NICB Headquarters 1111 E. Touhy Avenue, Suite 400 Des Plaines, IL 60018 800.447.6282

www.nicb.org NATIONAL INSURANCE CRIME BUREAU

• A Century of Partnership & Trust NATIONAL INSURANCE CRIME BUREAU 2012 ANNUAL REPORT A Century of Partnership & Trust

© 2013, National Insurance Crime Bureau NICB Headquarters 1111 E. Touhy Avenue, Suite 400 Des Plaines, IL 60018 800.447.6282

www.nicb.org

A Century of Partnership and Trust NATIONAL INSURANCE CRIME BUREAU

In honor of the National Insurance Crime Bureau’s (NICB) 100th anniversary, the 2012 edition of our annual report salutes our century of partnership and trust with NICB members, law enforcement agencies and the American public in preventing and combating insurance fraud and vehicle theft crimes. The publication features photographs from our anniversary celebration, as • A Century of Partnership & Trust NATIONAL INSURANCE CRIME BUREAU 2012 ANNUAL REPORT well as centennial year efforts to address our mission and provide continual A Century of Partnership & Trust return on your membership investment.

© 2013, National Insurance Crime Bureau 2 4 6 8 President’s Data Analytics: Investigations: Training: Letter: Making Light Years Standing Up to You Asked. a Difference Ahead the Storm We Delivered.

10 12 14 22 Legislative Public Membership Board of Advocacy: Awareness: Listing Governors Getting to Still Telling a the Point Great Story

24 25 26 29 Advisors to NICB Senior Financial Information the Board Leadership Statements Resources Team We’ve all heard the That’s how long it has been since the We were honored to not only host all of our Emergency Management Agency (FEMA) to participating members from the previous automobile with other Chicago-area insurers, Boston Insurance Company’s Fred Sauter employees at the event, but also many of our and other first responders in identifying total year. all of our results have been due to the saying: “What a was notified on a Monday morning in the current and former board members. vehicle losses and advising our members remarkable partnership and trust among the Another smart move you’ll read about was difference a year summer of 1912 that one of their insured and partners in the salvage industry about legions of experts worldwide dedicated to We also commemorated this corporate the charge our Government Affairs team led Chalmers automobiles had been stolen. flooded vehicles and potential towing fighting insurance fraud and vehicle theft makes.” milestone by publishing The National on Capitol Hill to help establish the Health Little did Sauter realize, but on that morning company billing abuses. We used our crimes. Insurance Crime Bureau: A Century Care Fraud Prevention Partnership, a first- he set in motion the foundation of what experience from 2005’s Hurricane Katrina of Partnership & Trust, a book that of-its-kind effort to address medical fraud For the National would become the NICB and the property- disaster to more effectively respond to For that, I join the NICB’s 360-plus stands as our testament to 100 years of across property-casualty, health care and casualty insurance industry’s unprecedented our members, law enforcement and the employees in thanking you for making a Insurance Crime accomplishment, innovation, vision and Medicare/Medicaid insurance programs at President’s Letter: response to vehicle theft and insurance fraud public in the days, weeks and months after difference and supporting our mission as success by our employees, members and the highest levels of the federal government. Bureau, our 1,100 crimes. Sandy by deploying our databases and we move forward in our second century of partners in detecting, deterring and stopping In its first year, this partnership offered an Making a members, and our investigative know-how to monitor and track service to the property-casualty insurance A century later, we’re still at it. And as you insurance crime. excellent start to breaking down previously the movement of thousands of vehicles industry, self-insured community and Difference partners in the will see in this edition of our annual report, existing silos among these entities and Yet we didn’t spend 2012 solely looking in and support these constituencies with our American public. we’re fighting crime better and smarter than addressing health care fraud’s crossover into law enforcement, the rearview mirror. True to proven form and expertise. at any time in our distinguished history. the property-casualty insurance market. We regulatory history, we aggressively charged ahead in We also made smart advancements in our look forward to many years of progress and The past year was obviously highlighted implementing and achieving our Integrated and legislative medical and health care fraud capabilities. success with this newly formed group. by the recognition of our centennial Business Plan’s goals and objectives. Spearheaded by the Data Analytics team, we communities, we can anniversary, culminating in a three-day Clearly, there was much more to celebrate For example, when Sandy slammed into enhanced the Aggregated Medical Database confidently say as we celebration in Chicago for NICB team at the NICB in 2012 than our centennial the East Coast in October, causing billions in 2012 and continued to aggregate medical Joseph H. Wehrle, Jr. members where we gathered for training anniversary. But whether we’re talking about look back at 2012: of dollars in property damage and vehicle data from more NICB member companies, President and Chief Executive Officer and educational workshops, service award 2012 or 1912, the fact remains that from losses, our Field Operations team was on thus supporting a 185 percent increase in “What a difference recognition programs and plenty of fun. the moment Fred Sauter shared a woodcut the spot instantly to support the Federal the number of MedAWARESM Alerts issued 100 years make.” imprint notice of that stolen Chalmers

2 3 Our current data analytics capabilities The AMD project also led to several commercial auto-personal property crimes are obviously light years ahead of the scheme-based Strategic Alerts that we and commercial arson. Our commercial information-sharing techniques used by our distributed to members to raise your team also produced a heavy equipment earliest predecessor organizations, not to awareness of questionable medical billing theft report in conjunction with the National mention the computerization capabilities practices, including the alleged misuse of Equipment Register and a cargo theft report we had in place at the NICB’s founding in chiropractic manipulative therapy billing in partnership with CargoNet. 1992. From woodcut prints, to typed 3” x codes, suspected overbilling of mechanical Finally, our vehicle team drove home 5” “alarm” cards, to teletype machines, to traction, and potential concurrent billing membership value by deploying mapping, our first computer systems that featured a of manual and dynamic therapies. Further, geographic analyses and cell phone whopping 8,000 bytes of memory, we have AMD-driven ForeCASTSM Reports posted analysis techniques to identify crime rings always used the best means available to on our members’ website in 2012 covered within complex data sets. For instance, provide our members and law enforcement such topics as epidural steroid and trigger by examining claims involving multiple agency partners with information and data to point injections. These reports have proven Data analytics: individuals and addresses, we identified fight insurance crime. so popular among NICB members that our 95 vehicle identification number (VIN) analysts began presenting them at regional In 2012, our Data Analytics Department switch leads in 2012 that led to 55 vehicle industry analytical meetings and via online Light Years focused its technological prowess in three recoveries. In another example, our analytics webinars. broad arenas: the Aggregated Medical expertise uncovered a counterfeit VIN ring Database (AMD), commercial insurance Our commercial insurance initiatives offered in which more than 30 luxury vehicles were Ahead initiatives and vehicle programs. members a completely new view of claims stolen and retitled with phony identifications; data. Unlike other NICB analyses that the resulting investigation has thus far Even a casual observer of the NICB’s Our medical analytics team expanded in the address questionable claim submissions, recovered 15 of those vehicles valued at past year to eight dedicated analysts who 21st century data analytics capabilities our commercial program reviews all property $1.2 million. create MedAWARE Alerts from specialized and liability claims submitted by members. would likely be amazed that our advanced data drawn from the AMD. While this In addition to an ongoing partnership with Using advanced technologies that include technologies and algorithms got their start database was only formally launched in 2011, CARFAX®, we also broadened our partnership mapping software and structured query its productivity quickly paid dividends for with online automotive history service 100 years ago with rudimentary woodcut- language programs designed to manage participating NICB members last year. For provider Experian® so that the NICB can imprinted bulletins of stolen vehicles. database relationships, we can now analyze example, we published 441 MedAWARE analyze vehicle registrations for potential greater volumes of commercial data sets than Alerts — up from 155 in 2011 — that counterfeiting, cloning and VIN switches. It’s true. They did. ever before and detect potential fraud from identified more than 650 clinics and 1,000 previously non-suspicious claims. medical providers at 1,200 locations in 33 states. Conservative estimates revealed that We produced nearly 60 commercial NICB member exposure to these potentially insurance-related Strategic Information fraudulent providers exceeded $190 million, Reports in 2012 that led to 25 case openings with major investigations resulting from this and 24 ForeWARNSM Alerts covering such information. topics as slip-and-fall schemes, repetitive damage claims, watercraft and boat theft,

S t a t i S t i c S Questionable Claim Submissions: 116,268 | MedAWARE Alerts Published: 441 | ForeWARN Alerts Published: 2,148 | ForeCAST Reports Published: 35

4 5 Something that hasn’t changed in the past inspections and identifications, the bulk of (HIN) database that positions the NICB to century is that insurance criminals will steal our integrated storm response focused on become the national repository of marine from anybody they can by pursuing schemes information sharing. A Field Operations/ equipment manufacturer data, including that offer the lowest risk and highest reward. Data Analytics team created a Sandy VIN confidential HINs. Similar to our long- Natural disasters offer them the potential database that allowed NICB members to standing vehicle manufacturer database, the for huge payoff opportunities while taking forward information about vehicles flooded new HIN database (which is also available on advantage from others’ tragedies. and damaged by the storm. We also worked Verisk Insurance Services Office, Inc.’s ISO with salvage companies and impound lot ClaimSearch®) allows our investigators and So when Sandy ravaged the East Coast in owners that handled the majority of the field analysts to more actively and robustly October 2012 with more than $75 billion in storm’s insured vehicle losses to monitor identify original owners of stolen boats and investigations: damages, we were ready for them. the movement of vehicles prior to disposal, other personal watercraft equipment.

