ANNUAL ENROLLMENT GUIDE 2015

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ANNUAL

ENROLLMENT

GUIDE 2015

Choose the coverage that’s right for you and your family

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COVERAGE THAT’S RIGHT FOR YOU

As a part of our Total Rewards package, Farmers offers comprehensive and competitive benefits to our employees.

When it comes to benefits, we understand that one size doesn’t necessarily fit all. That’s why we give you the flexibility to choose the combination of benefits that’s best for you and your family.

We also provide you with the tools to help you make the right choices. You can start by reading this guide, which walks you through the enrollment process and gives you details about your benefits. If you are looking for more information, this guide also directs you to other resources that can help answer your questions.

MARK YOUR CALENDAR

Annual Enrollment is from October 20 to November 3. Enrollment takes place only once a year, so take this opportunity to review your benefits and ensure they fit your needs. Choose wisely because you can’t make changes outside of Annual Enrollment unless you experience a qualified life change event, such as a marriage or the birth of a child.

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Here’s what you’ll find inside

(click on the below chapters)

WHAT’S NEW FOR 2015 . . . .4

MEDICAL . . . .7

SAVING TAXES THROUGH HEALTH SAVINGS AND FLEXIBLE SPENDING ACCOUNTS . . . .11

EMPLOYEES LIKE YOU . . . .15

UHC PLAN COST ESTIMATOR . . . .21

WELLNESS RESOURCES – HEALTHFIRST PLUS . . . .22

VISION . . . .23

DENTAL . . . .24

LIFE AND DISABILITY . . . .26

WORK/LIFE BALANCE . . . .29

RETIREMENT . . . .31

RESOURCES TO HELP YOU . . . .33

Contact information . . . .33

Glossary . . . .34

IMPORTANT NOTICES . . . .36

Privacy notice of availablity. . . .36

2015 MONTHLY EMPLOYEE PAYROLL DEDUCTIONS . . . .40

Annual Enrollment 2015 begins

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EXTENDED HOURS FOR HR SERVICE CENTER

The HR Service Center is staying open extra hours during Annual Enrollment to help answer your enrollment questions. 5 a.m. to 5 p.m. PST

October 20 – November 3 (888) 599-3636

[email protected]

WHAT’S NEW FOR 2015

The amount you contribute through payroll deductions for some benefits has gone up – you will find 2015 payroll deductions on page 40.

2015 KEY MEDICAL PLAN CHANGES

CONSIDERATIONS

CHOICE PLUS HSA

In-network deductibles and out-of-pocket maximums are increasing to:

Contribute pre-tax dollars to your HSA so you have enough set aside to cover your deductible and out-of-pocket expenses.

Employee Family

Deductible $1,300* $2,600*

Out-of-pocket maximum $2,600 $5,200

CHOICE PLUS PPO

In-network deductibles and out-of-pocket maximums are increasing to:

Use the online UHC Plan Cost Estimator to make sure you select the most appropriate plan for you and your family.

Employee Family

Deductible $750 $1,500

Out-of-pocket maximum $1,500 $3,000

Prescription drug copays are increasing and will apply to the out-of-pocket maximum.

30 day retail 90 day mail-order

Generic $10 $25

Preferred brand $30 $75

Non-preferred brand $50 $125

ALL PLANS

Certain services under the Farmers medical plan will require prior authorization services in 2015 to determine benefit coverage prior to certain service being rendered. If you utilize a UnitedHealthcare network provider they will facilitate this process for you, but when you seek services from a non-network provider you will be responsible for prior authorization.

The 2015 Summary Plan Description will provide information on the services that require prior authorization.

Use in-network providers as they will facilitate the prior authorization process for you.

Out-of-network deductibles and out-of-pocket maximums are increasing in all four medical plans.

Use in-network providers as the deductible and out-of-pocket maximum are lower.

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For detailed information on Farmers benefits, log in to GEMS and go to Employee Self-Service and select Benefits & Policies

GET STARTED

Choosing your benefits and maximizing the value of your Total Rewards package is important. Spend a little time now and reap the benefits in 2015.

A Farmers Today Annual Enrollment web page has been set up as a one-stop-shop to access your resources. Simply click on HR Connection and select the Annual Enrollment link_.

WHAT DO I NEED TO DO?

Review this Annual Enrollment guide.

Visit UnitedHealthcare’s (UHC) pre-member website, where you can compare your estimated costs under each medical plan option by using the Plan Cost Estimator at www.welcometouhc.com/farmers. You can also find medical plan highlights and compare all plans side by side.

If you already have a Health Savings Account, consider the amount you expect to have available for eligible health care expenses next year.

If your spouse or domestic partner has benefits available through his or her employer, be sure to consider those additional options as well.

Visit Benefits and Policies through HR Connection on Farmers Today to learn more about your 2015 benefits. Once you log in to the GEMS portal:

– Click on the Employee Self Service tab at the top of the screen. – Then click on the Benefits and Policies tab located on the

navigation bar below the Employee Self Service tab.

– Decide which plans best meet your needs and how much to contribute to your Health Savings Account and/or Flexible Spending Account.

ENROLL

Enroll between October 20 and November 3. To enroll, go to Farmers Today and log in to GEMS under HR Connection. Then:

Click on the Employee Self Service tab at the top; Click on Benefits on the left under Detailed Navigation;

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WHO IS ELIGIBLE FOR BENEFITS?

You can enroll yourself and your eligible dependents. Your eligible dependents include:

Your legally married spouse or domestic partner, except when legally separated. Note: If you are adding a domestic partner for the first time, you will need to complete the appropriate documentation with the HRSC. Please log in to Farmers Today > HR Connection> GEMS > Employee Self Service > Benefit and Policies for more information or contact the HRSC directly at (888) 599-3636.

Your children, including your eligible domestic partner’s children, adopted children and children under your court-appointed legal guardianship, under age 26, regardless of the child’s student or marital status. Note: Grandchildren can be covered only if you are the court- appointed legal guardian.

Your single children of any age who are handicapped or totally disabled and who were enrolled in your benefits before age 26.

BENEFIT DOLLARS

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If you can’t find your answer in Benefits and Policies email or call the HRSC, they’re standing by. (888) 599-3636 5 a.m. - 5 p.m. PST Monday - Friday [email protected]

MEDICAL

Farmers offers you a choice of four medical options so you can choose the plan that best fits your needs.

