Agency Acquisition Program · Have a highly recognized brand with national brand awareness Provide...

Farmers Insurance Group | District 46 | Office of Rob Lee 1

Agency

Acquisition

Program

Distributor Office of Rob Lee

1201 Monster Rd SW Ste. 300 Renton, WA 98057

Phone: 425-988-2288


Seeking

ENTREPRENEURS,

SELF-STARTERS

& LEADERS


AGENCY DEVELOPMENT MANUALS

1. Why Farmers Insurance 2. Product Portfolio 3. Farmers - In Our Communities

4. Achievement Clubs

5. Training and Support

6. Business Development

7. Financial Snapshot 8. Process


A word from Rob

Rob Lee District Manager

Our Commitment:

Farmers Insurance and our

district take pride in offering

award winning support to our

agents. Partnering with Farmers

Insurance offers a valuable

opportunity to be your own boss

while being able to take

advantage of an ever evolving

system of first class training

from both the corporate and

district levels.

Our financial support package,

nationally renowned training

program, and widely recognized

Farmers brand advertising are

all available to help build an

agency that you can be proud

of. We also offer a host of

additional tools ranging from

campaign trackers to

underwriting support.

We are passionate about the

success of our agency force. For

an agent that believes in

themselves enough to invest the

time and effort they won’t find a

better district to work with. If

you believe that you would make

a positive impact on our

community we invite you to get

to know us.

District Manager since:

Previous occupation:

Achievement clubs:

Accolades:

Contact information:

2015

Area Sales Manager –

Farmers Insurance Group for

12 years

Toppers Club – 3 time

qualifier

District Manager Accelerator

Award, Qualifying agents for

Championship, and Toppers

club; top performance in

client retention, personal

lines new business, and

commercial new business.

425-988-2288

1201 Monster Rd. SW Ste.

300

Renton, WA 98057

The insurance industry offers a unique opportunity for a business owner to grow their

business and achieve financial security through residual income. Unlike other business

opportunities, the residual income model provides stability and security. During my

career I have seen and experienced market adjustments or changes that have swung the

pendulum too far one way and ruined years of hard work. The insurance industry on the

other hand has been continually generating more premium year over year. Farmers’ vast

product portfolio provides opportunity even in times of recessions or financial downturn.

I’m honored to be a part of the Farmers Insurance Group of Companies and I am

confident that my expertise will be of value to you. I have forged lifelong relationships as

a mentor with my agents; they are part of my family – the Farmers family. I am proud to

have helped so many good people create success in their lives.

I do everything I can to empower my agents by helping them build their futures. My

mantra is: “be in business for yourself, but not by yourself.”

Rob Lee

Farmers Insurance, District 46


AGENCY ACQUISITIONS PROGRAM The Agency Acquisitions program provides lucrative financial incentives to capitalized external candidates to facilitate the purchase of

service and commission rights to existing Farmers agencies with less than 1,000 Policies in Force.

The Candidate ■ Proven background in building and managing a business venture ■ The desire to build and grow an existing business ■ Decisions made with ROI and cash flow in mind

Self-Motivation and Independence

■ Effective time-management skills and self-reliance to accomplish goals ■ The ability to identify and focus on priorities

Communication Skills

■ The ability to inspire as well as listen and learn from others ■ Leadership and people management skills

Performance

■ The motivation to work hard and take risks to achieve financial success ■ Willing and able to make investments into business opportunities for future gain ■ The willingness to accept responsibility for personal success and failures

The Process Assets

■ Minimum of $25,000 in seasoned investable assets in addition to the cost of acquisition Licensing and Training

■ Property and Casualty, Life and Health and Approved U4 required prior to agent appointment

■ Training Milestones and Assessments Background Check

■ Satisfactory results of background check Business Plan

■ Approval of 5-year business plan and cash flow projection Branded Office Location

■ Office location fully equipped and compliant with Farmers SMART Office brand standards Agency Staff

■ Minimum of 1 licensed and appointed agency staff member

The Benefits Economic Interest

■ Contract Value - Fully vested from date of appointment Office Start-Up Program

■ Up to $10,000 bonus for office startup expenses Monthly New Business Premium Bonus

■ Bonus% paid on monthly new business Agent Eligible Premium ■ Bonus% schedule a function of Bonus Eligibility Period ■ All agents start at Tier C bonus level for first quarter and then tiers are determined by prior quarter performance

■ Monthly bonuses paid on Life and Commercial premiums subject to caps

Why Farmers Insurance


WHY BECOME A FARMERS AGENCY

OWNER?

