ACB Recruiting Presentation 07272009

Nationwide® Agency Capital Builder (ACB)
Employee Agent Program
Nationwide Insurance 2009

CONFIDENTIAL AND PROPRIETARY 1
MIC-1905 (1/09) ©2009 Nationwide Mutual Insurance Company. All Rights Reserved. Proprietary and Confidential.
See the AAE employment agreement for the specific terms and conditions that apply to you. This presentation is not binding on either party.

Why Nationwide®?
• Industry Leader
– Ranked #108 on the 2008 Fortune 500 list
– 4th largest homeowner insurer and 6th largest auto insurer based on premiums written1
– 6th largest total property and casualty insurer
– Nationwide Agribusiness largest farm insurer based on premiums written2
– Multi-line company with wide array of products and services
• Stability
– In business since 19253 – more than 80 years
– More than 16 million policies in force
– $157 billion in statutory assets
– 36,000+ Nationwide employees
• Brand Recognition
– National On Your Side and Life Comes at You Fast Ad campaigns
• Community Giving
– Corporate sponsorship for variety of charitable causes, including Children's Hospital,
United Way and Disaster Relief
– Ongoing support for workplace giving and Nationwide associates volunteer network

1 Source: A.M. Best, 2005 Direct Written Premium (DWP)
2 Source: A.M. Best, 2007 Direct Written Premium (DWP)
3 Established as Ohio Farm Bureau in 1925, name changed to Nationwide in 1943

CONFIDENTIAL AND PROPRIETARY
MIC-1905 (1/09) ©2009 Nationwide Mutual Insurance Company. All Rights Reserved. Proprietary and Confidential. 2
See the AAE employment agreement for the specific terms and conditions that apply to you. This presentation is not binding on either party. 2

What does Nationwide value?
Nationwide’s Core and Performance Values and the behaviors that support them are
the cornerstone of our success

Core Values
We Value People We Act with Honesty and Integrity
• Takes time to develop productive relationships with others. • Acts w ith integrity, honesty and fairness.
• Makes others feel valued and respected. • Adheres to highly ethical standards of business
• Values the diversity of talents, skills and experience of conduct.
individual team members. • Takes actions that are consistent w ith w ords.
• Supports an individual’s personal and professional • Speaks up constructively w hen s/he f eels something is
development. not right.
• Demonstrates an appreciation for balance between We Trust and Respect Each Other
peoples’ work and personal lives. • Inspires trust through his/her actions.
We Are Customer Focused • Treats others w ith respect.
• Anticipates, understands and acts on clear customer • Listens to others for understanding.
needs. • Talks directly to an individual w hen there is a concern or
• Is flexible and innovative in achieving results for problem.
customers. • Maintains confidentiality.
• Seeks and responds to customer feedback. • Respects, encourages and values others' points of
• Focuses on new and better ways to create value for the view .
customer (ease, access, customization).


What does Nationwide value?
Performance Values
We Have a Bias for Action and a Passion for Results We Work as One Team
• Show s initiative to solve problems and improve, • Acts for the benefit of the company regardless of
advance or enhance the business. business unit or self-interest.
• Anticipates situations and initiates action. • Promotes teamw ork among groups; discourages
“w e vs. they” thinking.
• Establishes specific strategies and objectives to
• Involves others in decisions and plans that affect them.
achieve results and meet goals.
• Listens to input from teammates to reach the
• Displays a sense of urgency in creating results. best solution.
We Act Accountably • Supports team decisions in w ords and deeds.
• Accepts personal responsibility for his/her actions, and • Asks for and offers support freely.
those of the team. We Have Fun
• Displays a “can-do” attitude and commitment to success. • Acknow ledges and celebrates success.
• Has fun along the w ay and encourages others to do the
• Focuses on finding solutions w hen faced w ith problems.
same.
• Leads an accountable organization by example in • Maintains a healthy perspective in difficult situations.
w ords and deeds. • Creates enthusiasm for assignments and achieving
We Value Coaching and Feedback goals.
• Recognizes, rew ards and reinforces good performance.
• Coaches others by giving useful constructive feedback.
• Invests time and effort in the development and training
of others.
• Asks for feedback and coaching.


