LIFE INSURANCE BENEFIT

If you die from any cause while you are insured, the proceeds will be paid to your beneficiary.

Beneficiary

You may name anyone you wish as your beneficiary. You may change your beneficiary at any time by completing the proper form. The change will be effective when the Company receives the completed form at its Branch Office in San Francisco.

If you do not name a beneficiary, or if your beneficiary dies before you, the proceeds will be payable to the first class of surviving preference beneficiaries:

 (a)  your spouse;

 (b)  your children;

 (c)  your parents;

 (d)  your brothers and sisters;

 (e)  your executors or administrators.

The Company may pay up to $500 of the proceeds to either your beneficiary, executor or administrator, spouse, or any relative by blood or marriage, or any person appearing to be equitably entitled to this benefit by reason of having incurred last illness or burial expenses on your behalf.

Total and Permanent Disability

If you become Totally and Permanently Disabled before age 60, your life insurance will continue at no cost to you for 12 months. Coverage will further continue during such disability, without payment of premium, if:

 (a)  you send written proof of your disability to the Company no later than 12 months after the start of your disability; and

 (b)  the proof shows that you were Totally and Permanently Disabled for at least nine months, and that such disability will presumably continue to exist.

Premiums will be waived every 12 months if you submit proof of continuing total and permanent disability each year, within three months of the anniversary date the initial proof of your disability was received by the Company.

The Amount of Insurance That is Continued

The amount of life insurance that will be continued, while you are Totally and Permanently Disabled, will be the amount which was in force at the time premium payments were discontinued on your behalf as a result of your disability.

The Meaning of Totally and Permanently Disabled

This means that, due solely to Illness or Injury, you are prevented from engaging in any occupation or employment for which you are or become qualified for by reason of education, training or experience.

Benefits Will Continue . . .

Benefits will continue under this extension until the earliest of:

 (a) 31 days after the date you are no longer totally and Permanently Disabled;

 (b) the date you fail to furnish the Company proof of your continued disability (which must be within three months of the anniversary date the initial proof of disability was received by the Company); or

 (c) the date you fail to be examined by a Physician designated by the Company; if so requested by the Company. Such an examination will not be required more than once a year after your insurance has been continued under this extension for two full years.

Disability Due to Accidental Injury

If you become totally disabled by bodily injury so that you cannot work for wage or profit, and such disability occurs within 30 days of the accident, you will be paid $100 per month beginning after the sixth month of disability or upon proof of disability, whichever is later, until the total amount of your life insurance has been paid. Each payment under this provision reduces your total remaining life insurance benefit accordingly. In the event of your death during this period, any unpaid balance will be paid to your beneficiary. This provision does not apply to disability which is caused or contributed to directly or indirectly, wholly or partly by:

 (a) disease or bodily or mental infirmity, or medical or surgical treatment:

 (b) infection of any nature unless the infection is incurred through violent and accidental means; or

 (c) poisoning.

Conversion Privilege

If you are no longer eligible for group life insurance due to your ceasing to belong to an eligible insured class or if you terminate your employment, you may convert that benefit to any form of individual life insurance usually offered by the Company, except for term.

You will not need a medical examination. But you must complete the application form and send it with the first premium payment to the  Company no later than 31 days after your group life insurance has terminated.

The face value of your new policy cannot be more than the amount you had under the group plan. The rate you pay will depend upon your age (at the nearest birthday to the date of issue of the individual policy) and your class of risk at the time of your conversion.

You may also convert if your life insurance benefits terminate because the policy terminates, or because life insurance benefits for your class terminate. In this case, however, you must be Totally Disabled on the date the policy terminates, or you must have been covered under the group plan for at least five years. You may convert up to the amount of life insurance you have under this Plan, less any new amount you may have or for which you may become eligible under another group plan within 31 days of the termination.

If you should die during this 31day period after your group life insurance has terminated, the Company will pay the group life insurance benefits to the last beneficiary you named, whether or not you applied for an individual life insurance policy.

 ACCIDENTAL DEATH AND DISMEMBERMENT BENEFIT

(24Hour Coverage)

This benefit will be payable if you, while insured, sustain any of the losses mentioned below as a result of purely accidental means. The loss must take place within 90 days from the date of the accident for the benefits to be payable.

This benefit is in addition to your other benefits under this Plan.

