To our agents
There’s no doubt the health insurance landscape is changing – but Assurant Health is no stranger to change.

Looking back over our century-long history, we are encouraged that we’ve answered each challenge with innovation and accomplishment. In the face of new, unprecedented challenges, we also anticipate continued success.

Individual Portfolio
To remain competitive, we’ve streamlined our product portfolio – tailoring our core, most popular plans – and added new products and services to help you grow your individual medical business in a new health insurance marketplace. This is your portfolio of products for September 2010:

• Assurant Supplemental Coverage – Accident, Critical Illness, Dental
• The new Assurant Affordable Health Access*
• Individual Medical – CoreMed^SM , OneDeductible and Assurant Clarity^SM
• Short Term Medical

This consistent product platform will mean our distribution partners now have access to the same products, benefit levels and competitive pricing across all channels. Please read this issue of the Product Change Communication so you have all the details.

Our commitment to you
The entire Assurant Health leadership team remains committed to you, our agents. We will continue to work hard to bring products and services to the market to meet consumer needs and help promote your success. We’ll also continue to provide support to you and find ways to improve the experiences you and your customers have with us.

The marketplace may not look exactly the same, but Assurant Health still offers valuable financial protection against the expense of accidents and illnesses. We want you to know we’re committed to you and to this business. We are here, we’re planning on staying and we want you here with us.

*Limited hospital confinement and other fixed-indemnity benefits

In this issue:

Assurant Supplemental Coverage is here at just the right time — giving you more ways to offer your clients the value-added, cost-saving insurance protection they’re looking for.

These new Accident, Critical Illness and Dental plans pay cash benefits right to your clients — even if they’re covered by other insurance plans. And your clients can use the cash any way they want — to pay medical bills or to take care of other expenses.

Offer supplemental plans as:

• Added coverage for clients who have, or are applying for, medical insurance — supplemental plans can help fill coverage gaps and create a more extensive financial and health insurance protection program
• Customized coverage for clients who want more control, choosing only the coverage they want — supplemental plans are affordable and easy to get, and they provide significant benefits on their own

The first wave of Assurant Supplemental Coverage has launched in the following states with these effective dates:

• (July 18 ) Accident Coverage - AL, AR, AZ, CO, FL, IA, ID, MI, MO, OH, SC, TN, TX, WI
• (July 18) Critical Illness Coverage - AL, AR, AZ, CO, IA, MI, MO, SC, TN, TX, WI
• (September 1) Dental Coverage - AL, AR, DC, DE, GA, IA, ID, KS, LA, MI, MO, MS, ND, OH, OK, SC, SD, TN, TX, WI, WV, WY

Assurant Supplemental Coverage offers:

• Easy and quick online quotes and submission at assuranthealthsales.com
• Responsive and reliable customer service and administration handled by Assurant Health
• Generous commissions — and more ways to increase your income potential

Start quoting these plans today. You’ll find all the information, materials and tools you need at assuranthealthsales.com.

Note: Health Care Reform regulations do not apply to Assurant Supplemental Coverage.

The new Assurant Affordable Health Access
In the wake of the health care reform changes, we found a great opportunity.

From the beginning, Assurant Affordable Health Access plans have provided great value at a low price point. Now, we’ve done some fine tuning and produced an even better plan. Your clients have a new option to access health care, and multiple ways to stretch their dollars with access to discounts and services.

As part of a special release, these new plans will be available for quoting in many states beginning September 11, 2010. More information is coming your way soon.

The same health care reform regulations that apply to our Individual Medical portfolio do not apply to the new Assurant Affordable Health Access plans.*

Health Care Reform updates
As we prepare to launch the new plan, sales of the current Assurant Affordable Health Access Plans B and C are being discontinued in all states. Applications will be accepted until August 31, 2010, 10 p.m. CT. The last available effective date is September 15, 2010.

Watch for the new Assurant Affordable Health Access, available starting September 11 for October 1 effective dates.

