100.1-1'-j?-//, • Present value of allocated benefits up to a total of $100,000 on any one life; or • Present value of unallocated benefits up to a total of $5,000,000 for one contract holder regardless of the number of contracts.,,,,.,;,-,, Aggregate Limit: x • $300,000 on any one life with the exception of the $500,000 health insurance limit, the $5,000,000 multiple - owner life insurance limit, and the $5,000,000 unallocated group annuity limit. Insurance companies and agents are prohibited by law from using the existence of the Association for the purpose of sales, solicitation, or inducement to purchase any form of insurance. When you are selecting an insurance company, you should not rely on Association coverage. Texas Life, Accident, Health and Hospital Service Insurance Guaranty Association 6504 Bridge Point Parkway, Suite 450 Austin, Texas 78730 800-982-6362 or www,txiifega.org TX Notice Texas Department of Insurance P.O. Box 149104 Austin, Texas 78714-9104 800-252-3439 or www.tdi.state.tx.us IMPORTANT NOTICE To obtain information or make a complaint: You may contact your (title) at (telephone number). You may call Dearborn National Life Insurance Company's toll-free telephone number for infor- mation or to make a complaint at: 1-800-348-4512 You may also write to Dearborn National Life Insurance Company at: 1020 31st Street, Downers Grove, IL 60515-5591 You may contact the Texas Department of Insurance to obtain information on companies, coverages, rights or complaints at: 1-800-252-3439 You may write the Texas Department of Insurance: P. O. Box 149104 Austin, TX 78714-9104 FAX #(512) 475-1771 Web: http:/lwww.tdi.state.tx.us E-mail: ConsumerProtection@tdi.state.tx.us PREMIUM OR CLAIM DISPUTES: Should you have a dispute concerning your premium or about a claim, you should contact the company first. If the dispute is not resolved, you may contact the Texas Department of Insurance. ATTACH THIS NOTICE TO YOUR POLICY: This notice is for information only and does not become a part or condition of the attached document. 9-632-895 AVISO IMPORTANTE Para informacion o para someter una queja:-•• Peude communicarse con su (title) al (telephone number). Usted puede llamar al numero de telefono gratis de Dearborn National Life Insurance Company para informacion o para someter una queja al: 1.800-348-4512 Usted tambien escribir a Dearborn National Life Insurance Company al: 1020 31st Street, Downers Grove, IL 60515-5591 Puede comunicarse con el Departamento de Seguros de Texas para conseguir informacion acerca de companias, coberturas, derechos o quejas al: 1-800-252-3439 Puede escribir aI Departamento de Seguros de Texas: P. O. Box 149104 Austin, TX 787I4-9104 FAX #(512) 475-1771 Web: http://www.tdi.statc.tx.us E-mail: ConsumerProtection@tdi.state.tx.us DISPUTAS SOBRE PRIMAS O RECLAMOS: Si tiene una disputa concerniente a su prima o a un reclamo, debe comunicarse con la compania primero. Si no se resuelve la disputa, puede entonces comunicarse con al Departamento de Seguros de Texas. UNA ESTE AVISO A SU POLIZA: Este aviso es solo para proposito de informacion y no se convierte en parte o condicion dei documento adjunto. Schedule of Benefits Eligibility and Effective Dates Group Term Life Insurance Benefit Conversion of Life Insurance Waive Accele Portab Dependent Conve Accidental Terminatio General Pr, Definitions TABLE OF CONTENTS FDL 1-604-412 POLICYHOLDER: POLICY NUMBER: EFFECTIVE DATE: ANNUAL ENROLLMENT PERIOD: SCHEDULE OF BENEFITS SAMPLE TEXAS SAMPLE TX -0001 January 1, 2013 12/1-12131 ELIGIBILITY: All full-time Employees of the Policyholder working in the United States of America who Class 01 are .fictively at Work for the Policyholder and who have completed the Waiting Period are eligible for the insurance. A full-time Employee is one who regularly works a minimum of 30 hours per week for the Policyholder. Part-time, seasonal and temporary Employees of the Policyholder are not eligible. Eligibility Waiting Period: Current Employees: First of the month following 30 Days of continuous, full-time active work New Employees: First of the month following 30 Days of continuous, full-time active work Policyholder Contribution: Voluntary Life & AD&D 0% of premium Dependent Life & AD&D 0% of premium GROUP TERM LIFE INSURANCE Employee Voluntary Life Benefit Amount Reduction of Benefits Waiver of Premium Waiver Eligibility Insured Eligibility Maximum Waiver of Premium Duration Accelerated Death Benefit (ADB) Benefit Amount Insured Eligibility Minimum Covered Life Insurance Amount Maximum ADB Payment Minimum ADB Payment Portability Benefit Eligibility Insured Eligibility Portability Benefit Duration Additional Purchase Option Maximum Additional Purchase Amount Incremental selection from a minimum of $10,000 to a maximum of $500,000 in increments of $10,000 Voluntary: Benefit amounts may be subject to Guarantee Issue limits based on participation levels as determined by Us. Any Guarantee Issue Limits established are only available during Your group's initial enrollment and for new employees who have met the Eligibility requirements. Employees must enroll within 31 days of their eligibility date to qualify for any established Guarantee Issue. None. Benefits terminate at retirement. Totally Disabled prior to age 60 without interruption from the last date worked for at least 9 months Employee age 65 75% of Voluntary Term Life Insurance In force Employee $20,000 $250,000 $7,500 Voluntary Life Employee & Spouse Age 65 Up to $50,000 of term life insurance FDL 1-604-412 2 0 L Ee DEPENDENT TERM LIFE INSURANCE Spouse Benefit Amount Voluntary: The amount elected on Your Enrollment Form, not to exceed Includes Registered Domestic Partner $250,000 Children) Benefit Amount Voluntary: $0 - Age live birth to 14 days $100 - age 14 days to 6 months Choice of $5,000 or $10,000 as elected on Your enrollment form - age 6 months to 25 years GROUP ACCIDENTAL DEATH & DISMEMBERMENT Employee Voluntary AD&D Coverage Incremental selection from a minimum of $10,000 to a maximum of Amount $500,000 in increments of $10,000 Dependent AD&D Benefit Amount 50% of the Employee Coverage Amount Spouse Dependent Child(ren) 10% of the Employee Coverage Amount Reduction of Benefits Voluntary Accidental Death and Dismemberment benefits reduce to 65% of the original amount at age 65, further reduce to 50% of the original amount at age 70, further reduce to 25% of the original amount at age 75, and further reduce to 15% of the original amount at age 80. Benefits terminate at retirement. Seat Belt Benefit 10% of Employee Coverage Amount, to a maximum of $25,000 Air Bag Benefit 5% of Employee Coverage Amount to a maximum of $5,000 Repatriation Benefit Actual costs to a m ximum of $5,000 Education Benefit Benefit Amount 3% of Employee Coverage Amount, to a maximum of $3,000 per year Maximum Benefit Duration Benefit payable for a maximum of four (4) years Eligible Dependents �t f�Yh Age live birth to age 25 years U,,VP `1, f' Common Disaster Benefit Employee Coverage Amount to a maximum of $150,000 FDL1-604-412 3 ELIGIBILITYAND EFFECTIVE DATE PROVISIONS Who is eligible for this insurance? The eligibility for this insurance is as indicated in the Schedule of Benefits. The Eligibility Waiting Period is set forth in the Schedule of Benefits. 00001 When floes Your Contributory insurance become effective? Contributory means You pay all or a portion of the premium for this insurance coverage. You may apply for Voluntary insurance coverage during the Annual Enrollment Period as indicated in the Schedule of Benefits. Your coverage will become effective as follows, provided You are Actively at Work on that date: Your Contributory coverage for amounts up to the Guarantee Issue Benefit Limit will become effective on the latest of the following dates provided You are Actively at Work on that date: 1. If You enroll for coverage prior to the Policy effective date, the Policy effective date; 2. If You enroll for coverage within 31 days of Your eligibility date, on the first of the month that falls on or next follows the date You sign the Enrollment Form; 3. If You do not enroll for Voluntary coverage within 31 days after Your eligibility date, You must wait until the next Annual Enrollment Period to apply, unless You qualify because of a Change in Family Status. 0 a. Initial requests for coverage or requests for changes to existing coverage made during the Annual Enrollment Period will become effective on the Policy anniversary date. b. Coverage requested within 31 days of a Change in Family Status will become effective on the first of the month that falls on or next follows the date You sign the Enrollment Form. You must be Actively at Work for coverage under the Policy to become effective. Enrollment Form means the application You complete to apply for coverage under the Policy. 00004 Change in Family Status If You experience a Change in Family Status, You may enroll for Voluntary coverage, apply for additional coverage, or request changes to Your current Voluntary benefit program(s) without providing Evidence of Insurability, provided the benefit change is consistent with the Change in Family Status. You must submit the appropriate Enrollment Form within 31 days of the Change in Family Status. Change in Family Status means changes in the status of Your family, including but not limited to: 1. You get married or execute a Domestic Partner affidavit; 2. You have a Dependent Child, or You adopt or become the legal guardian of a Dependent child; 3. Your Spouse dies or You become divorced; 4. Your Dependent Child becomes emancipated or dies; X11 FDL 1-644-412 4 5. Your Spouse is no longer employed, resulting in a loss of group insurance, or; 6. You have a change in classification which results in You changing from part-time to full-time, or full- time to part-time. 00005 When is Evidence of Insurability required? Evidence oflnsurability is required if: 1. You are a late applicant, which means You enroll for insurance more than 31 days after Your eligibility date; or 2. You voluntarily canceled Your insurance and choose to reapply; or 3. Your coverage amount exceeds the Guarantee Issue Benefit Limit as set forth in the Schedule of Benefits; or 4. You apply to increase Your coverage amount during an Annual Enrollment period; or 5. You enroll for additional coverage that is greater than the next higher coverage option. Receipt of premium before We have approved Evidence of Insurability will not constitute acceptance and does not guarantee issuance of any benefit amount prior to Our approval. j z Evidence of Insurability means a statement of Your medical history which We will use to determine if You are approved for coverage. Evidence of Insurability will be provided at Our expense if You enroll within 31 days after Your eligibility date. Evidence of Insurability will be provided at Your expense if You are a late applicant, which means You enroll for insurance more than 31 days after Your eligibility date. Evidence of Insurability Form means(W-form provided or approved by Us on which You provide a statement of Your medical history. You may obtain an Evidence oflnsurability Form from the Policyholder. 00006 What is an Annual Enrollment period? Unless otherwise specified, Annual Enrollment Period means a period of time during which eligible Employees may apply for Voluntary life coverage or request changes to their life benefit plan. The Annual Enrollment Period is shown on the Schedule of Benef ts. Eligible Employees may enroll for coverage, apply for additional coverage, or request changes to their current Voluntary benefit program(s) only during the Annual Enrollment, unless they qualify because of a Change in Family Status. Employees hired after an Annual Enrollment period may enroll within 31 days after their eligibility date. If a new Employee does not elect Voluntary coverage within that time period, he must wait for the next Annual Enrollment to enroll unless he qualifies because of a Change in Family Status. Initial requests for coverage or requests for changes to existing coverage made during the Annual Enrollment period will become effective on the Policy anniversary date. 00007 FDL 1-644-412 If You are not Actively at Work, when does coverage become effective? If You are absent from Active Work on the date Your coverage would otherwise become effective; and Your absence is caused by an Injury, illness or layoff, 0 Your effective date for any initial coverage or increased coverage will be deferred until the first day You return to Active Work. However, You will be considered Actively at Work on any day that is not Your regularly scheduled work day (including but not limited to a weekend, vacation or holiday) if You were Actively at Work on the immediately preceding scheduled work day and You were: 1. not Hospital Confined; or; 2. disabled due to an Injury or Sickness. 00008 Changes to Your coverage A change in Your coverage may occur if: 1. You enroll for a different coverage option; or 2. There is a Policy change; or 3. You enter another class and become eligible for a change in benefits; or 4. You experience a qualified Change in Family Status If You are eligible for additional coverage due to a Policy change, the additional coverage will be effective on the date the Policy change is effective, as requested by the Policyholder and agreed upon by Us. Additional coverage for reasons other than a Policy change will be effective as indicated in the "When Does Your Contributory insurance become effective?" section, or the later of: 1. The date You enroll for the additional coverage; or 2. The date You become eligible for the additional coverage, if enrollment is not required; or 3. The date We approve Your coverage if Evidence of Insurability is required. In order for Your additional coverage to begin, You must be Actively at Work. Additional Contributory coverage is subject to payment of premium. Any decrease in coverage will take effect immediately. Exception: Increases or decreases to Your Voluntary benefit program elected during the Annual Enrollment Period will become effective on the next Policy anniversary date, provided You are Actively at Work on that day. 00010 Eligibility after You Terminate Employment If Your coverage ends due to termination of employment and You do not elect continued coverage under the Portability Benefit provision, You must meet all the requirements of a new Employee if You are rehired at a later date. Exception: If Your coverage ends due to termination of employment and You return to Active Work in an eligible class within 6 months, we will not: 1. apply a new Eligibility Waiting Period; or FDL 1-604-412 e 9 2. require Evidence of Insurability. If You converted all or part of Your group life insurance when employment terminated, the individual policy must be surrendered upon return to Active Work. 00011 FDL1-504-412 TERM LIFE INSURANCE BENEFIT THIS BENEFIT ONLY APPLIES TO YOU IF YOU HAVE ELECTED TERM LIFE INSURANCE AND YOU HAVE PAID OR AGREED TO PAY THE APPLICABLE PREMIUM. When is a Life Insurance Benefit payable? We will pay Your beneficiary the amount of life insurance in force as of the date of Your death provided: 1. You are insured under the Policy on the date of death, and 2. We receive proof of death. We will determine the amount of insurance payable based upon the Schedule of Benefits. 00012 TX Are Life Insurance Benefits payable for death by suicide? Life Insurance benefits including Waiver of Premium, increased benefit amounts elected during subsequent Annual Enrollment periods and Accelerated Death Benefits, will not be payable for a loss caused by suicide or attempted suicide, while sane or insane, within one (1) year from the effective date of Your Term Life Insurance or the effective date of any increased amount of life insurance. Our liability for a death claim by suicide will be limited to the return of premium paid for this life insurance. If You: 1. were covered for life insurance under a prior carrier's policy; and 2. were insured under the Policy on its effective date; 3. and there was no lapse in coverage, We will consider the time You were covered under the Policy and under the prior carrier's policy in determining if benefits are payable for death by suicide. The death benefit, if payable under this provision, will be the lesser of the benefit under the Policy or the benefit under the prior carrier's policy. 00013 Who will receive Your Life Insurance Benefits? Your beneficiary designation must be made on a form which We provide or on a form accepted by Us. If two or more beneficiaries are named, payment of proceeds will be apportioned equally unless You had specified otherwise. The Policyholder may not be named as beneficiary. Unless You provide otherwise, if a beneficiary dies before You, We will divide that beneficiary's share equally between any remaining named beneficiaries. If a beneficiary is a minor, or is not able to give a valid release for any payment of benefits made, We will not make payment until a claim is made by the person or entity which, by court order, has been granted control of the estate of such beneficiary. This provision does not prevent Us from making payment to or for the benefit of a minor beneficiary in accordance with the applicable state law. Facility of Payment If no named beneficiary survives You or if You do not name a beneficiary, We will pay the amount of insurance: 1. to Your spouse, if living; if not, 2. in equal shares to Your then living natural or legally adopted children, if any; if none, FDL l -604-412 R 3. in equal shares to Your father and mother, if living; if not, r—� 4. in equal shares to Your brothers and/or sisters, if living; if not, 5. to Your estate. If any benefits under this provision are to be paid to Your estate, We may pay an amount not greater than $250 to any person We consider equitably entitled by reason of having incurred funeral or other expenses incident to Your death. Any and all payments made by Us shall fully discharge Us in the amount of such payment. 00014 Tx May You change Your beneficiary? You may change Your beneficiary at any time by completing a form provided or accepted by Us, and sending it to the Policyholder. Your written request for change of beneficiary will not be effective until it is recorded by the Policyholder. After it has been so recorded, it will take effect on the later of the date You signed the change request form or the date You specifically requested. If You die before the change has been recorded, We will not alter any payment that We have already made. `4Any prior payment shall fully discharge Us from further liability in that amount. ,fir If You are approved for continued life coverage under the Waiver of Premium or Portability provision, You may be asked to name a beneficiary. A beneficiary designations made in connection with Waiver of Premium or Portability, if different from the designation oPYour enrollment form, shall constitute a change of beneficiary under the Policy. Such change of beneficiary only applies while You qualify for continued coverage under the Waiver of Premium or Portability provision. If continuation of life insurance under the Waiver of?Premiuin'�or Portability provision ceases, and You are I.employed by the Policyholder, You must make a'% neW-beneficiary designation. If You do not name a new beneficiary, We will pay death benefits,,in accordance with;the-Facility of Payment provision. frrl1 yi rJVS r. rr - ��y ti�. V•. 3r.�I ! 00015 CONVERSION OF'LIFE INSURANCE How much Life Insurance OWYou convert f eligibility terminates? You may convert to an individual,policyofilife insurance if Your life insurance, or a portion of it, ceases because:110f - 1. You are no longer,employed• by the Policyholder; or 2. You are no longer iiiiafclass which is eligible for life insurance. In either of these situations, You may convert all or any portion of Your life insurance which was in force on the date Your life'riisuance ceased. How much Life Insurance may You convert if the policy terminates or is amended? You may also convert to an individual policy of life insurance if Your life insurance ceases because: 1. life insurance benefits under the Policy cease; or 2. the Policy is amended making You ineligible for life insurance; however, in either of these situations, You must have been insured under the Policy, or the Policy it replaced, for at least five (5) years. The amount of insurance converted in either of these situations will be the lesser of: 1. the amount of life insurance in force, less any amount for which You become eligible under this or r any other group policy within 31 days after the date Your life insurance ceased; or FDL 1-604-412 2. $10,000. How to apply for conversion We must receive written application and the first premium for the individual life insurance policy within 31 days after life insurance under the Policy ceased. No Evidence of Insurability will be required. The individual policy will be a policy of whole life insurance. It will not contain waiver of premium, accelerated death benefit, disability benefits, accidental death and dismemberment benefits or any other ancillary benefits. The minimum issue amount of an individual conversion policy is $2,000. The premium for the individual policy will be based on: 1. Our current rates based upon Your attained age; and 2. the amount of the individual policy. If application is made for an individual policy, the coverage under the individual policy will be effective on the day following the 31 -day period during which You could apply for conversion. If You die during a period when You would have been entitled to have an individual policy issued to You and if You die before such an individual policy became effective, We will pay Your beneficiary the greatest amount of group term life insurance for which an individual policy could have been issued, provided: 1. Your death occurred during the 31 -day period within which You could have made application; and 2. We receive proof of death. 0 If life insurance benefits are paid under the Policy, payment will not be made under the converted policy, and premiums paid for the converted policy will be refunded. If You have elected Portability, conversion is not available for amounts continued under Portability unless coverage under Portability terminates. Conversion from Portability will be as specified under Portability. Notice. If the Policyholder fails to notify You at least 15 days prior to the date insurance under the Policy would cease, You shall have an additional period within which to elect conversion coverage; but nothing herein shall be construed to continue any insurance beyond the period provided for in the Policy. The additional election period shall expire 15 days immediately after the Policyholder gives You notice, but in no event shall it extend beyond 60 days immediately after the expiration of the 31 -day period explained above. 00016 TX WAIVER OF PREMIUM What is the Waiver of Premium benefit? We will continue Your Voluntary life insurance benefit under the Policy without further payment of life insurance premium if You become Totally Disabled, provided: 1. You are insured under the Policy and were Actively at Work on or after the effective date of the Policy; and 2. You are under the age of 60; and FDL 1-604-412 10 3. You provide Us with satisfactory written proof within 12 months after the date You became Totally Disabled; and 4. Your Total Disability has continued without interruption for at least 9 months; and 5. You are still Totally Disabled when You submit the proof of disability; and 6. all required premium has been paid. Total Disability or Totally Disabled means You are diagnosed by a Doctor to be completely unable because of Sickness or Injury to engage in any occupation for wage or profit or any occupation for which You become qualified by education, training or experience. We will waive premium beginning the month after We receive satisfactory proof that You have been Totally Disabled for at least 9 months. Premium will continue to be waived provided You: 1. remain Totally Disabled; and 4 f lT4 2. provide satisfactory written proof of continuing Total Disability upon regiiest. We wiltmot request proof of continuing Total Disability more frequently than once every threeiiionths during the first two years of Total Disability, and not more frequently than once a year after�� a Insured has been Totally Disabled for two years. r '` You are responsible for obtaining initial and continuing proof oo'ff TotallDisability.�111' You will be covered for the amount of life insurance'`in,force as of the date Total Disability commenced. The amount of life insurance continued in force will be subject to any reduction in benefits as shown on the Schedule of Benefits or which are the result of an amendment to the Policy, but in no event will the insurance amount increase while Your life insurance is continued under Waiver of Premium. This life insurance coverage will continue without the payment of premium until You are no longer Totally Disabled, or attain the Maximum Waiver of PreniiumS�D`uration as set forth in the Schedule of Benefits or retire, whichever occurs first. We may have You examined at reasonable intervals during the period of claimed Total Disability, but not more frequently than once,eygry three months during the first two years of Total Disability, and not more frequently than once a yearafiter the Insured has been Totally Disabled for two years. Continuation of life insurance under the Waiver of Premium provision shall end immediately and without notice if You refuse to be examined as and when required. If You are approved for continued coverage under the Waiver of Premium provision, You will be asked to name a beneficiary`:�'Ib4t�benefic%ry designation: 1. will only apply while Your coverage continues under this Waiver of Premium provision; and 2. if different frorri�Ci'designation on Your enrollment form, shall constitute a change of beneficiary under the Policy. We will pay the amount of life insurance in force to Your beneficiary if You die before furnishing satisfactory proof of Total Disability, if - 1. f 1. You die within one year from the date You became Totally Disabled; and 2. We receive proof that You were continuously Totally Disabled until the date of death; and 3. We receive proof of death. If continuation of life insurance under the Waiver of Premium provision ceases while the Policy is still in force, and You are employed by the Policyholder, Your life insurance will continue provided premium FDL 1-604-412 11 payments begin on the next premium due date. If You return to work with the Policyholder, You must make a new beneficiary designation. If You do not name a new beneficiary, We will pay death benefits in accordance with the Facility of Payment provision. C, If continuation of life insurance under the Waiver of Premium provision ceases, and You are no longer employed by the Policyholder, You may apply for an individual life insurance policy in accordance with the Conversion of Life Insurance provision of this Certificate. How does termination of the Policy affect Your insurance under the Waiver of Premium Benefit? Termination of the Policy will not affect any insurance that has been continued under this Provision prior to the termination date. What if You are Totally Disabled and the Policy ends before You satisfy the Elimination Period? Your coverage under the Policy will end if the Policy ends before You satisfy the Elimination Period. However, when the Policy ends You may be entitled to convert Your coverage to an individual plan of life insurance as described in the Conversion of Life Insurance provision. You may still submit a claim for Waiver of Premium Benefits after the Policy ends. However, You must be Totally Disabled, pay the Conversion premium for the full length of the Elimination Period and qualify for the Waiver of Premium Benefits. At no time can You be covered under both the individual conversion policy and this Policy. Upon receipt of timely notice and due proof of Your Total Disability We will evaluate Your claim. If We determine that You qualify and You pay all applicable premiums, We will approve Your Waiver of Premium claim under the Policy and agree to rescind any individual policy of life insurance issued to You under the Conversion privilege. We will refund any premiums paid for such coverage. Insurance under the Policy will not go into effect until We approve your claim in writing. 0 00017TXa FDL 1-604-412 12 ACCELERATED DEATH BENEFIT What is the Accelerated Death Benefit? The Accelerated Death Benefit is a percentage of Your group Voluntary tern life insurance which is payable to You prior to Your death if We receive acceptable proof that You have a Terminal Condition. The Accelerated Death Benefit is limited to the maximum and minimum amounts shown on the Schedule of Benefits, and is payable only once to any one Insured. The Accelerated Death Benefit is calculated on the group Voluntary term life insurance benefit amount in force under the Policy on the date You are diagnosed with a Terminal Condition. if Your group term life insurance will reduce, due to age, within 12 months after the date We receive -proof, the Accelerated Death Benefit will be calculated on the reduced group Voluntary term life insurance benefit. Who is Eligible for an Accelerated Death Benefit? 17�Y% Ili This benefit only applies to Insureds with at least the Minimum Covered Life Insurance Benefit amounts set forth in the Schedule of Benefits. You must have been Actively at Work on or after the�effective date of the Policy to be eligible for an Accelerated Death Benefit. This benefit does not apply to Accidental Death and Dismemberment benefits. Terminal Condition means You have been examined and d Sagnosed l y�,Your Doctor as having a non - correctable health condition that, with reasonable medical certainty, will result in Your death within 12 months from the date of the Doctor's Statement: Doctor's Statement means a written medical'." "inion of a'136ctor, currently licensed to practice in the United States which: 1. is made at Your expense; and;yyf,sk 2. indicates that You have a Terminal'Condition;,and r>J" 3. includes all medical test results, laboratory'%reports, and any other information on which the medical opinion is based; and +rf, 4. indicates Your expected remaining life span;,and 5. is acceptable to Us. �� "`7i 1f �rt�J;i'c The Accelerated Death Benefit -Payment A - We will pay the benefit durinik our lifetime if You are diagnosed with a Terminal Condition if You or Your legal representative submits a claim for an Accelerated Death Benefit and provides satisfactory proof. The benefit will be,paid in one sum to You. There is no cost for an Accelerated Death Benefit. At the time of the payment of the Accelerated Death Benefit, We will send a statement to the certificate holder specifying the.amount of benefits paid, the effect of the Accelerated Death Benefit payment on the death benefit face amount, and the amount of benefits remaining available for acceleration. Are there any exceptions to the payment of the Accelerated Death Benefit? The Accelerated Death Benefit will not be payable: 1. for any amount of group term life insurance which is less than the Minimum ADB Payment as set forth in the Schedule of Benefits; or 2. if Your Terminal Condition is the result of: a. attempted suicide, while sane or insane; or b. intentionally self-inflicted injury; or 3. if Your group term life insurance benefit has been assigned; or FDLI-604-412 13 4. if Your group term life insurance benefit is payable to an irrevocable beneficiary, including notification to Us that such benefit or a portion of such benefit is to be paid to a former spouse as part of a divorce or separation agreement; or 5. to retirees. Notice and Proof of Claim You must elect the Accelerated Death Benefit in writing on a form that is acceptable to Us. You must furnish proof that You have a Terminal Condition, including a Doctor's Statement within 91 days of the notice of claim. If proof is not given within 91 days, the claim will not be reduced or denied if proof is given as soon as reasonably possible. Effect on Insurance The Accelerated Death Benefit is in lieu of the group term life insurance benefit that would have been paid upon Your death. When the Accelerated Death Benefit is paid: 1. the term life insurance benefit otherwise payable upon Your death will be reduced by the amount of the Accelerated Death Benefit. Any portion of the death benefit remaining after reduction of the death benefit due to payment of an Accelerated Death Benefit shall be paid upon the death of the Insured. 2. the amount of group term life insurance which could otherwise have been converted to an individual contract will be reduced by the amount of the Accelerated Death Benefit; and 3. the premium due for group term life insurance will be calculated on the amount of such insurance remaining in force after deducting the Accelerated Death Benefit. The payment of an Accelerated Death Benefit and the balance of the death benefit under the Policy shall constitute full settlement of the face amount of the Policy. 09020 TX 0 FDL 1-604-412 14 PORTABILITY BENEFIT What is the Portability Benefit? If Your Voluntary Group Life Insurance, or any portion of it, terminates, You may elect to continue Your Life Insurance in accordance with the terms of the Policy by paying premiums directly to Us. If You elect Portability, You may also elect to continue Dependent Life Insurance under the conditions set forth below, but You may not apply for Dependent Life Insurance at the time you apply for Portability. The coverages eligible for Portability and the Portability Benefit Duration are set forth in the Schedule of Benefits. The premiums for the coverage continued under the Portability Benefit willYnQt be the same as the premium You are charged for Your group Life insurance under the Policy.Artability premium will be based on: .1,yfiR 1. Our current rates for the applicant's age and class of risk at the time he elects P,ortability; and 2. the amount of insurance continued under Portability. ". The maximum amount of Life Insurance which may be continued under Portabilityf i's:the amount of Life Insurance in force at the time the Portability Benefit is elected." f A beneficiary designation on the Application for Portability, if different from the designation on Your enrollment form, shall constitute a change of beneficiary funder the��Policy, and that beneficiary designation will only apply while Your coverage continues. under this Portability Benefit provision. The Waiver of Premium is not available for any. Insured wlidse Total Disability begins after coverage under Portability becomes effective. The Accelerated;Death Benefit is not available for any Insured who is diagnosed with a Terminal Condition. after coverage under Portability becomes effective. What is the Additional Purchase Option?Qr` Each Employee who elects portable coverage may Se entitled to purchase an additional amount of term life insurance with Evidenq f.9f Insurability, provided he has not converted under the group Policy the amount of group life inshe elects under the Additional Purchase Option. The maximum amount available under this Additional Purchase Option is shown on the Schedule of Benefits. We will bill this additional coverage at the sy e rate and in the same premium mode as coverage continued under Portability,:�`The Additional Purchase Option does not apply to Spouse or Dependent Child coverage. What are Eligibility Requirements for Employee Portability? To be eligible for Portability, You must meet the following conditions: r 1. You must have lieeif insured under the Policy for at least one year prior to electing Portability; and 2. Your Life Insurance, or a portion of it, must have terminated for reasons other than Sickness, Injury, retirement or termination of the master Policy; and 3. You must be less than 65 years of age; and 4. You must be able to perform the Material and Substantial duties of any Gainful Occupation for which You are qualified by education, training or experience; and 5. You must not have exercised the right to convert under the Conversion of Life Insurance provision the amount of Life Insurance You elect under the Portability Benefit. If You elect the Portability benefit, any amounts of Life Insurance which are not ported may be converted in accordance with the terms of } the Conversion of Life Insurance provision. FDL I -604-412 15 You must submit an application for Portability and the first premium within 31 days after the date Your Life Insurance terminated. 0 We reserve the right to rescind any coverage amounts continued under Portability if it can be shown that You misrepresented any of the information provided to support eligibility for Portability. Can Dependent Life Insurance be Ported if Your Eligibility Terminates or if Your Spouse's Coverage Terminates? Yes, You or Your insured Spouse may elect Portability of Dependents' Life Insurance if Dependents' insurance coverage ceases as follows: 1. You may apply for Portability of Dependent Life Insurance if You meet the eligibility requirements to port Your Life Insurance as shown above and You are covered for Dependent Life insurance on the date Your coverage ceases. 2. Your insured Spouse may apply for Portability of his Group Life Insurance, and/or life insurance on covered Dependent Child(ren) provided: a. Your Spouse's life insurance terminates because You die or Your eligibility for Dependent Life Insurance ceased for reasons other than retirement or termination of the master Policy and Your Spouse is less than 65 years of age. b. Your Spouse had elected Dependent Life on eligible Dependent Child(ren) and such coverage is still in force when Your eligibility for Dependents Life Insurance ceased for reasons other than retirement or termination of the master Policy. c. Your Spouse must have been insured for such coverage(s) under the Policy for at least one year prior to electing Portability. d. Portability is not available if Your Spouse's life insurance terminates because he no longer meets the Policy definition of an Eligible Dependent Spouse. 3. You or Your Spouse must not have exercised the right to convert under the Dependent Conversion Privilege provision of the Policy the amount of coverage You or Your Spouse elect under the Portability Benefit. If You elect portability of Dependent Life Insurance, any amounts of Dependent Life Insurance which are not ported may be converted in accordance with the terms of the Policy. If these criteria are met, You or Your Spouse, must submit an Application for Portability and the first premium within 31 days after the date such eligible Dependent Life Insurance terminated. We reserve the right to rescind any coverage amounts continued under Portability if it can be shown that You or Your Spouse misrepresented any of the information provided to support eligibility for Portability of Dependent Life Insurance. When will Portable Coverage Terminate? Insurance continued under the Portability Benefit provision of the Policy will terminate at the earliest of the following: 1. the date You return to work with the Policyholder while the Policy is still in force; or 2. the date You or Your Spouse fail to pay the required premiums when due; or 3. the end of the Portability Benefit Duration set forth in the Schedule of Benefits; or 4. the premium due date following the date a Dependent ceases to meet the definition of an Eligible Dependent. If continuation of life insurance under the Portability Benefit provision ceases while the Policy is still in force, and You are employed by the Policyholder, Your life insurance will continue provided premium payments begin on the next premium due date. If You return to work with the Policyholder, You must FDL 1-604-412 16 make a new beneficiary designation. If You do not name a new beneficiary, we will pay death benefits according to the Facility of Payment provision. Is Conversion available after coverage under Portability ends? If coverage under Portability terminates according to (3) or (4) above, You may convert to an individual policy of whole life insurance in accordance with the terms of the Conversion provisions of the Policy. No Evidence of Insurability will be required. The amount of the conversion policy may not exceed the amount of life insurance which terminated as set forth above. 00022 FDL 1-604-412 17 DEPENDENT LIFE INSURANCE THIS BENEFIT ONLYAPPLIES IF YOU HAVE ELECTED DEPENDENT TERM LIFE0 INSURANCE AND YOU HA VE PAID OR AGREED TO PA Y THE APPLICABLE PREMIUM. What is the Dependent Life Insurance Benefit? We will pay You the amount of insurance set forth in the Schedule of Benefits on the life of Your Dependent(s) while Your insurance is in force. Payment will be in one lump sum. If You are not living at the time Dependent life insurance benefits become payable, We will pay the benefit: L to Your Spouse, if living; if not, 2. in equal shares to Your then living natural or legally adopted children, if any; if none, 3. in equal shares to Your father and mother, if living; if not, 4. in equal shares to Your brothers and sisters, if living; otherwise 5. to Your estate. Are Life Insurance Benefus payable for death by suicide? Life Insurance benefits will not be payable for a loss caused by suicide or attempted suicide, while sane or insane, within one (1) year from the effective date of Your covered Dependent's Term Life Insurance or the effective date of any increased amount of life insurance. Our liability for a death claim by suicide will be limited to the return of premium paid for this life insurance. If Your covered Dependent(s): 1. were covered for life insurance under a prior carrier's policy; and 0 2. were insured under the Policy on its effective date; 3. and there was no lapse in coverage, We will consider the time Your covered Dependent(s) were covered under the Policy and under the prior carrier's policy in determining if benefits are payable for death by suicide. The death benefit, if payable under this provision, will be the lesser of the benefit under the Policy or the benefit under the prior carrier's policy. 00023 Who is eligible for Dependent Life Insurance? If You or Your Spouse are insured for life insurance under the Policy and belong to a class listed in the Schedule of Benefits as eligible for Dependent Life Insurance benefits, You are eligible to enroll for this benefit. If You or Your Spouse are enrolled for Dependent Life Insurance and subsequently acquire a new Eligible Dependent, that Dependent will automatically be covered. Note: No eligible person may be covered more than once under the Policy. If a person is covered as an Employee, he cannot be covered as a Spouse or Dependent Child of another Employee. If both parents are covered as insured Employees under the Policy, only one may enroll for life insurance coverage on Eligible Dependent Child(ren). When does Dependent Life Insurance become effective? Provided You: 1. have completed any required Employee Eligibility Waiting Period; and FDL l -604-412 18 2. apply for Dependent Life Insurance no later than 31 days after becoming eligible for this benefit; and 3. have paid or are obligated to pay any applicable premium, Life insurance for Your Eligible Dependents) will become effective on the later of - I . the date Your group insurance coverage becomes effective; 2. the effective date of the Dependent Life Insurance benefit; or 3. the first of the month that falls on or next follows date You enroll Your Eligible Dependent(s); 4. the first of the month that falls on or next follows the date You acquire Your Eligible Dependent(s); 5. if Evidence of Insurability is required, the date We determine that evidence is satisfactory and We provide notice of approval. If You enroll for Dependent Life Insurance more than 31 days after You are eligible to do so, You must furnish Evidence of Insurability satisfactory to Us for each Dependent, and coverage will become effective as set forth above. If an Eligible Dependent is required to submit satisfactory Evidence of Insurability for any reason, insurance in the amount for which We require such evidence will become effective on the date We determine that the evidence is satisfactory and We provide notice of approval. If an Eligible Dependent is Hospital Confined on the date coverage would otherwise become effective, insurance will not become effective until the date the Eligible Dependent is No Longer Hospital Confined or Your Spouse is able to perform at least two of the Activities of Daily Living. When do changes in the Dependent Life Insurance benefit become effective? If no Evidence of Insurability is required, increases in the amount of Dependent Life Insurance will become effective immediately on the date of the change, provided the Dependent is not Hospital Confined on that day. If the Dependent is Hospital Confined, the increase will become effective on the date the Dependent is No Longer Hospital Confined. For amounts on which Evidence of Insurability is required, increases in the amount of Dependent Life Insurance will be effective on the date We determine that evidence is satisfactory and We provide notice of approval date. 1Y ` f ,� I �x. Any decrease in the amount of.;Dependent Life Insurance will become effective immediately on the date of the change 00024 a Definitions which apply to the Dependent Life Insurance provision: Eligible Dependent means. I. the Spouse or Domestic Partner of each individual eligible to be insured under the Policy; 2. a natural or adopted child of each individual eligible to be insured under the policy if the child is: a. younger than 25 years of age; or b. physically or mentally disabled and under the parents' supervision; or a natural or adopted grandchild of each individual eligible to be insured under the policy if the child is: a. younger than 25 years of age; and FDLI-604-412 19 b. a dependent of the insured for federal income tax purposes at the time the application for coverage of the child is made. Dependent Child - See Dependent or Eligible Dependent No Longer Hospital Confined means the Eligible Dependent has been discharged from a hospital, nursing home or other medical facility which provides skilled medical care. This provision does not apply to Your Dependent Child born while You are insured under the Policy or covered under the prior policy. Spouse means lawful spouse in the jurisdiction in which You reside. Spouse will include Your Registered Domestic Partner. 