3. 3
1928
Established
More than
10,000
Exclusive agents in
Serve more than
5 million
Households with more than
14 million individual policies
Award-winning
training
University of Farmers®
36
States
24/7
Award-winning claims
department service
Over
20
CONFIDENTIAL 2-20
IN BUSINESS FOR OVER 90 YEARS AND STILL BUILDING
Insurance and financial
services products
Over
$20
billion
combined assets
CONFIDENTIAL 04-21
4. 4
INSURANCE AND FINANCIAL SERVICE PRODUCTS
Personal Lines, Commercial, Specialty, Life1, and Financial Services2
Property & Casualty
• Auto
• Home & Renters
• Umbrella
• Small Business
• Habitational
• Boat
• Motorcycle
• Motor Home
• Mobile Home
• Commercial P&C
• Workers’ Compensation
Life Insurance1
• Term Life
• Whole Life
• Universal Life
• Indexed Universal Life
• Critical Illness
• Accidental Death
• Disability
• Group Term
• Fixed Annuities
• Advanced Market
Life Solutions
Financial Products2
• 529 Plans
• 401(k) Plans
• Variable Annuities
• Roth IRAs
• SEP
• Simple IRAs
• Variable Life
• Mutual Funds
• Nationally Recognized
Fund Families
Auto Home Life1 Business Recreational Motorcycle Umbrella Renters Financial2
1 Life insurance issued by Farmers New World Life Insurance Company, 3120 139th Ave. SE, Ste. 300, Bellevue, WA 98005. Products and features
may not be available in all states and may vary by state. Restrictions, exclusions, limits, and conditions apply.
2 Securities offered through Farmers Financial Solutions, LLC. Member FINRA & SIPC. Some products may not be available in all states.
CONFIDENTIAL 04-21 ALL STATES EXCEPT CT, FL AND NY
5. 5
OUTPLACEMENT OPTIONS
Through wholly owned Kraft Lake Insurance Agency, Inc. and outside appointments
CONFIDENTIAL 04-21
• National brokerage wholly owned by Farmers®
• Provides Farmers agents with access to external company products that
complement Farmers products and help round out accounts
• Based in Grand Rapids, Michigan, Kraft Lake® is staffed with representatives who have
a wide background of insurance experience
• Business that is not acceptable to Farmers and not eligible for placement through
Kraft Lake may be placed outside of Farmers
Contractor’s
General Liability
High Value
Homeowners
Farm
& Ranch
Professional
Liability (E&O)
E&S Vacant
Building/Land
7. 7
WHAT IT MEANS TO BE AN EXCLUSIVE AGENT
• Numerous incentive and bonus opportunities1
- Growth bonuses for Personal Lines, Commercial and Life
- Achievement Clubs (Topper Club and Presidents Council)
- Other bonuses and incentive opportunities for performance as a Farmers agent
• Opportunity to participate in our Protégé Agency Producer program1
• Agent appointment agreement
- Business that is not acceptable to Farmers or eligible for placement through Kraft
Lake® can be placed outside
• Service and commission rights2
- Opportunity to sell service and commission rights on the open market
- Opportunity to purchase service and commission rights of another Farmers agent
• Contract Value opportunity2
Farmers® support and products, acquisition and bonus opportunities, and more
CONFIDENTIAL 04-21
1Incentives and bonus opportunities subject to change at any time and may not be available to all agents
2Refer to agent appointment agreement for more information
ALL STATES EXCEPT CT, FL, AND NY
8. THE FLEX PROGRAM
36-month new agent support program
that rewards high levels of performance
CONFIDENTIAL 04-21
9. 9
THE FLEX PROGRAM
Five bonus opportunities
1. Exterior Branding Bonus to assist with obtaining initial compliant exterior branding
2. $2,500 Signing Bonus in month 2 following full-time appointment
3. Monthly Lead Opportunity of up to $500 per month in Agency Growth Program lead opportunity credits
4. Bonus on applicable net NB commissions paid while on Reserve agent program1,2
5. Monthly Bonus Program based on applicable net NB commissions and production for up to 36 months2
36-month new agent support program that rewards high levels of performance
Other key program features
1. Flex bonus opportunities are in addition to commissions
2. Production requirements reset each quarter
3. Additional bonus opportunities following completion of the Flex program
4. New agent training program from the University of Farmers®
