FARMERS INSURANCE GROUP

MARINE SPECIALTY

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Agenda Product Comparison

Rating/Claims Comparison

Workflows

Compensation

Questions and Answers

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

Product Comparisons

Product Comparisons

Limit same as P&I.

Includes $1,000; up to $5,000 available.

Jones Act Excluded Excluded Incidental (up to 15 days) provided.

Medical Payments Includes $1,000 Includes $1,000; up to $5000 available.

Includes $10,000; higher limits available

Product Comparisons

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

Rating/Claims Comparison

Year Make Model Length Horse Power Current Value Original value1991 Grady White Sailfish Sport Bridge 25'4" 230 $23,000 $54,0001995 Grady White Sea Farer 22' 250 $23,000 $41,3001998 Bayliner Trophy 23'5" 250 $21,000 $30,000

Vessel Specifications

Year Make Inland Coastal Inland Coastal1991 Grady White $508 $560 $541 $6591995 Grady White $481 $586 $566 $6891998 Bayliner $431 $523 $507 $615

Boatowner's Policy Leisure Boater's Policy

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

Claim SettlementPartial Loss

Loss Component Replacement Cost DepreciationAlpha One Outdrive $4,300 8% annuallyStainless Steel Prop $400 10% FlatLabor $650 Not ApplicableTotal $5,350

Partial Claim Detail

Loss ComponentReplacement

CostLeisure Boater's-

Each loss

Boatowner's- 1991 Grady

White

Boatowner's- 1995 Grady

WhiteBoatowner's- 1998 Bayliner

Alpha One Outdrive $4,300 $4,300 $1,548 $2,924 $3,956Stainless Steel Prop $400 $400 $360 $360 $360Labor $650 $650 $650 $650 $650Total $5,350 $5,350 $2,558 $3,934 $4,966Less Deductible $230 $250 $250 $250Loss Paid $5,120 $2,308 $3,684 $4,716

Total Loss Claim Detail

Year Make Insured Value

FIG - Boatowner's

Policy

FIG - LeisureBoater's

Policy

1998 Bayliner $30,000 $21,000 $30,000

Marketing materials and supplies are available from Chino, California.

Marketing Support

Marketing Materials Order Form

Highlights QuantityLeisure Boater’s Policy 31-4104 __________Yacht Secure Policy 31-4107 __________

PolicyLeisure Boater’s Policy 56-5431 __________Yacht Secure Policy 56-5421 __________

BrochureLeisure Boater’s Brochure 33-0332 __________Yacht Secure Brochure 33-0333 __________

Underwriting GuidelinesLeisure Boater’s Manual 31-4103 __________Yacht Secure Guidelines 31-4109 __________

ApplicationsLeisure Boater’s Policy 31-4102 __________Yacht Secure Policy 31-4108 __________

WorksheetLeisure Boater’s Policy 31-4101 __________

Envelopes#14 Return Envelope 31-4111 __________

MiscellaneousIndicators of Fraud List 31-4112 __________Marketing Order Forms 31-4113 __________Marine Loss Reporting Procedure 32-7670 ____________

________________________________________________________________________________________________NAME AGENT#______________________________________________________________________COMPANY______________________________________________________________________ADDRESS (please Specify Street Address)______________________________________________________________________CITY STATE ZIP______________________________________________________________________PHONE FAX

31-4113 Rev. 4-99 Fax complete form to 909-628-5433

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

FIG Boatowner’s Policies

Yacht Secure Policy

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”

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

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

Leisure Boater’s Policy

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

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

How to Calculate the Price

Using the Leisure Boater’s Manual

andthe Rating Worksheet

Front Page,

Top Half

_____

Front Page,

Bottom Half

Back Page,

Top Half

Back Page,

Bottom Half

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

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

Reporting Claims

All claims involving boats or yachts must be reported promptly

Farmers’ agents should not 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

Timetable

Yacht Secure Policy - available immediately.

Leisure Boater's Policy - available immediately

SeaChest - Quarterly Publication

Loss reporting sticker

Miscellaneous

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.

Questions and Answers