The options for 2015, administered by UnitedHealthcare (UHC), include a choice of three High Deductible Health Plans and a PPO:

High Deductible Health Plans: Choice Plus HSA Choice Max HSA Choice Premier HSA PPO Plan:

Choice Plus PPO

PRESCRIPTION DRUGS

Your prescription drug benefit is managed by Express Scripts. The Express Scripts preferred drug list, sometimes called a formulary, is a list of brand-name and generic medications that are preferred by your plan. This list offers access to safe and effective medications in all therapy classes based upon guidance from an independent group of expert health professionals. Medications are selected because they can safely and effectively treat most medical conditions while helping to contain costs for you and your

plan. Some medications may be removed from this list when safe and effective alternatives are available.

The Express Scripts preferred drug list contains thousands of commonly prescribed drugs. For more information, please visit www.express-scripts.com/farmers or call (800) 987-5248. This toll-free number also appears on your member ID card.

WHAT MEDICAL PLANS HAVE IN COMMON

The medical plan options have a lot in common, as well as some important differences (see page 8 to compare what’s different). All four options:

Cover the same services and give you access to the same network of health care providers and facilities. You’re free to see any provider you want, but using providers in UHC’s network will save you money because they have agreed to negotiated rates, the plan pays a higher level of reimbursement and the deductible and out-of-pocket maximums are higher when you go out-of-network.

Cover preventive care services at 100 percent when you use in-network providers. Preventive care includes annual physical exams, routine immunizations and much more.

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COMPARE YOUR MEDICAL OPTIONS

HIGH DEDUCTIBLE HEALTH PLANS (HDHP)

PPO

Plan name Choice Plus HSA Choice Max HSA Choice Premier HSA Choice Plus PPO

When the plan begins to pay

Pay later through higher deductibles but require lower payroll contributions for coverage

Pays sooner through a lower deductible but requires a higher payroll contribution for coverage

How the plan covers prescription drugs

Subject to the deductible and coinsurance like any other eligible medical expense

Subject to copays, which do not count toward your deductible, but do count towards your out-of-pocket maximum Which

tax-advantaged accounts can be used

Can be used with a Health Savings Account (HSA), which allows you to save tax-free money for health care expenses now or in the future and Farmers helps by contributing to your HSA if you contribute a minimum amount (see page 11 for more details)

Can be used with a Dental and Vision FSA (see page 13 for more details) to pay for dental and vision expenses during the plan year – you will be able to rollover up to $500 of your unused Dental and Vision FSA balance remaining at the end of the plan year. Any carry over amounts that exceed $500 will be forfeited

Can be used with the Health Care FSA, which allows you to save tax- free money for medical, dental and vision

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AT A GLANCE: YOUR MEDICAL OPTIONS

HIGH DEDUCTIBLE HEALTH PLANS

PPO

Choice Plus HSA Choice MAX HSA Choice Premier HSA Choice Plus

In-Network Out-of-Network In-Network Out-of-Network In-Network Out-of-Network In-Network Out-of-Network Annual deductible* (employee only/family) $1,300/ $2,600 $1,950/ $3,900 $2,000/ $4,000 $3,000/ $6,000 $2,800/ $5,600 $4,200/ $8,400 $750/ $1,500 $1,125/ $2,250 The individual deductible and out-of-pocket maximum does NOT apply if any

dependents are covered. In these cases, the family deductible must be met before the plan pays a benefit.

Out-of-pocket maximum* (employee only/family) $2,600/ $5,200 $3,900/ $7,800 $4,000/ $8,000 $6,000/ $12,000 $5,600/ $11,200 $8,400/ $16,800 $1,500/ $3,000 $2,250/ $4,500 Preventive care Plan pays

100% Plan pays 60%** Plan pays 100% Plan pays 60%** Plan pays 100% Plan pays 60%** Plan pays 100% Plan pays 60%** Most other eligible

healthcare expenses Plan pays 80%** Plan pays 60%** Plan pays 80%** Plan pays 60%** Plan pays 80%** Plan pays 60%** Plan pays 80%** Plan pays 60%** Prescription drugs (generic, preferred, non-preferred brand-name)*** Retail and mail order: Plan pays 80% after annual deductible is met Not covered Retail and mail order: Plan pays 80% after annual deductible is met Not covered Retail and mail order: Plan pays 80% after annual deductible is met Not covered Retail: $10/$30/$50 Mail order: $25/$75/$125 Not covered

SAVINGS TIP: USE THE MAIL-ORDER SERVICE

If you take a medication on an ongoing basis, ordering your prescriptions by mail can save you time and hassle by delivering your maintenance medication right to your home. In addition, if you elect the Choice Plus plan, ordering your prescriptions by mail can save you time and money. That’s because you’ll be responsible for the full mail-order copay after your third refill of a maintenance medication at a retail pharmacy. That means you’ll be paying for a 90-day supply but only receiving a 30-day supply. Start saving by signing up at www.express-scripts.com.

*** The annual deductibles and out-of-pocket maximums include expenses for in-network and out-of-network services combined. However, in 2015 the out of network deductibles and out of pocket maximums will be higher than the in network deductibles and out of pocket maximums. For example, if an employee sees an in-network doctor and pays $200 for the service, and later sees an out-of-network doctor and pays $500 for services, the combined amount of $700 will apply to the employee’s annual deductible and out-of-pocket maximum. UHC refers to this as “cross application.”

*** Percentage of negotiated fee for in-network or reasonable and customary charges for out-of-network, which the plan covers after you meet your deductible. The out-of-area option will provide an in-network benefit of 80 percent of reasonable and customary charges.

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AVAILABILITY OF SUMMARY

HEALTH INFORMATION

Choosing a health coverage option is an important decision. To help you make an informed choice, your plan makes available a Summary of Benefits and Coverage (SBC), which summarizes important information about any health coverage option to help you compare across options.

The SBC, along with the Summary Plan Description (SPD) is available on the intranet at: Farmers Today > HR Connection > GEMS > Benefits and Policies. A paper copy is also available, free of charge, by contacting the HR Service Center at

(888) 599-3636 or email at [email protected]. Out-of-area coverage is available

If you live in an area where the UHC network is not available, there is an out-of-area plan for each of the medical options. The benefits under these plans are the same as in the in-network plan. Because the UHC network is not available in your area, you can go to any doctor or hospital. If you are eligible for out-of-area coverage, it will be listed on your benefit enrollment screen.