00026 TXa CONVERSION OF DEPENDENT LIFE INSURANCE Can Dependent Life Insurance be converted if Eligibility Terminates? Yes, a Dependent may convert to an individual policy of life insurance if his life insurance, or any portion of it, ceases because: 1. You are no longer employed by the Policyholder; or 2. You are no longer in a class which is eligible for Dependent Life Insurance; or 3. You die; or 4. a Dependent Child reaches the limiting age under the Policy; or 5. a Dependent Spouse is no longer eligible as a result of divorce or dissolution of marriage; or 6. a Dependent is no longer eligible as defined in this provision. 0 In any of these situations, the Dependent may convert up to the amount which was in force on the date insurance was terminated provided You do not elect continued Dependent Life Insurance coverage under the Portability Benefit provision. How much can Your covered Dependent convert if the Policy is terminated or amended? A Dependent may also convert to an individual policy of life insurance if his life insurance ceases because: 1. Dependent Life Insurance benefits under the Policy cease; or 2. the Policy is amended making the insured Dependent ineligible for Dependent Life Insurance; however, he must have been insured under the Policy, or the policy it replaced, for at least five (5) years. The amount of insurance converted in either of these situations will be the lesser of: the amount of life insurance in force, less any amount for which the Dependent becomes eligible under this or any other group policy within 31 days after the date his life insurance ceased; or 2. $ 10,000. How to apply for conversion We must receive written application and the first premium for the individual life insurance policy within. 31 days after life insurance under the Policy ceases. No Evidence of Insurability will be required. FDL 1-604-412 20 The individual policy will be a policy of whole life insurance. It will not contain Accidental Death and Dismemberment benefits or any other supplementary benefits. The minimum issue amount of an individual conversion policy is $2,000. The premium for the individual policy will be based on: 1. Our current rates based upon the applicant's attained age; and 2. the amount of the individual policy. If the Dependent applies for an individual policy, the coverage under the individual policy will be effective on the day following the 31 -day period during which he could apply for conversion. If the Dependent dies during a period when he would have been entitled to have an individual policy issued to him and if he dies before such an individual policy became effective, We will pay the greatest amount of group term life insurance for which an individual policy could have been issued, provided: 1. the death occurred during the 31 -day period during which he could have made application; and 2. We receive proof of death. If life insurance benefits are paid under the Policy, payment will not be made under the converted policy, and We will refund any premiums paid for the converted policy. 00027 Tx FDL 1-504-412 21 ACCIDENTAL DEATH & DISMEMBERMENT BENEFIT (AD&D) THIS BENEFIT ONLY APPLIES TO YOU IF YOU HAVE ELECTED ADHD INSURANCE AND YOU HAVE PAID OR AGREED TO PAY THE APPLICABLE PREMIUM. COVERAGE PLANS AVAILABLE Individual Plan: If You enroll in the Individual Plan, You may select a Coverage Amount within the range set forth in the Schedule of Benefits, and You will be covered for the amount selected while coverage remains in force, subject to any adjustments resulting from an increase in age. Family Plan: If You enroll in the Family Plan, You may select a Coverage Amount within the range shown on the Schedule of Benefits, and Your Eligible Dependents will be covered for a percentage of Your Coverage Amount as shown on the Schedule of Benefits. Note: No eligible person may be covered more than once under the Policy. If a person is covered as an Employee, he cannot be covered as a Spouse or Dependent Child of another Employee. If both parents are covered as insured Employees under the Policy, only one may enroll for life insurance coverage on Dependent Child(ren). 00029 What is the AD&D Benefit? If, while insured under the Policy, You or Your covered Dependent suffer an Injury in an Accident, We will pay for those Losses set forth in the "Table of Losses" below. The amount paid will be the percentage stated in the Table of Losses but not more than the Coverage Amount set forth in the Schedule of Benefits. The Loss must: 1. occur within 365 days of the Accident; and 2. be the direct and sole result of the Accident; and 3. be independent of all other causes. 0 TABLE OF LOSSES % OF COVERAGE AMOUNT PAYABLE Loss of Life 100% Loss of Both Hands 100% Loss of Both Feet 100% Loss of Entire Sight of Both Eyes 1000/0 Loss of One Hand and One Foot 100% Loss of Speech and Hearing 100% Quadriplegia 100% Paraplegia 75% Loss of One Hand 50% Loss of One Foot 50% Loss of Entire Sight of One Eye 50% Loss of Speech 50% Loss of Hearing (both ears) 50% Hemiplegia 50% Loss of Thumb and Index Finger (on same hand) 25% Uniplegia 25% Definitions which apply to the AD&D Provision: Accident or Accidental means a sudden, unexpected event that was not reasonably foreseeable. FDL 1-604-412 22 Hemiplegia means total Paralysis of one arm and one leg on the same side of the body. Loss, with respect to hand or foot, means actual and permanent severance from the body at or above the wrist or ankle joint, as applicable. With respect to eyes, speech and hearing, loss means entire and irrecoverable loss of sight, speech or hearing. With respect to thumb and index finger, loss means complete severance of entire digit at or above joints. Paralysis means loss of use without severance of a limb as a result of an Injury to the Spinal Cord, which has continued for 12 months. Paralysis must be determined by a Doctor to be permanent, total and irreversible. Paraplegia means total Paralysis of both legs. Quadriplegia means total Paralysis of both arms and both legs. Unlplegla means total Paralysis of one limb. The total amount of AD&D benefits payable for all Losses for any Insured resulting from any one Accident will not be greater than the Coverage Amount set forth in the Schedule of Benefits. Except as provided in a particular AD&D benefit provision, We will pay benefits for loss of life to the Y� n A— same beneficiary(ies) named to receive life insurance benefits. Benefits�forlall other Losses will be paid to You. rr�(� 00034 sf��1 ��. riS�✓ . SEATBELT BENEFIT What is the Seat Belt Benefit? We will pay an additional amount, as?set,forth.in the Schedule of Benefits, if a benefit is payable under the AD&D Benefit for Your loss of life as''the result`'of an Accident which occurs while You were driving or riding in an Automobile,; if: 1. the Automobile is equipped with Seat Belts. 2. the Seat Belt was in actual use .and properly fastened at the time of the Accident. 3. the position of the Seat Belt is certified in the official report of the Accident or by the investigating officer. A copy of the police accident report must be submitted with the claim. 4. You wete driving or riding in an Automobile driven by a licensed driver who was neither: a. intoxicated or driving while impaired. Intoxication and impairment shall be determined, with or without conviction, by the law of the jurisdiction in which the Accident occurs or .08% blood alcohol content if the jurisdiction in which the Accident occurred does not define intoxication; nor b. under the influence of any narcotic, hallucinogen, barbiturate, amphetamine, gas or fumes, poison or any other controlled substance as defined in Title 11 of the Comprehensive Drug Abuse prevention and Control Act of 1970, as now or hereafter amended, unless as prescribed by a licensed physician and used in the manner prescribed. Conviction is not necessary for a determination of being under the influence. If the required certification is not available and if it is unclear whether You were properly wearing a Seat Belt, then We will pay an additional benefit of $1,000. Automobile means a validly registered private passenger car (or policyholder -owned car), station wagon, jeep -type vehicle, SUV, pick-up truck or van -type car that is not licensed commercially or being used for commercial purposes. FDL 1-404-412 23 Seat Belt means those belts that form an occupant restraint system. 00031 *hat is the Air Bag Benefit? AIR BAG BENEFIT We will pay an additional amount as set forth in the Schedule of Benefits if a benefit is payable under the AD&D Benefit for Your loss of life as the result of an Accident which occurs while You are driving or riding in an Automobile provided that: 1. You were positioned in a seat that was equipped with an Air Bag; 2. You were property strapped in the Seat Belt when the Air Bag inflated; and 3. the police report establishes that the Air Bag inflated properly upon impact. If it is unclear whether You were properly wearing Seat Belt(s) or if it is unclear whether the Air Bag inflated properly, then the Air Bag Benefit will be $1,000. Air Bag means an inflatable supplemental passive restraint system installed by the manufacturer of the Automobile, or proper replacement parts as required by the automobile manufacturer's specifications, that inflates upon collision to protect an individual from injury and death. A Seat Belt is not considered an Air Bag. 00032 REPATRIATIONBENEFIT What is the Repatriation Benefit? We will pay an additional amount, as set forth in the Schedule of Benefits, for the preparation and transportation of Your body to a mortuary if: 1, the Coverage Amount under the AD&D Benefit is payable for Your loss of life; and 2. Your death occurs at least 75 miles away from Your principal residence. 00033 EDUCATIONBENEFIT What is the Education Benefit? We will pay an additional amount, as set forth in the Schedule of Benefits to Your Dependent Student if an AD&D benefit is payable for Your loss of life. We will only pay one Education Benefit to any one Dependent Student during any one school year. If the Dependent Student is a minor, We will pay the benefit to the legal representative of the minor. Definitions which apply to the Education Benefit: Student means an Eligible Dependent child who, on the date of Your death, is: 1- A full-time post -high school student in a School of Higher Education; or 2. A student in the 120' grade but who becomes a full-time post -high school student in a School of Higher Education within 365 days after Your death. School of Higher Education means an institution which: 1. is legally authorized by the State in which it is located; and FDL 1-604-412 24 2. provides either a program for: a. Bachelor's degrees or not less than a two year program with full credit towards a Bachelor's f i degree; or b. Gainful employment as long as such program is at least one year of training; and 3. is accredited by an Agency or association recognized by the U.S. Department of Education under the Higher Education Assistance Act as may be amended from time to time. When Benefit Ends: A Dependent Student will no longer be eligible to receive the Dependent Education Benefit upon the earlier of the following: 1. Our payment of the fourth installment of the Dependent Education Benefit on behalf of or to the Dependent Student; or 2. At the end of the period during which due Proof must be submitted if no. due Proof is submitted. Special Child Education Benefit: If Your Eligible Dependent child does not qualify as a Student, but is enrolled in an elementary or high school, We will pay a Child Education Benefit in the amount of $1,000. This benefit is payable once upon proof that You died as a result of an Accident for, which the Accidental All Death & Dismemberment benefit is payable and that, within 12 months after Yourpdeath Your Eligible Dependent Child is a full-time student in an elementary or high school. ftr 00034 3`r COMMON DISASTER BENEFIT' What is the Common Disaster Benefit? We will pay an additional amount, as set forth, 1. You and Your covered spouse die as a res Accidents that occur within the,same 24 hour 2. loss of Life occurs for both You and..Your'Spo 3. a benefit is payable under the AD&D Benefit Y � Schedule '.of Benefits, if; ,??Injury received in the same Accident or separate within 90 days of the Accident(s); and death and the death of Your Spouse, then We will increase the am6iEi under the AD&D Benefit for Your Spouse (the "Spousal AD&D Benefit") to equal the Coverage Amount uinder'Tour AD&D Benefit, if greater than the Spousal AD&D Benefit. The Spousal AD&D Benefit under this Common Disaster Benefit may not exceed the Maximum Common Disaster Benefit shown on the;Schedule of Benefits. 00037 A ,S:1riYf, EXPOSURE AND DISAPPEARANCE If, as a result of an Accident while insured for this benefit, if You or Your Insured Dependents are unavoidably exposed jo' the elements and suffer a Loss as a result of that exposure, that Loss will be covered. If Your or Your Insured Dependents body has not been found within one (1) year of an Accidental disappearance, forced landing, sinking or wrecking of a conveyance in which You or Your insured Dependents were occupants, You or Your Insured Dependents will be deemed to have suffered loss of life. 00043 FDL 1-604-412 25 LIMITATIONS Are there any Limitations for losses due to an Accident? We will not pay any benefit for any Loss that, directly or indirectly, results in any way from or is contributed to by: 1. any disease or infirmity of mind or body, and any medical or surgical treatment thereof; or; 2. any infection, except a pus -forming infection of an Accidental cut or wound; or 3. suicide or attempted suicide, while sane or insane; or 4. any intentionally self-inflicted Injury; or 5. war, declared or undeclared, whether or not You or Your Insured Dependent is a member of any armed forces; or 6. travel or flight in an aircraft while a member of the crew, or while engaged in the operation of the aircraft, or giving or receiving training or instruction in such aircraft; or 7. commission of, participation in, or an attempt to commit an assault or felony; or 8. under the influence of any narcotic, hallucinogen, barbiturate, amphetamine, gas or fumes, poison or any other controlled substance as defined in Title 1I of the Comprehensive Drug Abuse Prevention and Control Act of 1970, as now or hereafter amended, unless as prescribed by a licensed physician and used in the manner prescribed. Conviction is not necessary for a determination of being under the influence; or 9. intoxication as defined by the laws of the jurisdiction in which the Accident occurred or .08% blood alcohol content if the jurisdiction in which the Accident occurred does not define intoxication. Conviction is not necessary for a determination of being intoxicated; or 10. active participation in a Riot. Riot means all forms of public violence, disorder, or disturbance of the public peace, by three or more persons assembled together, whether with or without a common intent and whether or not damage to person or property or unlawful act is the intent or the consequence of such disorder. 00050 UNIFORM PROVISIONS (Applicable to Dismemberment Coverage Only) Initial Notice of Claim We must receive written notice of Loss within 30 days of the date of Loss, or as soon as reasonably possible. The Policyholder can assist with the appropriate telephone number and address of Our Claim Department. Notice may be sent to Our Claim Department at the address shown on the claim form or given to Our Agent. Claim Forms Within 15 days of Our being notified in writing of a claim, We will supply the claimant with the necessary claim forms. The claim form is to be completed and signed by the claimant, the Policyholder and the claimant's Doctor. If the appropriate claim forms are not received within 15 days, then the claimant will be considered to have met the requirements for written proof of loss if We receive written proof, which describes the occurrence, extent and nature of the Loss. Time Limit for Filing Your Claim We must receive written proof of loss within 91 days after the date a Loss is incurred. If it is not possible to give Us written proof within 91 days, the claim is not affected if the proof is given as soon as possible. FDL 1-604-412 26 However, unless the claimant is legally incapacitated, written proof of loss must be given no later than one year after the time proof is otherwise due. No benefits are payable for claims submitted more than 1 year after the time proof is due. However, benefits may be paid for late claims if it can be shown that: 1. It was not reasonably possible to give written proof during the one year period, and 2. Proof of loss satisfactory to Us was given as soon as was reasonably possible. For the Education Benefit, proof of loss must: 1. Include proof of Dependent Student status; and 2. Be submitted no later than a. Two months after completion of course work for that particular school year if the Dependent Student is enrolled in a School of Higher Education at the time of Your death. School year shall be deemed to begin on September 1 st and end on August 31 st; or b. Within six (6) months after enrollment in a School of Higher Education if the Dependent Student is in the 12th grade at the time of Your death. After the first year in a School of Higher Education, due proof must be submitted in accordance with the time limits defined in Item (a) above. Physical Examination/Autopsy Upon receipt of a claim, We may examine an Insured, at Our expense, at any reasonable time. We reserve the right to perform an autopsy, at Our expense, if it is not prohibited by any applicable local law(s). 00051 Tx FDL1-644-412 27 TERMINATION PROVISIONS When does Your coverage under t ?" g he Policy end. Your coverage will terminate on the earliest of the following dates. Termination will not affect Your claim for a covered Loss which occurred while the coverage was in force. 1. the date on which the Policy is terminated; 2. the date You stop making any required contribution toward payment of premiums; 3. the effective date of an amendment to the Policy which terminates insurance for the class to which You belong; or 4. the date You: a. are no longer a member of a class eligible for this insurance, b. request termination of coverage under the Policy, c. are retired or pensioned, or d. are no longer Actively at Work as a result of a disability, layoff, leave of absence, sabbatical or military leave. However, You may continue to be eligible for group insurance coverage, as follows: Disability Until the end of the twelfth month following the month in which the disability began, provided all premiums are paid when due, the Policy is in force, and Your coverage is not replaced with group life insurance provided by a new carrier. Layoff Until the end of the month following the month during which the layoff began, provided all premiums are paid when due, the Policy is in force, and Your coverage is not replaced with group life insurance provided by a new carrier. Leave of Until the end of the month following the month during which the leave of absence Absence began, or, the period of time in accordance with the FMLA provision below, provided all premiums are paid when due, the Policy is in force, and Your coverage is not replaced with group life insurance provided by a new carrier. Sabbatical Until the end of the month following the sixth month in which the sabbatical began, provided all premiums are paid when due, the Policy is in force, and Your coverage is not replaced with group life insurance proved by a new carrier. Military Until the end of the twelfth month following the month in which the military leave Leave began, provided all premiums are paid when due, the Policy is in force, and Your coverage is not replaced with group life insurance provided by a new carrier. For the purposes of this Termination Provision only, Disability means You are unable to perform all of the Material and Substantial Duties of Your Regular Occupation. 00052TXa FDL 1-604-412 29 Will coverage be continued if You are efigible for leave under FMLA? In the event You are eligible for and the Policyholder approves a leave under the Family and Medical Leave Act of 1993 (FMLA), or any applicable state family and medical leave law (State FML), provided the required premium continues to be paid, the Policy is in force and Your coverage is not replaced with group life insurance provided by a new carrier, Your insurance will continue for a period of up to the later of: 1. the leave period permitted by the federal Family and Medical Leave Act of 1993 and any amendments; or 2. the leave period permitted by applicable state law. You are eligible for leave under this Act in orde 1. After the birth of a child; or 2. After the legal adoption of a child; or 3. After the placement of a foster child in Yot, 4. To a spouse, child or parent due to their sei 5. For Your own serious health condition. While granted a Family or Medical Leave of A 1. The Policyholder must remit the required premium according to the terms of the Policy; and 2. coverage will terminate if You do not return to work as scheduled according to the terms of Your agreement with the Policyholder. tif 00053a j•�%f 11M, afrih f When does Dependent Life Insurance coverage end.,? Unless life and AD&D insurance is continued under the Portability Benefit provision, Dependent Life Insurance coverage will end on the earliest of 1. the date You are no longer Actively at Work (except in the case of disability, layoff or leave of absence as set forth above); or 2. the date on which the Policy is terminated; 3. the date You stop making any required contribution toward payment of premiums; 4. the effective date of an amendment to the Policy which terminates insurance for the class to which You belong; or 5. the date You. a. are no longer a member of a class eligible for this insurance, b. request termination of coverage under the Policy, c. are retired or pensioned, or 6. the date a Dependent Child or Spouse no longer meets the Policy definition of Eligible Dependent Note: Coverage will continue past the age limit for eligible Dependent Children who are primarily dependent upon You for support and who cannot work to support themselves due to a physical or mental incapacity which began before the age limit was reached. Proof of such incapacity must be provided to Us upon request. 00054 TX FDL 1-604-412 29 GENERAL PROVISIONS Entire Contract; Changes The Policy, the Policyholder's Application, the Employee's Certificate of coverage, and Your application, if any, and any other attached papers, form the entire contract between the parties. Coverage under the Policy can be amended by mutual consent between the Policyholder and Us. No change in the Policy is valid unless approved in writing by one of Our officers. No agent has the right to change the Policy or to waive any of its provisions. Statements on the Application In the absence of fraud, all statements made in any signed application are considered representations and not warranties (absolute guarantees). No representation by: 1. the Policyholder in applying for the Policy will make it void unless the representation is contained in his signed Application; or 2. any Employee in applying for insurance under the Policy will be used to reduce or deny a claim unless a copy of the application for insurance, signed by the Employee, is or has been given to the Employee. Legal Actions Unless otherwise provided by federal law, no legal action of any kind may be filed against Us: 1. until 60 days after proof of claim has been given; or 2. more than 3 years after proof of Loss must be filed, unless the law in the state where You live allows a longer period of time. Clerical Error Clerical error or omission by Us to the Policyholder will not: 1. Prevent You from receiving coverage, if You are entitled to coverage under the terms of the Policy; or 2. Cause coverage to begin or coverage to continue for You when the coverage would not otherwise be effective. If the Policyholder gives Us information about You that is incorrect, We will. 1. Use the facts to decide whether You have coverage under the Policy and in what amounts; and 2. Make a fair adjustment of the premium. Incontestability The validity of the Policy shall not be contested, except for non-payment of premiums, after it has been in force for two years from the date of issue. The validity of the Policy shall not be contested on the basis of a statement made relating to insurability by any person covered under the Policy after such insurance has been in force for two years during such person's lifetime, and shall not be contested unless the statement is contained in a written instrument signed by the person making such statement. Premium Provisions Premiums are payable in United States dollars on or before their due dates. The Policyholder has agreed to deduct from Your pay any premiums payable for Your voluntary coverage. The Policyholder agrees to remit such premiums for the entire time coverage under the Policy is in effect. FDL 1-604-412 30 6 Premium charges for increases in insurance amounts becoming effective during a policy month will begin on the next premium due date. Premium charges for insurance terminating during a policy month will cease at the end of the month in which such insurance terminates. This method of charging premium is for accounting purposes only. It will not extend any insurance coverage beyond the date it would otherwise have terminated. Misstatement ofAge If You have misstated Your age or the age of a Dependent, the true age will be used to determine: 1. the effective date or termination date of insurance; and 2. the amount of insurance; and 3. any other rights or benefits. Premiums will be adjusted to reflect the premiums that would have been paid if the true age had been known. Conformity with State Statutes and Reguladons If any provision of the Policy conflicts with the statutes and regulations of the state in which the Policy was issued or delivered, it is automatically changed to meet the minimum requirements of the statute. Assignment You may assign any incident of ownership You may possess of the life insurance benefits provided under the Policy to anyone other than the Policyholder. We are not responsible for the validity or legal effect of any assignment. Collateral assignments, by whatever name called, are not permitted. FDLI-604-707-GenPTX REV2011 {'j�'lArrf,. , V{� •r� .; {1 y�ffi • �jh FDL 1-644-412 31 DEFINITIONS This section tells You the meaning of special words and phrases used in this Certificate. To help You recognize these special words and phrases, the first letter of each word, or each word in the phrase, is capitalized wherever it appears. Actively at Work or Active Work means that You must: 1. work for the Policyholder on a full-time active basis; or 2. work at least the minimum number of hours set forth in the Schedule of Benefits: and either: a. work at the Policyholder's usual place of business; or b. work at a location to which the Policyholder's business requires You to travel; 3. be paid regular earnings by the Policyholder, and 4. not be a temporary or seasonal Employee. You will be considered Actively at Work if You were actually at work on the day immediately preceding: 1. a weekend (except for one or both of these days if they are scheduled days of work); 2. holidays (except when such holiday is a scheduled work day); 3. paid vacations; 4. any non-scheduled work day; 5. excused leave of absence (except medical leave and lay-off); and 6. emergency Ieave of absence (except emergency medical leave); and You were not Hospital Confined or disabled due to an Injury or Sickness. 00061 0 Activities of Daily Living means: I . Eating — Feeding oneself by getting food into the body from a receptacle (such as a plate, cup or table) or by a feeding tube or intravenously. 2. Toileting — Getting to and from the toilet, getting on and off the toilet and performing associated personal hygiene. 3. Transferring — Moving into or out of a bed, chair or wheelchair. 4. Bathing — Washing oneself by sponge bath; or in either a tub or shower, including the task of getting into or out of the tub or shower. 5. Dressing — Putting on and taking off all items of clothing and any necessary braces, fasteners or artificial limbs. 6. Continence — Ability to maintain control of bowel and bladder function; or when unable to maintain control of bowel or bladder function, the ability to perform associated personal hygiene (including caring for catheter or colostomy bag). 00062 Annual Enrollment Period means a period of time prior to the Policy anniversary date during which eligible Employees may apply for life coverage or request changes to their life benefit plan. The Annual Enrollment Period is shown on the Schedule of Benefits. 00064 FDL i -604-412 32 Application means the document which sets forth the eligible classes, the amounts of insurance, and other relevant information pertaining to the plan of insurance for which the Policyholder applied. 00066 Contributory means You pay all or a portion of the premium for this insurance coverage. 00070 Dependent or Eligible Dependent means: 1. the Spouse or Domestic Partner of each individual eligible to be insured under the Policy; 2. a natural or adopted child of each individual eligible to be insured under the policy if the child is: a. younger than 25 years of age; or b. physically or mentally disabled and under the parents' supervision;, 3. a natural or adopted grandchild of each individual eligible to be insured underr'Jrtlhe;policy if the child is: ,l e7 r r a. younger than 25 years of age; and r� , b. a dependent of the insured for federal income taVpurposes at the time;,the application for coverage of the child is made. 0 ` lie Dependent Child - See Dependent or Eligible Dependent ��Y ••h' 00072 TXa t ff Doctor means a person legally licensed to practice medicine, psychiatry, psychology or psychotherapy, who is neither You nor a member of Your immediate famI qy A licensed medical practitioner is a Doctor if applicable state law requires that such practitioners be recognized for purposes of certification of Total Disability, Terminal Condition or covered Loss,,.and; a treatment provided by the practitioner is within the scope of his or her license. 00073 Doctor's Statement means a written medical opinion of a Doctor currently licensed to practice in the United States which:r�,,.,_ 1. is made at Your expense;aff& 2. indicates that You have a. I err 3. includes all medical test resul opinion is based; and y 4. indicates Your expected remai 5. is acceptable to Us. IF 00125TX n; and reports, and any other information on which the medical life span; and Employee means an'Actrvely at Work full-time employee whose principal employment is with the Policyholder, at the Policyholder's usual place of business or such place{s} that the Policyholder's normal course of business may require, who is Actively at Work for the minimum hours per week as set forth in the Schedule of Benefits and is reported on the Policyholder's records for Social Security and withholding tax purposes. 00074 Gainful Occupation means any work or employment in which the insured Employee: 1. is or could reasonably become qualified, considering his or her education, training, experience, and mental or physical abilities; 2. could reasonably find work or employment, considering the demand in the national labor force; and FDLI-604-412 33 3, could earn (or reasonably expect to earn) a before -tax income at least equal to 60% of his or her Pre- disability Income. 00078 0 Hospital Confined means that, upon the recommendation of a Doctor, You are registered as an inpatient in a hospital, nursing home or other medical facility which provides skilled medical care or as an outpatient in a hospital because of surgery. You are not Hospital Confined if You are receiving emergency treatment or if You are hospitalized solely because of non-surgical medical or diagnostic test. 00081 Injury means bodily injury resulting directly from an Accident and independently of all other causes. 00082 Insured means an Employee or Eligible Dependent covered under the Policy. 00083 Male Pronoun whenever used includes the female. 00088 Material and Substantial Duties means duties that are normally required for the performance of Your Regular Occupation and cannot be reasonably omitted or modified. 00089 Policy means this contract between the Policyholder and Us including the attached Application, which provides group insurance benefits. 00097 Policyholder means the person, firm, or institution to whom the Policy was issued. Policyholder also means any covered subsidiaries or affiliates set forth on the face of the Policy. W098 TX Registered Domestic Partner means an adult of the same or opposite gender who has an emotional, physical and financial relationship to You, similar to that of a Spouse, as evidenced by the following: 1. You and Your Domestic Partner share financial responsibility for a joint household and intend to continue an exclusive relationship indefinitely; 2. You and Your Domestic Partner each are at least eighteen (18) years of age; 3. You and Your Domestic Partner are both mentally competent to enter into a binding contract; 4. You and Your Domestic Partner share a residence and have done so for at least 12 months; 5. Neither You nor Your Domestic Partner are married to or legally separated from anyone else; 6. You and Your Domestic Partner are not related to one another by blood closer than would bar marriage; and Neither You nor Your Domestic Partner is a Domestic Partner of anyone else. Where the laws of the governing jurisdiction mandate a definition of Registered Domestic Partner other than shown above, that definition will be used in the Policy. 00104 FDL 1-644-412 34 Regular Occupation means the occupation that You are routinely performing when Your life insurance terminates due to Disability. We will look at Your occupation as it is normally performed in the national economy, instead of how the work tasks are performed for a specific Policyholder or at a specific location. 00105 Sickness means illness, disease, pregnancy or complications of pregnancy. 00109 Terminal Condition means You have been examined and diagnosed by Your Doctor as having a non - correctable health condition that, with reasonable medical certainty, will result in Your death within 12 months from the date of the Doctor's Statement. 00115 TX Voluntary means coverage for which You pay 100% of the premium. 00118 ¢y� We, Our and Us means Dearborn National Life Insurance Company, Chicago, Illinois. r 00119 You, Your and Yours means the eligible Employee to whom this Certificate is issued and whose insurance is in force under the terns of the Policy. 00120 yRk�3r'�rl.5f4Yr, �Vr{ f '•iii, ''�v ��v.{�?.ti•..{. FDLI-604-412 35 Administrative Office: 1020 31st Street Downers Grove, IL 60515 DEARBORN NATIONAL ® LIFE INSURANCE COMPANY Chicago, Illinois RIDER This Rider is made a part of the Policy or Certificate (hereafter "the Policy") to which it is attached. It takes effect and ends at the same time as the Policy. All provisions of the Policy, including any other Riders or Amendatory Endorsements will apply to this Rider, except that in the event of a conflict, the specific provisions of this Rider will govern. Beneficiary Resource Services What is the Beneficiary Resource Services? The Beneficiary Resource Services is a non -insurance benefit made available to You or Your beneficiaries which provides access at no additional cost to the following services. • Unlimited telephone access to grief counselors, legal advisors and financial advisors for up to one year from the date of loss; and, • Five (5) face-to-face sessions, or equivalent professional time, with a grief counselor, legal advisor and/or a financial advisor for up to one year from the date of loss. How the Beneficiary Resource Services are accessed You or Your beneficiaries may access these services by contacting Bensinger, DuPont & Associates at 1- 800-769- 9187, the program administrator for Beneficiary Resource Services. Additional contact information will be provided at the time a claim for a loss covered under the Policy is made. Dearborn National Life Insurance Company® does not underwrite or administer the Beneficiary Resource Services program. When do the Beneficiary Resource Services Terminate? 0 The services available under this Rider will end as follows: • On the date Your coverage is terminated under the section When Does Your coverage under the Policy end? found in the Termination Provision of the Policy; or • One year from the date of loss if the loss occurs while the Policy is in effect. Important Terms For purposes of this Rider, "date of loss" means the date of death of the named insured or the date the named insured became eligible for benefits under the Accelerated Death Benefit provision of the Policy to which this Rider is attached. If the named insured becomes eligible for and receives benefits under the Accelerated Death Benefits provision of the Policy, and subsequently dies, the date of loss remains the date the named insured became eligible for benefits under the Accelerated Death Benefit provision of the Policy to which this Rider is attached. President Nothing contained in this Rider shall be held to alter or affect any provision or condition of the Policy other than as stated above. FDL I -NIB-BRS-4/2012 NOTICE to the Policyholder and Cerdficateholder Insured under the Group Term Life Insurance Policy Provided by Dearborn National Life Insurance Company® Regarding the Beneficiary Resource Services Noninsurance Benefit This notice is to advise you that Your Group Term Life Insurance program also provides a non -insurance benefit: Beneficiary Resource Services. Noninsurance Benefit Description Beneficiary Resource Services is a service that provides unlimited telephone access to grief counselors, legal advisors and financial advisors, as well as five (S) face-to-face sessions for up to one year following the date of loss. (Date of loss is defined in the Beneficiary Resource Services Rider attached to the Policy.) This noninsurance benefit is available at the option of the Policyholder without any action required on the part of an insured person to either accept or decline the service. � pf''t�7i ff..Sr There is no charge for this service. _�• C�� F The service is currently administered by Bensinger, DuPont & Associates. Dearborn National Life Insurance Company (sometimes referred to as "We" or "Our") makes this program available, but it does not underwrite or administer the Beneficiary Resource Services program. Why This Service is Being Made Available We are making this service available to provide support and assistance to persons who have suffered a loss that is covered by the group term life insurance policy. The death or terminal illness of a loved one has a significant impact and support services help deal with the grief legal or financial issues experienced during the critical months following a loss. ;sy.,, VI,% �. Accessin¢ Beneficiary Resource Services nr�r1�;.,,,. Services may be accessed by contacting the program administrator named in the Rider at 1-800-769-9187. Termination of the Noninsurance Benefit This noninsurance benefit is provided free of charge. It is subject to termination at our option or at the option of the program administrator. If We discontinue this service We will notify the Policyholder not less than thirty (30) days in advance of the discontinuance of this service. If the current program administrator discontinues the program and we are unable to find a replacement, we will notify the Policyholder as soon as is reasonable under the circumstances. If discontinued, the services available under this noninsurance benefit will no longer be available. Unless terminated by Us or by the Program administrator, the Beneficiary Resource Services noninsurance benefit is available following a covered loss for as long as you remain covered under the group term life insurance policy and such policy remains in effect, subject to the time periods stated above. NIB-BRS-Notice (412012) Administrative Office: 1020 31 st Street Downers Grove, IL 60515 DEARBORN NATIONALS LIFE INSURANCE COMPANY Chicago, Illinois RIDER This Rider is made a part of the Policy or Certificate (hereafter "the Policy") to which it is attached. It takes effect and ends at the same time as the Policy. All provisions of the Policy, including any other Riders or Amendatory Endorsements will apply to this Rider, except that in the event of a conflict, the specific provisions of this Rider will govern. On -Line Will Preparation Service What is the On -Line Will Preparation Service? On-line Will Preparation Service is a non -insurance benefit made available to You which provides access at no additional cost to the following service: • Access to on-line tools and resources to help You create Your will. How is the On-line Will Preparation Service Accessed? Your employer will give you a promotional code to access the EstateGuidance® web service at EstateGuidance.com. This code will give you access to the will preparation services. The On-line Will Preparation Service program is administered and provided by ComPsyche. Corporation. Dearborn National Life Insurance Company does not underwrite or administer this program. When does the On -Line Will Preparation Service Terminate? The On -Line Will Preparation Service terminates if Your coverage is terminated under the section on When does Your coverage under the Policy end? found in the Termination Provision of the Policy. Nothing contained in this Rider stated above. FDL 1-NIB-OWP-412012 President be held to alter or affect any provision or condition of the Policy other than as NOTICE to Provided by Dearborn National L fe Insurance Company the Policyholder and Certificate holder under the Group Term Life Insurance Policy Regarding the On -Line Will Preparation Noninsurance Benefit This notice is to advise you that Your Group Term Life Insurance program also provides a non - insurance benefit: On -Line Will Preparation Service. Noninsurance Benefit Description On -Line Will Preparation Service is a service that provides access to a website to help in the preparation of a Last Will and Testament. This noninsurance benefit is available at the option of the Policyholder without any action required on the part of an insured person to either accept or decline the service. There is no charge for this noninsurance benefit.° The service is currently administered by ComPsych® Corporation.. Dearborn National Life Insurance Company (sometimesrreferred oto as "We" or "Our") makes this "'Wil program available, but it does not underwrite or administer`tirp'prograxn Y� ; Why This Service is Beine Made Available ,y By using the EstateGuidance® web service at. EstateGuidance.com, You will have access to on-line tools and resources to create Your will, utilizing the, services provided by ComPysch Corporation. In addition to acquiring group term life insurance, preparing a will is lMther important way to protect your loved ones. Accessing On -Line Will Preparation Service Your employer will distribute promotional material, website information, and a promotional code for you to use. This promotional code will provide will preparation services free of charge on the website. I When Does the On -Line Will Preparation Service Terminate? This noninsurance benefit .is provided free of,charge as a courtesy. It is subject to termination at our option or at the option of the program'administrator. If We discontinue this service We will notify the Policyholder not less than thirty (30) days in advance of the discontinuance of this service. 