1035 Replacements CarriertoCarrier Automation Presented by Cynthia Price

1035 Replacements Carrier-to-Carrier Automation Presented by… Cynthia Price - Prudential Annuities Cory Stark - DTCC Jennifer Cogdell- Lincoln Financial Group Cheri De. Boer-Stinson - Cooperative Technologies

1035 Replacement Pain Points Standardization The lack of Suitability Question Standardization. Inconsistent Replacement Forms Gathering ceding carrier replacement requirements and policy data. No widespread adoption of ACORD 951 Form Adoption Unknown Ceding Carrier Requirements 951 Form. Ceding carriers requiring their own Inconsistent Replacement IGO /NIGO Definitions surrender forms. No common definition of of full. Conservation. DTCC RPL Solution IGO/NIGO. Price Shadow Market Conduct / Carrier-to-Carrier Legal Compliance buy-in. No standards Non-Data Communications for Non-data Carrier Communications. Ceding to Surrender Forms Price of implementing Money Settlement full DTCC RPL solution. No Gathering Ceding Policy Data carrier-to- carrier Money Settlement. Carriers with Carrier-to-Carrier e. Signature Acceptance Conservation. No carrier-to-carrier e. Signature acceptance. Wet Required signature -required. Fax not always Wet Signature Fax not Accepted Legal Compliance Buy-In definition of accepted. No common Conservation Messaging across multiple parties is complicated. No Carrier Automation Readiness Analysis initial analysis of carrier members replacement automation readiness. Officer stamped signature. Status

1035 Replacements Building Blocks 2014 § ACORD 951 Form Adoption § IGO / NIGO Definition Standards § Non-data Carrier to Carrier Communications Best Practices § 1035 Yellow. Pages Lite § Quarterly Carrier Automation Analysis § Process Mapping

1035 Replacements Building Blocks Carrier-to-Carrier Automation 2013 - 2014 Non-Data Carrier Suitability -to-Carrier Question Communications IGO /NIGO Definitions Best Practices Standardization & Standards ACORD 951 ESignature Acceptance Form Adoption Quarterly Carrier Automation Analysis Replacement Process Mapping IRI 1035 Yellow. Pages Lite Wet Signature vs. FAX Acceptance Ceding Carrier Requirements

1035 Replacements Building Blocks Carrier-to-Carrier Automation 2015 DTCC Carrier-to- Carrier Money Settlement Non-Data Carrier Suitability -to-Carrier Question Communications IGO /NIGO Definitions Best Practices Standardization & Standards ACORD 951 ESignature Acceptance Form Adoption Quarterly Carrier Automation Analysis Replacement Process Mapping IRI 1035 Yellow. Pages Lite Wet Signature vs. FAX Acceptance Ceding Carrier Requirements

Benefits to Carrier-to-Carrier Replacement Money Settlement (STL) § Reduce manual process & cost to generate check writing and wire transfers § § Reduce check mailing to incorrect address Same day settlement Reduce call out to ceding carriers Integrated settlement with NSCC settlement processing

STL for Replacement Settlement DTCC Implemented March 2015 Carrier Implementation Q 4 2015 Pilot Carriers § Transamerica § Lincoln § Voya § Forethought (Se 2) § New York Life § Sammons (Se 2) § Additional Carriers for 2015/2016 Prudential, AXA, Allianz, Nationwide & Jefferson

1035 Replacement Automation

1035 Replacements Building Blocks Carrier-to-Carrier Automation 2015 Replacement Status Communications DTCC Carrier-to- Carrier Money Settlement Non-Data Carrier Suitability -to-Carrier Question Communications IGO /NIGO Definitions Best Practices Standardization & Standards ACORD 951 ESignature Acceptance Form Adoption Quarterly Carrier Automation Analysis Replacement Process Mapping IRI 1035 Yellow. Pages Lite Wet Signature vs. FAX Acceptance Ceding Carrier Requirements

1035 Replacements Building Blocks 2015 / 2016 § Carrier to Carrier Communications § Best Practices & Standards Adoption § § § Escalation Contact Directory § Batch Update § § § NIGO/IGO Rules Non-Data Communications Standards Surrender Form Best Practices ACORD 951 Ceding Replacement Requirements e. Signature New York Reg 60 Carrier-to-Carrier Replacement Attachments

1035 Replacements Building Blocks Carrier-to-Carrier Automation DTCC RPL Solution Conservation DTCC Carrier-to- Carrier Attachments DTCC Carrier-to- Carrier Money Settlement Replacement Status Communications Non-Data Carrier Suitability -to-Carrier Question Communications IGO /NIGO Definitions Best Practices Standardization & Standards ACORD 951 ESignature Acceptance Form Adoption Quarterly Carrier Automation Analysis Replacement Process Mapping IRI 1035 Yellow. Pages Lite Wet Signature vs. FAX Acceptance Ceding Carrier Requirements