*Limited hospital confinement and other fixed-indemnity benefits

There’s good news! With enhanced benefits, the plans in our Individual Medical portfolio give you more to offer and give your clients more value than ever before. Our streamlined IM portfolio includes our most popular individual products — CoreMed and OneDeductible. And we’re continuing to expand Assurant Clarity. All three plans have been updated to comply with the new health care reform regulations.

You’ve told us these plans are easy to sell because they stand out from the competition, and now they have these additional selling points:

• No lifetime maximum
• Wellness benefits included on all plans - no waiting - with first-dollar benefits on many preventive services

Updated features for CoreMed and OneDeductible have been included in a new IM brochure. For more information, see the article titled New IM brochure and health care reform updates

They were easy to sell before and now they have even more of the features your clients are looking for at a price that’s affordable. Run a quote today!

Note: Features listed above are available on plans with effective dates starting September 23, 2010.

Assurant Health Dental Insurance pays cash benefits when your clients receive dental checkups and treatment. And now you can offer better benefits than before:

• Preventive Services benefits are $75/visit for Basic and $100/visit for Plus
• Basic Services benefit amounts have increased significantly
• Major Services benefits are now paid at 50% the first year and in full thereafter

Your clients also can still count on all these advantages:

• Full preventive benefits with no waiting period — two visits covered each year
• Visit any dentist — no network restrictions
• Receive cash benefits directly, or have benefits paid to the dentist
• Portable — keep the coverage even if other insurance plans or jobs change

Sell the enhanced Dental Insurance option easily with Individual Medical plans — just check the box when you sell online. Quote for September 1 and later effective dates in AL, AR, DC, DE, GA, IA, ID, KS, LA, MI, MO, MS, ND, OH, OK, SC, SD, TN, TX, WI, WV and WY. In all other states where Dental is offered, the current Dental plan is available.

For more information on benefits, see the Dental Insurance flyer, Form 29998 (29998-CA-OK for California and Oklahoma). You’ll find the flyer on Find a Form at assuranthealthsales.com.

Assurant Clarity, our newest health insurance solution, is now available to your clients in Lincoln, Nebraska and Austin, Texas. Rates on Assurant Clarity plans in Lincoln are 20 - 25% lower than a comparable OneDeductible plan, and in Austin, rates are 30 - 40% lower than a comparable OneDeductible plan. (Rates apply to plans with effective dates September 23 and later.)

New markets for Assurant Clarity August 1:

• Lincoln, NE ZIP codes 68301, 04, 07, 14, 17, 28, 31, 33, 36, 39, 44, 47, 49, 58, 60, 64, 66, 68, 72; 68402-05, 07, 18-19, 22-23, 28, 30, 34, 38, 54, 61-63; 685.
  
• Austin, TX ZIP codes 786, 787
  Note: In Austin, for effective dates August 1 through September 22, Assurant Clarity is initially available with Elite plans. Assurant Clarity without Elite is available for effective dates September 23 and later.

Note: The network Web address is assurantclarityproviders.com.

Existing Assurant Clarity markets:

• San Antonio, TX ZIP codes 78002, 06, 09, 15, 23, 52, 56, 63, 66, 69; 781-782
• Beaumont, TX ZIP codes 77619, 27, 40-43, 51; 777
• Corpus Christi, TX ZIP codes 783-784
• Denver, CO ZIP codes 800-803; 80817, 29, 31, 40, 41; 809

Expanded networks
San Antonio — Methodist Healthcare's San Antonio Hospitals are now part of the Averde Health^SM network. Methodist Healthcare System is San Antonio's largest health care provider with eight acute-care hospitals.

Denver — The Averde Health network in Denver now includes Exempla Healthcare with three hospitals: Exempla Good Samaritan Medical Center, Exempla Lutheran Medical Center and Exempla Saint Joseph Hospital. Exempla's Physician Network is also included. It is currently the third largest health system in Colorado.

Enhanced benefits
In addition to introducing new markets and expanded networks, there’s good news for all Assurant Clarity markets. Plans with effective dates September 23, 2010, and later will have expanded benefits — no lifetime maximums and enhanced wellness benefits.