Leadership & Stability

Farmers Insurance:

■ Is one of the country's largest and most respected insurance brands

■ Has a national presence ■ Has over 85 years of history

The insurers comprising the Farmers Insurance Group of Companies®

■ Insure vehicles, homes, small businesses ■ Generate over $15 billion in annual written premiums ■ Offer a leading portfolio of multi-line products and services ■ Have a highly recognized brand wit h national brand awareness ■ Provide nationally recognized training through the University of Farmers®

Support

As a Farmers agency owner, you will enjoy:

■ Support from a District Manager and/or business consultant invested in your success ■ Comprehensive training and business development support

■ Financial bonus opportunities ■ Lead generation & agency start-up cost support* ■ Loan options through Farmers Insurance Group Federal Credit Union ■ An option to participate in a deferred compensation plan ■ Benefits for you, your family and your staff

■ The ability to open multiple office locations ■ Help with branding and agency location placement

■ Build equity in a business you own that provides multiple exit strategies

*Applicable to certain programs only

Why Farmers Insurance


PRODUCT PORTFOLIO Outstanding product suite that allows you to compete and succeed

1) Agent registered with and securities offered through Farmers Financial Solutions, LLC – Member of FINRA & SIPC

Note: All products and features may not be available in all states and may vary by state

Property & Casualty

Insurance

Life Insurance

Financial Products1

Kraft Lake

▪ Auto ▪ Home/Renters ▪ Commercial ▪ Cyber liability ▪ Habitation ▪ Boat ▪ Motorcycle ▪ Motor Home ▪ Mobile Home ▪ Umbrella ▪ Worker’s Comp

▪ Term Life ▪ Universal

Life ▪ Whole Life ▪ Critical

Illness Riders

▪ AD&D ▪ Disability

Income Riders

▪ Group Life ▪ Fixed

Annuities

▪ 529 Plans ▪ 401 (k)s ▪ Variable

Annuities ▪ IRAs ▪ SEPs ▪ Variable

Universal Life ▪ Mutual Funds

with nationally recognized fund families

▪ High Value Homeowners

▪ Professional Liability (E&O)

▪ E&S Vacant Building/Land

▪ Contractor’s General Liability

▪ Farm & Ranch ▪ … and more

Product Portfolio


OUTPLACEMENT OPTION Ability to refer business not eligible/acceptable within Farmers to Kraft Lake Insurance Agency Inc.

Accessible through web portals, email, and toll-free numbers

Product Portfolio


WHY FFS Become a full-service financial professional with

Farmers Financial Solutions® (FFS).

Why get registered to sell financial solutions?

Financial services allow you to expand your potential customers, help improve your

agency revenue and will help to retain current customers.

Top reasons for getting registered:

■ New revenue opportunities

■ Improved customer retention

■ Registered agents are more productive in all lines of insurance

■ It's not rate sensitive or service intensive

■ It's a positive customer experience - customers are investing in their future

■ FFS commissions are paid weekly

■ FFS products grow revenue

■ FFS agents are perceived as financial professionals

Product Portfolio


FFS PRODUCTS Farmers Financial Solutions suite of products include:

■ Retirement- Traditional IRAs, Roth, Rollover, SEPs and SIMPLEs

■ College Savings - 529 Plans, UGMA/UTMA, Coverdell

■ Small Business - 401(k), 403 (b), 457

■ Life Insurance and Estate Planning -VUL, VA, Survivor Life, Stretch IRA, Executive Bonus Plans, Pension Maximization

FFS SUPPORT We support you with the following programs:

