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Slide 1: Pre-Paid Legal Services, Inc. and subsidiaries
Slide 2: Five Areas To Evaluate •The Company •The Need/Market place •The Product •The Compensation •The Timing
Slide 3: The Company •Over 30 Yea rs In Business •Began With A Serious Aut o Accident •Public Company Since 1976 (NYSE:PPD) Harland C. Stonecipher Founder, Chairman, and CEO
Slide 4: This Business Is Easy Jus t let the tools do the work for you! • H and Out • Mail Out • Call Website DVDs & CDs Recordings Third Party
Slide 5: The U.S. Chamber of Commerce Thom as J. Donohue, President and Chief Executive Officer of the U.S. Chamber of Com merce recently wrote in a lett er to H arland Stonecipher, “It is clear t hat millions of Americans are seeking viable business opportunities in order to secure their financial future, be t heir own boss, and bet ter balance the responsibilities of career and family. Pre-Paid Legal Services and companies like yours are pr opelling t his powerful trend forward. In doing so, you are not only providing unique opportunit ies for the Pre-Paid
Slide 6: Sales History $500 GROSS REVENUE IN MILLIONS $400 $300 $200 $100 0 2001 2002 2003 2004 2005 2006 $303 $350 $361 $386 $423 $444 Our s ales history continues t o improve as we move up and to the right each year.
Slide 7: It’s Not If, But When 100 M 75 M 50 M 25 M 0 Million 93 Million Hospitalizations in 2002* Court Filings in 2002** 36 You Are More Than Twice As Likely To Be In Court Tha n You Are To Be Hospitalized! *Hospital Statistics, American Hospital Association, 2002 Edition ** Examining the Work of State Courts, 2002
Slide 8: Have You Ever . . . • Been Overcharged For A Repair? • Tried To Return A Defect ive Product? • Received A Traffic Ticket? • Lost A Securit y Deposit? • Been Audited? • Signed a Contract? • Purchased A Home? • Prepared A Will?
Slide 9: The Main Reasons People Don’t Seek Legal Counsel: • They Are Intimida ted By Lawyers • They Don’t Know Who To Call • They Believe It Would Cost Too Much The Most Common Responses To A Legal Dispute Are To: •Ignore The Problem •Try To Handle It Personally
Slide 10: What Do We Do Sim ply put, a Pre-Paid Legal Plan does for attorney and legal bills what medica l ins urance does for doctor and hospital bills .
Slide 11: Who Is Covered By The Pre-Paid Legal Membership? 1) The Member 2) The Member’s Spouse 3) Never Married Dependent Children Under 21 Living At Home 4) Dependent Children Under Age 18 For Whom The Member Is Legal Guardian 5) Full Time College Student s Up To Age 23 Never Married, Dependent Children 6) Phys ically Or Mentally Challenged Child Living At Home
Slide 12: Areas of Coverage for New York Resid ents • Preventive Legal Services • Motor Vehicle Legal Services • Trial Defense Services • IRS Audit Legal Services • Contingency Fee Services • 25% Preferred Member Discount
Slide 13: These serv ices are av ailable to you immediately when you enroll! Consultation on an Unlimited Number • Phone Preventive Legal Services of Matters • A Letter Written or Phone Call Made on an Unlimited Number of Personal Issues for You and Your Family • An Unlimited Number of Personal Contracts and Documents Reviewed Up To 10 Pages Each • Standard Will subject matter is available if advisable in yourYearly Updates Preparation and Provider Attorney’s sole discretion. UNDER TITLE I: A letter or phone call per Nevada residents limited to 50 hours of telephone consultation per year and five personal legal documents reviewed per Included benefits are provided at a reduced fee. Check benefit availability in your state/province. year. In New York, these
Slide 14: Preventive Legal Services continued • Wa rranty Assistance • Review of Leases and Other Documents • As sist ance in Contacting Government Agencies • Living Will Preparation • H ealth Care Proxy • Debt Collection R eview and Advice
Slide 15: Preventive Legal Services continued • Personal Financial Alt ernatives R eview Personal/joint bankruptcy Out-of-court arrangement s Out-of-court settlements • Tenant Review and Advice • Small Claims Court Advice • Consumer Prot ection Benefits
Slide 16: Preventive Legal Services continued • Legal Advice in Matters Relating to Social Security, Medicare and Vet eran’s Benefits • Legal Advice on Set tlement of an Est ate
