Prospering in a Changing Environment

State of the Association 042004 Annual Report vision

To be the recognized leader in providing association membership value to the property/casualty insurance industry. mission

NAMIC strengthens and supports its members and the property/casualty insurance industry by providing effective and high value advocacy, member services and public policy development.

Advocacy: Results oriented advocacy of members’ interests on key legislative and regulatory initiatives that relies on grassroots member involvement and collaborative advocacy relationships.

Member Services: Member directed programs and services providing high quality sources for insurance company operational needs and meaningful education, networking and knowledge sharing.

Public Policy: Public policy that anticipates emerging issues and consistently promotes the objective social and economic benefi ts of the free enterprise system, fair and open competition, and a rational business regulatory environment. Prospering in a Changing Environment.

The mutual insurance industry’s foundation is strong. We prosper by playing an active role in the It is almost as though Benjamin Franklin and the other industry. We know our business and the type of founders of our industry could see into the future, and regulation that works best for our companies and fashioned a system that would adapt to change and thrive consumers. Our collective voices are heard long long after its inception. and loud in state legislatures, before regulators and throughout the halls of Congress. We are alert to Changes in our post-millennium world happen at an regulatory and legislative challenges that affect not amazing and sometimes incomprehensible speed. Keeping only our prosperity, but also the very existence of one step ahead is hard enough; prospering is another the mutual insurance industry. challenge entirely. In this world, prospering takes not only hard work, good business practice and pro-activity, but Mutual insurance has not been in business creativity as well. in North America for more than 252 years by ignoring its changing environment. We prosper NAMIC and its member companies prosper because we do because we know who we are, remember where what it takes. We are responsible, we work hard and we are we have been, and have the vision and fortitude to alert to challenges and changes in our environment. Most of do what it takes to get things done. all, we prosper by fi nding creative ways to remain successful while improving the environment for our customers, and fi nding new ways to protect their lives and property When you’re fi nished changing, you’re fi nished. against the unexpected. – Benjamin Franklin

We prosper by giving back. We are good corporate citizens of our communities and take an active role in supporting our customers and our employees. Our involvement remains consistent through good times and bad; and beyond our business obligations, we donate our time, resources and talents to organizations that make our community environment safer and more productive.

Everyone can be great, because everyone can serve. – Martin Luther King, Jr.

The National Association of Mutual Insurance Companies 1 Prospering It has been a great year serving as the chairman of your association, a year in which we have been reminded repeatedly that the one constant in our industry is change. To prosper as individual companies and as an industry, we -F. Timothy Hegarty, Jr., CPCU have to be proactive in directing the course of the changes 2003-2004 Chairman that occur so that we are never caught unprepared.

NAMIC’s collective voice is powerful; its strength lies in its diversity. Members range in size from smaller regional and state carriers to four of the seven largest U.S. carriers. NAMIC members write more than 41 percent of all property/casualty premiums in the country and its member retention rate annually exceeds 99 percent. However, statistics aren’t necessarily important – what is important is the successful NAMIC initiatives, driven by active and engaged members meaningfully collaborating with state associations and others in the industry.

NAMIC offers many opportunities for involvement. Coming together is a beginning; Numerous committees and boards thrive because of an keeping together is progress; actively engaged membership. This type of collaboration has working together is success. never been more important as the industry faces challenges – Henry Ford in areas including privacy regulations, the use of credit-based insurance scoring, the inclusion or exclusion of regional and state mutual and stock insurance companies in the Terrorism Risk Insurance Act and Sarbanes Oxley.

NAMIC is actively representing you in each of these areas and has not only mitigated some of the more onerous provisions, but has developed and promoted uniform legislative solutions based on input from its membership. More than ever before, NAMIC’s ability to assist members in matters of state advocacy when called upon has borne fruit across the country. Whenever and wherever its strength is needed, NAMIC works daily to help you respond to all the challenges to help your company and the industry prosper in a changing environment.

This has been a tremendous year. Thank you for the privilege 2 The National Association of Mutual Insurance Companies of allowing me to serve as your chairman. ■ President’s Letter It has been a year of growth, achievement and transition for NAMIC.

Growth is always a positive indication in an association, and NAMIC’s new insurance company members brought with -Charles M. Chamness them nearly $3 billion in new direct written premium which President maintained our position as the largest property/casualty insurance trade association with a market share of 41 percent and 1,350 member companies.

Achieving our advocacy objectives was another hallmark of the year. Strong member involvement combined with effective staff work in state and federal affairs won key battles for NAMIC members. At the regulatory level, NAMIC is leading a strong effort to defeat unnecessary and unduly burdensome NAIC-imposed requirements for non-public insurance company corporate governance. This inappropriate and expensive new requirement would have already cost members millions in new compliance costs were it not for our success in fi ghting against its implementation. We make a living by what we get, but Also on the regulatory front, NAMIC helped lead the we make a life by what we give. industry effort to stop an ill-advised multi-state study on – Winston Churchill “disparate impact” in the use of credit-based insurance scores.

In federal affairs, NAMIC preserved the small insurance company tax exemption, which had attracted national attention through abuse by wealthy individuals and corporations. Working with key member companies, NAMIC’s federal affairs advocacy was able to achieve this victory in a very tough federal budget defi cit environment.

This was the fi rst Congress to receive the Benjamin Franklin Public Policy Award. More than 200 were given to members of Congress who supported legislation that represented good public policy for the insurance industry and consumers. During 2004, hundreds of NAMIC members met with elected leaders during Congressional Contacts

The National Association of Mutual Insurance Companies 3 visits to Washington D.C. This year marks were able to learn from each other through not only the the inaugural year of the Legislator of educational sessions, but through the positive value of the Year award, which will be awarded networking. annually to a legislator who exemplifi es NAMIC’s principles of public service and Through added non-dues revenue, the association grew who has established an outstanding record in fi nancial strength to be better equipped to handle the on issues of importance to NAMIC. This challenges confronting our industry. This growth occurred year’s recipient, Chairman Mike Oxley of with a strong emphasis on providing the excellent value for the House Financial Services Committee, the dues of each member company. certainly deserves this honor. Transition occurred in NAMIC staff restructuring in an NAMIC continued its tradition of leading ongoing effort to meet the needs of member companies. the industry through the development of NAMIC’s State Affairs division began providing advocacy public policy papers and creating model in all fi fty states and added more staff to meet the growing legislation to help the industry prosper. demand for services. NAMIC is committed to providing This year the association drafted the Fair members with state regulatory and compliance services Notice and Market Stability Act which was wherever they do business. The Regulatory Solutions Center unanimously approved by the American provides compliance-related information 24 hours-per-day, Legislative Exchange Council (ALEC) seven days per week, and two new specialty newsletters were in May and published two public policy launched to keep members up-to-date. papers: The Damaging Effect of Regulation of Insurance by the Courts and The Legal In recognition of their ongoing dedication and expanded Theory of Disparate Impact Does Not Apply roles within the association, Gregg Dykstra, Roger Schmelzer to the Regulation of Credit-based Insurance and David Winston were promoted to senior vice presidents Scoring. of internal operations, state and regulatory affairs and federal affairs, respectively. Later in the year, Bart Anderson was NAMIC continues to advocate for and hired as the senior vice president of member services and educate members about issues such as communications, a new department. the future of insurance regulation, open competition, improved market conduct, This marked my fi rst full year as president of the association. TRIA, and civil justice reform. NAMIC’s two I appreciate the trust and confi dence placed in me by the conferences grew in member participation board and NAMIC members, and the foundation established in product and seminar offerings under by former president Larry Forrester. The best of NAMIC the leadership of conference boards and is represented at every event and in every forum where committees of active and committed members speak out about legislation, deliberate over members. Both the Property Casualty regulatory changes, and gather to exchange ideas and to Conference and Farm Mutual Conference learn. This focused, cooperative and collaborative approach seminar attendance increased and members is the spirit of NAMIC and the key to its 109 years of helping members prosper in a changing environment. ■

4 The National Association of Mutual Insurance Companies Excellence in Leadership It is my great privilege to serve as your chairman during the coming year. This is an important year – a year in which our industry faces numerous challenges from many fronts – regulation, technology, education and governance. Each of us has the opportunity to help set the tone for another Wayne F. White, CPA, PFMM successful year. 2004-2005 Chairman

NAMIC’s new vision statement, “To be the recognized leader in providing association membership value to the property/casualty insurance industry,” fi ts perfectly with the theme during my tenure as your chairman … Excellence in Leadership.