Thanks to our long-standing relationship with thus helping NICB members avoid potentially Medical fraud continues to be a primary law enforcement agencies throughout New fraudulent claims payments. Our responses Standing Up focus of our agents nationwide. Among their York, New Jersey and Connecticut, NICB to this massive disaster demonstrated the 2012 accomplishments was supporting an investigators and field analysts immediately value of our databases, the progression and indictment brought by the Manhattan U.S. to the Storm began working after the storm with local efficiency of our investigative approaches, Attorney charging 36 defendants with a and state emergency response officials and and the extent of our law enforcement and scheme to defraud insurers of more than Investigators from the NICB and our FEMA to advise them on catastrophe fraud industry relationships. $279 million under New York’s no-fault indicators, flooded and salvage vehicle predecessor organizations have withstood Relationships also played a key role in the automobile insurance law. scams, towing company abuses, post- every storm vehicle thieves and insurance continued development of our specialized disaster contractor fraud and NICB resources The indictment includes racketeering charges equipment operations. In 2012, we scam artists have directed our way during available to support their efforts. against eight members and associates established a relationship with Caterpillar, Inc. the past 100 years. These criminals hope of a Russian crime syndicate who owned Building upon our experiences from that offers NICB investigators unprecedented and controlled fraudulent medical clinics, our field operations experts will be blown Louisiana’s Katrina and Rita hurricanes in access to various databases within this as well as 10 doctors and three attorneys. 2005, we held a briefing with the New York global equipment manufacturer. This access away by their sophistication and supposed Uncovered through a cooperative 18-month City Police Department’s Deputy Chief can help us more efficiently identify and ingenuity. investigation, this was the nation’s largest and his staff where we detailed our natural recover stolen Cat® equipment insured by single no-fault automobile insurance fraud disaster investigative techniques and brought members, thus helping you save on storage There’s not a chance we will. indictment ever charged — the first of its in a representative from the Louisiana State and impound lot fees, as well as fraudulent kind to allege violations of the Racketeer Police (now retired) to offer his disaster fraud claims payments. We also began providing Influenced and Corrupt Organizations Act. insight. We also met with New York’s Deputy training to law enforcement agencies Several of the defendants face a maximum Attorney General to provide investigative nationwide about Cat equipment. penalty of 70 years in prison if convicted on information about catastrophe-related towing Our relationships with the National Marine all counts. company billing abuses. Manufacturers Association and International While NICB special agents visited Sandy’s Association of Marine Investigators resulted affected communities to conduct vehicle in the creation of a hull identification number

S t a t i S t i c S NICB Agent Vehicle Recoveries/Estimated Value: 14,745/$57,638,845 | NICB Agent Specialized Equipment Recoveries/Estimated Value: 1,019/$16,259,207 NICB Agent Cargo Theft Property Recoveries/Estimated Value: 48/$3,015,993 | Member-Reported Loss Mitigation: $42,222,961 | Restitution Ordered: $26,701,520

6 7 A general trend we have documented is Online webcasts are another new training NICB fraud and theft indicators have been that after NICB experts provide training to approach we deployed in 2012 to address among our most popular training aids for member companies, your questionable claim specific issues of interest to NICB members, decades. In 2012, we responded to member referrals increase, but then eventually tail off including vehicle fraud, medical crimes, requests for indicators on several growing because other policyholder service priorities organized fraud conspiracies and VIN crime trends, including water mitigation take precedence. What we have learned tutorials. These pre-recorded webcasts offer fraud, contractor/public adjuster property over the years is that the best anti-fraud just-in-time training that your investigators repair fraud, and new types of scams training: training combines consistent messaging and claims representatives can access at involving vehicle fires. Our interactive fraud with a variety of teaching methods in order their convenience. indicator program also evolved into its third to smooth out these questionable claim version during the past year. Another continuing avenue for convenient You Asked. submission peaks and valleys. anti-fraud training is the National Insurance And finally, with insurance crime knowing Responding to member requests, we created Crime Training Academy (NICTA), our no geographic boundaries, we extended our We Delivered. several programs in 2012 that utilized new online training academy. In its 10th year of training know-how to several delegations of educational approaches. Our GeoSpecific operation, NICTA reached the 500,000 online crime fighters from Korea, South Africa and From the days when we provided J. Training Sessions deliver highly focused offering enrollment milestone in 2012, in Australia. What we learned in our meetings Edgar Hoover’s FBI agents with vehicle classroom education on pertinent regional addition to adding new courses on classic was that these insurers and investigators identification training, our educational crime issues — such as staged accidents car insurance fraud and contractor, vendor experience similar types of insurance crime and medical fraud — to all interested and provider fraud. as we do; however, their abilities to identify programs have always responded to the NICB members in those hot spots. The and stop sophisticated schemes are behind Integrated closely with NICB interdisciplinary needs of our members and law enforcement nine GeoSpecific sessions in 2012 not ours. Undoubtedly, the need to address fraud catastrophe fraud initiatives, our Training only provided valuable training to the 550 regardless of where it lurks continues to grow partners. Department published the Catastrophe Claim attendees, but also established a new forum in importance 100 years after our founding. Investigation Guide in 2012. Packed with for carriers to convene and share fraud- We’ve followed the same pattern for 100 comprehensive information and tips, this fighting information. We also continued years: You ask. We listen. We deliver. guide helps our members identify and avoid our tradition of offering classroom-based post-disaster scams, from the notice of loss medical, special investigations and analyst through a claim’s determination. training academies.

Member Students Trained in the FraudSmartSM Classroom/Number of Sessions: 12,551/500 | NICTA Online Offerings Taken: 76,175 | Value of Member Classroom and Online Training: $5,595,975 S t a t i S t i c S Law Enforcement Student Classroom Enrollment/Number of Sessions: 20,732/520 | Training and Job Aid Materials Distributed and Downloaded: 50,000 | Visitors to nicbtraining.org, the NICB’s Free Law Enforcement Training Website: 61,000 | Continuing Education Credits Processed by the NICB and NICTA: 12,817

8 9 Criminal conspiracies committing health care medical fraud, including phony and inflated with the NICB and state fraud bureaus. fraud have grown beyond their traditional automobile and workers’ compensation With immunity protection, we can support roots in the medical insurance industry. claims affecting NICB members. greater sharing of fraud-related data and They’ve now crossed over to property- information, which is a proven component of A key goal of the Health Care Fraud casualty markets and government health our collective crime-fighting arsenal. Prevention Partnership is to create insurance programs as well. In 2012, we information-sharing protocols among all While we were in Alabama, we also reached a turning point in our efforts to participants to uncover and stop health care successfully capped a multi-year effort to address these crimes. fraud. This will require tremendous flexibility pass an insurance fraud law in one of the legislative aDvocacy: Building upon the success of the U.S. by groups previously unaccustomed to three remaining states that did not define Department of Health and Human Services’ working together, but through the atmosphere insurance fraud as a criminal act. Our efforts (HHS) national and regional health care fraud of trust established during the partnership’s spanned several legislative sessions, but Getting to summits in recent years, the Government inaugural year, we are well on our way to together with our members, the perseverance Affairs Department continued to press establishing integrated approaches and paid off, leaving Oregon and Virginia as HHS to consider new solutions for growing solutions to medical fraud crimes. the final two states without this type of the Point medical fraud problems. Our point was legislation. Beyond Capitol Hill, critical legislative issues clear: We needed to break down the existing pointed our Government Affairs team to We also presented the 2012 Minnesota The NICB’s starting point 100 years ago silos from which various industries and locales nationwide. For example, our efforts Insurance Fraud Summit in partnership with government agencies combated these occurred when a pioneering group of to thwart personal injury protection (PIP) the Insurance Federation of Minnesota. crimes. insurers banded together to share vehicle fraud in states with no-fault automobile More than 200 attendees joined us to theft information. A century later, another The result was the formation of the Health insurance laws led us to New York, Florida, examine medical fraud and bodily injury innovative group convened to address Care Fraud Prevention Partnership, a New Jersey and Michigan to highlight the abuse schemes, contractor fraud and cooperative approach that will use proven impact of PIP reform on consumers. We also adjuster oversight problems, and the state’s health care fraud. information-sharing processes to address continued our push to promote and add need for greater prosecutorial resources medical fraud across property-casualty, dedicated fraud prosecutors in those states in combating fraud crimes. The summit’s And you just might be surprised to see who health care and Medicare/Medicaid insurance and successfully stopped an effort by the success positioned us to set an aggressive joined us in this team effort. programs. For the first time ever, this public- New York trial bar to pass legislation that legislative agenda supporting Minnesota anti- private partnership brings together top- would have given free rein to runners and fraud measures, resulting in our subsequent level executives from HHS, the Department cappers involved in staged accident crimes. testimony before the Minnesota Senate and of Justice, the property-casualty and an anti-fraud roundtable discussion with the In Michigan, Maryland and Alabama, we medical insurance industries, other fraud- state commerce commissioner. advocated for immunity protection for fighting organizations and the NICB to fight insurers who share questionable claims

S t a t i S t i c S Minnesota Insurance Fraud Summit Attendees: 206 | Minnesota Insurance Fraud Summit Recommendations: 16 | National Conference of State Legislatures Presentation Attendees: 65 HHS photo Chris Smith