■ FFS Internal Sales Team

■ Life and Financial Services Specialists

■ Provider Sales Desks

■ Morningstar

■ DST Systems

■ FFS Selling Systems

■ SIMS

FFS PROVIDERS Farmers works with some of the most well-known providers in the industry including:

■ Farmers New World Life Insurance Company

■ AXA Equitable Life

■ American Funds

■ BlackRock

■ Calvert Investments

■ DWS Investments

■ Franklin Templeton

■ ING Funds

■ Invesco Aim

■ MFS

■ Oppenheimer Funds

■ PIMCO Funds

■ Pioneer Investments

■ Principal Funds

■ Putnam Investments

Product Portfolio


VETERANS NETWORK

At Farmers, we are strongly committed to providing the local agency ownership opportunity to transitioning, retired and

wounded veterans, as well as military spouses. We are extremely proud to have earned the 2015 Military Friendly Employers

Designation. Farmers Insurance is 1 of 50 companies to be awarded both Military Friendly Employer and Military Spouse Friendly

Employer. Farmers has created a network and support program called Serving America at Farmers. This is a community of

veterans and current members of the National Guard and Reserve. It's our way of showing support for the contributions military

families make in service to America.

Farmers – In the Community


ACH IEVEMENTS As a Farmers agent, you play a crucial role in the success of the company. Everything Farmers does depends upon you succeeding at profitable growth and giving your customers a quality experience. Our Achievement Awards reward you for raising the bar and focusing on profitable growth, productivity, customer experience, sales quality and performance, and customer retention-all of which lead to long-term success for you and your agency.

TOPPER CLUB Topper Club offers you an opportunity to join fellow high-achieving agents from across the country at an exclusive destination to celebrate and focus on continued business success. Unlike other Farmers conventions, Topper Club provides you with four different ways to qualify, rewarding you for your strength in Personal Lines, Business Insurance, Life or Farmers Financial Solutions® (FFS). Once there, you'll meet with the Farmers leadership team and other high achievers, network, and focus on continuing your growth.

Topper Club Achievement is awarded with:

■ An invitation to the Topper Club convention for you and a guest (room and

board paid for)

■ $800 in transportation funds (combined total for you and a guest) ■ First-year winners receive a trophy and a lapel pin; subsequent-year winners will

receive a medallion to add to the trophy and additional lapel pins

CHAMPIONSHIP Championship rewards you for successfully challenging yourself to reach higher, go farther, and achieve quality profitable multi-line success in your agency. When you earn this elite honor, we'll celebrate your success and continued commitment to excellence in style.

Championship Achievement is awarded with:

■ An all-expense-paid trip to the Championship convention for you and a guest ■ First-year winners receive a trophy and a watch; subsequent-year winners will

receive a medallion to add to their trophy and a diamond to add to their watch

Achievement Clubs


ACQUISITIONS SCHEDULE POST INITIAL

Month

1

WK-1

Office set up

New location or take over current location

Technology Decisions

Set up phones/ printers/ computers

Email and Shared Folder

Calendar (Google and Farmers}

WK-2

Operations Letters to client list - transfer of ownership from previous agent

Whiteboard

SMART Office Branding

WK-3

Systems

SIMS Basics Review

Lead Management

Setting up tasks, SMPs workflows and management of activity

Retention - My Alerts, Thank You calls systems

WK-4

Review

Business Plan

& Marketing

Strategy

Review Business Plan

Goals for NB and Retention

Determine how current marketing strategies align

What new marketing systems you will put in place to better align with business plan

Changes or adjustments to plan

Does your agency need additional staff?

Month

2

WK-1

Billing/Service

in Office Review Training from District Office and University of Farmers for eCMS and Billing questions

Familiarity with Chat functions, Service Center

WK-2 Claims Process Establish how agency will handle claims internally

Promises to clients - phone availability, call back, what to expect from your agency

WK-3

FFR Process Establish FFR process in eCMS or SiMS

Hardcopy materials for clients

Practice with district staff member

WK-4 Business

Management

Determined on agency experience

Review all bookkeeping practices

Payroll set up

Internal policies

Month

3

WK-1 Staffing Set up compensation programs

Determine level of staff needed and determine how to source, interview, and set up expectations

WK-2

Marketing NB

All Lines focus on setting goals for each line of business on weekly/monthly basis.

