ACB Recruiting Presentation 07272009

CONFIDENTIAL AND PROPRIETARY 1MIC-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.

Nationwide Insurance 2009

Nationwide® Agency Capital Builder (ACB)

Employee Agent Program

CONFIDENTIAL AND PROPRIETARY2MIC-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. 2

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



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

the cornerstone of our success

We Value People

• Takes time to develop productive relationships with others.

• Makes others feel valued and respected.

• Values the diversity of talents, skil ls and experience ofindividual team members.

• Supports an individual’s personal and professionaldevelopment.

• Demonstrates an appreciation for balance betweenpeoples’ work and personal l ives.

We Are Customer Focused

• Antic ipates, understands and acts on clear customerneeds.

• Is flexible and innovative in achieving results forcustomers.

• Seeks and responds to customer feedback.

• Focuses on new and better ways to create value for thecustomer (ease, access, customization).

We Act with Honesty and Integrity

• Acts w ith integrity, honesty and fairness.

• Adheres to highly ethical standards of businessconduct.

• Takes actions that are consistent w ith w ords.

• Speaks up constructively w hen s/he feels something isnot right.

We Trust and Respect Each Other• Inspires trust through his/her actions.

• Treats others w ith respect.

• Listens to others for understanding.

• Talks directly to an individual w hen there is a concern or

problem.

• Maintains confidentiality.

• Respects, encourages and values others' points of

view .

Core Values



What does Nationwide value?

We Have a Bias for Action and a Passion for Results• Show s initiative to solve problems and improve,

advance or enhance the business.

• Anticipates situations and initiates action.

• Establishes specif ic strategies and objectives toachieve results and meet goals.

• Displays a sense of urgency in creating results.

We Act Accountably

• Accepts personal responsibility for his/her actions, andthose of the team.

• Displays a “can-do” attitude and commitment to success.

• Focuses on f inding solutions w hen faced w ith problems.

• Leads an accountable organization by example inw ords and deeds.

We Value Coaching and Feedback

• Recognizes, rew ards and reinforces good performance.

• Coaches others by giving useful constructive feedback.

• Invests time and effort in the development and trainingof others.

• Asks for feedback and coaching.

We Work as One Team• Acts for the benefit of the company regardless of

business unit or self-interest.• Promotes teamw ork among groups; discourages

“w e vs. they” thinking.• Involves others in decisions and plans that affect them.• Listens to input from teammates to reach the

best solution.• Supports team decisions in w ords and deeds.• Asks for and offers support freely.

We Have Fun• Acknow ledges and celebrates success.• Has fun along the w ay and encourages others to do the

same.• Maintains a healthy perspective in diff icult situations.• Creates enthusiasm for assignments and achieving

goals.

Performance Values



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

– $50,000 target annual compensation– $25,000 target Capital Fund*– $15,000–$45,000 Successful Agent Bonus– Nationwide provided location – single location

• ACB, Scratch or Seed Rural (less than 600 households per square mile)

– $40,000 target annual compensation– $15,000 target Capital Fund– $10,000–$30,000 Successful Agent Bonus– 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 duringfirst 3 months training phase–variable compensation paid based on your personal performanceand pre-determined payout rate)

• Thorough step-by-step training and development program to prepare you for selling, managing andrunning a Nationwide insurance agency

• Marketing support including direct mail support, lead generation tools and allocation of funds forlocal 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 notbegin 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-paidholidays

• Opportunity to access additional capital1 of up to $95,000 based on months in the program andeligibility to transition to an available agent program (Capital Fund/Successful Agency Bonus)

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



Agency Capital Builder: Why You?

• Capital: Minimum $10,000 liquid capital and positivenet worth

• Licenses: Active and valid Property, Casualty, Life andHealth licenses

• Background Check: Satisfactory results of backgroundassessment using consumer reports designated byNationwide

• Pre-employment Drug Screen: Negative drug screen forcontrolled substances within 48 hours of receiving averbal employment offer

• United States Employment Eligibility: Satisfactory proofof eligibil ity to work in the United States

• Testing: Caliper

• Approval: Regional Vice President approval

Competencies

• Customer Focus

• Creativity

• Innovative

• Interpersonal Savvy

• Drive for Results

• Business Acumen

• Entrepreneurial Spirit

• Work Experience: 3–5 years experience; preferably inthe insurance, financial, retail, banking or sales industry

