2024 Contest/Recognition/Agency Goal Definitions/Agency Manager Compensation Program

2024 Contest Recognition Agency Goal Definitions Agency Manager Compensation Program

For internal use only

Table of Contents Click on section title to go directly to content, 2024 updates will be indicated by red text

All Star Contest Qualifications • Representatives • Agency Managers

All American Contest Qualifications • Representatives • Agency Managers

Go for the Gold • All Star • All American

COUNTRY Club Corporate & Market Recognition Agency Goal Definitions Agency Manager Compensation Program

All Star Contest Qualifications January 1, 2024 - May 31, 2024

Representatives Rewards reps that meet cumulative growth goals at the conclusion of the 5 month contest

Personally Produced Life New Policy Count

Any policy that counts towards growth metrics as Personally Produced New (base policy only), excluding riders.

Includes: • New business • Replacements – external and Red Zone • Conversions Additional Information: • Splits on base policies - will reflect the percent split (ex: 70/30 split will show as .7 policy count for one rep and .3 policy count for the other rep) *Reps must attend the All Star trip to receive $500 Fast Start incentive, those who do not attend will receive Reward Central points

Agency Managers Rewards agency managers who meet agency budget goals

* P/C New Business Policies include Farm, Auto, Home and Commercial

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All American Contest Qualifications January 1, 2024 - December 31, 2024

Representatives Rewards reps who meet targeted growth goals at the conclusion of the contest year based on the 12 month look back metrics

Rep status used for contest qualification is the rep's status as of December 31, 2024.

Personally Produced Life New Policy Count

Any policy that counts towards growth me trics as Pe rsonally Produce d Ne w (base policy only), excluding riders.

Includes: • New business • Replacements – external and Red Zone • Conversions

Additional Information: • Splits on base policies - will reflect the percent split (ex: 70/30 split will show as .7 policy count for one rep and .3 policy count for the other rep)

Executive Club Ranked by Net Annualized Life Premium +Investment Credit • All American qualifier • Top 30 Representatives and • Hall of Fame members who are current All American with 30 or more AA years total

National Champion

• #1 Rep of the Year (See Champion Awards)

All American Contest Qualifications January 1, 2024 - December 31, 2024

Agency Managers Rewards agency managers who meet agency budget goals

* P/C New Business Policies include Farm, Auto, Home and Commercial

Executive Club

National Champion

Ranked by Life New Annualized Premium % of Goal • All American qualifier • 100% Life New Annualized Premium % of Goal Agency Managers not meeting the above criteria will be removed before ranking • Top 5 Agency Managers and • Hall of Fame members who are current All American with 30 or more AA years total and two All American Representative qualifiers

• #1 Agency Manager (See Champion Awards)

Go for the Gold Qualifications All Star January 1 - May 31, 2024 Must be an All Star Qualifier • •

Trip Coaster to distinguish medal qualification Additional bonus to base or Reward Central points*

Incentives Gold – $750 + Base or 3,000 Reward Central Points Silver – $400 + Base or 2,500 Reward Central Points Bronze – $200 + Base or 2,250 Reward Central Points *Reward Central points only awarded in the event the qualifier opts to not attend the trip

All American January 1 - December 31, 2024 Must be an All American qualifier under the Overall Growth criteria Medallion added to All American/Executive Club year plate • Trip Coaster to distinguish medal qualification • Additional bonus to base** •

Incentives Platinum - $4,000 + Base (Reps only) Gold – $2,600 + Base Silver – $1,200 + Base Bronze – $700 + Base **Base amount will be determined in early 2025. Only attending qualifiers will receive bonus amounts. Amounts are based per couple.

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COUNTRY CLUB 2024 Updates

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Objective: COUNTRY Club is intended to support new representatives in getting off to a fast start and ultimately building a foundation for success.

Participant Update

• Only reps on enhanced commissions will be eligible to receive placement bonuses.

Those not on enhanced commissions can still qualify but will not be eligible for placement bonuses.

• In addition, any rep that has previously held the role of "Agency Manager" will be excluded from participating in the contest.

Qualification Update

• 30 Branded P/C PIF + Incremental VIF + Life Policies o Of the 30 policies, the rep must have a minimum of 1 Life Policy to qualify.

Timeframe Update

• Extending the contest to 3 months vs 2 months that begins immediately on the contract date.

