Farmers Insurance F.A.C.T. program exceeds expectations for 1996

Business Wire, Jan 22, 1997

LOS ANGELES--(BUSINESS WIRE)--Jan. 22, 1997--

Farmers Action for Communities of Tomorrow meets insurance

needs of California's underserved population

Farmers Action for Communities of Tomorrow (F.A.C.T.), introduced by Farmers Insurance to provide insurance products and services to California's underserved communities, has exceeded its 1996 expectations.

The F.A.C.T. program appointed 144 independent agents who wrote more than 32,000 policies and more than $14 million in premiums in the underserved communities.

"Little more than a year ago, we at Farmers Insurance announced `Farmers Action for Communities of Tomorrow' (F.A.C.T.), a voluntary program to more effectively serve the home insurance needs in underserved areas," said Martin D. Feinstein, president and CEO of Farmers Insurance.

"Today, I'm pleased to announce that in its first full year of operation, our F.A.C.T. program has made important progress in addressing a vital need for the people of California."

Farmers introduced its voluntary program in September 1995 to meet the insurance needs of California's underserved communities. Farmers appointed experienced independent agents with a history of writing profitable business, and who are members of or write the majority of their business in these communities.

Three new Farmers companies were established to provide property insurance to these communities. They are: Civic Property and Casualty Co.; Neighborhood Spirit Property and Casualty Co.; and Exact Property and Casualty Co. All three offer comprehensive homeowner and dwelling fire policies.

Currently, there are 157 areas, by zip code, designated as underserved under the following criteria set by the DOI:

-- Per capita income is below the 50th percentile;

-- At least two-thirds of the population are minorities;

-- Uninsured motorist population is 10 percentage points above

the state average;

-- Members of the community have contacted three or more agents

and were declined insurance.

Farmers introduced the F.A.C.T. program with a multi-lingual staff proficient in English, Spanish, Chinese, Korean, Vietnamese and Tagalog to serve the multi-cultural diversity of the state.

To further its commitment to the community, Farmers established the F.A.C.T. account with Founders National Bank, one of the largest minority-owned banks in Los Angeles. It also contracted with a minority-owned marketing communications firm, which specializes in target marketing and advertising in these communities.

Farmers Insurance Group of Companies, with headquarters in Los Angeles, is the largest California-based insurer of autos, homes and businesses.

CONTACT: Farmers Insurance News Bureau, Los Angeles

Diane Tasaka, 213/932-3018

Manuel Valencia, 818/793-9335