11 If the current program administrator discontinues the program and we are unable to find a replacement, we will notify the Policytioii�der as soon as is reasonable under the circumstances. Unless terminated by UJor by the Program administrator, the On -Line Will Preparation Service noninsurance benefit is available for as long as you remain covered under the group term life insurance policy and such policy, remains in effect. If discontinued, the services available under this noninsurance benefit will no longer be available. EstateGuidance® is offered by ComPsych® Corporation. EstateGuidanceO is administered by ComPsych® Corporation. Dearborn National Life Insurance Company® does not underwrite or administer the EstateGuidance® program. NIB-OWP-Notice (412012) Administrative Office: 1020 3is' Street Downers Grove, Illinois 60515 DEARBORN NATIONAL® LIFE INSURANCE COMPANY Chicago, Illinois RIDER This Rider is made a part of the Policy or Certificate (hereafter "the Policy") to which it is attached. It takes effect and ends at the same time as the Policy. All provisions of the Policy, including any other Riders or Amendatory Endorsements will apply to this Rider, except that in the event of a conflict, the specific provisions of this Rider will govern. Travel Resource Services What is the Travel Resource Services? Travel Resource Services is a non -insurance benefit made available to You which provides access at no additional cost to the following services: • Access to a toll free number in the event You encounter an emergency while traveling more than 100 miles from Your principal residence. • Access to on-line tools and resources for any pre -trip assistance You may need. How is Travel Resource Services accessed? Your employer will provide You with an identification card to be used whenever services are needed. This card will give You access to the toll-free number used to initiate the services. The Travel Resource Services program is administered and provided by Europ Assistance USA, Inc. Dearborn National Life Insurance Company does not underwrite or administer this program. When do the Travel Resource Services terminate? The Travel Resource Services terminate if Your coverage is terminated under the section on When does Your coverage under the Folicy end? found in the Termination Provision of the Policy. President Nothing contained in this Rider shall be held to alter or affect any provision or condition of the Policy other than as stated above. FDL I -NIB -TRS (412012) r --w NOTICE to the Policyholder and Certificate holder under the Group Term Life Insurance Policy Provided by Dearborn National Life Insurance Company Regarding the Travel Resource Services Noninsurance Benefit This notice is to advise you that Your Group Term Life Insurance program also provides a non - insurance benefit: Travel Resource Services. Noninsurance Benefit Description fol Travel Resource Services is a service that provides telephonic access to emergency assistance while traveling more than one hundred (100) miles from Your home and access to on-line travel tools and resources when preparing a trip. This noninsurance benefit is available at the option of the Policyholder without any action required on the part of an insured person to either accept or decline the service. There is no charge for this noninsurance benefit. .%, The service is current!y administered by Europ Assistance USA, Inc.A ,11= Dearborn National Life Insurance Company (sometimes referred to "�asA"We" or "Our") makes this �f 4, fir. ?1XI- program available, but it does not underwrite or administer the Travel Resource Services program. Why This Service is Being Made Available We are making this service available to provide support and assistance to persons who are traveling or preparing to travel, in addition to the group life and accidental death benefits available under this Policy. If an emergency occurs on a trip; counselors are �availaU assist in locating nearby hospitals, assist in aybl recovering lost passports, medical evacuations,,and,otherremergencies. Advice at the planning stage of a trip is available.;:rr sryi Accessiniz Travel Resource Services Services may be accessed by�contacttngtherprogram administrator at 1-877-715-2593., Termination of the Noninsurance Benefit VV �..•f� 1 �%;l� ti .. This noninsuranceQn,efit"is provided free of charge as a courtesy. It is subject to termination at our 11 option or at the option of the program administrator. If We discontinue this service We will notify the Policyholder not less than thirty (30) days in advance of the discontinuance of this service. If the current program administrator discontinues the program and we are unable to find a replacement, we will notify the Policyholder as soon as is reasonable under the circumstances. If discontinued, the services available under this noninsurance benefit will no longer be available. Unless terminated by Us or by the Program administrator, the Travel Resource Services noninsurance benefit is available following a covered loss for as long as you remain covered under the group term life insurance policy and such policy remains in effect. NIB -TRS -Notice (4/2012) ERISA INFORMATION STATEMENTS 0 The benefits described in your certificate are insured by a Policy issued by Dearborn National Life Insurance Company ("Dearborn National"), pursuant to an Employee Welfare Benefit Plan (" the Plan") established by your employer ("the Company"). This ERISA Information Statement ("EIS") describes some of the key provisions of the Plan in effect as of the Effective Date of the Policy. It is not the intention of the EIS to cover all situations that may arise, but to provide you with a general understanding of your benefits. In the case of any item not covered by the EIS or in the event of any conflict between the EIS and the Policy, the Plan will always control. You should not rely on any oral explanation, description, or interpretation of the Plan because the written terms of the Plan will govern. Your right to any benefit depends on the actual facts and terms and conditions of the particular Plan; no rights accrue by reason of or arising out of any statement shown in or omitted from this EIS. A. ADMINISTRATION OF THE PLAN The Plan Administrator is responsible for the administration of the Plan. The Plan Administrator has full discretionary authority and control over the Plan. This authority provides the Plan Administrator with the power necessary to operate, manage and administer the Plan. This authority includes, but is not limited to, the power to interpret the Plan and determine who is eligible to participate, to determine the amount of benefits that may be paid to a participant or his or her beneficiary, and the status and rights of participants and beneficiaries. The Plan Administrator also has the authority to prescribe the rules and procedures under which the Plan shall operate, to request information, and to employ or appoint persons to aid the Plan Administrator in the administration of the Plan. Failure by the Plan or the Plan Administrator to insist upon compliance with any provisions of the Plan at any time or under any set of circumstances shall not operate to waive or modify the provision or in any manner render it unenforceable as to any other time or as to any other occurrence, whether the circumstances are or are not the same. No waiver of any term or condition of the Plan shall be valid unless contained in a written memorandum expressing the waiver and signed by the person authorized by the Plan Administrator to sign the waiver. The Plan may be amended, terminated or suspended in whole or in part, at any time without the consent of the employees or beneficiaries. Any amendment, termination or suspension shall be in writing, and attached to the Plan. Any amendment, termination or suspension shall be executed according to the Employer's authorized procedures. Any such authorization may be specific to the Plan or persons authorized to act on behalf of the Employer or may be general as to duties of such person. Except for termination or suspensions, any amendments affecting the Policy and/or Certificate must also be approved in writing by an officer of Dearborn National and shall be effective as of the date agreed to, in writing by the Plan Sponsor and Dearborn National. Notwithstanding anything to the contrary in this document, the Policy shall terminate according to the provisions in the Policy. The Plan has other fiduciaries, advisors and service providers. The Plan Administrator may allocate fiduciary responsibility among the Plan's fiduciaries and may delegate responsibilities to others. Any allocation or delegation must be done in writing and kept with the records of the Plan. The Plan's life benefits are provided pursuant to an insurance policy issued to the Company. Dearborn National's (the Insurer's) services shall be limited to, and the Plan Administrator has the full discretionary and final authority to: resolve all matters when a review pursuant to the claims procedures has been requested; interpret, establish and enforce rules and procedures for the administration of the Policy and any claim under it; and determine eligibility of Employees and Dependents for benefits and their entitlement to and the amount of benefits. Each fiduciary is solely responsible for its own improper acts or omissions. Except to the extent required by ERISA, no fiduciary has the duty to question whether any other fiduciary is fulfilling all of the responsibilities imposed upon the other fiduciary by law. Nor is a fiduciary liable for a breach of fiduciary duty committed before it became, or after it stopped being, a fiduciary. However, a fiduciary may be liable for a breach of fiduciary responsibility of any Plan fiduciary, to the extent provided in ERISA Section 405(a). The Employer makes no promise to continue these * If this Plan is an ERISA plan, these ERISA provisions apply. However, your employer may issue a Summary Plan Description ("SPD"), If it does, and if there are any conflicts between the SPD and the EIS in regards to your ERISA rights, the SPD provisions will always control. FDL EIS Standard 412009 rev'd. benefits in the future and rights to future benefits will never vest. Retirement does not give any retiree any vested right to continue to participate or receive Plan benefits. B. CLAIMS PROCEDURE: When you or your Beneficiary are eligible to receive benefits, you or your Beneficiary, or your authorized representative (collectively, "you") must notify the Plan Administrator by submitting the proper form in writing. You may do this by sending notice of your claim to the Plan Administrator who has been appointed to assist Dearborn National in the claims processing for this Plan or by contacting Dearborn National directly at: Claims Department Dearborn National Life Insurance Company 1020 31st Street Downers Grove, IL. 60515-5591, 4!�L 1-800-788-2281 .,b� For the purpose of this Section, including Subsections 1 and 2 below, the terms' - written" and "in writing" include "electronic." Any action required to be "written" or "in writing," may be done electronically, where available. If Dearborn National uses electronic notices, it will do so in accordance with 29 CFR 2520.104b - 10(i), (iii) and (iv). AM, 140. 1. Disability Insurance Plans Dearborn National will give you a written response to your' claim, usually within 45 days. The time for decision may be extended for two additional 30 day periods provided that, prior to any extension period, Dearborn National notifies you in writing that an extension is necessary due to matters beyond the control of the Plan, identifies those matters and gives the date by which it expects to render its decision. If the extension is due to your failure to submit information necessary to decide your claim, the time for decision shall be tolled from the date on which we send you notice of the extension until the date we receive your response to our.request. This period will be no longer than 45 days after we have requested the information. At that iime,we will decide your claim based on the information we iSS+r>r have at that time. � If the claim is denied, in whole or in part; youywill receive a written notice giving the following: - the reason for the denial; the Policy provisions on, which the deniil,is based; IKOYf.+r,'Vf an explanation of what other;infoyry•mqation, if any, may be needed to process the claim and why it is needed; the steps that you have'to follow to!hr� ave the claim reviewed; a statement that you have.the right to bring a civil action under section 502(a) of ERISA after you appeal our decision and after you receive a written denial on appeal; and if an`lir nile,guideli e, protocol, or other similar criterion was relied upon in making the denial, either (i) the specific rule,�Pguideline, protocol or other similar criterion; or (ii) a statement that such a rule, guideline, prococol;or other similar criterion was relied upon in making the denial and that a copy will be provided free of charge to you upon request; and if denial is based on medical judgment, either (i) an explanation of the scientific or clinical judgment for the determination, applying the terms of the Plan to your medical circumstances, or (ii) a statement that such explanation will be provided to you free of charge upon request. If the claim has been denied, in whole or in part, you can appeal the denial to us for a full and fair review. You have at least 180 days to appeal from the claim denial. You may: a. request a review upon written application within 180 days of the claim denial; b. request, free of charge, copies of all documents, records and other information relevant to your claim; and * If this Plan is an ERISA plan, these ERISA provisions apply. However, your employer may issue a Summary Plan Description ("SPD"). If it does, and if there are any conflicts between the SPD and the EIS in regards to your ERISA rights, the SPD provisions will always control. FDL EIS Standard 412009 rev'd. C. submit written comments, documents, records and other information relating to your claim, without regard to whether such information was submitted or considered in the initial benefit determination. Dearborn National will make a decision no more than 45 days after we receive your appeal. The time for decision may be extended for one additional 45 day period provided that, prior to the extension, Dearborn National notifies you in writing that an extension is necessary due to special circumstances, identifies those circumstances and gives the date by which it expects to render its decision. If your claim is extended due to your failure to submit information necessary to decide your claim on appeal, the time for your decision shall be tolled from the date on which the notification of the extension is sent to you until the date we receive your response to the request. The written decision will include specific references to the Plan provisions on which the decision is based and any other notice(s), statement(s) or information required by applicable law. 2. Life Insurance Plans Dearborn National will give you a decision no more than 90 days after receipt of due proof of loss, except in special circumstances (such as the need to obtain further information), but in no case more than 180 days after the due proof of loss is received. The written decision will include specific reasons for the decision and specific references to the Plan provisions on which the decision is based. If the claim is denied, in whole or in part, the claimant will receive a written notice giving the following: - the reason for the denial; - the Policy provisions on which the denial is based; - an explanation of what other information, if any, may be needed to process the claim and why it is needed; and - the steps that have to be followed to have the claim reviewed. Any denied claim may be appealed to the Insurer for a full and fair review. The claimant may: a) request a review upon written application within 60 days of receipt of claim denial; b) upon request and free of charge, review pertinent documents, records and other information relevant to the claim and receive copies of same; and C) submit issues, comments, records, and other information in writing. A decision will be made by the Insurer no more than 60 days after receipt of the request for review, except in special circumstances (such as the need to obtain additional evidence), but in no case more than 120 days after the request for review is received. The written decision will include specific reasons for the decision and specific references to the Plan provisions on which the decision is based. The decision will advise you of any other appeal rights you have under the Plan, as well as your right to bring an action under Section 502(a) of ERISA. C. ERISA NOTICE OF YOUR RIGHTS As a participant in the Plan you are entitled to certain rights and protections under the Employee Retirement Income Security Act of 1974 ("ERISA"). ERISA provides that all Plan participants shall be entitled to: Examine, without charge, at the Plan Administrator's office and at other locations, such as work sites and union halls, all Plan documents, including insurance contracts, collective bargaining agreements and copies of all documents filed with the U.S. Department of Labor, such as detailed annual reports and Plan descriptions. Obtain copies of all Plan documents and other PIan information upon written request to the Plan Administrator. The Plan Administrator may make a reasonable charge for the copies. Receive a summary of the Plan's annual financial report. The Plan Administrator is required to furnish each participant with a copy of this summary annual report. In addition to creating rights for the Plan participants, ERISA imposes duties upon the people who are responsible for the operation of the employee benefit Plan. The people who operate your Plan, called "fiduciaries" of the Plan, have a duty to do so prudently and in the interest of you and other Plan participants and beneficiaries. No one, including your employers, your union, or any other persons, may fire you or otherwise discriminate against you in any way to prevent you from obtaining a welfare benefit or exercising your rights under ERISA. If your claim for a welfare benefit is denied in whole or in part you must receive a written explanation of the reason for the * If this Plan is an ERISA plan, these ERISA provisions apply. However, your employer may issue a Summary Plan Description ("SPD"). If it does, and if there are any conflicts between the SPD and the EIS in regards to your ERISA rights, the SPD provisions will always control. FDL EIS Standard 412009 rev'd. denial. You have the right to have the Plan review and reconsider your claim. Under ERISA, there are steps you can take to enforce your rights. For instance, if you request materials from the plan and do not receive them within 30 days, you may file a suit in federal court. In such a case, the court may require the Plan Administrator to provide the materials and pay you up to $110 a day until you receive the materials, unless the materials were not sent because of reasons beyond the control of the Plan Administrator. If you have a claim for benefits which is denied or ignored, in whole or in part, you may file suit in a state or federal court. If it should happen that Plan fiduciaries misuse the Plan's money, or if you are discriminated against for asserting your rights, you may seek assistance from the U.S. Department of Labor, or you may file suit in federal court. The court will decide who should pay costs and legal fees. If you are successful the court may order the person you have sued to pay these costs and fees. If you lose, the court may order you to pay these costs and fees, for example, if it finds your claim is frivolous. If you have any questions about this statement or about your rights under ERISA, you should contact the nearest office of the Pension and Welfare Benefits Administration, United States Department of Labor, listed in your telephone directory or the Division of Technical Assistance and Inquiries, Employee Benefit Security Administration, United States Department of Labor, 200 Constitution Avenue, NW Washington DC 20210. D. PARTICIPANT'S RIGHTS This Plan shall not be deemed to constitute a contract between the Company and any participant or to be consideration or an inducement for the employment of any participant or employee. Nothing contained in this Plan shall be deemed to give any participant or employee the right to be retained in the service of the Company or to interfere with the right of the Company to discharge any participant or employee at any time regardless of the effect which such discharge shall have upon him or her as a participant of this PIan. * If this Plan is an ERISA plan, these ERISA provisions apply. However, your employer may issue a Summary Plan Description ("SPD"). If it does, and if there are any conflicts between the SPD and the EIS in regards to your ERISA rights, the SPD provisions will always control. FDL EIS Standard 4/2009 rev'd. n Deoxbofn W Nair iona4 l° Administrative Office: 1020 31st Street • Downers Grove, IL 60515-5591 Products and services marketed under the Dearborn National® brand and the star logo are underwritten and/or provided by Dearborn National® Life Insurance Company (Downers Grove, IL) in all states (excluding New York), the District of Columbia, the United States Virgin Islands, the British Virgin Islands, Guam and Puerto Rico. (f) Dearborn National® Life Insurance Administrative Office: Company 1020 31st Street Downers Grove IL 60515-5591 (A stock life insurance company, herein called the "we, ,us,, or ,Our,) Policyholder: SAMPLE TEXAS Policy Number: SAMPLE TX -0001 Policy Effective Date: January 1, 2013 Anniversary Date: January 1 We agree with the Policyholder to insure certain eligible Employees of the Policyholder. We promise to pay benefits for loss covered by the Policy in accordance with its provisions. The Policyholder should read this Policy carefully and contact Dearborn National® Life Insurance Company promptly with any questions. Policyholder means the Employer to whom the Policy is issued and who sponsored the coverage for its Employees. Employer means the Policyholder and includes any division, subsidiary, or affiliated company named in the Policy. POLICY EFFECTIVE DA TE AND TERM The Policy takes effect on the Policy Effective Date stated above subject to any participation requirement stated in the Policy. All insurance periods will be computed from that date. The Policy remains in force for the period for which premium has been paid. It may be renewed for further successive periods by payment of premium as stated in the Policy. All periods of insurance begin and end at 12:01 A.M., Standard Time, at the Policyholder's address as stated in the Policy, and on the Application. :1 Signed for Dearborn National Life Insurance Company '4'V j , P 4. Jj :,Secretary k:=� President f Voluntary Group Term We Insurance Policy with Accidental Death & Dismemberment and Dependent Life Insurance with Dependent Accidental Death and ,.,, Dismemberment Benefits „Ylv Non -Participating 1 'w�`f.� FDL1-504-412 TX TABLE OF CONTENTS PROVISION PAGE Premium 3 0 Premium Rate Guarantee 3 Policy Termination 4 Additional Provisions 4 Rate Addendum S Application Attached ATTACHMENTS: • Master Application • Certificate of Insurance FDL 1-504-412 TX 2 ' PREMIUM How is the lnAW premium calculated? Initial life, AD&D and Dependent Life insurance premium is calculated in accordance with the rates set forth on the attached Rate Addendum. When is premium paid? The Policy is issued in consideration of the payment in advance of premium on the premium due date indicated on the Application. Payment must be made by the premium due date as shown on the Application. If an addition, termination or change in insurance takes place other than on a regular due date, any premium adjustment will take effect on the next due date. Is premium payable while an Insured receives benefits? We will waive premium for an insured Employee in accordance with the Waiveroi¢Premium provision of the Policy. ��;.�/ Is there a grace periodfor premium payment? We will allow a grace period of 31 days for the payment of any premiums due except the first. -In' surance coverage shall continue in force during the grace period unless the Policyholder has givenP advance written notice of cancellation in accordance with the terms of this Policy. If premium is not received by the end of the grace period, this Policy will terminate as of the last date for which premium was paid. V -v"M .� t The Policyholder is liable for premium due on coverage p"rovided duiing the grace period. If We receive written notice during the grace period that the is to be canceled, We will cancel it as of the later of:' ?,'Y 1. the date requested in the cancellation noticed h]'tor� h ti;Gln�l. 2. the date We receive such notice. The Policyholder must payya.pro rata premium for any coverage provided during the grace period. ' 1A N{ J.{ N++�Yi . ,, PREMIUM RA,.TEGUARANTEE What is the initial premium rate guarantee?%tirSr ' A change in premium rates will not take effect before January 1, 2015. However, We may change premium rates if the risk assumed changes. Premium rates may change if the following occurs: 1. a change in the Policy design; 2. a change in the terms of the Policy; 3. addition or deletiori..of ardivision; subsidiary or affiliated company; 4. a change in the number of Insureds by 10% or more from the number of Insureds on the initial Effective {fi3ate; 5 V�,�a change in the laws o'r,regulations or other government action which applies to the Policy; 6.��'�for reasons other.than'1''=5 above such as but not limited to a change in factors bearing on the risk assumed.Y'y- -'441 The Policyholder must furnish notice and documentation satisfactory to Us within 31 days of the occurrence of any event which would cause a change in rates as described above. If the Policyholder fails to provide such timely notice, we will apply new rates retroactively to the date of the event. We will notify the Policyholder in writing at least 31 days in advance of any premium rate changes. A change may take effect on an earlier date if both the Policyholder and We agree. FDL I-504-412 TX POLICY TERMINATION Who may cancel the Policy or a plan under the Policy? � The Policy or a plan under the Policy can be canceled by the Policyholder with 31 days written notice delivered to `..! Us. This Policy will terminate for any of the following reasons: 1. If the Policyholder fails to pay any premium within the 31 -day Grace Period, this Policy will terminate in accordance with the terms set forth in the Grace Period provision. 2. We may terminate this Policy on any premium due date if: a. coverage is Contributory and less than 25% of the eligible Employees participate; or b. the Policyholder fails to perform any of its obligations that relate to the Policy; or c. the Policyholder does not promptly provide Us with information that is reasonably required; or d. fewer than 2 Employees are insured under the Policy. If We cancel the Policy, for reasons other than the Policyholder's failure to pay premium, a written notice will be delivered to the Policyholder at least 31 days prior to the cancellation date. ADDITIONAL PROVISIONS What happens if an inadvertent error occurs? Clerical error or omission by Us to the Policyholder will not: 1. Prevent an Employee from receiving coverage, if he is entitled to coverage under the terms of the Policy; or 2. Cause coverage to begin or coverage to continue for an Employee when the coverage would not otherwise be effective. If the Policyholder gives Us information about an Employee that is incorrect, We will: 0 1. Use the facts to decide whether the Employee has coverage under the Policy and in what amounts; and 2. Make a fair adjustment of the premium. Will certijkates he issued? We will deliver certificates of insurance to the Policyholder for issuance to each insured Employee. The certificates will describe the benefits, to whom they are payable, the Policy limitations and where the Policy may be inspected. What is considered to be the entire contract? This entire Policy consists of: I . all Policy provisions and any amendments and/or attachments issued; 2. the Certificate of Coverage; and 3. the Policyholder's signed Application; and 4. the Employee's signed enrollment forms. FDL1-504-412 TX 4 C) RATE ADDENDUM (All Rates Per $1,000 Per Month unless otherwise stated) Class 01 Voluntary Term Life: $0.00 Class 01 Voluntary Accidental Death & Dismemberment: $0.00 Class 01 Voluntary Spouse Life: $0.00 Class 01 Voluntary Child Life: $0.00 Class 0 FDL 1-504-412 TX 5 STATE SUPPLEMENT The following policies apply only to those individuals in your group insurance program who reside in the referenced states. Arizona and Maine Except as otherwise permitted by law, we will not disclose collected personal information about an individual to a nonaffiliated third party with whom we jointly offer products without giving the individual an opportunity to tell us that he or she does not want us to share his or her personal information. Minnesota and Montana Except as otherwise permitted by law, we will not disclose collected personal information about an individual to a nonaffiliated third party with whom we jointly offer products without obtaining the individual's written authorization. Montana Upon written request, an individual who has authorized the collection of health information is entitled to receive a record of Dearborn National's disclosures of any of his medical record information made within the preceding 3 years. Oregon An individual has the right to authorize disclosure of his or her personal information to an insurance company. An Oregon resident can exercise this right by requesting an authorization form in writing. Our address is: Dearborn National® Life Insurance Company 1020 31 st Street Downers Grove, IL 60515 FDL1-504-412 TX o r� ERISA INFORMATION STATEMENT* The benefits described in your certificate are insured by a Policy issued by Dearborn National Life Insurance Company ("Dearborn National"), pursuant to an Employee Welfare Benefit Plan (" the Plan") established by your employer ("the Company"). This ERISA Information Statement ("ELS") describes some of the key provisions of the Plan in effect as of the Effective Date of the Policy. It is not the intention of the EIS to cover all situations that may arise, but to provide you with a general understanding of your benefits. In the case of any item not covered by the EIS or in,the event of any conflict between the EIS and the Policy, the Plan will always control. You should not relimon any oral explanation, description, or interpretation of the Plan because the written terms of the Plan will gov ern. Your right to any benefit depends on the actual facts and terms and conditions of the particular Plan; no rights accrue by reason of or arising out of any statement shown in or omitted from this EIS. � � � .iv A. ADMINISTRATION OF THE PLAN The Plan Administrator is responsible for the administration of the Plan. The Plan Adm strator has full discretionary authority and control over the Plan. This authority provides the Plan Administrator with the power necessary to operate, manage and administer the Plan. This authority includes, but is not limited to, the power to interpret the Plan and determine who is eligible to participate, jofdeterminehamount of benefits that may be paid to a participant or his or her beneficiary, and the status and"rights�W participants and beneficiaries. The Plan Administrator also has the authority to prescribe the rules and procedures underfwhich.tthe Plan shall operate, to request information, and to employ or appoint persons toatd the Plan Administrator;m the administration of the Plan. Failure by the Plan or the Plan Administrator to }insist upon compliance with any provisions of the Plan at any time or under any set of circumstances shall not operateito,waive or `modify the provision or in any manner render it unenforceable as to any other time or as to any other occurrence, whether the` circumstances are or are not the same. No waiver of any term or condition of the Plan shall be valid,unless contained in a written memorandum expressing lk&, the waiver and signed by the person authorized by the Plan•Administrator to sign the waiver, The Plan may be amended, ter,ray,minated o6suspend ed -,in whole or in part, at any time without the consent of the employees or beneficiaries. Any amendment, termination or suspension shall be in writing, and attached to the Plan. Any amendment, termination or suspension shall lierezecuted according to the Employer's authorized procedures. Any such authorization may be specific to the Plan or persons authorized to act on behalf of the Employer or may be general as to duties of.s ich person. Except for termination or suspensions, any amendments affecting the Policy and/or Certificate must, alsofbe,approved in writing by an officer of Dearborn National and shall be effective as of the date agreed to, in writing by thePlan-Sponsor and Dearborn National. Notwithstanding anything to the contrary in this document, the Policy. shall term nate. according to the provisions in the Policy. AL -o The Plan has ,other fiduciaries, advisors and service providers. The Plan Administrator may allocate fiduciary responsibility among the Plan's fiduciaries and may delegate responsibilities to others. Any allocation or delegation must be done in writing and kept with the records of the Plan. The Plan's life benefits are provided pursuant to an insurance �policy'�issuedtto the Company. Dearborn National's (the Insurer's) services shall be limited to, and the Plan Administrator has ige,full discretionary and final authority to: vA resolve all matters when a review pursuant to the claims procedures has been requested; interpret, establish and enforce rules and procedures for the administration of the Policy and any claim under it; and determine eligibility of Employees and Dependents for benefits and their entitlement to and the amount of benefits. Each fiduciary is solely responsible for its own improper acts or omissions. Except to the extent required by ERISA, no fiduciary has the duty to question whether any other fiduciary is fulfilling all of the responsibilities imposed upon the other fiduciary by law. Nor is a fiduciary liable for a breach of fiduciary duty committed before it became, or after it stopped being, a fiduciary. However, a fiduciary may be liable for a breach of fiduciary responsibility of any Plan fiduciary, to the extent provided in ERISA Section 405(a). The Employer makes no promise to continue these * If this Plan is an ERISA plan, these ERISA provisions apply. However, your employer may issue a Summary Plan Description ("SPD"). If it does, and if there are any conflicts between the SPD and the EIS in regards to your ERISA rights, the SPD provisions will always control. FDL EIS Standard 4/2009 rev'd. benefits in the future and rights to future benefits will never vest. Retirement does not give any retiree any vested right to continue to participate or receive Plan benefits. 0 B. CLAIMS PROCEDURE: When you or your Beneficiary are eligible to receive benefits, you or your Beneficiary, or your authorized representative (collectively, "you") must notify the Plan Administrator by submitting the proper form in writing. You may do this by sending notice of your claim to the Plan Administrator who has been appointed to assist Dearborn National in the claims processing for this Plan or by contacting Dearborn National directly at: Claims Department Dearborn National Life Insurance Company 1020 31 st Street Downers Grove, IL. 60515-5591 1-800-778-2281 For the purpose of this Section, including Subsections 1 and 2 below, the terms "written" and "in writing" include "electronic." Any action required to be "written" or "in writing," may be done electronically, where available. If Dearborn National uses electronic notices, it will do so in accordance with 29 CFR 2520.104b - 10(i), (iii) and (iv). 1. Disability Insurance Plans Dearborn National will give you a written response to your claim, usually within 45 days. The time for decision may be extended for two additional 30 day periods provided that, prior to any extension period, Dearborn National notifies you in writing that an extension is necessary due to matters beyond the control of the Plan, identifies those matters and gives the date by which it expects to render its decision. If the extension is due to your failure to submit information necessary to decide your claim, the time for decision shall be tolled from the date on which we send you notice of the extension until the date we receive your response to our request. This period will be no longer than 45 days after we have requested the information. At that time we will decide your claim based on the information we have at that time. If the claim is denied, in whole or in part, you will receive a written notice giving the following: - the reason for the denial; - the Policy provisions on which the denial is based; - an explanation of what other information, if any, may be needed to process the claim and why it is needed; - the steps that you have to follow to have the claim reviewed; - a statement that you have the right to bring a civil action under section 502(a) of ERISA after you appeal - our decision and after you receive a written denial on appeal; and if an internal rule, guideline, protocol, or other similar criterion was relied upon in making the denial, either (i) the specific rule, guideline, protocol or other similar criterion; or (ii) a statement that such a rule, guideline, protocol or other similar criterion was relied upon in making the denial and that a copy will be provided free of charge to you upon request; and - if denial is based on medical judgment, either (i) an explanation of the scientific or clinical judgment for the determination, applying the terms of the Plan to your medical circumstances, or (ii) a statement that such explanation will be provided to you free of charge upon request. If the claim has been denied, in whole or in part, you can appeal the denial to us for a full and fair review. You have at least 180 days to appeal from the claim denial. You may: a. request a review upon written application within 180 days of the claim denial; b. request, free of charge, copies of all documents, records and other information relevant to your claim; and • If this Plan is an ERISA plan, these ERISA provisions apply. However, your employer may issue a Summary Plan Description ("SPD"). If it does, and if there are any conflicts between the SPD and the EIS in regards to your ERISA rights, the SPD provisions will always control. FDL EIS Standard 412009 rev'd. C. submit written comments, documents, records and other information relating to your claim, without regard to whether such information was submitted or considered in the initial benefit determination. Dearborn National will make a decision no more than 45 days after we receive your appeal. The time for decision may be extended for one additional 45 day period provided that, prior to the extension, Dearborn National notifies you in writing that an extension is necessary due to special circumstances, identifies those circumstances and gives the date by which it expects to render its decision. If your claim is extended due to your failure to submit information necessary to decide your claim on appeal, the time for your decision shall be tolled from the date on which the notification of the extension is sent to you until the date we receive your response to the request. The written decision will include specific references to the Plan provisions on which the decision is based and any other notice(s), statement(s) or information required by applicable law. 2. Life Insurance Plans 4 a Dearborn National will give you a decision no more than 90 days after receipt of due proof of loss, except in ;special circumstances (such as the need to obtain further information), but in no case more than 180 days after the dueYproof of loss is received. The written decision will include specific reasons for the decision and specific references to the Plan provisions on which the decision is based. If the claim is denied, in whole or in part, the claimant will receive a written notice giving the following: the reason for the denial; the Policy provisions on which the denial is based?�b an explanation of what other information, if any,,gfay be needed to process they'Il im and why it is needed; and the steps that have to be followed to have the.claim reviewed. Any denied claim may be appealed to the Insurer for a full,and fair revidWjhe claimant may: a) request a review upon written application within 60 days of receipt of claim denial; b) upon request and free of charge, review pertinent d"' uinents, records and other information relevant to the claim and receive copies of samej nd, ' �F1Y C) submit issues, comments, records, and other,.information in writing. A decision will be made by the Insurer no more than 60 days after receipt of the request for review, except in special circumstances (such as,the need to obtain additional evidence), but in no case more than 120 days after the request for review is received. 4 e written decision will include specific reasons for the decision and specific references to the Plan provisions on which the decision is based. The decision will advise you of any other appeal rights you have under the Plan, as well as your right t&bring an action under Section 502(x) of ERISA. C. ERISV,,,NOTICE OF YOUR RIGHTS ,� r•• Asa participant' in the Plan you are entitled to certain rights and protections under the Employee Retirement Income Security Act of 1974 ("ERISA';). ERISA provides that all Plan participants shall be entitled to: Exaniine,� wttK6ut.cfi*e, at the Plan Administrators office and at other locations, such as work sites and union halls, all Plan documents, including insurance contracts, collective bargaining agreements and copies of all documents filed with the.U.S. Department of Labor, such as detailed annual reports and Plan descriptions. Obtain copies of all Plan documents and other Plan information upon written request to the Plan Administrator. The Plan Administrator may make a reasonable charge for the copies. Receive a summary of the Plan's annual financial report. The Plan Administrator is required to furnish each participant with a copy of this summary annual report. In addition to creating rights for the Plan participants, ERISA imposes duties upon the people who are responsible for the operation of the employee benefit Plan. The people who operate your Plan, called "fiduciaries" of the Plan, have a duty to do so prudently and in the interest of you and other Plan participants and beneficiaries. No one, including your employers, your union, or any other persons, may fire you or otherwise discriminate against you in any way to prevent you from obtaining a welfare benefit or exercising your rights under ERISA. If your claim for a welfare benefit is denied in whole or in part you must receive a written explanation of the reason for the (D * If this Plan is an ERISA plan, these ERISA provisions apply, However, your employer may issue a Summary Plan Description ("SPD"). If it does, and if there are any conflicts between the SPD and the EIS in regards to your ERISA rights, the SPD provisions will always control. FDL EIS Standard 412009 redd. denial. You have the right to have the Plan review and reconsider your claim. Under ERISA, there are steps you can take to enforce your rights. For instance, if you request materials from the plan and do not receive them within 30 days, you may file a suit in federal court. In such a case, the court may require the Plan Administrator to provide the materials and pay you up to $110 a day until you receive the materials, unless the materials were not sent because of reasons beyond the control of the Plan Administrator. If you have a claim for benefits which is denied or ignored, in whole or in part, you may file suit in a state or federal court. If it should happen that Plan fiduciaries misuse the Plan's money, or if you are discriminated against for asserting your rights, you may seek assistance from the U.S. Department of Labor, or you may file suit in federal court. The court will decide who should pay costs and legal fees. If you are successful the court may order the person you have sued to pay these costs and fees. If you lose, the court may order you to pay these costs and fees, for example, if it finds your claim is frivolous. If you have any questions about this statement or about your rights under ERISA, you should contact the nearest office of the Pension and Welfare Benefits Administration, United States Department of Labor, listed in your telephone directory or the Division of Technical Assistance and Inquiries, Employee Benefit Security Administration, United States Department of Labor, 200 Constitution Avenue, NW Washington DC 20210. D. PARTICIPANT'S RIGHTS This Plan shall not be deemed to constitute a contract between the Company and any participant or to be consideration or an inducement for the employment of any participant or employee. Nothing contained in this Plan shall be deemed to give any participant or employee the right to be retained in the service of the Company or to interfere with the right of the Company to discharge any participant or employee at any time regardless of the effect which such discharge shall have upon him or her as a participant of this Plan. * If this Plan is an ERISA plan, these ERISA provisions apply. However, your employer may issue a Summary Plan Description ("SPD"). If it does, and if there are any conflicts between the SPD and the EIS in regards to your ERISA rights, the SPD provisions will always control. FDL EIS Standard 4/2009 rev'd. Voluntary Long Term Disability Insurance Products and services marketed under the Dearborn National® brand and the star logo are underwritten and/or provided by Dearborn National® Life Insurance Company (Downers Grove, IL) in all states (excluding New York), the District of Columbia, the United States Virgin Islands, the British Virgin Islands, Guam and Puerto Rico. 12/20/2012 Dearborn National® Life Insurance Company P Y Group Certificate Dearborn National Life Insurance Company Chicago, Illinois Administrative Office: 1020 31st Street a Downers Grove, IL 60515 Having issued Group Policy No. SAMPLE TX -0001 (herein called the Policy or this Plan) to SAMPLE TEXAS (herein called the Policyholder) CERTIFIES that You are insured, provided that You qualify under the ELIGIBILITY AND EFFECTIVE DATES provision, become insured and remain insured in accordance with the terms of the Policy. Your insurance is subject to all the definitions, limitations and conditions of the Policy. It takes effect on the effective date stated in the ELIGIBILITY AND EFFECTIVE DATES provision. This certificate describes Your eligibility for benefits and the terms and provisions of the Policy. It replaces and cancels any other certificate previously issued to You under the Policy. If the terns and provisions of the Certificate of Coverage (issued to You) are different from the policy (issued to the Policyholder), the Policy will govern. Your coverage may be canceled or changed in whole or in part under the terms and provisions of the Policy. READ YOUR CERTIFICATE CAREFULLY Signed for Dearborn National Life Insurance Company ' M!"lij,�'7�tJ 16/X,M.._ oe&44, x4w - r Secretary President THE INSURANCE POLICY UNDER WHICH THIS CERTIFICATE IS ISSUED IS NOT A POLICY OF WORKERS' COMPENSATION INSURANCE. YOU SHOULD CONSULT YOUR EMPLOYER TO DETERMINE WHETHER YOUR EMPLOYER IS A SUBSCRIBER TO THE WORKERS' COMPENSATION SYSTEM. Group Voluntary Long Term Disability Certificate Non -Participating THIS IS NOT A WORKERS' COMPENSATION CERTIFICATE 2-LTDC-412 IMPORTANT NOTICE To obtain information or make a complaint: You may contact your (title) at (telephone number). You may call Dearborn National Life Insurance Company's toll-free telephone number for infor- mation or to make a complaint at: 1-800-348-4512 You may also write to Dearborn National Life Insurance Company at: 1020 31st Street, Downers Grove, IL 60515-5591 You may contact the Texas Department of Insurance to obtain information on companies, coverages, rights or complaints at: 1-800-252-3439 You may write the Texas Department of Insurance: P. O. Box 149104 In .tip Austin, TX 78714-9104 FAX #(512) 475-1771 Web: http://www.tdi.state.tx.us E-mail: ConsumerProtection@tdi.state.tx.us '}• PREMIUM OR CLAIM DISPUTES: Should you'���rf, have a dispute concerning your premium or about a claim, you should contact the company first. If the dispute is not resolved, you may contact the Texas - Department of Insurance. --=-6 1� Y ATTACH THIS NOTICE TO YOUR POLICY: This notice is for information only and does not become a part or condition of the attached document. "�vhl�llY�fY•w,, �•rfY� r 9-632-895 AVISO IMPORTANTE Para informacion o para someter una queja: Peude communicarse con su (title) al (telephone number). Usted puede Ilamar al numero de telefono gratis de Dearborn National Life Insurance Company para informacion o para someter una queja al: 1-800-3484512 Usted tambien escribir a Dearborn National Life Insurance Company al: 1020 31st Street, Downers Grove, IL 60515-5591 Puede comunicarse con el Departamento de Seguros de Texas para conseguir informacion acerca de companias, coberturas, derechos o quejas al: 1-800-252-3439 Puede escribir al Departamento de Seguros de Texas: P. O. Box 149104 Austin, TX 78714-9104 FAX #(512) 475-1771 Web: http:;' ,www.tdi.state.tx.us E-mail: ConsumerProtection@tdi.state.tx.us DISPUTAS SOBRE PRIMAS O RECLAMOS: Si tiene una disputa concemiente a su prima o a un reclamo, debe comunicarse con la compania primero. Si no se resuelve la disputa, puede entonces comunicarse con al Departamento de Seguros de Texas. UNA ESTE AVISO A SU POLIZA: Este aviso es solo para proposito de informacion y no se convierte en parte o condicion del documento adjunto. TABLE OF CONTENTS SCHEDULE OF BENEFITS ELIGIBILITYAND EFFECTIVE DATES LONG TERM DISABILITYBENEFITS EXCLUSIONS AND LIMITATIONS TERMINATION OF COVERAGE SUPPLEMENTAL BENEFITS AND SERVICES DAY CARE EXPENSE BENEFIT SURVIVOR INCOME BENEFIT WORKSITE MODIFICATION BENEFIT CLAIMSERVICES FILING A CLAIM UNIFORM PROVISIONS DEFINITIONS Note: All terms in Italics are listed and defined in the Definitions section or within the certificate itself. 