Set up way internally to track goals

WK-3

Apply

Marketing

Strategies

Segment markets

Call Lists/ Email Lists

Number of calls, tasks, emails, mailers

Event planning

Referral Network

Networking groups

Social Media

WK-4

Life

Policy Conversions Lists

Cross-Sell Lists and start SMPs.

Life prospecting

Cross-Selling and Asking the Right Questions

Blue Vase Goal

Month

4

WK-1

Intro to

Commercial Pick 3 businesses, do research online and introduce yourself to and find out more about what they do and

who the business is currently insured with. Talk with Rick Fletcher in the district office.

WK-2

Commercial Follow up with the businesses.

Discuss target markets, what went right, where agency wants to focus

How to better qualify commercial prospects

WK-3 Specialty Review Business Plan with regards to Specialty goals for NB

Learn and create marketing system for Specialty

WK-4 FFS Study for FFS Series 6/63 Licensing

Training & Support


BUSINESS DEVELOPMENT SUPPORT - SALES TOOLS

SIMS - Sales Insight Management System

Lead Management enables you to:

■ Manage your leads and cross-selling opportunities ■ Launch automated sequential marketing programs (SMP) ■ Write new business with access to a lead database

Sales Management provides you with:

■ Real-time analytics for managing lead source effectiveness and setting and tracking goals ■ Visibility into your sales pipeline

Financial Management gives you:

■ The ability to analyze staff and compensation strategies ■ Evaluations of investment opportunities with what-if scenarios

Visit www.BeAFarmersAgent.com

OMNI CHANNEL STRATEGY Our Omni channel strategy provides customers with a wide range of options to do business with Farmers,

whether it be online (Farmers.com), through a call center (1-800-Farmers), or with an agent. Regardless of how

consumers chose to come to us, every Farmers customer will be assigned to a local agent, providing cross-

sell and growth opportunities.

Many customers are outside the reach of our agents' marketing efforts and don't consider purchasing through

an agent; however, research shows that most consumers value the assistance of an agent. Our Omni channel

strategy expands our reach across multiple channels and allows our prospective customers to shop in the

fashion that best suits them.

Leveraging a multi-channel approach to help drive additional leads, policies, and cross-sell opportunities to Farmers

agents.

■ Multiple acquisition points to attract and service new Farmers customers

■ All new Farmers customers and unbound quotes will be assigned to an agent or be made available for agent lead selection

■ Agents will receive a commission for new policies sold through the web site or call center that are assigned to them for servicing

■ When an agent cross sells another personal lines policy to a customer sold through the web site or call center, the J or Y series policy will be upgraded to a full commission series

Training & Support

http://www.beafarmersagent.com/


OTHER SUPPORT & OPTIONS After-hour Call Center

■ Ability for existing customers to make policy changes and make payments over the phone after normal agency hours

Cross Border Licensing

■ Dual agent appointment to enable writing business in other states, subject to approval Satellite Offices

■ Ability to set up additional office locations to increase market penetration, subject to approval Agency Acquisition Option

■ Ability to purchase service and commission rights from another Farmers agent, subject to approval

BUSINESS DEVELOPMENT SUPPORT- START-UP Access to agency start-up support services Licensing Support

■ Access to discounted licensing courses: P&C, Life, Series 6/63 Office Support

■ Access to discounted office furniture, technology, branding, and art Payroll Support

■ Access to discounted payroll set up and processing services Loan Support

■ Loan support from Farmers Insurance Group Federal Credit Union

FINANCIAL SUPPORT- BENEFITS Access to Group Life and Comprehensive Medical plans for you, your family and your staff

■ Medical

■ Voluntary Hospital Plan

■ Dental

■ Vision Service Plan

■ Life/AD&D, Supplemental

AD&D

■ Critical Illness Insurance Plan

■ Long Term Disability

■ Enhanced Long Term

Disability

■ Business Overhead Expense

■ Errors and Omissions

■ Fidelity Bond

■ Deferred Compensation Plan

Training & Support


BUSINESS MODEL

Achieve your goals through our successful agency model

Performance marketing tactics that will feature your agency and run all

year

▪ Affordable, turnkey marketing program designed to drive leads to your agency.