10 11 In a year when several natural disasters struck the country we joined forces with the spread the anti-fraud messages even further. the United States, NICB communications Oklahoma Department of Insurance in a The NICB’s social media program is designed efforts integrated closely with our investigative public awareness initiative to throw cold to increase our ability to communicate, and analytics expertise to not only tell the water on contractor fraud schemes following interact and engage with members and the American public about fraud schemes, but widespread wildfires. Our joint campaign American public. In just a short time, our also provide consumers with information and included billboards and brochures alerting participation in this ever-growing platform has online resources to help them proactively consumers about these scams, how to report allowed us to share content on a much more Public awareness: avoid these crimes in the first place. suspected fraud to the NICB tipline, and what real-time level, both learn and express views, homeowners should look for when engaging leverage our expertise, as well as gain insight Soon after Sandy, our communications team with contractors for post-fire property from industry partners. Sandy-damaged flew into the disaster zone to capture video Still Telling a repairs. The Oklahoma and Sandy projects vehicles and fake slip-and-fall schemes were and photos of the widespread damage, then are indicative of our expanding efforts to some of the hot topics in 2012 on our social broadcast an online newscast on the NICB partner with consumer groups, trade industry networks. YouTube channel to alert the public on how Great Story associations and public agencies to promote they could avoid purchasing undeclared The Communications Department was anti-fraud messages. Reflecting on NICB public awareness flooded and reconditioned vehicles. This also honored to publish a commemorative messaging, you’ll recognize some of it video was recognized by the distinguished Our website continued its evolution in 100th anniversary book that chronicled the Telly Awards with a bronze award for online 2012 with even more tools designed to history and successes of the NICB and our hasn’t changed very much in the past broadcast information. protect the American public from insurance predecessor organizations. Eighteen months century: We all pay the price for insurance fraud criminals. New to the site were quick in the making, The National Insurance Crime Further, we partnered with the Insurance tip checklists covering salvage vehicle Bureau: A Century of Partnership & Trust fraud and vehicle theft...lock your doors Information Institute and the National fraud, towing scams and disaster fraud, celebrated the passion and commitment Consumers League to create TV and radio and pocket the keys...don’t be victimized as well as a forum for consumers to share that our members, employees and partners public service announcements to warn by fraud artists...the insurance industry is their experiences and success stories in law enforcement agencies worldwide consumers of Sandy’s flood-damaged using VINCheck, our website’s top-rated have demonstrated since 1912 to prevent, fighting back. vehicles that could possibly show up in their destination. Our efforts to continually make detect and deter insurance fraud and vehicle area. We’re still telling great stories about our NICB.org the resource for online insurance theft crimes. Copies were presented to collective efforts to fight fraud and theft. NICB post-Sandy public awareness efforts fraud and vehicle theft crimes information employees at our anniversary celebration and also included promoting the VINCheckSM earned us a 2012 WebAward for Outstanding distributed to NICB executive and operational What’s changing is how we tell them. database, which now includes more than Achievement in Web Development from the liaisons and our law enforcement partners in 250,000 damaged and totaled vehicles from Web Marketing Association. recognition of reaching this milestone. the storm, including 150,000 insured losses in Deploying our 21st century communications New York and 60,000 in New Jersey. technologies, we promoted these While the Eastern seaboard was awash advancements on NICB social media pages in Sandy damage, on the other side of and through social networking channels to

S t a t i S t i c S Media Hits: 18,126 | Ad Equivalent Value: $59,619,852 | YouTube Videos: 92 | YouTube Views: 338,000 | Facebook Followers: 4,407

12 13 Century Indemnity Company Allstate New Jersey Property and Casualty American Family Mutual Insurance Company Ameriprise Auto & Home Insurance Property-Owners Insurance Company Centennial Casualty Company Companion Property and Casualty Century Reinsurance Company Insurance Company American Standard Insurance Company Ameriprise Auto & Home Insurance Southern-Owners Insurance Company Insurance Company Combined Insurance Company of America Allstate North America Insurance Company of Ohio IDS Property Casualty Insurance Company Century-National Insurance Company Illinois Union Insurance Company Allstate Property and Casualty Insurance American Standard Insurance Company of Balboa Insurance Group Concord Group Insurance Companies Indemnity Insurance Company of Company Wisconsin Amica Mutual Group Balboa Insurance Company Chubb Group of Insurance Companies Concord General Mutual Insurance North America Allstate Texas Lloyd’s Amica Life Insurance Company Balboa Life Insurance Company Chubb Custom Insurance Company Company Insurance Company of North America American Heritage Life American Freedom Insurance Company Amica Lloyds of Texas Balboa Life Insurance Company of New York Chubb Indemnity Insurance Company Green Mountain Insurance Company, Inc. 2012 Pacific Employers Insurance Company Castle Key Indemnity Company Amica Mutual Insurance Company Balboa Lloyds Insurance Company Chubb Insurance Company of New Jersey State Mutual Insurance Company (ME) Westchester Fire Insurance Company Castle Key Insurance Company American General Holdings, Inc. Amica Property and Casualty Insurance Fleet Insurance Company Chubb Lloyds Insurance Company of Texas Sunapee Mutual Fire Insurance Company Active Westchester Surplus Lines Insurance Charter National Life Insurance Company Apollo Casualty Company of Florida Company General Fidelity Insurance Company Chubb National Insurance Company Vermont Accident Insurance Company, Inc. Company Deerbrook Insurance Company Apollo Casualty Insurance Company Meritplan Insurance Company Executive Risk Indemnity, Inc. Member Encompass Floridian Indemnity Company Delphi Casualty Company Anchor Insurance Holdings Group Newport Insurance Company Executive Risk Specialty Insurance Consumers Insurance USA, Inc. Alliance Insurance Companies Encompass Floridian Insurance Company Anchor General Insurance Company Company Groups Alliance Indemnity Company Encompass Home and Auto Insurance American Insurance Acquisition, Inc. Pacific Star Insurance Company Baldwin & Lyons Group Federal Insurance Company CorePointe Insurance Company Alliance Insurance Company, Inc. Company (AIAI) Protective Insurance Company Great Northern Insurance Company Farmers Alliance Mutual Insurance Company Encompass Indemnity Company American Country Insurance Company Arbella Insurance Group Sagamore Insurance Company Northwestern Pacific Indemnity Company Cornerstone National Insurance Company AAA Northern California, Nevada & Utah Encompass Independent Insurance American Service Insurance Company, Inc. Arbella Indemnity Insurance Company Pacific Indemnity Company Insurance Exchange Alliance United Insurance Company Company Arbella Mutual Insurance Company BCS Insurance Group Texas Pacific Indemnity Company COUNTRY Financial AAA Mid-Atlantic Insurance Company Encompass Insurance Company American Modern Insurance Group Arbella Protection Insurance Company, Inc. BCS Insurance Company Vigilant Insurance Company Cotton States Mutual Insurance Company AAA Mid-Atlantic Insurance Company of Allianz U.S. Group Encompass Insurance Company of America American Family Home Insurance Company Commonwealth Mutual Insurance Company BCS Life Insurance Company Country Casualty Insurance Company New Jersey AGCS Marine Insurance Company Encompass Insurance Company of American Modern Home Insurance Commonwealth Reinsurance Company Plans Liability Insurance Company Cincinnati Financial Corporation Country Mutual Insurance Company ACA Insurance Company Allianz Global Risks U.S. Insurance Massachusetts Company Covenant Insurance Company Cincinnati Casualty Company, The Country Preferred Insurance Company California State Automobile Association Company Encompass Insurance Company of New American Modern Insurance Company Berkshire Hathaway Insurance Group Cincinnati Indemnity Company, The Holyoke Mutual Insurance Company in Inter-Insurance Bureau Allianz Life Insurance Company of New York Jersey of Florida AssuranceAmerica Insurance Company Columbia Insurance Company Cincinnati Insurance Company, The Salem Keystone Insurance Company Allianz Life Insurance Company of Encompass Property and Casualty Company American Modern Lloyds Insurance GEICO Advantage Insurance Company Cincinnati Specialty Underwriter, The Middlesex Mutual Assurance Company Western United Insurance Company North America Encompass Property and Casualty Company Assurant Solutions GEICO Casualty Company Modern Service Insurance Company Allianz Underwriters Insurance Company Insurance Company of New Jersey American Modern Select Insurance American Bankers Insurance Company of GEICO Choice Insurance Company Citadel Insurance Company MSI Insurance Company AAA of the Carolinas American Automobile Insurance Company First Colonial Insurance Company Company Florida GEICO General Insurance Company Shield Insurance Company Members Insurance Company, The American Insurance Company Intramerica Life Insurance Company American Modern Surplus Lines Insurance American Reliable Insurance Company GEICO Indemnity Company Citizens Property Insurance Corporation Universal Insurance Company (NC) American Standard Lloyd’s Insurance Lincoln Benefit Life Company Company American Security Insurance Company GEICO Secure Insurance Company Country-Wide Insurance Company Company North Light Specialty Insurance Company American Southern Home Insurance Caribbean American Property Insurance Government Employees Insurance Company Civil Service Employees Group ACCC Insurance Company Associated Indemnity Corporation (North Light) Company Company National Fire & Marine Insurance Company Civil Service Employees Insurance Company Crusader Insurance Company Chicago Insurance Company Northbrook Indemnity Company American Western Home Insurance Financial Insurance Exchange National Indemnity Company CSE Safeguard Insurance Company Access Insurance Company Euler American Credit Indemnity Company Surety Life Insurance Company Company Reliable Lloyds Insurance Company National Indemnity Company of Mid-America CUNA Mutual Group Fireman’s Fund County Mutual Insurance First Marine Insurance Company Voyager Indemnity Insurance Company National Indemnity Company of the South CNA Insurance Companies CUMIS Insurance Society, Inc. Accident Fund Group Company Ally Insurance Holdings, Inc. Voyager Property and Casualty Insurance National Liability & Fire Insurance Company American Casualty Company of Reading, Accident Fund General Insurance Company Fireman’s Fund Indemnity Corporation CIM Insurance Corporation American National P&C Group Company Seaworthy Insurance Company Pennsylvania CURE Auto Insurance Accident Fund Insurance Company Fireman’s Fund Insurance Company MIC Property and Casualty Insurance American National County Mutual Insurance Columbia Casualty Company of America Fireman’s Fund Insurance Company of Corporation Company Auto Club Group – Michigan Brethren Mutual Insurance Company, The Continental Casualty Company DHC Group Accident Fund National Insurance Company Hawaii, Inc. Motors Insurance Corporation American National General Insurance Auto Club Group Insurance Company Continental Insurance Company Danielson Insurance Company Compwest Insurance Company Fireman’s Fund Insurance Company of Company Auto Club Insurance Association BrickStreet Mutual Insurance Company Continental Insurance Company of New Danielson National Insurance Company Third Coast Underwriters Louisiana AMERCO Corp Group American National Lloyds Insurance Auto Club Property and Casualty Insurance Jersey, The National American Insurance Company of United Wisconsin Insurance Company Fireman’s Fund Insurance Company of Ohio Amerco Corp Company Company California Casualty Group National Fire Insurance Company of Hartford California Interstate Fire & Casualty Company North American Fire & Casualty Insurance American National Property and Casualty MEEMIC Insurance Company California Casualty & Fire Insurance Surety Bonding Company of America Valor Insurance Company, Inc. ACE USA Group Jefferson Insurance Company Company Company Memberselect Insurance Company Company Transportation Insurance Company ACE American Insurance Company National Surety Corporation Republic Western Insurance Company Anpac Louisiana Insurance Company California Casualty General Insurance Universal Surety of America Direct Auto Insurance Company ACE American Lloyds Insurance Company San Francisco Reinsurance Company Farm Family Casualty Insurance Company Auto Club Insurance Company of Florida Company of Oregon Valley Forge Insurance Company ACE American Reinsurance Company American Alliance Casualty Company Pacific Property & Casualty Company California Casualty Indemnity Exchange Western Surety Company Direct General Group ACE Fire Underwriters Insurance Company Allstate Insurance Group United Farm Family Insurance Company Auto Club South Insurance Company California Casualty Insurance Company Direct General Insurance Company ACE Indemnity Insurance Company ALIC Reinsurance Company American European Group Commerce Insurance, a MAPFRE Direct General Insurance Company of ACE Insurance Company of Illinois Allstate Assurance Company American European Insurance Company American Road Insurance Company, Inc. AutoOne Insurance Capital Insurance Group Company Louisiana ACE Insurance Company of Ohio Allstate County Mutual Insurance Company Rutgers Casualty Insurance Company AutoOne Insurance Company California Capital Insurance Company American Commerce Insurance Company Direct General Insurance Company of ACE Insurance Company of the Midwest Allstate Floridian Insurance Company Rutgers Enhanced Insurance Company American Safety Insurance Companies AutoOne Select Insurance Company Eagle West Insurance Company Citation Insurance Company (MA) Mississippi ACE Property and Casualty Allstate Indemnity Company United International Insurance Company American Safety Casualty Insurance Monterey Insurance Company Commerce Insurance Company, The Direct Insurance Company Insurance Company Allstate Insurance Company Company Auto-Owners Insurance Group Nevada Capital Insurance Company Commerce West Insurance Company Direct National Insurance Company Atlantic Employers Insurance Company Allstate Life Insurance Company of New York American Family Insurance Group American Safety Indemnity Company Auto-Owners Insurance Company MAPFRE Insurance Company of Florida Bankers Standard Fire and Marine Company Allstate New Jersey Insurance Company American Family Insurance Company American Safety Risk Retention Group Home-Owners Insurance Company Caterpillar Insurance Company Statewide Insurance Company Donegal Insurance Group Bankers Standard Insurance Company American Family Life Insurance Company Owners Insurance Company Atlantic States Insurance Company