Important note: UHC’s in-network providers request an explanation of benefits (EOB) for the services provided to determine your out-of-pocket responsibility. However, the provider has the right to request payment at the time of the visit. If this happens, you are responsible only for the negotiated fee between UHC and the provider.

SAVINGS TIP:

CHOOSE IN-NETWORK

PROVIDERS

Since the out-of-network deductibles and out-of-pocket maximums will be higher, using in-network providers you can save even more money, so take a few minutes to use the UHC Online Provider Directory. This tool lets you search for in-network providers and facilities by geographical area or by name. You also can designate a medical specialty and other criteria, such as a second language, to further refine your search.

To use the directory, go to

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SAVING TAXES THROUGH HEALTH SAVINGS

AND FLEXIBLE SPENDING ACCOUNTS

Want to save on taxes? You can with a Health Savings Account (HSA) or Flexible Spending Account (FSA). These tax-advantaged accounts let you pay for your out-of-pocket health care costs with tax-free dollars. With easy payroll deductions and convenient debit cards, these accounts may be easier to use than you think. They sound similar, but they’re very different – it’s important for you to understand the difference.

HEALTH SAVINGS ACCOUNTS

If you enroll in one of our three High Deductible Health Plans (Choice Plus HSA, Choice Max HSA or Choice Premier HSA), you can use an HSA to pay for eligible health care expenses – including medical, prescription drug, dental and vision expenses.

How you use your HSA is up to you. You can:

Set aside money to cover your expected health care bills for the year while making the most of the tax advantages.

Build up enough savings to cover your deductible and out-of-pocket maximum so that you’re protected from the costs of a serious illness or injury.

Make contributions and invest your balance to save for your health care expenses in retirement.

No matter how you choose to use your HSA, be sure to keep your receipts with your other tax records. You’ll need them at tax time, and the IRS may ask you to substantiate your eligible health care expenses.

Paying for dependent medical expenses from your HSA

Family situations can vary. Generally, contributions limits to an HSA determined by

the type of coverage – individual or family. Even if your spouse or dependents are not covered by your High Deductible Health Plan, you may use your HSA dollars to pay for qualified medical expenses for them.

If you have adult children under your health plan, you may not use your HSA to pay or reimburse yourself for their qualified medical expenses if they are not your tax dependents. However, single adult children who have coverage under a parent’s family HDHP can open their own HSAs and contribute up the yearly family maximum.

Visit www.irs.gov or www.treasury.gov for answers to frequently asked questions on these topics. Consult your tax advisor for guidance on your specific situation.

THERE’S MORE ONLINE

To learn more about HSAs, visit the Annual Enrollment Web page (http://communications. farmersinsurance.com/human- resources/Pages/annual-enrollment.aspx).

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MEDICARE AND THE HSA

If you are enrolled in Medicare Part A or B in 2014, or will be enrolled in 2015, federal regulations don’t allow you to open and contribute to an HSA. So, if you already have an HSA you can keep your account and use the funds for eligible health care expenses but you cannot continue to contribute to it, and you may not open a new HSA.

HOW THE HSA WORKS

When you contribute to an HSA, so does Farmers.

As long as you make the minimum contribution with company payroll deductions through Optum Bank, Farmers will make a contribution to your HSA:

If you have employee only coverage and contribute at least $100 to the HSA, Farmers will contribute $500.

If you cover any dependents and contribute at least $200 to the HSA, Farmers will contribute $1,000.

Your HSA contributions – and those you may receive from Farmers – are not subject to federal income tax, and in most cases, state income tax. Currently, the states of California, New Jersey and Alabama do not allow pre-tax HSA contributions and they are subject to state tax. You also don’t pay taxes when you spend your HSA money on qualified medical expenses.

Although you make contributions evenly over the course of the year, the company contribution will appear as a lump-sum deposit into your HSA in conjunction with the January 15, 2015 pay period. As soon as the company contribution is in your HSA, it’s yours to save or spend on qualified health care expenses.

Both your contributions and the company contribution count toward the HSA annual maximum, as shown in the chart:

2015 HSA Annual Maximum Contributions (All HSA Plans)

Coverage Level Maximum Employee _Contribution + Company

Contribution = Annual Maximum HSA Contribution Employee only $2,850 + $500 = $3,350 Family $5,650 + $1,000 = $6,650

If you’ll be age 55 or older in 2015 and not enrolled in Medicare, you can contribute up to an additional $1,000 to your HSA in catch-up contributions. That means your maximum annual HSA contribution is $4,350 for employee only medical coverage and $7,650 for employee plus family medical coverage.

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FLEXIBLE SPENDING ACCOUNTS

How the Health Care FSA works

If you enroll in Choice Plus PPO, you can use a Health Care FSA to pay for eligible health care expenses – including medical, dental and vision expenses – with tax-free dollars. You can contribute up to $2,500 per year into your FSA. You can contribute from a minimum of $10 per pay period to a total of $2,500 in 2015. The company does not contribute to your FSA (unlike an HSA).

If you choose to use an FSA, remember to plan your contributions carefully. Due to IRS rules, and unlike a Health Savings Account, your expenses need to be incurred during the plan year to be reimbursed from your FSA, but you can submit claims for your qualifying expenses through April 30 of the following year. Also you will be able to rollover up to $500 of your unused Health Care or Dental and Vision FSA balance remaining at the end of the plan year. Any carry over amounts that exceed $500 will be forfeited.

How the Dental and Vision FSA works

If you enroll in one of the High Deductible Health Plans, the IRS does not allow you to use a Health Care FSA in combination with your HSA, but you can set aside tax- free money in a Dental and Vision FSA. You can contribute up to $2,500 per year into your Dental and Vision FSA.

Just like the name says, this FSA can be used for dental and vision expenses only. Expenses subject to your medical deductible, including prescription drugs, must be paid with money from your HSA. You can pay for your dental and vision expenses with money from either your Dental and Vision FSA or from your HSA – but not both. The Dental and Vision FSA is subject to the same rules as the Health Care FSA, including the “use it or lose it” rule, so you’ll want to set aside just enough money to cover your 2015 eligible dental and vision expenses.

THERE’S MORE ONLINE

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COMPARING AN HSA TO AN FSA

Questions Health Savings Account (HSA) Flexible Spending Account (FSA)

With which medical plan can I have this account?