2-LTDC-412 SCHEDULE OF BENEFITS Policyholder: SAMPLE TEXAS -Policy Number: SAMPLE TX -0001 Effective Date: January 1, 2013 Eligibility: The following are eligible: All active full-time Employees. A full-time employee is one who regularly works a minimum of 30 hours per week for the Policyholder. Part-time, seasonal and temporary employees of the Policyholder are not eligible. Waiting Period: If You are in a class eligible for insurance on or before the Policy Effective Date: First of the month following 30 Days of continuous, full-time active work If You enter a class eligible for insurance after the Policy Effective Date: First of the month following 30 Days of continuous full-time active work Elimination Period: 90 Days Rates Per $100 of Monthly Covered Payroll: Age Rate XX to XX $0.00 �k. LTD Monthly Benefit: 60% of Monthly Earnings to a Maximum Gross Monthly f•,,,,,,ffy. r� Benefit of $5,000.00 per month subject to reduction by ; deductible sources of income or Disability Earnin s Social Security Offset Method: w., Primary & Family Minimum Monthly Benefit: $100.00 or 10% of Your Gross LTD Monthly Benefit, whichever is greater Policyholder Contribution: 0% of premium 2-LTDC-412 Maximum Period Payable: Age on Date Disability Commences Maximum Period Payable Less than 60 To SSNRA* 65 years 60 60 months or to SSNRA*, years, 2 months 1939 65 whichever is greater 61 48 months or to SSNRA*, years, 6 months 1941 65 whichever is greater 62 42 months or to SSNRA*, 10 months 1943-1954 whichever is greater 63 36 months or to SSNRA*, years, 2 months 1956 66 whichever is greater 64 30 months or to SSNRA*, years, 6 months 1958 1 66 whichever is greater 65 24 months 10 months 66 21 months 67 years 67 18 months 68 15 months 69 or over 12 months * Social Security Normal Retirement Ages Based on the 1983 amendment to the Social Security Act, the following are normal retirement aees by date of birth. Year of Birth Social Security Normal Retirement Age 1937 or earlier 65 years 1938 65 years, 2 months 1939 65 years, 4 months 1940 65 years, 6 months 1941 65 years, 8 months 1942 65 years, 10 months 1943-1954 66 years 1955 66 years, 2 months 1956 66 years, 4 months 1957 66 years, 6 months 1958 1 66 years, 8 months 1959 66 years, 10 months 1960 or later 1 67 years 2 -LMC -412 0., OTHER FEATURES The following other features are included: • Waiver of Premium • Work Incentive Benefit • Rehabilitation Incentive Income • Recurrent Disability hen • FNILA Coverage Extension • Survivor Benefit • Day Care Benefit��r, • Worksite Modification Benefit { • Vocational Rehabilitation Service { • Social Security Assistance • Continuity of Coverage' THIS SCHEDULE OF BENEFITS CANCELS AND REPLACES ALL OTHER SCHEDULES PREVIOUSLY ISSUED TO YOU UNDER THE POLICY. IT OUTLINES THE POLICY FEATURES. THE FOLLOWING PAGES PROVIDE A COMPLETE DESCRIPTION OF THE PROVISIONS OF YOUR CERTIFICATE. 2-LTDC-412 7 ELIGIBILITY AND EFFECTIVE DATES Who is eligible for this insurance? The following people are eligible: All active full-time employees. The Waiting Period is shown in the Schedule of Benefits. 00001 When does Your Contributory Insurance become effective? Your Contributory coverage will become effective on the latest of the following dates, provided You are Actively at Work on that date: 1. If there is no Waiting Period, the date you are eligible for coverage, if You enroll for coverage on or before that date; 2. If You sign the Enrollment Form after the end of the Waiting Period, but within 31 days after that day, Your coverage will become effective on the first of the month that falls on or next follows the date You sign the Enrollment Form. 3. If You sign the Enrollment Form following this 31 -day period, You are considered a late applicant and must furnish Evidence Of Insurability satisfactory to Us before coverage can become effective. Coverage will become effective on the date We determine that the Evidence of Insurability is satisfactory and We provide written notice of approval. You must be Actively at Work for coverage under the Policy to become effective. If, because of Injury or Sickness, You are not Actively at Work on the date the insurance would otherwise take effect, it will take effect on the day You return to Active Work. Contributory means You pay all or a portion of the premium for this insurance coverage. Enrollment Form means the application You complete to apply for coverage under the Policy. 00003 When is Evidence of Insurability required? Evidence of Insurability is required if: 1. You area late applicant, which means You enroll for insurance more than 31 days after the date You are eligible for insurance; or 2. You voluntarily canceled Your insurance and are reapplying; or 3. You apply for coverage amounts in excess of the Guaranteed Issue Benefit Limit as shown in the Schedule of Benefits; or 4. You apply to increase Your coverage amount during an annual enrollment period; or You apply to increase Your coverage amount during the Policy year. You may obtain an Evidence of Insurability Form from the Policyholder, 00005 Changes to Your coverage A change in Your coverage may occur if L You enroll for a different coverage option; or 2. There is a Policy change. If You are eligible for additional coverage due to a Policy change, the additional coverage will be effective on the date the Policy change is effective, as requested by the Policyholder and agreed upon by Us. 2-LTDC-412 Additional coverage for reasons other than a Policy change will be effective the first of the month following the later of: 1. The date You enroll for the additional coverage; 2. The date We approve Your coverage if Evidence of Insurability is required. In order for Your additional coverage to begin, You must be in .fictively at Work. Additional coverage is subject to payment of premium. Additional coverage includes increases in Your Monthly Benefit amount and other benefit provisions that may impact when or for how long benefits are payable. Additional coverage is subject to the Pre -Existing Condition Exclusion. ,/ 11, hY`" Any decrease in coverage will take effect immediately. If the Date of Disability was prior to the decrease, any claim resulting from that Disability will be paid at the amount in effect at the time the Disability was incurred. 00006 Evidence of Insurability means a statement of Your medical history which We will use to determine if You are approved for coverage. Evidence of Insurability will be provided at Our expense. Evidence of Insurability Form means a form provided or approved by Us on which you provide a statement of Your medical history. 00007 Who pays for Your coverage? 'Sfy You pay the entire cost of Your coverage. a ,r 00008 Do You have to pay premium while You receive benefits? We will waive premium for You during a period of Disability for which the LTD Monthly Benefit is payable under the Policy. Premium payment is required during Your Elimination Period or any other period when the LTD Monthly Benefit is not payable under the Policy. } .O�1 "0" 00009 , :fi'. .err .ea What happens if We are replacing an existing Policy? Effect on Actively at Work requirement If You were insured under the Prior Policy on the day before the Policy Effective Date, You may be covered by the Policy even if You do not satisfy the .fictively at Work requirement as stated in the When does insurance become effective? provision and You would otherwise be eligible to become insured under the Policy, We will provide limited coverage under this Plan. Coverage under this provision will begin on the Policy effective date and will continue until the earliest of: 1. The end of the month following the date You become Actively at Work; 2. The end of any period of continuance or extension provided under the Prior Policy; or 3. The date coverage would otherwise end, according to the provisions of the Policy. Your coverage under this provision is subject to payment of premium. Effect on Benefits If You do not satisfy the Actively at Work requirement, You may still be eligible for benefits under the Policy as follows: The benefits payable under the Policy will be the benefits which would have been payable under the terms of the Prior Policy if it had remained in force; and the benefits payable under the Policy will be reduced by any benefits payable under the Prior Policy for the same Disability for which the prior carrier is liable. 2-LTDC-412 The Prior Policy is the group disability insurance policy issued to the Policyholder by ABC Carrier whose coverage terminated immediately prior to the Policy Effective Date. Effect on Pre-existing Conditions If You have a Disability due to a Pre -Existing Condition after the Prior Policy has been replaced by this Plan, Benefits may be payable if. 1. You were insured under the Prior Policy at the time the Policyholder changed coverage from the Prior Policy to the Policy; and 2. You have been continuously insured under this Plan from the effective date of this Plan until the date Your Disability began. In order for benefits to be paid, You must satisfy the Pre -Existing Condition exclusion under: 1. this Plan; or 2. the Prior Policy, if benefits would have been paid had the Prior Policy remained in force. If You satisfy the Pre -Existing Condition exclusion of this Plan, We will determine Your payments according to this Plan's provision. If You do not satisfy the Pre -Existing Condition exclusion of this Plan, but You do satisfy the Pre -Existing Condition provision under the Prior Policy: 1. Your Monthly Benefit will be the lesser of: a. The Monthly Benefit that would have been payable under the terms of the Prior Policy if it had remained in force; or b. The Monthly Benefit under this Plan. 2. Benefits will end on the earlier of: a. The date benefits end under the Policy, as described under the Maximum Period Payable; or b. The date benefits would have ended under the Prior Policy if it had remained in force. If You do not satisfy the Pre -Existing Condition exclusion under either this Plan or the Prior Policy, We will not make any payments. We will require proof that You were insured under the Prior Policy. 00010 2-LTDC-412 10 e I LONG TERM DISABILITY BENEFITS How do We define Total Disability? Total Disability or Totally Disabled means that during the first 24 consecutive months of benefit payments due to Sickness or Injury; 1. You are continuously unable to perform the Material and Substantial Duties of Your Regular Occupation, and 2. Your Disability Earnings, if any, are less than 20% of Your pre -disability Indexed Monthly Earnings. 00011 After the LTD Monthly Benefit has been paid for 24 consecutive months, Total Disability or Totally Disabled means that due to Injury or Sickness: r 1. You are continuously unable to engage in any Gainful Occupation, and tee, 2. Your Disability Earnings, if any, are less than 20% of Your pre -disability Indexed Monthly Earnings. 00013 V How do We define Partial Disability? Partial Disability or Partially Disabled means that: rr . 1. During the Elimination Period You are unable to perform all of the Material and Substantial Duties of Your Regular Occupation. NM& ,3/ 2. During the first 24 consecutive months of benefit payments, due to Injury or Sickness You are unable to perform all of the Material and Substantial Duties of Your Regular Occupation, and Your Disability Earnings, if any, are at least 20% but less than or equal to 130% of Your pre -disability Indexed Monthly Earnings. 3. After the LTD Monthly Benefit has been paid for 24 consecutive months Partial Disability or Partially Disabled means that due to Injury or Sickness, You are unable to engage in any Gainful Occupation; and Your Disability Earnings, if any, are at least 20% but less than or equal to 60% of Your pre -disability Indexed Monthly Earnings. 00014 Loss of Professional License or Certification If You require a professional license or certification for Your occupation, loss of that professional license or certification does not in and of itself constitute Disability. 00017 What is the Elimination Period and how is it satisfied? The Elimination Period is a period of continuous Disability which must be satisfied before You are eligible to receive benefits from Us. It is shown in the Schedule of Benefits and begins on Your Date of Disability. If You temporarily recover and return to work, We will treat Your Disability as continuous if You return to work for a period of less than or equal to one-half the Elimination Period rounded up to the next whole number, not to exceed 90 days. The days that You are not Disabled will not count toward Your Elimination Period. If You return to work for a period greater than one-half the Elimination Period, or 90 days, whichever is less, and become Disabled again, You will have to begin a new Elimination Period. 00018 Can You satisfy Your Elimination Period if You are working? You can satisfy Your Elimination Period if You are working, provided You meet the definition of Disability. 00019 2-LTDC-412 What Disability Benefit are You eligible to receive? If You are Disabled, You are eligible to receive one of the following at any given time: 1. an LTD Monthly Benefit; 2. a Work Incentive Benefit; or 3. Rehabilitation Incentive Income. While You are Disabled, You might be eligible to receive one or the other of the above, but You cannot receive more than one of these benefits at the same time. 00020 What is Your LTD Monthly Benefit and how is it calculated? Your LTD Monthly Benefit will be based on Your Monthly Earnings as reported to Us by the Policyholder and for which premium has been paid. An LTD Monthly Benefit will be payable after the end of the Elimination Period if You are Disabled. We will calculate Your Gross LTD Monthly Benefit amount as follows: 1. Multiply Your Monthly Earnings by 60%. 2. The maximum Gross LTD Monthly Benefit is $5,000.00. 3. Compare the answers from Item 1 and Item 2. The lesser of these two amounts is Your Gross LTD Monthly Benefit. 4. Subtract the Deductible Sources of Income from Your Gross LTD Monthly Benefit. The resulting figure is Your Net LTD Monthly Benefit. 5. Compare the answer from item 3 and 4. The lesser amount figured in item 5 is Your Monthly Benefit. If a benefit is payable for less than one month, it will be paid on the basis of 1/30s' of the Net LTD Monthly Benefit for each day of Disability. 00021-A Monthly Earnings means Your gross monthly income from Your Employer in effect just prior to Your Date of Disability. It includes Your total income before taxes and any deductions made for pre-tax contributions to a qualified deferred compensation plan, Section 125 plan, or flexible spending account. It includes income actually received from commissions, but does not include bonuses, overtime pay, or any other extra compensation, or income received from sources other than Your Employer. Commissions will be averaged for the lesser of: a. the 12 full calendar month period of Your employment with Your Employer just prior to the date Disability begins; or b. the period of actual employment with Your Employer. Earnings, whether for a full year or partial year, will be converted to a monthly amount for the purpose of calculating the Monthly Benefit, 00022 What are the Deductible Sources of Income? 1. Disability benefits paid, payable, or for which You are eligible under: a. The Social Security Act, including any amounts for which Your dependents may qualify because of Your Disability; b. Any Workers' Compensation or Occupational Disease Act or Law, or any other law which provides compensation for an occupational Injury or Sickness; 2-LTDC-412 12 ` c. Occupational accident coverage provided by or through the Policyholder; d. Any Statutory Disability Benefit Law; e. The Railroad Retirement Act; f. The Canada Pension Plan, Quebec Pension Plan, or any other similar disability or pension plan or act; g. The Canada Old Age Security Act; h. Any Public Employee Retirement System Plan, or any State Teachers' Retirement System Plan, or any plan provided as an alternative to any of the above acts or plans; i. Title 46, United States Code Section 688 et seq (The Jones Act);, rn j. Title 33, United States Code Section 901 et seq (Longshore and Harbor Workers' Compensation Act). 2. Disability benefits paid, payable, or for which You are eligible under: a. Any group insurance plan provided by or through the Policyholder, and {; b. Any sick leave or salary continuance plan provided by or through the Policyholder which causes the Net Monthly Benefit, plus Deductible Sources of Income and any salary continuation to exceed 100% of Your pre -disability Indexed Monthly Earnings. The amount in excess of 100% of Your pre -disability Indexed Monthly Earnings will be used to reduce Your Net Monthly Benefit. rf 3. Retirement benefits paid under the Social Security Act including any amounts for which Your dependents may qualify because of Your retirement; vl 4. Retirement and Disability benefits paid under a Retirement Plan provided by the Policyholder except for amounts attributable to Your contributions; 5. Retirement and Disability retirement benefits paid under any Public Employee Retirement System Plan, or any State Teachers' Retirement System Plan, or any plan provided as an alternative to any of the above acts or plans; y 6. Disability benefits paid under any No Fault Auto Motor Vehicle coverage; 6. Amounts received from a third party after subtracting attorney's fees by judgment, settlement or otherwise, not to exceed 50% of the net settlement. Proration of Lump Sum Awards If any Deductible Source of Income described above is paid in a single sum through compromise settlement or as an advance on future liability, We will determine the amount of reduction to Your Gross LTD Monthly Benefit as follows: 1. We will divide the amount; paid by the number of months for which the settlement or advance was provided; or 2. If the number of months for which the settlement or advance is made is not known, We will divide the amount of the settlement or advance by the expected remaining number of months for which We will provide benefits for Your Disability based on the Proof of Disability which We have, subject to a maximum of 60 months. What other sources of income are not deductible? We will not reduce Your Gross LTD Monthly Benefit by any of the following: 1. deferred compensation arrangements such as401(k), 403(b) or 457 plans; 2. credit disability insurance; 3. pension plans for partners; 4. military pension and disability income plans; 5. franchise disability income plans; 6. individual disability income plans; 7. a Retirement Plan from another Policyholder; 2-LTDC-412 13 8. profit sharing plans; 9. thrift or savings plans; 10. individual retirement account (IRA); 11. tax sheltered annuity (TSA); 12. stock ownership plan. 00023 Can You work and still receive benefits? While Disabled, You may qualify for the Work Incentive Benefit or Rehabilitation Incentive Income, but not both. Work Incentive Benefit A Work Incentive Benefit will be payable if You are Disabled and Gainfully Employed after the end of the Elimination Period, or after a period during which You received LTD Monthly Benefits. The Work Incentive Benefit will be calculated during the first 12 months of disability payments while You are Gainfully Employed as follows: 1. We will add together the Gross Monthly Benefit and Disability Earnings and compare to pre -disability Indexed Monthly Earnings. 2. If the total amount in Item 1 exceeds 100% of pre -disability Indexed Monthly Earnings, the Work Incentive Benefit will be equal to the LTD Monthly Benefit reduced by the amount of the excess. 3. If the total amount in Item l does not exceed 100% of pre -disability Indexed Monthly Earnings, the Work Incentive Benefit will be equal to the LTD Monthly Benefit amount. After the first 12 months of disability payments while You are Disabled and Gainfully Employed, the Work Incentive Benefit will be equal to the Net Monthly Benefit multiplied by the Adjusted Loss of Salary Ratio. The Work Incentive Benefit will cease on the earliest of the following: 1. the date You are no longer Disabled, • or 2. the end of the Maximum Period Payable. Adjusted Loss of Salary Ratio is equal to: A divided by B A Your pre -disability Indexed Monthly Earnings minus Your Disability Earnings B— Your pre -disability Indexed Monthly Earnings Rehabilitation Incentive Income Rehabilitation Incentive Income will be payable after the end of the Elimination Period, or after a period during which You received LTD Monthly Benefits. This benefit is payable if You are Disabled and Gainfully Employed in an occupation that has been approved as part of a Rehabilitation Plan. Rehabilitation Incentive Income will be calculated during the first 12 months of Gainful Employment as follows: 1. If Disability Earnings exceed I00% of pre -disability Indexed Monthly Earnings, Rehabilitation Incentive Income will be equal to the Net Monthly Benefit reduced by the amount of the excess. 2. If Disability Earnings do not exceed 100% of pre -disability Indexed Monthly Earnings, Rehabilitation Incentive Income will be equal to the Monthly Benefit. After the first 12 months of Gainful Employment, Rehabilitation Incentive Income will be equal to the LTD Monthly Benefit multiplied by the adjusted Loss of Salary Ratio. Rehabilitation Incentive Income will cease on the earliest of the following: 1. as stated in the Rehabilitation Plan; 2. the date You fail to comply with the requirements of the Rehabilitation Plan; 2-LTDC-412 14 N 3. the date You are no longer Gainfully Employed; or 4. the end of the Maximum Period Payable. Adjusted Loss of Salary Ratio is equal to: A divided by B A= Your pre -disability Indexed Monthly Earnings minus Your Disability Earnings B- Your pre -disability Indexed Monthly Earnings 00014-A What is the minimum Net LTD Monthly Benefit payable under the Policy? The Net LTD Monthly Benefit payable for Disability will not be less than $100.00 or 10% of Your Gross LTD Monthly Benefit, whichever is greater. The minimum Net LTD Monthly Benefit does not apply if You are Gainfully Employed. 00025 What happens if Your Deductible Sources of Income increase? f� � . The Net LTD Monthly Benefit will not be further reduced for subsequent cost -of -living increases which are paid, payable, or for which You or Your dependents are eligible under any Deductible Source of Income'.shown above. 00026+. r iY'N�I !J LAY J /•� How long will You receive benefits under the Policy? %Kx �f+r We will send You a payment for each month of Disability,5up toe `Maximum'Reriod Payable as shown in the Schedule of Benefits. Payment of benefits is also subject,to=Y.-benefit duration limitation pertaining to Your Disability. 00027<r p rr'P, °`•r��P What happens if Your Disability recurs? If Disability for which benefits were payable ends but recurs due to the same or related causes less than 6 months after the end of a prior Disability, it will be considered a resumption of the prior Disability. Such recurrent Disability shall be subject to the provisions of the Policy that were in effect at the time the prior Disability began. Disability which recurs more than 6 months after the end of a prior Disability is subject to: 1. a new Elimination Period;;m,. 2. a new Maximum Period Payable; and 3. the other provisions of the Policy that are in effect on the date the Disability recurs. Disability must recur while Your coverage is in force under the Policy. 00018 2-LTDC-412 15 EXCLUSIONS AND LIMITATIONS What are the exclusions and limitations under the Policy? The Policy does not cover any loss or Disability caused by, resulting from, arising out of or substantially contributed, directly or indirectly, to by any one or more of the following: • a Pre -Existing Condition; • commission of, participation in, or an attempt to commit an assault or felony; • Intentionally self-inflicted injuries; • attempted suicide, regardless of mental capacity; • participation in a war, declared or undeclared, or any act of war; • active military duty; • active Participation in a Riot; The Policy has limitations on: • Mental Disorder - Disability beyond 12 months after the Elimination Period if it is due to a Mental Disorder of any type. Confinement in a Hospital or institution licensed to provide care and treatment for mental illness will not be counted as part of the 12 -month limit. • Substance Abuse A Substance Abuse (drug or alcohol) related Disability unless You are participating in a Substance Abuse treatment program approved by the State where the treatment program is provided. The cost of the treatment program must be borne by You or another group plan of the Policyholder (such as a group health plan or Employee Assistance Program) if one is available and covers this type of treatment. Except as specifically stated above, in no event will LTD Monthly Benefits for a Mental Disorder or Substance Abuse be paid beyond the earliest of the date: 1. 12 LTD Monthly Benefit payments have been made; or 2. the Maximum Period Payable is reached; or 3. You refuse to participate in an appropriate, available treatment program, or You leave the treatment program prior to completion; or 4. You are no longer following the requirements of Your treatment plan under the program; or 5. You complete the initial treatment plan, exclusive of any aftercare or follow-up services. • Special Conditions - Disability beyond 12 months after the Elimination Period if it is due to a Special Conditions related Disability. Confinement in a Hospital or institution licensed to provide care and treatment of Special Conditions will not count toward the 12 month limit. The lifetime cumulative Maximum Period Payable for all disabilities due to a Mental Disorder, Substance Abuse, and Special Conditions is 12 months. Only 12 months of benefits will be paid for any combination of such disabilities even if the disabilities: 1. are not continuous; and/or 2. are not related. 2-LTDC-412 16 C Furthermore: • Benefits are not payable for any period during which You are confined to a penal or correctional institution if the period of confinement exceeds 30 days. • Benefits are not payable during the first 24 months of LTD Monthly Benefits, when You are able to return to work in Your Regular Occupation on a part-time basis but You do not. • Benefits are not payable after 24 months of LTD Monthly Benefits, when You are able to work in any Gainful Occupation on a part-time basis but You do not. 00024 2-LTDC-412 17 TERMINATION OF OVERAGE When will Your insurance terminate? Your coverage will terminate on the earliest of the following dates: 1. the date on which the Policy is terminated; 2. the date You stop making any required contribution toward payment of premiums; 3. the date on which the Employer's participation under the Policy is terminated; or 4. the date You: a. are no longer a member of a class eligible for this insurance, b. request termination of coverage under the Policy, c. are retired or pensioned, or d. cease work because of a leave of absence, furlough, layoff, or temporary work stoppage due to a labor dispute, unless We and the Policyholder have agreed in writing in advance of the leave to continue insurance during such period. Termination will not affect a covered loss which began while the coverage was in force. 00030 Will coverage be continued if You are eligible for leave under FMLA? In the event You are eligible for and the Policyholder approves a leave under the Family and Medical Leave Act of 1993 (FMLA), or any applicable state family and medical leave law (State FML), provided the required premium continues to be paid, Your insurance will continue for a period of up to the later of: 1. the leave period permitted by the federal Family and Medical Leave Act of 1993 and any amendments; or 2. the leave period permitted by applicable state law. While granted a Family or Medical Leave of Absence: 1. The Policyholder must remit the required premium according to the terms of the Policy; and 2, coverage will terminate if You do not return to work as scheduled according to the terms of Your agreement with the Policyholder. 00031 Will coverage be continued !f You are eligible for leave under USERRA? If You are on a leave of absence for active military service as described under the Uniformed Services Employment and Reemployment Rights Act of 1994 (USERRA) and applicable state law, Your coverage may be continued until the end of the later of: 1. the length of time the coverage may be continued under the Certificate for an FMLA or State FML leave of absence; or 2. the length of time the coverage may be continued under the Certificate of Coverage for a leave of absence other than an FMLA or State FML leave of absence. 00032 HIM coverage be continued for other leaves of absence? If You are on an approved leave of absence other than an FMLA or State FML leave of absence, and if premium is paid, Your coverage will be continued through the end of the month that immediately follows the month in which Your leave of absence begins. 2-LTDC-412 19 e If the Policyholder has approved more than one type of leave of absence for You during any one period that You are not Actively at Work We will consider such leaves to be concurrent for the purpose of determining how long Your coverage may continue under the Policy. If Your coverage is not continued during an FU LA or State FML leave of absence, and You become Actively at Work immediately following the end of Your FMLA or State FML leave of absence, Your coverage will be reinstated. We will not apply a new Waiting Period, require Evidence (f Insurability, or apply a new Pre-existing Condition limitation. If Your coverage is not continued during a leave of absence for active military service, and You return to active employment, Your coverage may be reinstated in accordance with USERRA and applicable state law. In no event will Your coverage under the policy be continued beyond the date Your coverage would otherwise end according to the terms of the When will Your insurance terminate? provision. 00033 1119°,_ 2-LTDC-412 19 0 DAY CARE EXPENSE BENEFIT Are Day Care Expense Benefits available while You are Disabled? While Disabled and receiving Rehabilitation Incentive Income, You will be reimbursed for Day Care Expenses for each Eligible Child. You must supply satisfactory proof to Us that You incurred such charges. Day Care Expenses mean monthly expenses, up to $350.00 per child per month, to a maximum total benefit of $1,000.00 per month, charged by a licensed day care provider who is not a member of Your immediate family or living in Your residence. Eligible Child means Your Dependent Child under age 13 who lives with You. Dependent Child(ren) means any unmarried child of Yours, whether natural, step, foster or adopted, who is primarily dependent on You for financial support and maintenance. The Day Care Expense Benefit payments will end the earliest of the following to occur: 1. the date You are no longer incurring Dory Care Expenses for your Eligible Child; 2. the date You are no longer receiving Rehabilitation Incentive Income; 3. after 12 monthly Day Care Expense Benefit payments have been made for each Eligible Child 00034 LN 2-LTDC-412 20 SURVIVOR INCOME BENEFIT What happens if You die while receiving benefits? We will pay a Survivor Income Benefit to an Eligible Survivor when proof is received that You died: 1. After the Disability had continued for 6 or more consecutive months; and 2. While receiving an LTD Monthly Benefit The Survivor Income Benefit shall be payable on a lump sum basis immediately after We receive written proof of Your death. The benefit will be equal to 3 times Your Last Monthly Benefit. The benefit shall accrue from Your date of death. Eligible Survivor means Your Spouse, if living, or if Your Spouse dies before the final monthly benefit is paid, then Your children who are under age 23. If payment becomes due to Your children, payment will be made to: 1. the children; or 2. a person named by Us to receive payments on the children's behalf. This payment will be valid and effective against all claims by others representing or claiming to represent the children. Last Monthly Benefit means the Monthly Benefit paid to You immediately prior to Your death, but not including any reductions for Deductible Sources of Income. If there is no Eligible Survivor, We will pay the Survivor Income Benefit to Your estate. 00036 2-LTDC-412 21 WORKSITE MODIFICATION BENEFIT C) What is the Worksite Modification Benefit? We will assist You and the Policyholder in identifying modifications We agree are likely to help You remain at work or return to work. This agreement will be in writing and must be signed by You, the Policyholder and Us. When this occurs, We will reimburse the Policyholder for the cost of the modification, up to the greater of: 1. $1,500.00; or 2. 2 times Your Last Monthly Benefit. We will reimburse the Policyholder upon completion of the following: 1. agreed upon modifications made on Your behalf are completed; 2. written proof of expenses incurred by Your Policyholder have been provided to Us; and 3. You have returned to work and are an Actively at Work Employee. Last Monthly Benefit means the monthly benefit paid to You immediately prior to Your request for benefits under the Worksite Modification Benefit provision, but not including any reductions for Deductible Sources of Income. 00044 2-LTDC-412 22 6M CLAIM SERVICES What other services are available to You while You are Disabled? If You are Disabled and eligible to receive Disability benefits under the Policy, We will evaluate You for eligibility to receive any of the following. We will make the final determination for any of the following benefits or services. Vocational Rehabilitation Service Rehabilitation services are available when We determine that these services are reasonably required to assist in returning You to Gainful Employment, Vocational rehabilitation services might include but are not limited to one or more of the following: 1. job modification; 2. job retraining; 3. job placement; 4. other activities. C V4, ;`khy� Eligibility for vocational rehabilitation services is based upon Your education, training, work experience and physical and/or mental capacity. To be considered for rehabilitation services: �r 1. Your Disability must prevent You from performing Your Regular Occupation; 2. You must have the physical and/or mental capacities necessary for successful completion of a rehabilitation program, and 3. there must be a reasonable expectation that rehabilitation services will help You return to Gainful Employment. Social Security Disability Assistance, When necessary, We will provide an advocate for You in applying for and securing Social Security Disability awards. When We determine that Social Security Assistance is appropriate for You, it is provided at no additional cost to You. 00047 r�� S;Gj;, 2-LTDC-412 21 FILING A CLAIM 0 What are the Claim Filing Requirements? Initial Notice of Claim We ask that You notify Us of Your claim as soon as possible, so that We may make a timely decision on Your claim. The Policyholder can assist You with the appropriate telephone number and address of Our Claim Department. You must send Us written notice of Your Disability within 30 days of the Date of Disability, or as soon as reasonably possible. Notice may be sent to Our Claim Department at the address shown on the claim form or given to Our Agent. Written Proof of Loss Within I5 days of Our being notified in writing of Your claim, We will supply You with the necessary claim forms. The claim form is to be completed and signed by You, the Policyholder and Your Doctor. If You do not receive the appropriate claim forms within 15 days, then You will be considered to have met the requirements for written proof of loss if We receive written proof, which describes the occurrence, extent and nature of loss as stated in the Proof of Disability provision. Time Limit for Filing Your Claim You must furnish Us with written proof of loss within 91 days after the end of Your Elimination Period. The length of the Elimination Period is shown in the Schedule of Benefits. If it is not possible to give Us written proof within 91 days, the claim is not affected if the proof is given as soon as possible. However, unless You are legally incapacitated, written proof of loss must be given no later than 1 year after the time proof is otherwise due. No benefits are payable for claims submitted more than i year after the time proof is due. However, You can request that benefits be paid for late claims if You can show that: 1. It was not reasonably possible to give written proof during the 1 year period, and 2. Proof of loss satisfactory to Us was given as soon as was reasonably possible. Proof of Disability The following items, supplied at Your expense, must be a part of Your proof of loss. Failure to provide complete proof of loss may delay, suspend or terminate Your benefits. 1. The date Your Disability began; 2. The cause of Your Disability; 3. The prognosis of Your Disability; 4. Proof that You are receiving Appropriate and Regular Care for Your condition from a Doctor, who is someone other than You or a member of Your immediate family, whose specialty or expertise is the most appropriate for Your disabling condition(s) according to Generally Accepted Medical Practice. 5. Objective medical findings which support Your Disability. Objective medical findings include but are not limited to tests, procedures, or clinical examinations standardly accepted in the practice of medicine, for Your disabling condition(s). 6. The extent of Your Disability, including restrictions and limitations which are preventing You from performing Your Regular Occupation. 7. Appropriate documentation of Your Monthly Earnings. If applicable, regular monthly documentation of Your Disability Earnings. S. If You were contributing to the premium cost, the Policyholder must supply proof of Your appropriate payroll deductions. 2-LTDC-412 24 9. The name and address of any Hospital or Health Care Facility where You have been treated for Your Disability. 10. If applicable, proof of incurred costs covered under other benefit provisions in the Policy. Continuing Proof of Disability You may be asked to submit proof that You continue to be Disabled and are continuing to receive Appropriate and Regular Care of a Doctor. Requests of this nature will only be made as often as reasonably necessary, but not more frequently than once every 3 months. If required, this will be at Your expense and must be received within 45 days of Our request. Failure to comply with such a request may delay, suspend or terminate Your benefits. Examination At Our expense, We have the right to have You examined as often as reasonably necessary while the claim continues. Failure to comply with this examination may result in denial, suspension or termination of benefits, unless We agree You have a valid and acceptable reason for not complying. Authorization and Documentation You will be asked to supply t f { 1. You will be required to provide signed authorization for Us to obtain and release all reasonably necessary medical, financial or other non-medical information in support of Your Disability claim. Failure to submit this information may deny, suspend or terminate Your benefits. 2. You will be required to supply proof that You have applied for other Deductible Sources of Income such as Workers' Compensation or Social Security Disability benefits, when applicable. 3. You will be required to notify Us when You receive or are awarded other Deductible Sources of Income. You must tell Us the nature of the Deductible Source of Income, the amount received, the period to which the benefit applies, and the duration of the benefit if it is being paid in installments. 00048 -TX `firry'r., Time of Payment of Claim As soon as We have all necessary substantiating documentation for Your Disability claim, We will pay Your benefit on a monthly basis, so long as You continue to qualify for it. We will pay benefits to You unless otherwise indicated. If You die while Your claim is open, any due and unpaid Disability benefit will be paid, at Our option, to the surviving person or persons in the first of the following classes of successive preference beneficiaries: Your: 1) Spouse; 2) children including legally adopted children; 3) parents; or 4) Your estate.„. If any benefit is payable to an estate, a minor or a person not competent to give a valid release, We may pay up to $1,000 to any relative or beneficiary of Yours whom We deem to be entitled to this amount. We will be discharged to the extent of such payment made by Us in good faith. 00049 !Zr” Can You assign Your benefits? Your benefits are not assignable, which means that You may not transfer Your benefits to anyone else. What will happen if a claim is overpaid? A claim overpayment can occur when You receive a retroactive payment from a Deductible Source of Income when We inadvertently make an error in the calculation of Your claim; or if fraud occurs. The overpayment amount equals the amount We paid in excess of the amount We should have paid under the Policy. We have the right to recover from You any amount that is an overpayment of benefits under the Policy. You must refund to us the overpaid amount. We may also, without forfeiting our right to collect an overpayment through any means legally available to Us, recover all or any portion of an overpayment by reducing or withholding future benefit payments, including the Minimum Monthly Benefit. In an overpayment situation, We will determine the method by which the repayment is made. You will be required to sign an agreement with Us which details the source of the overpayment, the total amount We will recover and the 2-LTDC-412 25 method of recovery. If LTD Monthly Benefits are suspended while recovery of the overpayment is being made, suspension will also apply to the minimum LTD Monthly Benefits payable under the Policy. 