TRADITIONAL AGENCY PROGRAM

It’s a smart business move. You know what it takes to be successful. Be your own boss by starting your own Farmers® agency. You get ongoing commissions for every active policy, so your income potential is unlimited. It’s just one of the reasons why we’re a smart business choice and have been so for more than 85 years.

Lifetime customers are smart business.As a Farmers agency owner, you can provide information as your customers make sound decisions about coverage at every stage of their lives. Farmers also provides Financial Services, so you can give them options as they work to achieve their financial dreams.

We’ll help you succeed. Farmers offers business consultant support and the right financial structure to get started. Plus, Farmers Insurance training has been ranked in the top 10 by Training Magazine for four consecutive years, and as a result, in their Hall of Fame.

You have the talent. We’ll provide the support.

Seeking

ENTREPRENEURS,SELF-STARTERS& LEADERS

Join us at www.BeAFarmersAgent.com

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Start Your Own Farmers® Insurance Agency

As a Farmers agency owner, you will enjoy:

�� Unlimited income potential

�� Exceptional performance-based financial support*

�� Outstanding business development opportunities

�� The ability to sell your service & commission rights

�� An opportunity to buy service & commission rights from another agent

Learn how we help entrepreneurs, self-starters and leaders get up and running quickly and build their own successful business.

Visit www.BeAFarmersAgent.com

*Applicable to certain programs only.

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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 premium

�– Offer a leading portfolio of multi-line products and services

�– Have a highly recognized brand with national brand awareness

�– Provide nationally recognized training through the University of Farmers®

Why Become a Farmers Agency Owner?

You have the talent. We’ll provide the support.

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Why Become a Farmers Agency Owner?

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

�� The ability to sell your service & commission rights

�� An opportunity to buy service & commission rights from another agent

*Applicable to certain programs only.

BUILD BUY

Features Traditional Retail Agency Acquisition Seed

Min. investable assets requirement: None $50,000 $25,000 plus

Acquisition capital$50,000

$25,000 at companies discretion

Appointment requirement(s)

�� Reserve training

�� Meet conversion requirements

�� Retail training

�� Branded Office

�� 1 licensed and appointed staff with second in 6 months

�� Approved U4

�� Acquisition training

�� Branded Office

�� 1 licensed and appointed staff

�� Approved U4

�� Acquisition training

�� Branded Office

�� 2 licensed and appointed staff (only 1 licensed and appointed staff required if under 1,000 PIF)

�� Approved U4

Office Start Up Bonus $3,000* Up to $10,000 Up to $10,000** Up to $10,000

Lead Generation Bonus $2,000* $5,000 None None

Monthly Bonus None 3 years Up to 3 years ** None

Subsidy Yes None None None

Annual Bonus None Yes None None

Contract Value Yes Yes 5 years vesting See Addendum

Ability to Sell Yes Yes Yes After 5 years

***Only applicable for Bilingual (Spanish, Cantonese, Mandarin, Korean, Hindi, Tagalog and Vietnamese) and Military program. ***Applies only to acquisitions of agency service and commission rights of under 1,000 policies in force.

This is a summary of available programs. The terms of these programs are contained in applicable current documents.

BUILD OR BUY AN AGENCYFarmers is interested in entrepreneurial-minded individuals who want be their own boss and run a business with unlimited earning potential. At Farmers, we give you a unique opportunity to “Build or Buy” an agency. We also have the award-winning University of Farmers to help train and support you and your staff. There are great benefits to becoming a Farmers agency owner including ongoing commissions for every active policy.

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TRADITIONAL PROGRAM The Traditional program is for candidates that have a limited background in the field of insurance but possess the desired talents and attributes to develop into a great agency owner. This is an opportunity to build a business with future residual income.

The Candidate�� Strong desire to be a small business owner

�� Values the University of Farmers® and support programs offered by Farmers®

�� Self-Starters that may never have considered the insurance industry

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 to learn and accept coaching and feedback to help improve their performance

�� The willingness to accept responsibility for personal success and failures

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The ProcessAssets

�� Preferably have $50,000 in investable assets, but no minimum is required

Licensing, Training and Production�� Property and Casualty and Life and Health licenses are required prior to agent appointment

�� Training milestones and assessments

�� Produce a minimum of 40 Property & Casualty and 4 Life Products sales in the last 120 days of the Reserve Agent Program

�� If you successfully open a securities license (U4) application with Farmers Financial Solutions LLC, Property and Casualty requirements are reduced to 30 property and casualty sales

