Assistant US Field Manual

April 2012

ASSISTANT FIELD MANUAL

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Understanding World Financial Group WFG is a financial Services Marketing Company that through affiliated companies provides personal financial services to families throughout North America. WFG is structured as follows for all associates who have made the decision to join our company to empower our vision of No Family Left Behind® AGENT SERVICE UNIT Agent Service Unit handles all incoming calls from field agents to assist agents on all their day to day needs to run their business in the field and directly calls to the proper dept for further assistance. WFG TFG Handles all licensing, commissions, For all securities related issues, hierarchy building, promotions, and registrations, compliance, Variable conventions Products, Money Managing CODING Coding Dept handles all AMA, WFG status, termination reasons, Agent Information Changes, Name changes, SSN, DOB, Address, Transfer of Hierarchy, Promotions, Terminations

REGISTRATION (TFG) Registration handles all U4 submission and WGS affiliation. They handle Regulatory Element CE courses, updating agent’s TFG activity and status.

LICENSING Licensing Dept handles all appointments with our current affiliated providers, updating state licensing, Continuing Educations such as AML, IUL, Annuity courses

TFG Suitability Review Team Reviews all securities products that are mailed to Transamerica Financial Advisors, Inc. by TFG Registered Representatives. The TFG Suitability Team has final acceptance for all securities trades. NEW BUSINESS (TFG) New Business handles all reviewed VA and VL trades submitted in by TFG licensed agents that have been processed by the New Business Dept. Once they finish reviewing, they will then submit the trade out to the providers.

COMMISSIONS Commissions Dept handles all field agents’ commissions that come in from the providers from the agent’s submission of their businesses. Any questions field agents have regarding chargebacks, earning reversals, incorrect payment will be researched by the Commissions Dept. MARKETING Marketing Dept create tools and activities for and to the field. They create contests, events, tours, set promotional guidelines, conventions, Hawaii Trips, WFG Solutions, set commission contracts with our providers, Success TV, videos to the field to utilize.

DISTRIBUTION Handles all orders that associates order. Such as, business cards, WRL/TFLIC sales kits, brochures, Upstart Kits, Books, and Training Materials.

FIELD PRACTICES & RELATIONSHIP TEAM Handles Agent-to-Agent mediation, Review M.A.P., and/or Transfer disputes, Review Baseshop Standards of Excellence (semi-annually), Maintain the Personal Producer General Agreement (PPGA), AMA Rule-6, Hierarchy Policy for Married Couples’ (Level Switch) requests. ELITE Partners - select group of in-house associates assigned to assist CEO/ EVC’s Exclusively

TFG Transfer Team The Transfer team reassigns securities and advisory accounts for representatives and advisors that terminate or resign from TFA or TFA IA. These accounts are reassigned using the hierarchy, in which we identify the first appropriately registered, licensed and appointed that is active in the clients resident sate. We update our back office system, vendor, and the representative who inherits the accounts when changes are made. We also are responsible for processing representative changes for servicing on existing accounts. COMPLIANCE (TFG) The TFG Compliance Division ensures that the Firm is in compliance with company and regulatory standards. The division also handles internal reviews, customer complaints, regulatory inquiries and also reviews disclosure information for new recruits and former representatives who have applied for reinstatement. MAILROOM Handles and processes all mail that is mailed into the building and ensures that the mail is distributed to the proper department. They also handle scanning faxes in to AlxViewer into the field agents account.

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CODING What is AMA? Associate Membership Agreement form. Make sure everything is filled in before submitting to WFG Home Office. How to reinstate an AMA after leaving WFG and/or Terminated? Submit a paper copy of the AMA and fax it to Coding Dept at 678-966-6161 What if I accidently Coded the wrong upline on an eAMA? Submit PG 4 of the paper AMA WITHIN 5 DAYS OF AMA SUBMISSION and a cover letter to explain what needs to be done to Coding Dept. at 678-966-6161 How to change: Name, DOB, and Address? NAME & DOB: Submit ID for Name change and DOB correction to Coding Dept 678-9666161 LAST NAME: Marriage certificate if changing last name due to marriage to Coding Dept 678-966-6161 CHANGE SSN: Submit copy of SS Card to Coding Dept 678-966-6161 For Life Licensed Agents Only: Submit AGENT INFORMATION CHANGE FORM to change home and business address to Card to Coding Dept 678-966-6161 For Securities Licensed Agents Only: To change business address, Submit paper U4 section 1, 11, 15D to Registration Dept at 678-966-6166 How to change Dedicated to Non Dedicated or Non Dedicated to Dedicated status? Submit PG 4 of the paper AMA and a cover letter to explain what needs to be done to Coding Dept. at 678-966-6161 If new recruit have BANKRUPTCY or CRIMINAL BACKGROUND or has a H1 VISA, can they still be recruited? Bankruptcy Recruits: Must be discharged and then submit with paper AMA with court documents and PAPER AMA to Coding Dept (678-966-6161). Compliance will review. Most cases, they are approved. Criminal Background: It’s a case by case issue. Compliance will determine if agent is OK to be recruited or not. If rejected, $100 will not be processed or will be refunded back to the new recruit. H1 VISA: Must be legally to work in the US, Valid SSN and 18 yrs of age or older. NO EXCEPTIONS. What are the 3 Types of Transfers? Associate Only: Associate is active in the field and would like to transfer themselves only. Require upline(s), SMD, and CEO’s signatures. Avg Time frame: 3~5 business days. Associate & Downline: Associate is active in the field and would like to transfer them and their entire downline. Require upline(s), SMD, and CEO’s signatures. Avg Time frame: 3~5 business days. Inactivity Transfer: Associate has been inactive for 6 months or more can only transfer themselves. No current SMD signature required. Avg Time frame: 7 business days.

