Agent Listings

COMPULIFE^{^{^{^®}}} Software, Inc.

(800) 798-3488

Term4Sale Agent Listings

Note: The following are the rules for the operation of the Term4Sale agent listing service. The information is published here to ensure that consumers and agents know that nothing about the operation of this site, or the provision of agent names, is hidden from public view. The site exists to benefit consumers, by providing up-to-date term comparisons and listings of agents who subscribe to Compulife and want to be publicly listed.

Background

Compulife Software established a separate company called Term4Sale, Inc. The purpose of the new company is to provide the public with a web site to do free term insurance comparisons. The public can also use the site to locate Compulife subscribers in their area. Consumers are encouraged to contact those subscribers for further information about term policies and to purchase their term insurance from independent agents who use the Compulife program.

Agents are listed on a separate page from the insurance comparison results. The reason is quite simple: The comparison provided to the public is not the work of an agent, it is the work of Term4Sale, Inc. Term4Sale DOES NOT SELL INSURANCE.

Attached at the end of this web page is a copy of Term4Sale, Inc.'s very first U.S. press release. This will explain the concept further. The balance of this bulletin will explain the rules related to Postal Code Listings.

Postal Code Listings

In Canada, names of subscribers are provided to consumers based upon the first three digits of the postal code in which the consumer resides. Each consumer, requesting a list of subscribers, will be given the names of three subscribers. For that reason a maximum of 3 subscribers will be listed in any one 3 digit postal code.

In the event that there are less than three subscribers listed in a specific postal code, agent/subscribers who are listed in the closest numerically adjacent postal codes, within the same state, will be given to the consumer. In all cases consumers will receive three names and phone numbers.

Free Postal Codes

All Compulife subscribers, receive TWO FREE "home postal code" listings. Those postal codes must be a local phone call from the agent's home or office. The significance of a "home postal code" is explained further.

Agencies, who purchase the Compulife program to provide quotes to multiple agents, are entitled to THREE FREE home postal code listings.

Purchasing Additional Postal Codes

Compulife subscribers may be listed in more than one postal code by purchasing additional postal codes.

No one subscriber may purchase more than 5% of the total postal code listings in the system. Term4Sale reserves the right to reduce that percentage in the future, once sufficient numbers of subscribers participate in the purchase of postal codes.

To ensure that the purchase of multiple postal codes is not a barrier Term4Sale has established a low starting price of $1 per month; $12 per year, per postal code listing. Therefore, if a Compulife subscriber wants a total of 5 postal codes, the cost would be $36 per year. Remember, the first two postal codes are free, the next three cost $4 per month times 12 months.

Postal code listings are based upon a calendar year. A subscriber wanting to purchase a postal code listing in March of the year, would need to pay $1 per month for the 10 months left in the current year, for a total of $10. Listings purchased after July 1st in the year, must be purchased together with the renewal for the following year. Therefore, a subscriber purchasing a postal code listing in September, would need to pay $1 per month for the 4 months left in the current year, and $1 per month for the 12 months of the following year, for a total of $16.

Postal Code Auctions

Those Compulife subscribers wanting to be listed in a postal code which currently has three Compulife subscribers can initiate a postal code auction by bidding a multiple of $1 per month for the postal code. The bid must be greater than the current established price for the postal code. For example, if the current price of a postal code is $1 per month, and Term4Sale receives a bid of $3 per month, then each of the existing three subscribers are called and advised that we have a bid of $3 per month. Those existing listed subscribers have the opportunity to immediately respond to the bid by indicating their own maximum counter-bid for that postal code. If one existing subscriber fails to match the $3 per month bid, and if that subscriber was also the lowest bid, they will be replaced by the new subscriber who bid the $3 per month. The new subscriber will not pay more than $1 per month more than the amount the lowest bidder was prepared to pay.

If more than one subscriber has the same lowest bid, then the subscriber who has been a Compulife subscriber the longest will remain. The remaining subscriber will have to pay their new bid.

Those initiating an auction, where existing subscribers match the bid offered, will not be permitted to initiate a new auction for that postal code for a period of 120 days.

Those removed from a postal code, due to losing to a higher bid, may not initiate a new auction in that postal code for a period of 60 days. Those who are removed from a postal code, due to losing to higher bid, will have the unused balance of their annual payment refunded (this is the reason why all bids must be multiples of $1 per month).

Bids and increased prices for postal codes will be based upon the calendar year. For example, a new bid of $3 per month made in March, would be a total payment of $3 times 10 months, for a total of $30 for the balance of the calendar year. Bids made after July 1st must be made for the balance of the current year, and for the following year. For example, a bid of $4 made in September, would be a total payment of 16 months times $4, for a total of $64.

Home Postal Codes

The only exception to the postal code listing and auction process is the home postal code. Each Compulife subscriber is entitled to two home postal codes per software license. The home postal code is provided at NO CHARGE. A home postal code can be any postal code which is a local phone call from the subscribers location.

Those listed in their home postal code are protected from any auction process or from higher prices for that postal code where subscribers from outside that home postal code are involved.

For example, a home postal code listing cannot be removed by auction from that postal code unless the other two in that postal code also have that postal code as a home postal code. In the event a fourth subscriber, having that postal code as a home postal code, wanted to be listed, they may initiate an auction and prices can be raised. To summarize, where all three subscribers listed in a postal code have that postal code as their home postal code, no one from outside that postal code area can be listed.

The home postal code rule reinforces Compulife's view that consumers should find local agents in order to benefit from personalized service. It is our long term objective to have local agents (home postal codes) listed in every significant postal code across the country. Until then, those from outside a local area are welcome to participate and be listed.

