OSEVP – Sales and Marketing Group

March 2, 2017

Circular No. SMG17-13

Memo to: All Agency Leaders

Subject: 2018 Million Dollar Round Table Requirements (PY 2017) and
Membership Application

The Million Dollar Round Table (MDRT) has announced its requirements applicable in
production year 2017 for membership eligibility in the 2018 Table. The methods of
qualifying to the 2018 Table are the Commission (FYC), Premium (FYP) and the Income
qualification method.

Following are the requirements and rules for qualification and membership application.

I. Qualifying for the MDRT:

1. The three methods for qualification to the MDRT, and the corresponding production
credit requirements per membership level, are as follows:
Commission (FYC) Premium (FYP) Income*
Membership Qualification Qualification Qualification
Level Method Method Method
2017 FYC 2017 FYP 2017 Income
Round Table P 1,259,000 P 2,518,000 P 2,165,500
Court of the Table 3,777,000 7,554,000 6,496,500
Top of the Table 7,554,000 15,108,000 12,993,000

*This method is only available for current or previous MDRT members.

2. In qualifying for the 2018 MDRT, please be guided by the following rules:

2.1. Production credits for use under the Commission and Premium methods shall
be based on first-year commissions or first-year premiums received in 2017
for business paid for, issued and taken-up within the same year, and shall
have remained in force as of December 31, 2017.

2.1.1. Please take note that submission of all applications and official
receipts of all premiums payments for inclusion as credits for
qualification to the 2018 MDRT must be done not later than the

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 company’s prescribed cut-off date for submission of applications and
issuance of receipts in December 2017.

2.2. Production credits for use under the Income method shall be based on the
total annual gross income received in 2017 from first year and renewal
commissions on all lines of business; service fees, persistency incentives;
quarterly production incentives; yearend production incentives, policy count
incentives and other income from HMO business and fees received from
clients for financial planning advice.

2.3. Credits will also be given for first-year commissions received on premiums
paid in 2018 for policies issued in 2017, or for first-year premiums paid in
2018 for policies issued in 2017.

2.4. First-year commissions must have been actually paid to and received by the
soliciting agent in 2017, and first-year premiums must have been actually
received by the company in 2017, to be eligible for credit in the 2018 MDRT.

2.5. Total eligible credits that may be earned from business written on the lives of
the applicant, his/her spouse, or their dependents shall not exceed 5% of the
minimum FYC, FYP or income requirement, which is equivalent to P62,950
FYC, P125,900 FYP, and P108,275 of eligible income.

2.6. The MDRT mandates that production submitted must come from any of a
number of identified products, each with a corresponding percentage credit
allowance. Listed below are the types of products which an MDRT applicant
may submit for production credit:

a. Unlimited Credits/Risk-Protection Products:

Individual and group policies written by a life insurance company: life

policies; single premium and/or short-term endowment policies; annuities;
pension cases; critical illness; long term care; accidental death and
dismemberment; and disability income contracts.

b. Limited Credits:

Additional credits may come from individual and group health care
coverage; as well as mutual funds, securities, wrap accounts and financial
planning fees. For IL applicants, credits will be given to FYC earned, or
FYP generated, on individual and group health care insurance written
both by Insular Life and I-Care.

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 2.7. Percentage credits per plan

UNLIMITED CREDITS / RISK-PROTECTION PRODUCTS

Individual Life Policies: FYC/RYC* Credits FYP Credits
I-Assure Sulit 100% 100%
Wealth Secure 100% 100%
Wealth Secure Education 100% 100%
Wealth Secure Health 100% 100%
Wealth Secure Retirement 100% 100%
Wealth Assure 100% 100%
Wealth Assure Education 100% 100%
Wealth Assure Health 100% 100%
Wealth Assure Retirement 100% 100%
Wealth Protect 100% 100%
I-Shield Prime 300 / 500 / 1000 100% 100%
I-Fulfill 100% 100%

Individual Single-Premium policies:

Wealth Secure Top-ups 100% 6%

Wealth Assure Top-ups 100% 6%
Wealth Builder 100% 6%
Wealth Builder Top-ups 100% 6%
Dollar Wealth Builder 100% 6%
Dollar Wealth Builder Top-ups 100% 6%
Peso Variable Returns Asset (VRA) 100% 6%
Peso VRA Top-ups 100% 6%
Dollar Variable Returns Asset (VRA) 100% 6%
Dollar VRA Top-ups 100% 6%