• Licenses: Variable product registration

• Technical: Profic ient in PC Windows and MicrosoftOffice

• Education: Bachelor's degree in Insurance, Business,Finance, Marketing or related discipline preferred

• Knowledge: Demonstrated knowledge and success inSales. Understand basic small business processes andadministration

• Skills: Organizational, administrative, interpersonal,leadership, marketing, selling and relationship skills

Expectations

• Hours; expected to work evenings and weekends

• Overnight travel will be required for training anddevelopment

• Active prospecting; building a Nationwide portfolio ofbusiness (can’t rely solely or primarily on foot traffic)

• Ability to access additional capital upon successfulcompletion of the ACB employee agent agreement inorder to meet financial and fiduciary requirements of asuccessor program

Employment Requirements Preferences



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?

•Sign f inal agreement – Receiv e the Training andDev elopment Guide, scheduled into f irst ACB agentworkshop in Columbus, OH within f irst month of employ ment

•ADSM/SM meets with candidate to sign agreementFinal Employee/AgentAgreement Signing

•Prov ide copy of current and v alid Property & Casualtylicense as well as Lif e & Health license

•Field Sales v erif ies that candidate has obtainedrequired licenses

Verification of RequiredLicense

•Draf t Conditional Of f er Packet – Recommend the ACBagent rev iew agreement terms prior to accepting the positionand signing the agreement•The agreement is non-negotiable•Take drug test within 48 hours of v erbal of f er

•Pending approv al of candidate, candidate receiv es aconditional of f er packet and letter•Drug Screen must be completed within 48 hours

Conditional Offer/DraftOffer Packet

•Completed Personal Financial Statement demonstrating apositiv e net worth and liquid assets of a minimum of $10,000

•Candidate prov ides ADSM/SM with completedPersonal Financial Statement prior to meeting withSenior Field Sales Leadership•Meet with Senior Field Sales Leadership

Meeting with SeniorField Sales Leadership

•Job Prev iew Form•Visit selected Nationwide Agency•Work with ADSM/SM in making cold calls to obtain 50personal line leads and 25 business leads•Licensing Requirement Discussion with ADSM/SM

Job Preview/AgentOffice Visit

•A link to the Caliper testing site will be sent to perf orm thetest

•Complete Aptitude Test AssessmentAptitude Test Assessment

•Pre-Employ ment Forms including: Pre-employ ment drugscreening notice, consent to conduct background search,Fair Credit Reporting Act Notice and certif ication thatinf ormation on application is correct

•Meet with ADSM/SM•Sign Pre-Employ ment Forms

In-Depth Interview

•Signed Background Inv estigation Form•Personal Financial Statement Template•Variable License U4 Prescreen Form (if applicable)

•Sign Background Inv estigation f orm and completeBackground Inv estigation online•Personal Financial Statement (to be turned in atMeeting with Senior Field Sales Management)

BackgroundInvestigation

•Conf identiality and Non-Disclosure Agreement•Initial Interv iew with Human Resources or AgencyDev elopment Sales Manager/Sales Manager (ADSM/SM)

Initial Interview Process

FormsDetailStep



Agency Capital Builder:

Compensation OverviewTotal target compensation ($50,000) adjusted geographically to the market

• Annual base salary ($30,000) adjustedgeographically to the market

• Annual base salary is paid bi-weekly

• Taxes are withheld based on personalincome tax bracket

• Eligible for overtime compensation duringthe first 3 months of employment (1.5 xbase hourly rate for hours over 40 in sameweek)

ACB Agent Trainee Phase (first 3 months)

ACB Agent Post-Trainee Phase(4-24 months)

• Annual base salary continues to be paid(bi-weekly)

• No longer eligible for overtime1

• Target annual variable compensation is anadditional $20,000 or more based onperformance (Property & Casualty and Life Salescombined)

• Variable compensation is earned monthly basedon personal Property & Casualty (P&C)production (after first 3 months from productiondate)

• *Receive commission on financial products sold(based on type of product and company soldthrough)

• *Brokerage products sold through InsuranceIntermediaries, Inc. (III)

– Subsidiary for general agency productswhen Nationwide product is not available

– Entire network is not available

– Only able to access when products are notprovided 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 ProfileAward 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