CONFIDENTIAL 04-21
1This one-time bonus also applies to the Associate agent program
2Subject to specified maximum amounts
10. 10
THE FLEX PROGRAM
Quarterly bonus schedule for the monthly bonus opportunity1
CONFIDENTIAL 04-21
• Production determines bonus based on applicable net NB commissions paid the next quarter
- For example, achieving $15,000 in qualifying net NB commissions and 3 Life Issued & Paid in Q1 would
qualify an agent to receive a 200% bonus based on qualifying net NB commissions produced during Q21
Monthly Bonus on Qualifying Net New Business Commissions Paid
Area 0 Q1 Q2 Q3 Q4 Q5 Q6 Q7 Q8 Q9 Q10 Q11 Q12
Tier A 200% 200% 200% 200% 120% 120% 120% 120% 40% 40% 40% 40%
Tier B 200% 180% 180% 180% 108% 108% 108% 108% 36% 36% 36% 36%
Tier C 200% 160% 160% 160% 96% 96% 96% 96% 32% 32% 32% 32%
Qualifying Net New Business Commissions Paid Quarterly Requirements2
Area 1 Q1 Q2 Q3 Q4 Q5 Q6 Q7 Q8 Q9 Q10 Q11 Q12
Tier A 10,000 / 3 10,500 / 3 11,000 / 4 11,500 / 4 12,000 / 5 12,500 / 5 13,000 / 6 13,500 / 6 14,000 / 7 14,500 / 7 15,000 / 8 15,500 / 8
Tier B 7,000 / 2 7,500 / 2 8,000 / 3 8,500 / 3 9,000 / 4 9,500 / 4 10,000 / 5 10,500 / 5 11,000 / 6 11,500 / 6 12,000 / 7 12,500 / 7
Tier C 4,000 / 1 4,500 / 1 5,000 / 2 5,500 / 2 6,000 / 3 6,500 / 3 7,000 / 4 7,500 / 4 8,000 / 5 8,500 / 5 9,000 / 6 9,500 / 6
Area 2 Q1 Q2 Q3 Q4 Q5 Q6 Q7 Q8 Q9 Q10 Q11 Q12
Tier A 9,500 / 3 9,975 / 3 10,450 / 4 10,925 / 4 11,400 / 5 11,875 / 5 12,350 / 6 12,825 / 6 13,300 / 7 13,775 / 7 14,250 / 8 14,725 / 8
Tier B 6,650 / 2 7,125 / 2 7,600 / 3 8,075 / 3 8,550 / 4 9,025 / 4 9,500 / 5 9,975 / 5 10,450 / 6 10,925 / 6 11,400 / 7 11,875 / 7
Tier C 3,800 / 1 4,275 / 1 4,750 / 2 5,225 / 2 5,700 / 3 6,175 / 3 6,650 / 4 7,125 / 4 7,600 / 5 8,075 / 5 8,550 / 6 9,025 / 6
Area 3 Q1 Q2 Q3 Q4 Q5 Q6 Q7 Q8 Q9 Q10 Q11 Q12
Tier A 9,000 / 3 9,450 / 3 9,900 / 4 10,350 / 4 10,800 / 5 11,250 / 5 11,700 / 6 12,150 / 6 12,600 / 7 13,050 / 7 13,500 / 8 13,950 / 8
Tier B 6,300 / 2 6,750 / 2 7,200 / 3 7,650 / 3 8,100 / 4 8,550 / 4 9,000 / 5 9,450 / 5 9,900 / 6 10,350 / 6 10,800 / 7 11,250 / 7
Tier C 3,600 / 1 4,050 / 1 4,500 / 2 4,950 / 2 5,400 / 3 5,850 / 3 6,300 / 4 6,750 / 4 7,200 / 5 7,650 / 5 8,100 / 6 8,550 / 6
1Monthly bonuses paid based on qualifying Life and Commercial commissions are subject to specified maximum amounts
2Each ZIP Code assigned to applicable Areas which determine the bonus percentages and requirements
ALL STATES EXCEPT CT, FL, NY, AND UT
11. 11
THE FLEX PROGRAM
Bonus illustration
CONFIDENTIAL 04-21
The above agent would receive $126,000 in Flex bonuses for achieving
a total of $60,000 in applicable net NB commissions during the first year,
plus the Exterior Branding Bonus, the $2,500 Signing Bonus, and the bonus
based on Reserve or Associate program net NB commissions2
Illustration of Potential Flex Bonuses for 1st Year Based on 14 Life I&P and $60K in Applicable Net NB Commissions
1Monthly bonuses paid on qualifying Life and Commercial commissions are subject to specified maximum amounts; this example assumes
Tier A applies
2Assumes all bonus eligibility requirements were achieved
Qualifying
Net NB
Commissions Paid
Monthly Bonus
on Qualifying Net NB
Commissions Paid1
Monthly
Lead Opportunity
Credits
Total Bonus
and Qualifying Net NB
Commissions Paid
Q1 $15,000 + 200% or $30,000 + $1,500 = $46,500
Q2 $15,000 + 200% or $30,000 + $1,500 = $46,500
Q3 $15,000 + 200% or $30,000 + $1,500 = $46,500
Q4 $15,000 + 200% or $30,000 + $1,500 = $46,500
Y1 $60,000 + $120,000 + $6,000 = $186,000
ALL STATES EXCEPT CT, FL, NY, AND UT
12. 12
RECRUITING AND ONBOARDING PROCESS
Next steps
CONFIDENTIAL 04-21
Full-time Agent
Appointment
Goals
• Complete program
production goals
Complete Your
Licensing
• Obtain Property,
Casualty, Life, Health
and any other
applicable licenses
• Opportunity to obtain
Series 6 and 63
securities licenses
Review the
Opportunity
• Explore becoming a
Farmers® agency
owner with a local
recruiter
Training and
Onboarding
• University of
Farmers® training
program
• Full-time agent
business plan review
Verify
Eligibility
• Pass background
check
• Career assessment
profile
Open for
Business as a
Full-time Agent
6
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