KEY ACCOUNT / MLA FIELD GUIDE

Transcription

1 KEY ACCOUNT / MLA FIELD GUIDE DEFINITIONS Key Account any account that is a Multi-State Account, Multi-Location Account or Large Account as defined below. Multi-State Account any AFLAC payroll deduction account with one authorizing officer able to approve AFLAC benefits for all employees regardless of where they are located, that has an enrollment site located outside of the state hierarchy and is more than 150 miles from the border of the assigned region of the Key Account OSA and has more than 200 employees at all enrollment sites combined. Multi-Location Account any AFLAC payroll deduction account with one authorizing officer able to approve AFLAC benefits for all employees regardless of where they are located, that has three or more enrollment sites located within the borders of one state hierarchy, has more than 200 employees at all enrollment sites combined, and has at least two enrollment sites that are more than 100 miles apart. Large Account any AFLAC payroll deduction account with one authorizing officer able to approve AFLAC benefits for all employees regardless of where they are located and that does not meet the criteria of a Multi-State or Multi- Location Account but has 500 or more employees at the enrollment site(s). Key Account Original Servicing Agent the associate, coordinator or other appointed agent who personally (1) sets up the Key Account as an AFLAC account (2) submits to worldwide headquarters an Insurance Program Acknowledgment Payroll Deduction form (M-0135R, revised first quarter of 2000) that expressly authorizes the prompt enrollment of all employees of the Key Account and is signed by a corporate officer who has full and total authority to authorize the enrollment of all employees at all locations and (3) promptly organizes and conducts the initial enrollment of AFLAC products in the Key Account. The Key Account OSA for Group Medicare Supplement for a Key Account s retirees may be different from the OSA for the employees of the Key Account. Worldwide headquarters will recognize only one name submitted on the Insurance Program Acknowledgment form as the Key Account OSA. If the name of more than one associate, coordinator or agent appears on the form, worldwide headquarters will designate the first name listed as the Key Account OSA. This agent may remain the Key Account OSA until AFLAC, in its sole discretion, transfers the Key Account and assigns it to another agent for servicing. M-0850R (2/2000) 1

2 A Key Account may also replace or terminate the Key Account OSA, subject to the approval of AFLAC. The Key Account OSA is subject to the Account Servicing Guidelines and will be responsible for servicing the same as any other OSA under the Guidelines. REGISTRATION All Key Accounts must be registered with AFLAC by the Key Account OSA filing a completed Key/Multi-Location Account Questionnaire, M-0333-R-KIT with Payroll Account Management at worldwide headquarters. Key Accounts that are not registered at worldwide headquarters are subject to the following sanction: reversal of production credit at all levels of the hierarchy. This form must be filed as soon as practicable but not later than 30 days prior to enrollment. Keep in mind that key accounts that have special requests need to be filed as soon as information is available. PAYROLL ACCOUNT MANAGEMENT DEPARTMENT The Payroll Account Management Department is designed to give the field force a onestop shop for handling Key Accounts. The department is responsible for the coordination of all aspects of Key Accounts and has individuals assigned to assist the field force with the beginning stages of establishment, the enrollment, on-going service, problem resolution, and subsequent re-enrollments to ensure a continued relationship. The Payroll Account Management Department is available to all levels of the field force and works with each associate to ensure the account is set up with the highest degree of professionalism. It is necessary to register all Key Accounts with the Payroll Account Management Department at worldwide headquarters. There are three areas of the Payroll Account Management Department: the Key Account Coordinators, the Multi- Location Account Specialists and the Multi-Location Account Administrators. All three areas have very highly trained individuals and are responsible for different aspects of the Key Account. 2