NAMIC is governed by its member companies. Good governance, in both direction and execution, takes time, dedication, sacrifi ce and old-fashioned hard work. We must focus with extraordinary determination to see that we meet our objectives. You can help by engaging yourself in the The true meaning of life is to plant trees, process. You may have heard that before, but during the under whose shade you do not expect to sit. coming year, I challenge you to rededicate yourself and to identify others within your company and the industry who –Nelson Henderson can also participate, lead, and who have new things to learn. There are numerous opportunities at NAMIC to get involved through committee work, task forces and educational events.

Our industry has a rich, successful heritage; obviously, we are doing something right! But we must not become complacent - we must continually focus on leading our companies and our industry as we meet and address the challenges put to us by the emerging issues of the day.

When Benjamin Franklin founded the fi rst successful mutual insurance company in the United States, he envisioned creating an environment where neighbors helped each other. Here we are today in the 21st Century, operating across the world, carrying on that noble tradition.

Thank you for the opportunity to serve as your chairman. I look forward to our year together as we strive for Excellence in Leadership. ■ The National Association of Mutual Insurance Companies 5 Destined to Prosper Assuring the prosperity of our members in an environment that never stops changing is both a mission and driving force for the NAMIC staff.

NAMIC members reap the rewards of belonging to the largest property/casualty trade association, where their dues dollars are truly an investment in a prosperous future and individual company needs are the blueprint for every product and service designed to help members meet change and a constantly challenging environment. NAMIC member companies receive more benefi ts and greater value for their dues dollar than ever before.

Positive Growth Strength in numbers – 1,350 plus strong – sets NAMIC apart as a force for the industry and a voice for its members, All growth depends upon activity. heard from state legislatures, to the NAIC, to the federal There is no development physically government. NAMIC’s new insurance company members or intellectually without effort, brought with them nearly $3 billion in additional written premium which maintained NAMIC’S position as the largest and effort means work. property/casualty trade association in the United States. – Calvin Coolidge

Active Participation More than 2,000 insurance professionals attended educational programs during the past year, refl ecting the trending of increase in participants due to outstanding programming by the staff. Increased emphasis on the topic of corporate governance prompted special presentations to member company boards and state associations.

6 The National Association of Mutual Insurance Companies The Professional Farm Mutual Manager (PFMM) designation program continues to grow and achieve more industry prominence. Twenty-one new members added the PFMM designation to their names this year. Twenty-eight individuals earned the NAMIC Merit Award in 2004.

Unique products helped members prosper during the year. The popular Farm Inspection and Loss Prevention Manual will soon be available in a newly revised edition, thanks to the NAMIC Loss Control Committee. The NAMIC Online Salary Survey is now available 24/7 via the Internet. The new format reduces the lag time for salary information typically associated with paper-based survey products.

NAMIC programs are tools designed to help members proactively meet the changes in their environments. The NAMIC surplus notes program provided some 120-member companies with $1.6 billion of additional capital to reduce leverage ratios and enable them to seek new market opportunities.

Web Services expanded by eight new clients this year, increasing its client base and the functionality associated with its service. Already providing web design, hosting and electronic messaging, it now offers agent-only areas for company websites, online payment processing, and self-service site administration options.

The Claim Arbitration Service, a program for inter-company auto claim dispute resolution, has improved the number of arbitration fi les submitted dramatically over the past year. Fifteen new companies joined as signatories to the service. Volunteers continue to staff the arbitration committees hearing the cases. This provides a unique learning experience for all participants.

The National Association of Mutual Insurance Companies 7 Regulatory Oversight and Advocacy The State and Regulatory Affairs department’s State Affairs division is an advocate for NAMIC members in 50 states. Advocacy services continue to expand before state legislatures, insurance departments, and national legislative and regulatory organizations. NAMIC has strengthened its voice by partnering with 33 state associations. The expanded Legal and Regulatory Affairs division provides members with guidance on legal issues and solutions to everyday regulatory and compliance problems through signifi cantly expanded information products and advocacy at the NAIC.

This year, NAMIC’s State and Regulatory Affairs department enjoyed a number of national advocacy successes. NAMIC played a leadership role in creation of a model market conduct law at the National Conference of Insurance Legislators (NCOIL). This included defending the NCOIL model from negative changes made by the NAIC. Credit scoring continued to be a major issue, and NAMIC played a central role in stopping a multi-state data call initiated by the Missouri Department of Insurance, that intended to show that certain protected classes suffered a negative disparate impact from the use of credit scoring in insurance.

NAMIC also continues to be a leader at the NAIC by By working together, pooling opposing the wholesale misapplication of certain provisions our resources and building of the federal Sarbanes Oxley Act into the NAIC’s Model on our strengths, we can Audit rule. Adoption of this misguided proposal would accomplish great things. immediately become law in most states and would saddle – Ronald Reagan companies with massive compliance costs while not providing any signifi cant protection against insolvency.

This year has seen NAMIC expand its dominance in public policy advocacy. NAMIC’s Fair Notice and Market Stability Model Act was adopted by the American Legislative Exchange Counsel (ALEC) and will likely

8 The National Association of Mutual Insurance Companies be introduced in several states next year. We also held our fi rst annual member-driven public policy summit. As a result of the agenda established at that meeting, NAMIC published a ground-breaking paper proving that the civil rights doctrine of disparate impact cannot apply to credit-based insurance scoring. The American Insurance Association and the Property and Casualty Insurers of America have endorsed this paper.

It is clear that NAMIC’s unique brand of advocacy is leaving a signifi cant mark on the insurance industry, and improving the legal and regulatory environment for NAMIC members.

Federal Representation The Federal Affairs staff has vigorously represented the interests of NAMIC members on Capitol Hill, with the help of the members themselves through the Congressional Contact Program (CCP). NAMIC hosted 18 state delegations in the past year, using the grassroots strength of our membership to make a signifi cant difference in legislation that deeply affects the way we do business. This year, our efforts were especially evident in the issues of asbestos, class action, insurance regulation, small company tax and TRIA.

Addressing the current asbestos liability crisis, NAMIC, in collaboration with the entire property/casualty industry, has aggressively been working with Congress to help develop federal legislation to resolve the national asbestos litigation crisis.

As an active participant in the class action reform debate, NAMIC has advocated and supported such legislation as the Class Action Fairness Act that would remove class action lawsuits to federal courts and provide consumers

The National Association of Mutual Insurance Companies 9 with increased protection. NAMIC continues to work with Congress to ensure passage of this legislation.

Always in support of state regulation of insurance, the association strongly supports the modernization and effi ciency efforts underway through individual state insurance departments and legislatures. NAMIC has worked with Financial Services Committee Chairman Michael G. Oxley (R-Ohio) and his Roadmap to Insurance Regulatory Reform, and looks forward to further action Politics ought to be the part-time in the next Congress. profession of every citizen who would protect the rights and NAMIC successfully preserved the small insurance company privileges of free people and who tax exemption in the pension bill. Working with key member would preserve what is good and companies, NAMIC’s federal affairs advocacy was able to fruitful in our national heritage. preserve this critical exemption. Beyond this, NAMIC has – Dwight D. Eisenhower been successful in its efforts to expand the ability of farm mutuals to elect to be taxed solely on their investment income. Both the House and Senate jobs bills contain this provision and NAMIC will continue to push for its adoption this year.

Because the combined efforts of NAMIC and an industry coalition to have TRIA extended before the end of 2004, three bills have been introduced in Congress to extend TRIA two years past its current sunset of December 31, 2005. The bills require that terrorism insurance coverage be made available during that time.

All of these efforts are supported by NAMIC’s political action committee, the NAMIC PAC (formerly known as NAMIC CAP).

10 The National Association of Mutual Insurance Companies Providing a Voice

The immediacy, cost effectiveness and convenience of using electronic communication to bring vital information and advocacy initiatives to the desktops of all NAMIC members has caused the focus of NAMIC communication to change even more over the past year.

The Farm Mutual Forum became a monthly publication in January of 2004, in order to increase its value in presenting targeted news and information to farm mutual members. While still offered in print to some 500 members, the Forum is also available as an electronic publication. The Forum You are not here merely to make a liv- joins NAMIC’s other electronic newsletters, PC Executive ing. You are here in order to enable the Update, State Advocate and the NAMIC Online Weekly world to live more amply, with greater E-newsletter, all of which have enjoyed signifi cant vision, with a fi ner spirit of hope and increases in readership during the past year. achievement. You are here to enrich the world, and you impoverish yourself Sharing information about our changing environment in if you forget the errand. all its forms is an essential tool to help members prosper. – Woodrow Wilson During the past two years, NAMIC’s website, NAMIC Online, has seen traffi c increase by more than 23,000 unique visitors per month, and by nearly 2,100 visits every weekday. Additionally, registered users of the website have more than tripled. Because of NAMIC’s commitment to presenting and sharing timely news, analysis, and information regarding trends, educational opportunities, legislation, and NAMIC advocacy affecting insurance-industry issues, NAMIC Online has proven to be an invaluable asset to insurance- industry professionals as evidenced by its traffi c growth.