High Deductible Plans: Choice Plus HSA, Choice Max HSA or Choice Premier HSA

Choice Plus PPO or if you are not enrolled in a Farmers medical plan

If you contribute to an HSA, you can also contribute to the Dental and Vision FSA, which is for dental and vision expenses only

Who funds the account? You and Farmers You

How much can you contribute?

$2,850 for employee only (plus $500 Farmers contribution) $5,650 for family (plus $1,000 Farmers contribution)

Employees age 55 or older can contribute an additional $1,000

You may contribute up to $2,500

Does the money in the account earn interest?

Yes, it grows tax-free with interest and can be withdrawn tax-free to pay for eligible health care expenses

No, but it can be withdrawn tax-free to pay for eligible health care expenses

What happens to any money left in my account at the end of the year?

Your unused money rolls over from year to year – can be used anytime, even in retirement

If you don’t spend it within the calendar year, it’s forfeited except you can rollover up to $500 to the following year

What happens to any money left in my account if I leave or retire?

The money is yours to take with you

Your account balance must be used for expenses incurred up to the end of the month following your date of termination, but you can submit claims through April 30 of the following year

Am I eligible to contribute? Yes, if you are enrolled in a high deductible plan No, if you are enrolled in Medicare Part A or B

Yes. If you contribute to an HSA, you can only contribute to the Dental and Vision FSA, which is for dental and vision expenses only

How the Dependent Care FSA works

If you have child care or elder care expenses, be sure to consider taking advantage of the Dependent Care FSA. In the same way that a Health Care FSA lets you set aside before-tax money for eligible health care expenses, you can use the Dependent Care FSA to set aside a minimum of $10 per pay period, up to $5,000 per year, in before-tax money for child care expenses while you and your spouse/domestic partner work or attend school full time.

Examples of eligible dependent care expenses include: Charges for day care centers for children or adults Babysitters

Nursery school

Before- and after-school programs Summer day camps

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EMPLOYEES LIKE YOU

How do you pick the right medical plan? There’s a lot to consider: your monthly payroll deductions, deductibles, coinsurance, tax savings opportunities and more. Take a look at these examples of fictional Farmers employees to learn from their thought processes – and their math.

It’s important to understand what you expect to spend for health care. It’s also important to plan for the unexpected when selecting a medical plan. Make sure that you’re aware of your out-of-pocket maximum and that you are able to cover this potential expense. Take full advantage of an HSA if you’re enrolled in the one of the High Deductible Health Plans.

In 2015 the out-of-network deductible and out-of-pocket maximums will be higher than the in-network deductible and out-of-pocket maximums. So using in-network providers can save you money.

In the following examples, you will see how to calculate your total estimated healthcare costs, but don’t worry; you don’t need to pull out the calculator and do this by hand. UHC’s Plan Cost Estimator does it for you and makes it easy to determine which medical plan makes the most sense – and can save you the most money. See page 21 for more information.

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MEET MARK

Age: 49

Status: Looking for employee plus family coverage

Health snapshot: Healthy – but his son’s asthma requires regular care

Mark, his wife and teenage son have predictable health care expenses. As a family, they lead healthy lives by eating well and exercising often. Outside of regular checkups, Mark and his wife use minimal health care. However, their teenage son was born with a chronic condition and needs regular care. Mark also expects there may be a couple of unplanned trips to the doctor or emergency room in the year. To help cover their out-of-pocket costs, they use an HSA. For 2015, Mark estimates his family’s medical expenses will come to $1,800 (the plan pays preventive care 100%).

Mark also contributes $1,500 to his HSA. He can use the money to offset his deductible or save for future use. Based on Mark’s expected health care needs, the Choice Premier HSA is the least expensive plan, but he’ll need to be sure he has enough money set aside in his HSA or personal savings if he incurs unexpected medical costs – he could be responsible for up to $11,200 (in-network). Because of his lower medical contributions, he can afford to contribute more money into this tax-advantaged account.

Here’s what his math looks like for each of the plans:

HIGH DEDUCTIBLE HEALTH PLANS

PPO

Considerations Choice Plus HSA Choice Max HSA Choice Premier HSA Choice Plus*

Mark’s 2015 payroll deductions for

employee plus family coverage $4,788 $2,520 $936 $9,600

Pays toward deductible (in-nework) $1,800 of the $2,600 deductible $1,800 of the $4,000 deductible $1,800 of the $5,600 deductible $1,500 of the $1,500 deductible Dollars in excess of deductible paid

through coinsurance (Mark pays 20% and the plan pays 80%, up to the out-of-pocket maximum)

$0 $0 $0 $60 (20% of his remaining $300 in expenses) HSA dollars**

(Farmers contribution) – $1,000 – $1,000 – $1,000 N/A

Total Cost for Mark: $5,588 $3,320 $1,736 $11,160

Maximum exposure for out-of-pocket (in-network) medical expenses (does not include payroll deductions)

$5,200 $8,000 $11,200 $3,000

**Under Choice Plus, prescription drugs are covered with copays and are not subject to the deductible. To simplify these examples, no prescription drug expenses were included. ** If Mark elects Choice Plus HSA, Choice Max HSA or Choice Premier HSA and contributes at least $200 to an Optum Bank HSA through payroll deductions, Farmers will

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MEET JANET

Age: 26

Status: Looking for employee coverage

Health snapshot: Healthy – uses minimal health care

Janet takes good care of herself. She eats a balanced diet and exercises regularly. She does not have any chronic conditions and does not take any regular

medication. Aside from her annual physical and lab work, she rarely goes to the doctor. Because she doesn’t need a lot of health care, she doesn’t want to pay for coverage she’s not going to use.

Janet keeps a tight budget and wants to keep her payroll contributions as low as possible. But she also wants to protect herself in case something unexpected happens. She could consider putting the money she saves from lower

contributions into her HSA, which she can use as a health emergency fund if she needs it in the future.

For 2015, Janet estimates her medical expenses will be no more than $200 (plan pays for preventive care at 100%). Janet also makes a $500 contribution to her HSA. She can use this money to offset her deductible or save for future use. Based on Janet’s expected health care needs, the Choice Premier HSA is the least expensive plan.

