FARMERS INSURANCE GROUP MARINE SPECIALTY

1. FARMERS INSURANCE GROUP MARINE SPECIALTY

2. Whether you need to insure…. Or... Or... We’ve got a program and product for you!

3. Agenda • Product Comparison • Rating/Claims Comparison • Workflows • Compensation • Questions and Answers

4. Inboard, I/O, Outboard, Sailboats, standard exclusions. Inboard, I/O, Outboard, Sailboats, standard exclusions. Inboard, I/O, Outboard, Sailboats, standard exclusions. Surveys required for vessels >26’ and >10 years of age, or valued over $40,000 and >10 years of age, or all wooden vessels >10 years of age. Photos required on boats >10 years of age or hull value >$7500. Product Comparisons

5. Product Comparisons

6. Jones Act Excluded Excluded Includes $1,000; up to $5,000 available. Incidental (up to 15 days) provided. Medical Payments Includes $10,000; higher limits available Includes $1,000 Includes $1,000; up to $5000 available. Limit same as P&I. Product Comparisons

7. Inland and coastal waters. If navigated in Gulf, must have adequate trailer. Product Comparisons

8. Rating/Claims Comparison Vessel Specifications Texas Rates Based on $250 Deductible on Boatowners and 1% ($230) on Leisure Boaters Boatowners Policy also calculated with 15% HO Discount not available with Leisure Boaters

9. Claim SettlementPartial Loss

10. Partial Claim Detail

11. Total Loss Claim Detail

12. Marketing materials and supplies are available from Chino, California. Marketing Support

14. Farmers Insurance Group ACV Boatowner’s Policy - do business as you normally would with BSC FIG Boatowner’s Policies

15. Yacht Secure Policy

16. How to Obtain Quote and Produce New Yacht Business • Agent FAXes completed application to Baltimore Marine BSC • (Application in folder) • Baltimore Marine BSC calculates and FAXes tentative quote to agent subject to receipt of additional information necessary to underwrite (if any) • Agent acquires and provides additional information to Baltimore Marine BSC • Baltimore Marine BSC finalizes quote and FAXes to agent • Agent presents quote to customer • If customer accepts quote, agent FAXes or calls request to bind risk with “As of Date”

17. How to Obtain Quote and Produce New Yacht Business(Continued) • Baltimore Marine FAXes confirmation of authority to bind with “As of Date” • Coverage is not considered bound until Baltimore Marine BSC sends confirmation of authority to bind • Agent responsible to have customer complete and sign application • Standard Bill - indicate cash amount deposited into agent’s ACA account • Signed application with MCNA sticker attached is forwarded to Baltimore Marine BSC within 5 days of binding in special pre-addressed envelope • Baltimore Marine BSC produces policy and mails to agent for distribution • All billing inquiries go to Baltimore Marine BSC at 1-800-457-1103

18. Processing of Endorsements / Cancellations (Yacht Secure) • Agent FAXes policy change / cancellation request to Baltimore Marine BSC @ 1-410-554-5007. • Baltimore Marine BSC produces endorsement and mails to agent for distribution • Baltimore Marine BSC produces cancellation and mails to customer

19. Leisure Boater’s Policy

20. New Business • Agent obtains application information from customer. • (Application in folder) • Agent underwrites and calculates price or obtains quote from Baltimore Marine BSC • Agent presents quote to customer • If customer accepts, 30 day binder issued by agent • Agent notifies Baltimore Marine BSC of binder being issued by facsimile within 5 business days • Agent responsible to have customer complete and sign application • Standard Bill - indicate cash amount deposited into agent’s ACA account

21. New Business(Continued) • Signed application with MCNA sticker attached and copy of worksheet forwarded to Baltimore Marine BSC in special pre-addressed envelope within 5 business days • Baltimore Marine BSC produces policy and mails to agent for distribution • All Billing inquiries go to Baltimore Marine BSC 1-800-457-1103

22. Using the Leisure Boater’s Manual and the Rating Worksheet How to Calculate the Price

23. Front Page, Top Half

24. Front Page, Bottom Half _____

25. Back Page, Top Half

26. Back Page, Bottom Half

27. Obtaining a Quote from Baltimore Marine BSC • FAX Leisure Boater’s Application to Baltimore Marine BSC at 410-554-5007 • Quote FAXed to agent within 24 hours Agent Needs Help • Call Baltimore Marine BSC @ 1-800-457-1103 • Associate U/W walk agent through quoting process Computer Rating • Field Data Rating Disk • Available 1999

28. Processing of Endorsements / Cancellations (Leisure Boater’s) • Agent FAXes policy change / cancellation request to Baltimore Marine BSC @ 1-410-554-5007. • Baltimore Marine BSC produces endorsement and mails to agent for distribution • Baltimore Marine BSC produces cancellation and mails to customer

29. Reporting Claims • All claims involving boats or yachts must be reported promptly • Farmers’ agents shouldnot report claims through the FACTS system • Report Yacht Secure and Leisure Boater’s claims to our 7x 24 hours loss reporting unit at 1-800-457-1103 • Emergency claim response provided • For claim inquiries - call 1-800-457-1103

30. Timetable • Yacht Secure Policy - available immediately. • Leisure Boater's Policy - available immediately

31. Miscellaneous • SeaChest - Quarterly Publication • Loss reporting sticker

32. Compensation • Commissions - New Business 18% Renewal Business - 14% • Production - One Production Count is allowed on each $50.00 multiple of New Business premium charged (or fraction thereof), subject to a maximum count of 10. - Reinstated policies out of force over 6 months will receive the same Production Count as New Business.

33. Questions and Answers