Who Will Receive Benefits

For loss of life, benefits will be paid to the beneficiary you name under the life insurance benefit. For any other loss, the benefits will be paid to you.

The Benefits

For Loss of: The benefit is:

LIFE THE PRINCIPAL SUM

TWO HANDS THE PRINCIPAL SUM

TWO FEET THE PRINCIPAL SUM

SIGHT OF TWO EYES THE PRINCIPAL SUM

ONE HAND AND ONE FOOT THE PRINCIPAL SUM

ONE HAND AND SIGHT OF ONE EYE  ONE HALF THE PRINCIPAL SUM

ONE FOOT AND SIGHT OF ONE EYE  ONE HALF THE PRINCIPAL SUM

ONE HAND OR ONE FOOT ONE HALF THE PRINCIPAL SUM

SIGHT OF ONE EYE ONE HALF THE PRINCIPAL SUM

If you suffer more than one loss in any one accident, no more than the full amount of your benefit will be paid. The full amount is the Principal sum.

Definitions

1. "Principal Sum" is the benefit amount shown in the Schedule of Benefits.

2. "Loss of hand or foot" means that the limb is severed at or above the wrist or ankle joint.

3.  "Loss of sight" means the total and irrecoverable loss of sight.

Beneficiary

You may name anyone you wish as your beneficiary. You may change your beneficiary at any time by completing the proper form. The change will be effective when the form is received by the Company at its Home Office.

Losses That Are Not Covered

No benefit is payable under this section if your death or any loss is caused directly or indirectly, wholly or partly, by:

1.  bodily or mental infirmity, ptomaines, bacterial infections (except infections caused by pyogenic organisms which have occurred with and through an accidental cut or wound), or disease or illness of any kind;

2.  intentional selfdestruction or intentional selfinflicted injury, while sane or insane;

3.  participation in the committing of a felony; or

4. war or an act of war, or service in any military, naval or air force of any country while such country is engaged in war, or police duty as a member of any military, naval or air organization.

COMPREHENSIVE MAJOR MEDICAL EXPENSE PROVISIONS

If you or your dependent incur covered charges during a calendar year as a result of a nonoccupational sickness or injury sustained while insured for these Major Medical benefits, the Company will pay the appropriate percentage of covered charges, subject to the limitations and provisions of this Policy.

Deductible Amount. The deductible per person is shown in the Schedule of Benefits. The deductible is not applicable to charges incurred for a second surgical opinion or for services rendered by a PPO ALLIANCE hospital or physician.

If charges in the last three months of a calendar year are applied toward the deductible, these charges will also be applied toward the deductible for the next calendar year.

Family Deductible. After three covered members of your family have each satisfied their individual deductibles in a Calendar Year, no further deductible will be required of your family for charges incurred for the remainder of that calendar year.

Common Accident. If two or more insured members in a family are injured in the same accident, only one deductible has to be met during the calendar year in which the accident occurs and the following calendar year for covered charges which are incurred as a result of the common accident. Separate deductibles will still apply to charges not related to the common accident.

Maximum Payment. The maximum amount payable under these Major Medical Expense Provisions with respect to all illnesses or injuries of any one individual during such individual's entire lifetime shall not exceed the amount specified in the Schedule of Benefits. However, if at any time $1,000.00 has been paid under these provisions with respect to an individual and the individual is not then qualifying for a major medical expense claim, the individual may have his Maximum Payment reinstated to $500,000 upon submission, at his own expense, of evidence of insurability satisfactory to the Company.

In addition to the above, if benefits are paid under these Major Medical provisions, thereby reducing your lifetime maximum, the Company will automatically reinstate up to $1,000.00 on the first day of each calendar year. This reinstatement will be made without any action on your part. The total benefit, including the amount reinstated, may not exceed the original lifetime maximum. There will be no automatic reinstatement when benefits are being continued under the Extended Benefits Provision.

The lifetime maximum benefit is limited to $100,000 for all treatment of mental and nervous disorders.

Percentage Payable. The plan will pay the following percentage of covered charges, after the deductible has been satisfied.

100% of the negotiated rates PPO Alliance Hospitals and Physicians (the deductible does not apply to these charges)

100% for charges incurred for a second surgical opinion regarding the need for nonemergency elective surgery (the deductible does not apply to these charges)

85% of covered charges for nonparticipating hospitals and physicians

50% for outpatient treatment of mental and nervous disorders

80% of the first $2,500 of other covered charges, and 100% thereafter for the remainder of the calendar year.