Still, she needs to be able to pay $5,600 (out-of-pocket maximum in-network), and/or $8,400 (out-of-network) in the event she has an unexpected illness or injury and plan accordingly.

Here’s what her math looks like for each of the plans:

HIGH DEDUCTIBLE HEALTH PLANS

PPO

Janet’s 2015 payroll deductions for

employee coverage $1,572 $828 $312 $3,144

Pays toward deductible $200 of the $1,300 deductible $200 of the $2,000 deductible $200 of the $2,800 deductible $200 of the $750 deductible Dollars in excess of deductible paid

through coinsurance (Janet pays 20% and the plan pays 80%, up to the out-of-pocket maximum)

$0 $0 $0 $0

HSA dollars**

(Farmers contribution) – $500 – $500 – $500 N/A

Total Cost for Janet $1,272 $528 $12 $3,344

Maximum exposure for out-of-pocket medical expenses (does not include payroll deductions)

$2,600 $4,000 $5,600 $1,500

**Under Choice Plus, prescription drugs are covered with copays and are not subject to the deductible. To simplify these examples, no prescription drug expenses were included. ** If Janet elects Choice Plus HSA, Choice Max HSA or Choice Premier HSA and contributes at least $100 to an Optum Bank HSA through payroll deductions, Farmers will

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MEET DENISE

Age: 38

Status: Looking for employee plus child(ren) coverage Health snapshot: Uses health care frequently for family needs

Denise and her husband know that in a family of five, health care expenses can be hard to predict. Her husband has coverage through his employer but Denise covers the children under Farmers’ plan. Having three active children under the age of 12 means injuries are not uncommon. Additionally, Denise has minor surgery planned for the coming year. To help cover expected and unexpected costs, they use an HSA. Because of their lower medical contributions, they can afford to contribute money into this tax-advantaged account.

For 2015, Denise thinks her family’s health care costs may reach $20,000. Denise also contributes $3,000 to her HSA. She can use the money to offset her deductible or save for future use. Based on Denise’s expected health care needs, the Choice Plus HSA is the least expensive plan.

Here’s what her math looks like for each of the plans:

HIGH DEDUCTIBLE HEALTH PLANS

PPO

Denise’s 2015 payroll deductions for

employee plus child(ren) coverage $2,664 $1,404 $456 $5,352

Pays toward deductible $2,600 of the $2,600 deductible $4,000 of the $4,000 deductible $5,600 of the $5,600 deductible $1,500 of the $1,500 deductible Dollars in excess of deductible paid

through coinsurance (Denise pays 20% and the plan pays 80%, up to the out-of-pocket maximum)

$2,600 (hits out-of-pocket maximum) $3,200 (20% of her remaining $16,000 in expenses) $2,880 (20% of her remaining $14,400 in expenses) $1,500 (hits out-of-pocket maximum) HSA dollars**

Total Cost for Denise $6,864 $7,604 $7,936 $8,352

Maximum exposure for out-of-pocket (In-network) medical expenses (does not include payroll deductions)

$5,200 $8,000 $11,200 $3,000

*Under Choice Plus, prescription drugs are covered with copays and are not subject to the deductible. To simplify these examples, no prescription drug expenses were included. ** If Denise elects Choice Plus HSA, Choice Max HSA or Choice Premier HSA and contributes at least $200 to an Optum Bank HSA through payroll deductions, Farmers will

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MEET LARRY

Age: 61

Status: Looking for employee plus spouse coverage

Health snapshot: Fairly healthy, uses health care moderately

Larry and his wife are just a few years away from retirement, so he’s been preparing by contributing as much as possible to his HSA. He likes the pre-tax savings opportunity available with the HSA, and he knows that these funds will be useful in his retirement years to help pay for his eligible expenses.

Larry and his wife are generally healthy. He has high blood pressure, but he takes medication and receives regular care so his condition is well-managed. On top of his regular care, Larry thinks there might be only one or two trips to the doctor’s office for allergies or other minor illnesses.

For 2015, Larry expects his medical expenses will come to $2,700 (beyond preventive care). Larry also contributes $6,650 to his HSA (because he is over 55, he takes advantage of the additional $1,000 catch-up contribution). He can use this money to offset his deductible and coinsurance or save for future use. Here’s what his math looks like for each. Based upon Larry’s expected health care costs, the Choice Premier HSA looks like the best option. Larry knows this plan has an in-network out-of-pocket maximum of $11,200; the most he’ll have to pay if he incurs unexpected medical costs. Turn the page to see what happens.

HIGH DEDUCTIBLE HEALTH PLANS

PPO

Larry’s 2015 payroll deductions for

employee plus spouse coverage $3,612 $1,896 $708 $7,236

Pays toward deductible $2,600 of the $2,600 deductible $2,700 of the $4,000 deductible $2,700 of the $5,600 deductible $1,500 of the $1,500 deductible Dollars in excess of (in-network)

deductible paid through coinsurance (Larry pays 20% and the plan pays 80%, up to the out-of-pocket maximum) $240 (20% of his remaining $100 in expenses) $0 $0 $240 (20% of his remaining $1,200 in expenses) HSA dollars**

Total Cost for Larry $5,232 $3,596 $2,408 $8,976

Maximum exposure for out-of-pocket in-network medical expenses (does not include

payroll deductions)

$5,200 $8,000 $11,200 $3,000

*Under Choice Plus, prescription drugs are covered with copays and are not subject to the deductible. To simplify these examples, no prescription drug expenses were included. ** If Larry elects Choice Plus HSA, Choice Max HSA or Choice Premier HSA and contributes at least $200 to an Optum Bank HSA through payroll deductions, Farmers will

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AS IT TURNS OUT…

Larry’s wife needed multiple surgeries and physical therapy after she fell and broke her leg. This caused their 2015 health care expenses to rise to $68,000. The out-of-pocket maximum under all four medical options protected them from paying the full cost of their large claims from their own pocket. Based on Larry’s expectations, the Choice Premier HSA originally looked like the best option. However, Larry’s plan met with the unexpected. If Larry could have forseen the future, the Choice Plus HSA plan would have been the best choice. However, since he’s been putting money into his HSA, he has the funds to pay for his portion of the medical expenses, which are capped by out-of-pocket maximums.

Here’s what their 2015 costs actually look like.

