Percent of business in Illinois by line:
Personal: 99% Life & Annuity: 1%

Are you currently appointing new agents? Yes.

What type of agency is your company looking for? We are actively seeking professional agencies with a proven track record of growth and profitability that are looking to build a long-term relationship with a financially strong carrier. Agencies should be proactive marketers, committed to growing their personal lines book of business and eager to capitalize on the marketing advantages the AAA brand represents.

What are your premium volume requirements? Profit sharing agreement starts at $100,000 written premium, and we would expect a new agency reach that level within the first year. Currently, there is no production requirement for life insurance.

Are you currently doing any niche-marketing program? AAA has a very strong brand identity, built over the last 100 years. While not required for insurance, our target is AAA members. Independent agency partners have a valuable opportunity to market AAA memberships to their current clientele as they build their book of business.

What is your company's most aggressive line of business? Private passenger auto.

Do you use credit scoring? We do not use credit scoring for underwriting eligibility. We utilize credit scoring to apply a discount for automobile. Currently, credit scoring is not used for homeowners, but we are planning on implementing a discount for credit score in 2003.

Do you currently download/upload with your agencies? We are preparing to rollout download with AMS and are currently testing Applied download. Upload from AMS and Applied is planned in 2003.

What methods do you use to distribute your insurance products? We offer consumers the choice of accessing us through independent agencies or a network of captive agents. We see our future growth coming principally through the independent agency distribution system as we continue to grow as a Midwest regional carrier. A small amount of business is written direct.

What do you think makes your company different, or stand out from all the rest in Illinois? Why would an agent want to contract with your company? A. The AAA brand is recognized by millions of Americans and has come to symbolize stability, security, quality, and trust. After one hundred years of actively representing the interests of motorists, we stand behind our commitment to provide safety, security, and pace of mind. B. We are rated "A" (Excellent) by AM Best, and at $1.3 billion in premiums are a financially strong enterprise with capacity to grow with our agency partners. C. AAA has built a reputation for fast and thorough claims service. The Auto Club Group has again achieved a top 10 ranking in the J.D. Power and Associates 2002 National Auto Insurance Customer Satisfaction Study. D. Our territory managers are dedicated to working with your agency to develop a mutually rewarding relationship. While we continue to develop high tech solutions our industry requires, we will not lose sight of the value of high touch relationships.

If we had agents agree to sell homeowners policies with actual cash value endorsements, would you write more business in southern Illinois? AAA Chicago Motor Club writes business in the northern 72 counties in Illinois, and does not have marketing rights in Southern Illinois.

What are the major ways in which you are interfacing electronically with your agents today? Are you pleased with the results? We are developing several ways in which agents can transact business with AAA. One initiative is the upcoming launch in 2003 of our independent agency portal, which will allow agents to access billing, policy inquiry, and claims via the Internet. In addition to supporting Applied and AMS comparative raters, we are also planning to make online rating available as well. Much of our technology planning is in preparation to be properly positioned for what independent agencies are looking for as outlined in the AUGIE survey.

The Agents Council for Technology (ACT) has recently adopted a major statement spelling out the opportunity our distribution system has to move to more effective agent-company interfaces. We would like to get your company's perspective on the section outlined below.

§ Provide agency services that are hosted and available through real-time interaction using the ACORD XML standards.
§ Assist agencies with the implementation and effective utilization of all company applications.
§ Cooperate with vendors creating integrated environments for agents.
§ Provide consumer services agents can integrate into their out-facing services.
§ Develop single-step workflow and make it available to agency multi-company environments (as at least one channel of deployment).
§ Work with agents and vendors to better manage mid to large commercial insurance processes through collaborative computing.
§ Provide information and computing through a variety of channels and devices.
§ Work with agents and vendors to implement computer-based personalized marketing and sales.
§ Develop a business strategy that strengthens your agency business partners and their brands through company and agency use of the Internet.
§ Participate in industry dialogue and the search for common ground.
§ Keep abreast of legislative issues that may affect the use and implementation of technology by agents, companies, and/or vendors.

We have begun focus group work on our agency portal, which will allow access to customer service information such as billing, policy, and claims inquiry via the Internet. As part of this process, we have sent our project team personnel into agency offices to determine the everyday needs of CSRs handling day to day transactions. 2003 has many technology initiatives scheduled, enabling us to work better with our independent agency partners.

Additional Comments: Primarily a personal auto writer. Have a homeowners product but in the process of modifying it for pricing and product enhancements. Membership in AAA motor club is not a requirement, but the auto price is discounted for membership and towing is not an optional coverage on their auto plan so many take the club membership. Cost of the membership is $63 new/$53 renewal. In 2001, AAA wrote 25 million and will write nearly 40 million in 2002. The projected number for 2003 is 50 million. The Chicago Motor Club Insurance Company has 30 locations of company owned agents in Indiana and Illinois. They began aggressively appointing new independent agents in April 2002. CMCIC's territory covers all of Illinois to I-70. Below that is covered by the AAA Missouri. They are appointing Independent Agents, but a separate contract is required.