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LICENSING WFG Licensing Dept handles all licensing processing. Do not send appointment paperwork directly to the provider.

STEP 1: To get LICENSE in Resident & Non-Resident states: 1. US Field Manual at WFG Online in Business Center > State Licensing > Specific Resident or Non-Resident State for process, forms, links, etc. 2. Most Non-Resident and Non-Resident licenses may be applied for online. 3. You will receive the license in the in mail or email confirmation depending on how the state notifies of license being issued. 4. Once you receive license you may then request to be appointed with different providers

STEP 2: To file Provider Appointments: 1. Provider Appointment paper work (Always print from Field Manual because they update the appointment paperwork often) 2. NON RESIDENT APPOINTMENT FORM (IF applying for Non Resident States) 3. State License 4. AML certificate (must take every year) 5. IUL certificate 6. Fax to Licensing Dept for all providers’ appointment at 678-966-6100 or for WRL appointments only is to 678-966-6111 7. Once license is receive by Licensing Dept, the appointment is processed and submitted to the respective provider for their approval and activate upon receipt of such approval.

STEP 3: To make sure you are approved to write business and not have your commission and points held: Make sure all the following are ACTIVE AT THE TIME OF WRITING DATE: 1. LICENSE IN THE STATE you’re writing business is Active 2. CORP AFFILIATION is Active (if applicable) 3. AML course is Active 4. IUL course is Active (if applicable) 5. PROVIDER APPOINTMENT is Active

** You may view your license status by going to WFG online Appointments and Registrations

Hierarchy Tab

License

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LICENSING (continued) The Flow of Getting Licensed and Appointment: After Passing EXAM and submitting the required application to the respective Department of Insurance ↓ License issued to agent by the respective State Department of Insurance ↓ Complete any CE courses required to solicit specific products or to receive commissions on specific products (Usually AML & IUL & Annuity courses for California agents) ↓ Submit state license, appointment application for the specific providers with whom the agent will be writing business, along with CE course certification (AML, CA Annuity or IUL) to WFG Licensing Dept for process. Any required fees may be paid at WFG Online with credit/ debit card ↓ The WFG Licensing Department processes appointments and submits to the provider electronically for their approval ↓ Several states require that producers be affiliated to the Insurance Agency. If an affiliation is required for the state applied for the detail for that state requirement is outlined in the Field Manual at WFG Online. For the most part the affiliations are processed by WFG Licensing with no additional requirements from the agent, however certain states require specific forms and/ or fees and may be considered a “Wait State” (TIME VARIES DEPENDING ON DOI) ↓ Appointment paperwork, license copy, CE certificates and proof of affiliation (where necessary) are submitted to the provider company for their processing and approval. Confirmations are communicated to WFG by most providers, which are updated in COMPASS when received. ↓ How to know which provider to be appointed with to avoid paperwork rejection? 1. The Field Manual, located at WFG Online in the Business Center is documented with the necessary application and requirements in order to be contracted. 2. The products available for any given provider are located in the WFG Product Guide. How to check the status of agent’s License and Appointment status? 1.

Wfgonline > Hierarchy Tab > License Appt & Registration > **New Report** View all licensing and appointment information.

2.

To check status of Appointment: When you see “P” and a start date next to provider name, that indicates that the agent’s appointment has been submitted to the provider for their approval.

3.

To check status of License: It is important to provide a renewed copy of insurance licenses once they’ve been renewed with the respective State Department of Insurance. There are states that do not provide renewed license copies, however most states have a website from which proof of renewal may be obtained and submitted to WFG Licensing for update.

Where to take the Continuing Education (AML, CA annuity course, 4 hr annuity course) courses? Agent may take it through WFG online Kaplan by going to: WFG online > WFG U > WFG U Home > AML on the lower right hand side. Fees are noted where applicable.

