ROCKFORD MUTUAL INSURANCE COMPANY

THE COURIER

www.rockfordmutual.com March, 2011

This year, Rockford Mutual Insurance Company celebrates our 115th year. Since its beginnings, the company has carried on a proud partnership with our independent agents and farm mutu-als. Our goal is to provide the very best service possible and to be your choice in companies. As I begin this new role, I would like to share my thoughts. Although 2010 will come in with a combined loss ratio of just over 106, we were able to add to surplus and had solid premium growth. There is still great opportunity for profitable growth, and we intend to earn your good business. Our focus is on putting the experience of 2010 behind us and returning to a combined loss ratio under 100 percent. We recognize the market is not turning yet, and don’t see that happening this year in commercial lines. We also recognize that we must grow policy count and surplus along the way. A company is only as good as the people that work there, and Rockford Mutual has a fantastic team to help you. That is one of the strengths that we will leverage to work with you to help you be more successful – despite the market. We have knowledgeable, experienced underwriters, great claims service, a solid portfolio of products and associates that want to help you. In closing, I want to say that It has been a pleasure working with Bill throughout this transi-tion. As you know, his official retirement date is March 31st. We all wish Bill the very best in his retirement and appreciate the many contributions and sacrifices he has made in the success of Rockford Mutual. Thank you for your support, Joseph DeChatelets President/CEO

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ROCKFORD INSURANCE AGENCY says:

THINK SPRING! We are getting close to the time of year when many people buy ATV’s, Motorcycles, and Boats. The Rock-

ford Insurance Agency offers Progressive Insurance Company as a great option for these stand alone poli-

cies. Progressive offers many discounts and coverages like total replacement cost on newer motorcycles

and boats for your favorite toys!!

Also coming this spring from Progressive Motorcycle and Boat Policies—

DISAPPEARING DEDUCTIBLE!

Stay tuned for more exciting details to come. Call Nicole at Ext. 292 for your quote today!.

Let us also help you with some of our preferred classes of business:

⇒ Animal Shelters ⇒ Bars & Taverns ⇒ Caterers ⇒ Christmas Tree Farms ⇒ Clubs (Eagles, Chamber of Commerce) ⇒ Commercial Auto (sand & gravel) ⇒ Counseling Services ⇒ Day Care Centers (children & adults) ⇒ Dental Assistants (Professional) ⇒ Detectives ⇒ Exercise & Fitness Centers ⇒ Fishing & Hunting Guide ⇒ Homeowner Associations

⇒ Hunting Preserves ⇒ Liquor Liability (several markets) ⇒ Martial Arts Centers ⇒ Message Therapists (GL & Professional) ⇒ Motorcycles, ATV’s,Golf Carts ⇒ Nurse’s Professional Liability ⇒ Pick Your Own Apple Orchards ⇒ Professional Liability (many classes) ⇒ Restaurants ⇒ Senior Centers ⇒ Skating Centers ⇒ Umbrella’s (both personal & commercial) ⇒ Vacant Property (personal & commercial)

Give us a call or e-mail us about your risk. Susan Leoni Ext. 267 sleoni@rockfordmutual.com

Nicole Hamilton Ext. 292 nhamilton@rockfordmutual.com

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New Items ⇒ We will now offer Equipment Breakdown Coverage as an optional endorsement, please refer to our manual

for more details.

⇒ Homepac Endorsement will now be eligible in Select as well as Preferred program. Also, water back up cov-erage on Homepac endorsement will now be stacked with any other purchased water back up coverage on the policy.

⇒ HO-4/Auto discount - We will now discount HO-4 premium if the corresponding automobile is also insured with Rockford Mutual.

⇒ Rockford Homeowners is now available on EZLynx in Illinois.

Rates ⇒ The overall impact of the revision for the average policy: Illinois +5%, Wisconsin +8%, Missouri +17%, Indiana +4%.

⇒ Revised Homeowners Loss Surcharge to vary by years renewed and forgive losses less than $1,000.

⇒ Adjusted Coverage A relativities to align with marketplace for middle market property.

⇒ Territory base rate adjustments.