▪ Dollar-for-dollar cost matching for leads, marketing pieces, office attire, office signage, etc.

▪ Monthly lead generating marketing tactics.

▪ Direct Mail run monthly for YOUR Agency.

▪ Affinity Marketing Dollars and co-op funds through the Local Marketing Activities Hub to further support

your local marketing efforts.

Training & Support


SUPPORT TEAM

A team that plays together wins together

Administrative Training & Support - Corporate

Training & Performance

Agency Support

Rob LeeCEO / District Manager

Coni CrudupSales & Systems Trainer

Diane NorlingClient Services & Agent Support

Jeri LeeOperations

Dave HillArea Sales Manager

Adam LeeCommercial Wholesaler

Alex ParkDistribution Consultant

Mike HummelSales Productivity Specialist

John VrkljanLife & Financial Services Rep.

Training & Support


SALES DEVELOPMENT

Generate sales, analyze performance, and create future opportunities

Available Lead management

▪ Sort and manage lead database to identify service and cross selling opportunities

▪ Design and execute automated sequential marketing programs (SMPs)

▪ Access additional leads to write new business

Coming soon

Sales management

▪ Compile real-time analytics to track sourcing effectiveness and ROI

▪ Complete visibility into your agency’s productivity

Coming soon

Financial management

▪ Analyze staff compensation and productivity

▪ Simulate investment scenarios to determine profitable future agency expenditures

SIMS Examples

Training & Support


AGENCY STAFFING Delivering an outstanding customer experience is the commitment we make to our customers. By maintaining certain staffing

levels, your agency can differentiate yourself among the competition by becoming a business of choice for prospects in your

community.

Business Development


AGENCY STAFFING: MARKETER In the Marketer role, primary expectations are to increase an agency's policies in force

by contacting potential prospects primarily via the telephone. Using scripts, Marketers

contact and inform prospects of the company's products or services for the purpose of

securing sales appointments for agents or Agency Producers. Marketers are

responsible for tracking marketing methods used as well as their outcomes. This role

gives the Marketer a foundation on which to build a network through various channels

and learn to capitalize on prospecting opportunities by utilizing multiple marketing

strategies. The long-term career path for a Marketer is to become an Agency

Producer.

AGENCY STAFFING: CSSR CSSRs work to maximize positive customer experiences by responding to customer

inquiries or complaints regarding the company's products or services. They will

communicate with internal and external customers about basic underwriting

guidelines, policies, and marketing initiatives to service customer accounts.

Additionally, Customer Service and Sales Representatives will analyze, clarify, and

resolve policy and account-related questions. The position of the Customer Service

and Sales Representative offers not only the opportunity for retention but agency

growth through the expansion of a household by means of cross-selling multiple lines.

This action will generate greater retention within the agency as well as new business

growth.

AGENCY STAFFING: AGENCY

PRODUCER Directly contributes to and supports sales goals of the agency or specialist department

as communicated from the agent to meet short-term and long-term goals for agency

growth. This includes new business, cross-sell opportunities, customer service,

retention, and profit goals.



MARKET RESEARCH Since inception, Farmers' competitive advantage has been the value our agents provide our customers.

Our strategy to target "value-driven" consumers, with a focus on Confident Planners, is not a departure

from what has worked in the past. In fact, Farmers agents have been successfully marketing and selling

to this customer segment for decades.

Today, 72% of our total book of business is made up of "value-driven" consumers, which means that

targeting this segment has broad appeal in the marketplace and is consistent with the customers we have

successfully attracted and retained in the past. Sharpening our focus to better meet the needs of Confident

Planners will improve on what has already been successful for us, and continue to have broad appeal to

many consumers, not just Confident Planners.

We know far more today, than at any point in our history, about how "value-driven" consumers shop, think

and what they expect from us. We also know that Farmers agents are the ones who can deliver for these

consumers. These are some of the driving factors behind our most recent SMART marketing campaign

that highlights our "Customer-Centered, Agent Powered" strategy.

