Frequently Asked Questions

1. Why Farmers?
2. Why the insurance industry?
3. Who makes a good candidate?
4. What are the benefits of owning a Farmers agency
5. What programs are available?
6. What products does Farmers offer?
7. What is an example of how much I can make in the first 18 months?
8. What are the start-up costs involved with the program?

Why Farmers?
The Farmers Insurance Group of Companies, a California based company founded in 1928, is the:

• 3rd largest Auto and Home insurer in America
• 5th largest Property and Casualty group in America
• 2nd largest Auto and Home insurer in California
• The largest commercial insurer in California

We have more than 30,000 agent District Managers and employees, and we're the 2nd largest company in our operating industry with over 17,000,000 policies in force.

Why the insurance industry?

• Insurance products are in demand
• Americans are aging - entering asset accumulation stage
• Product lines are expanding
• Tremendous income potential

Auto insurance - required by law and by lenders
Property insurance - required by lenders
Americans have more assets to build upon and protect
The average American purchases 7 life insurance policies
Americans are growing older and need Long Term Care
Businesses are being created at a record pace and need Business Insurance

The income potential in the insurance industry is unlimited and the start-up costs are extremely low. Our top agents consistently earn a quarter of a million dollars a year!

Who makes a good candidate?
When selecting agent candidates, we look for those individuals who are:

• Articulate
• Ethical and Honest
• Entrepreneurial
• Confident and Poised
• Independant
• Financially Stable
• College graduates or posses management experience
• Good drivers

What are the benefits of owning a Farmers agency?
A tremendous, fulfilling career opportunity exists for you if you desire the freedom of owning your own business, along with the true security of knowing that you are in complete control of your financial destiny.

• Farmers is a $2.4 Billion brand
• Farmers is a multi-line insurance company with over 47 different product types
• Independence: Ability to set your own goals and work schedule and on certain occasions, sell non-Farmers products
• Free Enterprise: Agency Ownership, virtually unlimited income potential
• Equity in the business through our Contract Value Program
• Stability: Recession proof business as most products are mandatory and in need
• Residual income: New business and Renewal commission
• Community stature
• Recognition: Acheivement clubs, Trips and Bonuses
• Satisfaction by helping others solve thier problems
• Family rights: Transfer the ownership of your agency to another family member

What programs are available?
Reserve Agent Program

• Option to maintain your current occupation
• Obtain your state insurance licenses: Life & Disability and Property & Casualty
• Training classes begin to teach you how to develop your business

Career Agent Program

• Financial assitance for the first 2 years: up to $30,000
• Attendance to a week long Corporate Career Seminar
• Advanced Business Planning
• Management Reports
• Continuing education
• Offer of benefits: Group Health, Life, Vision, Dental and Disability
• Ongoing training and district meetings
• Eligibility to attend acheivement clubs and conferences

What products does Farmers offer?

• Auto Insurance
• Towing and Roadside assistance
• Home Insurance
• Condo Insurance
• Renters Insurance
• Term Life Insurance
• Mortgage Protection
• Long Term Insurance

What is an example of how much I can make in the first 18 months?
This is an example to illustrate residual income and using auto insurance commissions only.

Consider every month for the next 18 months you sell 40 auto insurance policies at $50.00 commission each:

1. At the end of the first month you will earn $2,000 in New Business Commissions
2. At the 6th month your income will be about $4,000 ($2,000 in New Business Commissions plus $2,000 Renewal Commissions)
3. At the 12th month your income should be $6,000 ($2,000 in New Business Commissions and $4,000 from Renewal Commissions)
4. At the 18th month your income would reach about $8,000 ($2,000 in New Business Commissions and $6,000 from Renewal Commissions)

This growth will continue as long as you keep on writing 40 auto policies a month!

We refer to this as Policy In Force growth or PIF growth. The average auto policy will earn about $100.00 a year in commission, if after 4 years you have accumulated about 800 auto insured in your agency you will earn $80,000 from Auto Renewal Commisions alone.

*This example is only illustrating auto insurance, but in fact it is duplicated in all lines of insurance we sell.

What are the start-up costs involved with the program?
Initial investment expenses you can expect for reserve agents