Homeowners Manual

⇒ We will not be distributing hard copies of our updated manual with this notice. Please visit our website at www.rockfordmutual.com for an updated copy of our manual or you can acquire a hard copy by contacting our Supply De-partment at extension 331.

Miscellaneous

⇒ As a result of recent technological advancements in our homeowner policy administration process, we will no longer be providing photo reimbursement. Our easy to use system allows you to attach electronic photos directly to our web-site. This change will also help RMIC reduce new business acquisition cost and in turn keep our rates competitive.

Homeowner premium is reduced by an additional 25% Homeowner premium is reduced by an additional 25% when packaged with automobile!when packaged with automobile!

Revisions to Homeowners Program Effective February 1, 2011 for New Business and

March 1, 2011 for Renewals

RMIC HOLIDAYSRMIC HOLIDAYSRMIC HOLIDAYSRMIC HOLIDAYS————OFFICE CLOSEDOFFICE CLOSEDOFFICE CLOSEDOFFICE CLOSED

Friday, April 22Friday, April 22Friday, April 22Friday, April 22————Good FridayGood FridayGood FridayGood Friday Monday, May 30 Monday, May 30 Monday, May 30 Monday, May 30————Memorial DayMemorial DayMemorial DayMemorial Day

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Agency Incentive Caribbean CruiseAgency Incentive Caribbean CruiseAgency Incentive Caribbean CruiseAgency Incentive Caribbean Cruise On Saturday February 26th, 2011, we set sail for our Agency Incentive trip on the Oasis of the Seas. Ninety eight agency representatives and guests were in attendance for the Eastern Car-ibbean cruise to The Bahamas, St. Thomas, and St. Maarten. We enjoyed beautiful weather and good company as we cruised on the world’s largest ship. There was plenty to do on the ship as well as many wonderful sights to see as we made our way to each port. We want to thank our agency partners for joining us. With the help of these agencies, Rockford Mutual was able to enjoy a successful year in growth of written premium in 2010.

We would like to thank Rockford for sponsoring the Agent Incentive trip aboard the Oasis of the Seas. We had a wonderful time on a wonder-ful ship! Being a new Agent with Rockford, it was really nice to be able to meet and talk to other Agents. We heard nothing but good comments about Rockford, our Underwriter Diane, claims department and Manage-ment. We are pleased to represent Rockford Mutual and thoroughly enjoyed our trip! Thanks again, Robert & Jo Moulton Coonrod Agency White Hall, IL

Photos courtesy of Todd Tyler, Insurance Pro Agencies

It was a great trip, beautiful weather, excellent accommodations. Met with a lot of RMIC agents, great RMIC people to be with—Bill, Rick, Shane, and their wives. Never a dull moment with something to do all of the time. Some people may relax and this is fine, but we like to keep on the go. Always looking for action and it was a great trip. We didn’t unpack our bags as we are ready to go again. Jim & Colleen Raders Jim Raders Agency Lena, IL Thank you for all your work making the Rockford Cruise on Oasis of the Seas so successful. We had a wonderful time! Warren & Cheryl Preuitt Preuitt Insurance Services Sedalia, MO

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Revisions to ROPAC & CONPAC Programs New Business 5/1/2011, Renewal Business 6/1/2011

We are pleased to announce the implementation of an update to our ROPAC and CONPAC programs. Overall rate change will vary by customer.

ROPAC

Rate Reduction - We have reviewed and reduced rates up to 20% for our Restaurant classes; Bed & Breakfast establishments and Self-Storage facilities in all 4 states. We feel these changes will make Rockford a more competitive option.

Minimum Premiums are taking a minor increase to $350. Back Up of Sewers or Drains – Will be revised to offer 2 limits for new business: $25,000 and

$50,000. Existing business will remain at current limit except those policies above $50,000,

they will be capped at $50,000. Rates will also be increased.