HIGH DEDUCTIBLE HEALTH PLANS

PPO

Larry’s 2015 payroll deductions for

employee plus spouse coverage $3,612 $1,896 $708 $7,236

Pays toward deductible (in-network) $2,600 of the $2,600 deductible $4,000 of the $4,000 deductible $5,600 of the $5,600 deductible $1,500 of the $1,500 deductible Dollars in excess of deductible paid

through coinsurance (Larry pays 20% and the plan pays 80%, up to the out-of-pocket maximum)

$ 2,600 in coinsurance, plus her deductible, puts Larry at the $5,200 out-of- pocket maximum

$4,000 in coinsurance, plus her deductible, puts Larry at the $8,000 out-of-pocket maximum

$5,600 in coinsurance, plus her deductible, puts Larry at the $11,200 out-of-pocket maximum

$1,500 in coinsurance, plus her deductible, puts Larry at the $3,000 out- of-pocket maximum HSA dollars**

Total Cost for Larry $7,812 $8,896 $10,908 $10,236

Maximum exposure for out-of-pocket medical expenses (in-network)

$5,200 $8,000 $11,200 $3,000

*Under Choice Plus, prescription drugs are covered with copays and are not subject to the deductible. To simplify these examples, no prescription drug expenses were included. ** If Larry elects Choice Plus HSA, Choice Max HSA or Choice Premier HSA and contributes at least $200 to an Optum Bank HSA through payroll deductions, Farmers will

contribute $1,000 to his HSA. Larry can contribute the money he’s saving on his monthly contributions to further increase his HSA savings.

PLAN FOR THE

UNEXPECTED:

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REMEMBER:

As you consider your health care costs for 2015, remember to take into account your Benefit Dollars and HSA Dollars, which further offset the cost of your Farmers benefits.

MAKE A SMART CHOICE –

VISIT UHC’S PRE-MEMBER WEBSITE

When you consider which medical option is right for you, remember that the monthly employee contribution is only a part of your health care costs.

Your total health care expenses include your payroll contributions and your out-of-pocket health care expenses. The UHC Plan Cost Estimator can help you add up all of these considerations.

The UHC Plan Cost Estimator analyzes your unique needs – like your prescription drug costs, treatment for chronic conditions and any planned procedures – and compares what your health care expenses could be under each of the medical plan options. You can use the UHC Plan Cost Estimator to model contributions to your HSA and Health Care FSA to maximize your tax savings and manage your total out-of-pocket costs.

When using the Plan Cost Estimator, remember to plan for the unexpected and consider what you have and what you can contribute to your HSA when making your medical plan decisions.

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USE HEALTHFIRST PLUS

HealthFirst Plus makes your

life easier and healthier. Learn more about all the HealthFirst Plus services available to you by

calling (866) 553-8713.

HEALTH

FIRST PLUS

We’re in this together! Your health care is a shared responsibility – your health care costs reflect our actual claims experience. Taking care of yourself and getting the right care at the right time benefits you and Farmers.

With a single call to HealthFirst, you can start living a healthier life. Call anytime and

speak with a health specialist, wellness coach or nurse, who will provide assistance and help you find the health program or service that best meets your needs. Consider this your personal health care concierge service to help you:

Find a doctor (they’ll even schedule your appointment) Compare treatment options and costs

Work with a nurse who can provide support and help you live better with an ongoing condition such as back pain, diabetes, or heart disease

Better understand your medications, tests and procedures Create a personalized fitness plan

Enroll in the diabetes prevention and control program

Understand your symptoms and decide if you should see a doctor Connect with the Employee Assistance Program (EAP)

HealthFirst Plus makes your life easier and healthier. Learn more about all the HealthFirst Plus services available to you by calling

(866) 553-8713. So, whether you have a short-term health situation or a long-term health condition, HealthFirst Plus has health

specialists, wellness coaches, and registered nurses available to provide specialized support.

In certain situations, you may be contacted directly by a HealthFirst nurse or health specialist. If that happens, take advantage of

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VISION

Take care of your eyes with vision coverage through Farmers. Our vision plan offers the convenience of being able to use any vision care provider, but a lower out-of-pocket expense for you if you choose an EyeMed provider. To find an EyeMed provider near you, visit www.eyemedvisioncare.com.

At a glance: Your vision coverage

Coverage In-network Out-of-network

Exams $10 copay, once every calendar year $50 allowance Lenses $25 copay, once every calendar year $50 to $75 allowance

Frames $0 copay with a $150 retail allowance, once

every two calendar years $70 allowance

Contact lenses $0 copay with a $150 retail allowance, once every calendar year instead of lenses

$105 allowance for elective contact lenses $210 allowance for necessary contact lenses

THE EYEMED PLAN OFFERS YOU THESE EXTRA DISCOUNTS:

Save 40 percent on all additional complete eyeglasses pair purchases (unlimited use)

Save an average of 15 percent on regular price services through Laser Vision Correction or 5 percent off promotional prices through the U.S. Laser Network

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DENTAL

Good dental care plays an important part in your overall health. Take care of your teeth and gums with dental coverage through Farmers. You have a choice of two Aetna dental plan options: the Dental PPO and the Dental DMO. You can also enroll in the MetLife DMO (formerly known as Safeguard DMO) if you live in California, Texas or Florida. The plans generally cover the same types of services, but how you access care and share costs differ.

How the Dental PPO works

The Dental PPO offers coverage for a broad range of services with a low deductible, and your preventive dental care is covered at 100 percent. For other dental services, you’ll share the cost with the plan by paying coinsurance. You can see any provider but you’ll maximize your benefits when you see in-network providers.

How the Dental DMO and MetLife DMO work

The Dental DMO administered by Aetna is available in most areas and the MetLife DMO is available to you if you live in the DMO service areas in California, Texas or Florida. Both offer coverage for a broad range of services with no deductibles or annual maximums, and you’ll pay a fixed copay for services other than diagnostic and some preventive dental care. If you’re eligible for either DMO, it will be listed as an available option on your benefit enrollment screen.

Under the DMO options, you and each of your covered family members must choose a participating primary care dentist (PCD) for coverage (generally there are no out of network benefits). If you do not choose a PCD by contacting Aetna or MetLife before the beginning of the year, you will not be able to obtain dental services until a provider is selected.

You can find an Aetna PCD by calling Aetna Customer Service at (877) 238-6200 or using the DocFind®_{tool at}_{www.aetna.com/docfind}_{. To find a MetLife PCD, visit}

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At a glance: Your dental options

You can find the schedule of dental benefits for each dental plan and for specifics on how procedures are paid for the dental plans on “Benefits & Policies.”