For those of you who use online sales tools, we’ve updated the Individual Medical descriptive bullets you can select to display on your personal Web page. There is now a bullet to market Assurant Clarity products. To review or update your current bullet selections, go to assuranthealthsales.com and select “Create a FREE website” on the home page under Help Me Sell.

Brochures on assuranthealthsales.com and in Supply
New brochures with the enhanced benefits (available on September 23) are now on Find a Form. Nebraska brochures include the plan benefits prior to September 23 in the PDF. Nebraska brochures, with an insert of the benefits prior to September 23, are in Supply now. New Texas and Colorado brochures will be in Supply on August 9.

New IM brochure
The Individual Medical brochure is all new. Our streamlined IM portfolio includes our strongest, most popular individual products — CoreMed and OneDeductible. The new brochure, designed for both agents and consumers, provides a comparison of the CoreMed and OneDeductible plans, and clearly demonstrates the uniquely different value of both plans. Both plans comply with health care reform regulations.

New brochures are available now on Find a Form, and will be in Supply August 9. State-specific versions are available for Idaho, Minnesota and New Hampshire. There is one version for use in: California, Colorado, Kansas, Oklahoma, Texas and Virginia. All other states will use the generic brochure.

Health care reform and underwriting updates
In compliance with the Patient Protection and Affordable Care Act (PPACA), we’ve made these changes for Individual Medical portfolio plans (CoreMed, OneDeductible, Assurant Clarity) effective September 23, 2010:

• No lifetime maximums.
• Wellness benefits included with 100% coverage on many services: Preventive services listed on the United States Preventive Services Task Force Web site are now covered with no waiting period. Services listed as Grades A and B are paid at 100% before customers pay deductible or coinsurance. Go to ahrq.gov/clinic/uspstfix.htm and review the “Recommendations” for more information. The “Grade” is listed in the summary of each recommendation. State guidelines also apply.
• Transplants, CMJ/TMJ treatment and sterilization: No maximum limits. Benefits are subject to plan provisions.
• Behavioral Health and Substance Abuse: No annual limit for OneDeductible and Assurant Clarity. Benefits are subject to plan provisions. State guidelines also apply. Note: Since CoreMed does not have a Behavioral Health benefit, this change does not apply to CoreMed.
• Dependent eligibility: Dependents are eligible to stay on their parents’ plan until age 26 regardless of marital or educational status, financial dependence or residency. This applies to plans in all states.
• Pre-existing limitations: Limits do not apply to anyone under the age of 19. Dependents under age 19 will be guaranteed issue. They will not be declined, ridered or issued a condition-specific deductible. Also see the bullet regarding the discontinuation of child-only plans below.
• CT plans: Products marketed in Connecticut have been updated to comply with health care reform regulations. Updated Connecticut brochures are available on Find a Form now and will be in Supply August 9, 2010.

Discontinued plans
As we move into a new health insurance environment, we are streamlining our product portfolio. The following plans are being discontinued:

• Elite plans have been discontinued in all states.
  Except for RightStart Elite, the last day to submit applications for Elite plans is September 21 with a last available effective date of September 22, 2010. Applications for RightStart Elite are no longer being accepted. The last day to submit applications for these plans was July 16 with a last available effective date of August 28, 2010.
  RightStart®, RightStart HSA, SaveRight^SM, MaxPlan^SM sales have also been discontinued in all non-Elite states.
  
• IM child-only plans have been discontinued. Quoting systems and TeleApp packets have been updated. Applications are no longer being accepted. The last day to submit applications for these plans was July 16.

Assurant Health has created a customer story program for agent use titled, "Customer Stories In Their Own Words.” This program provides you with a series of easy-to-access customer stories, which highlight positive customer experiences with Assurant Health, for use in your sales and promotional efforts. Each story is available to view as a video, and a companion article will be offered as a PDF. To access the customer stories, visit assuranthealthsales.com and locate this new resource under the Sales News section on the home page.