Agency Capital Builder: Types
• ACB, Scratch Metro
– $50,000 target annual compensation
– $50,000 target Capital Fund
– $15,000–$45,000 Successful Agent Bonus
– Nationwide provided location – multi-agent or single location

• ACB, Seed Metro
– $25,000 target Capital Fund*
– Nationwide provided location – single location

• ACB, Scratch or Seed Rural (less than 600 households per square mile)
– $15,000 target Capital Fund
– Nationwide provided location – single location

* If the seed book size in an ACB Metro is less than $1MM, the capital fund will be $50,000. If the book size is over $1MM, the
capital fund will be $25,000.

Introduction to the ACB Agent Program:
Company Provided Assistance Overview (18–24 months):

• Work from a Nationwide-branded storefront location and Nationwide covers the cost of the lease,
utilities/maintenance, technology, office supplies and a sales support position (as necessary)
• Base compensation with the opportunity to earn variable compensation (overtime eligible during
first 3 months training phase–variable compensation paid based on your personal performance
and pre-determined payout rate)
• Thorough step-by-step training and development program to prepare you for selling, managing and
running a Nationwide insurance agency
• Marketing support including direct mail support, lead generation tools and allocation of funds for
local marketing expenses
• Company-provided BlackBerry for business use and agent-specific toll-free number
• Travel expenses associated with training and development classes
• Benefits credit of $276 a month ($3,600 annually) will be provided and may be used toward
personal insurance needs or required Errors & Omissions coverage (benefits coverage does not
begin until after the first 30 days of continuous service)
• ACB agent will receive company-paid time off of 5 days per calendar year and all company-paid
holidays
• Opportunity to access additional capital 1 of up to $95,000 based on months in the program and
eligibility to transition to an available agent program (Capital Fund/Successful Agency Bonus)

1
PLEASE NOTE: These additional capital opportunities are based on successf ul completion of the ACB contract and acceptance into a
subsequent successor program as approv ed by Nationwide and the Regional Vice President.

Agency Capital Builder: Why You?
Employment Requirements Preferences

• Capital: Minimum $10,000 liquid capital and positive • Work Experience: 3–5 years experience; preferably in
net worth the insurance, financial, retail, banking or sales industry
• Licenses: Active and valid Property, Casualty, Life and • Licenses: Variable product registration
Health licenses • Technical: Proficient in PC Windows and Microsoft
• Background Check: Satisfactory results of background Office
assessment using consumer reports designated by • Education: Bachelor's degree in Insurance, Business,
Nationwide Finance, Marketing or related discipline preferred
• Pre-employment Drug Screen: Negative drug screen for • Know ledge: Demonstrated knowledge and success in
controlled substances within 48 hours of receiving a Sales. Understand basic small business processes and
verbal employment offer administration
• United States Employment Eligibility: Satisfactory proof • Skills: Organizational, administrative, interpersonal,
of eligibility to work in the United States leadership, marketing, selling and relationship skills
• Testing: Caliper
• Approv al: Regional Vice President approval
Expectations
Competencies • Hours; expected to work evenings and weekends
• Overnight travel will be required for training and
• Customer Focus development
• Creativity • Active prospecting; building a Nationwide portfolio of
• Innovative business (can’t rely solely or primarily on foot traffic)
• Interpersonal Savvy • Ability to access additional capital upon successful
completion of the ACB employee agent agreement in
• Drive for Results
order to meet financial and fiduciary requirements of a
• Business Acumen successor program
• Entrepreneurial Spirit


Introduction to the ACB agent program:
Step 1:
Mutual Selection Process –
Is this right for both of us?