Dental PPO Dental DMO

(if available in your area)

MetLife DMO (California, Florida and Texas only)

Deductible $50 per person, up to $100

per family None None

Annual plan

maximum $1,500 None None

Preventive services, such as cleanings and oral exams (up to two per calendar year)

Plan pays 100% (not subject to deductible)

$3 to $50 copay depending on the type of procedure

$3 to $35 copay depending on the type of procedure

Basic services, such as

extractions and fillings

Plan pays 80% after deductible

$5 office copay for all office visits plus fixed copay per service, ranging from $3 to $50 depending on the type of procedure

$5 to $80 copay, depending on the type of procedure***

Major services, such as crowns and bridges

Plan pays 50% after deductible

$5 office copay for all office visits plus fixed copay per service, ranging from $5 to $350 depending on the type of procedure

$10 to $300 copay, depending on the type of procedure***

Orthodontia*

Plan pays 50% after deductible, up to a lifetime maximum of $1,500** (children only)

Screening exam: $30 Diagnostic records: $150 Adolescent and adult: $1,845 Orthodontic retention: $275

Treatment of adolescent/

adult dentition: $725

Orthodontic treatment

adolescent and adult: $1,695

Orthodontic treatment plan

and records: $250 * To be eligible for the orthodontia benefits in any of the dental options, the treatment must begin after the first day your dental coverage takes effect. This means if

orthodontia treatment began in 2014 and you are initially enrolling for dental coverage as of January 1, 2015, the orthodontia benefit is excluded. **The Dental PPO option provides orthodontia coverage only for eligible dependent children under the age of 26.

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LIFE AND DISABILITY

Farmers pays for basic life insurance equal to your annual salary up to $500,000. You can use after-tax dollars to buy supplemental life insurance for yourself of one to six times your annual salary. Your cost of coverage will be based on your age and whether you have used tobacco products within the last 12 months. The maximum coverage, including your company-paid coverage, is $3.5 million.

The plan is administered by Prudential. Visit www.prudential.com/farmers where you can find an interactive tool “Talk to Pete” for help in determining your life insurance needs under the “Watch and Learn More” tab.

For your spouse/domestic partner

You can use after-tax dollars to buy life insurance coverage for your spouse/ domestic partner. The amount of coverage depends on whether you elect supplemental life insurance coverage for yourself:

Without supplemental coverage for yourself, you can purchase coverage equal to $10,000 or $25,000 for your spouse/domestic partner

With supplemental coverage for yourself, you can purchase coverage equal to $10,000, $25,000, $50,000, $75,000 or $100,000 for your spouse/domestic partner, so long as the amount does not exceed the combined total of your basic and supplemental coverage

For your children

You can use after-tax dollars to buy life insurance coverage for your eligible dependent children in the amount of $10,000.

EVIDENCE OF

INSURABILITY

Any increase to your supplemental or spouse life insurance is subject to evidence of insurability (EOI) and approval by Prudential. If you elect to increase your coverage, you will receive an email from Prudential in late November or early December with instructions on how to provide EOI.

It’s your responsibility to complete and submit evidence of insurability to Prudential and to ensure your application has been processed and approved. Your election will not become effective until your application has been approved. If approved, the effective date of coverage will be the date of approval.

TOBACCO-FREE

DISCOUNT

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ACCIDENTAL DEATH &

DISMEMBERMENT BENEFITS

Accidental death & dismemberment (AD&D) coverage pays a benefit if you die or suffer serious injury as a result of a covered accident. You can buy AD&D coverage of one to six times your annual salary, up to a maximum of $1.5 million, on a pre-tax basis for yourself and your family. The plan is administered by Zurich.

If you elect employee-only coverage, AD&D benefits will be paid at 100 percent of the amount you selected. If you elect family coverage, AD&D benefits will be paid as follows:

For you: 100 percent of the amount selected

For your spouse/domestic partner if there are no children: 60 percent of the amount you selected (no maximum benefit) For your spouse/domestic partner if there are child(ren):

50 percent of the amount you selected for your spouse/domestic partner (no maximum benefit)

For your child(ren) if there is a spouse/domestic partner:

15 percent of the amount you selected for each child, up to $100,000 For child(ren) if there is no spouse/domestic partner:

20 percent of the amount you selected for each child, up to $100,000 Business travel accident benefits

Farmers pays the full cost of your business travel accident benefits. This coverage provides financial protection in case of your injury or death as a result of an accident while traveling on company business, excluding vacations and regular commutes to and from work. Depending on your injury, the benefit may be up to three times your annual salary to a maximum of $500,000.

Zurich Travel Assist

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DISABILITY

To help you protect your income in the event of an accident or injury, Farmers offers you short-term and long-term disability benefits, accidental death & dismemberment benefits, life insurance and business travel accident benefits. Short-term disability benefits

Farmers pays the full cost of your short-term disability insurance, administered by Liberty Mutual. After seven consecutive calendar days of total disability (called the elimination period) your short-term disability payments will begin and may continue for up to an additional 25 weeks. During the elimination period, you’ll be paid through PTO, if available. After the elimination period, short-term disability coverage will provide:

100 percent of your pay for the first five weeks 85 percent of your pay for the next 11 weeks 70 percent of your pay for the remaining nine weeks

Your short-term disability payment will be offset by the amount you receive from state disability insurance, if any.

If you were a Farmers employee with 20 or more years of service as of December 31, 2008, you have a modified schedule for short-term disability benefits.

For more information, go to Farmers Today and log in to the GEMS portal through HR Connection. Click on the “Employee Self Service” tab. Then, access

“Benefits & Policies.”