0 Subrogation —Right of Reimbursement When any claim payment is made, We reserve any and all rights to subrogation and/or reimbursement to the fullest extent allowed by statute and customary practice. Any party to this contract shall not perform any act that will prejudice such rights without prior agreement with Us. We will bear any expenses associated with Our pursuit of subrogation or recovery. 00050 O 2-LTDC412 26 .A—� UNIFORM PROVISIONS Entire Contrad; Changes The Policy, the Policyholder's application, the employee's certificate of coverage, and Your application, if any, and any other attached papers, form the entire contract between the parties. Coverage under the Policy can be amended by mutual consent between the Policyholder and Us. No change in the Policy is valid unless approved in writing by one of Our officers. No agent has the right to change the Policy or W waive any of its provisions. Statements on the Application All In the absence of fraud, all statements made in any signed application are considered representations and not warranties (absolute guarantees). No representation by: 1. the Policyholder in applying for the Policy will make it void unless the representation is contained in the signed application; or 2. any Employee in applying for insurance under the Policy will be used in defense to a claim under the Policy unless it is contained in a written application signed by the Insured and a copy of such application is or has been given to him or to his personal representative. Legal Actions, Unless otherwise provided by federal law, no legal action of any kind may be filed against Us: 1. until 60 days after proof of claim has been given; or "W, 2. more than 3 years after proof of Disability must be filed, unless the law in the state where You live allows a longer period of time. ., Clerical Error Clerical error or omission by Us to the Policyholder will not: /,y. 1. Prevent You from receiving coverage, if You are entitled to coverage under the terms of the Policy; or 2. Cause coverage to begin or coverage to continue for You when the coverage would not otherwise be effective. If the Policyholder gives Us information about You that is incorrect, We will: 1. Use the facts to decidewhether You have coverage under the Policy and in what amounts; and 4 2. Make a fair adjustment of the premium. Misstatement of Age If Your age has been misstated, an equitable adjustment will be made in the premium. If the amount of the benefit is dependent upon Your age, as shown in the Benefit Duration Schedule, the amount of the benefit will be the amount You would have been entitled to if Your correct age were known. Note: A refund of premium will not be made for a period more than twelve months before the date the Company is advised of the error. Incontestability The validity of the Policy shall not be contested, except for non-payment of premiums, after it has been in force for two years from the date of issue. The validity of the Policy shall not be contested on the basis of a statement made relating to insurability by any person covered under the Policy after such insurance has been in force for two years during such person's lifetime, and shall not be contested unless the statement is contained in a written instrument signed by the person making such statement. Conformity with State Statutes and Regulations If any provision of the Policy conflicts with the statutes and regulations of the state in which the Policy was issued or delivered, it is automatically changed to meet the minimum requirements of the statute. 2-LTDC-412 27 Workers' Compensation or State Disability Insurance 0 The Policy is not in place of, and does not affect the requirements for coverage by any workers' compensation or state disability insurance. Agency Neither the Policyholder, any employer, any associated company, nor any administrator appointed by the foregoing is Our agent. General Provisions We have the right to inspect all of the Policyholder's records on the Policy at any reasonable time. This right will extend until: L 2 years after termination of the Policy; or 2. all claims under the Policy have been settled, whichever is later. The Policy is in the Policyholder's possession and may be inspected by You at any time during normal business hours at the Policyholder's office. 0005! -TX l� 2-LTDC-412 29 DEFINITIONS The following are key words and phrases used in this certificate. When these words and phrases, or forms of them, are used, they are capitalized and italicized in the text. As You read this certificate, refer back to these definitions. Accident or Accidental means a sudden, unexpected event that was not reasonably foreseeable. 00052 Actively at Work or Active Work means that You must be: I . working for the Policyholder on a full-time active basis; or ,0 2. working at least the minimum number of hours shown in the Schedule of Benefits: and either: a. working at the Policyholder's usual place of business; or���, l� v b. working at a location to which the Policyholder's business requires You to travel, PF S 3. a legal citizen or resident of the United States of America;`„i t�. 4. are paid regular earnings by the Policyholder, and 5. not a temporary or seasonal Employee. You will be considered Actively at Work if You were actually at work on the day immediately preceding: 1. a weekend (except for one or both of these days if they are scheduled days of work); 2. holidays (except when such holiday is a scheduled work day); 3.aid vacations; P 4. any non-scheduled work day; hf�^ 5. excused leave of absence (except medical leave and lay -oft); and ' 6. emergency leave of absence (except emergency medical leave). 00053 Appropriate and Regular Care means that You are regularly visiting a Doctor as frequently as medically required to meet Your basic health needs. The effect of the care should be of demonstrable medical value for Your disabling condition(s) to effectively attain and/or maintain maximum medical improvement. 00055 r f,: Date of Disability is the date We determine that You are Disabled. 00057 Disability or Disabled means that You satisfy the definition of either Total Disability or Partial Disability. 00058 Disability Earnings is the wage or salary You earn from Gainful Employment after a Disability begins. It includes any earnings You could receive if You were working to Your Maximum Capacity. Any lump sum payment will be prorated, based on the time over which it accrued or the period for which it was paid. If Your Disability Earnings routinely fluctuate widely from month to month, We may average Your Disability Earnings over the most recent three months to determine if Your claim should continue. If We average Your Disability Earnings, We will not terminate Your claim unless the average of Your Disability Earnings from the last three months exceeds 800/6 of Your Indexed Monthly Earnings. 00054 2-LTDC- 412 29 Domestic Partner means an adult of the same or opposite gender who has an emotional, physical and financial relationship to You, similar to that of a Spouse, as evidenced by the following: 1. You and Your Domestic Partner share financial responsibility for a joint household and intend to continue an exclusive relationship indefinitely; 2. You and Your Domestic Partner each are at least eighteen (18) years of age; 3. You and Your Domestic Partner are both mentally competent to enter into a binding contract; 4. You and Your Domestic Partner share a residence and have done so for at least 12 months; 5. Neither You nor Your Domestic Partner are married to or legally separated from anyone else; 6. You and Your Domestic Partner are not related to one another by blood closer than would bar marriage; and Neither You nor Your Domestic Partner is a Domestic Partner of anyone else. Where the laws of the governing jurisdiction mandate a definition of Domestic Partner other than shown above, that definition will be used in the Policy. 00060 Doctor means a person legally licensed to practice medicine, psychiatry, psychology or psychotherapy, who is neither You nor a member of Your immediate family. A licensed medical practitioner is a Doctor if applicable state law requires that such practitioners be recognized for purposes of certification of Disability, and the treatment provided by the practitioner is within the scope of his or her license. 00061 Elimination Period means the number of calendar days at the beginning of a continuous period of Disability for which no benefits are payable. The Elimination Period is shown in the Schedule of Benefits. 00062 Employee means an Actively at Work full-time Employee whose principal employment is with the Policyholder, at the Policyholder's usual place of business or such place(s) that the Policyholder's normal course of business may require, who is Actively at Work for at least the number of hours per week as stated in the Application and is reported on the Policyholder's records for Social Security and withholding tax purposes. 00069 Gainful Occupation, Gainful Employment or Gainfully Employed means the performance of any occupation for wages, remuneration or profit, for which You are qualified by education, training or experience on a full-time or part-time basis. 00063 Generally Accepted Medical Practice or Generally Accepted in the Practice of Medicine means care and treatment which is consistent with relevant guidelines of national medical, research and health care coverage organizations and governmental agencies. 00064 Gross LTD Monthly Benefit means that benefit shown in the Schedule of Benef is which applies to You. 00065 Hospital or Health Care Facility is a legally operated, accredited facility licensed to provide full-time care and treatment for the condition(s) causing Your Disability. It is operated by a full-time staff of licensed physicians and registered nurses. It does not include facilities which primarily provide custodial, educational or rehabilitative care. 00066 Indexed Monthly Earnings means Your Monthly Earnings adjusted on each anniversary of benefit payment by the lesser of 3% or the current annual percentage increase in the Consumer Price Index. Your Indexed Monthly Earnings may increase or remain the same, but will never decrease. 2-LTDG- 412 10 Consumer Price Index (CPI -VL) means the Consumer Price Index for all urban wage earners and clerical workers in the United States as published by the Bureau of Labor Statistics of the United States Department of Labor or its successors. If the CPL -W is discontinued or changed, We may use another index that most closely reflects the cost of living in the United States. Indexing is only used as a factor in the determination of the percentage of lost earnings while You are Disabled and working in a Gainful Occupation. 00067 Injury means bodily injury that is the direct result of an ,occident and not related to any other cause. must occur, and Disability resulting from the Injury must begin while You are covered under the Policy. occurs before You are covered under the Policy will be treated as a Sickness. 00068 LTD means Long Term Disability. 00070 Male pronoun, whenever used, includes the female. 00071 The Injury Injury that Material and Substantial Duties means duties that: rf 1. are normally required for the performance of Your Regular Occupation; and y A�, ' 2. cannot be reasonably omitted or modified, except that if You are required to work on average in excess of 40 hours per week, We will consider You able to perform that requirement if You have the capacity to work 40 hours. 00072 x Maximum Capacity means, based on Your restrictions and limitations: 1. During the first 24 consecutive months of monthly payments, the greatest extent of work You are able to do in Your Regular Occupation; and 2. Beyond 24 consecutive months of monthly payments, the greatest extent of work You are able to do in any Gainful Occupation. 00073 Maximum Medical Improvement is the level at which, based on reasonable medical probability, further material recovery from, or lasting improvement to, an Injury or Sickness can no longer be reasonably anticipated. 00074 Maximum Period Payable, as shown in the Schedule of Benefits, means the longest period of time that We will make payments to You for any one period of Disability. 00075 Mental Disorder means a disorder found in the current diagnostic standards of the American Psychiatric Association. 00076 Monthly Benefit means the LTD Monthly Benefit shown in the Schedule of Benefits which applies to You. 00077 2-LTDC- 412 31 Monthly Earnings means Your gross monthly income from Your Employer in effect just prior to Your Date of Disability. It includes Your total income before taxes and any deductions made for pre-tax contributions to a qualified deferred compensation plan, Section 125 plan, or flexible spending account. It includes income actually received from commissions, but does not include bonuses, overtime pay, or any other extra compensation, or income received from sources other than Your Employer. Commissions will be averaged for the lesser of. c. the 12 full calendar month period of Your employment with Your Employer just prior to the date Disability begins; or d. the period of actual employment with Your Employer. 00078 Net LTD Monthly Benefit means the Gross LTD Monthly Benefit less the Deductible Sources of Income. 00079 Participation in a Riot shall include promoting, inciting, conspiring to promote or incite, aiding, abetting, and all forms of taking part in, but shall not include actions taken in defense of public or private property, or actions taken in defense of the person of the insured, if such actions of defense are not taken against persons seeking to maintain or restore law and order including but not limited to police officers and firemen. 00080 Pre-existing Condition means a condition which; was caused by, or results from a Sickness or Injury for which You received medical treatment, or advice was rendered, prescribed or recommended whether or not the Sickness was diagnosed at all or was misdiagnosed within 12 months prior to Your effective date; and 2. results in a Disability which begins in the first 12 months after Your effective date. 00081 0 Regular Occupation means the occupation that You are routinely performing when Your Disability begins. We will look at Your occupation as it is normally performed in the national economy, instead of how the work tasks are performed for a specific Policyholder or at a specific location. 00081 Rehabilitation Plan means a written agreement between You and Us. Its purpose is to assist You in returning to Gainful Employment. The Rehabilitation Plan will outline the time and dates of the vocational rehabilitation services, Our responsibilities, Your responsibilities and the responsibilities of any third party which might be involved. The Rehabilitation Plan will be at Our expense, at the expense of the third parry, or a shared expense of Ours and a third party. The Rehabilitation Plan may include the Day Care Expense Benefit. 00083 Riot shall include all forms of public violence, disorder or disturbance of the public peace, by three or more persons assembled together, whether or not acting with common intent and whether or not damage to persons or property or unlawful act or acts is the intent or the consequence of such disorder. 00085 Schedule of Benefits means the schedule which is a part of this certificate. 00086 Sickness means sickness or disease causing Disability which begins while You are covered under the Policy. 00087 2-LTDC- 412 32 Special Conditions means 1. muscoskeletal and connective tissue disorders of the neck and back including any disease or disorder of the cervical, thoracic and lumbosacral back and its surrounding soft tissue including sprains and strains of joints and adjacent muscles, except: a. Arthritis; b. Herniated Invertebrate Discs; C. scoliosis; d. spinal fractures; e. osteopathies; f. spinal tumors, malignancy, or vascular g. radiculopathies, documented by elkectr h. spondylolosthesis, grade lI or higher; i. myelopathies and myelitis; j. demyelinating disease; k. traumatic spinal cord neurosis; !. myofacial air syndrome; P 2. chronic fatigue syndrome; 3. fibromyalgia; '��r J�Jr 4. carpal tunnel syndrome, or 5. environmental allergic illness, including but not limited to sick building syndrome and multiple chemical sensitivity. 00088 Spouse means lawful spouse in the jurisdiction in which You reside. Spouse will include Your Domestic Partner. 00091 Substance Abuse means a pattern of pathological use of alcohol or other psychoactive drugs resulting in impairment of social and or occupational functioning; debilitating physical condition; inability to abstain from or reduce consumption of the substance; or the need for daily substance use for adequate functioning. 00092 Waiting Period as shown in the Schedule of benefit means the continuous length of time immediately before Your Effective Date during which You must be in an Eligible Class. Any period of time prior to the Policy Effective Date You were Actively at Work for Your Employer will count towards completion of the Waiting Period. 00093 We, Our and Us mean the Dearborn National Life Insurance Company, Chicago, Illinois. 00094 You, Your and Yours means the employee to whom this certificate is issued and whose insurance is in force under the terms of the Policy. 00095 2-LTDC- 412 33 Administrative Office: 1020 3V Street Downers Grove, Illinois 60515 n DEARBORN NATIONAL® LIFE INSURANCE COMPANY Chicago, Illinois RIDER This Rider is made a part of the Policy or Certificate (hereafter "the Policy") to which it is attached. It takes effect and ends at the same time as the Policy. All provisions of the Policy, including any other Riders or Amendatory Endorsements will apply to this Rider, except that in the event of a conflict, the specific provisions of this Rider will govern. Disability Resource Services What is Disability Resource Services? Disability Resource Services is a noninsurance benefit made available to You which provides access at no additional cost to the following services: • Access to Guidance Resources® Online, a secure, password -protected interactive website that contains self -assessments, search tools, extensive content on personal health, relational, legal, health and financial concerns for You. Access to unlimited telephonic counseling service. This service provides access to experts to provide You with assessment, counseling and referral advice. + Up to three face-to-face counseling sessions. How Do You Access Disability Resource Services? Guidance Resources is accessed online. Your employer will provide You with a password to use on the website. The website URL is www.GuidanceResources.com. Telephonic and face to face counseling is available if you qualify as stated above. To contact a counselor, please call 1-866-899-1363. Guidance Resources and telephonic counseling is provided by ComPsych" Corporation. We do not underwrite or administer this program. When do Disability Resource Services Terminate? Disability Resource Services terminate if Your coverage is terminated under the section on When does Your coverage under the Policy end? located in the Termination Provision of the contract; or, When you are no longer qualify for Total Disability or Partial Disability benefits under the Policy. " .1444�� President Nothing contained in this Rider shall be held to alter or affect any provision or condition of the Policy other than as stated above. FDL2-NIB-DRS (5/2012) NOTICE to the Policyholder and Certifkate holder Insured under the Group Long Term Disability Insurance Policy Provided by Dearborn National Life Insurance Company Regarding the Disability Resource Services Noninsurance Benefit This notice is to advise you that Your Group Disability Insurance program also provides a non - insurance benefit: Disability Resource Services. Noninsurance Benefit Descriation and How the Benefit May Be Obtained Disability Resource Services is a noninsurance benefit that provides you with a link to Guidance Resources® Online, a secure, password -protected interactive website that contains self -assessments, search tools, and extensive content on personal health, relational, legal, health and financial concerns for insured persons and their family. In addition You have access to telephonic counseling by calling 1-866-899-1363, and up.l jo,three face-to- face counseling sessions. This noninsurance benefit is available at the option of,the/S�7.1hPolicyholder,without any=tion required on the part of an insured person to either acceptor decline,the service'f ixry "df. I 'N There is no charge for this noninsurance benefit.�?f• .11� fir, The service is currently administered and provided by Com syc ho Corporation. Dearborn National Life Insurance Company{,(sometimes referred to as "We" or "Our") makes this program available, but it does not underwrite of.administer the Disability Resource Services program. Why This Service is Beine Made Availablep We are making this service available to provide�s�zpport and assistance to insureds who have suffered a loss that is covered by the group disability insurance policy. Living with a disability can be difficult, and this program provides counseling, and assistance with locating services to support the insured and their family members. Termination of the Nodinsuranee'Benefit This noninsurance benefit is provided free of charge It is subject to termination at our option or at the optiont'of the program administrator. rf� `A O; If We discontinue thisservice We will notify the Policyholder not less than thirty (30) days in advance of the discontinuance of this service. 1 . 14- If the current program administrator discontinues the program and we are unable to find a replacement, we will notify the Policyholder as soon as is reasonable under the circumstances. If discontinued, the services available under this noninsurance benefit will no longer be available. Unless terminated by Us or by the Program administrator, the Disability Resource Services noninsurance benefit is available following a covered loss for as long as you remain covered under the group disability insurance policy and such policy remains in effect. NIB -DRS -Notice (512012) ERISA INFORMATION STATEMENT' The benefits described in your certificate are insured by a Policy issued by Dearborn National Life Insurance Company ("Dearborn National"), pursuant to an Employee Welfare Benefit Plan (" the Plan") established by your employer ("the Company"). This ERISA Information Statement ("EIS") describes some of the key provisions of the Plan in effect as of the Effective Date of the Policy. It is not the intention of the EIS to cover all situations that may arise, but to provide you with a general understanding of your benefits. In the case of any item not covered by the EIS or in the event of any conflict between the EIS and the Policy, the Plan will always control. You should not rely on any oral explanation, description, or interpretation of the Plan because the written terms of the Plan will govern. Your right to any benefit depends on the actual facts and terms and conditions of the particular Plan; no rights accrue by reason of or arising out of any statement shown in or omitted from this EIS. A. ADMINISTRATION OF THE PLAN The Plan Administrator is responsible for the administration of the Plan. The Plan Administrator has full discretionary authority and control over the Plan. This authority provides the Plan Administrator with the power necessary to operate, manage and administer the Plan. This authority includes, but is not limited to, the power to interpret the Plan and determine who is eligible to participate, to determine the amount of benefits that may be paid to a participant or his or her beneficiary, and the status and rights of participants and beneficiaries. The Plan Administrator also has the authority to prescribe the rules and procedures under which the Plan shall operate, to request information, and to employ or appoint persons to aid the Plan Administrator in the administration of the Plan. Failure by the Plan or the Plan Administrator to insist upon compliance with any provisions of the Plan at any time or under any set of circumstances shall not operate to waive or modify the provision or in any manner render it unenforceable as to any other time or as to any other occurrence, whether the circumstances are or are not the same. No waiver of any term or condition of the Plan shall be valid unless contained in a written memorandum expressing the waiver and signed by the person authorized by the Plan Administrator to sign the waiver. The Plan may be amended, terminated or suspended in whole or in part, at any time without the consent of the employees or beneficiaries. Any amendment, termination or suspension shall be in writing, and attached to the Plan. Any amendment, termination or suspension shall be executed according to the Employer's authorized procedures. Any such authorization may be specific to the Plan or persons authorized to act on behalf of the Employer or may be general as to duties of such person. Except for termination or suspensions, any amendments affecting the Policy and/or Certificate must also be approved in writing by an officer of Dearborn National and shall be effective as of the date agreed to, in writing by the Plan Sponsor and Dearborn National. Notwithstanding anything to the contrary in this document, the Policy shall terminate according to the provisions in the Policy. The Plan has other fiduciaries, advisors and service providers. The Plan Administrator may allocate fiduciary responsibility among the Plan's fiduciaries and may delegate responsibilities to others. Any allocation or delegation must be done in writing and kept with the records of the Plan. The Plan's life benefits are provided pursuant to an insurance policy issued to the Company. Dearborn National's (the Insurer's) services shall be limited to, and the Plan Administrator has the full discretionary and final authority to: resolve all matters when a review pursuant to the claims procedures has been requested; interpret, establish and enforce rules and procedures for the administration of the Policy and any claim under it; and determine eligibility of Employees and Dependents for benefits and their entitlement to and the amount of benefits. Each fiduciary is solely responsible for its own improper acts or omissions. Except to the extent required by ERISA, no fiduciary has the duty to question whether any other fiduciary is fulfilling all of the responsibilities imposed upon the other fiduciary by law. Nor is a fiduciary liable for a breach of fiduciary duty committed before it became, or after it stopped being, a fiduciary. However, a fiduciary may be liable for a breach of fiduciary responsibility of any Plan fiduciary, to the extent provided in ERISA Section 405(a). The Employer makes no promise to continue these ' If this Plan is an ERISA plan, these ERISA provisions apply. However, your employer may issue a Summary Plan Description ("SPD"). If it does, and if there are any conflicts between the SPD and the EIS in regards to your ERISA rights, the SPD provisions will always control. FDL FIS Standard 4/2009 rev'd. benefits in the future and rights to future benefits will never vest. Retirement does not give any retiree any vested right to continue to participate or receive Plan benefits. B. CLAIMS PROCEDURE; When you or your Beneficiary are eligible to receive benefits, you or your Beneficiary, or your authorized representative (collectively, "you") must notify the Plan Administrator by submitting the proper form in writing. You may do this by sending notice of your claim to the Plan Administrator who has been appointed to assist Dearborn National in the claims processing for this Plan or by contacting Dearborn National directly at: Claims Department Dearborn National Life Insurance Company 1020 31 st Street Downers Grove, IL. 60515-5591 A. �yti 1-800-778-2281+., For the purpose of this Section, including Subsections 1 and 2 below, the terms "written" and "in writing" include "electronic." Any action required to be "written" or "in writing," may be done electronically, where available. If Dearborn National uses electronic notices, it will do so in accordance with 29 CFR 2520.104b - 10(i), (iii) and (iv). 1. Disability Insurance Plans rx�pi ,, Dearborn National will give you a written response to yo r clam,, V ally within; 45 days The time for decision may be extended for two additional 30 day periods provided that, prior to any extension period, Dearborn National notifies you in writing that an extension is necessary due tor'mattersplieyond the control of the Plan, identifies those s•.u:n.tr. matters and gives the date by which it expects to render its decision. If the extension is due to your failure to submit information necessary to decide your claim, the time for decision shall be tolled from the date on which we send you notice of the extension until the date we receive your response to ourrequest. This period will be no longer than 45 days after we have requested the information. At that tune we will decide your claim based on the information we have at that time. Fi•..' ?}'r tir If the claim is denied, in whole or in part, you;.wil l receive a writttetA notice giving the following: the reason for the denial;kr�, the Policy provisions on which the denial is based; an explanation of i6it other information cif any, may be needed to process the claim and why it is needed; - the steps that you have to follow to,have the claim reviewed; r UP - a statement that you have the right iii bring a civil action under section 502(a) of ERISA after you appeal ,r - our decision and after you receive a written denial on appeal; and rr ,'r - if an internalrr:: ru!e,,.guideline, protocol, or other similar criterion was relied upon in making the denial, either (i) the specificrule, guideline, protocol or other similar criterion; or (ii) a statement that such a rule, guideline, protocol;or other similar criterion was relied upon in making the denial and that a copy will be provided free of charge to you upon request; and if denial is based on medical judgment, either (i) an explanation of the scientific or clinical judgment for the determination, applying the terms of the Plan to your medical circumstances, or (ii) a statement that such explanation will be provided to you free of charge upon request. If the claim has been denied, in whole or in part, you can appeal the denial to us for a full and fair review. You have at least 180 days to appeal from the claim denial. You may: a. request a review upon written application within 180 days of the claim denial; b. request, free of charge, copies of all documents, records and other information relevant to your claim; and * If this Plan is an ERISA plan, these ERISA provisions apply. However, your employer may issue a Summary Plan Description ("SPD"). If it does, and if there are any conflicts between the SPD and the EIS in regards to your ERISA rights, the SPD provisions will always control. FDI, EIS Standard 412009 rev'd. C. submit written comments, documents, records and other information relating to your claim, without regard to whether such information was submitted or considered in the initial benefit determination. Dearborn National will make a decision no more than 45 days after we receive your appeal. The time for decision may be extended for one additional 45 day period provided that, prior to the extension, Dearborn National notifies you in writing that an extension is necessary due to special circumstances, identifies those circumstances and gives the date by which it expects to render its decision. If your claim is extended due to your failure to submit information necessary to decide your claim on appeal, the time for your decision shall be tolled from the date on which the notification of the extension is sent to you until the date we receive your response to the request. The written decision will include specific references to the Plan provisions on which the decision is based and any other notice(s), statement(s) or information required by applicable law. 2. Life Insurance Plans Dearborn National will give you a decision no more than 90 days after receipt of due proof of loss, except in special circumstances (such as the need to obtain further information), but in no case more than 180 days after the due proof of loss is received. The written decision will include specific reasons for the decision and specific references to the Plan provisions on which the decision is based. If the claim is denied, in whole or in part, the claimant will receive a written notice giving the following: - the reason for the denial; - the Policy provisions on which the denial is based; - an explanation of what other information, if any, may be needed to process the claim and why it is needed; and - the steps that have to be followed to have the claim reviewed. Any denied claim may be appealed to the Insurer for a full and fair review. The claimant may: a) request a review upon written application within 60 days of receipt of claim denial; b) upon request and free of charge, review pertinent documents, records and other information relevant to the claim and receive copies of same; and C) submit issues, comments, records, and other information in writing. A decision will be made by the Insurer no more than 60 days after receipt of the request for review, except in special circumstances (such as the need to obtain additional evidence), but in no case more than 120 days after the request for review is received. The written decision will include specific reasons for the decision and specific references to the Plan provisions on which the decision is based. The decision will advise you of any other appeal rights you have under the Plan, as well as your right to bring an action under Section 502(a) of ERISA. C. ERISA NOTICE OF YOUR RIGHTS As a participant in the Plan you are entitled to certain rights and protections under the Employee Retirement Income Security Act of 1974 ("ERISA"). ERISA provides that all Plan participants shall be entitled to: Examine, without charge, at the Plan Administrator's office and at other locations, such as work sites and union halls, all Plan documents, including insurance contracts, collective bargaining agreements and copies of all documents filed with the U.S. Department of Labor, such as detailed annual reports and Plan descriptions. Obtain copies of all Plan documents and other Plan information upon written request to the Plan Administrator. The Plan Administrator may make a reasonable charge for the copies. Receive a summary of the Plan's annual financial report. The Plan Administrator is required to furnish each participant with a copy of this summary annual report. In addition to creating rights for the Plan participants, ERISA imposes duties upon the people who are responsible for the operation of the employee benefit Plan. The people who operate your Plan, called "fiduciaries" of the Plan, have a duty to do so prudently and in the interest of you and other Plan participants and beneficiaries. No one, including your employers, your union, or any other persons, may fire you or otherwise discriminate against you in any way to prevent you from obtaining a welfare benefit or exercising your rights under ERISA. If your claim for a welfare benefit is denied in whole or in part you must receive a written explanation of the reason for the * If this Plan is an ERISA plan, these ERISA provisions apply. However, your employer may issue a Summary Plan Description ( J ("SPD"). If it does, and if there are any conflicts between the SPD and the EIS in regards to your ERISA rights, the SPD provisions will always control. FDL EIS Standard 412009 rev'd. denial. You have the right to have the Plan review and reconsider your claim. Under ERISA, there are steps you can take to enforce your rights. For instance, if you request materials from the plan and do not receive them within 30 days, you may file a suit in federal court. In such a case, the court may require the Plan Administrator to provide the materials and pay you up to $110 a day until you receive the materials, unless the materials were not sent because of reasons beyond the control of the Plan Administrator. If you have a claim for benefits which is denied or ignored, in whole or in part, you may file suit in a state or federal court. If it should happen that Plan fiduciaries misuse the Plan's money, or if you are discriminated against for asserting your rights, you may seek assistance from the U.S. Department of Labor, or you may file suit in federal court. The court will decide who should pay costs and legal fees. If you are successful the court may order the person you have sued to pay these costs and fees. If you lose, the court may order you to pay these costs and fees, for example, if it finds your claim is frivolous. If you have any questions about this statement or about your rights under ERISA, you should contact the nearest office of the Pension and Welfare Benefits Administration, United States Department of Labor, listed in your telephone directory or the Division of Technical Assistance and Inquiries, Employee Benefit Security Administration, United States Department of Labor, 200 Constitution Avenue, NW Washington DC 20210. D. PARTICIPANT'S RIGHTS This Plan shall not be deemed to constitute a contract between the Company and any participant or to be consideration or an inducement for the employment of any participant or employee. Nothing contained in this Plan shall be deemed to give any participant or employee the right to be retained in the service of the Company or to interfere with the right of the Company to discharge any participant or employee at any time regardless of the effect which such discharge shall have upon him or her as a participant of this Plan. * If this Plan is an ERISA plan, these ERISA provisions apply_ However, your employer may issue a Summary Plan Description ("SPD"), If it does, and if there are any conflicts between the SPD and the EIS in regards to your ERISA rights, the SPD provisions will always control. FDL EIS Standard 4/2009 rev'd. Deoxborn National0r Administrative Office: 1O20 31st Street • Downers Grove, IL 60515-5591 Products and services marketed under the Dearborn National® brand and the star logo are underwritten and/or provided by Dearborn National® Life Insurance Company (Downers Grove, IL) in all states (excluding New York), the District of Columbia, the United States Virgin Islands, the British Virgin Islands, Guam and Puerto Rico. Dearborn National® Life Insurance Company (A stock life insurance company herein called "We", "Us", "Our") Chicago, Illinois Administrative Office: 1020 31st Street • Downers Grove, IL 60515-5591 Policyholder: SAMPLE TEXAS Policy Number: SAMPLE TX -0001 Policy Effective Date: January 1, 20130 Anniversary Date: January 1, 2014 : We agree with the Policyholder to insure certain eligible Employees of the Policyholder. We roml ise-to a benefits g Y gcY P p.Y for loss covered by the Policy in accordance with its provisions. The Policyholder should read this Policy carefully and contact Dearborn National Life Insurance Company promptly with any questions. r. Policyholder means the Employer to whom the Policy is issued and96sponsored the coverage for its Employees. If the Policyholder is a trust or Organization, the term Participating Employer shall be substituted for Policyholder. Employer means the Policyholder and includes any division, subsidiary, or affiliated company named in the Policy. W. Employee means a person who is a citizen or legai,iesiddnt of the°United States and Actively at Work with the Employer. POLICY EFFECTIVE DATE&AND TERM The Policy takes effect on the Policy Effective Date.stakabove sulbjcct'to any participation requirement stated in the Policy. All insurance periods will be computeefrom thai date. Th'e Policy remains in force for the period for s- d which premium has been paid. It may be renewed for further successive periods by payment as stated in the Policy. All periods of insurance begin and end'at-12:01 A',M.i,Standard'Time, at the Policyholder's address as stated in the Policy, and on the Application. �'N„ Signed for Dearborn National Life Insurance Company @v l"Frti,' �I ,,JAS •�{' Secretary President THIS IS NOT A POLICY, OF WORKERS' COMPENSATION INSURANCE, THE EMPLOYER DOES NOT BECOME A SUBSCRIBER'%.i0� 711E WORKERS' COMPENSATION SYSTEM BY PURCHASING THIS POLICY, AND IF THE EMPLOYER51SykW I -SUBSCRIBER, THE EMPLOYER LOSES THOSE BENEFITS WHICH WOULD OTHERWISE ACCRUE UNDER THE WORKERS' COMPENSATION LAWS. THE EMPLOYER MUST COMPLY WITH THE WORKERS' COMPENSATION LAW AS IT PERTAINS TO NON -SUBSCRIBERS AND THE REQUIRED NOTIFICATIONS THAT MUST BE FILED AND POSTED. Group Voluntary Long Term Disability Policy Non -Participating THIS IS NOT A WORKERS' COMPENSATION POLICY 2-LTDP-412 (TX) IMPORTANT NOTICE To obtain information or make a complaint: You may contact your (title) at (telephone number). You may call Dearborn National Life Insurance Company's toll-free telephone number for infor- mation or to make a complaint at: 1-800-348-4512 You may also write to Dearborn National Life Insurance Company at: 1020 31st Street, Downers Grove, IL 60515-5591 You may contact the Texas Department of Insurance to obtain information on companies, coverages, rights or complaints at: 1-800-252-3439 You may write the Texas Department of Insurance: P. O. Box 149104 Austin, TX 78714-9104 FAX #(512) 475-1771 Web: http://www.tdi.state.tx.us E-mail: ConsumerProtection@tdi.state.tx.us PREMIUM OR CLAIM DISPUTES: Should you have a dispute concerning your premium or about a claim, you should contact the company first. If the dispute is not resolved, you may contact the Texas Department of Insurance. ATTACH THIS NOTICE TO YOUR POLICY: This notice is for information only and does not become a part or condition of the attached document. 9-632-895 DISPUTAS SOBRE PRIMAS O RECLAMOS: Si tiene una disputa concemiente a su prima o a un reclamo, debe comunicarse con la compania primero. Si no se resuelve la disputa, puede entonces comunicarse con al Departamento de Seguros de Texas. UNA ESTE AVISO A SU POLIZA: Este aviso es solo para proposito de information y no se convierte en parte o condition del documento adjunto. AVISO IMPORTANTE Para information o para someter una queja: Peude communicarse con su (title) al (telephone number). Usted puede Ilamar al numero de telefono gratis de Dearborn National Life Insurance Company para informacion o para someter una queja al: 1-800-348-4512 Usted tambien escribir a Dearborn National Life Insurance Company al: 1020 31st Street, Downers Grove, IL 60515-5591 Puede comunicarse con el Departamento de Seguros de Texas para conseguir information acerca de companias, coberturas, derechos o quejas al: 1-800-252-3439 Puede escribir al Departamento de Seguros de Texas: P. O. Box 149104 Austin, TX 78714-9104 FAX #(512) 475-1771 Web: http://www.tdi.statc.tx.us E-mail: ConsumerProtection@tdi.state.tx.us DISPUTAS SOBRE PRIMAS O RECLAMOS: Si tiene una disputa concemiente a su prima o a un reclamo, debe comunicarse con la compania primero. Si no se resuelve la disputa, puede entonces comunicarse con al Departamento de Seguros de Texas. UNA ESTE AVISO A SU POLIZA: Este aviso es solo para proposito de information y no se convierte en parte o condition del documento adjunto. IMPORTANT INFORALMONABOUT COVERAGE UNDER THE TEXAS LIFE, ACCIDENT, HEALTHAND HOSPITAL SERVICE INSURANCE GUARANTYASSOCIATION eft(For Insurers declared Insolvent or impaired on or after September I, 2005) --t Texas law establishes a system, administered by the Texas Life, Accident, Health and Hospital Service Insurance Guaranty Association (the "Association"), to protect Texas policyholders if their life or health insurance company fails. Only the policyholders of insurance companies which are members of the Association are eligible for this protection which is subject to the terms, limitations, and conditions of the Association law. (The law is found in the Texas Insurance Code, Chapter 463.) It is possible that the Association may not cover your policy in full or in part due to statutory limitations. Eligibility for Protection by the Association When a member insurance company is found to be insolvent and placed under an order of liquidation by a court or designated as impaired by the Texas Commissioner of Insurance, the Association provides coverage to policyholders who are: • Residents of Texas at that time (irrespective of the policyholder's residency at policy issue) • Residents of other states, ONLY if the following conditions are met: 1. The policyholder has a policy with a company domiciled in Texas; 2. The policyholder's state of residence has a similar guaranty association; and 3. The policyholder is not eligible for coverage by the guaranty association of the'policyholder's state of residence. 