Slide 17: These serv ices are av ailable just 15 days after enrollment! Motor Vehicle Legal Services If you or a family member is charged with a traffic violation which results in points being assessed, your Provider Lawyer will assist you for $25 • Representation for Certain Motor Vehicle Related Criminal Charges at a rate of $49 per hour • Driver’s license recovery assistance and/or personal Representation under this benefit is provided as a result of the operation of a properly licensed motor vehicle. Your membership helps you with the cost of representation for moving traffic violations and defense of motor vehicle related criminal charges. You are responsible for any court costs, fines, and related fees. Pre-existing conditions, charges of injury/property unmeritorious cases collection assistance DUI/DWI, hit and run, drug-related matters, and damage are excluded. Commercial vehicles with more than two axles are not covered. In New York, these benefits are provided at a reduced fee. Check benefit availability in your state/province. of $2,000
Slide 18: Trial Defense Services If you or your spouse face a civil suit or job-related criminal charges you will be repres ented by your Provider Lawyer if either of you is named defendant or respondent in a covered civil or job-relat ed crim inal act ion filed in court. You’ll receive repres entation under this benefit for $49 per hour for covered suits. Trial Defense Services cover the member and spouse for covered civil actions or for criminal actions which arise out of the performance of the covered person’s employment responsibilities. Not covered are dissolution of marriage, separation, annulment, child custody or other divorce-related matters, bankruptcy, charges of DUI/DWI, or drug-related matters. Acts or matters occurring prior to the membership that give rise to a lawsuit even though the lawsuit may be filled after enrollment are excluded as pre-existing conditions. You may use your 25% discount and the unlimited toll-free consultation benefit for any of these exclusions. In New York, these benefits are provided at a reduced fee. Check benefit availability in your state/province.
Slide 19: IRS Audit Legal Services When you are notified in writ ing of an IRS aud it or are requested to appear at the IRS about your t ax return, you’ll receive repres entation under this benefit for $49 per hour for covered suits. Coverage for this service begins with the tax ret urn due April 15th of the yea r you enroll.
Slide 20: Contingency Fee Services Personal injury claim review and evaluation/recommendation If your Provider Lawyer agrees you have a cas e worthy of pursuing, he or she will be paid only a percentage of what you ult imately collect. Your Provid er Lawyer fees will not exceed 25% in a personal injury case.
Slide 21: 25% Preferred Member Discount Your Provider Law Firm will render assistance at the preferred rate for legal services not otherwise covered by the membership. Even pre-existing matters can be covered under this portion of the plan! If you own a business and wish representation for the entity, you will receive a preferred rate of 25% less the Provider Law Firm’s corporate hourly rate*. Five business days advance notice is required for preparation in court representation. *Hourly rates for Referral Lawyers and court appearances may v ary. The information contained in this material is for illustrative purposes only and is not a contract. It is intended to provide a general overview of the coverage you have selected. Please remember that only the plan contract can give actual terms, coverage, amounts, conditions, and exclusions. Check benefit availability in your state/province.
Slide 22: Legal Shield The Legal Shield gives you and yo ur fam ily 24-ho ur access to legal con sultation fo r on ly $1 a mo nth fo r the follo wing situatio ns: • If yo u are detain ed by a law enfo rcem en t of ficer • If yo u are injured in an accident • If authorities attem pt to r em ove your child fro m yo ur home or custo dy • If yo u are served with a w arrant To co ntact yo ur Pro vider L aw Firm, simply call the to ll-free n umb er o n yo ur L egal Shield card . Yo u w ill reach the Pre-Paid L egal o ffices, w ho w ill then put yoLegalin con tact not apply if the memberPro vider Lthe influence ofm, so by u The u Shield membership will with yo ur is alleged to be under aw Fir or impaired yo alcohol, intoxicants, controlled substances, chemicals or can tocoinvolved with domestic violence or stalking;medicines, whetherin making, posting, theobtaining is ney. It’s prescribed or not; or member bond, alleged be nsult with an attorand/or assistance that easy. bail or other security required for release. Check benefit availability in your state.
Slide 23: How Much Will It Cost Well, with a Pre-Paid Lega l membership you recei ve all of this for only $24 a month! Isn't your family worth it? That's less than the price of a cup of coffee a day!
Slide 24: Identity Theft Shield "A merica's fastest Growing Crime" In Sept ember 2003, t he Federal Trade Com mission issued a report on the impact of Identit y Theft in the United Stat es and the numbers are ala rming: • 27.3 million victims - last 5 yea rs • 9.9 Million vict ims in 2002 alone • $53 Billion in losses And what’s worse, new records are expect ed this year.
