Hortica, the Florists' Mutual Insurance Company, is not only a proud member of the horticultural industry but a member of the larger business community as well, specifically the insurance industry.

Hortica believes it is important that you know how we deliver our insurance products to our clients and how both Hortica is compensated and how we compensate the individuals who deliver our policies. The attached disclosure forms address these issues.

Hortica, the Florists' Mutual Insurance Company, delivers two types of insurance policies to businesses in the Horticultural Industry.

• Insurance policies written by Florists' Mutual Insurance Company.
  
On these policies Florists' Mutual or its wholly owned subsidiary, Florists' Insurance Company, is the actual risk bearing entity. Premium payments are made to Florists' Mutual Insurance Company and all claims paid are paid by Florists' Mutual Insurance Company. There are basically four primary policies:


• Commercial Automobile Policy
• Workers Compensation Policy
• Commercial Multi Peril Policy
• Excess Liability Policy

These policies comprise between 70 - 80% of our total premium revenue.


• Insurance policies delivered by Hortica, through its wholly owned Insurance Agency, Florists' Insurance Service, Inc.
  These insurance policies are actually written by other insurance companies and these other companies actually bear the insurance risk. Generally, premium payments are made to these other companies and claim payments are paid by those other companies. Insurance policies of this type generally supplement the policies written by Florists' Mutual Insurance Companies but, in some cases, actually serve as substitutes for these Florists' Mutual policies. Hortica receives compensation in terms of straight commissions and in some cases contingent commissions which are based on both the volume of business and the profitability of this business from these companies.

• Focus on integrity, accountability and honesty
• Focus primarily on the Horticultural Industry and their insurance needs
• Have a Board of Directors, the majority of which are horticultural members and leaders
• Enjoy a well-earned reputation for both client and industry service

Hortica, the Florists' Mutual Insurance Company, policies described above in the following manner.

1. Directly Employed Field Sales Representatives
2. Directly Employed Home Office-Based Sales Representatives
3. Independent Agents (No employment relationship with Hortica)

1. Directly Employed Field Sales Representatives - these individuals are directly employed by Hortica and exclusively represent Hortica. They can only deliver insurance policies that Hortica either writes directly or has access to through its wholly owned agency, Florists' Insurance Service, Inc. These individuals receive both a base salary and benefits in addition to bonuses based on the amount of business they produce.
   
   
2. Directly Employed Home Office-Based Sales Representatives - like the Directly Employed Field Sales Representatives, Directly Employed Home Office-Based Sales Representatives are direct employees of Hortica and exclusively represent Hortica. They can only deliver insurance policies that Hortica either writes directly or has access to through its wholly owned Agency, Florists' Insurance Service, Inc. These individuals receive a base salary and benefits from Hortica. They receive no additional compensation based on business they produce.
   
   
3. Independent Agents (No employment relationship with Hortica) - these individuals, who are not employees of Hortica, may not exclusively represent Hortica and may deliver insurance policies of companies not available to Hortica. For the most part, these individuals recognize Hortica's expertise in the Horticultural Industry and have approached us regarding the ability to deliver our insurance policies. These individuals are paid commissions on the business placed with Hortica. They may also earn contingent commissions if they achieve a pre-set volume requirement and profitably target on business they produce.