1014 ,/r Limits of Protection by�.tbe_Association; Accident, Accident and Health, or Health Insurance:,,. • For each individual covered under one or morel policies: up to a total of $500,000 for basic hospital, medical -surgical, and major medical insurance, $300,000 for disability or long term care insurance, and $200,000 for other types of health insurance. Life Insurance:yf{ • Net cash surrender value or net cash withdrawalrtvalue up td' a total of $100,000 under one or more policies on any one life; or • Death benefits up to a total of $300,000junder one or morepolicies on any one life; or • Total benefits up to a total of $5,000,000to,,any, owner of multiple non -group life policies. w ,. . Individual Annuities: rAf` • Present value of benefits up to a total of $100,000 under one or more contracts on any one life. Group Annuities:r:, • Present value of allocated benefitsupao a#otal of $100,000 on any one life; or 2r ir. �Ile, • Present value of unallocated'bene i'' ;up to a total of $5,000,000 for one contractholder regardless of the number of contracts. �n Aggregate Limit-�;� • $300;000 onany one.life with the exception of the $500,000 health insurance limit, the $5,000,000 multiple owner life insance limit, and the $5,000,000 unallocated group annuity limit. Insurance companies andVagents are prohibited by law from using the existence of the Association for the purpose of sales, solicitation, or inducement to purchase any form of insurance. When you are electing an insurance company, you should not rely on Association coverage. Texas Life, Accident, Health and Hospital Service Insurance Guaranty Association 6504 Bridge Point Parkway, Suite 450 Austin, Texas 78730 800-982-6362 or www.txlifega.org FDL Notice 09 Texas Department of Insurance P.O. Box 149104 Austin, Texas 78714-9104 800-252-3439 or www.tdi.state.tx.us TABLE OF CONTENTS PROVISION PAGE f'remau114. .... ........................................................................................................... S PremiumRateGuanvxw.......................................................,.........,......................... 6 PolicyTerminalon .............................. . . ............................ . ......................... .. ... . 7 AddinowiPnwWom.................................................................................................. 8 ATTACHMMNTS, • Mwter Application • Certificate of Insurance 2-LTDP-412 (TX) }-� v PREMIUM How is the initial premium calculated? Initial Premium is calculated by multiplying the total insured Monthly Earnings, divided by 100, by *. Do not include Monthly Earnings for any individual in excess of $8,333.33 per month in the premium calculation. *See "Rates" section within Schedule of Benefits page When is premium paid? The Policy is issued in consideration of the payment in advance of premium on the billing mode indicated on the Application. The initial premium is calculated at the premium rate stated above. Payment must be made by the premium due date as shown on the Application. rr 7111 If an addition, termination or change in insurance takes place other than on a regular due date, any premium adjustment will take effect on the next due date. Is premium payable while an Insured receives benefits? We will waive premium for an Insured Employee during the period of Disability for which the LTD Monthly Benefit is payable under the Policy. Premium payment is required during the Insured Employee's Elimination Period. During this period, the Insured Employee's insurance will remain in force. Is there a grace period for premium payment? �`�Y/4• "?Y/ We will allow a grace period of 31 days for the payment of any premiums due except the first. Insurance coverage shall continue in force during the grace period unless the Policyholder has given Us advance written notice of cancellation in accordance with the terms of this Policy. If premium is not received by the end of the grace period, this Policy will terminate as of the last date for which premium was paid. The Policyholder is liable for premium due on coverage provided during the grace period. If We receive written notice during the grace period that the Policy is to be canceled, We will cancel it as of the later of: 1. the date requested in the cancellation notice; or 2. the date We receive such notice. The Policyholder must pay a pro rata premium for any coverage provided during the grace period. 2-LTDP- 705 (TX) rREMIUM RATE GUARANTEE What is the initial premium rate guarantee? A change in premium rates will not take effect before January 1, 2014. However, We may change premium rates if the risk assumed changes. Premium rates may change if the following occurs: 1. a change in the policy design; 2. a change in the terms of the Policy; 3. addition or deletion of a division, subsidiary or affiliated company; 4. a change in the number of Insureds by 10% or more from the number of Insureds on the initial Effective Date; 5. a change in the laws or regulations or other government action which applies to the Policy; 6. for reasons other than 1-5 above such as but not limited to a change in factors bearing on the risk assumed. The Policyholder must furnish notice and documentation satisfactory to Us within 31 days of the occurrence of any event which would cause a change in rates as described above. If the Policyholder fails to provide such timely notice, we will apply new rates retroactively to the date of the event. We will notify the Policyholder in writing at least 31 days in advance of any premium rate changes. A change may take effect on an earlier date if both the Policyholder and We agree. 2-LTDP- 705 (TX) C 6 L. POLICY TERMINATION Who may cancel the Policy or a plan under the Policy? The Policy or a plan under the Policy can be canceled by the Policyholder with 31 days written notice delivered to Us. This Policy will terminate for any of the following reasons: 1. If the Policyholder fails to pay any premium within the 31 -day Grace Period, this Policy will terminate in accordance with the terms set forth in the Grace Period provision. 2. We may terminate this Policy on any premium due date if.- a. f: a. coverage is Contributory and less than 25% of the eligible Employees participate; or Al 1 �.. b. the Policyholder fails to perform any of its obligations that relate to the Policy; or ,�' , '`x c. the Policyholder does not promptly provide Us with information that is reasonably required; or , d. fewer than 10 Employees are insured under the Policy. If We cancel the Policy, for reasons other than the Policyholder's failure to pay premium, a written notice will be delivered to the Policyholder at least 31 days prior to the cancellation date. Termination of this Policy under any conditions will not prejudice any claim for a loss which is incurred while this Policy is in force. ; ;. r J; rk "Mfk.� 2-LTDP- 705 (TX) 7 ADDITIONAL PROVISIONS What happens if an inadvertent error occurs? Clerical error or omission by Us to the Policyholder will not: 1. Prevent You from receiving coverage, if You are entitled to coverage under the terms of the Policy; or 2. Cause coverage to begin or coverage to continue for You when the coverage would not otherwise be effective. If the Policyholder gives Us information about You that is incorrect, We will: I. Use the facts to decide whether You have coverage under the Policy and in what amounts; and 2. Make a fair adjustment ofthe premium. Will certificates be issued? We will deliver certificates of insurance to the Policyholder for issuance to each Insured Employee. The certificates will describe the benefits, to whom they are payable, the Policy limitations and where the Policy may be inspected. What is considered to be the entire contract? This entire Policy consists of: 1. all Policy provisions and any amendments and/or attachments issued; 2. the Certificate of Coverage; and 3. the Policyholder's signed Application 4. the Employee's signed enrollment forms. IN C,J 2-LTDP- 705 (TX) 8 STATE SUPPLEMENT The following policies apply only to those individuals in your group insurance program who reside in the referenced states. Arizona and Maine Except as otherwise permitted by law, we will not disclose collected personal information about an individual to a nonaffiliated third party with whom we jointly offer products without giving the individual an opportunity to tell us that he or she does not want us to share his or her personal information. Minnesota and Montana Except as otherwise permitted by law, we will not disclose collected personal information about an individual to a nonaffiliated third party with whom we jointly offer products without obtaining the individual's written authorization. Montana Upon written request, an individual who has authorized the collection of health information is entitled to receive a record of Dearborn National's disclosures of any of his medical record information made within the preceding 3 years.„ Oregon An individual has the right to authorize disclosure of his or her personal information to an insurance company. An Oregon resident can exercise this right by requesting an authorisation form in writing. Our address is: Dearborn National Life Insurance Company 1,&D— Administrative Office: 1020 31st Street • Downers Grove, IL 60515 9 C PRIVACY NOTICE THIS NOTICE REQUIRES NO ACTION ON YOUR PART. IT IS DESIGNED TO HELP YOU UNDERSTAND HOW WE PROTECT YOUR PERSONAL INFORMATION. Insured's private records and those of their covered family members are safe with us. We have a longstanding policy that maintains the confidentiality of your personal data necessary to administer insurance and to provide service. It is widely known that many companies sell the names of customers to others. We do not sell or rent the name or records of our insureds to any other organization or business concern. Confidentiality and Security We implemented policies and procedures to protect the confidentiality of personal information. We maintain physical, electronic, and procedural safeguards to protect personal data from unauthorized access and unanticipated threats or hazards. Information That May Be Collected We receive personal information on insurance applications, claim forms, and other forms. In addition, we may receive information from health care providers through the course of managing insurance transactions. We also have personal information from transactions with us, our affiliates, and certain third parties with whom we have service or joint marketing agreements. These third parties may include our reinsurers, insurance administrators, consultants, medical information bureaus, and other insurers with whom we do business. Generally, we receive personal information by telephone, in writing or through a computer. This includes information about policies, premiums, and claims. If we need more information from medical professionals or consumer reporting agencies, it must be authorize by the insured. Independent Insurance Agents The independent insurance agents authorized to sell our products are not our employees. Since these agents are subject to the same privacy laws that govern us, these agents may have privacy obligations that are independent of ours. Information We May Disclose We regard all personal information as confidential. We will not disclose personal information unless we are allowed or required by law or if we are told we can by the insured. We only make those disclosures that are necessary to administer insurance products, to effect transactions made in the ordinary course of our business and to pay claims. We may provide personal information only to our affiliates, agents, joint marketing partners, and certain third parties such as insurance administrators, reinsurers, consultants, and regulatory or governmental authorities. We work with our affiliates and outside firms to help with administrative and other insurance services and marketing. As permitted bylaw, these affiliates and firms may use certain identifying and non-medical information. Our affiliates are subject to the same policies regarding privacy of your information as we are. Our policy is to require our vendors and third party administrators to pledge to maintain the confidentiality of personal information and abide by all applicable privacy laws. These firms are prohibited from using or disclosing personal information given to us for any purpose other than the work they are performing or as required by law. Further Information Insureds have the right to obtain access to recorded personal information in our possession or control, to request correction if it is believed the information may be inaccurate and to add a rebuttal statement to the file if there is a dispute. Each insured has the right to know the reasons for an adverse underwriting decision. Previous adverse underwriting decisions may not be used as the basis for subsequent underwriting decisions unless we make an independent evaluation of the underlying facts. Further, each insured has the right, with very narrow exceptions, not to be subjected to pretext interviews. Even if our relationship ends, we pledge to maintain our privacy policy and practices. If you have any questions about our privacy policy, please write us at.... Dearborn National Life Administrative Office: 1020 31 st Street Downers Grove, IL 60515-5591 The following is a list of entities that this notice applies to, as Dearborn National Life Insurance Company Colorado Bankers Life Insurance Company And their offillates: Dental Network of America Medical Life Insurance Agency Industry Savings Plans, Inc. Combined Services, LLC Health Care Service Corporation, a Mutual Legal Reserve Company 1"n ERISA INFORMATION STATEMENT* 0 The benefits described in your certificate are insured by a Policy issued by Dearborn National Life Insurance Company ("Dearborn National"), pursuant to an Employee Welfare Benefit Plan (" the Plan") established by your employer ("the Company"). This ERISA Information Statement ("EIS") describes some of the key provisions of the Plan in effect as of the Effective Date of the Policy. It is not the intention of the EIS to cover all situations that may arise, but to provide you with a general understanding of your benefits. In the case of any item not covered by the EIS or in the event of any conflict between the EIS and the Policy, the Plan will always control. You should not rely on any oral explanation, description, or interpretation of the Plan because the written terms of the Plan will govern. Your right to any benefit depends on the actual facts and terms and conditions of the particular Plan; no rights accrue by reason of or arising out of any statement shown in or omitted from this EIS. A. ADMINISTRATION OF THE PLAN The Plan Administrator is responsible for the administration of the Plan. The Plan Administrator has full discretionary authority and control over the Plan. This authority provides the Plan Administrator with the power necessary to operate, manage and administer the Plan. This authority includes, but is not limited to, the power to interpret the Plan and determine who is eligible to participate, to determine the amount of benefits that may be paid to a participant or his or her beneficiary, and the status and rights of participants and beneficiaries. The Plan Administrator also has the authority to prescribe the rules and procedures under which the Plan shall operate, to request information, and to employ or appoint persons to aid the Plan Administrator in the administration of the Plan. Failure by the Plan or the Plan Administrator to insist upon compliance with any provisions of the Plan at any time or under any set of circumstances shall not operate to waive or modify the provision or in any manner render it unenforceable as to any other time or as to any other occurrence, whether the circumstances are or are not the same. No waiver of any term or condition of the Plan shall be valid unless contained in a written memorandum expressing the waiver and signed by the person authorized by the Plan Administrator to sign the waiver. The Plan may be amended, terminated or suspended in whole or in part, at any time without the consent of the employees or beneficiaries. Any amendment, termination or suspension shall be in writing, and attached to the Plan. Any amendment, termination or suspension shall be executed according to the Employer's authorized procedures. Any such authorization may be specific to the Plan or persons authorized to act on behalf of the Employer or may be general as to duties of such person. Except for termination or suspensions, any amendments affecting the Policy and/or Certificate must also be approved in writing by an officer of Dearborn National and shall be effective as of the date agreed to, in writing by the Plan Sponsor and Dearborn National. Notwithstanding anything to the contrary in this document, the Policy shall terminate according to the provisions in the Policy. The Plan has other fiduciaries, advisors and service providers. The Plan Administrator may allocate fiduciary responsibility among the Plan's fiduciaries and may delegate responsibilities to others. Any allocation or delegation must be done in writing and kept with the records of the Plan. The Plan's life benefits are provided pursuant to an insurance policy issued to the Company. Dearborn National's (the Insurer's) services shall be limited to, and the Plan Administrator has the full discretionary and final authority to: resolve all matters when a review pursuant to the claims procedures has been requested; interpret, establish and enforce rules and procedures for the administration of the Policy and any claim under it; and determine eligibility of Employees and Dependents for benefits and their entitlement to and the amount of benefits. Each fiduciary is solely responsible for its own improper acts or omissions. Except to the extent required by ERISA, no fiduciary has the duty to question whether any other fiduciary is fulfilling all of the responsibilities imposed upon the other fiduciary by law. Nor is a fiduciary liable for a breach of fiduciary duty committed before it became, or after it stopped being, a fiduciary. However, a fiduciary may be liable for a breach of fiduciary responsibility of any Plan fiduciary, to the extent provided in ERISA Section 405(a). The Employer makes no promise to continue these • If this Plan is an ERISA plan, these ERISA provisions apply. However, your employer may issue a Summary Plan Description ("SPD"). If it does, and if there are any conflicts between the SPD and the EIS in regards to your ERISA rights, the SPD provisions will always control. FDL EIS Standard 412009 rev'd. benefits in the future and rights to future benefits will never vest. Retirement does not give any retiree any vested right to continue to participate or receive Plan benefits. B. CLAIMS PROCEDURE: When you or your Beneficiary are eligible to receive benefits, you or your Beneficiary, or your authorized representative (collectively, "you") must notify the Plan Administrator by submitting the proper form in writing. You may do this by sending notice of your claim to the Plan Administrator who has been appointed to assist Dearborn National in the claims processing for this Plan or by contacting Dearborn National directly at: Claims Department '(f��•. Dearborn National Life Insurance Company r 1020 31 st Street ,�� j `.� Downers Grove, IL. 60515-5591 t��r 1-800-778-2281 For the purpose of this Section, including Subsections l and 2 below, the terms "w ltten" and "in writing" include "electronic." Any action required to be "written" or "in writing," may be done"�electronically, where available. If Dearborn National uses electronic notices, it will do so in accordance with'29 CFR 2520.104b- IC(i), (iii) and (iv). i 1. Disability Insurance Plans fry *� fir Yr..* r Dearborn National will give you a written response to your claim;jusually withiit,45 days. The time for decision may be extended for two additional 30 day periods provided.that, prior to any extension period, Dearborn National notifies you in writing that an extension is necessary due tomatters;beyond the control of the Plan, identifies those matters and gives the date by which it expects to render its decision. If the extension is due to your failure to submit information necessary to decide your claim, the time for decision "I., hall. be tolled from the date on which we send you notice of the extension until the date we receive your response to our request. This period will be no longer than 45 days after we have requested the information. At that tiiiieywe will decide your claim based on the information we have at that time. `(t ' If the claim is denied in whole or in�4 S � � � part, you;wilhreceive a written notice giving the following: the reason for the denial;,4r., the Policy provisions on which the denial is based; an explanation of Whitt`other information, if any, may be needed to process the claim and why it is needed; U", the steps that you liaye to follow,to; have the claim reviewed; a statement that you Have the right to bring a civil action under section 502(a) of ERISA after you appeal our decision and after you receive a written denial on appeal; and if an internal, rule guideline, protocol, or other similar criterion was relied upon in making the denial, either i the -sr c fe rule guideline, protocol or other similar criterion' or (ii) a statement that such a rule C) P , 8 , P � C•) , guideline, protocol or other similar criterion was relied upon in making the denial and that a copy will be provided free of charge to you upon request; and if denial is based on medical judgment, either (i) an explanation of the scientific or clinical judgment for the determination, applying the terms of the Plan to your medical circumstances, or (ii) a statement that such explanation will be provided to you free of charge upon request. If the claim has been denied, in whole or in part, you can appeal the denial to us for a full and fair review. You have at least 180 days to appeal from the claim denial. You may: a. request a review upon written application within 180 days of the claim denial; b. request, free of charge, copies of all documents, records and other information relevant to your claim; and * If this Plan is an ERISA plan, these ERISA provisions apply. However, your employer may issue a Summary Plan Description ("SPD"), If it does, and if there are any conflicts between the SPD and the EIS in regards to your ERISA rights, the SPD provisions will always control. FDL EIS Standard 4/2009 rev'd. C. submit written comments, documents, records and other information relating to your claim, without regard to whether such information was submitted or considered in the initial benefit determination. Dearborn National will make a decision no more than 45 days after we receive your appeal. The time for decision may be extended for one additional 45 day period provided that, prior to the extension, Dearborn National notifies you in writing that an extension is necessary due to special circumstances, identifies those circumstances and gives the date by which it expects to render its decision. If your claim is extended due to your failure to submit information necessary to decide your claim on appeal, the time for your decision shall be tolled from the date on which the notification of the extension is sent to you until the date we receive your response to the request. The written decision will include specific references to the Plan provisions on which the decision is based and any other notice(s), statement(s) or information required by applicable law. 2. Life Insurance Plans Dearborn National will give you a decision no more than 90 days after receipt of due proof of loss, except in special circumstances (such as the need to obtain further information), but in no case more than 180 days after the due proof of loss is received. The written decision will include specific reasons for the decision and specific references to the Plan provisions on which the decision is based. If the claim is denied, in whole or in part, the claimant will receive a written notice giving the following: - the reason for the denial; - the Policy provisions on which the denial is based; - an explanation of what other information, if any, may be needed to process the claim and why it is needed; and - the steps that have to be followed to have the claim reviewed. Any denied claim may be appealed to the Insurer for a full and fair review. The claimant may: a) request a review upon written application within 60 days of receipt of claim denial; b) upon request and free of charge, review pertinent documents, records and other information relevant to the claim and receive copies of same; and C) submit issues, comments, records, and other information in writing. A decision will be made by the Insurer no more than 60 days after receipt of the request for review, except in special circumstances (such as the need to obtain additional evidence), but in no case more than 120 days after the request for review is received. The written decision will include specific reasons for the decision and specific references to the Plan provisions on which the decision is based. The decision will advise you of any other appeal rights you have under the Plan, as well as your right to bring an action under Section 502(a) of ERISA. C. ERISA NOTICE OF YOUR RIGHTS As a participant in the Plan you are entitled to certain rights and protections under the Employee Retirement Income Security Act of 1974 ("ERISA"). ERISA provides that all Plan participants shall be entitled to: Examine, without charge, at the Plan Administrator's office and at other locations, such as work sites and union halls, all Plan documents, including insurance contracts, collective bargaining agreements and copies of all documents filed with the U.S. Department of Labor, such as detailed annual reports and Plan descriptions. Obtain copies of all Plan documents and other Plan information upon written request to the Plan Administrator. The Plan Administrator may make a reasonable charge for the copies. Receive a summary of the Plan's annual financial report. The Plan Administrator is required to furnish each participant with a copy of this summary annual report. In addition to creating rights for the Plan participants, ERISA imposes duties upon the people who are responsible for the operation of the employee benefit Plan. The people who operate your Plan, called "fiduciaries" of the Plan, have a duty to do so prudently and in the interest of you and other Plan participants and beneficiaries. No one, including your employers, your union, or any other persons, may fire you or otherwise discriminate against you in any way to prevent you from obtaining a welfare benefit or exercising your rights under ERISA. If your claim for a welfare benefit is denied in whole or in part you must receive a written explanation of the reason for the • If this Plan is an ERISA plan, these ERISA provisions apply. However, your employer may issue a Summary Plan Description ("SPD"). If it does, and if there are any conflicts between the SPD and the EIS in regards to your ERISA rights, the SPD provisions will always control. FDL EIS Standard 412009 redd e denial. You have the right to have the Plan review and reconsider your claim. Under ERISA, there are steps you can take to enforce your rights. For instance, if you request materials from the plan and do not receive them within 30 days, you may file a suit in federal court. In such a case, the court may require the Plan Administrator to provide the materials and pay you up to $110 a day until you receive the materials, unless the materials were not sent because of reasons beyond the control of the Plan Administrator. If you have a claim for benefits which is denied or ignored, in whole or in part, you may file suit in a state or federal court. If it should happen that Plan fiduciaries misuse the Plan's money, or if you are discriminated against for asserting your rights, you may seek assistance from the U.S. Department of Labor, or you may file suit in federal court. The court will decide who should pay costs and legal fees. If you are successful the court may order the person you have sued to pay these costs and fees. If you lose, the court may order you to pay these costs and fees, for example, if it finds your claim is frivolous. If you have any questions about this statement or about your rights under ERISA, you should contact the nearest office of the Pension and Welfare Benefits Administration, United States Department of Labor, listed in your telephone directory or the Division of Technical Assistance and Inquiries, Employee Benefit Security Administration, United States Department of Labor, 200 Constitution Avenue, NW Washington DC 20210. D. PARTICIPANT'S RIGHTS "W". .,o This Plan shall not be deemed to constitute a contract between the Company and any participant or to be consideration or an inducement for the employment of any participant or employee. Nothing contained in this Plan shall be deemed to give any participant or employee the right to be retained in the service of the Company or to interfere with the right of the Company to discharge any participant or employee at any time regardless of the effect which such discharge shall have upon him or her as a participant of this Plan. * if this Plan is an ERISA plan, these ERISA provisions apply. However, your employer may issue a Summary Plan Description ("SPD"). If it does, and if there are any conflicts between the SPD and the EIS in regards to your ERISA rights, the SPD provisions will always control. FDL EIS Standard 412009 rev'd N Voluntary Accident Insurance Employee Benefit Booklet Dearborn 1 National® SAMPLE IL F01234-0001 Class 1-01 Plan 2 Products and services marketed under the Dearborn National* brand and the star logo are underwritten and/ or provided by Dearborn National* Life Insurance Company (Downers Grove, IL) in all states (excluding New York), the District of Columbia, the United States Virgin Islands, the British Virgin Islands, Guam and Puerto Rico. 01/02/2018 This plan is an "employee welfare benefit plan," ("Plan") as defined in Section 3(l) of the Employee Retirement Income Security Act of 1974, as amended ("ERISA"). 0 This document serves to provide important information about the Plan. It is not the entire Plan document, but a summary of important information about the Plan. In addition to this summary plan description ("SPD"), ERISA requires that you receive a Statement of ERISA Rights, a description of Claim Procedures, and other specific information about the Plan. Your employer or Plan Administrator maintains the full Plan Document. If there is a conflict between the Plan Document and this SPD, the Plan Document controls. A copy of the Plan Document is available for review during normal working hours in the office of the Plan Administrator. The benefits described in your Plan document are provided under a group Plan sponsored by the Employer and insured by Dearborn National Life Insurance Company. SPD 712013 Revised K SUMMARY PLAN DESCRIPTION 1. PLAN NAME: EMPLOYEE WELFARE PLAN If different, the name by which the plan is commonly known. 2. PLAN TYPE: Welfare Benefit Plan providing a Group Accident Insurance Policy and Certificate 3. PLAN SPONSORIEMPLOYER'S NAME AND ADDRESS: ABC COMPANY Name and address of employer sponsoring the Plan or employee organization maintaining the Plan 4. EMPLOYER IDENTIFICATION NUMBER (EIN): 36-4284078 Employer identification number assigned by the IRS to the Plan Sponsor 5. PLAN NUMBER: 501 Number assigned by the Plan Sponsor. This number is used for Form 5500 reporting. Each Plan should be assigned a unique number that is not used more than once. 6. ERISA PLAN YEAR ENDS ON EACH: DECEMBER 31 This is the end of the Plan Year for maintaining the Plan's fiscal records and may be different from she insurance policy year. 7. PLAN ADMINISTRATOR'S NAME, ADDRESS, AND ABC COMPANY TELEPHONE NUMBER: 8. AGENT FOR SERVICE OF LEGAL PROCESS ON THE SAMPLE, INC. PLAN: 9. SOURCES OF FUNDING AND CONTRIBUTIONS: The Plan is funded as an insured plan under Contributions are, for example, employer, employee organization policy number F012345 issued by Dearborn or employee contributions and the method by which the amount of National Life Insurance Company. Contributions the contributions is calculated. to the Plan are made as stated on the Schedule of Funding is the medium by which the Plan is funded. For example, Benefits in the Group Insurance Certificate. The the identity of the insurance company or trust fund through which employer determines the method of funding and the Plan is funded or benefits are provided. contributions, if any, to be made by the participants. SPD 712013 Revised K N-1 10. TYPE OF ADMINISTRATION: This plan is administrated by insurer administration. 11. CLAIM ADMINISTRATION: The Claim Administrator is not the "plan administrator" of your Plan, as defined in Section 3(16)(A) of ERISA. The Plan Administrator has selected Dearborn National Life Insurance Company ("Dearborn National") as the claims administrator of your Plan and has delegated to Dearborn National the authority and discretion to administer the terms of the applicable group policy provisions such as making initial claim determinations concerning the availability of benefits, and the final review and benefit determinations for appealed claims. 12. EACH TRUSTEE'S NAME, TITLE, AND ADDRESS OF PRINCIPAL PLACE OF BUSINESS: This is only applicable if the Plan has trustees. 13. LABOR ORGANIZATION: This is applicable if the Plan is subject to a CBA. 14. PLAN AMENDMENT AND TERMINATION PROCEDURE: The Employer reserves full authority, at its sole discretion, to terminate, suspend, withdraw, reduce, amend or modify the Plan (including any related documents and underlying policies), in whole or in part, at any time, without prior notice. Any amendment, modification, or termination must be in writing and endorsed on or attached to the Plan. The Employer also reserves the right to adjust your share of the cost to continue coverage by the same procedures. Rights with respect to termination of insurance benefits are stated in the Policy and Certificate. The employer can request a Policy change, including a change to benefits, rights and obligations under the Policy but only an officer of Dearborn National Life Insurance Company can approve a change to the Policy. The change must be in writing and endorsed on or attached to the Policy 15. ELIGIBILITY FOR PARTICIPATION AND BENEFITS: These requirements are found in the Policy and Certificate incorporated herein by reference. 16. CIRCUMSTANCES CONCERNING INELIGIBILITY, These requirements are found in the Policy and DISQUALIFICATION, OR DENIAL OR LOSS OF Certificate incorporated herein by reference. BENEFITS: 17. CLAIMS PROCEDURES: The Plan's claims procedures are furnished The procedures which govern claims for benefits and requests for automatically, without charge, as a separate review of denied claims. document. Refer to the ERISA Information Statement incorporated herein by reference. SPD 112013 Revised • ® Administrative Office: COAG � National 1024 31st Street Downers Grove, IL 60515 (A stock life insurance company, herein called "We" "Us" or "Our") Having issued Group Policy No. F021902 (herein called the Policy) to SAMPLE (herein called the Policyholder) GROUP ACCIDENT INSURANCE CERTIFICATE CERTIFIES that You are insured, if You qualify under the ELIGIBILITY AND EFFECTIVE DATES provision, and remain insured in accordance with the terms of the Policy. Your insurance is subject to all the definitions, exclusions, limitations and conditions of the Policy, and it takes effect as stated in the ELIGIBILITY AND EFFECTIVE DATES provision. This Certificate describes Your eligibility for benefits and the terms and provisions of the Policy. It replaces and cancels any other Certificate previously issued to You under the Policy. If the terms and provisions of this Group Insurance Certificate (issued to You) are different from the Policy (issued to the Policyholder), the Policy will govern. Your coverage may be canceled or changed under the terms and provisions of the Policy READ THIS CERTIFICATE CAREFULLY Signed for Dearborn National Life Insurance Company 1616441.- Q4*VAK-- Secretary President Voluntary Group Accident Insurance Certificate with Dependent Accident Benefits Non -Participating THIS IS AN ACCIDENT ONLY CERTIFICATE THIS IS NOT A WORKERS' COMPENSATION POLICY DNL2-604AIC-0316 IL 0 8��. TABLE OF � - &hwV* of&nefi* ....... .......................................................................................................... ................................ .................. y Eft/8UftywmdAffox,Aw 1me P,mvkkm....... --- ........ -........ ------------............. -------_.............. .-_ 7 Ac»h*v,InsumarioL Bamfles.............................................................................................................................................. ........... 9 Acci4nntalDvnh and Dismembe.nrAW Bump%b.................. .................. ----........ --------...... --------. 14 lvn'um'mmm m,d6wimiums -----------------_.,..`__,,,~~,'............................................................... ...... 15 pmrlabifify &n*_____________________________________________________ 16 Y�,nvinufion Prrvs/"...---.......... .-............................................... .......................... ...................................................... 10 Gewra/Provisiom.............. ........... --------------............. -........... ...... -------------------- 20 WormClaim .......................... ,-',......................... ., 22 C. ~� DNL2-604AIC-0316 IL POLICYHOLDER: POLICY NUMBER: POLICY EFFECTIVE DATE: ANNUAL ENROLLMENT PERIOD: SCHEDULE OF BENEFITS SAMPLE F012345-0001 01/01/2018 November 1 - November 30 O ELIGIBILITY: All Active Employees of the Policyholder working in the United States of America who Class 01 are Actively at Work for the Policyholder and who have completed the Eligibility Waiting Period are eligible for the insurance. A full-time Employee is one who regularly works a minimum of 30 hours per week for the Policyholder. Part-time, seasonal and temporary Employees of the Policyholder are not eligible. Eligibility Waiting Period: Current Employees: First of the month following 60 Days of continuous, full-time Active Work New Employees: First of the month following 60 Days of continuous, full-time Active Work Policyholder Contribution: Voluntary Accident 0% of premium Coverage For: Employee, Spouse, and Dependent Child Dependent Benefit amounts unless otherwise stated: 0 Spouse Benefits 100% of the Employee's benefit amount Dependent Child Benefits 100% of the Employee's benefit amount Live birth to age 26 Coverage Type: Group Accident Insurance On and off the job coverage Reduction of Benefits: Benefits terminate at age 70, or retirement whichever comes first. Portability: Benefit Eligibility Voluntary Insured Eligibility Employee, Spouse, Dependent Child(ren) Portability Benefit Duration To Age 65 DNL2-604AIC-03 l6 IL 1 C. Accident Insurance Benefits Burn Benefit Square Centimeters of the body surface 2nd Degree Burn 2nd or 3rd Degree Burn burned Less than 20 $125 $250 DNL2-604AIC-0316 IL 2 Emergency Treatment Benefits Accident Emergency Treatment Benefit Emergency Room $150 Urgent Care Center $150 Physician's Office $50 X -Ray Benefit $50 Accident Follow -Up Treatment Benefit $50 Hospital Admission Benefit $1,200 Intensive Care Unit (ICU) Admission Benefit $2,000 Hospital Confinement Benefit $250 Intensive Care Unit (ICU) Confinement Benefit $500 Accident Injury Benefits Dislocation Benefit Open Reduction Closed Reduction Hip $4,000 $1,500 Knee $2,000 $1,500 Shoulder $2,000 $1,500 Collar bone $1,700 $500 Ankle or foot (excluding toes) $1,500 $500 Lower jaw $1,000 $500 Wrist $750 $500 Elbow $750 $500 Toe $300 $100 Finger $300 $100 Local or no anesthesia (percent of closed reduction) 25% Burn Benefit Square Centimeters of the body surface 2nd Degree Burn 2nd or 3rd Degree Burn burned Less than 20 $125 $250 DNL2-604AIC-0316 IL 2 At least 20 but less than 40 $250 $625 At least 40 but less than 65 $500 $1,250 At least 65 but less than 160 $750 $3,750 At least 160 but less than 225 $1,000 $8,750 225 or more $1,250 $12,500 Skin Grafi Benefit as percentage of Bum 50% 50% Benefit $1,500 $500 Eye Injury Benefit Surgical Repair $300 Removal of foreign body $65 Laceration Benefit Laceration with no repair $35 Total of all lacerations with repair: Less than 5 cm $65 5 cm 15 cm $250 Greater than 15 cm $500 Fracture Benefit Open Reduction Closed Reduction Hip $5,000 $2,000 Leg $3,000 $1,000 Hand (excluding fingers) $1,500 $500 Foot (excluding toestheel) $1,500 $500 wrist $1,500 $500 Elbow $1,500 $500 Ankle $1,500 $500 Kneecap $1,500 $500 Shoulder blade $1,500 $500 Forearm $1,500 $500 Lower jaw $1,500 $500 { DNL2-604AIC-0316 IL 3 Vertebrae (body of) Pelvis Sternum Upper jaw or face (excluding nose) Upper arm Rib Nose Heel Finger Coccyx Toes Vertebral Processes Skull - depressed Skull - simple Chip Fracture (% of Closed Reduction) Concussion Benefit Dental Benefit Broken tooth repaired with crown Broken tooth resulting in extraction Coma Benefit Paralysis Benefit Quadriplegia Paraplegia Hemiplegia Surgical Procedure Benefit Arthroscopy Open abdominal DNL2-604AIC-03161L $2,000 $2,000 $2,000 $1,200 $1,200 $2,200 $1,000 $1,000 $1,000 $500 $500 $3,000 $3,500 $1,800 Surgical Benefits 4 $700 $700 $700 $375 $375 $500 $250 $250 $250 $250 $250 $400 $1,875 $800 25% 5150 $400 $130 $12,500 $12,500 $6,250 $4,750 $300 $1,250 Cranial Hernia Thoracic Surgery Repair of Tendon and/or Ligament Repair of Torn Rotator Cuff Repair of Ruptured Disc Repair of Torn Knee Cartilage Miscellaneous Surgical Procedure Benefit Surgery with General Anesthesia Surgery with Conscious Sedation Outpatient Ambulatory Surgical Center Benefit Increase to applicable Surgical or Miscellaneous Surgical benefit Additional Accident Benefits Major Diagnostic Exam Benefits Epidural Pain Management Benefit Physical Therapy Benefit Rehabilitation Unit Benefit Appliance Benefit Prosthesis Benefit One prosthetic device More than one prosthetic device Blood/Plasma/Platelets Benefit Ambulance Benefit $1,250 $1,250 $1,250 $625 $625 $625 $625 $300 $120 20% $200 $100 $35 $150 $125 $750 $1,500 $200 Ground Ambulance $200 Air Ambulance $1,500 Transportation Benefit $600 Lodging Benefit $125 Accidental Death and Dismemberment Benefits Accidental Death Benefit Employee $40,000 Spouse $40,000 Child(ren) $12,500 DNL2-604AiC-0316 IL 5 0 AO Accidental Death Common Carrier Benefit DNL2-604AIC-03 l6 IL 6 $150,000 $150,000 $25,000 $40,000 $40,000 $12,500 $40,000 $40,000 $12,500 $10,000 $10,000 $3,750 $2,000 $2,000 $625 Employee Spouse Child(ren) Accidental Dismemberment Benefit Loss of both arms and both legs Employee Spouse Child(ren) Loss of bath eyes, or both feet Employee or, both hands, or both arms or both legs Spouse Child(ren) Loss of one eye, or one foot, or Employee one hand, or one arm or one leg Spouse Child(ren) Loss of one or more fingers and/ Employee or one or more toes Spouse Child(ren) DNL2-604AIC-03 l6 IL 6 $150,000 $150,000 $25,000 $40,000 $40,000 $12,500 $40,000 $40,000 $12,500 $10,000 $10,000 $3,750 $2,000 $2,000 $625 ELIGIBILITY AND EFFECTIVE DATE PROVISIONS Who is eligible for this insurance? The eligibility for this insurance is as indicated in the Schedule of Benefits. The Eligibility Waiting Period is further defined in the Schedule of Benefits. 00001 When does Your Contributory insurance become effective? You may enroll for coverage during the Annual Enrollment Period, unless You qualify because of a Change in Family Status. Your Contributory coverage will become effective on the latest of the following dates: 1. If You enroll for coverage prior to the Policy Effective Date, the Policy Effective Date; or 2. If You enroll for coverage after the Policy Effective Date on the first of the month that falls on or next follows the date You sign the Enrollment Form; or 3. If You enroll during an Annual Enrollment Period, the next Anniversary Date following the Annual Enrollment Period. Coverage requested because of a Change in Family Status will become effective on the first of the month that falls on or next follows the date You sign the Enrollment Form. 00003 Change in Family Status If You experience a Change in Family Status, You may enroll for coverage, apply for additional coverage, or request changes to Your current insurance coverage, provided the change is consistent with the Change in Family Status. For Your coverage to become effective, We must receive a completed Enrollment Form within 31 days of the Change in Family Status. Change in Family Status means: I. You get married; or 2. You have a Dependent Child, or You adopt or become the legal guardian of a Dependent Child; or 3. Your Spouse dies or You become divorced; or 4. Your Dependent Child becomes emancipated or dies; or 5. Your Spouse is no longer employed, resulting in a loss of group insurance; or 6. You have a change in employment classification which results in You changing from part-time to full-time, or full- time to part-time employment. 