1035 Replacements Building Blocks 2015 / 2016

1035 Automation Breakout Conference Attendee Mobile APP Questions Do you think the 1035 Automation WG is focusing on the right building blocks to obtain the goal of end-to-end, carrier-to-carrier automation? 1. Yes 2. No Carriers What are your plans for implementing the DTCC STL carrier-to-carrier replacements money settlement processing program? 1. We are on schedule to implement in 2015 2. We plan to implement in 2016 3. We are reviewing this initiative for a valid business case 4. We have no plans to implement this service at this time If not yet committed to STL, what do you think the barriers are for your company to adopt 1035 Replacement Money Settlement? 1. Cannot build a valid business case 2. Cannot get funding 3. Competing projects and lack of prioritization 4. Cannot support process changes needed to implement Is your organization planning on participating in the DTCC carrier-to-carrier Attachments (ATT) program in the future? 1. Planning 2016 Participation 2. Planning Participation Beyond 2016 3. Participation To Be Determined 4. Not planning on Participating

1035 Automation Web-Resources http: //irifocus. info (User Name / Password Required) • 1035 Replacements / Automation Work Group Page Document Library • • STL Enhancements for 1035 Exchanges STL Cost Benefit Analysis IRI 1035 Yellow. Pages Lite Overview – Under Coop-Tech Overview Files IRI 1035 Automation Readiness Matrix and Statistics ACORD 951 Form 2013 – Zip File Regulation 60 – Proposed Rulemaking IRI Focus Home Page IRI 1035 Yellow. Pages Lite – Carrier & Distributor Sign-up DTCC Web-Site: STL Enhancements for 1035 Exchanges http: //dtcc. com/~/media/Files/Downloads/Investment-Product-Services/Insurance-and-Retirement. Services/User%20 Group%20 Information/Replacement%20 Money%20 Settlement/STL_Enhancements_for_1035_Exchange_Requireme nts. ashx

1035 Replacements IRI, DTCC & ACORD Human Resources User Name & Password Requests: http: //irifocus. info & www. my. IRIonline. org • Jim Young, Vice President of Operations and Technology Money Settlement (STL) • • • Cory Stark - DTCC: CStark@dtcc. com Ellen Hoover –Lincoln Financial: Ellen. Hoover@lfg. com Cynthia Price - Prudential Annuities: cynthia. price@prudential. com ACORD 951 1035 / Replacement Form Adoption • • Sandra Hampel – ACORD: shampel@accord. org Cynthia Price - Prudential Annuities: cynthia. price@prudential. com IRI 1035 Automation Working Group • Cheri De. Boer-Stinson – Group Chair: CStinson@Cooperative. Technologies. com 1035 Yellow. Pages Lite – Ceding Carrier Database • Cheri De. Boer-Stinson – Cooperative Technologies: CStinson@Cooperative. Technologies. com

IRI 1035 Automation - PHASE II Survey Results 2. 00 2. 20 2. 40 2. 60 2. 80 3. 00 3. 20 3. 40 3. 60 3. 80 4. 00 Carrier-to-Carrier Money Settlement Carrier-to-Carrier Electronic Attachments Standardize the Order Entry Replacement Questions asked by Carriers & Distributors. . . Industry-wide Adoption Strategies for all established Replacement Best Practices, Standards and Definitions including, NIGO/IGO, Replacement Requirements, Carri. . . Carrier-to-Carrier Status Messaging Acord 951 Adoption Follow-up IRI 1035 Escalation Issues Point of Contact Directory Adoption and Maintenance Create a Standard Definition of Conservation Qualified / Group Pension Task Group to focus on roadblocks around communication and surrender form requirements specific to this block of busines. . . Review Batch 1035 Status email Best Practices Replacement Transaction Specification Review New York Reg 60 Task Group to obtain clear definitions and time-lines on all changes and communicated with NY state DOI on IRI Member recommendations. Ceding Carrier Data feed based on DTCC Policy Transfer process Somewhat Necessary (Weighted Average) Extremely Necessary

STL for Replacements - Roles Ceding Carrier Role • Create Settlement data file based on format and business rules • Transmit Settlement data file to DTCC • Accept and correct rejected transaction Settlement data file • Accept Money Settlement Detail data file from DTCC • Accept Money Settlement Summary data file from DTCC Role Receiving Carrier Role • Accept data file from Ceding • Accept Settlement data file from • Validate data received against • Accept Money Settlement Detail • Transmit rejected transactions to • Accept Money Settlement Carrier business rules Ceding Carrier • Pend all daily accepted transactions • Transmit accepted transactions data file to Receiving Carrier • Send Money Settlement Detail data file to Ceding and Receiving Carriers • Send daily settlement transactions to NSCC Settlement System • Send Money Settlement Summary data file to Ceding and Receiving Carriers DTCC data file from DTCC Summary data file from DTCC