TO RECEIVE FULL BENEFITS FOR HOSPITAL AND SURGERY, YOU MUST COMPLY WITH THE REQUIREMENTS OF THE  COST MANAGEMENT PROGRAMS. FAILURE TO USE THESE PROGRAMS WHEN REQUIRED WILL RESULT IN A REDUCTION OF 10% IN BENEFITS OTHERWISE PAYABLE.

Insurance Co. ProgramsOptional Second Surgical Opinion

Benefits will be paid for the actual customary and reasonable charges, including laboratory and xray examinations when you consult with a participating doctor for a second surgical opinion. The surgery for which the opinion is obtained must be of a nonemergency nature and be covered under the policy.

If the second opinion does not confirm the need for the surgery, benefits are also payable for a third opinion. These charges are also reimbursed at 100% for the actual reasonable and customary charges.

If your doctor recommends surgery, call the Insurance Co. tollfree number, 8001234567.

Definitions applicable to this program:

1.  Elective surgery means all surgery which requires inhospital care EXCEPT surgery which must be done on an emergency basis.

2. Emergency is defined as the sudden onset of a medical condition accompanied by acute symptoms of sufficient severity (including severe pain) that could possibly result in the following, if immediate medical attention is not provided:

 -causing serious and permanent dysfunction of any bodily organ   or part.

3.  Participating doctor is a Board Certified Doctor who is on the Second Opinion Panel and has agreed with the Company to render consultation for Second Surgical Opinions.

No benefits will be paid under this program:

1.  for more than two opinions in connection with the proposed surgery, after the initial recommendation for surgery;

2. for xrays or tests not related to the proposed surgery;

3. for an examination not made in person by the doctor rendering the second opinion;

4. if no written report is submitted to the Company by the examining doctor;

5. if the same consulting doctor performs the surgery or has a financial interest in the outcome; and

6.  if the opinion is obtained with regard to dental work or treatment, an illness or injury arising out of or in the course of employment, or with regard to cosmetic surgery, unless it is payable under the policy.

Insurance Co. ProgramsHospital Pre-admission Review

Hospital confinements are subject to the  PRE-ADMISSION REVIEW PROGRAM. your proposed stay must be reviewed prior to your admission. If an urgent admission is required, your doctor should telephone Insurance Co. and provide the necessary information regarding your stay. If there is an emergency admission, your doctor or a responsible family member must call Insurance Co. within 48 hours to notify them of the admission. The tollfree number is 8001234567.

Based on the information provided by your doctor, Insuance Co.'s professional staff will determine if your stay is medically necessary or if the treatment might be provided in a different setting. At the same time, they will assign an initial number of approved hospital days and notify you, your doctor and the hospital. If your physician feels that an extension of your stay is necessary and the Insurance Co. reviewers agree, additional days will be approved.

Insurance Co. will make every effort to work with your doctor to determine the best setting for your medical care. The decision to enter the hospital or continue your stay for a noncertified admission is yours and your doctor's. However, such an admission or nonapproved day will be subject to reduced benefits.

If you do not comply with the requirements of the Hospital Pre-admission Certification Program, benefits otherwise payable for the hospitalization and related physician charges will be reduced by 10%.

Covered Charges. "Covered Charges" means the Reasonable and Customary charges outlined below for Medically Necessary treatment of a non-occupational illness or injury.  The medical care or services must be ordered by a legally qualified Physician.

1. (a) charges made by a duly constituted and lawfully operated hospital from the first day of hospital confinement; provided that the included daily room and board charge may not exceed the hospital's rate of semi-private accommodations or if the hospital does not have semiprivate accommodations, an amount not to exceed the average rate for semi-private accommodations charged by hospitals located in the surrounding geographical area;

 (b) charges made by such hospital for accommodations in an Intensive Care Unit or Coronary Care Unit when required for an acutely ill or injured person, but not to exceed 2-1/2 times the semiprivate rate;

 (c) charges made by such hospital for outpatient treatment; and

 (d)  charges made by a hospital for pre-admission testing, provided the testing is made within 7 days of a scheduled hospital admission and is for treatment of the diagnosis which made the tests necessary.