Step 2:
ACB Agent Trainee
On-boarding and Initial training

Step 3:
ACB Agent
Agency and operations development


What Should You Expect?
Step Detail Forms
Initial Interview Process •Initial Interv iew with Human Resources or Agency •Conf identiality and Non-Disclosure Agreement
Dev elopment Sales Manager/Sales Manager (ADSM/SM)
Background •Sign Background Inv estigation f orm and complete •Signed Background Inv estigation Form
Investigation Background Inv estigation online •Personal Financial Statement Template
•Personal Financial Statement (to be turned in at •Variable License U4 Prescreen Form (if applicable)
Meeting with Senior Field Sales Management)
In-Depth Interview •Meet with ADSM/SM •Pre-Employ ment Forms including: Pre-employ ment drug
•Sign Pre-Employ ment Forms screening notice, consent to conduct background search,
Fair Credit Reporting Act Notice and certif ication that
inf ormation on application is correct
Aptitude Test Assessment •Complete Aptitude Test Assessment •A link to the Caliper testing site will be sent to perf orm the
test
Job Preview/Agent •Visit selected Nationwide Agency •Job Prev iew Form
Office Visit •Work with ADSM/SM in making cold calls to obtain 50
personal line leads and 25 business leads
•Licensing Requirement Discussion with ADSM/SM
Meeting with Senior •Candidate prov ides ADSM/SM with completed •Completed Personal Financial Statement demonstrating a
Field Sales Leadership Personal Financial Statement prior to meeting with positiv e net worth and liquid assets of a minimum of $10,000
Senior Field Sales Leadership
•Meet with Senior Field Sales Leadership
Conditional Offer/Draft •Pending approv al of candidate, candidate receiv es a •Draf t Conditional Of f er Packet – Recommend the ACB
Offer Packet conditional of f er packet and letter agent rev iew agreement terms prior to accepting the position
•Drug Screen must be completed within 48 hours and signing the agreement
•The agreement is non-negotiable
•Take drug test within 48 hours of v erbal of f er
Verification of Required •Field Sales v erif ies that candidate has obtained •Prov ide copy of current and v alid Property & Casualty
License required licenses license as well as Lif e & Health license
Final Employee/Agent •ADSM/SM meets with candidate to sign agreement •Sign f inal agreement – Receiv e the Training and
Agreement Signing Dev elopment Guide, scheduled into f irst ACB agent
workshop in Columbus, OH within f irst month of employ ment


Agency Capital Builder:
Compensation Overview
Total target compensation ($50,000) adjusted geographically to the market
ACB Agent Trainee Phase ACB Agent Post-Trainee Phase
(first 3 months) (4-24 months)
• Annual base salary ($30,000) adjusted • Annual base salary continues to be paid
geographically to the market (bi-weekly)
• Annual base salary is paid bi-weekly • No longer eligible for overtime1
• Taxes are withheld based on personal • Target annual variable compensation is an
income tax bracket additional $20,000 or more based on
• Eligible for overtime compensation during performance (Property & Casualty and Life Sales
the first 3 months of employment (1.5 x combined)
base hourly rate for hours over 40 in same • Variable compensation is earned monthly based
week) on personal Property & Casualty (P&C)
production (after first 3 months from production
date)
• *Receive commission on financial products sold
(based on type of product and company sold
through)
• *Brokerage products sold through Insurance
Intermediaries, Inc. (III)
– Subsidiary for general agency products
when Nationwide product is not available
– Entire network is not available
– Only able to access when products are not
provided by Nationwide
1
Except in CA where employ ee agents are still eligible to receiv e ov ertime
*Please note that not all products sold will count towards required objectives including brokerage business.