3 Key Account Coordinators are responsible for ensuring that our large and complex Multi-Location Accounts are established according to the associates and accounts requirements. These individuals work with all areas of worldwide headquarters to guarantee that any exceptions to licensing, products, selling, servicing and processing of new business are implemented and followed through. They work closely with the account and the Key Account OSA to ensure the account is established properly. They work with all areas of the field force involved to train the field force on special procedures and to communicate the needs the account may have. They also work with the account and the associate throughout the year to combat any difficulties the account may have and to guarantee that we have a good relationship and subsequent reenrollments. Multi-Location Account Specialists are responsible for ensuring that all procedures and guidelines are in place and the entire field is notified. They work closely with the Key Account OSA to notify individuals who need to be informed of the procedures. They work closely with the Key Account Coordinator to document all requirements of the Multi-Location account, thus allowing the involved field force to be properly notified. They are responsible for establishing the account as a Multi-Location Account and for preparing the servicing manual, which will be specialized to meet each account s needs. They work with the field force to answer any questions that arise during the enrollment and work with the account to make sure that all information is being submitted properly. Multi-Location Account Administrators are responsible for maintaining the tracking system and working closely with the Multi-Location Account Specialists. They are responsible for notifying the Multi-Location Account Specialists of locations we have not received enrollment information from and communicating any comments that need to be relayed to Key Account OSAs about their relationship with individual locations. Here are some of the benefits you will receive from registering the Key/Multi-Location Account: 1. We have trained individuals who specialize and work only on accounts. They have defined duties and have worked very closely with the field to implement procedures for their area. 2. We are set up and designed to handle administrative details. We can handle many of the follow-up calls and we can mail all service information. Our job is to be in the office to answer telephone calls and implement written procedures. 3. We will ensure that all field force individuals involved are fully informed, and know and agree with the requirements of the Key Account OSA and the account. 4. We have information on all areas where the account may have a location. We can help ensure that you have the best individual helping with the locations. 3

4 5. We have tracking systems in place to monitor and provide information for each location, not just the main office. We have reports that identify locations which have yet to be enrolled and we can act accordingly to ensure that all locations are visited according to the account s requirements. 6. We can provide follow-up assistance to ensure that all subsequent re-enrollments are handled and that accounts meet their enrollment period deadlines for cafeteria plans. The Multi-Location Account Specialist will work closely with the Multi-Location Account Administrator to identify any challenges before they become problems. KEY/MULTI-LOCATION ACCOUNT IMPLEMENTATION Key Accounts with special requirements need to be registered in the early stages. Worldwide headquarters has an established Large Account Management Process Team to help with implementation and to ensure that all requirements of the Key/Multi-Location Account are understood and met. The members who make up the Large Account Management Process Team come from all areas of the company, including Marketing, Client Services, Administrative Services, AFLAC New York, Claims, Information Technologies, Customer Call Center and New Business. The Key Account Coordinators will work with this team to ensure that special requirements are addressed, any exceptions are reviewed, printing and compliance issues are resolved, and any special establishment procedures are completed. Multi- Location Account Specialists are responsible for notifying the field force about enrollment procedures, service requirements and follow-up enrollments. They will also notify the field force of the initial enrollment and new hires, provide support for ongoing service and work closely with the originating associate to ensure that the subsequent re-enrollments are handled to specification. The size and needs of your account will determine the time frame to register your Key Accounts. The following will serve as guidelines: Large, complex Key Accounts need to be registered as early as possible. This enables the Large Account Management Process Team to address all issues and ensure that any special system requirements are met. Key Accounts with multiple locations not needing any exceptions should be registered at least 60 days prior to the enrollment start date. Key Accounts with only one location should be registered at least 30 days prior to the enrollment start date. The above time estimates are approximations in ideal situations. It is understood that in some instances these time frames cannot be met. 4