Awards Contest Qualifier – 30 Branded P/C PIF + Incremental VIF + Life Policies (minimum 1 Life Policy) o Bonus for qualification- $2,500 Bonus for contest placement: • 1st Place-$1,500 • 2nd Place-$1,000 • 3rd Place-$500 Ties will be broken using new business life premium according to growth metrics during the contest period. In the event that a tie cannot be broken, both representatives will receive placement.

1st Place: receive contest qualifier bonus, placement bonus listed above, plus 1st place award 2nd Place: receive contest qualifier, placement bonus listed above, plus 2nd place award 3rd Place: receive contest qualifier, placement bonus listed above, plus 3rd place award

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2024 Corporate and Market Recognition Summary of changes effective 01/01/2024: • Updated: Champion Award brackets for Reps

One National Champion Rep will be named from the Rookie Rep of the Year, New Rep of the Year, Rep of the Year bracket winners. See Champion Award criteria. o Former Agency Managers are not eligible for Rookie Rep of the Year or New Rep of the Year Champion Award brackets o Contract dates for Rep brackets have been updated National Sales Achievement Award contract dates have been updated Master Status qualification criteria has been updated P/C Honor Roll has been eliminated from the Recognition Portfolio Life Honor Roll criteria has been updated, see Corporate Recognition o

• • • •

Award Lifetime Achievement

2024 Qualification Criteria 40 All Americans

Where Awarded COUNTRY HONORS

Hall of Fame

20 All Americans

COUNTRY HONORS

Champion Awards

See Champion Awards National Champion Representative

COUNTRY HONORS

• #1 Rep of the Year National Champion Agency Manager • #1 Agency Manager Representative Champions

Corporate

• #1 Rookie Rep of the Year • #1 New Rep of the Year • #1 Rep of the Year Emerald Club

$100,000 Net Annualized Life Premium (Life Tier 8)

Market Banquets

National Sales Achievement

Representatives with a hire/contract date prior to January 1, 2021

Market Banquets

Ranked by Net Annualized Life Premium • #1 Ranked Representative Ranked by P/C net PIF + Incremental VIF • #1 Ranked Representative Ranked by New Assets • #1 Ranked Representative

Representatives with a hire/contract date January 1, 2021 and after Ranked by Net Annualized Life Premium • #1 Ranked Representative Ranked by P/C net PIF + Incremental VIF • #1 Ranked Representative Ranked by New Assets •#1 Ranked Representative

Corporate

National Sales Management Achievement

Ranked by Life New Annualized Premium Percent of Goal • #1 Ranked Agency Manager Ranked by PC New Business Percent of Goal • #1 Ranked Agency Manager Ranked by Investment New Asset Percent of Goal • #1 Ranked Agency Manager

Market Banquets

Master Status

See Sales Support Program; Must place in the Prestige support tier AND be profitability bonus eligible

Awards sent directly to Reps

Life Honor Roll

Market Banquets A rep must have 2 or more Personally Produced Life New Policies a month for at least 11 of the 12 months of the contest year #1 Market-Based of Market Level PC New Business, Life New COUNTRY HONORS Annualized Premium and Investment New Assets Goal combined ranking (See Champion Awards)

Market of the Year

Region of the Year

#1 Region-Based of Region Level PC New Business, Life New Annualized Premium and Investment New Assets Goal combined ranking (See Champion Awards)

COUNTRY HONORS

National Advisory Council

See Passport- Production<Contests<RecognitionCorporate<National Advisory Council

N/A

Country Club

30 Branded P/C PIF + Incremental VIF + Life Policies, 1 Policy must be a Life Policy in first 3 months

Awards sent directly to reps

Award Enriching Lives

Excellence Club

2024 Qualification Criteria Prior to year-end, each Agency Manager will nominate one rep who is: highly involved within their community, skilled at identifying core client growth opportunities, utilizing our competitive advantages, embracing team selling, a positive influence within their agency, and shows promise for long term success at COUNTRY Financial. Winner will be determined by Area Director and Regional Vice President and announced at the banquet. A rep can only win this award once every 3 years.

Top Producer in each of the following categories: Commercial

Market

Growth; Auto Growth; Home Growth; Farm Growth; P/C Net PIF/VIF Growth (Home + Auto + Farm+ Commercial); Annualized Life Premium Growth; New Assets

Where Awarded Market Banquets

Market Banquets

Years of Service

Recognizing those reps that have been contracted with COUNTRY for 25, 30, 35, 40 etc

Market Banquets

Life Tier

Rep must be at least Life Tier 4 as of December month end. Recognized at Life Tier assigned at that time.