Direct Marketing policies:

College Provider 100% 100%

Secure Protection Plus 100% 100%
Sure Cash 5 100% 100%
Prime Care 100% 100%

Group policies:

Group Life policies 100% 10%

Group Health Care policies 100% 10%
Comprehensive Group policy (CGP)
- Group Life portion 100% 10%
- Fresh fund 100% 6% new premium
invested

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 LIMITED CREDITS
Healthcare policies and other services: FYC FYP

I-Care products (individual health care) 100% 100%

Financial Planning Fees/Fees for 100% of net fee 100% of gross fee
Advice
* RYC credits may only be used for qualification to the Income qualification
method.

2.8. 2018 MDRT aspirants may qualify based either on their FYC credits earned,
or their FYP credits, or their income generated during production year 2017.
Production credits submitted must not be a combination of any of these.

2.9. Only agents who were approved for MDRT membership at least once before
are eligible to apply for the 2018 MDRT using the Income qualification
method. First-time MDRT applicants must use either the Commission or
Premium methods to demonstrate qualification for membership.

2.10. When qualifying using the Commission and Premium qualification methods,
a minimum of 50% of the 2018 entry-level MDRT production requirements
(earned/generated in production year 2017) must come from Unlimited
Credits/Risk-protection products listed in item 2.6. The prescribed minimum
amounts of P629,500 FYC or P1,259,000 FYP from Unlimited Credits/Risk-
Protection products are required to be met before an applicant may use any
credit from policies listed under the Limited Credit category also detailed in
item 2.6, to qualify for the Round Table, Court of the Table, and Top of the
Table levels.

2.11. 2018 MDRT aspirants using the Income qualification method must submit a
combined income production from new business sold during the production
year and income derived from risk-protection products (listed in item 2.6)
that are eligible to earn Unlimited Credits under the commission or premium
qualification methods.

2.11.1. The types of income given by Insular Life to agents that may be
derived from risk-protection products and credited under the Income
qualification method include first year and renewal commissions on all
lines of business; service fees, persistency incentives; quarterly
production incentives; yearend production incentives, and policy count
incentives.

2.11.2. Agents may also credit income from sources outside Insular Life, such
as income from HMO business and fees received from clients for
financial planning advice.

2.11.3. A minimum requirement of P620,597 must be made up of income from

new business (FYC) generated during production year 2017, and a
further minimum amount of P620,597 is required to come from income
detailed in item 2.10.1 associated with the Unlimited Credit/Risk-
protection products listed in item 2.6. It is possible that the same

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 business (i.e. FYC on a new life insurance policy) can meet both these
requirements.

2.11.4. To qualify for either the Court of the Table or the Top of the Table
levels under the Income qualification method, an applicant must also
meet the P620,597 minimum new business generation requirement,
and the P620,597 minimum requirement from income associated with
risk protection products.

2.12. For more guidelines in qualifying for the 2018 MDRT, please refer to the
attached Membership Information for the 2018 Million Dollar Round Table.
More information can also be found by visiting the MDRT’s website at
www.mdrt.org.

3. Applicants for the 2018 MDRT are required to be current members of an insurance
or financial service Professional Association. For the Philippines, the professional
associations recognized by MDRT are the Life Underwriters Association of the
Philippines (LUA-P), or the PIFAAP. MDRT aspirants who are not current LUA-P,
or PIFAAP members should therefore apply for 2017 LUA-P or PIFAAP
membership and pay their membership dues to LUA-P or PIFAAP within 2017.

4. Agency leaders (unit managers, district sales managers, and GA presidents) may
also qualify for 2018 MDRT membership in their capacity as underwriters. For
purposes of qualifying for the MDRT, however, only their personal production shall
be counted.

II. Reporting Production Credits and Applying for Membership in the 2018 MDRT:

1. Credits reported for MDRT qualification shall be based on official company figures.
A certifying letter signed by Insular Life’s certifying officer, reflecting the applicant’s
MDRT commission or production during the production year must accompany the
agent’s application for membership as proof of qualification. Agents applying for
membership from the 1st to the 10th years using the commission and premium
qualification methods are required to submit a certifying letter with their
applications.