5 LICENSING Upon receipt of the Key/Multi-Location Account Questionnaire, the Payroll Account Management Department will coordinate with the Associate s Licensing Department to begin licensing procedures in any state the associate and the hierarchy are not licensed and appointed but are requesting to be licensed. Individuals, regardless of their level (associate, coordinator or broker), must be licensed and appointed with AFLAC in any state where they are going to be receiving commissions. Requesting to receive a portion of the first-year or renewal commission in states where you are not licensed and appointed is illegal and will not be accepted. When requesting to receive nonresident licenses, be aware that it may take anywhere from a couple of days to several months to complete the process due to state insurance department response times. Some states do not allow a corporation to receive a nonresident license; in this case an individual with the corporation will need to obtain the license. All individuals must be licensed before the business is written to receive commissions. ADMINISTRATIVE SERVICES (FLEX ONE ) When a Key Account is using AFLAC Administrative Services, Payroll Account Management will work jointly with Administrative Services to ensure that all compliance issues are addressed and that any special procedures are documented, monitored and agreed upon by all parties. A PDR (Plan Document Request) must be submitted before any special processes can be initiated. It is important that Administrative Services receive all start-up documentation at least 30 days prior to the plan year start date. This includes the executed Plan Document, the RSA (Reimbursement Services Agreement), banking information, and, if appropriate, the Board Resolution. It is critical that Administrative Services receive all SRAs (Salary Redirection Agreements) at least 10 days prior to the plan year start date. All SRAs must have the full name of the employer (no abbreviations) and be signed prior to the effective date of the Plan. If the associate(s) is paying fees or a portion of the fees, the associate s writing number(s) and how the fees are to be paid will be provided to the Administrative Services Department from the Payroll Account Management Department. All required paperwork must be completed and approved in advance and should be indicated on the PDR (Plan Document Request). 5

6 BILLING AND PAYMENT OPTIONS Standard billing and payment options are available. However, many Key/Multi-Location Accounts are more sophisticated in their demands on how they want to be billed and how they pay. The billing options are as follows: Paper invoice A paper invoice is generated and mailed to the account approximately 15 days before the invoice is due. Future invoices will be mailed per the billing mode selected. Electronic invoice This is a paperless billing method that allows the billing statement to be given to the account through electronic transmission. The account is required to use one of the standard layouts or adjustments can be made to meet the needs of both the account and AFLAC. Magnetic tape (cartridge, diskette, reel) A replica of the invoice is created on the desired media and mailed to the account approximately 15 days before the invoice is due. Future invoices will be mailed per the billing mode selected. The account is required to use one of the standard layouts or adjustments can be made to meet the needs of both the account and AFLAC. The payment options are as follows: Paper invoice The accounts reconcile the invoice and indicate on the invoice who they are remitting funds for and why. They must also indicate if they are remitting a different amount than what is billed for any employee. Printout The accounts must submit, with their payments, a printout detailing whom the deductions are for. If possible, they should also indicate any reasons for nonpayment. The printout must be printed in the same order as their invoice. Express payment This method enables computerized reconciliation by AFLAC of the account s deductions and allows for quicker more accurate application of funds submitted by the account. 6

7 SUPPLIES When a large amount of supplies is required, a proper amount of time will be needed to ensure that Inventory Services is properly stocked. Remember, it is not necessary to have 2,000 of all items when there are 2,000 employees at the account; not all individuals will have the same needs. Overprinting is available at a nominal charge if the account desires to have their logo added to our forms or brochures. This procedure requires a minimum of two to three weeks, so prepare accordingly. All forms and sales pieces must be approved through the Compliance Department prior to being used in the solicitation or sales process. Be sure to review and order all required forms for solicitation in the state where you are conducting business. Each state insurance department has set regulations that must be followed regardless of resident or nonresident license status. EXISTING LOCATIONS ON A MULTI-LOCATION/STATE ACCOUNT When a Multi-Location/State Account is secured, all locations are verified in the system to see if they are a previously established account. If there are locations that are already existing accounts, the service and history of these locations will be analyzed prior to inclusion in the Multi-Location/State Account agreement. If the account wants the associate who secured the Multi-Location Account agreement to be responsible for all servicing and the existing location has not been serviced according to company guidelines, a reassignment of servicing associates will take place. If the existing servicing associate has a grievance with any procedural variations being made to his/her location, he/she must submit an objection in writing to Payroll Account Management. The objection will be reviewed in committee by worldwide headquarters and a final decision will be made within 10 business days from receipt at worldwide headquarters. 7