Why is market segmentation important? Defining a market segment helps us:

■ Identify the consumer group that best fits Farmers value proposition

■ Target consumers who represent the best value (in terms of profitability and loyalty), both for Farmers and our agents

■ Build a superior customer experience tailored to that group's needs and wants

■ Differentiate us from the competition



AGENCY BUILD-OUT As you consider your new agency space options, it's best to visualize potential layout options for your

operation, including space for staff. Often the landlord will have a professional who can create a potential

layout for you. Many furniture vendors also provide this service. We have identified potential office layouts for

agents to consider from 750 to 4,000 PIF, as follows:

MODEL #1 - 700 SQUARE FEET, PROFESSIONAL BUILDING, 750 TO 1,750+ PIF

■ Will accommodate the agent, one to two licensed CSSRs, and two part-time Marketers

MODEL #2-1,110 Square Feet, Professional Building or Office Condo/Storefront, 2,000 to 3,500+ PIF

■ Will accommodate the agent, one or two Agency Producers, two or three Licensed CSSRs,

and three part-time Marketers



BRAND COMPLIANCE SIGNAGE

Protecting the Farmers brand is a primary business objective of Farmers. Maintaining proper signage is

an important element of agency brand compliance (see below):

■ Maintain an outdoor Farmers sign that contains the Farmers logo consistent with the

"Trademark and Logo Guidelines"

https://community.farmersinsuranee.com/groups/farmers-brand

■ To the extent an outdoor Farmers sign is precluded by lease or ordinance, maintain an interior

window Farmers sign that contains the Farmers logo consistent with the "Trademark and Logo

Guidelines" OUTDOOR SIGNS

Nothing grabs the attention of a potential client more than great, professional outdoor signage. Here are some

examples of Farmers outdoor signs that meet our ''Trademark and Logo Guidelines." One thing to keep in mind -

for the sign to be cost share eligible, the agent or agency name must not be larger than the word "Farmers"

contained in the logo.

For ordering outdoor signs that meet our logo and trademark standards, go to: http://farmers.fastsigns.com

or http:/// www.farmersmodeloffice.com

INTERIOR SIGNS

In the event that the agent is precluded by lease conditions to have an outdoor sign, the agent should maintain an

interior Farmers sign that meets our Trademark and Logo Guidelines.


http://farmers.fastsigns.com/

http://farmers.fastsigns.com/


PERSONAL LINES GROWTH BONUS

PERSONAL LINES PROFITABLE GROWTH BONUS PAYOUT SCHEDULE – 2018 Being above the line can earn you bigger rewards Payout based on monthly combined new business & renewal commissions for

Financial Snapshot


FINANCIAL SUPPORT PERFORMANCE

BONUSES Acquisition Program

Financial support that rewards your performance - Acquisition with Bonus

■ Tiered bonus system based on cumulative, applicable policies in force or applicable new

gross folio premium generated

■ Duration of financial support determined upon amount of policies purchased ■ Performance in the prior quarter determines the next quarter's bonus tier (from Q2 onward;

in Q1, all agents start as a tier C)

■ Performance based bonuses are paid out monthly ■ Monthly bonuses for commercial insurance are subject to capping

Year 1 Year 2 Year 3

Life Insurance $1,000 $750 $500

Commercial Insurance $2,500 $2,000 $1,500

FINANCIAL SUPPORT- START-UP BONUSES Incentive-based bonuses to help support your new business

Up to

$10,000 office start-up bonus

Agency owners have the opportunity to receive up to $10,000 in their first year for expenses related to setting up

and outfitting a new professional, Farmers-branded office*

Financial Snapshot


FINANCIAL SUPPORT- LIFE BONUSES There are great benefits to becoming a Farmers agency owner including our Life Growth model. Our strategy has

three key components: Fix the Basics, Engage Agents, and Capture the Middle Market. We are transforming

Farmers Life® to make Life easier and more relevant to you. Modernized compensation is an important step in that

process. Our new Life Growth Bonus rewards sales and retention, and gives more agents added incentive to sell

Life.