Variable Compensation Profile
Award Mechanics:
• Variable compensation is earned monthly after first 90 days from production effective date
• Variable compensation is paid monthly (approximately 60 day lag with first payment)
* Begin earning in month 4 of production
* Calculated in month 5
* Payment for month 4 earnings received in month 6
• Monthly award is calculated on the respective monthly net new policy sales, not program to date PIF
• Lesser of the two (% of 12MM DWP and PIF) determines the monthly award amount
% of 12MM DWP and PIF Plan*
< 50.0% 50.0 - 99.9% 100.0 - 125.0% > 125.0%

YEAR 1: Amount per
$0 $75 $85 $100
Monthly Net New Sales:

YEAR 2: Amount per
$0 $60 $70 $85
Monthly Net New Sales:
For example:
• % of 12MM DWP is 60% ($75) and % of PIF Plan is 110% ($85)
• Monthly net new sales is 13 in month 4
• Lower of the two is $75
• $75 x 13 = $975 variable compensation payment earned in month 4

* These numbers are example purposes. Actual monthly bonus compensation profile may differ.

Capitalization
Month Plan is Bonus Paid Bonus Paid
• Successful Agency Bonus: completed (ACB Metro) (ACB Rural)
– After you transition to a program IC model, a
successful agent bonus will be paid 18 $45,000 $30,000
– Paid upon the signing of the successor 19 $40,000 $26,500
agreement
20 $35,000 $23,200
– One lump sum payment
– Issued 45–60 days after IC contract 21 $30,000 $19,900
is signed 22 $25,000 $16,600
– Can be considered part of liquid 23 $20,000 $13,300
assets needed when transition to IC
24 $15,000 $10,000

• Capital Fund Program: * If the seed book size in an ACB Metro is
– A maximum of $50,000 (geographically adjusted) less than $1MM, the capital fund w ill be
$50,000. If the book size is ov er $1MM, the
• $50,000 ACB Scratch Metro
capital fund w ill be $25,000.
• $25,000 ACB Seed Metro*
• $15,000 ACB Scratch or Seed Rural
– One lump sum payment
– Issued 45–60 days after IC contract is signed
– Can be considered part of liquid assets needed when transition to IC


Awards and Recognition
The Awards and Recognition Program is a non-cash incentive program for agents based
on their performance

Presidents Conference
• Eligible based on Career Agent conference qualification criteria

Conference of Champions
• Eligible based on performance against plan
– Percentage Production Plan attainment requirement—greater than or equal to
130.0% Direct Written Premium (DWP), Policies in Force (PIF) and Life
Production Plan attainment
– All Program Agents must be in the position for nine months or longer in the
performance year to be eligible for conference attendance under this criteria


Expenses paid by Nationwide
• Location expenses:
– Location lease
– Utilities and phone
– BlackBerry and wireless card
– Office furniture, equipment and supplies
– Computer, printer, fax, copier and telephone system
– Other reasonable and necessary expenses approved by the company

• Additional expenses that may be covered or reimbursed:
– Travel, lodging and meal expenses while traveling for required training and
development classes
– Licenses renewal or registration expenses
– Annual dues for professional affiliation
– Other appropriate business-related expenses as approved by manager

ACB must return laptop to Nationwide upon termination of the ACB contract or transition to independent
contractor program. All expenses from BlackBerry and wireless card will be agent’s responsibility if transition
to IC program.


Training & Development
• Initial training class:
– 10 days long including Saturday* Morning from 8AM to Noon (requires a weekend stay at
the Nationwide Sales Training Center in Columbus, Ohio)
– Needs to be scheduled the first few weeks of employment
– Includes in-depth education on:
• Products
• Sales and service
– Sales ideas
– Customer Experience
– Selling skills workshop
– Prospecting
– Actual cold calls (Commercial leads only)
• Underwriting and systems
• Agency planning and administration

• Continuing education/training
– Additional training courses need to be completed in order to satisfy the training
requirements outlined in the contract
– The training and development grid is a guideline or recommendation of when these
courses should be completed. However, you can attend training earlier with your
region’s approval.

*All time over 40 hours in the first 3 months is eligible for overtime pay including time in training.