14 15 Eveready Insurance Company Farmers Texas County Mutual Insurance Florists’ Mutual Group Great American Property and Casualty Hallmark Financial Services, Inc. New England Insurance Company ICW Group Company Florists’ Insurance Company Insurance Group American Hallmark Insurance Company of Nutmeg Insurance Company Explorer Insurance Company, The Everest Re Group Fire Insurance Exchange Florists’ Mutual Insurance Company American Empire Insurance Company Texas Pacific Insurance Company, Ltd. Independence Casualty & Surety Company Everest Indemnity Insurance Company Foremost County Mutual Insurance American Empire Surplus Lines Insurance Hallmark County Mutual Insurance Company Property and Casualty Insurance Company Insurance Company of the West Everest National Insurance Company Company Founders Insurance Company Company Hallmark Insurance Company of Hartford Westward Insurance Company Everest Reinsurance Company Foremost Insurance Company Grand Great American Alliance Insurance Company Hallmark Specialty Insurance Company Sentinel Insurance Company, Ltd. 2012 Everest Security Insurance Company Rapids, Michigan Gateway Insurance Company Great American Assurance Insurance Trumbull Insurance Company IFA Insurance Company Mt. McKinley Insurance Company Foremost Lloyds of Texas Company Hanover Insurance Group Twin City Fire Insurance Company Active Foremost Property and Casualty Insurance Georgia Farm Bureau Group Great American Casualty Insurance AIX Specialty Insurance Company Imperial Management Group Fairfax Financial Group Company Georgia Farm Bureau Casualty Insurance Company Allmerica Financial Alliance Insurance Hastings Mutual Insurance Company Imperial Fire and Casualty Insurance Member Crum & Forster Indemnity Company Foremost Signature Insurance Company Company Great American Contemporary Insurance Company Company Crum & Forster Insurance Company Illinois Farmers Insurance Company Georgia Farm Bureau Mutual Insurance Great American E & S Insurance Company Allmerica Financial Benefit Insurance Hawaii Employer’s Mutual Insurance Groups Crum & Forster Underwriters Company of Mid-Century Insurance Company Company Great American Fidelity Insurance Company Company Company (HEMIC) IMT Group, The (continued) Ohio Mid-Century Insurance Company of Texas Great American Insurance Company Citizens Insurance Company of America IMT Insurance Company (Mutual) Fairmont Specialty Insurance Company Neighborhood Spirit Property and Casualty GeoVera Holdings, Inc. Group Great American Insurance Company of Citizens Insurance Company of Illinois HCC Insurance Holdings, Inc. Wadena Insurance Company North River Insurance Company, The Company GeoVera Insurance Company New York Citizens Insurance Company of Ohio American Contractors Indemnity Company Donegal Mutual Insurance Company United States Fire Insurance Company New Hampshire Indemnity Company, Inc. GeoVera Security Insurance Company Great American Lloyd’s Insurance Company Citizens Insurance Company of the Midwest Avemco Insurance Company Infinity Property & Casualty Le Mars Insurance Company Zenith Insurance Company Security National Insurance Company (FL) GeoVera Specialty Insurance Company Great American Protection Insurance Hanover American Insurance Company HCC Specialty Insurance Company Insurance Group Michigan Insurance Company Zenith Star Insurance Company Texas Farmers Insurance Company Pacific Select Property Insurance Company Company Hanover Insurance Company Houston Casualty Company Hillstar Insurance Company Peninsula Indemnity Company ZNAT Insurance Company Truck Insurance Exchange Great American Security Insurance Hanover Lloyd’s Insurance Company Pioneer General Insurance Company Infinity Assurance Insurance Company Peninsula Insurance Company Germania Mutual Group Company Hanover National Insurance Company United States Surety Company Infinity Auto Insurance Company Sheboygan Falls Insurance Company Farmers Insurance Exchange FBL Financial Group, Inc. Germania Farm Mutual Insurance Great American Spirit Insurance Company Hanover New Jersey Insurance Company US Specialty Insurance Company Infinity Casualty Insurance Company Southern Insurance Company of Virginia 21st Century Advantage Insurance Company Farm Bureau Mutual Insurance Company Association Mid-Continent Assurance Company Massachusetts Bay Insurance Company Infinity County Mutual Insurance Company Southern Mutual Insurance Company 21st Century Assurance Company KFB Insurance Company, Inc. Germania Fire & Casualty Company Mid-Continent Casualty Company NOVA Casualty Company Hiscox Insurance Group Infinity Indemnity Insurance Company 21st Century Auto Insurance Company of Western Agricultural Insurance Company Germania Insurance Company National Interstate Insurance Company Professionals Direct Insurance Company Hiscox Insurance Company, Inc. Infinity Insurance Company DTRIC Insurance Company, Limited New Jersey Germania Select Insurance Company National Interstate Insurance Company of Verlan Fire Insurance Company, MD Hiscox Specialty Insurance Company, Inc. Infinity Preferred Insurance Company 21st Century Casualty Company FCCI Insurance Group, Inc. Texas Heritage Insurance Company Hawaii, Inc. Infinity Premier Insurance Company Electric Insurance Company 21st Century Centennial Insurance Company Brierfield Insurance Company Oklahoma Surety Company Harleysville Insurance Group Homesite Insurance Group Infinity Reserve Insurance Company 21st Century Indemnity Insurance Company FCCI Advantage Insurance Company Global Liberty Insurance Company Republic Indemnity Company of America Berkshire Mutual Insurance Company Homesite Indemnity Company Infinity Safeguard Insurance Company Elephant Insurance Company 21st Century Insurance Company FCCI Commercial Insurance Company of New York Republic Indemnity of California Harleysville Insurance Company Homesite Insurance Company Infinity Security Insurance Company 21st Century Insurance Company of the FCCI Insurance Company Triumphe Casualty Company Harleysville Insurance Company of Homesite Insurance Company of California Infinity Select Insurance Company EMC Insurance Companies Southwest Monroe Guaranty Insurance Company GMAC Insurance Personal Lines Group Vanliner Insurance Company New Jersey Homesite Insurance Company of Florida Infinity Standard Insurance Company Dakota Fire Insurance Company 21st Century National Insurance Company National Trust Insurance Company Agent Alliance Insurance Company Harleysville Insurance Company of New York Homesite Insurance Company of Georgia EMC Insurance Companies 21st Century North American Insurance GMAC Insurance Company Online, Inc. Greater New York Group Harleysville Insurance Company of Ohio Homesite Insurance Company of Illinois Insuremax Insurance Company EMC Property and Casualty Company Company Federated Mutual Group GMAC Insurance Holding GNY Custom Insurance Company Harleysville Lake States Insurance Company Homesite Insurance Company of New York EMC Reinsurance Company 21st Century Pacific Insurance Company Federated Mutual Insurance Company Integon Casualty Insurance Company Greater New York Mutual Insurance Harleysville Life Insurance Company Homesite Insurance Company of the Interboro Insurance Company EMCASCO Insurance Company 21st Century Pinnacle Insurance Company Federated Service Insurance Company Integon General Insurance Corporation Company Harleysville Mutual Insurance Company Midwest Employers Modern Life Company 21st Century Preferred Insurance Company Integon Indemnity Corporation Insurance Company of Greater New York Harleysville Pennland Insurance Company Homesite Lloyds of Texas Interinsurance Exchange of the Farm and City Insurance Company 21st Century Premier Insurance Company Fidelity National Group Integon National Insurance Company Strathmore Insurance Company Harleysville Preferred Insurance Company Automobile Club Hamilton Mutual Insurance Company of 21st Century Superior Insurance Company Fidelity National Insurance Company Integon Preferred Insurance Company Harleysville Worcester Insurance Company Horace Mann Insurance Group AAA Texas County Mutual Insurance Cincinnati, Ohio, The American Federation Insurance Company Fidelity National Lloyds MIC General Insurance Corporation GUARD Insurance Group Harleysville-Atlantic Insurance Company Horace Mann Insurance Company Company Illinois EMCASCO Insurance Company American Pacific Insurance Company, Inc. Fidelity National Property and Casualty National General Assurance Company AmGUARD Insurance Company Harleysville-Garden State Insurance Horace Mann Lloyds Auto Club Casualty Company Union Insurance Company of Providence Bristol West Casualty Insurance Company National General Insurance Company EastGUARD Insurance Company Company Horace Mann Property & Casualty Auto Club Family Insurance Company Bristol West Insurance Company First Acceptance Insurance Group New South Insurance Company NorGUARD Insurance Company Mid-America Insurance Company Insurance Company Auto Club Indemnity Company Erie Insurance Group Bristol West Preferred Insurance Company First Acceptance Insurance Company of WestGUARD Insurance Company Penn Mutual Insurance Company Teachers Insurance Company Automobile Club Inter-Insurance Exchange Erie Family Life Insurance Company Civic Property and Casualty Company Georgia, Inc. Gramercy Insurance Company Automobile Club of Southern California Life Erie Insurance Company Coast National Insurance Company First Acceptance Insurance Company of GuideOne Insurance Hartford Insurance Group, The IAT Insurance Company Erie Insurance Company of New York Exact Property and Casualty Company Tennessee Grange Mutual Casualty Group GuideOne America Insurance Company First State Insurance Company Acceptance Casualty Insurance Company Erie Insurance Exchange Farmers Insurance Company of Arizona First Acceptance Insurance Company, Inc. Grange Indemnity Insurance Company GuideOne American Life Insurance Hartford Accident and Indemnity Company Acceptance Indemnity Insurance Company Interstate Auto Insurance Company, Inc. Erie Insurance Property & Casualty Farmers Insurance Company of Idaho Grange Insurance Company of Michigan Company Hartford Casualty Insurance Company Commercial Alliance Insurance Company Company Farmers Insurance Company of Oregon First American Corporation Grange Mutual Casualty Company GuideOne Elite Insurance Company Hartford Financial Services – WC Harco National Insurance Company Interstate Bankers Casualty Company Flagship City Insurance Company Farmers Insurance Company of Washington First American Home Buyers Protection Grange Property & Casualty Insurance GuideOne Life Insurance Company Hartford Fire Insurance Company Occidental Fire & Casualty Company of Farmers Insurance Company, Inc. Corp Company GuideOne Lloyds Insurance Company Hartford Insurance Company of Illinois North Carolina Island Insurance Group Esurance Farmers Insurance Hawaii, Inc. First American Property & Casualty Integrity Mutual Insurance Company GuideOne Mutual Insurance Company Hartford Insurance Company of the Midwest Transguard Insurance Company of Island Insurance Company, Ltd. Esurance Insurance Company Farmers Insurance of Columbus, Inc. Insurance Company Integrity Property & Casualty Insurance GuideOne Property & Casualty Insurance Hartford Insurance Company of the America, Inc. Island Premier Insurance Company, Ltd. Esurance Insurance Company of New Jersey Farmers New Century Insurance Company First American Specialty Insurance Company Company Company Southeast Wilshire Insurance Company Tradewind Insurance Company, Ltd. Esurance Property and Casualty Insurance Farmers New World Life Insurance Company Trustgard Insurance Company GuideOne Specialty Mutual Insurance Hartford Lloyd’s Insurance Company Company Farmers Reinsurance Company First Chicago Insurance Company Company Hartford Underwriters Insurance Company