Market Banquets

Record Breaker

Award reps for exceeding previous annual production records in the following categories: Net Annualized Life Premium, P/C Net PIF/VIF, and New Assets

Market Banquets

Farm Certification

Complete the Farm Certification Learning Path and write 4 or more Farm/AgriPlus New Business policies per year

Market Banquets

Region & Market

Award Market Rookie Rep of the Year

2024 Qualification Criteria

Market New Rep of the Year

Contract Date January 1, 2021 and after; Must be current All American; Former Agency Managers are not eligible for this award; Top Rep in the Market; See Champion Awards

Market Banquets

Market Rep of the Year

Contract Date prior to January 1, 2021; Must be current All American; Top Rep in the Market; See Champion Awards

Market Banquets

Market Agency of the Year

Agency Manager must be current All American; Top Agency Manager in each Market; See Champion Awards

Market Banquets

Contract Date February 1, 2023 to December 31, 2024; Must be current All American, Top Rookie in the Market; Former Agency Managers are not eligible for this award; See Champion Awards

Region Rookie Rep of the Year Contract Date February 1, 2023 to December 31, 2024; Must be

current All American, Top Producer in the Region; Former Agency Managers are not eligible for this award; See Champion

Where Awarded Market Banquets

Market Banquets

Awards Region New Rep of the Year

Contract Date January 1, 2021 and after; Must be current All American; Former Agency Managers are not eligible for this award; Top Rep in the Market; See Champion Awards

Market Banquets

Region Rep of the Year

Contract Date prior to January 1, 2021; Must be current All American; Top Rep in the Market; See Champion Awards

Market Banquets

Region Agency of the Year

Agency Manager must be current All American; Top Agency

Market Banquets

Manager in the Region; See Champion Awards

Champion Awards Champions are awarded at the Market, Region, and National level.

There are 4 brackets of Champions: •

Rookie Rep of the Year (Contract date 02/01/2023 - 12/31/2024)

•

New Rep of the Year (Contract date prior to 01/01/2021)

•

Rep of the Year (Contract date 01/01/2021 and after)

•

Agency Manager of the Year

Champion Award Qualification Criteria-Representatives •

Must be All American and fall within contract date requirements of award

•

Rep will be ranked in the following categories: -

-

-

P/C net PIF +Incremental VIF Net annualized life premium + investment credit New Assets

•

Highest growth = lowest ranking

•

Rep ranking values are added together to determine the Champion score -

Example Rep is ranked 5 in PIF/VIF, 4 in Life, 10 in New Assets, their cumulative ranking score is 19

•

Rep with the lowest cumulative score is the Champion at that level

•

Champions at each level are then reranked on the above criteria to determine next level of award (Example Market 1 Champion vs Market 2 Champion to become WS Region Champion)

•

Ties are broken using 24 month persistency

Champion Award Qualification Criteria- Agency Managers •

Must be All American

•

Manager will be ranked in the following categories: -

P/C New Business Percent of Goal

-

Investment Services New Assets Percent of Goal

-

Life New Annualized Premium Percent of Goal

•

Highest %of goal = lowest ranking

•

AM ranking values are added together to determine the Champion score -

Example AM is ranked 2 in PC, 1 in Life, 1 in New Assets, their cumulative ranking score is 4

•

AM with the lowest score is the Champion at that level

•

Champions at each level are then reranked on the above criteria to determine next level of award (Example Market 1 Champion vs Market 2 Champion to become WS Region Champion)

•

Ties are broken based on highest Life New Annualized Premium Percent of Goal

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Champion Award Qualification Criteria- Market of the Year & Region of the Year Market/Region will be ranked in the following categories: -

P/C New Business Percent of Goal Life New Annualized Premium Percent of Goal Investment Services New Assets Percent of Goal

•

Highest % of goal = lowest ranking

•

Ranking values are added together to determine the Sales Champion score -

Example Market/Region is ranked 1 in PC, 4 in Life, 3 in New Assets, their cumulative ranking score is 8

•

The lowest cumulative score is the Champion

•

Ties are broken based on highest Life New Annualized Percent of Goal

Agency Goal Definitions Effective 01/01/2024

2024 Agency Goal Definitions Property/Casualty New Policies Issued: Aligns to PC KPIs Category

Product

New Policy Issued Definition A new personal auto policy issued through a quote and conversion process where a client did not have an auto policy in the last 12 months. Also includes policies added by a client to an existing household (i.e. – 5th vehicle for legacy, split-offs, addition of a motorcycle/recreational vehicle).

