Articles
New Broker Incentive, Override Programs Announced
Delta Dental Receives 'AA-'  Rating from S & P
Details on the Broker Incentive Program
Details on the Broker Override Program

New Broker Incentive, Override Programs Announced

Delta Dental is pleased to announce revisions to its Broker Incentive Program, as well as the creation of Delta Dental's new Broker Override Program. Both plans are explained in detail in this special issue of Broker News, as well as on our website at www.deltadentalnj.com."Delta Dental enjoys a special relationship with its broker community, and these new programs are an extension of that partnership," says Mark Nadeau, Vice President, Marketing, Delta Dental Plan of New Jersey, Inc. "Almost 90% of our business comes to us through brokers. Brokers offer the most extensive distribution network for our products."We wanted to develop a meaningful program that would compensate brokers who have made sustained and significant contributions to Delta Dental's business," Nadeau adds. The resulting programs include incentives that are based not only on how much new business the broker brings to Delta Dental, but also how much existing business the broker is able to retain. Delta Dental paid nearly $250,000 in Incentive and Override commissions to brokers for their exceptional efforts in 2000. Incentive and Override commissions for 2001 will be delivered to brokers personally by their account executive in early March 2002. "It's important to reward both the hard work and loyalty of our brokers," says Allan Berkin, National Accounts Manager for Delta Dental. "Delta Dental's success can clearly be linked to the broker community." April Bonner, Account Executive in New Jersey, states, "The new override program will further demonstrate that we value our brokers as partners. Our brokers can and should be rewarded for Delta Dental's continued growth and success. This plan accomplishes these goals. "If you have any questions regarding these programs, please contact your Account Executive.

Delta Dental Receives 'AA-' from S & P

Delta Dental has just completed Standard & Poor's most comprehensive analysis and received an 'AA-' counterparty credit and financial strength rating for the second straight year. The strong rating solidifies Delta Dental's position as New Jersey's leading dental benefits carrier, and makes the company the most attractive alternative for businesses looking to improve benefits packages through the implementation of a dental plan. Standard & Poor's predicts a stable outlook for Delta Dental, citing its extremely strong capitalization, excellent earnings, and good business position as major ratings factors. Standard & Poor's noted that Delta Dental is extremely well capitalized, giving the company a capital adequacy ratio in excess of 400%. This indicates that Delta Dental clearly has the financial capacity to meet policyholder obligations. It also noted that Delta Dental is well positioned for continued growth, anticipating a 10% increase in membership in 2001."To maintain our status as New Jersey's leading and largest dental benefits carrier, we consistently evaluate every aspect of our operation to ensure the quality and accessibility of our services, the satisfaction of our members, and the financial stability of our business," said Delta Dental President and CEO Walter VanBrunt. "Earning high ratings from Standard & Poor's for two consecutive years allows us to confirm to our clients that we are a secure, well-established company. This is especially meaningful in a time when many other companies and businesses are facing turbulence and financial uncertainty."

Details on the Broker Incentive Program

BROKER INCENTIVE PROGRAM
Amended Effective January 1, 2001

1. Purpose
   To recognize and reward brokers who maintain and grow a stable block of business.
2. Eligibility
   Any broker who has annualized in-force commissionable fully insured premium with Delta Dental Plan of New Jersey ("Delta") groups totaling at least $500,000 and less than $5,000,000 at the end of the prior calendar year ("Total Book of Insured Business") and whose Incentive Commission Base equals or exceeds $250,000.
3. Incentive Commission Rate
   Incentive Commission Rate depends upon the size of the broker's Total Book of Insured Business at the end of the prior calendar year.
   
   

   Total Book of Insured Business for the Prior Calendar Year	Incentive Commission Rate for the Current Calendar Year
   $500,000 - $999,999	.5%
   $1,000,000 - $4,999,999	1%

   
   
4. Incentive Commission Base
   The Incentive Commission Base is the "Net" annualized increase in fully insured premiums for groups which are new to Delta and for which the broker has received commissions in the current calendar year, offset by annualized premium losses in fully insured business during the same calendar year.
5. Incentive Commission
   The Incentive Commission is the Incentive Commission Rate (#3) for the current year applied to the Incentive Commission Base (#4) for the current year.
6. Delta's Right to Amend or Terminate Program
   Delta reserves the right to amend or discontinue this program at any time. In the event of a termination of the program, Delta will not be liable for any incentive commissions which would otherwise have accrued after the date of termination of the program.
7. Mergers
   In the event of a merger of brokers' businesses, Delta will separately calculate and pay incentive commissions for the calendar year in which the merger occurred.
8. Interpretation
   Delta reserves full discretion with respect to any interpretation of the Incentive Program.

How the Broker Incentive Program Works

Details on the Broker Override Program - Amended Effective January 1, 2001

1. Purpose
   To recognize and reward brokers who maintain and increase their significant block of insured business.
2. Eligibility
   Any broker who has received commissions from Delta Dental Plan of New Jersey ("Delta") for fully insured groups whose premiums totaled at least $5,000,000 during the prior calendar year.
3. Override Commission Rate
   The Override Commission Rate increases with the size of the broker's annual fully insured premium during the prior calendar year ("Total Book of Insured Business").
   
   

   Total Premiums for Insured Business for the Prior Calendar Year	Override Commission Rate for the Current Calendar Year
   $5,000,000 - $9,999,999	2%
   $10,000,000 - $14,999,999	4%
   $15,000,000 +	5%

   
   
4. Override Commission Base
   The Override Commission Base is commissionable net fully insured premium for which the broker has received commissions from Delta in the current calendar year. The first twelve months of commissions are not counted where the group was not new to Delta. The premium will be prorated to the number of months the coverage was in force. "Net" means offset by prorated losses in fully insured business during the same calendar year.
5. Override Commission
   The Override Commission for the current year is the Override Commission Rate applied to Override Commission Base.
6. Delta's Right to Amend or Terminate Program
   Delta reserves the right to amend or discontinue this program at any time. In the event of a termination of the program, Delta will not be liable for any incentive commissions which would otherwise have accrued after the date of termination of the program.
7. Mergers
   In the even of a merger of brokers' businesses, Delta will separately calculate and pay incentive commissions for the calendar year in which the merger occurred.
8. Interpretation
   Delta reserves full discretion with respect to any interpretation of the Incentive Program.

How the Broker Override Program Works