16 17 Kingstone Insurance Company Liberty Personal Insurance Company MEMIC Group Millers Mutual Insurance Association Veterinary Pet Insurance Company Western Protectors Insurance Company Progressive Express Insurance Company Liberty Surplus Insurance Corporation Maine Employers’ Mutual Insurance Victoria Automobile Insurance Company Progressive Freedom Insurance Company Kingsway America Group LM General Insurance Company Company Mitsui Sumitomo Group Victoria Electra Insurance Company Paramount Insurance Company - MD Progressive Garden State Insurance Amigo Insurance Company LM Insurance Corporation MEMIC Indemnity Company Mitsui Sumitomo Insurance Company of Victoria Fire & Casualty Company Company Mendakota Insurance Company LM Personal Insurance Company America Victoria Select Insurance Company Park Insurance Company Progressive Group of Insurance Mendota Insurance Company LM Property and Casualty Insurance Merchants Insurance Group Mitsui Sumitomo Insurance USA, Inc. Victoria Specialty Insurance Company Companies - CT 2012 Universal Casualty Company Company Merchants Mutual Insurance Company Western Heritage Insurance Company PGC Holding Group Progressive Gulf Insurance Company Merchants and Business Men’s Mutual Merchants National Insurance Company Motorists Insurance Group, The General Automobile Insurance Company, Progressive Halcyon Insurance Company Active Lancer Insurance Group Insurance Company Merchants Preferred Insurance Company Iowa American Insurance Company Nevada General Insurance Company Inc. Progressive Hawaii Insurance Corporation Lancer Insurance Company Mid-American Fire & Casualty Company Iowa Mutual Insurance Company Permanent General Assurance Corporation Progressive Home Insurance Company Member North Sea Insurance Company Midwestern Indemnity Company, The Mercury General Group MICO Insurance Company New Jersey Manufacturers Group Permanent General Assurance Corporation Progressive Home Underwriters Insurance Montgomery Mutual Insurance American Mercury Insurance Company Motorist Life Insurance Company New Jersey Casualty Insurance Company of Ohio Progressive Marathon Insurance Company Groups Lebanon Valley Insurance Company Company, The American Mercury Lloyds Insurance Motorists Commercial Mutual Insurance New Jersey Indemnity Insurance Company Progressive MAX Insurance – CT (continued) National Insurance Association Company Company New Jersey Manufacturers Insurance Plymouth Rock Companies Progressive Max Insurance Company Liberty Mutual Group Netherlands Insurance Company California Automobile Insurance Company Motorists Mutual Insurance Company Company Bunker Hill Insurance Company Progressive Michigan Insurance Company America First Insurance Company North Pacific Insurance Company California General Underwriters Insurance Phenix Mutual Fire Insurance Company New Jersey MFG SIU - Staff Mt. Washington Assurance Corporation Progressive Mountain Insurance Company Kemper Preferred America First Lloyd’s Insurance Company Ohio Casualty Insurance Company, The Company Wilson Mutual Insurance Company New Jersey Re-Insurance Company Pilgrim Insurance Company Progressive Northeastern Insurance Alpha Property & Casualty Insurance American Ambassador Casualty Company Ohio Security Insurance Company Mercury Casualty Company Plymouth Rock Assurance Corporation Company Company American Economy Insurance Company Oregon Automobile Insurance Company Mercury County Mutual Insurance Company National Automotive Insurance Company NLC Insurance Companies Progressive Northern Insurance – CT Capital County Mutual Fire Insurance American Fire and Casualty Company Peerless Insurance Company Mercury Indemnity Company of America Danbury Insurance Company PMA Capital Corporation Progressive Northern Insurance Company Company American States Insurance Company Safeco Insurance Company of America Mercury Indemnity Company of Georgia National Guaranty Group Hingham Mutual Fire Insurance Company Manufacturers Alliance Insurance Company Progressive Northwestern Insurance Charter Indemnity Company American States Insurance Company of Safeco Insurance Company of Illinois Mercury Insurance Company Driver’s Insurance Company New London County Mutual Insurance Pennsylvania Manufacturers’ Association Company Financial Indemnity Company Texas Safeco Insurance Company of Oregon Mercury Insurance Company of Florida National Guaranty Insurance Company Company Insurance Company Progressive Paloverde Insurance Company Kemper Independence Insurance Company American States Life Insurance Company Safeco Insurance Company of PA Mercury Insurance Company of Georgia Thames Insurance Company Pennsylvania Manufacturers Indemnity Progressive Preferred Insurance Company Merastar Insurance Company American States Lloyds Insurance Company Safeco Life Insurance Company Mercury Insurance Company of Illinois Nations Insurance Company Company Progressive Premier Insurance Company of Mutual Savings Fire Insurance Company American States Preferred Insurance Safeco Lloyds Insurance Company Mercury National Insurance Company Norfolk and Dedham Group, The Illinois National Merit Insurance Company Company Safeco National Insurance Company Nationwide Insurance Companies Dorchester Mutual Insurance Company Preferred Mutual Insurance Company Progressive Security Insurance Company Old Reliable Casualty Company Atlas Assurance Company of America Safeco National Life Insurance Company MetLife Auto & Home Group ALLIED Property and Casualty Insurance Fitchburg Mutual Insurance Company Progressive Southeastern Insurance Response Indemnity Company Bridgefield Casualty Insurance Company Safeco Surplus Lines Insurance Company Economy Fire & Casualty Company Company Norfolk and Dedham Mutual Fire Insurance ProAssurance Corporation Company Response Indemnity Company of California Bridgefield Employers Insurance Company San Diego Insurance Company Economy Preferred Insurance Company AMCO Insurance Company Company American Medical Insurance Exchange Progressive Specialty Insurance – CT Response Insurance Company Colorado Casualty Insurance Company Wausau Business Insurance Company Economy Premier Assurance Company Atlantic Floridian Insurance Company PACO Assurance Company, Inc. Progressive Specialty Insurance Company Response Worldwide Direct Auto Insurance Consolidated Insurance Company Wausau General Insurance Company Metropolitan Casualty Insurance Company Atlantic Insurance Company NYCM Insurance Group Podiatry Insurance Company of America Progressive Universal Insurance Company Company Empire Life Insurance Company Wausau Underwriters Insurance Company Metropolitan Direct Property and Casualty Colonial County Mutual Insurance Company A. Central Insurance Company ProAssurance Casualty Company of Illinois Response Worldwide Insurance Company Employers Insurance of Wausau A Mutual West American Insurance Company Insurance Company Crestbrook Insurance Company New York Central Mutual Fire Insurance ProAssurance Indemnity Company, Inc. Progressive West Insurance Company Trinity Universal Insurance Company Company Metropolitan General Insurance Company Depositors Insurance Company Company ProAssurance National Capital Insurance United Financial Casualty Company Union National Fire Insurance Company Excelsior Insurance Company Loya Group Metropolitan Group Property and Casualty Farmland Mutual Insurance Company Company United Financial Casualty Company - CT United Casualty Insurance Company of First Liberty Insurance Corporation, The Fred Loya Insurance Company Insurance Company National Casualty Company Ohio Indemnity Company ProAssurance Specialty Insurance America First National Insurance Company of Loya Casualty Insurance Company Metropolitan Lloyds Insurance Company of Nationwide Affinity Insurance Company of Company, Inc. Quincy Mutual Group Unitrin Advantage Insurance Company America Vision Insurance Company Texas America OneBeacon Insurance Group ProAssurance Wisconsin Insurance New England Mutual Insurance Company Unitrin Auto and Home Insurance Company First Safeco National Life Insurance Metropolitan Property and Casualty Nationwide Agribusiness Insurance American Central Insurance Company Company Patrons Oxford Insurance Company Unitrin County Mutual Insurance Company Company Magna Carta Companies Insurance Company Company Atlantic Specialty Insurance Quincy Mutual Fire Insurance Company Unitrin Direct Insurance Company General Insurance Company of America Paramount Insurance Company Nationwide Assurance Company Camden Fire Insurance Association Progressive Group Unitrin Direct Property & Casualty Company Globe American Casualty Company Public Service Mutual Insurance Company MGA Insurance Company, Inc. Nationwide General Insurance Company Employers’ Fire Insurance Company Drive New Jersey Insurance Company Republic Group, The Unitrin Preferred Insurance Company GoAmerica Western Select Insurance Company Nationwide Indemnity Company Homeland Insurance Company of New York Mountain Laurel Assurance Company Republic Fire & Casualty Company Unitrin Safeguard Insurance Company Golden Eagle Insurance Corporation Michigan Basic Property Insurance Nationwide Insurance Company of America Northern Assurance Company of America National Continental Insurance Company Republic Lloyds Valley Insurance Company Hawkeye Security Insurance Company Markel Corporation Group Association Nationwide Insurance Company of Florida OneBeacon America Insurance Company Progressive American Insurance Company Republic Underwriters Insurance Company Valley Property & Casualty Insurance Indiana Insurance Company Associated International Insurance Company Nationwide Lloyds OneBeacon Insurance Company Progressive Auto Pro Insurance Company Republic Vanguard Insurance Company Company Insurance Company of Illinois Deerfield Insurance Company Michigan Farm Bureau Group Nationwide Mutual Fire Insurance Company OneBeacon Lloyd’s of Texas Progressive Bayside Insurance Company Southern County Mutual Insurance Company Warner Insurance Company Liberty County Mutual Insurance Company Essex Insurance Company Farm Bureau General Insurance Company Nationwide Mutual Insurance Company OneBeacon Midwest Insurance Company Progressive Casualty Insurance – CT Southern Insurance Company Liberty Insurance Company of America Evanston Insurance Company of Michigan Nationwide Property and Casualty Insurance Pennsylvania General Insurance Company Progressive Casualty Insurance Company Southern Underwriters Insurance Kentucky Employers’ Mutual Liberty Insurance Corporation FirstComp Insurance Company Farm Bureau Mutual Insurance Company of Company Potomac Insurance Company Progressive Choice Insurance Company Southern Vanguard Insurance Company Insurance (KEMI) Liberty Insurance Underwriters, Inc. Markel American Insurance Company Michigan Scottsdale Indemnity Company Traders & General Insurance Company Progressive Classic Insurance Company Liberty Life Assurance Company of Boston Markel Insurance Company Scottsdale Insurance Company Progressive Commercial Casualty Company Rider Insurance Company Kentucky Farm Bureau Group Liberty Lloyds of Texas Michigan Millers Mutual Scottsdale Surplus Lines Insurance OOIDA Risk Retention Group, Inc. Progressive Consumers Insurance Company FB Insurance Company Liberty Mutual Fire Insurance Company Maryland Automobile Insurance Fund Insurance Company Company Progressive County Mutual Insurance RLI Group Kentucky Farm Bureau Mutual Insurance Liberty Mutual Insurance Company Titan Indemnity Company Oregon Mutual Group Company Contractors Bonding Insurance Company Company Liberty Mutual Personal Insurance Company Maya Assurance Company Millers First Insurance Companies Titan Insurance Company Oregon Mutual Insurance Company Progressive Direct Insurance – CT Mt. Hawley Insurance Company Liberty Northwest Insurance Corporation Millers Classified Insurance Company