Slide 25: It’s No Secret: Identity Theft is A Major Problem In America  Do you hand your credit card to servers at restaurants?  Do you supply personal information over the internet?  Do you keep your Social Security number in your wallet or purse?  Do you leave mail at your home or business for the postal carrier t o collect?
Slide 26: The Identity Theft Shield With Kroll, Inc. Krol l Background America is the world’s leading risk consulting company with more than 30 years of experience. They have been involved in many notable cas es : • As sist ed t he Kuwaiti government in invest igating Saddam Hussein's financial network • Responsible for the restructuring of Enron
Slide 27: Credit Report You’ll receive an up-to-date credit report through Experian at no additional charge wit h your membership. You will also receive a pers onal credit score calculated by a n ind ependent scoring service and a detailed analysis of that score. Continuous Credit Monitoring Your credit files will be regularly monitored. Sus picious activity will be brought to your att ent ion, providing you wit h ea rly d etect ion. You’ll receive prompt notice if any new accounts are opened in your name... or if d erogatory notat ions are added to your
Slide 28: Identity Restoration If your identity is stolen, get more than just information about how to restore your name and credit rating. As an Identity Theft Shield member you can rest easy knowing experienced professionals are working for you! • Fraud alert notifications will be sent on your behalf and applicable follow up will be done with affected agencies and institutions Identity Restoration will not apply if the identity theft is the result of a dishonest, criminal, malicious, or fraudulent act you, your spouse, or your child participated in, directed, or had knowledge of. Restoration services will not be provided for a known stolen identity event that occurred prior to enrollment date. You must be an active member to receive restoration services. Services provided do not cover financial losses arising from the identity theft. A signed limited power of attorney must be provided to Kroll when an Identity Theft Restoration case is opened in order for Kroll to work on your behalf and/or provide the Proactive Database Searches listed. A stolen identity event does not include the theft or unauthorized or illegal use of your business name, d/b/a, or any other method of identifying your business activity. • Proactive searches of applicable local and national
Slide 29: How Much Will This Peace Of Mind Cost The value of these services is priceless, but we had to put a price tag on it. Only $9.95 a month, in addit ion to your PPL membership, bot h you and your spouse recei ve the benefit s of the Identit y Theft Shield. This membership is also ava ilable as a st and-alone product for just $12.95/month.
Slide 30: It’s Simple The Pre-Paid Legal Opportunity is simply telling other people about this legal service and our business! It’s even easier now, jus t share a magazine wit h everyone.
Slide 31: Certified Field Training Program The Certified Field Training Program provides the new Associate help from the sponsor to get their business stated right. The new Associate simply does the following: •Works with their sponsor to create a list of prospects •Watches and learns as their sponsor presents the Pre-Paid Legal membership and business opportunity to their first three prospects
Slide 32: Get A Check, Then Get A Raise When you s i gn up yo ur thr ee new recrui ts wi th a members hi p wi thi n You your fi r st 45 d ays , yo u wi l l Associate recei v e $6 9 i n com mi s s io ns . Yo u wi l l al s o : • CFT qual i f y • R eceiv e ad v anced com mi s s io ns New Recruit and with a Membership ov er ri d es o n member shi p s al es • R eceiv e CFT comm is s i o ns on N ew R ecr ui t New R ec ruit New R ec ruit the bus ines s gener ated by your with a with a w i th a Me mber ship Me mbership Me mbership CFT recrui ts When your thr ee new recr uits s ign up thei r thr ee new recrui ts wi th a mem bers hi p, you wil l r ecei v e an ad d i ti o nal $20 7 i n CFT comm i ss io ns as wel l as $69 in members hi p sale over ri d es as you hel on the $24 Family T qual if y. Amounts shown are representative of commissions p them CFPlan. Commissions will be pre-rated for all other plans. Memberships sold by Associates participating in this program are still subject to applicable licensing requirements. H ere’s how it works:
Slide 33: Advanced Commissions - $24 Plan Pe rso na l S al e s Ad va n c e T ea m Ov e rr id e A d van c e C u mul a t i ve O v er r id e A d v an c e Ex ecutive Director Dir ecto r Manager Sen ior Associate Asso ciate C FT Asso ciate 168.47 138.47 115.39 92.31 69.24 23.08 30.00 23.08 23.08 23.08 23.08 122.32 92.32 69.24 46.16 23.08 A l l y ou ha v e t o d o i s c 4. e c $ 2o ll0 0 t : 1 st Mo n t h 's fe e + $ 10 . 0 0 On e Ti me E n ro ll me nt $ 3 4. 0 0 Residual income begins after the advance period. That means you get paid month after month for the life of the membership.