However, if the scheduled admission does not take place, the testing may still be covered, but only if the admission is postponed or canceled for one or more of the following reasons:

 (a) The tests show a condition requiring medical treatment prior to admission; or

 (b) A medical condition develops that delays the admission; or

(c) A hospital bed is not available on the scheduled date of admission; or

 (d) The tests indicate that, contrary to the attending physician's expectation, the admission is not necessary.

2. charges for diagnosis, treatment, and surgery by a legally qualified physician practicing within the scope of his license.

3.  charges made by a registered graduate nurse or licensed practical nurse for private duty nursing service or a physical therapist, other than a nurse or a physical therapist who ordinarily resides in your home or who is a member of the immediate family.

4. charges for the following orthopedic or prosthetic appliances: artificial limbs or eyes for the replacement of natural limbs or eyes; prosthetic devices or reconstructive surgery to restore and achieve symmetry when the procedure is incident to a mastectomy; initial truss, brace or support; cast, splints or crutches.

5. charges for the rental of durable medical equipment such as wheelchairs and Hospital-type beds.  The benefit limit for renting will not exceed the purchase cost.

6. charges for oxygen and the rental of equipment for its administration, and other mechanical equipment for the treatment of respiratory paralysis.  The benefit limit for renting will not exceed the purchase cost.

7. charges for an annual cervical cancer screening test; charges for breast cancer screening or diagnostic purposes;

 (a) one baseline mammogram for women age 35 but less than age 40;

 (b) one mammogram every two years, or more frequently based on the recommendation of the woman's physician, for women age 40 but less than 50; and

 (c) one mammogram every year for women age 50 and over.

8. charges for the following: xray services, laboratory tests, anesthesia and the administration thereof, the use of radium and radioactive isotopes, radiation therapy, and similar services and treatment, drugs and medicines requiring a written prescription.

9. charges for professional ambulance service.

10. charges incurred for the outpatient treatment of mental and nervous disorders, subject to a maximum covered charge of $40 per visit ($20 payment) with payment limited to 50% of such charges up to a maximum number of 50 visits per calendar year.

11. charges made by an extended care facility for a maximum of 60 days per disability if:

 (a) the attending Physician certifies that such confinement is necessary for you or your dependent's continued treatment;

 (b) the confinement begins within 7 days of a hospital confinement of at least 3 consecutive days; and

 (c) the confinement is for the same or related cause which made the prior hospital confinement necessary.

12. charges made by a licensed Home Health Care Agency for home health care services which commence within 14 days after a hospital confinement has ended, but not to exceed a maximum of 100 days per calendar year and a $50.00 deductible. Each visit by an employee of a Home Health Care Agency will be considered one home health care visit and each 4 hours of home health aide services will be considered one home health care visit.  Coverage includes:

 (a) parttime or intermittent nursing care by or under the supervision of a registered nurse;

 (b) parttime or intermittent home health aid services which consist primarily of caring for the individual;

 (c) physical, occupational, and speech therapy provided by a home health care agency;

 (d) medical supplies, drugs and medications prescribed by a physician and laboratory services provided by or on behalf of a Home Health Care Agency, but only to the extent that such charges would have been payable had the insured been confined in a hospital.

13. charges for Hospice care to an overall lifetime maximum of $10,000.  A Hospice operates as a unit or program that only admits terminally ill patients and it is separate from any other facility, although it may be associated with a hospital, nursing home, or home health agency.  It must be approved by the Company as meeting the applicable legal requirements.  A Hospice Care Program means a coordinated plan of inpatient and home care which treats the terminally ill and family as a unit, providing care to meet the special needs of the patient and family during terminal illness and bereavement.  Care must be provided by a team made up of medical personnel, counselors, and other individuals with special training and can include homemakers who work in conjunction with the Hospice Care Program.  The team must act under an independent hospice administration, with the purpose of helping the patient and family cope with physical, social, psychological and spiritual needs.  A terminally ill patient means an insured who does not have a reasonable prospect of cure and who has a life expectancy of six months or less, as certified in writing by the attending physician.