00004A When does Dependent coverage become effective? Your Dependent's coverage will become effective on the latest of: 1. The date Your coverage becomes effective under the Policy, if You have enrolled for Dependent coverage on or before that date; or 2. The first day of the month following the date You enroll for Dependent coverage. When does coverage for a new Spouse become effective? Coverage for a new Spouse starts automatically on Your marriage. Your new Spouse will be a Covered Person for 31 days. Your Spouse will cease to be a Covered Person unless: L You request, in writing within those 31 days continuation of such Dependent coverage; and 2. The required premium is paid. Premium will be charged from the date of marriage. When does coverage jar a newborn Child become effective? DNL2-604AIC-0316 IL M If You have not previously elected Dependent Child coverage, coverage for a newborn Child starts automatically from the moment of birth if a Child is born to You. The newborn Child will be a Covered Person for 31 days. The newborn Child will cease to be a Covered Person after 31 days, unless: 1. You request in writing within those 31 days continuation of such Dependent Child coverage; and 2. The required premium is paid. Premium will be charged from the date of birth. If You currently have Dependent Child coverage, Your newborn Child will be automatically added to Your coverage. Dependent Child coverage will also be extended to newly adopted, foster or step Children, as of the date they become financially dependent on You for support, provided they otherwise meet the definition of a Dependent Child. 00005 What is an Annual Enrollment Period? Unless otherwise specified, Annual Enrollment Period means a period of time during which Employees may enroll for coverage or request changes to their benefit plan. The Annual Enrollment Period is shown on the Schedule of Benefits. Initial requests for coverage or requests for changes to existing coverage made during the Annual Enrollment Period will become effective on the next Policy Anniversary Date. 0000-7 Eligibility after You Terminate Employment If Your coverage ends due to termination of employment and You do not elect continued coverage under the Portability Benefit provision, You must meet all the requirements of a new Employee if You are rehired by the Policyholder at a later date. Exception: If Your coverage ends due to termination of employment and You return to Active Work for the Policyholder in an eligible class within 60 days, We will not apply a new Eligibility Waiting Period as defined in the Schedule of Benefits. 00009 Changes to Your coverage A change in Your coverage may occur if. 1. You enroll for a different benefit amount; or 2. there is a Policy change; or 3. You enter another class and become eligible for a change in benefits. If You are eligible for additional coverage due to a Policy change, the additional coverage will be effective on the date the Policy change is effective, as requested by the Policyholder and agreed upon by Us. If a change results in additional coverage, for reasons other than a Policy change, the change will be effective the first of the month following the later of - 1. f1. The date You enroll for the additional coverage; or 2. The date You become eligible for the additional coverage, if enrollment is not required. Additional Contributory coverage is subject to Our receipt of premium. If a change results in a decrease in coverage the change will take effect immediately. 00010 DNL2-604AIC-0316 IL ACCIDENT INSURANCE BENEFITS Emergency Treatment Benefits What is the Accident Emergency Treatment Benefit? The Accident Emergency Treatment Benefit is payable if a Covered Person receives treatment for an Injury. For purposes of this benefit, Accident Emergency Treatment means treatment received in a Hospital Emergency Room, or Urgent Care Center or a Physician's office within 72 hours of the Accident. This benefit is payable once per Accident, per Covered Person. We will pay either the Hospital Emergency Room benefit, or Urgent Care Center benefit or Physician's office benefit. If treatment is received at more than one location, We will pay the highest level benefit. 00011 What is the X -Ray Benefit? The X -Ray Benefit is payable if a Covered Person receives an x-ray while receiving emergency treatment for an Injury. The x-ray must be taken within 72 hours of the Accident. This benefit is limited to one payment per Accident, per Covered Person. The X -Ray Benefit is not payable for exams listed in the Major Diagnostic Exams Benefit. 00012 What is the Accident Follow-up Treatment Benefit? The Accident Follow-up Treatment Benefit is payable if a Covered Person receives emergency treatment for an Injury and later requires additional treatment for an Injury sustained in the same Accident, over and above emergency treatment administered in the first 72 hours following the Accident. We will pay for one treatment per day for up to 6 treatments per Accident, per Covered Person. The treatment must begin within 30 days of the Accident or discharge from the Hospital. Treatments must be furnished by a Physician in a Physician's office or in a Hospital on an outpatient basis. The Accident Follow-up Benefit is not payable for the same days that the Physical Therapy Benefit is paid. 00013 What is the Hospital Admission Benefit? The Hospital Admission Benefit is payable if a Covered Person is admitted for a Hospital Confinement of at least 18 hours for treatment of an Injury. This benefit is payable only once per Hospital Confinement and only once per Accident, per Covered Person. Hospital Confinements must start within 30 days of the Accident. We will only pay the Hospital Admission Benefit or the Intensive Care Unit Admission Benefit. We will not pay both benefits for a Covered Person for the same Accident. 00014 What is the Intensive Care Unit (ICU) Admission Benefit? The ICU Admission Benefit is payable if a Covered Person is admitted directly to an ICU of a Hospital for at Ieast 18 hours of treatment for an Injury. This benefit is payable only once per period of Hospital Confinement and only once per Accident, per Covered Person. The ICU confinement must start within 30 days of the Accident. We will only pay the Hospital Admission Benefit or the Intensive Care Unit Admission Benefit. We will not pay both benefits for a Covered Person for the same Accident. 00015 What is the Hospital Confinement Benefit? The Hospital Confinement Benefit is payable if a Covered Person is admitted for a Hospital Confinement of at least 18 hours for treatment of an Injury. We will pay this benefit up to 365 days per Accident, per Covered Person. Hospital Confinements must start within 30 days of the Accident. The Hospital Confinement Benefit and the Rehabilitation Unit Benefit are not paid for the same date of service. The highest eligible benefit will be paid. If a Covered Person is confined in an ICU for more than 15 days, We will pay the Hospital Confinement Benefit beginning on the 16th day. The total amount payable per Accident will not exceed 365 days for Hospital Confinement and 15 days for ICU. We will not pay both benefits for the same date of service. 00016 0 DNL2-604AIC-0316 IL What is the Intensive Care Unit (ICU) Confinement Benef a The Intensive Care Unit Confinement Benefit is payable if a Covered Person is confined to a Hospital Intensive Care Unit for treatment of an Injury. This Intensive Care Unit Confinement Benefit is payable for up to 15 days per Accident, per Covered Person. ICU confinement must start within 30 days of the Accident. If a Covered Person is confined in an ICU for more than 15 days, We will pay the Hospital Confinement Benefit beginning on the 16th day. The total amount payable per Accident will not exceed 365 days for Hospital Confinement and 15 days for ICU. We will not pay both benefits for the same date of service. 00017 Accident Injury Benefits What are the Accident Injury Benejits7 The Accident Injury Benefits are payable when a Covered Person receives treatment for an Injury sustained in an Accident. 00018 Dislocation Benefit: The Dislocation Benefit is payable for a Covered Person who sustains a Dislocation as the result of an Injury. The Dislocation must be diagnosed by a Physician within 90 days after the date of the Accident. The treatment of the Dislocation must require anesthesia by a Physician. It can be corrected by open (surgical) or closed (non-surgical) Reduction. The applicable amount payable is listed in the Schedule of Benefits. We will pay for no more than two Dislocations per Accident, per Covered Person. We will pay for the first Dislocation of any individual joint per Accident. 00019 Burn Benefit The Burn Benefit is payable for a Covered Person who sustains bums as the result of Injuries received in an Accident. The .- Covered Person must be treated by a Physician within 72 hours after the Accident. If the Covered Person meets more than one of the bum classifications, as shown in the Schedule of Benefits, We will pay for only one burn at the highest amount. We will pay this benefit once per Covered Person per Accident. The applicable amount payable is listed on the Schedule of Benefits. 00020 Skin Graft Benefit The Skin Graft Benefit is payable for a Covered Person who receives a skin graft for a bum for which a benefit was received under the Burn Benefit. This benefit is not payable for elective procedures and/or cosmetic surgery that are not the result of the Accident. This benefit is payable once per Covered Person per Accident. 00021 Eye Injury Benefit The Eye Injury Benefit is payable for a Covered Person who requires eye surgery or the removal of a foreign object from the eye by a Physician as a result of an Injury. The surgery or the removal must occur within 90 days after the date of the Accident. This benefit is payable once per Covered Person per Accident. 00022 Laceration Benefit The Laceration Benefit is payable for a Covered Person who sustains Lacerations as the result of an Injury. A Laceration is a cut. The Laceration must be repaired by a Physician within 72 hours after the Accident. We will pay the applicable amount listed on the Schedule of Benefits. The benefit payable will be based on the total length of all Lacerations received in any one .occident which require repair. If the Laceration is severe enough to require stitches but the Physician chooses to repair it another way, We will pay it as if the Laceration was repaired with stitches. If a Covered Person sustains a Laceration on a finger, toe, hand, foot or eye and later loses that finger, toe, hand, foot or eye as a result of the same Accident, We will subtract the amount We paid under the Laceration Benefit from the Accidental Dismemberment Benefit for loss of Finger, Toe, Hand, Foot or Eye benefit. 00023 DNL2-604AIC-03 l6 IL 10 Fracture Benefit The Fracture Benefit is payable for a Covered Person who sustains a Fracture as the result of an Injury. The Fracture must be diagnosed by a Physician within 14 days after the Accident and must require open (surgical) or closed (non-surgical) Reduction by a Physician. The applicable amount payable is listed on the Schedule of Benefits. We will pay no more than one Fracture Benefit per bone, per Accident. If multiple bones are Fractured in an Accident, We will pay no more than two times the highest Fracture Benefit that would otherwise be payable for any one of the bones involved. We will pay the benefit amount shown in the Schedule of Benefits for the closed Reduction for Chip Fractures. 00024 Concussion Benefit The Concussion Benefit is payable for a Covered Person who sustains a concussion as the result of an Injury. The Covered Person must be diagnosed by a Physician within 72 hours after the date of the Accident using any type of medical imaging procedures. This benefit is payable once per Covered Person per Accident. 00025 Dental Benefit The Dental Benefit is payable for a Covered Person who requires dental work as the result of an Injury. This benefit is payable for newly broken teeth repaired with a crown or resulting in extraction. The dental services must begin within 60 days of the Accident. We will pay for no more than one crown and one extraction per Accident, per Covered Person, regardless of the number of teeth involved. 00026 Coma Benefit The Coma Benefit is payable for a Covered Person who sustains a Coma as the result of an Injury. The Coma must occur within 14 days of the Accident and last for a period of seven or more consecutive days. Medically induced Comas are not covered under the Coma Benefit. For the purpose of this benefit, Coma means a continuous state of profound unconsciousness characterized by the absence of purposeful response to commands, including: • Eye opening; • Verbal responses; and • Motor responses. The Coma must require intubation for respiratory assistance. 00027 Paralysis Benefit The Paralysis Benefit is payable for a Covered Person who becomes Paralyzed as a result of spinal cord Injuries sustained in an Accident. The Paralysis must be confirmed by a Physician and be continuous for a period of at least 30 days. The Paralysis Benefit is listed in the Schedule of Benefits and will be paid according to the number of paralyzed limbs. This benefit will be payable once per Covered Person, 00028 Surgical Benefits Surgical Procedure Benefit The Surgical Procedure Benefit is payable for a surgery performed within 180 days of an Accident which resulted in an Injury. Two or more surgical procedures performed through the same incision will be considered one operation, and benefits will be paid based upon the surgery with the highest benefit amount. The covered surgeries are listed in the Schedule of Benefits. 40024 Miscellaneous Surgical Procedure Benefit DNL2-604AIC-0316 IL 1 l The Miscellaneous Surgical Procedures Benefit is payable for any other surgery to a Covered Person as the result of an Injury sustained in an Accident that is not covered by any other surgical benefit. The surgery must be performed within 180 days of the Accident. Only one Miscellaneous Surgical Procedures Benefit is payable per 24-hour period even though more than one surgical procedures may be performed. 00030 Outpatient Ambulatory Surgical Center Benefit The Outpatient Ambulatory Surgical Center Benefit is payable when a Covered Person undergoes a surgery listed in the Surgical Procedures Benefit or the Miscellaneous Surgical Procedures Benefit and the surgery is performed at an Outpatient Ambulatory Surgical Center. The Outpatient Surgical Center benefit will increase the Surgical Procedures Benefit or Miscellaneous Surgical Procedures Benefit payable by the amount listed in the Schedule of Benefits. 00031 Additional Accident Benefits What is the Major Diagnostic Exams Benefit? The Major Diagnostic Exams Benefit is payable when a Covered Person requires one of the following exams for an Injury: computerized tomography (CT scan), computerized axial tomography (CAT), magnetic resonance imaging (MRI), or electroencephalography (EEG). These exams must be performed in a Hospital or a Physician's office and performed within 90 days of the Accident. This benefit is limited to one payment per Accident. Exams listed in the Major Diagnostic Exams Benefit are not payable under the X -Ray Benefit. 00032 What is the Epidural Pain Management Beneft? The Epidural Pain Management Benefit is payable when a Covered Person receives an epidural administered for pain management in a Hospital or a Physician's office for an Injury. The epidural anesthesia must be administered within 60 days after the Accident. This benefit is not payable for an epidural administered during a surgical procedure. This benefit is payable no more than once per covered Accident, per Covered Person. 00033 What is the Physical Therapy Benefit? The Physical Therapy Benefit is payable when a Covered Person receives emergency treatment for an Injury and later receives physical therapy from a licensed Physical Therapist. The physical therapy must be on the advice of a Physician. Physical therapy must be for Injuries sustained in an Accident and must start within 30 days of the Accident or discharge from a Hospital Confinement due to an Injury. We will pay for one treatment per day for up to a maximum of ten treatments per Accident, per Covered Person. The treatment must be completed within six months after the Accident. The Physical Therapy Benefit is not payable for the same days that the Accident Follow -Up Treatment Benefit is paid. 00034 What is the Rehabilitation Unit Benefit? The Rehabilitation Unit Benefit is payable when a Covered Person is admitted for a Hospital Confinement and is immediately transferred to a bed in a Rehabilitation Unit of a Hospital for treatment of an Injury. This benefit is limited to 30 days for each Covered Person per Accident. The Rehabilitation Unit Benefit will not be payable for the same days the Hospital Confinement Benefit is paid. The highest eligible benefit will be paid. 00035 What is the Appliance Benefit? The Appliance Benefit is payable when a Covered Person receives a medical appliance, prescribed by a Physician, as an aid in personal locomotion, for an Injury. The appliance must be prescribed by a Physician within 90 days after the date of the Accident. Benefits are payable for the following types of appliances: wheelchair, cane, leg brace, back brace, walker, and a pair of crutches. This benefit is payable once per Accident, per Covered Person. 00036 DNL2-604AIC-0316 IL 12 What is the Prosthesis Benefit? The Prosthesis Benefit is payable when a Covered Person requires use of one or more Prosthetic Devices as a result of an Injury. The prosthetic(s) must be prescribed by a Physician and received within 365 days of the Accident. This benefit is not payable for repair or replacement of existing Prosthetic Devices, even if the Prosthetic Device is damaged as a result of the Accident. Prosthetic Devices do not include hearing aids, wigs, or dental aids to include false teeth. We will not pay this benefit for a joint replacement. This benefit is payable once per Accident, per Covered Person. 00037 What is the Blood/Plasma/Platelets Benefit? The Blood/Plasma/Platelets Benefit is payable when a Covered Person receives blood/plasma and/or platelets for the treatment of an Injury. The blood/plasma and/or platelets must be administered within 90 days of the Accident. This benefit does not pay for immunoglobulins. It is payable only one time per Accident, per Covered Person, 00036 What is the Ambulance Benefit? The Ambulance Benefit is payable when a Covered Person requires ambulance transportation to a Hospital for an Injury. Ambulance transportation must be within 72 hours of the Accident. A licensed professional ambulance company must provide the ambulance service. 1:-0039 What is the Transportation Benefit? The Transportation Benefit is payable when a Covered Person requires transportation from his residence to a facility for medical treatment due to an Injury sustained in an Accident. The location of the treatment must be on the advice of the local Physician for a Hospital Confinement, outpatient surgery or a Physician's office visit. This benefit is not payable for transportation when the facility is located within a 50 -mile radius of the residence of the Covered Person or for transportation by ambulance or air ambulance. This benefit is payable for up to three round trips per Accident, per Covered Person. 0 We will also pay a Transportation Benefit for a companion to travel commercially (plane, train or bus) if accompanying a covered Dependent Child who requires medical treatment due to an Injury sustained in an Accident. 00040 What is the Lodging Benefit? The Lodging Benefit is payable if a companion accompanies a Covered Person who is admitted for a Hospital Confinement for the treatment of an Injury and requires overnight lodging. This benefit is payable only for the same period of time the injured Covered Person is confined to the Hospital. The Hospital and lodge motel/hotel must be more than 50 miles from the residence of the Covered Person. This benefit is limited to one lodge room per night and is payable up to 30 days per covered Accident. The companion must incur an expense for the lodging. For the purposes of this benefit, Lodging means an establishment licensed under the laws where it is located, such as a motel, hotel or other facility that provides sleeping accommodations to the general public in exchange for a fee. 00041 DNL2-604AIC-0316 IL 13 ACCIDENTAL DEATH and DISMEMBERMENT BENEFITS What is the Accidental Death Benefit? The Accidental Death Benefit is payable if a Covered Person dies within 90 days of the date of an Accident as a result of Injuries received from that Accident. If We pay this benefit for a Covered Person, We will not pay the Accidental Death Common Carrier Benefit for the same Covered Person. 00044 What is the Accidental Death Common Carrier Benefit? The Accidental Death Common Carrier Benefit is payable if a Covered Person dies within 90 days of the date of an Accident as a result of Injuries received from that Accident, while a fare paying passenger on a Common Carrier. A Common Carrier means commercial airplanes, trains, buses, trolleys, subways, ferries and boats that operate on a regularly scheduled basis between predetermined points. A Common Carrier operates under a license to transport passengers for hire. A Common Carrier does not include private, on demand, or chartered transportation in which a Covered Person is a passenger at the time of the Accident. If We pay this benefit for a Covered Person, We will not pay the Accidental Death Benefit for the same Covered Person. 00045 What is the Accidental Dismemberment Benefit? The Accidental Dismemberment Benefit is payable if a Covered Person suffers a loss listed in the Schedule of Benefits due to Injuries sustained in an Accident. The loss must occur within 90 days of the Accident. We will pay only one loss and the highest single benefit per Covered Person for Dismemberment. Benefits will be paid only once per Covered Person, per Accident. If death and Dismemberment result from the same Accident, We will pay only the applicable Accidental Death Benefit. 00047 DNL2-604AIC-0316 IL 14 LIMITATIONS AND EXCLUSIONS Limitations: In additions to the limitations and exclusions listed in the individual benefits, We will not pay any benefit for an Injury resulting from or caused by: 1. any disease, Illness or infirmity of mind or body, and any medical or surgical treatment thereof; or 2. any error, mishap or malpractice during a medical, diagnostic or surgical treatment or procedure for any Illness; or 3. cosmetic surgery or other elective procedure that is not medically necessary; or 4. suicide or attempted suicide, while sane or insane; or 5. any intentionally self-inflicted Injury; or 6. war, declared or undeclared, whether or not a member of any armed forces; or 7. travel or flight in any aircraft while a member of the crew, or while engaged in the operation of the aircraft, or giving or receiving training or instruction in such aircraft; or 8. commission of, participation in, or an attempt to commit an assault or felony as defined by state or federal law; or 9. The Covered Person being under the influence of any narcotic, hallucinogen, barbiturate, amphetamine, gas or fumes, poison or any other controlled substance as defined in Title 1I of the Comprehensive Drug Abuse Prevention and Control Act of 1970, as now or hereafter amended, unless prescribed by a Physician and used in the manner prescribed. Conviction is not necessary for a determination of being under the influence; or 10. The Covered Person being intoxicated as defined by the laws of the jurisdiction in which the Accident occurred or .08% blood alcohol content if the jurisdiction in which the Accident occurred does not define intoxication. Conviction is not necessary for a determination of being intoxicated; or 11. active participation in a Riot. Riot means all forms of public violence, disorder, or disturbance of the public peace, by three or more persons assembled together, whether with or without a common intent and whether or not damage to person or property or unlawful act is the intent or the consequence of such disorder; or 12. driving or riding in any vehicle used in a race, speed or endurance test or for acrobatic or stunt driving. Exclusions: We will not pay any benefits for an Accident that occurred while the Covered Person was operating a motor vehicle and was either: 1. under the influence of any narcotic, hallucinogen, barbiturate, amphetamine, gas or fumes, poison or any other controlled substance as defined in Title 11 of the Comprehensive Drug Abuse Prevention and Control Act of 1970, as now or hereafter amended, unless prescribed by a Physician and used in the manner prescribed. Conviction is not necessary for a determination of being under the influence; or 2. intoxicated as defined by the laws of the jurisdiction in which the Accident occurred or .08% blood alcohol content if such jurisdiction does not define intoxication. Conviction is not necessary for a determination of being intoxicated. 00056 DNL2-604AIC-0316 IL 15 O PORTABILITYBENEFIT What is the Portability Benefit? If Your Voluntary group Accident Insurance terminates, You may elect to continue Your insurance in accordance with the terms of the Policy by paying premiums directly to Us. If You elect Portability, You may also elect to continue Dependent coverage under the conditions set forth below, but You may not enroll for Dependent coverage at the time You elect Portability. The coverages eligible for Portability and the Portability Benefit Duration are in the Schedule of Benefits. The premiums for the coverage continued under the Portability Benefit will not be the same as the premium You are charged for Your group insurance under the Policy. Portability premium will be based on: 1. Our current rates for the applicant's age and class of risk at the time he elects Portability; and 2. the amount of insurance continued under Portability. The maximum amount of insurance which may be continued under Portability is the amount of insurance You had in force under the Policy at the time the Portability Benefit is elected, not to exceed the Portability Benefit amount as set forth in the Schedule of Benefits. What are Eligibility Requirements for Employee Portability? To be eligible for Portability, You must meet the following conditions: 1. You must have been insured under the Policy or the Policy it replaced for at least one year prior to electing Portability; and 2. Your insurance, or a portion of it, must have terminated for reasons other than Illness, Injury, retirement or termination of the Policy; and 3. You must be less than 60 years of age. You must submit a Portability Request Form and the first premium within 31 days after the date Your insurance terminated. We reserve the right to rescind any coverage amounts continued under Portability if it can be shown that You misrepresented any of the information provided to support eligibility for Portability. Can Dependent Insurance be Ported if Your Eligibility Terminates or if Your Spouse's Coverage Terminates? If Dependent coverage ceases, You or Your covered Spouse may elect Portability of Dependent coverage as follows: 1. You may elect Portability of Dependent coverage if You meet the eligibility requirements to port Your insurance as shown above and You are covered for Dependent coverage on the date Your coverage ceases. 2. Your Spouse may elect Portability of his group insurance, and/or insurance on covered Dependent Child(ren) if: a. Your Spouse's insurance terminates because You die or Your eligibility for Dependent coverage ceases for reasons other than retirement or termination of the Policy and Your Spouse is less than 60 years of age, and b. Your Spouse had elected Dependent coverage on Eligible Dependent Child(ren) and such coverage is still in force when Your eligibility for Dependent coverage ceased for reasons other than retirement or termination of the Policy. Your Spouse must have been insured for such coverage(s) under the Policy for at least one year prior to electing Portability. Exception: Portability is not available if Your Spouse's insurance terminates because he no longer meets the Policy definition of a Dependent Spouse. If these criteria are met, You or Your Spouse, must submit a Portability Request Form and pay the first premium within 31 days after the date such Dependent coverage terminated. We reserve the right to rescind any coverage amounts continued under Portability if it can be shown that You or Your Spouse misrepresented any information provided to support eligibility for Portability of Dependent insurance. A Portability Request Form means a form acceptable to Us which You complete and submit to elect coverage under the Portability Benefit. When will Portable Coverage Terminate? Coverage continued under the Portability Benefit will terminate at the earliest of the following: DNL2-604A1C-03161L 16 1. the date You return to .fictive Work with the Policyholder while the Policy is still in force; or 2. the date required premiums are not paid when due; or 3. the end of the Portability Benefit Duration in the Schedule of Benefits; or 4. the premium due date following the date a Dependent ceases to meet the definition of an eligible Dependent. 00057 DNL2-604AIC-0316 IL 17 TERMINATION PROVISIONS When does Your coverage under the Policy end? Unless coverage is continued under the Portability Benefit, Your coverage terminates on the earliest of the following dates: 1. the date on which the Policy is terminated; or 2. the date You stop making any required contribution toward payment of premiums; or 3. the effective date of an amendment to the Policy which terminates insurance for the class to which You belong; or 4. the earliest of: a. the date You die; or b. the date You are no longer a member of a class eligible for this insurance; or c. the date You request termination of coverage under the Policy; or d. the first of the month following the date You reach age 70; or e. the date You are no longer Actively at Work as a result of a Disability, layoff, or leave of absence, or military leave. Termination will not affect an eligible claim for Injuries the Covered Person sustained in an .occident which occurred while the coverage was in force. You may continue to be eligible for coverage, as follows: Disability Until the end of the twelfth week following the week in which the Disability began, if all premiums are paid when due. Layoff Until the end of the thirtieth (30) day which the layoff began, if all premiums are paid when due. Leave of Until the end of the thirtieth (30) day which the leave of absence began, if all premiums are paid when due, Absence as governed by the Policyholder's Human Resource policy on family and medical leaves of absence or in accordance with the FMLA provision below. Military Leave Until the end of the thirtieth (30) day in which the military leave began, if all premiums are paid when due. If coverage terminates due to termination of employment, group insurance shall terminate at 12:00 midnight on the last day for which premium was paid. For the purposes of this provision, Disability means You are unable to perform all of the Material and Substantial Duties of Your Regular Occupation. 00058 IL Will coverage be continued if You are eligible for leave under FMLA? In the event You are eligible for and the Policyholder approves a leave of absence under the Family and Medical Leave Act of 1993 and its amendments (FMLA), or any applicable state family and medical leave law provided the Policyholder continues to pay Your required premium, Your coverage will continue for a period of up to the later of: 1. the leave period permitted by the federal FMLA; or 2. the leave period permitted by applicable state law. You are eligible for leave under this Act in order to provide care: L After the birth of a Child; or 2. After the legal adoption of a Child; or 3. After the placement of a foster Child in Your home; or 4. To a Spouse, Child or parent due to their serious Illness; or 5. For Your serious health condition; or 6. For any event later added by amendment to the Act. During Your FMLA period: 1. The Policyholder must remit the premium required by the Policy; and DNL2-604AIC-0316 IL 18 2. Coverage will terminate if You do not return to work as scheduled according to the terms of Your leave of absence agreement with the Policyholder. 00059 When does Dependent coverage end? Unless insurance is continued under the Portability Benefit provision, Dependent coverage will end on the earliest of: I . the first premium due date You are no longer an Employee (except in the case of Disability, layoff, or leave of absence, or military leave as set forth above); or 2. the date on which the Policy is terminated; or 3. the first premium due date You stop making any required contribution toward payment of premiums; or 4. the effective date of an amendment to the Policy which terminates insurance for the class to which You belong; or 5. the first premium due date You: a. are no longer a Member of a class eligible for this insurance; or b. request termination of coverage under the Policy; or c. reach age 70; or d. are retired or pensioned; or 6. the date a Dependent Child or Spouse no longer meets the Policy definition of Dependent; or 7. the first of the month following 90 days after the date of Your death. Premium will not be payable during this period. Coverage will continue past the age limit for Dependent Children who are primarily dependent on You for support and who cannot work to support themselves due to a physical or mental incapacity which began before the age limit was reached. Written proof of such incapacity must be provided to Us on request. 00060 O DNL2-604AIC-0316 IL 19 GENERAL PROVISIONS Entire Contract; Changes The Entire Contract consists of. 1. The Group Insurance Policy; 2. The Application; 3. This Certificate; 4. The Enrollment Forms of the persons insured, including any individual statements; and 5. Any riders; endorsements; or amendments to the Policy or the Certificate. Coverage under the Policy can be amended by mutual consent of the Policyholder and Us. No change in the Policy is valid unless approved in writing by one of Our officers. No agent has the right to change the Policy or to waive any of its provisions. Statements on the Application All statements made in any signed Application, or other written and signed statement, are considered representations and not warranties (absolute guarantees). No representation by: 1. the Policyholder in applying for the Policy will make it void unless the representation is contained in the signed Application or other written and signed statement; or 2. any Employee in enrolling for insurance under the Policy will be used to reduce or deny a claim unless a copy of the Application for Insurance or other written and signed statement, if applicable, has been signed by the Employee and has been given to the Employee. Legal Actions Unless otherwise provided by federal law, no legal action brought to recover on the Policy of any kind may be filed against Us: 1. until 60 days after proof of claim has been given; or 2. more than 3 years after proof of the Accident must be filed, unless the law in the state where You live allows a longer period of time. Clerical Error Clerical error or omission by Us to the Policyholder will not: 1. Prevent You from receiving coverage, if You are entitled to coverage under the terms of the Policy; or 2. Cause coverage to begin or coverage to continue for You when the coverage would not otherwise be effective. If the Policyholder gives Us information about You that is incorrect, We will: 1. Use the facts to decide whether You have coverage under the Policy and in what amounts; and 2. Make a fair adjustment of the premium. Incontestability The validity of the Policy shall not be contested, except for non-payment of premiums, after it has been in force for two years from the date of issue. No statement You made relating to Your insurability under the Policy will be used to contest the validity of the insurance with respect to which such statement was made after such insurance has been in force for two years during Your lifetime, and in no event unless the statement is contained in a written instrument signed by You and a copy is given to You or to Your beneficiary. Premium Provisions Premiums are payable in United States dollars on or before their due dates. The Policyholder has agreed to deduct from Your pay any premiums payable for Your Contributory coverage. The Policyholder agrees to and is responsible for remitting such premiums for the entire time coverage under the Policy is in effect. Premium charges for increases in insurance amounts becoming effective during a Policy month will begin on the next premium due date. Premium charges for insurance terminating during a Policy month will cease at the end of the month in which such insurance terminates. This method of charging premium is for accounting purposes only. It will not extend any insurance coverage beyond the date it would otherwise have become effective or terminated. DNL2-604AIC-0316 IL 20 Misstatement of Age If You have misstated Your age or the age of a Dependent, the true age will be used to determine: 1. the effective date or termination date of insurance; and 2. the amount of insurance; and 3. any other rights or benefits. Premiums will be adjusted to reflect the premiums that You should have been paid if the true age had been known. Conformity with State Statutes and Regulations If any provision of the Policy conflicts with the statutes and regulations of the state in which the Policy was issued or delivered, it is automatically changed to meet the minimum requirements of the statute. Assignment Insurance, if any, on Your Spouse or Child is not assignable. You have the right to make an absolute assignment of all rights and interest under the Policy to any person permitted by law, subject to all of the following terms and conditions: 1. The assignment must transfer rights and interest of all insurance under the Policy. You may not make a collateral or partial assignment. 2. Your rights and interest under the Policy include, but are not limited to the following: 3. 4. a. the right to make contributions required to keep the insurance in force; b. the right to change the beneficiary; and c. the right to convert. The assignment will apply to all insurance under the Policy in effect on the date of the assignment or which becomes effective after that date. The assignment will have no effect unless it is made in writing, signed by You, and delivered to the Policyholder during Your lifetime. The assignment will take effect on the date You signed the assignment, provided the Policyholder receives it before benefits are paid or any other action is taken by Us. If We have paid benefits or taken any other action before the Policyholder receives Your designation, the assignment will not go into effect. Neither We, nor the Policyholder are responsible for the validity, sufficiency or effect of the assignment. All insurance benefits will be paid in accordance with the beneficiary designation on file with the Policyholder, and the beneficiary provisions of the Policy (not to the assignee unless the assignee is also the beneficiary). Any payment made by Us in accordance with the beneficiary designation on file with the Policyholder and the beneficiary provisions of the Policy will fully discharge Us to the extent to the payment. You may only change an absolute assignment made by You with written consent of the absolute beneficiary(s), and a copy of the written consent must be on file with the Policyholder. You may not make any assignment which is inconsistent with these requirements. On Your death, Your beneficiary may make an assignment of benefits to a funeral home provided that We receive written notice of the assignment prior to payment of any benefits. Any payment made by Us to a beneficiary prior to receiving notice of the assignment will fully discharge Us to the extent of the payment. Retention of Discretion We shall have the exclusive right to interpret the terms of the Policy. The decision about whether to pay any claim, is within Our sole discretion and such decisions shall be final and conclusive. 00061 IL 0 DNL2-604AIC-0316 IL 21 UNIFORM CLAIM PROVISIONS Initial Notice of Claim We must receive written notice of the Accident within 30 days of the date of the Accident, or as soon as reasonably possible. The Policyholder can assist with the appropriate telephone number and address of Our Claim Department. Notice may be sent to Our Claim Department at the address shown on the claim form or given to any authorized agent of Ours. Telephonic Claim Notification In lieu of written Proof, We may accept telephonic notice and Proof. All time limits in the Policy applicable to the filing of Proof and commencement of Legal Actions shall apply to notice and Proof filed by telephone or other means acceptable to Us. Claim Forms Within 15 days of Our being notified in writing of a claim, We will supply the claimant with the necessary claim forms. The claim form must be completed and signed by the claimant, the Policyholder and the claimant's Physician. If the appropriate claim forms are not received within 15 days, then the claimant will be considered to have met the requirements for written Proof only if We receive written Proof, which describes the occurrence, extent and nature of the Accident and Injuries. 77me Limitfor Filing Your Claim We must receive written Proof within 90 days after the date of the Accident. If it is not possible to give Us written Proof within 90 days, the claim is not affected if the Proof is given as soon as possible. However, unless the claimant is legally incapacitated, written Proof must be given no later than one year after the time Proof is otherwise due. No benefits are payable for claims submitted more than 1 year after the time Proof is due. However, benefits may be paid if it can be shown that: 1. It was not reasonably possible to give written Proof during the one year period, and 2. Proof was given as soon as was reasonably possible. We will give You written response to Your claim, usually within 45 days. The time for decision may be extended for two additional 30 day periods provided that, prior to any extension period, We notify You in writing that an extension is necessary due to matters beyond Our control, identify those matters and gives the date by which We expect to render a decision. If the extension is due to Your failure to submit information necessary to decide Your claim, the time for decision shall be tolled from the date on which We send You notice of the extension until the date We receive Your response to Our request. This period will be no longer than 45 days after We have requested the information. At that time We will decide Your claim based on the information We have at that time. Physical Examinadon/Autopsy On receipt of a claim, We may have a Covered Person examined, at Our expense, at any reasonable time. We may have an autopsy performed, at Our expense, if it is not prohibited by any applicable local law(s). Who will receive Your Insurance Benefits? Insurance benefits are payable to You unless such benefits have been assigned. The Policyholder may not be named as beneficiary. In the event of Your death prior to insurance benefits being paid, benefits will be paid according to the Facility of Payment provision. Facility of Payment If no named beneficiary survives You or if You do not name a beneficiary, We will pay the amount of insurance: 1. to Your Spouse, if living; if not, 2. in equal shares to Your then living natural or legally adopted Children, if any; if none, 3. in equal shares to Your father and mother, if living; if not, 4. in equal shares to Your brothers and/or sisters, if living; if not, 5. to Your estate. 00062 DNL2-604AIC-0316 IL 22 Do I have the Right to Appeal a Claim Denial? If Your claim is denied, You will receive a written notice giving the following: the reason or reasons for the denial; . the Policy provisions on which the denial is based; - an explanation of what other material or information, if any, may be needed to process the claim and why it is needed; - the steps that You have to follow to have the claim reviewed; - a statement that You have the right to bring a civil action under section 502(a) of ERISA after You appeal Our decision and after You receive a written denial on appeal; and - if an internal rule, guideline, protocol, or other similar criterion was relied upon in making the denial, either (i) the specific rule, guideline, protocol or other similar criterion; or (ii) a statement that such a rule, guideline, protocol or other similar criterion was relied upon in making the denial and that a copy will be provided free of charge to You upon request; and if denial is based on medical judgment, either (i) an explanation of the scientific or clinical judgment for the determination, applying the terms of the Plan to Your medical circumstances, or (ii) a statement that such explanation will be provided to You free of charge upon request. If the claim has been denied, You can appeal the denial to Us for a full and fair review. You have at least 180 days to appeal from the claim denial. You may: a. request a review upon written application within 180 days of the claim denial; b. request, free of charge, copies of all documents, records and other information relevant to Your claim; and r. submit written comments, documents, records and other information relating to Your claim, without regard to whether such information was submitted or considered in the initial benefit determination. O We will make a decision no more than 45 days after We receive Your appeal. The time for decision may be extended for one additional 45 day period provided that, prior to the extension, We notify You in writing that an extension is necessary due to special circumstances, identifies those circumstances and gives the date by which it expects to render its decision. If Your claim is extended due to Your failure to submit information necessary to decide Your claim on appeal, the time for Your decision shall be tolled from the date on which the notification of the extension is sent to You until the date We receive Your response to the request. 