1.1. Insular Life recently enrolled in MDRT’s Electronic Excel Certification

Program, wherein reporting of production credits will be done electronically.
Through this program, old and recurring members who qualify through the
Commission and Premium methods can apply for membership online and do
away in accomplishing the paper certifying letter. The company’s certifying
officer shall be the one to attest to the validity of the report production and
the applicant’s qualification for membership. Production credits using the
Income Qualification method will still use the prescribed Income Certifying
Letter.

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 2. Applicants who apply for membership online using the income qualification method
(2nd to 10th year MDRT applicants) may upload a self-signed Income Certifying
Letter. Other acceptable supporting documents may be uploaded such as statements
of income signed by a representative of the company, or a representative of the
applicant’s personal agency/corporation/office. An income tax statement may also be
used.

3. When applying under either of the three qualification methods, an applicant may
have a Certified Public Accountant (CPA) sign certifying letters for financial
planning fees or fees for advice that are paid directly to the agent.

4. MDRT applicants who have achieved Life Member (LM) status need not submit
proof of production (i.e. certifying letters or commission/income documents) with
their membership application beginning on the 11th year. They only need to declare
on their application forms to their meeting or not meeting the production
requirements.

4.1. MDRT Qualfying and Life Member (QLM) applicants must meet the MDRT
requirements based on official company records to become eligible for the
benefits under Insular Life’s International Recognition Support Program
(IRSP).

4.2. For comprehensive details regarding production qualification and verification

rules for those applying for commission, premium or income qualifying
methods, please refer to the section on Reporting on page 5 of the attached
Membership Information for the 2018 Million Dollar Round Table.

5. Applications for 2018 MDRT membership, with accompanying certifying letter

forms, of all 2017 and 2016 MDRT members will be mailed by MDRT to the Head
Office in November 2017. Head Office will, in turn, send these to its branches for
turnover by the District Administrative Supervisor (DAS) or Regional Sales Staff
(RSS) to the concerned MDRT member. Membership application and certifying letter
forms may also be requested and downloaded from the MDRT website at
www.mdrt.org.

5.1. Quarterly reports on MDRT qualification are loaded into the Agent’s Portal
E-Library through the FMR. We recommend monitoring your qualification
through these reports.

5.2. If there are missing production credits, a substantiation report is required to

further verify qualification to MDRT membership. This also includes
substantiating production from Direct Marketing and Group policies.

5.3. The MDRT mandates that only approved MDRT members may be recognized
as such during industry events such as the Philippine Life Insurance
Congress/LUAP Convention, or the LUAP/MDRT Echoing.

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 6. Membership dues for the 2018 MDRT’s Round Table, Court of the Table and Top of
the Table shall be announced within 2017. Membership dues may either be paid
online at the MDRT website via credit card; or by indicating the credit card details
on the application form; or via an international bank draft or a dollar-denominated
check payable to Million Dollar Round Table.

7. In order to facilitate a faster approved membership, we encourage applicants to

apply and pay online via credit card at the MDRT website www.mdrt.org. MDRT
membership dues shall be shouldered by the applicant.

8. The international deadline for submission of 2018 MDRT membership applications

and payments to MDRT headquarters in the United States is on March 1, 2018.
Applications mailed after this date will be subject to an additional US$200 late filing
fee.

9. The 2018 MDRT Annual Meeting will be held on June 24 – 27, 2018 in Los Angeles,
California, USA.

10. Reward and recognition privileges given by Insular for approved 2018 MDRT
members are detailed in circular SMG17-14 dated March 2, 2017 on the subject 2018
Insular Life’s International Recognition Support Program (IRSP).

May the foregoing rules and guidelines be our MDRT aspirants’ guide toward membership
eligibility in the world’s premier association of financial services professionals.

(original signed)
JESUS ALFONSO G. HOFILEÑA, LLIF, FLMI

cc: Office of the CEO

Office of the President and COO
OCAE/OCME
Sales Division Heads/BMD Head
RHs/GA Sales Mgr./RCs
MASD/ACAD/BPMS Dept. Heads/RAMs/DASs/RSSs

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