CONPAC

Great Inland Marine Option - We are introducing a Contractors’ Installation, Tools, and Equipment Coverage Endorsement. The endorsement provides coverage for Contractors’ Installation, Tools and Equipment. Basic coverage limits of $5,000 are included, except indi-vidual tools in excess of $2,000 need to be scheduled. Higher limits are available for an addi-tional premium. Premium (Basic Coverage): $125

Minimum Premiums are taking a minor increase to $350. We are adding 2 new classes- Carpentry-Interior (91341) and Janitorial Services (96816)

Manuals

We will not be distributing hard copies of our updated manual with this notice. Please visit our website at www.rockfordmutual.com for an updated copy of our manual or you can acquire a hard copy by contacting our Supply Department at extension 331.

Based on our analysis of the current marketplace we feel that we will continue to remain a competitive option for your new business. We strongly value our partnership with you and are genuinely committed to earning your busi-ness. Thanks for a positive year in 2010 and we look forward to continued growth in 2011. If you have any ques-tions, please feel free to contact your underwriter or marketing representative.

A Great New Look!

We’re spicing things up for you and your customers.

You may have noticed that we have enhanced our

home page with a complete new look. Easier to read,

new photos, and more visible links. These are all

things that make up our new, more informative home

page stand out. We are constantly evaluating and

making enhancements to all of our web programs

and trust that we are making the act of doing business

simpler, and more pleasurable. We do appreciate

your feedback and the suggestions that you have

made in making it easier to do business

with Rockford Mutual.

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THANK YOU, Retiring President’s Council Members . . . . .

We are very grateful that Bill Hayes has devoted

six years to our President’s Council. Bill began his

insurance career in 1970, and started his own

agency in 1993. The Insurance House contracted

with Rockford Mutual in 1999. They have grown to

become one of our largest agencies producing

profitable commercial accounts. Bill discovered the

economic downturn could offer some great deals,

so he bought a building and moved the agency

from Lemont to Mokena.

Bill Hayes The Insurance House

Mokena, IL

It is with sincere gratitude that we recognize and thank both Jim Williams, of Williams & Associates Insurance Agency, and Randall Crocker, of Crocker Insurance Agency, for their time and efforts on the President’s Council. Both Jim and Randall saw their re-spective six and five year terms draw to a close in 2010. Said Randy, “It was well worth the time that I spent on the council. I met a lot of other agents and learned what they were doing. Bill and Rick were receptive to agents’ thoughts and ideas.” Jim said, “I enjoyed the meetings. They were informative and the company really valued our input. The company wants to foster better partnerships with the agents.” The Crocker Insurance Agency is located in Sesser, IL. Randall’s agency has been a partner with Rockford Mutual since 1989. Jim’s Williams & Associates Insurance Agency is located in Harrisburg, IL and have been a fine representative of Rockford Mutual since 1986.

Jim Williams Williams & Associates Insurance

Randall Crocker Crocker Insurance Agency

Sesser, IL

Mike Yepsen CSB Insurance

Galva, IL

We are very appreciative of Mike Yepsen’s dedication to his 6 year term on the President’s Council. Mike is the owner of CSB Insurance in Galva, IL. In 1993, fol-lowing a stint as an adjuster with a farm mutual in Henry, IL, Mike found himself at a career crossroads and decided to enter the family business (Mike’s uncle is Bernie Cromien). Bernie offered him a position and within two years, Mike became the owner of the family enterprise, which now has three locations. Mike’s favorite part of the insurance business? Helping his customers find just the right coverages.

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Commercial Lines - Helpful Reminders…

New Policies – If you don’t receive the policy or a reply from

Underwriting within two weeks from submitting an ac-

count for issuance, please remember to check your work

queue or contact your underwriter.

Account Declination – When entering an on-line submission,

if you receive a “declination” of the risk, do not hit the

“decline” button. Instead, please either refer the account

to your underwriter for further consideration or close out

the request. If you have any questions, please give your

underwriter a call.

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Please join us for a…Please join us for a…Please join us for a…Please join us for a…

ROPAC / CONPAC Update “Lunch & Learn” webinar

Who: Open to all RMIC Commercial Agents & CSR’s

What: Rockford Mutual Insurance Company is releasing a ROPAC and

CONPAC update effective 5/1/11 for new business and 6/1/11 for re-

newals. Join us to learn what’s new!