0 The decision on appeal will provide the following: - the reason or reasons for the decision; - the Plan provision on which the decision is based; - a statement that You are entitled to receive, upon request and free of charge, reasonable access to, and copies of, all documents, records, and other information relevant to Your claim for benefits; - a statement of the claimant's right to bring an action under section 502(a) of ERISA; - if an internal rule, guideline, protocol, or other similar criterion was relied upon in making the decision either (i) the specific rule, guideline, protocol or other similar criterion; or (ii) a statement that such a rule, guideline, protocol or other similar criterion was relied upon in making the decision and that a copy will be provided free of charge to You upon request; if the decision is based on medical judgment, either (i) an explanation of the scientific or clinical judgment for the determination, applying the terms of the Plan to Your medical circumstances, or (ii) a statement that such explanation will be provided to You free of charge upon request; and the following statement: "You and Your plan may have other voluntary alternative dispute resolution options, such as mediation. One way to find out what may be available is to contact Your local U.S. Department of Labor Office and Your State insurance regulatory agency." 000631L DNL2-604AIC-0316 IL 23 .__ GENERAL DEFINITIONS Accident or Accidental means an unexpected event that was not reasonably foreseeable which occurs while the Covered Person's insurance is in effect. 00064 IL Actively at Work or Active Work means that You must: I. work for the Policyholder on a full-time active basis; or 2. work at least the minimum number of hours set forth in the Schedule of Benefits: and either: a. work at the Policyholder's usual place of business; or b. work at a location to which the Policyholder's business requires You to travel; and 3. not be a temporary or seasonal Employee; and. 4. be paid regular earnings by the Policyholder. 00065 Anniversary Date means the annual month and day that corresponds with the Policy Effective Date. 00066 Annual Enrollment Period means the annual timeframe defined in the Schedule of Benefits when Employees can make benefit changes. 00067 Application means the document which sets forth the eligible classes, the amounts of insurance, and other relevant information pertaining to the plan of insurance for which the Policyholder applied. 00068 Certif cate means this Accident Insurance Certificate. 00069 Child(ren) means: L Your natural or step Child under the age stated in the Schedule of Benefits; or 2. a Child under the age stated in the Schedule of Benefits placed with You for adoption from the date of placement or the date You are party in a suit in which You seek the adoption of the Child, or a child who is in Your custody, pursuant to an interim court order of adoption. Eligibility will continue unless the Child is removed from placement; or 3. a Child of Your Child who is Your dependent for federal income tax purposes at the time application for coverage of the Child of Your Child is made. 000701L Chip Fracture means a Fracture in which a piece of the bone is broken off near a joint at a place where a ligament is usually attached. A Chip Fracture must be diagnosed by a Physician by an x-ray. 00071 Contributory means You pay all or a portion of the premium for this insurance coverage. 00072 Covered Person means an Employee or Eligible Dependent covered under the Policy. 00073 Dependent means: 1. Your lawful Spouse; and/or 2. Your Child(ren) who are not in active military service; and are within the age limits set forth in the Schedule of Benefits. 00074 Dislocation means a completely separated joint due to an Injury. The Dislocation must be diagnosed by a Physician within 90 days after the date of the Injury and require correction by a Physician. It can be corrected by open or closed Reduction. 00075 Dismemberment means the loss, with or without reattachment, of one or more of the following body parts as the result of an Injury sustained within 90 days of a covered Accident. • Arm: actual severance above the elbow DNL2-604AIC-0316 IL 24 • Leg: actual severance above the knee • Hand: actual severance above the wrist • Foot: actual severance above the ankle • Finger: actual severance at the joint (proximate to the first interphalangeal joint) where it is attached to the hand • Toe: actual severance at the joint (proximate to the first interphalangeal joint) where it is attached to the foot • Eye: loss of the eye or permanent loss of vision such that central visual acuity cannot be corrected to better than 201200. Loss of use does not constitute Dismemberment except as described in the loss of vision for the Eye. 00076 Enrollment Form means a form acceptable to Us that You complete to enroll for coverage under the Policy. 00077 Emergency Room means a specified area within a Hospital that is designated for the emergency care of Accidental Injuries. An Emergency Room is staffed and equipped to handle trauma, is supervised and provides treatment by Physicians and provides care 24 hours per day, seven days a week. 00078 Employee or Eligible Employee means an ,fictively at Work full-time Employee working in the United States of America as shown in the Schedule of Benefits whose principal employment is with the Policyholder and who is reported on the Policyholder's records for Social Security and withholding tax purposes. 00079 Fracture means a break in a bone due to an Injury that can be seen by x-ray. The Fracture must be diagnosed by a Physician within 14 days after the date of the Injury and require correction by a Physician. It can be corrected by open or closed Reduction. 00080 Hospital means either of the following: 1. A licensed facility which 0 a. maintains on the premises everything necessary for major surgical treatment; and b. provides such treatment on an inpatient basis for compensation under the full-time supervision of licensed Physicians; and c. provides 24-hour service by registered graduate nurses. 2. A free-standing surgical facility which maintains on the premises everything necessary for major surgical treatment available to the Hospital on a prearranged basis. The term Hospital does not include an institution which is primarily a place for rest or convalescence, a place for the aged, a nursing home, a place for the treatment of alcohol or drug abuse or any facility primarily affording custodial, educational, or rehabilitative care. 00081 Hospital Confinement or Confinement means the assignment to a bed as an inpatient in a Hospital on the advice of a Physician or confinement in an observation unit within a Hospital for a period of no less than 20 continuous hours on the advice of a Physician. 00082 Illness means sickness, disease, pregnancy or complications of pregnancy. 00083 Intensive Care Unit or ICU means a place which: • Is a specially designated area of the Hospital called an Intensive Care Unit that provides the highest level of medical care and is restricted to patients who are critically ill or injured and who require intensive comprehensive observation and care; and • Is separate and apart from the surgical recovery room and from rooms, beds, and wards customarily used for patient confinement; and • Is permanently equipped with special lifesaving equipment for the care of the critically ill or injured; and DNL2-604AIC-0316 IL 25 • Is under constant and continuous observation by a specially trained nursing staff assigned exclusively to the Intensive Care Unit on a 24-hour basis; and • Has a Physician assigned to the Intensive Care Unit on a full-time basis. An Intensive Care Unit is not a progressive care unit, an intermediate care unit, a private monitored room, sub -acute Intensive Care Unit, an observation unit or any facility not meeting the definition of an Intensive Care Unit as defined above. An Intensive Care Unit that meets the definition above includes Hospital units with the following names: - Intensive Care Unit; - Coronary Care Unit; - Neonatal Intensive Care Unit; - Pulmonary Care Unit; - Burn Unit; or Transplant Unit. 00085 Injury means bodily injury resulting directly from an Accident and independently of disease or bodily infirmity. 00086 IL Insured means an Employee or Dependent covered under the Policy. 00087 Male Pronoun whenever used includes the female. 00088 Material and Substantial Duties means duties that are normally required for the performance of Your Regular Occupation which cannot be reasonably omitted or modified. 00089 On and off the job coverage means benefits are payable for a Injuries sustained on the job and off the job, even if the Injury or treatment is covered by a Workers' Compensation or occupational disease law. 00093 Outpatient Ambulatory Surgical Center means a facility mainly engaged in performing outpatient surgery. It must: • be accredited as an ambulatory surgery facility by either the Joint Commission or the Accreditation Association for Ambulatory Care; • be approved as an ambulatory surgery facility by Medicare; or • meet all of the following criteria: o maintains all appropriate licensing for a facility that provides ambulatory surgery; and o is staffed by Physicians and nurses, under the supervision of a Physician; and o has permanent operating and recover rooms; and o is staffed and equipped to provide emergency care; and o has written back-up arrangements with a local Hospital for emergency care. 00094 Paralysis means complete and total loss of use of two or more limbs (paraplegia -four limbs, quadriplegia -lower limbs, or hemiplegia -one side of the body) as the result of a spinal cord Injury for a continuous period of at least 34 days. The Paralysis must be confirmed by a Physician and be expected to be permanent. 00095 Physical Therapist means a person other than a Covered Person, a member of a Covered Person's immediate family or a Covered Person's business associate who is licensed by the state to practice physical therapy, performs services which are allowed by his license and for which benefits are provided by this Certificate and practices according to the Code of Ethics of the American Physical Therapy Association. 00099 DNL2-604A1C-0316 IL 26 Physician means a person other than a Covered Person, a member of a Covered Person's immediate family or a Covered Person's business associate, who is licensed to and actively practicing medicine in the United States, and is licensed to treat Illness and Injury. 0 00100 Policy means the contract between the Policyholder and Us including the Application, this Certificate and any amendments, riders or endorsements. 00101 Policy Effective Date or Effective Date means the date stated on the Schedule of Benefits. 00102 Policyholder means the person, firm, or institution to whom the Policy was issued. Policyholder also means any covered subsidiaries or affiliates set forth on the face of the Policy. If the Policyholder is an association the term Participating Employer shall be substituted for Policyholder. 00103 Proof means evidence satisfactory to Us that the Covered Person has sustained an Injury or treatment listed in the Schedule of Benefits. We reserve the right to determine, at Our sole discretion, if Proof is acceptable under the terms of the Policy. 00104 Prosthetic Device /Prosthesis means an artificial device designed to replace a missing part of the body. 00105 Reduction means an open (surgical) or closed (manipulative) repair of a Fracture or Dislocation. 00106 Regular Occupation means the occupation that You are routinely performing when Your insurance terminates due to Disability. We will look at Your occupation as it is normally performed in the national economy, instead of how the work tasks are performed for Your Policyholder or at Your specific location. 00108 Rehabilitation Unit means an appropriately licensed facility that provides rehabilitation care on an inpatient basis. Rehabilitation care services consist of the combined use of medical, social, educational and vocational services to enable patients disabled by an Injury to achieve the highest possible functional ability. Services provided by or under the supervision of an organized staff of Physicians. A Rehabilitation Unit is not: • a nursing home; • an extended care facility; • a skilled nursing facility; • a rest home or home for the aged; • a hospice care facility; • a place for alcoholics or drug addicts; or • an assisted living facility. 00109 Spouse means lawful Spouse, which includes couples of same sex or different sex that enter into a civil union with all the obligations, protections and legal rights that Illinois provides to married heterosexual couples. 001101L Urgent Care Center means a health care facility that is separate from a Hospital or a separate unit of a Hospital and whose primary purpose is the offering and provision of immediate, short term medical care, without an appointment, for urgent care. 00111 Voluntary means coverage for which You pay 100% of the premium. 00112 We, Our and Us means Dearborn National Life Insurance Company. 00113 DNL2-604AIC-0316 IL 27 0 N You, Your and Yours means the Employee to whom this Certificate is issued and whose insurance is in force under the terms of the Policy. 00114 DNL2-604AIC-0316 IL 28 NOTICE OF PROTECTION PROVIDED BY ILLINOIS LIFE AND HEALTH INSURANCE GUARANTY ASSOCIATION This notice provides a brief summary description ofthe Illinois Life and Health Insurance Guaranty Association (the Association) and the protection it provides for policyholders. This safety net was created under Illinois law that determines who and what is covered and the amounts of coverage. The Association was established to provide protection in the unlikely event that your member life, annuity or health insurance company becomes financially unable to meet its obligations and is placed into Receivership by the Insurance Department of the state in which the company is domiciled. If this should happen, the Association will typically arrange to continue coverage and pay claims, in accordance with Illinois law, with funding from assessments paid by other insurance companies. The basic protections provided by the Association per insolvency are: • Life Insurance $300,000 in death benefits 1 $100,000 in cash surrender or withdrawal values • Health Insurance $500,000 in hospital, medical and surgical insurance benefits* $300,000 in disability insurance benefits $300,000 in long-term care insurance benefits $100,000 in other types of health insurance benefits • Annuities -) $250,000 in withdrawal and cash values *The maximum amount of protection for each individual, regardless of the number of policies or contracts, is $300,000, except special rules apply to hospital, medical and surgical insurance benefits for which the maximum amount of protection is $500,000. Note: Certain policies and contracts may not be covered or fully covered. For example, coverage does not extend to any portion of a policy or contract that the insurer does not guarantee, such as certain investment additions to the account value of a variable life insurance policy or a variable annuity contract. There are also residency requirements and other limitations under Illinois law. To learn more about these protections, as well as protections relating to group contracts or retirement plans, please visit the Association's website at www.ilhiga.org or contact: Illinois Life and Health Illinois Department of Insurance Insurance Guaranty Association 41h Floor 1520 Kensington Road, Suite 112 320 West Washington Street Oak Brook Illinois 60523-2140 Springfield, Illinois 62767 (773) 714-8050 (217) 782-4515 Insurance companies and agents are not allowed by Illinois law to use the existence of the Association or its coverage to encourage you to purchase any form of insurance. When selecting an insurance company, you should not rely on Association coverage. If there is any inconsistency between this notice and Illinois law, then Illinois law will control. GEN -56-1013 END OF CERTIFICATE e rej STATEMENT OF ERISA RIGHTS As a participant in the plan You are entitled to certain rights and protections under the Employee Retirement Income Security Act of 1974, as amended ("ERISA"). ERISA provides that all plan participants shall be entitled to: 1. Receive Information about Your Plan and Benefits a. Examine, without charge, at the plan administrator's office and at other specified locations, such as worksites and union halls, all documents governing the plan, including insurance contracts and collective bargaining agreements, and a copy of the latest annual report (Form 5500 Series) filed by the plan with the U.S. Department of Labor and available at the Public Disclosure Room of the Pension and Welfare Benefit Administration. b. Obtain, upon written request to the plan administrator, copies of documents governing the operation of the plan, including insurance contracts and collective bargaining agreements, and copies of the latest annual report (Form 5500 Series) and updated summary plan description. The administrator may make a reasonable charge for the copies. c. Receive a summary of the plan's annual financial report. The plan administrator is required by law to furnish each participant with a copy of this summary annual report. 2. Prudent Actions by Plan Fiduciaries In addition to creating rights for plan participants, ERISA imposes duties upon the people who are responsible for the operation of the Employee benefit plan. The people who operate Your plan, called "fiduciaries" of the plan, have a duty to do so prudently and in the interest of You and other plan participants and beneficiaries. No one, including Your employer, Your union, or any other person, may fire You or otherwise discriminate against You in any way to prevent You from obtaining a welfare benefit or exercising Your rights under ERISA. 3. Enforce Your Rights If Your claim for a welfare benefit is denied or ignored, in whole or in part, You have a right to know why this was done, to obtain copies of documents relating to the decision without charge, and to appeal any denial, all within certain time schedules. 0 Under ERISA, there are steps You can take to enforce the above rights. For instance, if You request a copy of plan documents or the latest annual report from the plan and do not receive them within 30 days, You may file suit in federal court. In such case, the court may require the plan administrator to provide the materials and pay You up to $110 a day until You receive the materials, unless the materials were not sent because of reasons beyond the control of the administrator. If You have a claim for benefits which is denied or ignored, in whole or in part, You may file suit in a state or federal court. If it should happen that plan fiduciaries misuse the plan's money, or if You are discriminated against for asserting Your rights, You may seek assistance from the U.S. Department of Labor, or You may file suit in a federal court. The court will decide who should pay court costs and legal fees. If You are successful the court may order the person You have sued to pay these costs and fees. If You lose, the court may order You to pay these costs and fees if, for example, it finds Your claims are frivolous. 4. Assistance with Your Questions If You have any questions about Your plan, You should contact the plan administrator. If You have questions about this statement or about rights under ERISA, or if You need assistance in obtaining documents from the plan administrator, You should contact the nearest office of the Employee Benefit Security Administration, U.S. Department of Labor, listed in Your telephone directory or the Division of Technical Assistance and Inquiries, Employee Benefits Security Administration, U.S. Department of Labor, 200 Constitution Avenue, Washington, D.C. 20210. You may obtain certain publications about Your rights and responsibilities under ERISA by calling the publication hotline of the Employee Benefits Security Administration. v FDL EIS 712013 rev'd. ? ERISA INFORMATION STATEMENT The benefits described in Your certificate are insured by an Accident insurance Policy ("Policy") issued by Dearbom National Life Insurance Company ("Dearborn National" or "Insurer"), pursuant to an "Employee welfare benefit plan" ("the Plan") as defined in Section 3(1) of the Employee Retirement Income Security Act of 1974, as amended ("ERISA") established by Your employer ("the Company"). Every Employee welfare benefit plan must be established and maintained pursuant to a written instrument that provides for a plan administrator. Your plan administrator has delegated the authority to administer claims under the Policy to Dearborn National. As claims administrator, Dearborn National will make decisions concerning eligibility and benefit determinations in accordance with the Policy provisions. A. ADMINISTRATION OF THE PLAN The plan administrator is the person or entity responsible for the administration of the Plan. The plan administrator has full discretionary authority and control over the Plan. This authority provides the Plan Administrator with the power necessary to operate, manage and administerthe Plan. This authority includes, but is not limited to, the powerto interpret the Plan and determine who is eligible to participate, to determine the amount of benefits that may be paid to a participant or his or her beneficiary, and the status and rights of participants and beneficiaries. The Plan Administrator also has the authority to prescribe the rules and procedures under which the Plan shall operate, to request information, and to employ or appoint persons to aid the plan administrator in the administration of the Plan. Failure by the Plan or the plan administrator to insist upon compliance with any provisions of the Plan at any time or under any set of circumstances shall not operate to waive or modify the provision or in any manner render it unenforceable as to any other time or as to any other occurrence, whether the circumstances are or are not the same. No waiver of any term or condition of the Plan shall be valid unless contained in a written memorandum expressing the waiver and signed by the person authorized by the plan administrator to sign the waiver. The Plan may be amended, terminated or suspended in whole or in part, at any time without the consent of the Employees or beneficiaries. Any amendment, termination or suspension shall be in writing, and attached to the Plan. Any amendment, termination or suspension shall be executed according to the Employer's authorized procedures. Any such authorization may be specific to the Plan or persons authorized to act on behalf of the Employer or may be general as to duties of such person. Except for termination or suspensions, any amendments affecting the Policy and/or Certificate must also be approved in writing by an officer of Dearbom National and shall be effective as of the date agreed to, in writing by the Plan Sponsor and Dearbom National. Notwithstanding anything to the contrary in this document, the Policy shall terminate according to the provisions in the Policy. The Plan has other fiduciaries, advisors and service providers. The plan administrator may allocate fiduciary responsibility among the Plan's fiduciaries and may delegate responsibilities to others. Any allocation or delegation must be done in writing and kept with the records of the Plan. As stated above, the Plan's benefits are provided to You pursuant to an insurance Policy issued to the Company. The Insurer shall, with respect to the Policy: - resolve all matters when a review pursuant to the claims procedures has been requested; - interpret, establish and enforce rules and procedures for the administration of the Policy and any claim under it; and - determine eligibility of Employees and dependents for benefits and their entitlement to and the amount of benefits. Each fiduciary is solely responsible for its own improper acts or omissions. Except to the extent required by ERISA, no fiduciary has the duty to question whether any other fiduciary is fulfilling all of the responsibilities imposed upon the other fiduciary by law. Nor is a fiduciary liable for a breach of fiduciary duty committed before it became, or after it stopped being, a fiduciary. However, a fiduciary may be liable for a breach of fiduciary responsibility of any Plan fiduciary, to the extent provided in ERISA Section 405(a). The Employer makes no promise to continue these benefits in the future and rights to future benefits will never vest. Retirement does not give any retiree any vested right to continue to participate or receive Plan benefits, except as provided in the Plan. FDL EIS 712013 rev'd. B. CLAIMS PROCEDURE: When You or Your Beneficiary are eligible to receive benefits, You or Your Beneficiary, or Your authorized representative (collectively, "You") must follow the claim procedures described in Your Group Insurance Certificate by submitting the proper form in writing to Dearborn National at: Claims Department Dearborn National Life Insurance Company 1020 31 st Street Downers Grove, IL. 60515-5591 1-800-348-4512 For the purpose of this Section, the terms "written" and "in writing" include "electronic." Any action required to be "written" or "in writing," may be done electronically, where available. If Dearborn National uses electronic notices, it will do so in accordance with 29 GFR 2520.104b-1c(i), (iii) and (iv). 0 FDL EIS 712013 rev'd. c Dearborn *National 0 Administrative Office: 1020 31st Street Downers Grove Illinois 60515 Principal Office: 300 E. Randolph Street Chicago Illinois 60601 Products and services marketed under the Dearborn Nationale brand and the star logo are underwritten and/ or provided by Dearborn Nationale Life Insurance Company (Downers Grove, IL) in all states (excluding New York), the District of Columbia, the United States Virgin Islands, the British Virgin Islands, Guam and Puerto Rico. DEARBORN NATIONAL® LIFE INSURANCE COMPANY jo_� (A stock life insurance company, herein called "We" "Us" or "Our") K Administrative Office Address: 1020 31st Street, Downers Grove IL 60515 Policyholder: SAMPLE INC. Policy Number: F012345 Policy Effective Date: January 1, 2018 Anniversary Date: January 1 We agree with the Policyholder to insure certain eligible Employees of the Policyholder. We promise to pay benefits for loss covered by the Policy in accordance with its provisions. The Policyholder should read this Policy carefully and contact Dearborn National Life Insurance Company promptly with any questions. Policyholder means the Employer to whom the Policy is issued and who sponsored the coverage for its Employees. Employer means the Policyholder and includes any division, subsidiary, or affiliated company if named in the Policy. Employee means a person who is a citizen or legal resident of the United States and .fictively at Work with the Employer. POLICY EFFECTIVE DA TE AND TERM The Policy takes effect on the Policy Effective Date stated above subject to any participation requirement stated in the Policy. All insurance periods will be computed from that date. The Policy remains in force for the period for which premium has been paid. It may be renewed for further successive periods by payment of premium as stated in the Policy. All periods of insurance begin and end at 12:01 A.M., Standard Time, at the Policyholder's address as stated in the Policy, and on the Application. Signed for Dearborn National Life Insurance Company IfIXA.— Z&4� -1 `1_e� Secretary President THIS IS AN ACCIDENT ONLY POLICY DNL2-504-AEP-0316 Voluntary Group Accident Insurance Policy with Dependent Accident Benefits Non -Participating THIS IS NOT A WORKERS' COMPENSATION POLICY ������� PR��PJS3V��' PA GE - h-emftm'--- '-'--......................................................... --...... --..~............................... .............. ----'--'-~.. J PmmmiamlweG�wvpmwe................ ------------............................................ ----------.................. I fdkpJerwwaow-----_-_---.................................................... __________.................... ....... __... 2 Ad&1uwyw/PmMiumw -............................................................................................................... .......... ............ ...... --- ..... . 2 BaeAdden6mm............... ___...... _____________.................................... ...... _________'_.,.._____ 4 w Master Application w Certificate uyInsurance N PREMIUM How is the initial premium calculated? The monthly premium is calculated in accordance with the rates set forth on the attached Rate Addendum. When is premium paid? The Policy is issued in consideration of the payment in advance of premium on the premium due date indicated on the Application. Payment must be made by the premium due date as shown on the Application. If an addition, termination or change in insurance takes place other than on a regular due date, any premium adjustment will take effect on the next due date. Is there a grace period for premium payment? We will allow a grace period of 31 days for the payment of any premiums due except the first. Insurance coverage shall continue in force during the grace period unless the Policyholder has given Us advance written notice of cancellation in accordance with the terms of this Policy. We will not be liable for claims incurred during a grace period unless all premiums have been received by Us before the end of the grace period. If premium is not received by the end of the grace period, the effective date of the Policy termination will be the last date for which premium was paid. If We receive written notice during the grace period that the Policy is to be canceled, We will cancel it as of the later of- t. the date requested in the cancellation notice; or 2. the date We receive such notice. The Policyholder must pay a pro rata premium for any coverage provided during the grace period. PREMIUM RATE GUARANTEE What is the initial premium rate guarantee? A change in premium rates will not take effect before January 1, 2021. However, We may change premium rates if the risk assumed changes. Premium rates may change if the following occurs: 1. a change in the Policy design; or 2. a change in the terms of the Policy; or 3. addition or deletion of a division, subsidiary or affiliated company; or 4. a change in the number of Insureds by 10% or more from the number of Insureds on the initial Effective Date; or 5. a change in the laws or regulations or other government action which applies to the Policy; or 6. for reasons other than 1-5 above such as but not limited to a change in factors bearing on the risk assumed. The Policyholder must furnish notice and documentation satisfactory to Us within 31 days of the occurrence of any event which would cause a change in rates as described above. If the Policyholder fails to provide such timely notice, we will apply new rates retroactively to the date of the event. We will notify the Policyholder in writing at least 31 days in advance of any premium rate changes. A change may take effect on an earlier date if both the Policyholder and We agree. DNL2-504-AEP-0316 POLICY TERMINATION Who may cancel the Policy or a plan under the Policy? The Policy or a plan under the Policy can be canceled by the Policyholder with 31 days written notice delivered to Us. When does this Policy terminate? This Policy will terminate for any of the following reasons: 1. If the Policyholder fails to pay any premium within the 31 -day Grace Period, this Policy will terminate in accordance with the terms set forth in the Grace Period provision. 2. We may terminate this Policy on any premium due date if: a. coverage is Contributory and less than 25% of the eligible Employees participate; or b. the Policyholder fails to perform any of its obligations that relate to the Policy; or c. the Policyholder does not promptly provide Us with information that is reasonably required; or d. fewer than 10 Employees are insured under the Policy. If We terminate the Policy, for reasons other than the Policyholder's failure to pay premium, a written notice will be delivered to the Policyholder at least 30 days prior to the effective date of termination. ADDITIONAL PROVISIONS What happens If an inadvertent error occurs? Clerical error or omission by Us to the Policyholder will not: 1. Prevent the Employee -from receiving coverage, if he is entitled to coverage under the terms of the Policy; or 2. Cause coverage to begin or coverage to continue for the Employee when the coverage would not otherwise be effective. If the Policyholder gives Us information about the Employee that is incorrect, We will: 1. Use the facts to decide whether the Employee has coverage under the Policy and in what amounts; and 2. Make a fair adjustment of the premium. Will certificates be issued? We will deliver certificates of insurance to the Policyholder for issuance to each insured Employee. The certificates will describe the benefits, to whom they are payable, the Policy limitations and where the Policy may be inspected. What is considered to be the entire contract? Entire Contract {Contract) The Entire Contract consists of: 1. The Group Insurance Policy, and 2. The Application; and 3. The Certificate; and 4. The Enrollment Forms of the persons insured, including any individual statements; and 5. Any riders, endorsements, inserts, attachments or amendments to the Policy, Application or the Certificate. Coverage under the Policy can be amended by mutual consent between the Policyholder and Us. No change to the Policy is valid unless approved in writing by one of Our officers. No agent or third party has the right to change the Policy or to waive any of its provisions. Statement on the Application All statements made on the Application are considered representations and not warranties (absolute guarantees). No representation by: 1. The Policyholder in applying for the Policy will make it void unless the representation is contained in the signed Application, or other written and signed statement; or DNL2-504-AIP-0316 0 2. Any Employee, in applying for insurance under the Policy will be used to reduce or deny a claim unless a copy of the ., application for insurance, signed by the Employee, or other written and signed statement, is or has been given to the Employee. C", 101 New Employees All new Employees in the classes eligible for insurance will be added to such class for which they are eligible. DNL2-504-AIP-0316 RATE ADDENDUM Initial Monthly Rates Class: 01, 02 Employee $17.98 Employee and Spouse $33.89 Employee and Child $33.97 Employee and Family $44.03 DNL2-504-AEP-0316 0 101 CJ C -) STATE SUPPLEMENT The following policies apply only to those individuals in Your group insurance program who reside in the referenced states. Arizona and Maine Except as otherwise permitted by law, We will not disclose collected personal information about an individual to a nonaffiliated third party with whom We jointly offer products without giving the individual an opportunity to tell us that he or she does not want Us to share his or her personal information. Minnesota and Montana Except as otherwise permitted by law, We will not disclose collected personal information about an individual to a nonaffiliated third party with whom We jointly offer products without obtaining the individual's written authorization. Montana Upon written request, an individual who has authorized the collection of health information is entitled to receive a record of Dearborn National's disclosures of any of his medical record information made within the preceding 3 years. Oregon An individual has the right to authorize disclosure of his or her personal information to an insurance company. An Oregon resident can exercise this right by requesting an authorization form in writing. Our address is: Dearborn National* Life Insurance Company Administrative Office: 1020 31st Street Downers Grove, IL 60515 N Dearborn NQtioml' Rev. 1212015 WHAT DOES DEARBORN NATIONAO DO WITH YOUR PERSONAL INFORMATION? Financial companies choose how they share your personal information. Federal law gives consumers the right to limit some but not all sharing. Federal law also requires us to tell you how we collect, share, and protect your personal information. Please read this notice carefully to understand what we do. The types of personal information we collect and share depend on the product or service you have with us. This information can include: ■ Social Security number and payment history ■ Transaction history and employment information ■ Medical information and insurance claim history When you are no longer our customer, we continue to share your information as described in this notice. All financial companies need to share customers' personal information to run their everyday business. In the section below, we list the reasons financial companies can share their customers' personal information; the reasons Dearborn National chooses to share; and whether you can limit this sharing. .01 1 E 1 7 "Im"llumm For our everyday business purposes-- such as to process your transactions, maintain Yes No your acwunt(s), respond to court orders and legal investigations, or report to credit bureaus For our marketing purposes— to offer our products and services to you Yes No For joint marketing with other financial companies Yes No For our affiliates' everyday business purposes-- information about your transactions Yes No and experiences For our affiliates' everyday business purposes— information about your No We don't share creditworthiness For our affiliates to market to you No We don't share For nonaffiliates to market to you No We don't share Go to www.dearbornnational.com Who is providing this notice? Dearborn National brand companies: ■ Dental Network of Americae, LLC ■ Dearborn Nationale Life Insurance Company ■ Dearborn Nationale Life Insurance Company of New York Products and services marketed under the Dearborn National® brand and the star logo are underwritten and/or provided by Dearborn Nation Life Insurance Company (Downers Grove. Illinois) which is not licensed in and does not solicit business in New York; in New York, the company is Dearborn National® Life Insurance Company of New York (Pittsford. New York), Dental Network oftmericam, LLC is an administratorfor oup dental claims. DenleMaxe, LLC is a dental provider network. Products amt services and availability vary by state and company, and are solely the responsibility a each affiliate. v C Dearborn National' Who is providing this The Dearborn National brand companies. (See "Other important information" below for the list of iotice? companies.) How does Dearborn To protect your personal information from unauthorized access and use, we use security measures that National protect my comply with federal law. These measures include computer safeguards and secured files and buildings. personal information? Access to your information is limited to employees who need it in their jobs. If a company working for us has access, it is required to protect it. How does Dearborn We collect your personal information, for example, when you National collect my ■ apply for insurance or pay insurance premiums personal information? ■ file an insurance claim or provide employment information ■ give us your contact information ■ We also collect your personal information from others, such as credit bureaus, affiliates, or other companies. Why can't I limit all Federal law gives you the right to limit only sharing? + sharing for affiliates' everyday business purposes—information about your creditworthiness ■ affiliates from using your information to market to you ■ sharing for nonaffiliates to market to you State laws and individual companies may give you additional rights to limit sharing. Affiliates Companies related by common ownership or control. They can be financial and nonfinancial companies. ■ Health Care Service Corporation, a Mutual Legal Reserve Company ■ DenteMae, LLC Companies not related by common ownership or control. They can be financial and nonfinancial ,Nonaffiliates companies. ■ Dearborn National does not share with nonaffiliates so they can market to you Joint marketing A formal agreement between nonaffiliated financial companies that together market financial products or services to you. + Our joint marketing partners include categories of companies such as insurance companies and brokers. IME For Insurance Customers in AZ, CA, CT, GA, IL, ME, MA, MN, MT, NC, NJ, NV, OH, OR and VA only: The term "information" as used in this part means personal information that is obtained in an insurance transaction. We may give your information to government officials, including insurance officials, law enforcement, and to group policy holders about claim experience, or to auditors, or as you may authorize, or as the law allows or requires. We may give your information to insurance support entities that may keep it or give it to others. We may share medical information and other information so we can learn if you qualify for coverage, to process claims, or to prevent fraud, or if you authorize us to do so. To see your information, write to Dearborn National, Administrative Office, 1020 31st Street, Downers Grove, IL 60515. You must state your full name, address, the name of the insurance company, policy number (if applicable) and the information you want. If you think any information we have is wrong, you may ask us to correct it. We then will let you know what actions we will take. If you do not agree with the actions we take, you may send us a concise statement explaining the basis for your concern or dispute about the information, and we will place that statement in our file with the information. For California Insurance Customers only: We will share information about you only as permitted by California law. We will not share personal information we collect about you with affiliated or nonaffiliated third parties except if permitted by law, or with your consent, or to the extent necessary to administer your insurance coverage. r'or MA Insurance Customers only: You may ask in writing for the specific reasons we made an adverse underwriting decision. For VT Insurance Customers only: We will share information about you only as permitted by Vermont law. We will not share personal information we collect about you with affiliated or nonaffiliated third parties except if permitted by law, or with your consent, or to the extent necessary to administer your insurance coverage. NOTICE OF PROTECTION PROVIDED BY ILLINOIS LIFE AND HEALTH INSURANCE GUARANTY ASSOCIATION This notice provides a brief summary description ofthe Illinois Life and Health Insurance Guaranty Association (the Association) and the protection it provides for policyholders. This safety net was created under Illinois law that determines who and what is covered and the amounts of coverage. The Association was established to provide protection in the unlikely event that your member life, annuity or health insurance company becomes financially unable to meet its obligations and is placed into Receivership by the Insurance Department of the state in which the company is domiciled. If this should happen, the Association will typically arrange to continue coverage and pay claims, in accordance with Illinois law, with funding from assessments paid by other insurance companies. The basic protections provided by the Association per insolvency are: • Life Insurance A $300,000 in death benefits $100,000 in cash surrender or withdrawal values • Health Insurance s $500,000 in hospital, medical and surgical insurance benefits* 1 $300,000 in disability insurance benefits $300,000 in long-term care insurance benefits $100,000 in other types of health insurance benefits • Annuities . $250,000 in withdrawal and cash values 'The maximum amount of protection for each individual, regardless of the number of policies or contracts, is $300,000, except special rules apply to hospital, medical and surgical insurance benefits for which the maximum amount of protection is $500,000. Note: Certain policies and contracts may not be covered or fully covered. For example, coverage does not extend to any portion of a policy or contract that the insurer does not guarantee, such as certain investment additions to the account value of a variable life insurance policy or a variable annuity contract. There are also residency requirements and other limitations under Illinois law. To learn more about these protections, as well as protections relating to group contracts or retirement plans, please visit the Association's website at www.ilhiga.ora or contact: Illinois Life and Health Illinois Department of Insurance Insurance Guaranty Association 4th Floor 1520 Kensington Road, Suite 112 320 West Washington Street Oak Brook Illinois 60523-2140 Springleld, Illinois 62767 (773) 714-8050 (217) 781-4515 Insurance companies and agents are not allowed by Illinois law to use the existence of the Association or its coverage to encourage you to purchase any form of insurance. When selecting an insurance company, you should not rely on Association coverage. If there is any inconsistency between this notice and Illinois law, then Illinois law will control. C.i GEN -56-1013