Auto

Personal Auto – line of business (LOB) A

• • •

Includes all auto new policies written on CMIC, CCIC and CPIC Does not reflect subsequent cancellations Counts new business as the later of effective date or transaction date.

Excludes: • • •

Excludes system to system rewrites Excludes company to company transfers Excludes state to state

A new home policy issued through a quote and conversion process including homeowners, tenant, condo, etc. where a client did not have a home policy in the last 12 months.

Home

Home – LOB K

• • • • • • •

Includes all home new policies written on CMIC, CCIC and CPIC Includes the purchase of a second home under a new policy Includes issuing a new policy when the client moves Includes state to state transfer Includes Legacy policies manually rewritten to Policy Pro Does not reflect subsequent cancellations Counts new business as the later of effective date or transaction date.

Excludes: •

Legacy policies automatically converted to Policy Pro

A new farm policy issued where a client did not have a farm policy in the last 12 months.

Farm

Farm – LOB L

• • • •

Includes new policies added to an existing entity.

Includes state to state transfers Does not reflect subsequent cancellations Counts new business as the later of effective date or transaction date.

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•

Commercial

• • •

A new commercial policy issued typically through a client quote and conversion process.

Workers Compensation • Includes policies added to an existing entity.

– LOB W • Counts new business as the later of effective date or transaction date.

Commercial • Does not reflect subsequent cancellations Auto – LOB V • Includes a new policy issued after client cancellation. Commercial does not Commercial reinstate after lapse.

Umbrella • New CPP policy issued counts as one, not the number of sub-lines Businessowners (BOP) – LOB M Excludes: CPP •

• • • •

Exclusions

• •

Personal Umbrella Farm Umbrella Crop Hail Federal Crop (MPCI) Other Brokerage o This includes Moblie Home-LOB O

Excludes new location added to existing policy

Life New Annualized Premium: Aligned to Financial Services Key KPI Category

Product • • • • •

New Annualized Premium Definition

Executive Whole Life 20 Paid Life 10 Paid Life Life Paid-Up at 65 Life Paid Up Addition Rider

Includes 100% of total New Annualized Premium for an issued policy

Single Premium Whole Life Single PaidUp Addition Rider

Includes 6% of total New Annualized Premium for an issued policy

• • •

Includes policies written by COUNTRY Life Includes new issues, conversions, and replacements Does not reflect subsequent cancellations

Excludes:

• •

Reinstatements (as defined as reinstated 6-months after policy cancellation) Renewal premium

Whole Life •

•

• • •

Includes policies issued by COUNTRY Life Includes new issues, conversions, and replacements Does not reflect subsequent cancellations

Excludes: •

Reinstatements (as defined as reinstated 6-months after policy cancellation)

Index Universal Life includes 100% of the lesser of target or planned New Annualized Premium

•

Index Universal Life

• •

Includes policies issued by COUNTRY Investors Does not reflect subsequent cancellations

Excludes:

• •

Universal Life

Reinstatements (as defined as reinstated 6-months after policy cancellation) Renewal premium

Universal Life includes 100% of the target New Annualized Premium.

•

Universal Life

• •

Includes policies issued by COUNTRY Investors Does not reflect subsequent cancellations

Excludes:

• •

Reinstatements Renewal premium

Return to Table of Contents Includes 100% of total New Annualized Premium for an issued policy

Term Life

• •

Term Life Term Life Rider

• • • Excludes:

• • • • • •

Exclusions

• • • • •

Medicare Supplement Long-term Care Disability Income CSL policies Brokered policies Group Life Group A&H Group Annuity

Includes policies issued by COUNTRY Life Includes new issues, conversions, and replacements Does not reflect subsequent cancellations

Reinstatements Renewal premium Child Term Riders

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Investment Services New Assets: Aligned to Budget Production goals and Financial Services Key KPI Category

Product •

CTB

• •

Investment Services New Assets Definition

Journey Series: (Foundation, CoMPAS, Focus, Vision) BRS, Simple/ SEP Self Directed, Trusts

Includes new account funding and contributions to existing accounts.

• • • • •

Includes company to company transfers Includes new funding and contributions on commissionable and non-commissionable deposits If commission is split, credited to reps assigned at time report is generated with current split percentages Does not reflect subsequent account closures Based on transaction date of account funding

Includes new purchases and contributions to existing accounts.