NAMIC’s media visibility continues to heighten, as national trade press such as Best Review, National Underwriter, Business Insurance and Insurance Journal regularly quote its leaders and cover association events. This presence, plus the power of NAMIC’s grassroots constituency, truly positions the association as a leading voice in the property casualty insurance industry.

The National Association of Mutual Insurance Companies 11 Fiscal Responsibility

Financially, NAMIC possesses a strong balance sheet and has reached all of its fi nancial objectives, including a solid reserve. NAMIC remains focused on advocacy and public policy as its core services – the services that all NAMIC members receive in exchange for their annual dues – and all other services provided by the association operate on a profi t-loss basis as self-supporting activities. This helps en- sure that NAMIC members receive the best dues value of any insurance trade association.

Consolidated Total Revenues Unaudited

Publications/AV .3% Magazine Advertising/Subscriptions 1.3% Seminars 4.5% Consolidated Interest 1.4% Total Expenses

Convention Unaudited 10.1% Dues Rent/ 45.6% Miscellaneous Federal Taxes 10.3% 1.7%

Marketing Insurance 8.3% Program 26.7% Communication/AV 9.8%

Administration 21.8%

Convention 9.7% Legislative Insurance 25.2% Programs 13.6% Building & Utililies 9.8%

12 The National Association of Mutual Insurance Companies Innovative Programs

For more than 20 years, NAMIC Insurance Agency (NIA) has specialized in distributing professional liability, specialty bonds and employee benefi ts to members of the National Association of Mutual Insurance Companies. During the past year, NIA contributed to the positive bottom line of the association by increasing its premium volume by more than 16 percent while introducing several new products, including identify theft coverage. Eighty-fi ve percent of NAMIC members now purchase insurance and benefi ts from NIA.

Every year since its inception in 1987, NAMIC Insurance Company (NAMICO) has reported a net income gain. Recognizing its fi nancial strength, last year NAMICO was upgraded from “A-” to “A” by A.M. Best. NAMICO also continued its history of making a distribution of pool profi ts to members of the NAMIC Reinsurance Facility, the thirteenth such consecutive distribution.

Assurance Partners Bank continues to expand its nationwide product offerings to member companies, employees and agents, and to focus on achieving profi tability. The bank continues to collaborate with others to provide new and diverse products. Activity from agents continues to increase for agency fi nancing, facility expansion and commercial referrals. Insurance companies utilizing the APB merchant servicing product that allows premiums to be paid with charge cards has experienced an exceptional 52 percent growth during the last 12 months. The bank’s newest offering is the 25 basis point premium† paid to NAMIC members only who maintain a Premier Money Market Account in excess of $50,000.

†Please check the current rates at www.assurancepartnersbank.com.

The National Association of Mutual Insurance Companies 13 Strength of Relationships

Assurance Partners Bank MoldUpdate.com NAMIC can help you respond to insureds’ needs by MoldUpdate.com offers clear and factual information providing a broad range of fi nancial services products in an attempt to offer a scientifi c and rational to your agents and customers through the nationwide, discourse concerning the issue of mold. federally chartered thrift institution of Assurance www.moldupdate.com Partners Bank. www.assurancepartnersbank.com NAMIC Insurance Agency (NIA) Nearly 85 percent of NAMIC member companies Crop Insurance Research Bureau (CIRB) are served with one or more of the major programs CIRB takes an active role at the federal government level, offered by NAMIC Insurance Agency and its group maintaining continuous liaison with legislators on issues life/health programs or property/casualty affecting the crop insurance industry. insurance programs. www.cropinsurance.org www.namicinsurance.com

Insurance Education Foundation (IEF) National Independent Statistical Service (NISS) Founded in 1988, the IEF is a charitable organization In its role as statistical agent, NISS collects and supported by donations from companies and individuals compiles insurance statistics from its member from within the insurance profession. The Foundation companies and furnishes reports to individual state seeks to improve understanding of insurance and its insurance departments that comply with role in society through the education of teachers their requirements. and students. www.niss-stat.org www.ief.org Professional Insurance Communicators Insurance Committee for Arson Control (ICAC) of America (PICA) The committee promotes public and private awareness PICA is an organization of insurance industry of arson and serves as an online repository of arson communicators dedicated to the continuing education information useful to the both public and private and professional development of its members and the communities interested in controlling arson through positive promotion of the insurance industry to better fi re/arson investigation, defense of determined its many audiences. arson insurance claims, and the criminal prosecution www.pro-ins-coa.org of arson cases. www.arsoncontrol.org Urban Insurance Partners Institute (UIPI) The mission of the Urban Insurance Partners Institute Insurance Loss Control Association (ILCA) is to help insurers develop a rewarding presence in ILCA focuses on reducing losses and educates loss urban communities. It is a leading insurance industry control professionals through its annual educational resource on urban affairs. conference and quarterly newsletter. NAMIC provides www.uipi.org lead support to ILCA and NAMIC Member Services serves as the ILCA liaison. www.insurancelosscontrol.org

14 The National Association of Mutual Insurance Companies Collaboration and Involvement

BOARD OF DIRECTORS Directors-at-Large ADVISORY COUNCIL Term Expires 2005 Chairman Barbara A. Baurer, Chairman F. Timothy Hegarty, Jr., CPCU CLU, ChFC, CPCU F. Timothy Hegarty, Jr., CPCU The Norfolk & Dedham Group COUNTRY Insurance and The Norfolk & Dedham Group Dedham, Massachusetts Financial Services Dedham, Massachusetts Bloomington, Illinois Chairman-Elect David L. Anderson, CPCU, PFMM Wayne F. White, CPA, PFMM John Bykowski Farm Mutual Insurance Company Home Mutual Fire SECURA Insurance Companies of Lincoln County Insurance Company Appleton, Wisconsin Canton, South Dakota Conway, Arkansas Philip E. Love Joyce Cunningham Vice-Chairman South Carolina Farm Bureau Mutual Arkansas State Association of Robert A. Wadsworth, Insurance Company Mutual Insurance Companies CPCU, CIC Cayce, South Carolina Fayetteville, Arkansas Preferred Mutual Insurance Company Directors-at-Large Normand Lafreniere, BA, MPA New Berlin, New York Term Expires 2006 Canadian Association of Brian Boyden, Mutual Insurance Companies Secretary/Treasurer CPCU, CLU, ChFC, FLMI Ottawa, Ontario, Canada John T. Hill, II, CPA State Farm Mutual Magna Carta Companies Insurance Company Brian E. Henman New York, New York Bloomington, Illinois Idaho State Association of Mutual Insurance Companies Past Chairmen David C. Poling. PFMM Meridian, Idaho John W. Fisher Farmers Mutual Relief Auto-Owners Insurance Company Association of Wyandot County Michael Davis, CIC Lansing, Michigan Upper Sandusky, Ohio Illinois Association of Mutual Insurance Companies David L. Anderson, CPCU, PFMM Crop Conference Director Franklin Grove, Illinois Farm Mutual Insurance Company of Term Expires 2004 Lincoln County, South Dakota Shawn Simpsen Peter R. L. Faber, CIC Canton, South Dakota Carthage Mutual Insurance Association Insurance Company of Connecticut Directors-at-Large Colfax, Illinois Litchfi eld, Connecticut Term Expires 2004 L. Keith Birkhead, CPCU Farm Conference Director David A. Hanson, JD Farmers Alliance Mutual Term Expires 2005 Kansas Association of Insurance Company Richard M. Raun, CIC Property and Casualty Insurance McPherson, Kansas Woodland Mutual Companies, Inc. Insurance Company Topeka, Kansas Jo Ann Kuschel, PFMM Carlton, Minnesota Boeuf & Berger Mutual Marty Marshall New Haven, Missouri Property Casualty Kentucky Mutual & Co-Op Fire Conference Director Insurance Association Gerald P. Schmidt, CPCU Term Expires 2006 Ghent, Kentucky Mutual of Enumclaw Daniel E. Stone Enumclaw, Washington Indiana Farmers Mutual Walter C. “Pete” Smythe, Insurance Company CPCU, AAI, CIC James F. Pinnock, FCIP Indianapolis, Indiana Maine Association of Stanley Mutual Insurance Companies Stanley, New Brunswick, Canada NAMIC Staff Liaison Auburn, Maine Charles M. Chamness