8 SPLIT COMMISSION ARRANGEMENTS When using the services of associates outside your state organization, the standard split is at least 70% to the Level 01 commission. If a split less than the standard 70% to the Level 01 commission is being requested, it must be supported by a business plan that is approved by all state sales coordinators involved and worldwide headquarters. The business plan should address the number of employees to be seen, the logistics of the enrollment, the involvement of the Key Account OSA, the amount of follow-up work to be done, the amount of service to be performed and other factors that need to be considered. The business plan should be submitted at least 30 days prior to the start of the enrollment. In some instances not splitting the business and giving 100% of the commissions to the enrolling associate works the best (for example, very few employees in remote locations). Split arrangements do not have to be the same for initial enrollments and service. In many cases, having a split arrangement for enrollments and a different split arrangement for service work is in the best interest of the account and the Key Account OSA. ASSIGNING LOCAL ASSOCIATES Associates and coordinators within the Key Account OSA s hierarchy or reporting structure can be used for the enrollment of the Key/Multi-Location Account regardless of where the branches are located. However, it will be required that if the account or locations of the account are more than 150 miles from the key account OSA, local associates will be enlisted to help with the enrollment and servicing of that location. The local state sales coordinator will be given the Multi-Location Account information and will be asked to recommend associates based on the criteria specified by the Key Account OSA and the account. If the Key Account OSA wants to specify an associate to service a specified location, it should be indicated on the Key/Multi-Location Account Questionnaire so that worldwide headquarters may seek approval from the local state sales coordinator. If specific individuals are desired, then it will be necessary to inform worldwide headquarters to ensure that they meet the guidelines and have approval for servicing those locations. In some instances, the individual who is desired may not be selected to enroll and service the specified location. If it comes to the attention of the Key Account OSA or worldwide headquarters that any individual responsible for servicing a location does not abide by the set 8

9 procedures, they will be removed from servicing their location and reassignment will take place. AFLAC reserves the absolute right to take away production credit from all associates and levels in the Key Account OSA s hierarchy if the assignment of local associates falls outside the specified guidelines above. Once the Enrollment Certification Program (see below for more information) is implemented, the local servicing associates for new accounts will be assigned from this pool. ENROLLMENT CERTIFICATION PROGRAM OVERVIEW By using Key/Multi-Location services, you can be assured that your locations will be enrolled and serviced by Certified Enrollment Specialists. These associates have gone through a specialized training workshop that has taught them how to properly enroll a Key/Multi-Location Account, including a standardized way to fill out all enrollment forms (the SRA and PDA). In addition, they have been taught some advanced Flex issues, a background on employee benefit programs, and an overview of retirement plans. To become certified, these associates have met the following requirements: 1. They are SmartApp-certified and own their own laptops (CF-61 or newer). 2. They are Flex-certified. 3. They have participated in at least two full-flex enrollments. 4. They have been contracted with AFLAC for at least six months. 5. They have written over $20,000 in AP. To remain certified, they have to meet the following requirements: 1. They must continue to own their own laptops and dial in regularly for updates. 2. They must continue to maintain an address and check for messages on a weekly basis. In addition, these associates have signed agreements stating that they will agree to the following: 1. They will act in an ethical and professional manner. 2. They will act in the best interests of the account, its employees and AFLAC. 3. They will enroll and service Multi-Location Accounts assigned to them in strict accordance with the servicing guidelines. This includes using proper commission 9

