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W E L F A R E

Life & AD&D Insurance Benefits

Introduction
The Welfare Plan Life and Accidental Death and Dismemberment (AD&D) coverage is designed to provide protection for your family in case of your death. Your dependents may be covered, as well. Through the AD&D coverage, you and your family are also protected if you are seriously injured or die as the result of an accident.

You do not have to make contributions for your life insurance coverage. The contributing employers pay the cost of your coverage.

How Life And AD&D Coverage Works For Active Employees

Effective January 1, 2008

Benefits Overview

Your Life Insurance Coverage
You have life insurance of $40,000. This is the amount of the benefit that will be paid to your beneficiary if you die.

How Your Benefit is Paid
You may choose to have your benefit paid to your beneficiary as a single lump sum payment, if the benefit is less than $10,000. If the benefit is $10,000 or more, the benefit will be deposited in a checking account in the name of your beneficiary, or paid in installments, if requested by your beneficiary and approved by the insurance company.

Naming a Beneficiary
When you begin participating in the plan, you must name one or more beneficiaries to receive benefits if you die. You can change your beneficiary at any time by submitting a new beneficiary designation form.

If you name more than one beneficiary, they will share equally in the benefit, unless you specify a certain amount for each one.

If one of your beneficiaries dies before you, that beneficiary's share of your benefit will be paid equally to your surviving beneficiaries, unless you specify otherwise.

If you do not name a beneficiary, your benefits will be paid to the first who survives you beginning with your spouse followed by your children, parents, siblings and your estate.

Your Dependents' Life Insurance Coverage
The plan provides life insurance coverage for your spouse and eligible children. If your dependent dies while covered, the benefit is paid to you. If your covered spouse dies after you, the benefit will be paid to your spouse's beneficiary. If your spouse doesn't have a beneficiary, the insurance company may distribute the benefit at its discretion.

If you and your spouse are both eligible for life insurance coverage as active employees, you cannot also receive dependent coverage for each other.

Your eligible dependents have life insurance coverage in the following amounts:

Your unmarried children may be covered up to age 25, if they are attending school on a full-time basis.

A Living Benefit For Life Insurance
If you qualify for a waiver of premium, have life insurance of at least $10,000 and are terminally ill, you can request a living benefit be paid to you. Through the living benefit, you can receive part of your life insurance benefit during your illness to use for ordinary household expenses - or for anything else. The living benefit is an amount you choose up to 75% of your benefit under the plan - with a maximum of $500,000. The minimum is $5,000 or 10% of your benefit under the plan, whichever is greater.

You will be considered terminally ill if you have an illness or physical condition that your doctor expects will result in death within 12 months. The insurance company may ask you to have an examination at your expense as proof of your illness.

If you request a living benefit, the benefit payable to your beneficiary at your death will be reduced by the amount of the living benefit you have received. Your beneficiary will receive the balance of your life insurance benefit only if:

• you are still covered by the plan as an employee at the time of your death, or
• your coverage has been continued during your illness.

When proof of your terminal illness is received by the insurance company, your life insurance coverage will be continued at no cost to you or the Fund until your death or
recovery, whichever is earlier. This continuation of coverage at no cost applies to your coverage only and does not include any life insurance coverage you have for your dependents.

What Is Not Covered

Life Insurance
Benefits are payable for any reason to your beneficiary at your death or to you at your covered beneficiary's death.

Accidental Death and Dismemberment (AD&D) Coverage
If you die or suffer dismemberment as the result of an accident, you will receive a benefit according to the chart below - as long as the loss occurs within 90 days of the
accident.

Under the plan, a loss of a hand or foot means that it is completely cut off at or above the wrist or ankle joint. Loss of an eye means that sight in the eye is completely lost and cannot be recovered or restored.

Your beneficiary for your AD&D coverage must be the same as for your life insurance and you may change that beneficiary at any time by completing a new beneficiary designation form.

AD&D
Accidental death and dismemberment benefits are not payable for injuries or death that results from:

• use or consumption of any poison, chemical compound or drug, unless prescribed by a doctor
• sickness or pregnancy at time of an accident
• heart attack or stroke
• act of committing or attempting an assault or felony, or actively participating in a violent disorder or riot
• war or any act of war
• suicide or self-inflicted injury, whether sane or not
• medical or surgical treatment for any of the above.

When Coverage Ends

Your Coverage
Your life insurance and AD&D coverage will end on the earliest of:

• the date the plan terminates;
• the date the plan terminates coverage for the class of employees to which you belong;
• for employees employed in the Manager's Office, the Georgia Stevedore Association Office, Container Inspectors, and the local unions of the International
  Longshoremen's Association for whom contributions are required, the last day of the calendar month in which contributions stop or your employment ends; or
• for all other employees, the December 31 following a plan year - October 1 through September 30 - in which you work less than 700 credited hours.

Dependent Coverage
Your dependents' life insurance coverage will end:

• on the December 31 of the calendar year following the union contract year in which you die;
• on the date your dependent no longer meets the definition of an eligible dependent (see the Eligibility section);
• the date of your divorce; or
• on the date your coverage ends, whichever comes first.

If you are a participant in the plan and you die before your spouse, however, your spouse's coverage may continue until the end of the calendar year following the calendar year in which you die. For your spouse to be eligible for this continued coverage, you must have earned 700 or more credited hours during the union contract year before the union contract year in which you died. A union contract year is the same as a plan year - October 1 through September 30.