There's just one Bonus metric - Life premium that stays on the books. That's the same premium that drives your Life

income, the same premium used to measure the growth of your agency and the growth of our Company, the same

premium that shows the value of Life coverage you've placed with your customers.

In short, Life Growth Bonus is a simple incentive that aligns customer value, agent income, and company growth.

Financial Snapshot


FINANCIAL STATEMENT

What Do I Need to Produce to Earn New Business Bonus in Addition to The Standard

Commission? (Auto 9% + 24% Tier A/Q1 = 33%)

Financial Snapshot


FINANCIAL STATEMENT – Estimated Potential

Income Calculator If My Agency produced 40 policies per month on average,

what would my revenue look like?...

If My Agency produced 70 policies per month on average,

what would my revenue look like?...

Financial Snapshot


CONTRACT PROVISIONS A Farmers Agency has significant value

When an agent contract ends, Contract Value payments may be made to the agent. Contract

Value is calculated based on the two following factors:

■ The amount of service commissions paid to the agent on specified policies

during the 12 months prior to the termination of the appointment

■ The number of specified policies assigned to the agent

When you are ready to exit the industry, Farmers gives you the right to determine what to do with your book

of business. Farmers agents have the ability to:

■ Sell their book of business to an internal or external approved buyer

■ Take contract value which is paid directly to the agent at 1x your annual service commissions

■ Transfer your book of business to an immediate family member to create generational wealth

Exit Strategies

Acquisition

Sell your book to a qualified

internal/external buyer. 1-2X

annual service commissions

Family Transfer

Transfer your book of

business to an immediate

family member

Contract Value

1X Annual Service

Commissions

Financial Snapshot


FINANCIAL SUPPORT

Access to comprehensive services to support your family, office staff, business development, and yourself

Agent / Family Benefits


▪ Medical

o Aetna managed choice point-of-service plan

▪ Dental o Aetna PPO/Indemnity OR

Aetna DMO

▪ Vision o Provided by Vision Service

Plan

▪ Life and accidental death & dismemberment

o Term life with optional AD&D coverage

▪ Long-term disability o Various options

▪ Group errors and omissions

o Provides coverage in the event of an error or omission to a customer’s policy

▪ Group fidelity bond o Protection for all peoples

associated with Farmers who handle cash

▪ Retail Agent Earnings & Acquisition Support

o Retail Agent Bonus Program – Increased commissions for first 3 years1

o Acquisitions of less than 1,000 Policies - $10,000 office bonus and NB commission bonuses

▪ Multicultural marketing o Bonus incentives available for

bilingual agents and agency staff2

▪ Office support o Access to discounted office

furniture, technology, branding, and art

o Access to discounted payroll setup and processing services

o Access to discounted licensing courses: P&C, L&H, series 6 & 63

▪ Loan support o Access to loan support from

Farmers Insurance Group FCU and NW Preferred FCU

1) Agent must remain in good standing & growth goals to receive continued support 2) Pending successful exam. Applies to languages listed in form 31-7668 6-12

Financial Snapshot


TO BECOME A FARMERS

AGENCY OWNER Recruiting

■ Interviews ■ Background check ■ Available assets verification ■ Approved business plan & cash flow projection ■ Final candidate review

Licensing

■ Property & Casualty insurance license ■ Life & Health insurance license

Base Training

■ Comprehensive online & instructor-led training courses ■ Pass assessment tests ■ FFS approval of Form U4 ■ Approved business plan ■ Office set up with applicable licensed staff requirements

Agency Development

■ Access to incentive-based financial bonuses: ■ Lead generation (Retail only) ■ Office start-up bonuses in year one ■ Monthly bonus up to three years (Retail and Acquisition) ■ Annual financial bonuses for three years after appointment (Retail only) ■ Additional bonuses available throughout your agency ownership ■ Securities licensed and FFS approved to sell to be obtained within

twelve months after appointment

■ Ability to sell your service & commission rights ■ Opportunity to acquire additional service & commission rights

Process


THE PROCESS TIMELINE

A proven roadmap to agency ownership and growth

OBTAIN YOUR LICENSE

Process


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