Month 1 Month 2 Month 3 Month 4
Training and Business Training and Business Training and Business Training and Business
Dev elopment Dev elopment Dev elopment Dev elopment
Principal Agent Workshop (2 weeks) •Attend Webinar 1 •Attend Webinar 2 •Attend Webinar 3
•Product, Sales (CEI) and Systems •Dev elop Serv ice Center/ •Dev elop relationship and of f ice
–Explain Features/benefits of Auto, Underwriter relationship claims processes with Claims
Property, Life and Commercial Marketing and
(Business Auto/Businessowners) Prospecting Activ ities partners
–Use 4-Step sales process (5 Moments Marketing and •Continue Prospecting and
of Truth) and CEI POS worksheet to Marketing and
prepare a proposal Prospecting Activ ities Marketing Processes with ADSM
–Offer or quote multiple products based •Continue Prospecting and Prospecting Activ ities
on the need Marketing activ ities with ADSM •Continue Prospecting and
–Correctly prepare and release a quote on
Sales Activ ities
Marketing activ ities
appropriate system •Continue Sales Activ ities
•Agency Management Sales Activ ities with ADSM
–Understand Business and Marketing Plans •Continue Sales Activ ities Sales Activ ities
–Use the tools found within the Proforma to with ADSM •Continue Sales Activ ities
perform “what if scenarios related to
agency activities.
–Agency reports and what they represent Quarterly Progress Assessment
–Staffing the agency
–Agency operations

Marketing and
Prospecting Activ ities
•Implement Prospecting and
Marketing Processes with ADSM

Sales Activ ities
•Implement Sales Activ ities
with ADSM


Agency Capital Builder: Training & Development
Training and Business Development Training and Business Development Training and Business Training and Business
•Attend Webinar 4 •Attend Webinar 5 Development Development
• Eastern/PCIO/Western Commercial •Attend Webinar 6 •Ongoing with ADSM
Workshop (4–5 days depending on Region) Marketing and Prospecting Activities
–Priority One Commercial Sales Process •Continue Prospecting and Marketing activities Marketing and Prospecting Marketing and Prospecting
–Business-owners Eligibility and Features and Benefits with ADSM Activities Activities
–Commercial Package Policy Eligibility and Features •Continue Prospecting and •Continue Prospecting and Marketing
and Benefits Sales Activities Marketing activities activities
–Business Auto Eligibility, Classification, Features
•Continue Sales Activities with ADSM
and Benefits Sales Activities Sales Activities
–Artisan Contractors Eligibility and Features and Benefits •Continue Sales Activities •Continue Sales Activities
(NI Commercial only)
–Resource Navigation
Quarterly Progress Quarterly Progress Assessment
–Policy Servicing
Assessment
Marketing and Prospecting Activities
•Continue Prospecting and
Marketing Activities

Sales Activities
•Continue Sales Activities

Training and Business Development Training and Business Development Training and Business Training and Business
•Ongoing with ADSM •Basic Life Workshop (3 days) Development Development
–Analyze client needs •Ongoing with ADSM •Ongoing with ADSM
Marketing and Prospecting Activities –Present recommendations and make
•Continue Prospecting and the sale Marketing and Prospecting Marketing and Prospecting
Marketing Activities –Learn features and benefits of Term, Activities Activities
Whole Life and Universal Life product •Continue Prospecting and •Continue Prospecting and Marketing
Sales Activities
–Supporting Systems Marketing activities activities
Marketing and Prospecting Activities Sales Activities Sales Activities
•Continue Prospecting and Marketing activities •Continue Sales Activities •Continue Sales Activities
with ADSM