The National Association of Mutual Insurance Companies 15 Vernon Walsh Bernard N. Bourdeau Gerald R. Mueller Maryland Association of New York Insurance Wisconsin Association of Mutual Insurance Companies Association Inc. Mutual Insurance Companies Westminister, Maryland Albany, New York Madison, Wisconsin

Dale W. Little, CIC, LIC Graham R. Neville Alvin H. Schuettpelz, CIC Insurance Institute of Michigan North Carolina Association Wisconsin Insurance Alliance Flint, Michigan of Mutual Insurance Companies Lena, Wisconsin Smithfi eld, North Carolina Lyle Rhodebeck NAMIC Staff Liaison Ohio Association of Barry Townsend Charles M. Chamness Mutual Insurance Companies North Dakota Association Columbus, Ohio of Farm Mutual FARM CONFERENCE Insurance Companies BOARD OF DIRECTORS Cherylee A. Ask LaMowe, North Dakota Minnesota Association of Chairman Farm Mutual Insurance Companies Glen Johnson, BA, CAE Peggy McDaniel, PFMM St. Cloud, Minnesota Ontario Mutual Old Missouri Mutual Insurance Association Insurance Company Joseph J. Pingatore, JD, FLMI Cambridge, Ontario, Canada Buffalo, Missouri Minnesota Association of Mutual Insurance Companies M. Paige Raski, MBA Chairman-Elect Arden Hills, Minnesota Pennsylvania Association of Marilyn Schwickerath, PFMM Mutual Insurance Companies Cerro Gordo Mutual Ron Borders Millville, Pennsylvania Central Iowa Mutual Missouri Association of Mutual Insurance Association Insurance Companies Joy Groen Mason City, Iowa Sikeston, Missouri South Dakota Association of Mutual Insurance Companies Vice-Chairman Donna R. Brekke, PFMM Scotland, South Dakota Doug Sullivan, PFMM Montana Association of Mutual Svea Mutual Insurance Company Insurance Companies Russell M. Fischer, Orion, Illinois Plentywood, Montana CPCU, CIC, AU South Dakota Insurance Alliance Immediate Past Chairman Ken Kolpin Milbank, South Dakota Dave Poling, PFMM Mutual Insurance Upper Sandusky, Ohio Association of Iowa Charles E. Gardner, Toledo, Iowa CPCU, CIC, AAI, CPIA Directors-at-Large Tennessee Association of Term Expires 2004 Tim Harding Farm Mutual Insurance Companies Tim Iverson Mutual Insurance Companies Morristown, Tennessee Prairie Pine Mutual Association of Indiana Insurance Company Tell City, Indiana Donald Ahrens Parkers Prairie, Minnesota Texas Association of Mutual L. Wayne Johnson, PFMM Insurance Companies Bruce Thomas, PFMM Nebraska State Association of Mutual Bernham, Texas Heartland Mutual Insurance Company Insurance Companies Fort Dodge, Iowa Clay Center, Nebraska John S. Case Virginia Association of Mutual Directors-at-Large J. A. (Sandy) Morrison, FCIP Insurance Companies Term Expires 2005 New Brunswick Mutual Richmond, Virginia Julie (Buchmeier) Thompson, PFMM Insurance Association German Mutual Insurance Association Fredericton, New Brunswick, Canada John B. Arbuckle, Jr., of Nebraska CIC, AAI, PFMM, CRM Auburn, Nebraska James P. Ayres, CPCU West Virginia Association of New Jersey Association of Mutual Mutual Insurance Companies Glenn Lambert, PFMM Insurance Companies Lewisburg, West Virginia Cascade Farmers Mutual Insurance Branchville, New Jersey Great Falls, Montana

16 The National Association of Mutual Insurance Companies Directors-at-Large Sandra Parrillo Michael Merder Term Expires 2006 Providence Mutual Fire NAMIC Insurance Company Randy Sabers Insurance Company Indianapolis, Indiana McCook Farm Mutual Insurance Warwick, Rhode Island Company of South Dakota ADVISORS Salem, South Dakota Directors-at-Large Term Expires 2006 Craig Abbott Tim Salge Jay Chadwick Manning & Napier Farmers Mutual Fire Insurance Tuscarora Wayne Mutual Rochester, New York Association of Comal County Insurance Company New Braunfels, Texas Wyalusing, Pennsylvania Charles Stamey Manning & Napier Farm Conference Director Tom Dials Columbus, Ohio Richard M. Raun, CIC Armed Forces Insurance Exchange Woodland Mutual Leavenworth, Kansas ACCOUNTING COMMITTEE Insurance Company Carlton, Minnesota Gary Myers Chairman Shelter Mutual Insurance Company Michael B. Olson, CLU, CPCU NAMIC Staff Liaison Columbia, Missouri State Farm Mutual Wes Gainey, CAE Insurance Company Stuart Henderson Bloomington, Illinois PROPERTY CASUALTY Western National Mutual CONFERENCE BOARD OF Insurance Company John S. Barret DIRECTORS Minneapolis, Minnesota Rockingham Mutual Insurance Company Chairman Property/Casualty Harrisonburg, Virginia Judy Jackson Conference Director NLC Insurance Companies Daniel E. Stone Don Blackwell Norwich, Connecticut Indiana Farmers Mutual Indiana Lumbermens Insurance Company Mutual Insurance Company Chairman-Elect Indianapolis, Indiana Indianapolis, Indiana G. Richer (Rick) Budke Sublimity Insurance Company NAMIC Staff Liaison Jennifer Burton, CPA Sublimity, Oregon Kristen Sizelove Dixon Odom, PLLC High Point, North Carolina Vice Chairman NAMIC 401(K) TRUSTEES David L. Lehman Eileen Fhaner Mennonite Mutual Chairman Auto-Owners Insurance Company Insurance Company Jerry Wollam Lansing, Michigan Orrville, Ohio NAMIC Insurance Company Indianapolis, Indiana Ronald A. DeLorenzo, Immediate Past Chairman Norfolk and Dedham Group Philip Haynes Gregg A. Dykstra, JD Dedham, Massachusetts Peel Mutual Insurance Company National Association of Mutual Brampton, Ontario, Canada Insurance Companies Tony Paolozzi Indianapolis, Indiana Utica Mutual Insurance Company Directors-at-Large Utica, New York Term Expires 2005 Megan Trainor Darwin Copeman National Association of Mutual James Schacht Cameron Mutual Group Insurance Companies PricewaterhouseCoopers LLP Cameron, Missouri Indianapolis, Indiana Chicago, Illinois

Directors-at-Large Rae Malesh Rock J. Schindler, CPA Term Expires 2004 National Association of Mutual Benfi eld Group Barbara Baurer, Insurance Companies Minneapolis, Minnesota CLU, ChFC, CPCU Indianapolis, Indiana COUNTRY Insurance and Christine Sears Financial Services Penn National Insurance Company Bloomington, Illinois Harrisburg, Pennsylvania