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The flow from Policy to Commission: Agent writes policy ↓ Policy is submitted to provider ↓ Policy is reviewed by underwriter (Underwriter will either approve and send the commission to WFG or reject) ↓ Policy is approved, issued and mailed to provider for delivery to client ↓ Policy number is provided to the agent and Commission is sent to WFG ↓ WFG Processes Transaction ↓ Detail of Transaction reflected on Commission Statement

How to Calculate an Advanced Commission (2.01.2011 forward) To calculate your Commissions, use the following formula: Commissionable Amount x Field % x Advance % x Level % CALCULATION EXAMPLE: Company: Western Reserve Life Writing Date/Application Sign Date: 02/01/2011 Product Name: FREEDOM CHOICE TERM II 20 YR Provider Reference: TDE222 Field Percent: 126.50 % Advance %: 50% Writing Agent = Level 15 (TA) Commissionable Amount: $832.68 (per Provider)

$832.68(Commissionable Amt) x 126.50 %(Field %) x 50.00%(advance)x 23.70% (level 01) = $ 124.82 $832.68 x 126.50 %(x 50.00% x 11.90% (level 10) = $ 62.68 $832.68 x 126.50 %(x 50.00% x 7.90% (level 15) = $ 41.61 Total payment $ 229.11

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How to Calculate an Advanced Commission using your Commission Statement Total Field Commission x Level % = Commission $526.67 x 23.70% (level 01) = $ 124.82 $526.67 x 11.90% (level 10) = $ 62.68 $526.67 x 7.90% (level 15) = $ 41.61 Total payment

$ 229.11

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POINTS BASE POINTS FORMULA: TARGET PREMIUM x PRODUCT % = FIELD COMMISSION FIELD COMMISSION = TOTAL POINTS Additional Points Examples: Example 1 – no adjustment on the Second Advance Product Name: Freedom Index Universal Life: Product ID: IU1267 Target/Commissionable Amount: $3,599.99 Field Rate found on Product Guide: 118.6371% First Advance (FA) 40% field commissions payout: $1708.37 100% Points generated for policy based on FA = 4270.92 Second Advance (SA) 40% field commissions payout: $1708.37 Points generated for policy based on SA = no adjustment Total points for policy remains 4270.92 – no true up point adjustment required. Example 2 – increased point adjustment on the Second Advance Product Name: Freedom Global Index Universal Life: Product ID: FG1508 Target/Commissionable Amount: $1,436.01 Field Rate found on Product Guide: 126.5000% First Advance (FA) 40% field commissions payout: $726.62 100% Points generated for policy based on FA = 1816.55 Second Advance (SA) 40% field commissions payout: $1453.24 Based on the summed field commissions for the FA and SA = $2,179.86 / 80% = 2,724.83 Points generated for policy based on SA = an additional 908.28 points generated based on the SA. Total points for this policy are 2724.83 after the true up happens on the SA.

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POINTS (continue) Additional Points Examples: Example 3 – decreased point adjustment on the Second Advance Product Name: Freedom Index Universal Life Product ID: IU1268 Target/Commissionable Amount: $1,110.00 Field Rate found on Product Guide: 118.6371% First Advance (FA) 40% field commission payout: $526.75 100% Points generated for policy based on FA = 1316.88 Second Advance (SA) 40% field commission payout: $250.00 Based on the summed field commissions for the FA and SA = $776.75 / 80% = 970.94 Points generated for policy based on SA = a deduction in net points for the amount of 345.94 Total points for this policy are 970.94 after the true up happens on the SA. What are points for? The purpose of points is for promotion and qualifying for contests and trips. When do we receive points? Once commission is received in WFG Home Office from the provider. How points applies to the Promotional Guidelines: Promotional Guidelines always change and it depends on the hierarchy of the team. Always check the guidelines from WFG Online and the CEO. When do monthly COMMISSION points close out? Every month is different. You may find the deadline for the monthly close out deadline in the Field Manual. What happens with the RECRUTING points is not correct? Provide the agent code(s) that is not showing in your system, advise what month it’s not showing for and email the list to WFG email at [email protected].

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TFG REGISTRATION DEPT For associates applying for Security Licenses to sell Variable Products How to register with TFG? Branch Office Manager (BOM) invites associate ↓ Associate receive invitation and starts Transamerica Registration Application (TRAC) online ↓ After completing TRAC it goes to BOM for review ↓ BOM reviews TRAC and either submit to TFG electronically for review or return to agent to make corrections. ↓ BOM submits to TFG for process ↓ TFG receives TRAC (to include prints and payment) and submit to FINRA. ↓ For new agents, instructions are sent to agent to take required FINRA exams ↓ For agent to get approved: 1. Basic Training, AML Courses and any internal requirements 2. Meet all of FINRA’s requirements

*Any questions that agent has, please contact the ASU at 770-246-9889 for further assistance. **

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SUITABILITY REVIEW & NEW BUSINESS For Registered Representatives submitting Securities Applications Registered Representative submits securities business to their BOM for review ↓ BOM reviews ↓ BOM sends application to TFA Home Office ↓ Once application is received: Suitability Review Team reviews, then New Business Department processes ↓ New Business Department sends application to the Product Provider

FOLLOW UP ON TRADES SUBMITTED: Email will be sent to RR and BOM if the Trade is suspended. Email will be sent to RR and BOM when the Trade is mailed to the product provider. Questions related to suitability, suspended trades, completion of direct business forms, and status of submitted business should be directed to: Phone: E-mail:

(770) 248-3202 [email protected]