Sales Activities
•Continue Sales Activities with ADSM


Year 2—Agency Capital Builder Program
Training and Business Development Training and Business Development Training and Business Development Training and Business Development
•Ongoing with ADSM •Ongoing with ADSM •Ongoing with ADSM •Ongoing with ADSM
•Business Plan Training and •Business Plan Training and Development •Business Plan Training and •Business Plan Training and Development
Development Development
Marketing and Prospecting Activities Marketing and Prospecting Activities
Marketing and Prospecting •Continue Prospecting and Marketing and Prospecting •Continue Prospecting and
Activities Activities
Marketing Activities Marketing Activities
•Continue Prospecting and •Continue Prospecting and
Marketing Activities Sales Activities Marketing Activities Sales Activities
•Continue Sales Activities •Continue Sales Activities
Sales Activities Sales Activities
•Continue Sales Activities •Continue Sales Activities
Quarterly Progress Assessment
Quarterly Progress Assessment

Month 17 Month 18* Month 19* Month 20*
Training and Business Development Training and Business Development Training and Business Development Training and Business Development
•Ongoing with ADSM •Ongoing with ADSM •Ongoing with ADSM •Ongoing with ADSM
•Business Plan Training and •Business Plan Training and Development •Business Plan Training and •Business Plan Training and Development
Development •Advanced Principal Agent Workshop Development
–Under development Marketing and Prospecting Activities
Marketing and Prospecting Marketing and Prospecting •Continue Prospecting and
Activities •Plan for Phase II Office Activities Marketing Activities
•Continue Prospecting and •Begin analysis for agency site location •Continue Prospecting and
Marketing Activities and approval Marketing Activities Sales Activities
Sales Activities Marketing and Prospecting Activities Sales Activities
•Continue Sales Activities •Continue Prospecting and •Continue Sales Activities
Marketing Activities Quarterly Progress Assessment

Sales Activities Quarterly Progress Assessment


Marketing Support
• Receive Nationwide dedicated marketing support such as:
– National marketing direct mail
– National cable advertising
– National marketing campaigns

• Additional assistance with lead generation and prospecting tools

• Suggested marketing program to assist with achieving production goals

• Individual marketing fund to support individual marketing plans (plan must be in writing and
approved by Agency Development Sales Managers and Sales Managers and Regional Marketing
Director)

– Local marketing budget
• Supports business cards, newspaper ads, loyalty program, thank you notes

– Central marketing budget each year
• Required co-op program participation
• Marketing plan outlines recommended touch points
• Supports prospecting or lead generation direct mail and general advertising and
public relations
• Specific new agent marketing materials available to order from Marketing Storefront


Marketing Plan Components
PCIO-Initiated Activity

• Advertising (877ONYOURSIDE, Nationwide.com and Agency Locator Option)
• Mail (Agent(s), 877ONYOURSIDE, and Nationwide.com)
• Retail/Merchandising (Agent Level Marketing)

Agent-Initiated Activity Work with manager to
(All focus on driving traffic to Agent locations) establish sales process

• PCIO lead generation
• General advertising
• Public relations
• Prospecting (personal & commercial Lines)
• Community activation
• Centers of influence activation
• Agent lead generation & follow up
• Develop and market to affinity groups
• Existing client management activities


Additional Support
Access to dedicated market-specific support staff:

• Agency Development Sales Manager or Sales Manager (based on Regional staffing)

• Sales Support Staff:
– one Insurance Services Specialist hired per shared storefront location

• Technical Trainers

• Financial Services Specialists


Insurance Services Specialist (ISS)
• Position will support the ACB shared storefront locations and ACB agents
– Does not act as a primary sales person
– Must have active and valid property/casualty and life/health licenses
– Can cross-sell and up-sell policies when they are speaking to your policyholders
– Set-up as an associate producer number for each ACB agent so you will receive credit for
any production ISS writes under your producer number

• Will be a full-time traditional Nationwide employee
– Hired and Managed by ADSM/SM (you will not need to hire or supervise)


Performance Management
• You will have MBOs (Managed Business Objectives) for production requirements and
Nationwide values

• You will have monthly review sessions (regardless of performance) with managers and
quarterly review sessions with the regional leadership

• Your performance will be measured in four areas:
– Obtainment of monthly and cumulative performance objectives
– Achieving established MBOs
– Complying with reporting and tracking requirements
– Completion of training, development and marketing plans