The National Association of Mutual Insurance Companies 17 Glenn Shelly, CPA Everett Truttmann Beth Murphy Lititz Mutual Insurance Company State Farm Mutual Grange Mutual Casualty Lititz, Pennsylvania Insurance Company Insurance Company Bloomington, Illinois Columbus, Ohio Phillip Storm, CPA Farmers & Merchants Mutual Charles P. Breidstadt, Dickie Reasonover Fire Insurance Company CPCU, CLU, FLMI Tennessee Farmers Insurance Calumet, Michigan Nationwide Mutual Knoxville, Tennessee Insurance Company Gary Strohm, CPA Columbus, Ohio Christopher Spanos, Esq. Strohm Ballweg, LLP Country Insurance and Madison, Wisconsin NAMIC Staff Liaison Financial Services Tami Stanton Bloomington, Illinois NAMIC Staff Liaison William D. Boyd, CPA NAMIC AUXILIARY OFFICERS Neil Wallace State Farm Mutual AUTOMOBILE ISSUES President Insurance Company WORKING GROUP Shirley Ocker Winter Haven, Florida Cameron, Missouri Chairman NAMIC Staff Liaison LaVawn Coleman Vice President Jason Terrell Grange Mutual Casualty Linda Lewis Insurance Company Canoga Park, California CLAIMS COMMITTEE Columbus, Ohio Secretary Chairman John Reiersen Marilyn Copeland Todd Geddes Commercial Mutual Jefferson, Iowa Kentucky Farm Bureau Insurance Company Louisville, Kentucky Kingston, New York Immediate Past President Dee Johnson John Arbuckle, Jr., PFMM Rick Holbein Clay Center, Nebraska Farmers Home Fire State Auto Insurance Company Insurance Company Columbus, Ohio NAMIC Staff Liaison of West Virginia Rae Malesh Lewisburg, West Virginia Marcus Hill Agricultural Workers Mutual CLAIM ARBITRATION Jerry Balek Insurance Company COMMITTEE Grinnell Mutual Fort Worth, Texas Reinsurance Company Chairman Grinnell, Iowa Mike Puerner Lisa Kneeskern Hastings Mutual Insurance Company Farm Bureau Mutual Timothy Begley Hastings, Michigan Insurance Company Harford Steam Boiler West Des Moines, Iowa Inspection & Insurance Company John H. Gettemans Boston, Massachusetts Chicago Mutual Company Melinda Carlson Chicago, Illinois Auto-Owners Insurance Company Wes Broseke Lansing, Michigan Ohio Mutual Group Mike Cook Bucyrus, Ohio Virginia Farm Bureau Mutual Cham Light, Jr. Insurance Company Nationwide Mutual Wayne Clark Richmond, Virginia Insurance Company Grinnell Mutual Lynchburg, Virginia Reinsurance Company Alan Ledbetter Grinnell, Iowa Liberty Mutual Group Dennis Motsinger Boston, Massachusetts United Farm Family Mutual Bill Ellingson Insurance Company Hamburg-Stark Mutual Indianapolis, Indiana Insurance Company Coon Valley, Wisconsin

18 The National Association of Mutual Insurance Companies Keith Locy Rebecca Dean Immediate Past Chairman SECURA Insurance Companies Celina Insurance Group John W. Fisher Appleton, Wisconsin Celina, Ohio Auto-Owners Insurance Company Lansing, Michigan Roger Needham Kathy Good Forreston Mutual Goodville Mutual FARM CONFERENCE Insurance Company Casualty Company REPRESENTATIVES Forreston, Illinois New Holland, Pennsylvania Chairman Kathy Wilcox Paul Holmquist Peggy McDaniel, PFMM Badger Mutual Motorists Mutual Old Missouri Mutual Insurance Company Insurance Company Insurance Company Milwaukee, Wisconsin Columbus, Ohio Buffalo, Missouri

FMC Board Liaison Patrick O’Leary Chairman-Elect Tim Iverson The Bar Plan Mutual Marilyn Schwickerath, PFMM Prairie Pine Mutual Insurance Company Cerro Gordo Mutual Insurance Company St. Louis, Missouri Central Iowa Mutual Parkers Prairie, Minnesota Insurance Association David M. Roesener Mason City, Iowa NAMIC Staff Liaison Brotherhood Mutual Wes Gainey, CAE Insurance Company Vice-Chairman Fort Wayne, Indiana Doug Sullivan, PFMM COMPENSATION COMMITTEE Svea Mutual Insurance Company D. Eugene Stetler Orion, Illinois Chairman American Modern Home F. Timothy Hegarty, Jr., CPCU Insurance Company Immediate Past Chairman The Norfolk & Dedham Group Cincinnati, Ohio Dave Poling, PFMM Dedham, Massachusetts Farmers Mutual Relief Association NAMIC Staff Liaisons of Wyandot County Wayne F. White, CPA, PFMM Roger H. Schmelzer, JD, MPA Upper Sandusky, Ohio Home Mutual Fire Marsha Harrison, JD Insurance Company Directors-at-Large Conway, Arkansas CONVENTION PLANNING Julie Buchmeier, PFMM COMMITTEE German Mutual Insurance John T. Hill, II, CPA Association of Nebraska Magna Carta Companies Chairman Auburn, Nebraska New York, New York F. Timothy Hegarty, Jr., CPCU The Norfolk & Dedham Group Tim Iverson John W. Fisher Dedham, Massachusetts Prairie Pine Mutual Auto-Owners Insurance Company Insurance Company Lansing, Michigan Chairman-Elect Parkers Prairie, Minnesota Wayne F. White, CPA, PFMM NAMIC Staff Liaison Home Mutual Fire Glenn Lambert, PFMM Charles M. Chamness Insurance Company Cascade Farmers Mutual Insurance Conway, Arkansas Great Falls, Montana COMPLIANCE COMMITTEE Vice-Chairman Randy Sabers Chairman Robert A. Wadsworth, McCook Farm Mutual Insurance Charles P. Breidstadt, CPCU, CIC Company of South Dakota CPCU, CLU, FLMI Preferred Mutual Insurance Salem, South Dakota Nationwide Insurance Company Company Columbus, Ohio New Berlin, New York Tim Salge Farmers Mutual Fire Insurance Robert Clegg, III Secretary/Treasurer Association of Comal County Sentry Insurance Company John T. Hill, II, CPA New Braunfels, Texas Stevens Point, Wisconsin Magna Carta Companies New York, New York

The National Association of Mutual Insurance Companies 19 Bruce Thomas, PFMM Gary Myers Farm Mutual Conference Heartland Mutual Insurance Shelter Mutual Insurance Company Wes Gainey, CAE Company Columbia, Missouri Fort Dodge, Iowa Property Casualty Conference Sandra Parrillo Kristen Sizelove Farm Conference Director Providence Mutual Fire Richard M. Raun, CIC Insurance Company Merit Society Woodland Mutual Warwick, Rhode Island Wes Gainey Insurance Company Carlton, Minnesota Property/Casualty NAMIC Auxiliary Conference Director Rae Malesh PROPERTY CASUALTY Daniel E. Stone CONFERENCE REPRESENTATIVES Indiana Farmers Mutual CIRB Mid-Year Meeting Insurance Company Paul Horel Chairman Indianapolis, Indiana Crop Insurance Research Bureau Judy Jackson Overland Park, Kansas NLC Insurance Companies CIRB MID-YEAR MEETING Norwich, Connecticut REPRESENTATIVES FARM MUTUAL CONFERENCE EDITORIAL ADVISORY Chairman-Elect Chairman COMMITTEE G. Richer (Rick) Budke Scott Rutledge Sublimity Insurance Company Farmers Mutual Hail Insurance Chairman Sublimity, Oregon Des Moines, Iowa Julie (Buchmeier) Thompson, PFMM German Mutual Insurance Immediate Past Chairman Shirley Linn Association of Nebraska Philip Haynes Grinnell Mutual Auburn, Nebraska Peel Mutual Insurance Company Reinsurance Company Brampton, Ontario, Canada Grinnell, Iowa April Compton, CPCU Mid-State Farmers Mutual Barbara Baurer, Shawn Simpsen Insurance Company CLU, ChFC, CPCU Carthage Mutual New Haven, Indiana COUNTRY Insurance and Insurance Company Financial Services Colfax, Illinois Niles Deden, PFMM Bloomington, Illinois Hay Creek Mutual Fire Jim Aldeman Insurance Company Jay Chadwick American Agricultural Goodhue, Minnesota Tuscarora Wayne Mutual Insurance Company Insurance Company Park Ridge, Illinois Richard Main, PFMM Wyalusing, Pennsylvania Pocahontas County Mutual NAMIC Auxiliary Insurance Association Tom Dials Representative Laurens, Iowa Armed Forces Insurance Exchange Shirley Ocker Leavenworth, Kansas Cameron, Missouri Randy Sabers McCook Farm Mutual Insurance James F. Eldridge MERIT SOCIETY Company of South Dakota American Family Mutual REPRESENTATIVE Salem, South Dakota Insurance Company Charles Smith, PFMM Madison, Wisconsin Chairman Billings Mutual Insurance Company Gary Thompson Billings, Missouri Stuart Henderson Columbia Mutual Western National Mutual Insurance Company Todd Stephens Insurance Company Columbia, Missouri Farmers Mutual Insurance Company Minneapolis, Minnesota Gentry, Arkansas NAMIC STAFF LIAISONS David L. Lehman Larry Wentrcek, PFMM Mennonite Mutual Convention Coordinator Farmers Mutual Protective Insurance Company Larry Baile Association of Texas Orrville, Ohio Temple, Texas

