EBU Inc.

Frequently Asked Questions

EBU Carrier A.M. Best Ratings:

Monumental Life Insurance Company (home office: Cedar Rapids, Iowa)	A+	Superior (Current as of 06/29/2010)	A.M. Best **
Presidential Life Insurance Company (home office: Nyack, New York)	B+	Good (Current as of 05/25/2010)	A.M. Best **

** A.M. Best Ratings are on a scale of A++ to S for financial strength and operating performance **

Case Minimum: $15,000 deductible/25 Lives. 210 lives is our average case size.

Underwriting Philosophy: Specific rates are derived from group demographics and compensation component. Aggregate Factors are a blend of base risk factors and the credibility level of claims experience provided. Based on claims analysis additional underwriting options could include aggregated specific, condition specific deductible risk transfer or individual deductible risk transfer. Pricing discounts can be achieved through inclusion of Managed Care programs, proven case management, increased network penetration, plan design, etc. We can provide a variety of run-in/run-out contracts. Actively-at-Work can be waived upon approval of acceptable disclosure. Specific advance is included.

Plan Maximum: Specific up to $5 million; Aggregate $1 million.

Definition of a Paid Claim: Date the check is mailed with appropriate funds in the bank.

Early Lock on Cases: If approved, we bind a case on the date the disclosure is received in underwriting but no sooner than 30 days prior to the effective date unless granted an exception by underwriting.

Run In Limits: Aggregate is 15% of annual attachment point. Specific limited to deductible. Can be waiver/negotiated with proper reporting for in force administrator.

Claim Audits: Onsite Aggregate audits conducted through national contracted agency.

TPA Approval Process: Form is available on our website www.ebu-inc.com or submit standard prepared package to Daytona Beach address or email to sales@ebu-inc.com. Acceptable information is required prior to first sold case.

Ineligible Industries: We consider most employer/employee industries that have acceptable experience with the exception of MEWAs, Associations and Consortiums unless underwritten on separate contracts.

Renewal Disclosure: Required along with current claim documentation.

Communication Structure: Administrators are encouraged to work directly with their assigned underwriters. Our relationships are focused on sustaining profitable growth. Our professional associates have the flexibility required to help you achieve your goals.

Termination: At renewal we will not terminate, non-renew or force higher specific deductibles on groups or exclude individuals except for non payment of premium or if group falls below state required size or minimum participation.

Authority: We retain full underwriting and claim payment authority.