Western Fraternal Life Association

“BetterLife is a fraternal benefit insurance society and is therefore owned by its policyholder members.”

“BetterLife members elect four of the eight total directors every two years.”

“Nancy Nelson Heykes PO Box 6, Hazelhurst, WI 54531; John T McHugh Jr. 5702 State Hwy 71, Sparta, WI 54656; Maureen O'Hern Hahn 4 Meadowbrook Lane, Appleton, WI 54914; Brenda L Stone Sullivan 1608 Henry Johns Blvd No. 8, Bangor, WI 54614; Duane J Jirik 1006 3rd St NE, New Prague, MN 56071; Michael S Hosek 5747 Harding Dr, Lincoln, NE 68521; Mary K Bradley PO Box 432, Frankfort, MI 49635; Jared M Bruley 721 Hunters Trail, Sun Prairie, WI 53590; Maria Ferrante-Schepis 106 Park Place, Mckees Rocks, PA 15136.”

“The accounting department completed the Form 990 and gave a copy to the SVP-Finance/Treasurer to review. Following the SVP-Finance/Treasurer review, the President/Chief Investment Officer and CEO/Board Chair/Chief Member Advocate were given copies to review. The completed 990 was then emailed to the eight independent directors for their review.”

“Conflict of interest questionnaires are required from all officers, directors and key employees annually stating any conflict they may have. If there are any stated, the governing body determines any needed action.”

“A board-appointed compensation committee annually reviews the compensation of the CEO along with the other officers of the organization. Outside salary surveys of similar fraternal benefit societies, data concerning similar positions in the area, the performance and financial status of the society, general cost of living/inflation increases, and general economic conditions are taken into consideration. The recommendations of the compensation committee are then considered by the full board of directors and are either approved or modified. Information regarding the positions to which this process applies and the latest review periods follow: CEO/Board Chair/Chief Member Advocate - 3/2022, President/Chief Investment Officer - 3/2022, SVP-Finance and Treasurer - 3/2022, SVP-Member Acquisition - 3/2022, VP-Member Services - 3/2022, SVP-Member Experience - 3/2022, VP-Direct to Consumer - 3/2022, SVP-IT/Secretary - 3/2022, VP-National Sales - 10/2022.”

“The governing documents are filed with our state of domicile (Wisconsin) when any changes are made, published periodically in our official publication, BetterLife magazine, and available upon request. The financial statements are published annually in BetterLife magazine and are filed quarterly with the NAIC and with the states that require them. The conflict of interest policy is available upon request.”

“In 2022, BetterLife significantly strengthened its financial position and created future profitability by entering into a reinsurance agreement for a portion of its annuity block of business. The way this transaction is reported in compliance with insurance statutory accounting, which is how our annual and audited financial statements are reported, is to subtract the $215 million of annuities moved to the reinsurance company from both the premium revenues and change in annuity reserves (shown as benefits paid to or for members in the 990 schedules). Since the IRS will not allow BetterLife to file its 990 showing negative revenues, we needed to gross up the premium revenues and benefits paid to or for members lines by $211 million, which was the 12/31/2022 value of the annuities moved to the reinsurance company. These amounts cancel each other out and have no impact on net income. The sale of bonds to raise the funds for the reinsurance deal resulted in realized capital losses of $15.4 million. Given the $30.3 million ceding commission received from the reinsurance company, the total effect on BetterLife's financials is very positive.”

“Medical Examination Fees: $274,227”

“Fraternal Activities: $682,773; Change in Non-Admitted Assets: $632,359; Deferred Compensation Reserve: $385,722; Property Taxes: $87,712; State Insurance Department Licenses and Fees: $47,751; Increase in Loading on Deferred and Uncollected Premiums: $47,346; Bureau and Association Dues: $35,561; Books and Periodicals: $27,418.”

“In 2022, BetterLife significantly strengthened its financial position and created future profitability by entering into a reinsurance agreement for a portion of our annuity block of business. This amount is the increase to surplus resulting from the ceding commission received from the reinsurance company and represents the unamortized portion remaining at the end of the year.”