• You must be on target for all required objectives each month
– Month one production requirements align with production effective month
– Any business written prior to production effective date will not count towards the
obtainment of your required objectives

• Performance management program is a monthly progressive policy that provides coaching,
administrative action, and possibly termination (if the coached deficiency is not corrected by
the Nationwide and program guidelines)1

• Performance management objectives at a regional level still apply

1
For details, please ref er to the ACB employ ee/agent agreement

Production Requirements
• We care about your success. You will work directly with your manager to assist you in meeting
three key performance measurements:
– Policies in Force (PIF)
– Direct Written Premium (DWP)
– Financial product sales (life sales)

• You will be managed to the PIF and 12 month-moving DWP requirements. Monthly net sales are
also provided for reference.
– Any seed portfolio is tracked separately and is not counted towards the agent’s
production requirements
– P&C production is measured on PIF at a total policy level (not specific to product
requirements)

• Life sales requirements are NOT cumulative through the program and must be met per
program year. Sales are tracked monthly until the total required number is achieved.

• Financial services production requirements can be met with fixed and variable products (if have
variable license). Life production requirements begin in month 4 and are based on paid and
delivered sales.

• DWP will be based on your market specific historical geographic average premium (which is
an average of all P&C product premiums) multiplied by the PIF requirement


Production Requirements
• Production requirements for Property & Casualty PIF and DWP will be provided for you at an
annual, quarterly and monthly level

• You will be managed to the planned to-date production

• Financial Services will be paid at Tier III (approximately 65%) commission on first year premium up
to target (and may be higher depending on personal results)

• There will be limited binding authority for the first 90 days of employment and business written
outside of the limited binding authority recommendation must have Sales Manager or Agency
Development Sales Manager approval prior to submission to the processing area

*agents who hold a variable registration and may be placed on the broker dealer (NSI) platform which administers
a different tier system and maintains a separate reporting environment


Minimum Production Requirements
Production Chart (total Policies in Force (PIF)): • Minimum PIF requirements are the same
for all ACB agents
ACB PRODUCTION REQUIREMENTS
• Measured against PIF
PIF
Yearly Production YR1 YR2 • New Sales are shown as guidelines to help
PIF PIF get to required PIF
Total New 179 240 • If retention slips, recommended new sales
will need to increase to achieve required PIF
Total IF (Policies) 171 368
New Life Sales 9 18 • Lower retention requires higher monthly
new sales

Monthly New Sales (Follows Exhibit B of ACB Contract)
Production Month 1 2 3 4 5 6 7 8 9 10 11 12 Total New Sales Total PIF
Net New Policies 3 9 9 11 14 17 18 19 19 20 20 20 179
Total PIF 3 12 21 32 46 63 81 99 117 134 152 171 171
New Life Sales 0 0 0 1 1 1 1 1 1 1 1 1 9

Net New Policies 20 20 20 20 20 20 20 20 20 20 20 20 240
Total PIF 189 207 226 244 261 278 294 309 325 340 354 368 368
New Life Sales 2 1 2 1 2 1 2 1 2 1 2 1 18

TOTAL PIF REQUIRED
368
FOR COMPLETION


• Life sales requirements are NOT cumulative
• For example, if you sell 25 in the first year when the requirement is only 9, you have an excess of
16 life sales
• You still need to have at least 18 life sales the following year to meet minimum
life sales requirement

Monthly New Sales (Follows Exhibit B of ACB Contract)
Net New Policies 3 9 9 11 14 17 18 19 19 20 20 20 179
Total PIF 3 12 21 32 46 63 81 99 117 134 152 171 171
New Life Sales 0 0 0 1 1 1 1 1 1 1 1 1 9

Net New Policies 20 20 20 20 20 20 20 20 20 20 20 20 240
Total PIF 189 207 226 244 261 278 294 309 325 340 354 368 368
New Life Sales 2 1 2 1 2 1 2 1 2 1 2 1 18

