Percent of business in Illinois by line:
Commercial: 72% Personal: 38% Life Annuity: 65% Health: 69%

Are you currently appointing new agents? Yes. Pekin would like to grow in the suburbs and the metro east area.

What type of agency is your company looking for? We are looking for multiple-line agents that want to offer a wide range of products to their customers, including property, casualty, life and health. We are a relationship-oriented company that strives for long-term relationships with like-minded agencies.

What are your premium volume requirements? Our profit sharing agreement calls for $50,000 the first year, $100,000 the second, and $150,000 the third and thereafter. We also want a fair share of the agency's life production.

Are you currently doing any niche-marketing program? We are a non-niche company. We strive to offer a wide array of products.

What is your company's most aggressive line of business? We are most aggressive in personal lines and small Main Street-type businesses.

Do you use credit scoring? Yes. On both new and renewals, credit scoring is one of the factors used in our underwriting decisions. Pekin went to credit scoring this year as a part of the underwriting criteria. Pekin has determined credit scoring isn't geographic. Out of 18 field territories in 4 states, there is less than 1% difference in average scores for all territories.

Do you currently download/upload with your agencies? We offer download and upload through several agency management systems. In addition, we are offering the availability of upload of automobile and homeowners through our web site over the Internet.

What methods do you use to distribute your insurance products? Independent Agents.

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? We are consistent. We have been operating under the same name, selling the same products to the same customers in the same manner for many, many years.

If we had agents agree to sell homeowners policies with actual cash value endorsements, would you write more business in Southern Illinois? We offer an actual cash value endorsement, and have for years.

What are the major ways in which you are interfacing electronically with your agents today? Are you pleased with the results? We have not been pleased with the amount of business being uploaded through the various management system vendors. We are moving toward much more interface activity through our web site over the Internet. Pekin has Internet based rating in personal lines and will have commercial in the future. The company's website allows agents to write business with them without a management system.

Additional Comments: Pekin stands out with a good profit sharing contract. It is based on one year only with a stop loss. An additional growth bonus for profitable agencies earning the "Underwriter of Merit" award and an additional cumulative bonus for agencies qualifying as a "Full Circle Agent" for 5 or more consecutive years. Full Circle Agents earn the "Underwriter of Merit" award and a very attainable life production award. Pekin's written premium is up 22% in 2002.

In regards to agency terminations, Pekin has made no changes as a result of the current market conditions. The company reviews all agencies twice each year. Pekin has a rehabilitative program for agents with unprofitable histories called "Agency Alert." Under this program, agents are reunderwritten to improve profitability and 90% of these agencies return to profitability after the rehabilitation period.

Pekin prefers account selling but allows profitable agents with good mixes of business to write monoline homeowners. The company continues to write all lines in the states where they're licensed and is trying to deal with the current market by achieving rate adequacy. Homeowners pricing has been a concern and there are no plans to implement a wind and hail deductible. An ACV roof endorsement was introduced to be used only as needed. The company is seeking profitable growth and continues to actively appoint qualified agencies.