18 19 Sentry Casualty Company State Farm Group Tower Group Companies Travelers Commercial Insurance Company Virginia Farm Bureau Mutual Insurance Universal Underwriters Insurance Company Sentry Insurance A Mutual Company State Farm County Mutual Insurance Adirondack Insurance Exchange Travelers Commercial Lines (Division Stats) Company Universal Underwriters Life Insurance Sentry Lloyds of Texas Company of Texas Massachusetts Homeland Insurance Travelers Excess and Surplus Lines Virginia Farm Bureau Town and Country Company Sentry Select Insurance Company State Farm Fire and Casualty Company Company Company Insurance Universal Underwriters of Texas Insurance Viking County Mutual Insurance Company State Farm Florida Insurance Company New Jersey Skylands Insurance Association Travelers Home and Marine Insurance Company Viking Insurance Company of Wisconsin State Farm General Insurance Company New Jersey Skylands Insurance Company Company, The Wawanesa Insurance Group ZC Specialty Insurance Company 2012 State Farm Guaranty Insurance Company Tower Insurance Company of New York Travelers Indemnity Company of America, Wawanesa General Insurance Company Zurich American Insurance Company Shelter Insurance Companies State Farm Indemnity Company Tower National Insurance Company The Zurich American Insurance Company of Active Shelter General Insurance Company State Farm Lloyds York Insurance Company of Maine Travelers Indemnity Company of Wellington Insurance Company Illinois Shelter Mutual Insurance Company State Farm Mutual Automobile Insurance Connecticut, The Member Shelter Reinsurance Company Company Toyota Motor Insurance Company Travelers Indemnity Company, The Western General Insurance Company Travelers Investigative Services (Division Groups Sompo Japan Insurance, Inc. Sterling Casualty Insurance Company Travelers Companies, Inc., The Stats) Western National Mutual Group (continued) Sompo Japan Fire and Marine Insurance American Equity Insurance Company Travelers Lloyds Insurance Company, The Farmers Home Mutual Insurance Company Company of America Strickland Insurance Group American Equity Specialty Insurance Travelers Lloyds of Texas Insurance Pioneer Specialty Insurance Company Sompo Japan Insurance Company of Atlantic Casualty Insurance Company Company Company Titan Property & Casualty Insurance RLI Indemnity Company America Coastal Casualty Insurance Company Athena Assurance Company Travelers Personal Insurance Company Company 2012 RLI Insurance Company Automobile Insurance Company of Hartford, Travelers Personal Lines (Division Stats) Western Home Insurance Company Associate 2012 Southern Pioneer Insurance Companies Sutter Insurance Company Connecticut, The Travelers Personal Security Insurance Western National Assurance Company Safe Auto Insurance Company Charter Oak Fire Insurance Company, The Company Western National Mutual Insurance Member Strategic Springfield Insurance Company Swiss Re Group Commercial Guaranty Insurance Company Travelers Property Casualty Company of Company Safety Group Atradius Trade Credit Insurance Company of Discover Specialty Insurance Company America Companies Partner Safety Indemnity Insurance Company Standard Mutual Insurance Company Maryland Discovery Property & Casualty Insurance Travelers Property Casualty Insurance Westfield Group Safety Insurance Company Atradius Trade Credit Insurance Company of Company Company American Select Insurance Company Safety Property and Casualty Insurance Star Casualty Insurance Company New Jersey Farmington Casualty Company United States Fidelity and Guaranty Beacon Insurance Company of America AFN, LLC Safelite Solutions, LLC Company Facility Insurance Corporation Fidelity and Guaranty Insurance Company Company First Delaware Insurance Company Starr Companies First Specialty Insurance Corporation Fidelity and Guaranty Insurance First Patriot Insurance Company Ally Financial, Inc. Starr Indemnity & Liability Company North American Capacity Insurance Underwriters, Inc. Ohio Farmers Insurance Company Safeway Insurance Group Tri-State Consumer Insurance Company AVIS Budget Group Oak Brook County Mutual Insurance Company First Floridian Auto and Home Insurance Old Guard Fire Insurance Company AVIS Rent A Car System, LLC Company State Automobile Insurance Companies North American Elite Insurance Company Company Union Fidelity Life Insurance Company Old Guard Insurance Company Safeway Direct Insurance Company American Compensation Insurance North American Specialty Insurance First Trenton Indemnity Company Westfield Insurance Company CarMax Business Services, LLC Safeway Insurance Company Company Company Gulf Underwriters Insurance Company Union Labor Group Westfield National Insurance Company CarMax Auto Superstores, Inc. Safeway Insurance Company of Alabama Beacon Lloyds Insurance Company Swiss Reinsurance America Corporation Northfield Insurance Company Ulico Standard of America Casualty Citiwide Auto Leasing, Inc. Safeway Insurance Company of Georgia Beacon National Insurance Company Washington International Insurance Northland Casualty Company Company Windhaven Insurance Company AllCar Rent-A-Car Safeway Insurance Company of Louisiana Bloomington Compensation Insurance Company Northland Insurance Company ULLICO Casualty Company Safeway Property Insurance Company Company Westport Insurance Phoenix Insurance Company, The Workmen’s Auto Insurance Company Copart Farmers Casualty Insurance Company Premier Insurance Company of United Automobile Insurance Group Cycle Express, LLC dba National Selective Insurance Group First Preferred Insurance Company Texas Farm Bureau Mutual Group Massachusetts, The Argus Fire & Casualty Insurance Company WRC Group of Companies, The Powersport Auctions Selective Auto Insurance Company of Litchfield Mutual Fire Insurance Company Farm Bureau County Mutual Insurance Seaboard Surety Company United Automobile Insurance Company 1st Auto & Casualty Insurance Company New Jersey Meridian Citizens Mutual Insurance Company of Texas Select Insurance Company United Midwest Insurance Company Wisconsin Reinsurance Corp Dollar Thrifty Automotive Group, Inc. Selective Insurance Company of America Companies Texas Farm Bureau Casualty Insurance St. Paul Fire and Casualty Insurance Selective Insurance Company of New Meridian Security Insurance Company Company Company United Equitable Group Young America Insurance Company Enterprise Holdings Enterprise Rent-A-Car England Mid-Plains Insurance Company Texas Farm Bureau Mutual Insurance St. Paul Fire and Marine Insurance Company American Heartland Insurance Company National Car Rental Milbank Insurance Company Company St. Paul Guardian Insurance Company United Equitable Insurance Company Zurich North America Selective Insurance Company of New York Vanguard Car Rental USA, Inc. Selective Insurance Company of Patrons Fire Insurance Company of Rhode Texas Farm Bureau Underwriters St. Paul Medical Liability Insurance Company American Guarantee and Liability Insurance South Carolina Island (a reciprocal) St. Paul Mercury Insurance Company United Services Automobile Association Company Fox Rent A Car Patrons Mutual Insurance Company of St. Paul Protective Insurance Company Catastrophe Reinsurance Company American Zurich Insurance Company Hertz Corporation, The Selective Insurance Company of the Connecticut Tokio Marine & Nichido Fire USB Group St. Paul Surplus Lines Insurance Company USAA Casualty Insurance Company Assurance Company of America Hertz Company Southeast Petrolla Insurance TM Casualty Insurance Company Standard Fire Insurance Company, The USAA County Mutual Insurance Company Centre Insurance Company Selective Way Insurance Company Plaza Insurance Company TM Specialty Insurance Company TravCo Insurance Company USAA Garrison Property and Casualty Colonial American Casualty and Surety iLUXCARS Provision State Insurance Company TNUS Insurance Company Travelers Auto Insurance Company of Association Company Sentry Insurance Group Rockhill Insurance Company Tokio Marine & Nichido Fire Insurance Co., New Jersey USAA General Indemnity Company Empire Fire and Marine Insurance Company Insurance Auto Auctions, Inc. Dairyland County Mutual Insurance State Auto Florida Insurance Company Ltd. (U.S. Branch) Travelers Casualty and Surety Company USAA Life Insurance Company Empire Indemnity Insurance Company Keenan and Associates and Regency, a Company of Texas State Auto Insurance Company of Ohio Trans Pacific Insurance Company Travelers Casualty and Surety Company of USAA Texas Lloyds Company Fidelity and Deposit Company of Maryland division of Keenan Dairyland Insurance Company State Auto Insurance Company of Wisconsin America Maine Bonding and Casualty Company Middlesex Insurance Company State Auto Property and Casualty Insurance Topa Insurance Group Travelers Casualty Company of Connecticut Utica First Insurance Company Maryland Casualty Company Manheim Patriot General Insurance Company Company Topa Insurance Company Travelers Casualty Insurance Company of Maryland Insurance Company Motor Vehicle Accident Indemnification Peak Property and Casualty Insurance State Automobile Mutual Insurance America Virginia Farm Bureau Group National Standard Insurance Company Corporation (MVAIC) Corporation Company Travelers Commercial Casualty Company Virginia Farm Bureau Fire and Casualty Northern Insurance Company of New York 20 Company Steadfast Insurance Company QCSA Holdings, Inc. 21 Kenneth E. Rosen, Chair Michael J. Prandi Senior Vice President–Claims National Claims Leader USAA Michael Convery Westfield Group Matthew J. Scott Vice President, Chief Claim Officer Andrew Knudsen Vice President, Claims Rusty Beaty MetLife Auto & Home Vice President, Claims The Hartford Financial General Manager National Fireman’s Fund James P. Runnels Services Group, Inc. Nancy Pierce, Vice Chair Specialty Claims Insurance Company Senior Vice President Daily Rental Regional P&C Vice President Progressive Insurance Enterprise Rent-A-Car Company Government Employees Insurance Company