TOTAL PIF REQUIRED
368
FOR COMPLETION


• Direct Written Premium (DWP) requirements are geographically set based on the most current
pricing of written business specific to that location’s county (first term average DWP for all lines
of business)
• May need to write more policies or change mix of business in order to hit required DWP
• DWP requirements will vary by ACB agent unless target market is in the same county

• Standard Auto assumes 1.6 vehicles per policy
• Non-Standard Auto assumes 1.4 vehicles per policy
ACB Minimum Production Requirements
DWP
YEARLY PRODUCTION YR1 YR2 Production Plan is for illustrative purposes only.
DWP DWP
TOTAL 12MM DWP $ 128,028 $ 330,576 The issued contract determines actual requirements.
Example of Minimum DWP Production Requirements

Production Month 1 2 3 4 5 6 7 8 9 10 11 12
Monthly DWP $ 2,192 $ 5,163 $ 5,163 $ 6,084 $ 9,114 $ 10,036 $ 12,088 $ 15,627 $ 15,628 $ 13,677 $ 16,628 $ 16,628
12MM DWP $ 2,192 $ 7,355 $ 12,518 $ 18,602 $ 27,716 $ 37,752 $ 49,840 $ 65,467 $ 81,095 $ 94,772 $ 111,400 $ 128,028

Production Month 13 14 15 16 17 18 19 20 21 22 23 24
Monthly DWP $ 18,645 $ 18,274 $ 18,273 $ 18,283 $ 16,927 $ 16,936 $ 16,707 $ 16,046 $ 16,046 $ 16,321 $ 15,045 $ 15,045
12MM DWP $ 146,673 $ 164,947 $ 183,220 $ 201,503 $ 218,430 $ 235,366 $ 252,073 $ 268,119 $ 284,165 $ 300,486 $ 315,531 $ 330,576


Transition Requirements
• To complete the Agency Capital Builder agreement, you must achieve:
– 100% of your total DWP plan AND
– 95% of your PIF plan AND
– 100% of your financial objective (life sales) AND
– Meet all training and development requirements AND
– Meet all financial and fiduciary requirements and meet regional profitability target
– Can transition from program after 18 months if all the above is met

• Have a “Meets” or “Exceeds” performance evaluation based on your MBOs

• Have final written approval from the Regional Vice President, Sales Associate Vice President
and Agency Development Sales Manager or Sales Manager

• Upon successful completion of the ACB employee/agent program and approval to enter an
available successor program, you will become an Independent Contractor Program Agent


Employee/Agent Summary
Recap of the Agency Capital Builder Employee/Agent program

• Earn a base salary and the opportunity to earn variable compensation. Total target
compensation is $50,000, geographically adjusted

• Receive a monthly benefits credit of $276 (total benefits credit is $3,600 annually)

• Work from a location that is paid for by the company

• Be an employee for up to 24 months

• Receive dedicated market specific support

• Attend training and education classes designed to aid in success

• Have support from an Insurance Services Specialist working at the location

• Ability to earn additional capital opportunities based on successful completion of the ACB
agreement and acceptance into a subsequent successor program as approved by
Nationwide and the Regional Vice President

• Learn valuable skills to assist in becoming an Insurance Professional


Cash Flow Features
Additional Candidate Provided Capital:

It’s important to remember that you will need to have
access to additional capital beyond the initial AAE
requirement.

What is provided by Nationwide to assist with the
cash flow of the agency will vary by program and by
the details of your business plan.

Additional capital will be needed for some programs to assist in smoothing out your cash flow
The additional capital amount will vary by program, geography and if there is a seed portfolio
The details of the agency business plan will impact the total additional capital needed


ACB Recruiting Presentation 07272009

More Related Content

What's hot

Viewers also liked

Similar to ACB Recruiting Presentation 07272009

ACB Recruiting Presentation 07272009