The Standard Introduces an Industry First — The Standard SecureCard, An Innovative Alternative to Long Term Disability Checks

Business Wire, Jan 3, 2001

Business Editors

PORTLAND, Ore.--(BUSINESS WIRE)--Jan. 3, 2001

Standard Insurance Company's Employee Benefits Division is introducing an innovative alternative to traditional disability payment methods with The Standard SecureCard(TM).

Similar to stored value cards in the retail industry, The Standard SecureCard will offer a more convenient option than either paper checks or electronic funds transfer. Carrying the VISA(TM) logo, The Standard SecureCard will look and function as a debit card, negotiable for point of sale purchases or at ATMs nationwide.

The first and only option of its kind in group disability insurance, the Standard SecureCard provides a faster, easier, more reliable way for employees to receive and access their monthly long term disability payments. This alternative payment option will be offered to disabled employees insured under long term disability policies that The Standard issues on or after Jan. 1, 2001.

"The Standard SecureCard represents the latest example of our commitment to provide technology-driven and customer-focused service innovations," said The Standard's Mike Skiens, assistant vice president, Employee Benefits Marketing. "The Standard SecureCard provides a faster, more reliable, and very convenient method for receiving disability benefit payments. We're excited to be the first group disability insurance carrier to provide the level of financial convenience and flexibility offered by The Standard SecureCard."

The Standard's staff of disability claims analysts will offer The Standard SecureCard option to eligible employees. Those who choose The Standard SecureCard will have their monthly payments automatically credited to the card on their regular benefit payment date. They may use it as a debit card, or with just a phone call, can transfer and apportion funds as needed to their various checking or savings accounts.

The Standard predicts strong customer interest in The Standard SecureCard option, which promises the same advantages that consumers enjoy with both debit cards and stored value cards. The card eliminates worries about late, lost or stolen checks. Paperwork and trips to the bank are minimized. Unlike electronic funds transfer alone, the Standard SecureCard process allows for debit card usage, access to cash at ATM machines, and retail or online purchases. As The Standard SecureCard program develops, The Standard will negotiate value-added discounts at an increasing number of selected retailers.

While requiring little if any effort and no increase in premiums for employers, The Standard SecureCard will provide a valuable and important advantage to eligible employees. It will also represent the latest in a continuing series of products and services offered by The Standard, a leader in employee benefits insurance, to enhance the lives of employees with disabilities and promote return-to-work initiatives. Kim Doyle, Disability Product Development Leader, emphasized, "We believe very strongly in providing employees who are disabled with the greatest possible convenience and every opportunity to return to a normal productive life as soon as possible."

About The Standard

The Standard, a subsidiary of StanCorp Financial Group (NYSE:SFG) was founded in 1906 in Portland, Oregon, and now serves more than 4.5 million people nationwide with group life and disability insurance, retirement plans for individuals and groups, and group dental insurance. The Standard has more than 12,000 group disability plans in force, covering more than 1.6 million employees nationwide.

Disclosure

Certain statements contained in this press release, including statements regarding the anticipated development and expansion of StanCorp's business, the intent, belief, or current expectations of StanCorp's management, the future operating performance of StanCorp, and other statements contained herein regarding matters that are not historical facts, are "forward-looking" statements (as such term is defined in the Private Securities Litigation Reform Act of 1995). Because such statements are subject to risks and uncertainties, actual results may differ materially from those expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially from those expressed or implied by such statements include, but are not limited to (i) deterioration in morbidity, mortality, and persistency, (ii) changes in interest rates or the condition of the national economy, (iii) changes in the regulatory environment on the state or federal level, (iv) competition from other insurers and financial institutions, (v) changes in claims paying ability ratings, (vi) adverse findings in litigation or in state or federal proceedings, (vii) deterioration in the experience of the closed block, (viii) the success of new product introduction; and ix) the Company's ability to manage its costs and implement its strategy to grow its Group Insurance, Retirement Plan and commercial mortgage lending businesses.