Nicholas Seminara Tom Kaschalk Senior Vice President, Senior Vice President & Claim General Counsel Chief Claims Officer Direct General Insurance Michael J. Randall David A. Bano Travelers Insurance Companies Senior Vice President Senior Vice President– AAA Northern California, Nevada, and Utah Chief Claims Officer Mark C. Russell Nationwide Insurance Douglas S. Menges Senior Vice President, Auto Claims Vice President–Chief Jim Haskins Farmers Insurance Group Insurance Operations Officer Senior Vice President, Claims Grange Insurance Companies Allstate Insurance Company Board of Susan Q. Hood, Immediate Past Chair Claims Vice President Governors State Farm Mutual Automobile Insurance Company 23 Vincent Cialdella David J. Rioux, CIFI (IASIU Liaison) James K. Schweitzer President President Senior Vice President and David Cuthbertson Verisk Insurance Solutions– International Association of Special Chief Operating Officer Claims and Crime Analytics Assistant Director Investigation Units (IASIU) Brian Smidt Criminal Justice Information Vice President – Data Analytics Services Division (CJIS) Vice President Corporate Security Erie Insurance Daniel G. Abbott Federal Bureau of Investigation Senior Vice President and Joseph H. Wehrle, Jr. Chief Information Officer William Schultz President and Chief Chief Inspector and Executive Officer Judith M. Fitzgerald Compliance Officer Vice President – Government Affairs Barbara M. Low Vice President – Human Resources