20 The National Association of Mutual Insurance Companies NAMIC Staff Liaisons Gail Steward, PFMM Wayne F. White, CPA, PFMM Wes Gainey, CAE Adair County Mutual Home Mutual Fire Matt Keating Insurance Association Insurance Company Greenfi eld, Iowa Conway, Arkansas FARM MUTUAL CONFERENCE EDUCATION COMMITTEE Bruce Thomas, PFMM NAMIC Staff Liaison Heartland Mutual Wes Gainey, CAE Chairman Insurance Company Marilyn Schwickerath, PFMM Ft. Dodge, Iowa FARM MUTUAL CONFERENCE Cerro Gordo Mutual Insurance MEMBER SERVICE COMMITTEE Central Iowa Mutual Terry Wendorff, CPCU Insurance Association Wisconsin Reinsurance Company Chairman Mason City, Iowa Madison, Wisconsin Glenn Lambert, PFMM Cascade Farmers Mutual Donna Brekke, PFMM NAMIC Staff Liaison Insurance Company Farmers Mutual Fire Wes Gainey, CAE Farm Great Falls, Montana Insurance Company Plentywood, Montana MUTUAL CONFERENCE Karen Allen LEADERSHIP DEVELOPMENT Farmers Mutual Hail Insurance Donald Hemman, PFMM COMMITTEE Company of Iowa Arnsberg Farmers Mutual Des Moines, Iowa Insurance Company Chairman Uniontown, Missouri Dave Poling, PFMM Lori Bondhus Farmers Mutual Relief Association RAM Mutual Insurance Company Alan R. Hewitt, PFMM of Wyandot County Grand Rapids, Minnesota Dakota Farm Mutual Upper Sandusky, Ohio Insurance Company Rex Hoggart Brant, South Dakota Peggy McDaniel, PFMM Cameron Country Mutual Old Missouri Mutual Insurance Company Ronald Kuethe Insurance Company Columbia, Missouri Farmers Mutual Hail Buffalo, Missouri Insurance Company of Iowa Peggy McDaniel, PFMM Des Moines, Iowa Beverly Fick, PFMM Old Missouri Mutual Bradford Mutual Insurance Company Justin Lear, PFMM Insurance Company Buffalo, Missouri Polk County Mutual Franklin Grove, Illinois Insurance Company Doug Modrell Bolivar, Missouri Richard M. Raun, CIC Wisconsin Reinsurance Corporation Woodland Mutual Waukee, Iowa Susan Pickens, CPCU, AIS Insurance Company Grinnell Mutual Carlton, Minnesota Tim Salge Reinsurance Company Farmers Mutual Fire Insurance Grinnell, Iowa Marilyn Schwickerath, PFMM Association of Comal County Cerro Gordo Mutual New Braunfels, Texas Jack Randall, CIC, PCLA Central Iowa Mutual Cameron Country Mutual Insurance Association NAMIC Staff Liaison Insurance Company Mason City, Iowa Wes Gainey, CAE Cameron, Missouri Duane Smith, PFMM FEDERAL TAX STEERING Keith Rollings, PFMM Farmers Mutual Insurance Company COMMITTEE Nixa Mutual Insurance Company of Johnson & Shelby Counties Nixa, Missouri Franklin, Indiana Chairman Maribeth Q. Williamson Mike Soldan, PFMM Douglas Sullivan, PFMM AMICA Mutual Insurance Company Spring Valley Mutual Svea Mutual Insurance Company Lincoln, Rhode Island Insurance Company Orion, Illinois Spring Valley, Minnesota

The National Association of Mutual Insurance Companies 21 Bernard Cinkoske Rick Shoger Jane Meinerding United Farm Family Mutual Madison Mutual Insurance Celina Mutual Insurance Company Insurance Company Company Celina, Ohio Indianapolis, Indiana Edwardsville, Illinois Kim Smith Mark Coffeen Douglas Steele Indiana Farmers Mutual Sentry Insurance Company Farmers Home Insurance Company Insurance Company Stevens Point, Wisconsin of Knox County Indianapolis, Indiana Vincennes, Indiana Roger Dinella Janet Stonum American International Group, Inc. Barbara Wood Cameron Mutual New York, New York Farmers Mutual Insurance Insurance Company Association Cameron, Missouri Steve Knutson Washington, Iowa RAM Mutual Insurance Company Megan Trainor Esko, Minnesota Sharon Woodward NAMIC Baltimore Equitable Society Indianapolis, Indiana Steve McCoin Baltimore, Maryland COUNTRY Mutual Insurance Deborah Vanhorn Company NAMIC Staff Liaison Rockingham Mutual Insurance Bloomington, Illinois Edwina Payton Harrisonburg, Virginia Property Casualty Conference Anthony Paolozzi Human Resources Committee NAMIC Staff Liaison Utica Mutual Insurance Company Kristen Sizelove Hartford, New York Chairman Marilyn Deal WORKERS COMPENSATION David R. Proctor Pharmacists Mutual TASK FORCE Alfa Mutual Insurance Company Insurance Company Montgomery, Alabama Algona, Iowa Chairman George Geders Michael Remmes Holly Casavant Monroe Guaranty State Farm Mutual Wisconsin Mutual Insurance FCCI Insurance Group Insurance Company Madison, Wisconsin Carmel, Indiana Bloomington, Illinois Sharon Clifford Robert J. Kellogg Michael A. Zabinski The Norfolk & Dedham Group New Mexico Mutual Pekin Insurance Companies Dedham, Massachusetts Casualty Company Pekin, Illinois Albuquerque, New Mexico Pam Emmendorfer Tax Counsel Pioneer State Mutual Ron Boggs Susan Hotine Insurance Company First Nonprofi t Scribner, Hall & Thompson, LLP Flint, Michigan Insurance Company Washington, District of Columbia Chicago, Illinois NAMIC Staff Liaison Mike Horvath David A. Winston, JD Ohio Mutual Insurance Company Tom Callanan Marliss Browde Bucyrus, Ohio Workers Compensation Fund Group GROUP INSURANCE TRUSTEES William Buffi ngton Murray, Utah Penn National Insurance Chairman Harrisburg, Pennsylvania Dave Austin Charles M. Chamness Penn National Insurance National Association of Mutual Gina Larrow Harrisburg, Pennsylvania Insurance Companies Co-Operative Insurance Companies Indianapolis, Indiana Middlebury, Vermont Dennis Beckman EMC Insurance Companies Evelyn Miculka Marilyn Leppin Des Moines, Iowa Hochheim Prairie Farm Mutual Oregon Mutual Insurance Company Insurance Association McMinnville, Oregon Yoakum, Texas

22 The National Association of Mutual Insurance Companies John F. Marr LEGISLATIVE STEERING Douglas Steele Maine Employers Mutual COMMITTEE Farmers Home Insurance Insurance Company Company of Knox County Portland, Maine Chairman Vincennes, Indiana Kevin M. Meskell Alan Smith Quincy Mutual Fire John Tatum Ohio Casualty Insurance Company Farm Bureau Mutual Insurance Company Quincy, Massachusetts Insurance Company Fairfi eld, Ohio West Des Moines, Iowa Jim Bricker NAMIC Staff Liaisons PEMCO Insurance Companies Justin A. Whitefi eld Marsha Harrison Olympia, Washington Oklahoma Farm Bureau Kristen Sizelove Mutual Insurance Company Tami Stanton Del Chisolm Oklahoma City, Oklahoma Armed Forces Insurance Exchange LEGAL ADVISORY COMMITTEE Leavenworth, Kansas Bill Woodbury Auto-Owners Insurance Company Chairman Jack Crawford Lansing, Michigan Tom Dietrich Main Street America Group Nationwide Insurance Company Keen, New Hampshire NAMIC Staff Liaisons Columbus, Ohio David A. Winston, JD Jeff Kusch Marliss Browder Dennis G. Day, CPCU, ARe Austin Mutual Insurance Company Grinnell Mutual Minneapolis, Minnesota LOSS CONTROL COMMITTEE Reinsurance Company Grinnell, Iowa Randy Lewis Chairman Grange Insurance Group Steven N. Samuels Joe Pingatore Seattle, Washington Humboldt Mutual MSI Insurance Insurance Association Gahanna, Ohio Joe Moseley Humboldt, Iowa Shelter Insurance Companies John Spielberger Columbia, Missouri Vice-Chairman Harford Mutual James G. Owens, CPCU Insurance Companies Jeffrey D. Rouch Tama County Mutual Bel Air, Maryland Nationwide Insurance Company Insurance Association Washington, District of Columbia Traer, Iowa Jim Toomey Mutual Reinsurance Bureau Dennis Rowe Don Davis Cherry Valley, Illinois Penn National Insurance Company COUNTRY Insurance and Harrisburg, Pennsylvania Financial Services David Tschantz Bloomington, Illinois Wayne Mutual Insurance Company Timothy B. Salge Wooster, Ohio Farmers Mutual Fire Insurance Gary Downey, CPCU, ALCM Association of Comal County Grinnell Mutual Bill Woodbury New Braunfels, Texas Reinsurance Company Auto-Owners Insurance Company Grinnell, Iowa Lansing, Michigan John Smith Pennsylvania Lumbermens Blaine Hardman Gary Wright Mutual Insurance Company Kansas Farm Bureau United Farm Family Mutual Insurance Philadelphia, Pennsylvania Westmoreland, Kansas Company Indianapolis, Indiana Dan Sondles Dan Hinshaw, CPCU, ALCM Westfi eld Group State Farm Mutual NAMIC Staff Liaison Westfi eld Center, Ohio Insurance Company Gregg A. Dykstra, JD Bloomington, Illinois