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

< 50.0% 50.0 - 99.9% 100.0 - 125.0% > 125.0%

YEAR 1: Amount per

Monthly Net New Sales:$0 $75 $85 $100

YEAR 2: Amount per

Monthly Net New Sales:$0 $60 $70 $85

% of 12MM DWP and PIF Plan*

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




Capitalization

$15,000

$20,000

$25,000

$30,000

$35,000

$40,000

$45,000

Bonus Paid

(ACB Metro)

$10,00024

$13,30023

$16,60022

$19,90021

$23,20020

$26,50019

$30,00018

Bonus Paid

(ACB Rural)

Month Plan iscompleted• Successful Agency Bonus:

– After you transition to a program IC model, asuccessful agent bonus will be paid

– Paid upon the signing of the successoragreement

– 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

• Capital Fund Program:

– A maximum of $50,000 (geographically adjusted)

• $50,000 ACB Scratch Metro

• $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

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




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 anddevelopment 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 independentcontractor program. All expenses from BlackBerry and wireless card will be agent’s responsibility if transitionto IC program.




Training & Development• Initial training class:

– 10 days long including Saturday* Morning from 8AM to Noon (requires a weekend stay atthe 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 yourregion’s approval.

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




Training & DevelopmentMonth 4

Training and BusinessDevelopment

•Attend Webinar 3

•Dev elop relationship and of f ice claims processes with Claims partners

Marketing andProspecting Activ ities

•Continue Prospecting and Marketing activ ities

Sales Activ ities

•Continue Sales Activ ities

Quarterly Progress Assessment

Month 3


•Attend Webinar 2


•Continue Prospecting and Marketing Processes with ADSM

Sales Activ ities

•Continue Sales Activ ities with ADSM

Month 2


•Attend Webinar 1

•Dev elop Serv ice Center/ Underwriter relationship


•Continue Prospecting and Marketing activ ities with ADSM

Sales Activ ities

•Continue Sales Activ ities with ADSM

Month 1

Training and BusinessDevelopmentPrincipal Agent Workshop (2 weeks)

•Product, Sales (CEI) and Systems

–Explain Features/benefits of Auto, Property, Life and Commercial (Business Auto/Businessowners)

–Use 4-Step sales process (5 Moments of Truth) and CEI POS worksheet to prepare a proposal

–Offer or quote multiple products based on the need

–Correctly prepare and release a quote on appropriate system

•Agency Management

–Understand Business and Marketing Plans

–Use the tools found within the Proforma to perform “what if scenarios related to agency activities.

–Agency reports and what they represent

–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

Month 12


•Ongoing with ADSM

Marketing and ProspectingActivities

•Continue Prospecting and Marketingactivities

Sales Activities

•Continue Sales Activities

Month 11




•Continue Prospecting andMarketing activities

Sales Activities


Month 8




•Continue Prospecting and Marketingactivities

Sales Activities



Month 10

Training and Business Development

•Basic Life Workshop (3 days)

–Analyze client needs

–Present recommendations and make the sale

–Learn features and benefits of Term, Whole Life and Universal Life product

–Supporting Systems

Marketing and Prospecting Activities

•Continue Prospecting and Marketing activitieswith ADSM

Sales Activities

•Continue Sales Activities with ADSM

Month 9




•Continue Prospecting and Marketing Activities

Sales Activities


Month 7


•Attend Webinar 6


•Continue Prospecting andMarketing activities

Sales Activities


Quarterly ProgressAssessment

Month 6


•Attend Webinar 5


•Continue Prospecting and Marketing activitieswith ADSM

Sales Activities

•Continue Sales Activities with ADSM

Month 5


•Attend Webinar 4

• Eastern/PCIO/Western Commercial Workshop (4–5 days depending on Region)

–Priority One Commercial Sales Process

–Business-owners Eligibility and Features and Benefits

–Commercial Package Policy Eligibility and Features and Benefits

–Business Auto Eligibility, Classification, Features and Benefits

–Artisan Contractors Eligibility and Features and Benefits (NI Commercial only)