Slide 34: Get A Check, Then Get A Raise When you s i gn up yo ur thr ee new recrui ts wi th a mem bers hi p wi thin You your fi rs t 4 5 d ays , yo u wi l l Associate recei ve $9 7 i n comm i ss io ns . Yo u wi l l al s o: • CFT qual i fy • R eceiv e ad v anced com mis si o ns New Recruit and with a Membership ov er ri d es o n mem bers hi p s al es • R eceiv e CF T co mmi s s i ons on the N ew R ecr ui t New R ec ruit New R ec ruit bus ines s gener ated by your with a with a w i th a CFT Me mber ship Me mbership Me mbership rec rui ts When your thr ee new recr uits s ign up thei r thr ee new recrui ts wi th a mem bers hi p, you wil l r ecei v e an ad d i ti o nal $29 3 i n CFT comm i ss io ns as wel l as $97 in members hi p sale over ri d es as you hel on the $24 Family T plus the $9.95 Amounts shown are representative of commissions p them CFPlanqual if y. Identity Theft Shield. Commissions will be pre-rated for all other plans. Memberships sold by Associates participating in this program are still subject to applicable licensing requirements. Consid er this example:
Slide 35: Advanced Commissions - $33.95 ($24 PPL Family Plan + $9.95 Identity Theft Shield) Pe rso na l S al e s Ad va n c e T ea m Ov e rr id e A d van c e C u mul a t i ve O v er r id e A d v an c e Ex ecutive Director Dir ecto r Manager Sen ior Associate Asso ciate C FT Asso ciate 238.32 195.88 163.23 130.58 97.95 32.65 42.44 32.65 32.65 32.65 32.65 173.04 130.60 97.95 65.30 32.65 A l l y ou ha v e t o d o i s c 3. e c $ 3o ll9 5 t : 1 st Mo n t h 's fe e + $ 10 . 0 0 On e Ti me E n ro ll me nt $ 4 3. 9 5 Residual income begins after the advance period. That means you get paid month after month for the life of the membership.
Slide 36: Pre-Paid Legal Pays You Every Day Com missions are paid daily by direct deposit!
Slide 37: This Business Is Easy Jus t let the tools do the work for you! • H and Out • Mail Out • Call Website DVDs & CDs Recordings Third Party
Slide 38: The Target Market is Huge The Top 10% Have Or Can A fford Legal Access The Bottom 10% Have Access To Legal Aid or Public Defender Target Customer $15-$25 Billion Market Pre-Paid L egal Services ® , Inc. gives m iddle incom e No rth America equal access to justice.
Slide 39: The Market Timing Is Perfect 100 % 75 % 50 % 25 % 0% Less th an 3% of North Am erican s Have A Pre-Paid Legal Services M em bership App roxim ately 80% O f Europeans Have Legal Coverage
Slide 40: Current Market Penetration Less t han 1% penetration 1% to 3% penetration More than 3% penetration Plan not This map illustrates Pre-Paid Legal Services , Inc.’s current market penetration. Percent of population based available ® on households utilization of 2.5 household members per membership.
Slide 41: Timing Is Key H istory shows that when an industry hits a 2% market penetrat ion, critical mass can be achieved. THE GROWTH OF HMO’S • 60% 50% 40% 30% 20% 10% 0% 1 It took 10 Years for HMO’s to reach 2% market •After that, it took just penetration seven more years to reach 52% market penetration 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17
Slide 42: Success Stories Now, i t is time to show you how Pre-Paid Legal really works. We’re going to share wit h you real stories from real people who have been helped either by the membership, the business opportunity or both.
Slide 43: Pre-Paid Legal Services®, Inc. This Presentation is copyrighted material and may not be altered in any form under any circumst ances. Alt eration of t his mat erial in any way is a violation of the company’s policies and procedures and may result in immediate t ermination of your PPLSI Associate Agreement. Marketed by Pre-Paid Legal Services®, Inc. or applicable subsidiary: In Tennessee: Pre-Paid Legal Services of Tennessee, Inc. In Florida: Pre-Paid Legal Services, Inc., of Florida In Mississippi: National Pre-Paid Legal Services of Mississippi, Inc. In Virginia: Legal Service Plans of Virginia, Inc. In Ohio: Ohio Access to Justice, Inc., administered by Pre-Paid Legal Services®, Inc. ©1999 Pre-Paid Legal Services, Inc. 04.06