The National Association of Mutual Insurance Companies 23 Ray Kilmer Secretary/Treasurer PENSION ADMINISTRATIVE Indiana Farmers Mutual Wes Gainey, CAE COMMITTEE Insurance Company National Association of Mutual Delphi, Indiana Insurance Companies Chairman Indianapolis, Indiana Charles M. Chamness Steve Prosser NAMIC Central Illinois Mutual Immediate Past Chair Indianapolis, Indiana Insurance Company Alvin H. Schuettpelz, CIC Villa Grove, Illinois Maple Valley Mutual Insurance Steve Buckman Lena, Wisconsin Helenville Mutual James D. Redinger Insurance Company Hartford Steam Boiler Directors Helenville, Wisconsin Inspection & Insurance Company Term Expires 2004 Hartford, Connecticut Richard Main, PFMM Lester Hook Pocahontas County Mutual Farmers Mutual Insurance Mark Splinter Insurance Association Company of Macon Wisconsin Reinsurance Corporation Laurens, Iowa Macon, Missouri Wausau, Wisconsin Duane Smith, PFMM Wilbur Maas Robert R. Titter, Farmers Mutual Insurance Company Farmers Mutual Insurance CPCU, ALCM, CFPS of Johnson and Shelby Counties Association of Hull Robert R. Titter Consulting Franklin, Indiana Hull, Iowa Lexington, Ohio Bruce Thomas, PFMM Patrick Faga FMC Board Liaison Heartland Mutual Central Iowa Mutual Bruce Thomas, PFMM Insurance Association Insurance Association Heartland Mutual Fort Dodge, Iowa Story City, Iowa Insurance Company Fort Dodge, Iowa Term Expires in 2005 Trustee L. Wayne Johnson, PFMM Joseph Gaafar Staff Liaison Clay County Mutual National City Bank and Trust Wes Gainey, CAE Insurance Company Indianapolis, Indiana Clay Center, Nebraska MERIT SOCIETY BOARD Investment Manager OF DIRECTORS David Lehman Chuck Stamey Mennonite Mutual Manning and Napier Chairman Insurance Company Investment Managers Gary Thompson Orrville, Ohio Dublin, Ohio Columbia Mutual Insurance Company Kenneth Selzer Administrator Columbia, Missouri Aon Re, Inc. Ken Keene Chicago, Illinois McCready and Keene, Inc. Chairman-Elect Indianapolis, Indiana John Arbuckle, Jr., PFMM Term Expires in 2006 Farmers Home Fire Insurance Don Hughes, PFMM Staff Liaison Company of West Virginia Hope Mutual Insurance Jerry D. Wollam Lewisburg, West Virginia Tyler, Minnesota NAMIC Counsel Vice Chairman Carrol Lambert Robert J. Spolyar, Esq. Donald Preusser Norfolk Mutual Insurance Company Farmers Home Mutual Insurance Simcoe, Ontario, Canada POLITICAL ACTION COMMITTEE Bloomington, Minnesota (PAC) BOARD OF TRUSTEES Tim Salge Farmers Mutual Fire Insurance Chairman Association of Comal County William Siclari New Braunfels, Texas Patrons Mutual Insurance Company Glastonbury, Connecticut

24 The National Association of Mutual Insurance Companies Vice Chairman NAMIC Chairman-Elect Rick Parks Robert Jeckel Wayne F. White, CPA, PFMM West Bend Mutual Insurance Frontier Mutual Insurance Company Home Mutual Fire West Bend, Wisconsin Lincoln, Illinois Insurance Company Conway, Arkansas Timothy Riedl Trustees SECURA Insurance Companies Don Ahrens NAMIC Vice Chairman Appleton, Wisconsin Germania Farm Mutual Robert Wadsworth Insurance Association Preferred Mutual Beverly Skopic Brenham, Texas Insurance Company Mutual Benefi t Insurance Company New Berlin, New York Huntingdon, Pennsylvania Vicky Ashker Battle Creek Mutual Legislative Steering Dave Ueeck Insurance Company Committee Chairman State Farm Mutual Battle Creek, Nebraska Kevin Meskell Insurance Company Quincy Mutual Fire Bloomington, Illinois John Bishop Insurance Company Motorists Mutual Quincy, Massachusetts Loretta Walters Insurance Company Farm Bureau Mutual Columbus, Ohio David A. Winston, JD Insurance Company NAMIC West Des Moines, Iowa Rick Ewert Washington, D.C. Partners Mutual Jim Zoerkler Insurance Company Treasurer Harleysville Mutual Milwaukee, Wisconsin Gregg A. Dykstra, JD Insurance Company National Association of Mutual Harleysville, Pennsylvania Michael Heister Insurance Companies Ohio Mutual Insurance Company Indianapolis, Indiana Staff Liaison Cincinnati, Ohio Kristen Sizelove NAMIC PAC Director Brent Larsen Christy Kendall PROPERTY CASUALTY Grinnell Mutual CONFERENCE Reinsurance Company PROPERTY CASUALTY MANAGEMENT CONFERENCE Grinnell, Iowa CONFERENCE ADVISORY COMMITTEE COMMERCIAL LINES Misha Lee UNDERWRITING COMMITTEE Chairman Sentry Insurance Company Barbara Baurer, Madison, Wisconsin Chairman CLU, ChFC, CPCU Mike Faron COUNTRY Insurance and John Paul The Norfolk and Dedham Group Financial Services Western Iowa Mutual Dedham, Massachusetts Bloomington, Illinois Insurance Association Council Bluffs, Iowa Pat Clark John Smith Hartford Steam Boiler Pennsylvania Lumbermens Michael Yeager Basking Ridge, New Jersey Mutual Insurance Company Mutual Insurance Company Philadelphia, Pennsylvania of Lehigh County Karen McMaster Allentown, Pennsylvania Brotherhood Mutual Judy Jackson Insurance Company NLC Insurance Companies Ex-offi cio Member Fort Wayne, Indiana Norwich, Connecticut Charles M. Chamness NAMIC Ed Mulvey Brett Clausen Indianapolis, Indiana Pekin Insurance Farm Bureau Mutual Pekin, Illinois Insurance Company NAMIC Chairman West Des Moines, Iowa F. Timothy Hegarty, Jr. Norfolk and Dedham Group Dedham, Massachusetts

The National Association of Mutual Insurance Companies 25 Rod Matthews PROPERTY CASUALTY PROPERTY CASUALTY State Farm Mutual CONFERENCE PERSONAL LINES CONFERENCE Insurance Company UNDERWRITING COMMITTEE TECHNOLOGY COMMITTEE Bloomington, Illinois Chairman Chairman Margie Scherer Cliff Nevins Mike Albinger Mutual Reinsurance Bureau Shelter Insurance Company ACUITY Cherry Valley, Illinois Columbia, Missouri Sheboygan, Wisconsin

Gerald P. Schmidt, CPCU Don Ahrens Mary Kay Aylsworth Mutual of Enumclaw Germania Farm Mutual Indiana Farmers Mutual Enumclaw, Washington Insurance Association Indianapolis, Indiana Bernham, Texas NAMIC Staff Liaison John Boswell Kristen Sizelove Judy Dammeyer Partners Mutual Insurance Celina Mutual Waukesha, Wisconsin PROPERTY CASUALTY Insurance Company CONFERENCE Celina, Ohio Bob Buchanan MARKETING COMMITTEE Auto-Owners Insurance Company Terry Dowty Lansing, Michigan Chairman Chicago Mutual Jim Melchoir Insurance Company Karen Fulton Farmers Home Group Chicago, Illinois ARI Mutual Insurance Minneapolis, Minnesota Lawrenceville, New Jersey Jeff Ewins Tom Barratt COUNTRY Insurance and Michael Ulmer, MBA Hartford Steam Boiler Financial Services NAMIC Lisle, Illinois Bloomington, Illinois Indianapolis, Indiana