Continuing Your Coverage During Disability
If you become disabled while you are covered under this plan, your life insurance coverage may continue while you are disabled.

To be eligible for continuation coverage, you must become disabled before age 60. To be considered disabled, you must be permanently unable to perform the usual and customary duties required in the stevedoring and longshore industry.

You will have to provide medical proof that you are totally disabled. This proof must be furnished for the first time once your disability has lasted nine months. You'll also be required to provide proof no later than one year after contributions for your coverage stop, and then again each year, as long as you are disabled. The proof must be provided each year within the three-month period before the anniversary of the first proof.

If you die while you are disabled, the amount of coverage in effect will be paid to your beneficiary. Your beneficiary must provide proof within one year after your death that you were disabled until the date of your death.

The insurance company may have you examined by a doctor of its choice.

How Life Insurance Coverage Works For Eligible Retirees

Benefits Overview for Eligible Retirees

Your Coverage
As an eligible retiree, you have $25,000 in life insurance coverage, providing a benefit to your beneficiary at the time of your death. If you are not eligible because you retired on or after January 1, 1993 with less than 10 credited years of service, your beneficiary may be eligible for a $10,000 pension benefit at the time of your death. For more information, see the Pension Section.

How Your Benefit is Paid
Your benefit is paid to your beneficiary as a single lump sum payment if the benefit is less than $10,000.

If the benefit is $10,000 or more, the benefit will be deposited in a checking account in the name of your beneficiary, or paid in installments, if requested by your beneficiary and approved by the plan.

Naming a Beneficiary
When you begin participating in the plan, you must name one or more beneficiaries to receive benefits if you die. You can change your beneficiary at any time by submitting a new beneficiary designation form.

If you name more than one beneficiary, they will share equally in the benefit, unless you specify a certain amount for each one.

If one of your beneficiaries dies before you, that beneficiary's share of your benefit will be paid equally to your surviving beneficiaries, unless you specify otherwise.
If you do not name a beneficiary, your benefits will be paid to your estate.

Your Dependent's Coverage
The plan provides life insurance coverage of $10,000 for your spouse. If your spouse dies while covered, the benefit is paid to you.

Dependent coverage is not available for your spouse if your spouse is eligible for a death benefit as an active or retired participant under another policy issued by the insurance company to Savannah ILA or a predecessor, parent, subsidiary or affiliated employer.

When Retiree Coverage Ends
Your life insurance coverage will end on the earliest of:

• the date the plan terminates;
• the date the plan terminates coverage for the class of retirees to which you belong;
• the date you are no longer a member of the class of retirees eligible for coverage; or
• the date of your death.

Your dependent spouse's life insurance coverage will end:

• on the date your spouse no longer meets the definition of an eligible dependent (see the Eligibility section);
• the date of your divorce; or
• on the date your coverage ends, whichever comes first.

Converting To A Private Policy

If Your Coverage Ends
If your life insurance or your dependents' life insurance ends - for example, because your employment ends or your dependent child reaches the age limit or marries - you or your dependent will be eligible to convert the amount of life insurance you have to an individual policy. This means you can buy a private policy from the insurance company to replace the life insurance you had under the plan. You are guaranteed the right to convert without having to provide any evidence of good health, as long as you apply for conversion within 31 days after your group life insurance ends.

You can convert your coverage to any kind of individual policy normally offered by the insurance company at the time you convert, except term insurance. The individual policy will not include disability or supplementary benefits.

The premiums for your individual policy will be based on your:

• age,
• class of risk, and
• form and amount of policy.

If The Plan Is Terminated
If you lose coverage because the plan is terminated or amended, you can convert only if you were covered by the plan for at least five years. In this case, the maximum amount
you can convert is $10,000 or the amount of coverage you had under the group plan, whichever is less, reduced by any new group life insurance you become eligible for within 31 days.

If You Are Disabled As An Active Employee
If your coverage is being continued because of disability and you recover or fail to give any required proof of disability, your life insurance may be converted. To convert, you must apply within 31 days from your date of recovery or from the date proof was required.

If you take out a converted policy and are later approved for disability continuation coverage, you must return the conversion policy, without making a claim on it, before your disability continuation coverage can continue. You'll be reimbursed for any premiums you paid on the converted policy.

If a benefit is paid under the disability continuation coverage, no benefits will be paid under this conversion provision.

When the Converted Policy Takes Effect
Your converted policy will become effective at the end of the 31-day period allowed for conversion. If you die during that time, the amount of coverage you could have converted will be paid to your beneficiary. If your dependent dies during that period, the amount of coverage your dependent could have converted will be paid to you. If you are not living, the benefit will be paid to your dependent spouse's beneficiary, or to your dependent's estate.

How To File A Claim
For life or AD&D insurance, the beneficiary must complete a claim form and submit it to the Welfare Fund Office within 90 days of the death or covered loss, or as soon as possible. Claim forms are available from the Welfare Fund Office.

See the Important Information Section for information on appealing a denied claim.

Legal Actions
You may not begin legal actions to recover benefits from the plan until 60 days after your claim has been submitted. You cannot bring legal action against the plan once three years have passed since the date you should have provided proof of your loss.