–Resource Navigation

–Policy Servicing



Sales Activities





Training & Development

Month 20*



•Business Plan Training and Development



Sales Activities



Month 19*



•Business Plan Training andDevelopment



Sales Activities



Month 16






Sales Activities



Month 18*




•Advanced Principal Agent Workshop

–Under development

•Plan for Phase II Office

•Begin analysis for agency site location and approval



Sales Activities


Month 17






Sales Activities


Month 15






Sales Activities


Month 14






Sales Activities


Month 13






Sales Activities



Year 2—Agency Capital Builder Program




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 andapproved by Agency Development Sales Managers and Sales Managers and Regional MarketingDirector)

– 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(All focus on driving traffic to Agent locations)

• 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

Work with manager toestablish sales process




Additional SupportAccess 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 forany 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 andNationwide values

• You will have monthly review sessions (regardless of performance) with managers andquarterly 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 bythe Nationwide and program guidelines)1

• Performance management objectives at a regional level still apply

1For 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 meetingthree 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 arealso provided for reference.

– Any seed portfolio is tracked separately and is not counted towards the agent’sproduction requirements

– P&C production is measured on PIF at a total policy level (not specific to productrequirements)

• Life sales requirements are NOT cumulative through the program and must be met perprogram 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 havevariable license). Life production requirements begin in month 4 and are based on paid anddelivered sales.

• DWP will be based on your market specific historical geographic average premium (which isan 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 upto target (and may be higher depending on personal results)

• There will be limited binding authority for the first 90 days of employment and business writtenoutside of the limited binding authority recommendation must have Sales Manager or AgencyDevelopment 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

• Minimum PIF requirements are the samefor all ACB agents

• Measured against PIF

• New Sales are shown as guidelines to helpget to required PIF

• If retention slips, recommended new saleswill need to increase to achieve required PIF

• Lower retention requires higher monthlynew sales

Production Chart (total Policies in Force (PIF)):

Yearly Production YR1 YR2

PIF PIF

Total New 179 240

Total IF (Policies) 171 368

New Life Sales 9 18

PIF

ACB PRODUCTION REQUIREMENTS

1 2 3 4 5 6 7 8 9 10 11 12 Total New Sales Total PIF

3 9 9 11 14 17 18 19 19 20 20 20 179

3 12 21 32 46 63 81 99 117 134 152 171 171

0 0 0 1 1 1 1 1 1 1 1 1 9


20 20 20 20 20 20 20 20 20 20 20 20 240

189 207 226 244 261 278 294 309 325 340 354 368 368

2 1 2 1 2 1 2 1 2 1 2 1 18

Monthly New Sales (Follows Exhibit B of ACB Contract)

Production Month

Net New Policies

Total PIF

New Life Sales

Production Month

Net New Policies

Total PIF

New Life Sales

TOTAL PIF REQUIRED

FOR COMPLETION368





• 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 of16 life sales

• You still need to have at least 18 life sales the following year to meet minimumlife sales requirement


3 9 9 11 14 17 18 19 19 20 20 20 179

3 12 21 32 46 63 81 99 117 134 152 171 171

0 0 0 1 1 1 1 1 1 1 1 1 9


20 20 20 20 20 20 20 20 20 20 20 20 240

189 207 226 244 261 278 294 309 325 340 354 368 368

2 1 2 1 2 1 2 1 2 1 2 1 18

Monthly New Sales (Follows Exhibit B of ACB Contract)

Production Month

Net New Policies

Total PIF

New Life Sales

Production Month

Net New Policies

Total PIF

New Life Sales

TOTAL PIF REQUIRED

FOR COMPLETION368





• Direct Written Premium (DWP) requirements are geographically set based on the most currentpricing of written business specific to that location’s county (first term average DWP for all linesof 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 policyACB Minimum Production Requirements

DWP

YEARLY PRODUCTION YR1 YR2

DWP DWP

TOTAL 12MM DWP 128,028$ 330,576$

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$

Production Plan is for illustrative purposes only.The issued contract determines actual requirements.




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 Presidentand Agency Development Sales Manager or Sales Manager

• Upon successful completion of the ACB employee/agent program and approval to enter anavailable 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 targetcompensation 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 ACBagreement and acceptance into a subsequent successor program as approved byNationwide and the Regional Vice President

• Learn valuable skills to assist in becoming an Insurance Professional




Cash Flow Features

Additional Candidate Provided Capital:

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

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.

ACB Recruiting Presentation 07272009

Documents

aae employment agreement

agency capital builder

regional vice president

prospecting continue prospecting

earn variable compensation

annual base salary

subsequent successor program

seed book size