Background Check�� Satisfactory results of background check

The BenefitsEconomic Interest

�� Contract Value according to the terms of the Agent Appointment Agreement

Sale of Service and Commission Rights �� Ability to build and sell service and commission rights

Subsidy Loans�� Months 1-6

$2,500 in subsidy loans in addition to all net commissions earned

�� Months 7-9

Bronze – Subsidy loans amount of 150% of New Business commissions up to $1,500

Silver – Subsidy loans amount of 150% of New Business commissions up to $2,000

�� Months 10-12

Bronze – Subsidy loans amount of 125% of New Business commissions up to $1,500

Silver – Subsidy loans amount of 125% of New Business commissions up to $2,000

�� Months 13-24

Bronze – Subsidy loans amount of 100% of New Business commissions up to $1,500

Silver – Subsidy loans amount of 100% of New Business commissions up to $2,000

�� Months 25-36

Bronze – Subsidy loans amount of 75% of New Business commissions up to $1,500

Silver – Subsidy loans amount of 75% of New Business commissions up to $2,000

�� Become a Registered Representative

Achieve “approved to sell” status within the first 12 months and earn an additional $6,000 in subsidy loans

�� Diamond Level

Achieve this level of production and earn up to an additional $750 per month (max $6,000) starting in month 13 for costs associated with rent related to an approved office

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Product Portfolio

Outstanding product suite that allows you to compete and succeed

Property & Casualty Insurance

LifeInsurance

FinancialProducts1

�� Auto

�� Home/Renters

�� Umbrella

�� Small Business:�– Commercial P&C

�– Business Auto

�– Workers’ Comp

�� Boat

�� Motorcycle

�� Motor Home

�� Mobile Home

�� 529 Plans

�� 401(k)s

�� Variable Annuities

�� IRAs

�� SEPs

�� Variable Universal Life

�� Mutual Funds with nationally recognized fund families

�� Term Life

�� Universal Life

�� Whole Life

�� Critical Illness Riders

�� AD&D

�� Disability Income Riders

�� Group Life

�� Fixed Annuities

1 Securities offered through Farmers Financial Solutions, LLC – Member FINRA & SIPC Note: All products and features may not be available in all states and may vary by state

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Business Development Support – Outplacement

Ability to refer business not eligible/acceptable to Farmers to Kraft Lake Insurance Agency, Inc.

Accessible through web portals, email, and toll free phone numbers.

ProfessionalLiability (E&O)

High ValueHomeowners

E&S Vacant Building/Land

…and more

Farm & Ranch

Contractor’s General Liability

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In addition, agents have the ability to sell all or any part of their Service & Commission Rights to an approved buyer, provided the purchaser is approved by Farmers*.

Financial Support – 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

Number of Specified Policies: Percent of Applicable Service Commissions:

%005 woleB

%52057– 05

%05005,1– 157

%57000,2– 105,1

%001000,2 revO

Visit www.BeAFarmersAgent.com

*Seed Program candidates do not have the ability to sell for 5 years.

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Business Development Support – Sales Tools

Outstanding sales insights and management support tools

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

SIMS Examples

Visit www.BeAFarmersAgent.com

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Business Development Support – Start-up

Access to agency start-up support services

LoanSupport

PayrollSupport

O�ceSupport

LicensingSupport

Access to discounted

licensing courses:

P&C, Life, Series 6/63

Access to discounted

o�ce furniture,

technology, branding,

and art

Access to discounted

payroll set up and

processing services

Loan support from Farmers

Insurance Group

Federal Credit Union

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Financial Support – Benefits

Access to Group Life and Comprehensive Medical plans for you, your family and your staff

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

Medical

Deferred Compensation Plan

Visit www.BeAFarmersAgent.com

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Other Support & Options

After hour call center

Cross border licensing

Satelliteo�ces

Agency Acquisition

Option

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

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

Ability to set up additional office locations to increase market penetration, subject to approval

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

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To Become a Farmers Agency Owner

�� Interviews

�� Background check

�� Available assets verification

�� Approved business plan & cash flow projection

�� Final candidate review

Agency Development

BaseTraining

Licensing

Recruiting

�� Property & Casualty insurance license

�� Life & Health insurance license

�� 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

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

Visit www.BeAFarmersAgent.com

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Visit www.BeAFarmersAgent.com

To Become a Farmers Agency Owner

To schedule a time to meet, please contact:

Taylor Carpenter District Recruiting Manager

taylor.norton1@farmersagency.com

Office of Nickolas Orton 6436 E. Broadway Blvd Tucson, AZ 85710 (520)-777-8786