There are several key factors that influence the type of policy that can be offered, the benefits available, and the cost of the policy:

1. Occupation


2. Age


3. Sex


4. Income


5. Health


6. Smoker Status


7. Issue State


8. Existing Coverage


9. Premium Payor


10. Applicable Discounts

Occupation

Occupation class is generally a reflection of employment hazard level (i.e., electrician vs. executive). However, other factors such as job or industry stability, that affect claims and the persistency of policies, are also used to determine the premium charged, type of policy, riders available, and overall limits. It is the actual work and most hazardous duty performed, not the title, which determines a prospect's occupational class. Ohio National offers five basic occupational classes:

• 4A (4AP, 4AS & 4AM) — Professionals and certain high-income corporate executives with primarily office and consulting duties. (Split for premium purposes with 4A Preferred receiving a 6 percent discount from 4A Standard, and 4A Medical paying 10 percent more). Examples: Physicians, Attorneys, Corporate Senior VPs ($50K+ income).
• 3A — Most management-level, white-collar people with office duties and some travel. Examples: Teachers, Managers (under 50K income).
• 2A — Most technical, non-hazardous occupations involving special skills such as clerical, technical, scientific or supervisory (no manual work). Examples: Retail Salespersons, Secretaries, Medical Technicians.
• A — People who perform light manual labor or supervisors who may do manual labor on occasion. Examples: Electricians, Machine Operators, Factory Shift Supervisors.
• B — Most hazardous occupations involving manual labor and/or where the accident hazard is greatest. Examples: Butchers, Welders, Bricklayers.

For more information on occupation classes, see the Disability Income Marketing Guide (Form 8722) Rev. 3/10, or the DI software for guidance. All businessowners with 20 percent or more interest must be classified using the illustration software. It measures the factors that influence the quality of risk such as age, income, amount of time owning the business, and number of employees. High-quality risks will be classified more favorably than the occupation class chart indicates, and lower-quality risks will be rated less favorably.

To use the matrix, you first determine the appropriate class using the traditional occupation class chart found in the Marketing Guide or computer software listing. Second, determine the adjustment factor for each category (age, years owning, income, number of full-time employees). Third, determine the total adjustment factor and adjust the occupation class as indicated. Refer to page 25 of the Marketing Guide for a list of occupations that are ineligible for upgrade consideration.

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Ohio National is not affiliated with, nor does it endorse or sponsor, any particular prospecting, marketing or selling system.

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