10 splits/sit codes, paying close attention to timelines, selling only the products specified, and filling out and faxing to Multi-Location Marketing an MLA Service Report after the initial enrollment and after each subsequent service call. 4. They will not sub-contract out any servicing and enrolling of a Multi-Location Account to any noncertified associate. 5. They understand that in order to continue their status as a Certified Enrollment Specialist they must continue ownership of a SmartApp computer and maintain an address. 6. They understand that AFLAC WWHQ reserves the right to decertify them if they fail to uphold the standards put forth in the Enrollment Certification Program Guide. MAKING CHANGES TO A KEY/MULTI-LOCATION ACCOUNT The Key Account OSA may make procedure or location changes at any time. Changes submitted by assigned servicing associates will be denied and the associate will be referred to the Key Account OSA who is assigned to the account. Notification of changes must be submitted in writing to the Payroll Account Management Department. To ensure that all locations are included in the Key/Multi-Location Account agreement, a list of locations is maintained in the tracking system. Any additions or deletions to the original list should be submitted so that the tracking system may be updated. New locations will be treated the same as if they were submitted with the original Key/Multi-Location Account agreement. NEW YORK LOCATIONS Many of our Key/Multi-Location Accounts have locations or are headquartered in states under the rules and compliance regulations of our AFLAC New York operation. These locations and/or headquarters may have different requirements that need to be addressed. The states that are currently under the AFLAC New York umbrella include New York, New Jersey, Massachusetts and Connecticut. Any associate wishing to receive commissions on policies written in the AFLAC New York states needs to be licensed in those states, and also needs to be contracted and appointed with AFLAC New York. The account will receive two different invoices and will need to submit two separate checks (one for each company). By law, one company cannot accept payment for policies on both accounts and issue payment to the other company. 10

11 In AFLAC New York states, the policies are very different and in some cases the products are not available. Separate payroll account authorizations [AFLAC U.S. (M-0135) and AFLAC New York (NY-0135)] will need to be signed and submitted to the respective company to establish separate accounts with two separate account numbers being assigned. BROKER INVOLVEMENT WITH KEY ACCOUNTS Many of our Key/Multi-Location Accounts are being secured through new and existing relationships with brokers. If a Key/Multi-Location Account involves paying commissions to brokers, the broker must also be licensed and appointed in any state where they are expecting to be paid. If compensation to the broker will be paid through a split arrangement, special situation codes do not need to be assigned. If compensation to the broker will be paid through an override agreement on both sides of the split arrangement, special situation codes will need to be assigned. Assignment sheets will need to be completed and situation codes will be assigned to all associates involved in the Multi-Location Account. If a broker is identified after the Key Account OSA receives an authorization to offer AFLAC products and it becomes necessary that the broker be compensated, the compensation will be in the commission package which has historically been used. If the broker has been paid through a split transmittal, the compensation will be through a split transmittal; if the compensation has been through a linear package, the broker will be required to receive a situation code to be paid through a linear package with the Key Account OSA s hierarchy. ENROLLMENT PROCEDURES Approval from all state sales coordinators involved is necessary prior to the assignment of enrollment teams and the approval of the account. Upon approval of the Multi-Location Account, information is sent to the state sales coordinators for immediate assignment of a servicing associate for their location(s). The local servicing associate will be listed as the assigned servicing associate for that location and will be responsible for enrolling and servicing their location according to the Multi-Location Servicing Manual provided for that account. The servicing manual will include pertinent information needed to properly enroll and service the account. Information will be obtained from the originating associate, regarding Administrative Services, product approvals, enrollment dates, special requirements, etc. 11

12 An associate must be licensed within any state in which they expect to receive any form of commission. Nonresident license requests can take as long as six months. This should be kept in mind when setting up enrollments in the various states. FOLLOW-UP AND FUTURE SERVICE WORK The Multi-Location Account Department has a tracking system in place that requires a Multi-Location Account Service Report, (M-0790) be returned after each enrollment and service visit. This will allow tracking of each location. Locations not serviced, according to Payroll Account Servicing Guidelines, Bulletin , will be subject to reassignment. The Multi-Location Account Department s tracking system will allow monitoring and tracking of each location. The system enables WWHQ to provide enrollment and service information on individual locations (such as date of last service, results of service call and any pertinent information regarding individual locations of the Multi- Location Account). If an associate establishes a Multi-Location Account outside their resident state and the originating associate terminates and/or fails to comply with Bulletin , the resident state of the account may assume servicing responsibilities for the Multi- Location Account. 12