When: Thursday, March 24th from 11:30 am – 12:30 am (CST)

What do I do: You’ll need to register to attend this webinar using the

link indicated below. Upon registration, you will receive an email di-

recting you how to participate on the 24th of March. Your marketing

rep will also have instructions for webinar registration.

https://www3.gotomeeting.com/register/142914782

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Happy Anniversary . . . .

Joseph DeChatelets, Ken Chase, Elaine Wentz, Roger Kaage

Elaine Wentz, Claims Support Specialist, was hired at Rockford Mutual on January 8, 2000 following many years as a stay-at-home Mom, 3 years with Aetna In-surance, 3 years at Alma Nelson Nursing Home, and seven years as a private secretary. Elaine is Mom to Teresa, Timothy, and Chad, and grandmother to Abbey, 11, and Matthew, 6. When Elaine is not busy at work at RMIC, she likes jigsaw puzzles, reading and movies from the 1930’s, 1940’s. and 1950’s.

Roger Kaage, Patrick Kennedy, Roger Bendorf, Joseph DeChatelets

Roger Bendorf, Litigation Specialist, recently cele-brated his 5th anniversary as an employee of RMIC. Roger and his wife, Lisa, have two daughters, Lydia, 17, and Briana, 15. Roger graduated from Graceland University with a major in elementary education and a minor in business. Before coming to RMIC, Roger was employed by Econ-omy/St, Paul/Travelers, Trinity Universal Insurance in Topeka, KS, Crawford & Company, Wichita Falls, TX, and Farmers Mutual Insurance as a crop hail adjuster.

Promotions . . . . Jim Lillard was recently promoted to Assistant Comptroller. Kirk Newton has been promoted to Quality Assurance Specialist. Fred Schneiderman has been promoted to Director of Personal Lines Underwriting and Underwriting Services Joe Flynn was just named Assistant Vice President—Underwriting.

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WORKER’S

COMPENSATION

NEWS

We Salute. . . . COVENANT INSURANCE GROUP, INC.

John Eddy (Covenant Insurance) Jeremy Jones, (Covenant Insurance) Karen Steiner (RMIC), Joe Flynn (RMIC)

COVENANT INSURANCE GROUP, INC., Roscoe, IL wrote Rockford Mutual’s first worker’s compensation policy. The program debuted on October 1, 2010, and Covenant submitted and wrote a policy for a picture frame shop shortly thereafter.

And a word from our agents . . . . .

Rockford Mutual’s new Worker’s Comp product has helped me sell more business, plain and sim-ple. When I pair it with their already competitive BOPs, I really have a nice package to offer the customer. Best of all, the underwriters could not be easier to work with! Jeremy Jones Covenant Insurance Group Roscoe, IL

Work Comp is one of my most challenging products to sell and service. I am happy to be able to work with RMIC to promote this business. RMIC’s conservative approach is in the right direction as expansion into new areas will eventually come along as profitability in-creases. Hopefully, my agency will be able to add to the success of this new venture. Jim Raders Jim Raders Insurance Agency Lena, IL

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WELCOME . . . .

Joseph P. DeChatelets, CPCU, CLU President & CEO

Joseph P. DeChatelets, joined Rockford Mutual Insurance Company on January 1, 2011 as President/CEO following a lengthy career with Auto Owners Insurance Company. Joseph graduated from the Uni-versity of Wisconsin—Eau Claire with a BA degree and has also earned the following professional designations: CPCU, CLU, AAI, AIT, AIM, ARe, IR, AIS, AND API. Joseph and his wife, Eufemia, have 5 children, Lattoya, 22, Dylan, 16, Megan, 14, Ryan, 12, and Jacquelyn, 7. When Joseph is not putting in long hours at the office, he enjoys fish-ing, travel, photography, and golf.

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BILL KLIETHERMES RETIRES

Thank You, Bill.

Mark McWethy, Bill Kliethermes, Roger Kaage Malcolm Rowland, Rick Terrones

The Kliethermes Family

Bill Kliethermes, Dwight Shore

Jim Mayzer, Bill Kliethermes, Craig Kliethermes

Bill Kliethermes, Joseph DeChatelets