Disability Income Insurance Underwriting Proposal between Family Dollar and MassMutual (2010)

MassMutual has a comprehensive, non-cancelable individual disability income insurance product portfolio, complete with tailor made case designs for high and middle-income earners, supplemental benefit options with Group LTD plans, a product to protect your employees ability to make retirement contributions, and more. Your employees can customize a disability income solution that best suits their needs and financial situations with our wide selection of riders (or options) available at an additional cost.

MassMutual prides itself on its flexibility to meet your unique and changing needs. We offer strategies to streamline the education, application and administration of our disability income insurance offering. For instance, e-Worksite Solutions^SM for application and administration with "click of a button" electronic signature capabilities - or traditional hard copy application processes - are available. MassMutual will develop an application strategy to handle your account - including an integrated communications strategy, educational benefit calculators and tracking capabilities -to align with your way of doing business.

In addition to our normal paper billing we are excited to offer you our time saving electronic billing, data transfer, and electronic fund transfer options. Presenting bills online allows you to schedule and make changes to payments (such as adding, changing or deleting participant information) in real time.

An individual disability income insurance policy will be issued to an individual who submits a complete application and upon review of the application MassMutual determines that the individual is not currently disabled or collecting any benefits, and is either a U.S. citizen or holds a permanent residence VISA. In addition, each individual must be actively at work on a full-time basis (30 hours or more per week) for 90 days prior to the application date, and employed on a full-time basis by the above named employer at the time of policy delivery. If an individual has not been actively at work for 90 days prior to signing the application, then MassMutual may use the information provided on the application or request additional information for clarification, to determine the nature of the absence from work. If the nature of the absence is not determined to be a significant impairment, then MassMutual will issue a policy but may add an applicable exclusion rider.

75% of base salary less gross LTD benefits. The in force taxable group LTD covers 60% of base salary up to a monthly maximum of $15,000. This insurance is issued in accordance with our published Issue and Participation limits for supplemental coverage and will be paid for by the employer, resulting in a taxable benefit.

A Guaranteed Standard Issue (GSI) monthly benefit of $10,000 for eligible employees will be underwritten financially, based on income, other coverage, and our issue and participation limits. We will disregard unearned income and net worth within the guaranteed underwriting offer.

We will not provide any benefit for any disability that begins within 12 months after the effective date and is caused by, contributed to by or resulting from a pre-existing condition that started 3 months prior to the effective date of the coverage.

For the GSI amount, we will offer everyone in the defined eligible group a policy at state filed rates provided that the answers to questions on the application allow us to offer a policy. The policy will not be rated or ridered for medical conditions or avocational activities. We reserve the right to exclude presumptive type disabilities if an applicant has a pre-existing condition that might qualify as presumptive (applies to Radius ' 98 contracts only). Any coverage applied for above the GSI amount will require full underwriting. Regular underwriting requirements will be based on the total amount applied for.

MaxElect® contracts¹ are recommended for your eligible employees. The contract type is based on state approvals when the application period begins. MassMutual will, on occasion, review its product portfolio and may modify its offerings under the previously stated guarantees. If a modification is required you would receive prior notification and this would only impact new employee policies or existing employees' coverage additions going forward.

For proper spread of risk a 100% participation rate is required for this offer. If the required participation is achieved, the offer will remain in effect for two years from the date of acceptance. If the required participation is not achieved, the offer will be reviewed after the initial application period and may not be renewed. This would not impact the initial applicants who will continue their contract amounts, pricing and discounts based on original application period.

The application period for the coverage will be based on the start date which will be established by the employer and MassMutual, with an end date of 30 days from the start date. Any employee currently eligible, who chooses not to apply at this time, will not be eligible for the underwriting guarantees available under this offer. However we will be pleased to consider an employee on an individual basis, subject to full evidence of insurability and regular underwriting rules. New employees will be covered under this offer; however, all must apply within the timeframe selected in the Application Strategy within this document.

We will waive our usual financial requirements for all W-2 employees when a final census is received by the employer. For business owners (partners and shareholders with 20% or more ownership), we may request business tax returns. Insurable income includes base salary and variable (bonus, commissions) income. If there is any variable income, then base salary, bonus and commission income must be broken out separately on the census. We will consider a two-year average of variable income. If the most recent year's variable income is less than the prior year's variable income, we will consider only 100% of the most recent variable income. If only one year of variable income is available, then we will consider 75% of the variable income as insurable income. We will disregard unearned income and net worth within the underwriting offer. However, net worth and unearned income will be considered when determining benefit above the GSI amount.

On a regular basis, we review case demographics and performance. We are glad to report that we have found that your case meets or exceeds the most critical factors needed for continued success. The following information, in part, aided us in determining your eligibility for renewal:

The following describes MassMutual's communication vehicles. It is our standard practice to utilize the tools outlined below. We employ four components - Hard Copy Print Materials, Electronic Communications and Face-to-face Meetings or Personal Phone Calls.

All e-mails are in HTML format and are created and sent by MassMutuaI. Text only formatting can be used to accommodate system requirements. This helps to ease the workload on the HR personnel and ensures that communications are sent timely to the correct group of employees.

All e-mails are in HTML format and are created and sent by MassMutuaI. Text only formatting can be used to accommodate system requirements. This helps to ease the workload on the HR personnel and ensures that communications are sent timely to the correct group of employees.

In order to properly populate paper illustrations and/or the online application tool, we will need a final census in an Excel spreadsheet format that will include items in addition to those provided in your initial census. We'll also want to ensure we have the most current and accurate census information to verify employee eligibility for streamlined underwriting. Fields needed on the final census include: