This document provides an overview of starting an exclusive agency with Allstate. It discusses the requirements to become an agent such as education, licenses, and capital. It outlines the various ways agents can earn revenue including commissions, bonuses for growth and performance. Agents have support from Allstate including marketing materials, technology allowance, and education. Success is based on meeting production and policy growth targets over time.

1. Choose your own direction
Building a business as an Allstate Exclusive Agent
R27434-1

2. Building a Business As an
Allstate Exclusive Agent
The following overview highlights the R3001 Start-up Agency opportunity.* Agency
owners are independent contractors and are not employees of Allstate. Multiple factors
contribute to the success of an Allstate Agency. As such, individual results will vary. The
information in this overview is for the 2008 R3001 Start-up Agency opportunity. All
information, including bonus, revenue, compensation, and education information is
subject to change.
See the 2008 R3001 Exclusive Agency Agreement, the Exclusive Agency Independent
Contractor Manual, the Exclusive Agency Independent Contractor Reference Guide, the
Supplement for the R3001 Agreement, and the Allstate Agency Standards for full details.
* Excludes New York and New Jersey
2

3. Join an Industry Leader
ENJOY THE BENEFITS OF WORKING WITH ALLSTATE
Allstate provides you with support that is among the best in the industry
High brand-name recognition
A comprehensive education program
Unlimited money-making potential
Ownership of the economic interest in the book of business your agency writes
Agency Technology Allowance for Agency Choice Technology (ACT)
In-house claims organization with 24 x 7 service
A targeted direct-mailing program with hundreds of Allstate-approved marketing
materials designed to help you generate revenue for your agency
An exciting awards and recognition program that rewards you for achieving business
objectives established by Allstate
Support from Allstate’s field distribution leadership group
Potential to own multiple locations
3

4. Getting Started
WHAT YOU NEED TO SUCCEED AT ALLSTATE
Requirements
Available start-up capital to meet cash flow market requirement
P&C and Life/Health licenses
Financial Industry Regulatory Authority (FINRA) Series 6 license (and
Series 63 license if required by state law), which will need to be
obtained within a certain time after agency appointment
Characteristics
Proven track record of success
Self-motivated
Goal and success-oriented
Willing to take risks
Able to hire, develop, and manage staff
Possess an entrepreneurial spirit
Driven to succeed and make a lot of money
4

5. Navigating Your Business Options
DECIDE HOW TO RUN YOUR BUSINESS
Develop your business plan
Research market demographics
Conduct cash flow review
Find your location
Assist with identifying office location and get field distribution leadership approval
Negotiate your lease
Establish office set-up
5

6. Becoming an Exclusive Agent
BENEFITS OF REPRESENTING ALLSTATE
Support from an industry leader
Access to education, 24-hour customer service and dynamic recognition
programs
Attractive compensation package
WAYS TO EARN REVENUE
Property and Casualty (P&C) commissions
Allstate Financial commissions
Education Bonus
Agency Establishment Bonus
Agency Development Bonus I
Agency Development Bonus II
Agency Performance Profile Agency Bonus
6

7. Property and Casualty Commissions
P&C COMMISSIONS SCALE
* Excludes state exceptions
7

8. Allstate Financial Opportunity
TWO WAYS TO EARN ALLSTATE FINANCIAL REVENUE
Write life and financial products on your own (“Solo” business)
Partner with an Exclusive Financial Specialist (“Shared” business)
Allstate Financial enhanced commission scales are based on your
productivity – the more you write, the higher the commission scale
8

9. Comprehensive Education Program
ALLSTATE-PROVIDED EDUCATION TO HELP YOU GET AHEAD
Sign the Education Agreement
Complete Allstate-determined education program on Allstate’s products,
recommended sales techniques and processes
Program is approximately 5 weeks
Education is conducted regionally and at Allstate’s National Sales
Education Center (NSEC)
Receive Education Bonus
Successfully complete education program
$3,000 payable in first month of R3001 Agreement
9

10. Allstate Support
BRANDED RETAIL ENVIRONMENT (BRE)
Includes furniture, lighting, signage and sales displays to leverage the
strength of the Allstate brand in your agency
In order to receive a $3,000* non-cash award, you must participate in the
BRE Welcome Suite Plus Package program
YELLOW PAGES AND CO-OP
Yellow Pages: First year of advertising in the Yellow Pages will be paid by
Allstate (approximately $2,500)
Co-op: Receive up to 50% reimbursement for company-approved
advertising expenses per year (approximately $4,500)
* In the states of Illinois, Alaska, and Hawaii, the non-cash award is valued at a different amount
10

11. Allstate Support, Continued
EXECUTIVE ADVANTAGE
GIVE YOUR AGENCY AN EDGE
Your agency can earn a cash value based on agency performance
Funds used for goods and services aimed at fueling profitable growth
You can use these funds at the Executive Advantage Web page to buy goods and services
that can help:
Brand My Agency
Grow My Agency
Manage My Agency
Agency Choice Technology (ACT)
ACT: Provides you flexibility to lease/purchase technology (within Allstate’s
specifications) that meets your unique needs
You select the technology vendor for installation and support; you may use Verizon,
Allstate’s preferred vendor for ACT, or any vendor
Agency Technology Allowance can assist with the cost of your ACT
During your first year of agency affiliation, you will be given a base Agency Technology
Allowance of $1,750, which will be pro-rated based on your first month of affiliation
In subsequent years, your additional Agency Technology Allowance dollars will be based on
your agency’s policies in force (PIF)
11

12. Tier Structure
USE OF TIERS
Four tiers based on P&C performance in relation to your cash flow
Tier 1: at least 225% of your baseline cash flow
Tier 2: 150% to 224% of your baseline cash flow
Tier 3: 90% to 149% of your baseline cash flow
Tier 4: <90% of your baseline cash flow
Tiers are determined monthly
12

13. Agency Establishment Bonus
AGENCY ESTABLISHMENT BONUS
Bonus payout is based on your tier
Your tier will be based on your cumulative production in months 1 – 3
relative to your baseline cash flow for months 1 – 3
Tier 1: $10,000
Tier 2: $7,500
Tier 3: $5,000
Tier 4: $0
Agency Establishment Bonus will be paid in month 4 of affiliation
13

14. Validation Requirements
Validation Requirements
Two production requirements (one for Property & Casualty – P&C, and one for
Allstate Financial – AF) need to be achieved within the first 6 months of agency
affiliation
The P&C requirement is derived from your baseline cash flow
– The minimum P&C requirement is 90% of the baseline cash flow (Tier 3 level)
The Allstate Financial requirement is $5,000 or more in Allstate Financial
production credit
Additional validation will occur at month 12 of affiliation
The minimum P&C requirement is 90% of the baseline cash flow (Tier 3 level)
All validation requirements are conditions of the agency owner relationship. Failure to
meet the validation requirements will lead to termination of the Agency Agreement.
14

15. Agency Development Bonus I
Agency Development Bonus I (ADB I)
ADB I is eligible to be received/paid in months 2 – 37* of affiliation
Based on your tier for a given month, a bonus rate (see next slide) will be
applied to your current month’s net new P&C written premium to determine
a bonus
A bonus will be paid in the following month (if you qualify)
See next slide for bonus rates by tier and month
* ADB I will also be paid in months 38-49 for any month you achieve Tier 1 status during months 37-48; ADB I will also be paid in months
38-43 for any month you achieve Tier 2 status during months 37-42
15

16. Agency Development Bonus I, Continued
AGENCY DEVELOPMENT BONUS I (ADB I) SCHEDULE
16

17. Agency Development Bonus II
Agency Development Bonus II (ADB II)
ADB II is eligible to be received/paid in months 3 – 38* of affiliation
Based on your tier for a given month, a dollar amount (see next slide) will be
applied to your current month’s P&C net Policy in Force (PIF) growth over
prior month – special rules apply when PIF growth is negative
A bonus will be paid two months later (if you qualify)
See next slide for dollar amounts by tier and month
* ADB II will also be paid in months 39-50 for any month you achieve Tier 1 status during months 37-48; ADB II will also be paid in
months 39-44 for any month you achieve Tier 2 status during months 37-42
17

18. Agency Development Bonus II, Continued
AGENCY DEVELOPMENT BONUS II (ADB II) SCHEDULE
18

19. Agency Performance Profile Agency Bonus
AGENCY PERFORMANCE PROFILE AGENCY BONUS
Agency Bonus for agency owners with 36 months or less of affiliation is determined
by performance on the Agency Performance Profile measurement system
Calculated as a % of total P&C written premium
Annual bonus, with the bonus period running from January through December of calendar
year
Bonus is paid after the end of the calendar year
Agency Performance Profile measurement system for agency owners with 36 months
or less of affiliation who are eligible for Start-up Agency incentive compensation is
built on three independent measurement categories:
Retention
Policy growth over cash flow policy growth goal
Allstate Financial production credit
19

20. Revenue Summary for New Exclusive Agents
20

21. Receive Support from Allstate
TO HELP YOU MEET BUSINESS OBJECTIVES, YOU’LL HAVE SUPPORT
FROM FIELD DISTRIBUTION LEADERS
Support from a New Agency Consultant (NAC) for the first 18 months
Ongoing support from field distribution leaders, including scheduled Agency
Status Reviews at certain months
21

22. Awards and Recognition
AS AN EXCLUSIVE AGENT, YOU’LL HAVE THE OPPORTUNITY TO
QUALIFY FOR ALLSTATE’S EXCITING AWARDS AND RECOGNITION
EVENTS
Regional Champions Conference
Overnight event with spouse or guest
Chairman’s Conference
Company-wide conference trip with spouse or guest
Chairman’s Inner Circle
Add-on trip to Chairman’s Conference with spouse or guest
Leaders Forum
Business meeting for top agency owners to network, share a wealth of ideas and learn from
the “best of the best”
Short-term/local promotions may be available throughout the year
22

23. This overview is confidential and proprietary information which is the exclusive property of
Allstate Insurance Company and its affiliates, and subsidiaries, including Allstate Life
Insurance Company (the “Company”), and may not be disclosed to third parties, other than
outside advisors or as required by law, without first having obtained written permission from
Allstate Insurance Company.
Securities offered through Allstate Financial Services, LLC (LSA Securities in LA and PA).
Registered Broker-Dealer. Member FINRA, SIPC. Main Office: 2920 South 84th Street,
Lincoln, NE 68506. 877-525-5727.
Commission and bonus amounts are subject to change.
Allstate is an Equal Opportunity Company.
For more information, contact Allstate toll-free at 877-258-9012, or visit allstateagent.com.
©2008 Allstate Insurance Company. allstate.com
R27434-1