Paul A. Thompson Nancy Guglielmo Andrew J. Sosnowski Tom Welsh Insurance Auto Auctions Vice President, BITS Fraud Program Senior Vice President Vice President – Training The Financial Services Roundtable and General Counsel

Roger Morris Dennis Jay NICB Senior Vice President and Chief Executive Director Robert J. Jachnicki Communications Officer Advisors Coalition Against Insurance Fraud Leadership Senior Vice President and to the Board Team Chief Financial Officer

25 Statements of Financial Position Years ended December 31, ASSETS 2012 2011 Current assets $5,150,951 $4,286,520 Investments 31,040,741 28,038,839 Property and equipment (net) 1,308,461 1,516,358 Other assets 120,827 130,219 TOTAL ASSETS $37,620,980 $33,971,936

LIABILITIES AND NET ASSETS Current liabilities $5,675,334 $6,333,927 Capital lease obligation, net of current portion 4,075 79,790 Notes to Financial Other long-term liabilities 431,129 454,368 Financial Accrued pension costs 3,602,330 2,136,154 Statements Accrued post-retirement benefits 14,450,000 14,209,000 Statements TOTAL LIABILITIES $24,162,868 $23,213,239 Unrestricted Net Assets 13,247,726 10,178,059 These financial statements have Temporarily Restricted Net Assets 210,386 580,638 been prepared by management TOTAL NET ASSETS $13,458,112 $10,758,697 in conformity with generally TOTAL LIABILITIES AND NET ASSETS $37,620,980 $33,971,936 Assessment Revenues NICB Consolidated Pension Plan Litigation accepted accounting principles The activities of the National Insurance Crime Bureau Effective July 1, 2008, the NICB Pension Plan merged NICB has been named as a defendant in certain and include all adjustments which, in the opinion of management, Statements of Activities (“NICB”), conducted principally in the United States, are with the participants of the National Automobile Theft lawsuits wherein the plaintiffs seek to recover damages financed through assessments of its member insurance Bureau (“NATB”) to become a participating employer in based upon various allegations arising from certain of are necessary to reflect a fair REVENUES presentation. This presentation Assessments and member services $43,630,189 $42,531,202 carriers. Such assessments are determined according the Pension Plan for Insurance Organizations Plan (the these organizations’ investigations. After considering represents a summarization from to a formula based upon gross premiums for certain “PPIO Plan”). The PPIO Plan is a multiple-employer the merits of these actions and the opinions of outside audited financial statements. Data related and partnership income 367,480 10,390 Certain reclassifications of prior Investment income 1,144,543 933,938 lines of business written by member companies and benefit plan with approximately 73 participating counsel, together with the organizations’ liability year amounts have been made Net realized and unrealized gain on investments 1,937,142 (897,419) annual notification received from them. During the year employers. For the year ended December 31, 2012 insurance coverage, management of NICB believes to conform to the current year Net assets released from restriction 500,000 – ended December 31, 2012 and 2011, nine member and 2011, NICB made contributions of $455,472 and that the ultimate liability for these matters, if any, will presentation. Loss on sale of property and equipment – (2,565) organizations made up approximately 54% of NICB’s $149,538, respectively, to the Plan. NICB has no not have a material adverse effect on NICB’s financial TOTAL REVENUES $47,579,354 $42,575,546 assessment and member service revenues. unfunded commitment to the pension master trust at statements. December 31, 2012, as it has met the minimum funding EXPENSES requirement. Salaries $23,877,436 $23,002,279 Unrestricted Net Assets Tax Status Retirement and employee benefits 8,152,027 6,732,038 Unrestricted net assets are not subject to donor- NICB has received a favorable determination letter from Automobile operations 2,095,898 1,985,788 imposed stipulations or time restrictions. NICB Post-Retirement Plan the Internal Revenue Service dated September 9, 1991, Dues and fees 1,760,404 1,686,809 NICB provides certain healthcare and life insurance and reaffirmed in 2001, stating that it qualifies as a Office expense 1,433,684 1,541,506 benefits for retired employees. Employees hired prior not-for-profit corporation as described in Section 501(c) Technical fees and services 1,344,031 1,088,799 Temporarily Restricted Net Assets to April 1, 2004, are eligible to receive this benefit. (4) of the Internal Revenue Code (IRC) and, as such, Travel and group meetings 1,056,226 747,730 Temporarily restricted net assets of $210,386 and The NICB Post-retirement Plan is unfunded. As of is exempt from federal income taxes on related income Communications 1,037,912 1,068,765 $580,638, respectively, as of December 31, 2012 December 31, 2012, recognition of the net unfunded pursuant to section 501(a) of the IRC. NICB continues Computer and peripheral units 582,511 609,702 and 2011 are available for the purpose of funding status of the NICB Post-retirement Plan resulted to qualify as a not-for-profit corporation under Section Supplies, publications, and materials 450,881 491,413 special operations in support of law enforcement in current liabilities of $648,000 and non-current 501(c)(4). Other 1,793,873 2,441,556 and designated fraud fighting activities. The Board liabilities of $14,450,000 for a total benefit obligation of TOTAL EXPENSES $43,584,883 $41,396,385 of Governors approved the release of $500,000 $15,098,000. of temporarily restricted net assets for designated Change in unrestricted net assets before pension and activities in 2012. post-retirement-related change other than net periodic pension and post-retirement costs 3,994,471 1,179,161 Pension and post-retirement-related change other than net periodic pension and post-retirement costs (924,804) (2,712,576)

CHANGE IN UNRESTRICTED NET ASSETS $3,069,667 (1,533,415) Restitution contribution 129,748 290,138 Net assets released from restriction (500,000) – CHANGE IN TEMPORARILY RESTRICTED NET ASSETS (370,252) 290,138 CHANGE IN NET ASSETS $2,699,415 (1,243,277)

Net assets, beginning of year 10,758,697 12,001,974 26 Net assets, end of year $13,458,112 $10,758,697 27 Functional Years ended December 31, Expenses PROGRAM SERVICES 2012 2011 by Program Data Analytics Strategic $2,343,361 $1,797,538 Tactical 1,610,066 1,110,528 Information aggregation and analysis 1,941,486 1,667,096 TOTAL DATA ANALYTICS 5,894,913 4,575,162

Investigations Domestic vehicle recovery 3,827,832 3,716,318 Repatriation 1,591,594 1,879,830 Major cases - vehicle 2,276,828 1,971,101 Major cases - property and casualty 3,298,093 3,082,827 Field investigations 5,383,561 5,057,485 Commercial fraud 1,077,677 987,028 Major medical fraud task forces 7,808,619 7,632,995 Law enforcement assistance 3,913,131 3,716,834 TOTAL INVESTIGATIONS 29,177,335 28,044,418

Training Information Member company training 1,061,495 1,062,299 Law enforcement training 403,181 396,011 Resources Internal training 441,710 445,147 NICTA 144,073 146,969 TOTAL TRAINING 2,050,459 2,050,426

Legislative Advocacy 1,364,016 1,316,252

Public Awareness 663,088 656,076

TOTAL PROGRAM SERVICES 39,149,811 36,642,334

Administrative and General 4,435,072 4,754,051

TOTAL FUNCTIONAL EXPENSES $43,584,883 $41,396,385

28 29 NICB Hotline Public 1.800.tEL.NicB Awareness Resources Roger Morris Report Insurance Fraud Vice President, Chief and Vehicle Theft Communications Officer Phone: 800-447-6282, ext. 7085 Email: [email protected]

Frank Scafidi Director of Public Affairs The NICB annual report is published by Phone: 916-979-1510 Email: [email protected] the Communications Department of the National Insurance Crime Bureau (NICB), a not-for-profit organization supported by Membership nearly 1,100 property-casualty insurance Resources companies and self-insured organizations. Linda E. Schwartz For additional copies, please contact Vice President, Membership the NICB at 800-447-6282, ext. 7051, or and Marketing download the report from our website at Chicago, IL Download our free fraud tip app Phone: 800-447-6282, ext. 7177 www.nicb.org. Contents may be republished Email: [email protected] in Apple’s App Store or Google’s whole, or in part, with attribution. Play Store (for Android devices). Robert “Bob” J. Smith, CIFI Senior Membership Director Columbus, OH Phone: 847-544-7198 Follow Us Email: [email protected] www.facebook.com/pages/ National-Insurance-Crime-Bureau/230621820309256 Kym Forester Membership Director https://twitter.com/#!/insurancecrime Southern California www.youtube.com/user/InsuranceCrime Phone: 714-277-3611 Email: [email protected] http://www.linkedin.com/groups?gid=4040012 www.nicbblog.org

30 31 A Century of Partnership and Trust

In honor of the National Insurance Crime Bureau’s (NICB) 100th anniversary, the 2012 edition of our annual report salutes our century of partnership and trust with NICB members, law enforcement agencies and the American public in preventing and combating insurance fraud and vehicle theft crimes. The publication features photographs from our anniversary celebration, as well as centennial year efforts to address our mission and provide continual return on your membership investment.

32 NICB Headquarters 1111 E. Touhy Avenue, Suite 400 Des Plaines, IL 60018 800.447.6282

www.nicb.org NATIONAL INSURANCE CRIME BUREAU

• A Century of Partnership & Trust NATIONAL INSURANCE CRIME BUREAU 2012 ANNUAL REPORT A Century of Partnership & Trust

© 2013, National Insurance Crime Bureau