Version 3.6 will be the last release of the Individual Medical Proposal Software. Due to the overwhelming success of our internet-based quoting and application system tools, production of both the downloadable software and hard disk end November 13, 2010.

With software being discontinued, now is the perfect time to convert to the other sales tools we offer for submitting your business. You can quote, save, edit and submit business online, and the tools will speed up the turnaround time of your applications. All our IM products are available for easy access and comparison (except in Utah, where the universal application is required). Simply visit our agent sales Web site at assuranthealthsales.com and click on "Create a Quote" to get started. If you’re still inclined to submit an application the traditional way, just print out the quote from the Web site and complete the paper application.

We’ve made the difficult decision to discontinue new Individual Medical sales in New Mexico. The last day to submit applications was July 16 with a last available effective date of August 28, 2010.

Policyholders may add dependents and spouses, and make plan changes even after the last day of new business. We will continue to administer our in force business in New Mexico, serving your clients’ needs with the valuable benefits and services provided by their plans. Reinstatements will be allowed.

While short-term, temporary plans are not affected by health care reform changes at this time, we’ve used this opportunity and tailored our Short Term Medical to streamline your sales, so it’s easy to increase your earnings in this new marketplace. Here’s the new, streamlined Short Term Medical plan for effective dates September 1, 2010, and later:

• One basic plan with flexible options, available for 30 to 180 days. Coverage needs beyond 180 days are well suited for Assurant Health Individual Medical.
• Expanded deductible options: $1,000, $2,500, $3,500 and $5,000. The $5,000 deductible is now available with 180-day plans. Options vary by state.
• More coinsurance options: We’ve added 50% and 80% options with the $3,500 deductible. 50%, 80% and 100% options are still available with the $5,000 deductible. Options vary by state.
• Health Savings Accounts and STM: Many of our STM plans, including all plans with 100% coinsurance and deductibles of $2,500 and higher are HSA-compatible.* That means your clients coming from plans with Health Savings Accounts can continue their HSA contributions.
  * HSA out-of-pocket maximums apply: $5,950 individual/$11,900 family.

Discontinued options:
With the goal of streamlining the STM plan design, we’ve eliminated some options:

• 12-month plans, $250 and $500 deductibles, and the 100% coinsurance option with the $1,000 deductible are no longer available.
• We’ve also discontinued the limited-benefit temporary plan, HealthSaver®, in all states effective July 17, 2010. HealthSaver has been automatically removed from the online sales tools, My Web Page and My Sales Links. Agents who use these tools don’t need to make any changes.

STM brochures, faxables and enrollment forms are updated with the new plan design. All other marketing materials on Find a Form will be updated over the next few weeks.

• Orange States — There are changes for this cycle in these states
• Grey States —There are no changes for this cycle or no new business in these states

Good news on Individual Medical rates
We’ve announced the good news that we have added many valuable plan benefits for customer.... Now for even better news! On plans effective September 23, your customers will receive these enhanced benefits, on average, at NO additional cost on CoreMed — and at only an 8% increase on OneDeductible. Rate changes will vary widely by market, plan and applicant demographics. In general, plans with higher deductibles will experience higher increases, and female applicants will experience higher increases than male applicants.

Note: Trend is not included in the rates listed in this communication. Our normal trend will be added September 23 in AK, AL, AR, AZ, CA, CT, DC, FL, GA, IA, IL, LA, MD, MI, MO, MT, NE, OK, PA, SC, TN, TX, VA, WI and WY. In the rest of the states it will be added, as it typically is, October 1, 2010.

Enhanced Dental Insurance
The enhanced Dental Insurance option is available September 1 and later effective dates in AL, AR, DC, DE, GA, IA, ID, KS, LA, MI, MO, MS, ND, OH, OK, SC, SD, TN, TX, WI, WV and WY. Read the complete story (link to story).

New STM rates
In the following states, plans with effective dates September 1 and later will have new rates: AK, AL, AZ, CA, DC, FL, GA, HI, IA, ID, IL, LA, MD, MI, MO, MT, NE, OK, PA, RI, SC, TN, TX, VA, WI and WY.