 The overall lifetime maximum includes:

 (a) up to 60 days of inpatient care (consecutive or nonconsecutive), including semi-private room and board, doctor's services, inpatient skilled nursing care, respiratory therapy and life support system, pain relief therapy, drugs and medicines, psychological counselling and spiritual support;

 (b) up to $2,000 of out-patient hospice care, including part-time intermittent nursing care given at home, visits by hospice staff personnel, physical and respiratory therapy, oxygen and the rental of medical equipment for the insured's care, medicine and drugs, and homemaker services;

 (c) up to $750 for bereavement counselling sessions with the patient and/or family members during the period of hospice care; and

 (d) up to $250 for bereavement counselling sessions with the patient's family members for help in coping with the death of the patient within the twelve-month period following the patient's death, subject to a maximum of four sessions for each individual and a maximum covered expense of $25 per visit.

14. Charges for the consultation of a legally qualified physician for a second opinion on the need of a surgical procedure of a non-emergency nature which is otherwise covered under this policy, including any necessary laboratory and x-ray examinations.  If the second opinion does not confirm the need for surgery, a third opinion may be obtained, including laboratory and x-ray examinations.

Limitations. "Covered Charges" will not include charges for services, supplies, or treatment:

1. unless such services, supplies, and treatment were prescribed as necessary by a legally qualified physician practicing within the scope of his license;

2. during confinement in a hospital owned or operated by the Federal Government, unless there is a legal obligation to pay charges without regard to the existence of any insurance. However, benefits are payable for reasonable and customary charges otherwise covered under this Policy, which were incurred at a military hospital by you, as an armed service retiree or your dependent for services or supplies which are not related to military service;

3.  that the insured individual is not required to pay;

4. incurred for elective abortion, except those charges directly resulting from complications of such abortion or for an abortion where the life of the mother would be endangered if the fetus were to be carried to term;

5.  if they were incurred on account of:

 (a) services performed on or to the teeth, nerves of the teeth, gingivae or alveolar processes, except to tumors or cysts or except as required because of accidental injury to natural teeth occurring while insured hereunder;

 (b) cosmetic surgery, except as required because of accidental injury occurring while insured hereunder;

 (c)  eye refractions, eyeglasses, hearing aids, or the fittings thereof;

 (d) war or an act of war (declared or undeclared), participation in a felony, riot or insurrection;

 (e) accidental bodily injury arising out of and in the course of the individual's employment;

 (f) occupational disease; for the purpose of this Policy the term "occupational disease" shall mean a disease for which the individual, with regard to whom a claim is submitted, is entitled to the applicable Workers' Compensation Law, Occupational Disease Law, or similar legislation;

 (g) transportation, except as specifically provided in this booklet.

6. incurred for pregnancy of a dependent child, except for complications of such pregnancy.

7. incurred for the treatment of mental or nervous disorders, except as specifically provided under covered charges, item #10. Inpatient treatment of mental and nervous disorders will be payable as for other disabilities, subject to the lifetime maximum benefits for these disorders.

8.  incurred for routine physical examinations or health checkup.

9. incurred for substance abuse including alcoholism.

10. incurred for recreational or leisure therapy.

11.  incurred for orthotics, unless medically necessary.

12. incurred for any hospitalization which is primarily for  custodial care not involving medical treatment.

13.  incurred for family planning:  services and supplies for  artificial insemination, in vitro fertilization, infertility treatment, or surgery to reverse elective sterilization.

14. incurred for radial keratotomy.

15. incurred for penile implants unless required as a result of injury or an organic disorder.

16. incurred for experimental treatment and investigational treatment as follows:

Experimental services are defined as those drugs, equipment,procedures, or services that are in a testing phase undergoing laboratory and/or animal studies prior to testing in humans are not covered by the Plan.

Investigational services are defined as those drugs, equipment, procedures, or services for which laboratory and animal studies have been made and for which human studies are in progress but: (1) testing is not complete; and (2) the safety of such services in humans has not yet been established; and (3) the service is not in wide usage as an accepted form of treatment.

Experimental services are not covered by the Plan.  Investigational services are not covered by the Plan except when all of the following conditions are met:

1. Conventional therapy will not adequately treat the patient's condition;

2. Conventional therapy will not prevent progressive disability or premature death;

3. The provider of the service has a record of safety and success with the service which is equivalent or superior to that of other providers of the proposed service;

4. The investigational service is the lowest cost item or service that meets the patient's medical needs and is less costly than all other conventional alternatives.

5. The research is not being performed as part of a research study.

6. There is a reasonable expectation that the investigational service will significantly prolong the intended patient's life or will maintain or restore physical or social function suited to the activities of daily living.

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