No Charge Phone Call

Those Compulife subscribers wanting to be listed in a postal code, who reside outside the local phone call area of that postal code, must list their toll-free number for the residents of that postal code. If Term4Sale learns that a listed agent is not a local or toll-free call to consumers in that postal code, then the agent will be removed from that postal code.

If a subscriber name is given to a consumer in an adjacent postal code, where the phone call is long distance, Term4Sale will not remove that listing. However, given that this will happen frequently in the early days, agents may want to use a toll-free phone number. However, many consumers who we give toll-free numbers to, question where the agent actually resides. This underlines that many consumers wish to do business with a local agent and we agree with that. Therefore, if you are local in a particular postal code, it would be to your advantage to use your local number there.

Use of Agent Listing Fees

In Canada, listing fees are paid to Compulife Software Inc. Until such time as revenue is significant, Term4Sale, has no intention of incorporating a separate company for administering the funds. Moneys paid in Canada are taken into the general funds of Compulife Softare Inc. (the Canadian company) and are used by that company.

Moneys paid in the U.S. to Term4Sale, Inc. are used three ways:

1. 1/3 of listing fees will be paid as a royalty to Compulife. This permits Term4Sale to use the Compulife Internet engine and to use Compulife's name in the promotion of that service. In exchange Compulife provides managerial oversight and rate updates to the site.

NOTE: The Internet technology used for Term4Sale is for sale at $995 per year to those who wish to establish their own site/service. Compulife also has an authorized web provider who provide access to our Internet technology for a much lower cost. Click Here for a list of Compulife's authorized web providers.

2. Term4Sale will underwrite its own expenses. Cost of modifications and improvements to the site, maintenance of the site, etc., will be paid to Compulife or to whoever Compulife retains to do that work for Term4Sale.

3. The balance of funds will be used to promote and advertise the site. A copy of the initial Term4Sale press release is attached.

If you have questions or comments, please direct them to Term4Sale president Bob Barney at (800) 798-3488.

Term4Sale Initial Press Release

FOR IMMEDIATE RELEASE

www.term4sale.com

Contact: Robert (Bob) Barney, President, (800) 798-3488

Compulife incorporates Term4Sale, Inc. and automates the provision of agent/subscriber names to the public.

Nicholasville, KY (September 29, 1999) -- Compulife Software, Inc. has taken steps to improve the term insurance price comparison service which it provides free of charge to consumers at www.term4sale.com (or www.termforsale.com).

The latest enhancement is the instant on-line provision of Compulife subscriber names at the Term4Sale website.

Since 1982 Compulife Software has provided term comparison software to life insurance agents/brokers. Agents pay an annual subscription fee in order to have access to Compulife's comprehensive PC software program and regular term rate updates. Because Compulife attempts to include every term policy available in the market, regardless of how it is sold, Compulife's program is the most complete and up-to-date term comparison software available.

The software behind the Term4Sale website uses the same term rate files as the PC version which Compulife sells to agents. Compulife president Bob Barney emphasizes that neither Compulife nor its wholly owned subsidiary Term4Sale, Inc. sell life insurance. The companies have no financial interest in the sale of any policy.

Mr. Barney argues that this makes Term4Sale the most unbiased and objective source of term insurance price comparisons found anywhere on the Internet.

Term4Sale's website is easy and fast to use. Consumers do not identify themselves and so their privacy is protected. Term4Sale encourages consumers who want to buy term insurance to locate an agent who uses the Compulife version of the software. Compulife emphasizes that a local agent can provide personalized service and advice at no additional cost.

Mr. Barney explained, "Many Internet insurance services try to mislead consumers into believing that they will pay less by avoiding an agent. That's not true. No one can sell life insurance without a state license. Regardless of whether consumers deal by phone or in person they are dealing with an agent. In addition, agents and/or their employers earn money through the commissions already built into the price of the policy. Regardless of whether you buy by phone or in person you're paying for that commission. Given that you don't save money regardless of who you buy from, consumers should take advantage of a local agent's personalized service and advice."

Barney asks, "Would you do your own tax return if it cost you the same as sitting down and discussing the whole thing with an accountant who then does it for you?"

Term4Sale gives consumers the names of three Compulife subscribers at the click of a button.

Barney explained, "No one can guarantee that the person you are talking to is giving you the best advice. The only way to ensure that you are getting the best advice is to get more than one opinion and compare. That's true no matter what you are buying and that's why we give consumers the names of three subscribers. Consumers should talk to each one and compare the advice not just the policy prices. There are more product differences than just price and often you will be better off paying a small amount more for a better product and/or company. Regardless, once you have determined which agent is giving you the best advice you need to buy from that person because that's how they are paid."

Compulife began Term4Sale as a way for its subscribers to compete with the growing number of on-line "direct to the consumer services" advertised nationally. Most of Compulife's subscribers are individual agents who do business locally. Even though Compulife's term comparison program lets those agents offer superior information to the public, most are not able to compete with the advertising budgets of national operations.

Term4Sale charges Compulife subscribers a nominal fee to be listed at the website. Subscribers residing in the actual postal code are offered a "home postal code" advantage over those subscribers listed who reside outside that postal code. Regardless, Compulife requires the agent to be either a local phone call or toll free phone call from the postal code. Compulife's goal is to have three local subscribers in every postal code.

Barney hopes that Term4Sale will become his subscribers collective response to "direct to the consumer" operations. By pooling agent fees Compulife helps its customers compete with the advertising budgets of national competitors, while giving consumers the names of local agents committed to finding the best term products.

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Thank You for Visiting Term4Sale

Compulife thanks you for visiting our web-site. We would encourage you to tell your relatives and friends about "Term4Sale" which can be found at either: termforsale.com or term4sale.com