• •

CCMC

• •

•

CILAC

•

Mutual Funds Variable, Index, and Fixed Annuities 529 Plans Single Premium Deferred Annuity (SPDA) Flexible Premium Deferred Annuity (FPDA) Single Premium Immediate Annuity (SPIA)

• • • • •

Includes company to company transfers Includes new funding and contributions on commissionable and non-commissionable deposits If commission is split, credited to reps assigned at time report is generated with current split percentages Does not reflect subsequent account closures Based on transaction date of account funding

Includes Single and First-Year premiums on new policies and the Renewal premium on Annuity policies issued on or after 1/1/2021.

• • • •

Includes company to company transfers including replacements Does not reflect subsequent surrenders If commission is split, both reps are credited 100% of the new assets Based on the effective date of the policy funding

Excludes:

•

Renewal premium on Annuity policies issued before 1/1/2021

Agency Manager Compensation Program Effective 01/01/2024

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2024 Agency Manager Compensation Program This document outlines your incentive compensation program for 2024.

Agency Manager incentive compensation is designed to measure and reward outstanding performance in support of desired corporate outcomes.

Incentive Compensation is paid on the last pay period of the month.

You must remain employed as Agency Manager on the last day of the month being measured to receive any monthly bonuses and employed as Agency Manager on the last day of the year to receive any year- end true up or Financial Security Bonuses.

SUMMARY OF BONUS OPPORTUNITIES 1. Agency Production a. PC New Business acquisition b. Annualized Life Premium c. New Assets Under Care d. Year-End True Up e. Year-End Financial Security Bonus 2. Develop Producers a. Tenured Agents 1) Commission Rate Grid a. Monthly Bonus b. New Agents 1) Enhanced Commission Rate Grid a. Monthly Bonus

DEFINITIONS 1.

Agency Production Year to date budget objective by line of business as provided by Controllers and takes into account seasonality. a. P/C New Business Policies for each LOB i. A monthly Property/Casualty New Business Bonus may be paid based on percentage of attainment of the P/C New Business goal for each LOB. A Bonus will be calculated at 90%, 95% and 100% and then increasing in 1% increments until 110% for each P/C LOB, auto, home, farm and commercial. This will be calculated and paid monthly based on the YTD amounts. Percentages will be rounded up to the whole number. b. Annualized Life Premium i. A monthly Annualized Life Premium Bonus may be paid based on percentage of attainment of the Annualized life premium goal. A bonus will be calculated at 90%, 95% and 100% and then increasing in 1% increments until 110%. Bonus will be calculated and paid monthly based on the YTD amounts. Percentages will be rounded up to the whole number. c. New Assets Under Care i. A monthly New Assets Under Care Bonus may be paid based on percentage of attainment of the New Assets Under Care goal. A bonus will be calculated at 90%, 95% and 100% and then increasing in 1% increments until 110%. Bonus will be calculated and paid monthly based on the YTD amounts. Percentages will be rounded up to the whole number.

d. Year End True Up i. If the Agency is at 100% but below 110% of the annual budget goal at year- end each month will true-up to the 90% bonus amount. This is available in all 6 categories (farm, commercial, auto, home, life, financial). ii. If the Agency is at 110% of the annual budget goal at year- end each month will true-up to the 100% bonus amount. This is available in all 6 categories (farm, commercial, auto, home, life, financial.) di. Year- End Financial Security Bonus i. If an Agency is at 100% of the annual budget goal at yearend for all 6 categories (auto, home, farm, commercial, Life, Financial), a $3,000 bonus will be paid.

2.

Develop Producers a. Tenured Representatives i. A bonus will be paid for representatives that are meeting certain P/C grid commission rates at the end of each month.

Bonus will be calculated based on the rep’s commission rate at the end of each month and paid monthly.

PC Grid Placement

Monthly Bonus Amount

< 7%

No Bonus

7% to 7.5%

$50

8% to 9.5%

$300

10% to 14%

$750

15%

$1,500

b. New Agents (Non-Tenured) i. A bonus will be paid for representatives that are meeting certain enhanced commission tiers at the end of each month.

Bonus will be calculated based on the rep’s tier at the end of each month and paid monthly.

Enhanced Commission Tiers

Tier A

Tier B

Tier C

Tier D

Bonus Amounts

$1000

$800

$100

$0

ii. Below are the monthly enhanced commission tier requirements. While new agents will be locked in at tier A for their first six months, we will still measure their actual production in months 1-6 to determine their tier placement for purposes of this bonus.