Kris Berkholder Jim Kaster, CPCU NAMIC Staff Liaison Wisconsin Mutual Columbia Insurance Group Kristen Sizelove Insurance Company Columbia, Missouri Madison, Wisconsin PUBLIC AFFAIRS COMMITTEE Tim Mullaney Tom Faulconer SECURA Insurance Companies Chairman United Farm Bureau Casualty Appleton, Wisconsin John Rosenstock Insurance Company State Farm Mutual Indianapolis, Indiana Kim Pruett Insurance Company Grange Mutual Casualty Bloomington, Illinois Rodney Foerster Insurance Company Germania Farm Mutual Columbus, Ohio Liz Reynolds, API Insurance Association Farm Bureau Insurance Brenham, Texas Ralph Smithers, Jr., CPCU Indianapolis, Indiana Motorists Insurance Group George W. Francis, AU Columbus, Ohio Mary Weller NLC Insurance Companies Sentry Insurance Company Norwich, Connecticut Debbie Vanderploeg Stevens Point, Wisconsin United Farm Bureau H. Gregg Huey Indianapolis, Indiana Eugenie Kolivosky, CPCU Indiana Farmers Mutual Auto-Owners Insurance Company Insurance Company NAMIC Staff Liaison Lansing, Michigan Indianapolis, Indiana Kristen Sizelove Jerry Davies NAMIC Staff Liaison Personal Insurance Kristen Sizelove Federation of California Sacramento, California

26 The National Association of Mutual Insurance Companies NAMIC Staff Liaisons Larry Heidebrink Steven C. Elliott JD, CPCU, CLU Rick Nelson, APR Southwest Mutual Pennsylvania Association of Laura Biddle-Bruckman Insurance Company Mutual Insurance Companies Adrian, Minnesota Harrisburg, Pennsylvania REGULATORY STRUCTURE TASK FORCE Stuart Birn Michael A. Gunning Auto-Owners Personal Insurance Bill O’Reilly Insurance Company Federation of California Sentry Insurance Company Lansing, Michigan Sacramento, California Stevens Point, Wisconsin Warren Heck David L. Hill Craig Zimpher Greater New York Mutual State Farm Mutual Nationwide Mutual Insurance Company Insurance Company Insurance Company New York, New York Bloomington, Illinois Columbus, Ohio Wayne F. White, CPA, PFMM Paul Holmquist Dale Schuh Home Mutual Fire Motorists Mutual Sentry Insurance Company Insurance Company Insurance Company Stevens Point, Wisconsin Conway, Arkansas Columbus, Ohio

Dan Carmichael NAMIC Staff Liaisons Lynn B. Jongleux Ohio Casualty Insurance Company David A. Winston, JD Indiana Farm Bureau Fairfi eld, Ohio Roger H. Schmelzer, JD, MPA Insurance Companies Indianapolis, Indiana David L. Anderson, CPCU, PFMM STATE AFFAIRS COMMITTEE Farm Mutual Insurance Daniel J. Kelso Company of Lincoln County Chairman Ohio Insurance Institute Canton, South Dakota Michael McCarter Columbus, Ohio American International Group, Inc. David L. Hill New York, New York Brent Larsen State Farm Mutual Grinnell Mutual Insurance Company Stuart Birn Reinsurance Company Bloomington, Illinois Auto-Owners Insurance Company Grinnell, Iowa Lansing, Michigan Gerald Roach Misha Lee Mutual Assurance Bernard N. Bourdeau Sentry Insurance Company Society of Virginia New York State Madison, Wisconsin Richmond, Virginia Insurance Association Albany, New York Marcus Marsh Gerald P. Schmidt, CPCU Minnesota Association of Farm Mutual of Enumclaw Charles P. Breidstadt, Mutual Insurance Companies Insurance Company CPCU, CLU, FLMI St. Cloud, Minnesota Enumclaw, Washington Nationwide Insurance Company Columbus, Ohio Kent Osborn John Bykowski Cameron Mutual SECURA Insurance Companies Roger Brown Insurance Company Appleton, Wisconsin Harleysville Mutual Cameron, Missouri Insurance Company John Paul Harleysville, Pennsylvania David M. Roesener Western Iowa Mutual Brotherhood Mutual Insurance Company Charlie Burhan Insurance Company Council Bluffs, Iowa Liberty Mutual Group Fort Wayne, Indiana Schaumburg, Illinois Kevin Meskell Alan B. Smith Quincy Mutual Fire LaVawn D. Coleman, CPCU, ARe Ohio Casualty Group Insurance Company Grange Mutual Casualty Fairfi eld, Ohio Quincy, Massachusetts Insurance Company Columbus, Ohio

The National Association of Mutual Insurance Companies 27 Charles Stern Robert Caldwell, BBA Wisconsin Mutual North Carolina Grange Insurance Company Mutual Insurance Company Madison, Wisconsin Greensboro, North Carolina

NAMIC Staff Liaisons Steve Crawford, CPCU, ARe Neil Alldredge Grinnell Mutual Peter Bisbecos, JD Reinsurance Company Roger H. Schmelzer, JD, MPA Grinnell, Iowa

TRIA WORKING GROUP Randy Dammeyer, PFMM Marion Mutual Chairman Insurance Association Warren Heck Maria Stein, Ohio Greater New York Mutual Insurance Company Anthony DeBarberie New York, New York Guy Carpenter & Company, Inc. of Pennsylvania John Leonard Philadelphia, Pennsylvania Maine Employers Mutual Insurance Company Justin Lear, PFMM Portland, Maine Polk County Mutual Insurance Company Brent Larsen Bolivar, Missouri Grinnell Mutual Reinsurance Company Jim Polish Grinnell, Iowa Farmers Mutual Hail Insurance Company of Iowa Kevin M. Meskell Des Moines, Iowa Quincy Mutual Fire Insurance Company Keith Rollings, PFMM Quincy, Massachusetts Nixa Mutual Insurance Company Nixa, Missouri Tom Callanan Workers Compensation Fund Rich Schumacher Murray, Utah Farmers Mutual Insurance Association of O’Brien County John T. Hill, II, CPA Hartley, Iowa Magna Carta Companies New York, New York Mike Soldan, PFMM Spring Valley Mutual Insurance Richard M. Raun, CIC Spring Valley, Minnesota Woodland Mutual Insurance Company FMC Board Liaison Carlton, Minnesota Doug Sullivan, PFMM Svea Mutual Insurance Company NAMIC Liaisons Orion, Illinois Peter A. Bisbecos, JD Marliss Browder NAMIC Staff Liaison David A. Winston, JD Wes Gainey, CAE

UNDERWRITING COMMITTEE

Chairman Fred Shaw, CPCU Barton Mutual Group Liberal, Missouri

28 The National Association of Mutual Insurance Companies Shared Values and Beliefs NAMIC values mutuality: Mutual insurance is a successful, stable, and policyholder focused company structure that provides distinct perspective and contributions to the insurance marketplace.

NAMIC values member involvement: The insurance industry and this association cannot achieve their potential without the active involvement of competent and committed volunteers.

NAMIC values member interaction: Member company staffs build mutually benefi cial long-term relationships through knowledge sharing and common experiences.

NAMIC values collaboration: Whenever possible, the association seeks to work with industry organizations, regulators, and others to achieve common goals.

NAMIC values low cost, highly effective operations: The combination of a high quality staff, proven technology, an issue oriented approach to advocacy, and a core/non-core funding and operations philosophy provides cost-effective association value to our membership.

NAMIC values fairness and opportunity in governance: NAMIC boards and committees are open to and composed of individuals from companies that accurately represent the diversity of the association. There are no permanent seats on We are what we repeatedly do. any association committee or board; every regular company member has an equal voice. Excellence, then, is not an act, but a habit. – Aristotle HEADQUARTERS

3601 Vincennes Road

P.O. Box 68700

Indianapolis, IN 46268

(317) 875-5250 tel

(317) 879-8408 fax

FEDERAL AFFAIRS OFFICE

122 C Street, NW

Suite 540

Washington, D.C. 20001

(202) 628-1558 tel

(202) 628-1601 fax The National Association of Mutual Insurance Companies www.namic.org 0