Long-term disability benefits

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WORK/LIFE BALANCE

Legal plan

Hyatt Legal Plans, a MetLife company, offers you access to a nationwide network of attorneys. The plan provides coverage for attorney fees for routine legal matters, including:

Will planning, living wills, trusts

Civil litigation defense, consumer protection, real estate matters Purchase, sale or refinancing of your home

Adoption, name change and premarital agreements Traffic ticket defense

Debt collection defense, including identity theft defense

Preparation of affidavits, powers of attorney, deeds, demand letters Document review

For coverage in 2015, you must enroll by December 15, 2014. If you enroll, you’ll pay for legal plan coverage with after-tax dollars at a rate of $10.33 per paycheck. For more information, or to enroll, call Hyatt Legal at (800) 821-6400 or visit

www.legalplans.com, click on “Thinking About Enrolling” and enter password 1500997. You may also link to this site through the Annual Enrollment online portal. Adoption assistance

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Employee Assistance Program (EAP)

Farmers offers an Employee Assistance Program through United Behavioral Health to help you and your family manage work and personal life. The EAP includes up to six free face-to-face counseling sessions per person and information about many lifestyle issues. The EAP is a free, confidential service provided to all employees, their household members, and eligible dependents.

For EAP services, call (866) 533-8713 or visit www.liveandworkwell.com (access code: farmersins).

Commuter plan

The Commuter Benefit Plan enables employees to use tax-free income to pay for mass transit expenses (trains, subways, buses, ferries and vanpools) as well as pay for work-related parking expenses. The current 2014 monthly tax-free limit for mass transit is up to $130 a month and up to $250 a month for parking expenses. Election amounts that exceed this monthly limit will be treated as after-tax

contributions. As of the date this guide was developed, the IRS has not yet released the 2015 limits. Check www.irs.gov for more information on 2015 limits.

If you choose to enroll in this plan you will receive a Beniversal MasterCard from

Benefit Resource, the vendor for this plan. The Beniversal card is accepted only by mass transit and parking vendors. Benefit Resource offers a cash reimbursement option for expenses incurred where MasterCard is not accepted.

Your initial enrollment in this plan may occur at any time during the year, not just during open enrollment. Please be aware that your elections are made on a monthly, rather than annual, basis. Your monthly election will self-renew each month and you are able to make changes as often as you wish. Unused balances on your Beniversal card will rollover month after month, year after year.

Note: Greater Los Angeles Rideshare participants currently enrolled in payroll deductions may not select this Commuter Benefit Plan in addition to current enrollment.

And there’s more

In addition, Farmers also provides a number of benefits that will help meet other needs you and your family may have: Credit union

Tuition assistance

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RETIREMENT

The Farmers 401(k) Savings Plan and Pension Plan give you the opportunity to build financial security for your retirement. Although you don’t need to make any decisions related to your retirement benefits during Annual Enrollment, it’s a good time of year to review these benefits to ensure that you are prepared for the future. Farmers Group, Inc. 401(k) Savings Plan

The Farmers Group, Inc. 401(k) Savings Plan is a defined contribution plan,

administered by Vanguard. The plan allows you to set aside 1 percent to 50 percent of your eligible pay, and for certain eligible employees, 1 percent to 85 percent of your Short Term Incentive Plan (STIP) or Sales Incentive Plan (SIP) award, on a pre-tax basis, a Roth after-pre-tax basis, or a combination of both, up to the IRS maximum (indexed each year). The maximum contribution for 2014 is $17,500. As of the date this guide was printed, the IRS has not yet released the maximum contribution for 2015. Check on Vanguard at www.vanguard.com/retirementplans or www.irs.gov

for more information on 2015 maximum contributions.

If you will be age 50 or older in 2015 and contribute the maximum allowed, you can make additional contributions to the plan on a pre-tax or Roth after-tax basis. This additional amount is allowed as a catch-up contribution (indexed each year). The maximum catch-up contribution for 2014 is $5,500, for a total contribution maximum of $23,000 for 2014. As of the date this guide was printed, the IRS has not yet released the maximum catch-up contribution for 2015. Check Vanguard or

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How the Roth 401(k) contributions work

A Roth 401(k) contribution combines the best features of a 401(k) plan and a Roth IRA. Similar to a Roth IRA, you contribute after-tax dollars to the account. Because you pay taxes on the money at the time of your contributions, you can withdraw the money tax free at retirement, provided you’re at least age 59½ and you’ve held the account for at least five years. The benefit of a Roth 401(k) is that you can save more than with a Roth IRA – for 2014 the maximum allowed (combination of pre-tax and Roth contributions) by the IRS is $17,500, or $23,000 for employees age 50 or older.

Farmers Group, Inc. Employees’ Pension Plan The Farmers Group, Inc. Employees’ Pension Plan is a company-paid, pension plan. There is no cost to you for this benefit. You’re automatically a participant in the Pension Plan as of your hire date, and you become vested in the Plan benefits after three years of service.

Be sure to visitwww.vanguard.com/retirementplans

where you can:

View your savings plan balance and pension plan benefit

Change your savings plan deferral percentage

Estimate your pension benefit at retirement

View electronic statements and confirmations

Update your beneficiary designations

And much more

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CONTACT INFORMATION

If you have questions about your Farmers benefits or about Annual Enrollment, go online to “Benefits and Policies” through HR Connection on Farmers Today. If you can’t find your answer, call the HR Service Center at (888) 599-3636. For more specific information, use this list to find the right contact.

For questions about… Contact…

Medical Benefits

UHC

( (800) 752-7451 : www.myuhc.com HealthFirst Plus

(NurseLine, EAP, Wellness Program)

HealthFirst Plus (UHC/OptumHealth)

( (866) 553-8713

: www.liveandworkwell.com (EAP - access code: farmersins) Prescription Drug Benefits

Express Scripts ( (800) 987-5248 (members) : www.express-scripts.com ( (877) 722-6279 (non-members – annual enrollment) : www.express-scripts.com/farmers Dental Benefits Aetna ( (877) 238-6200 : www.aetna.com MetLife ( (800) 880-1800 : www.metlife.com/mybenefits Vision Benefits EyeMed ( (866) 299-1358 (non-members) or (866) 723-0514 (members) : www.eyemedvisioncare.com

Health Savings Accounts

Optum Bank ( (800) 791-9361

: www.optumbank.com or myuhc.com Flexible Spending Accounts

Benefit Resource, Inc. ( (800) 473-9595

: www.benefitresource.com

Short-Term Disability

Liberty Mutual ( (800) 793-2797

: www.mylibertyclaim.com to file a claim : www.mylibertyclaimstatus.com for claim status Commuter Program

(mass transit commuting and parking)

Benefit Resource, Inc. ( (800) 473-9595

: www.benefitresource.com

Long-Term Disability

Liberty Mutual ( (800) 793-2797

: www.mylibertyclaim.com to file a claim : www.mylibertyclaimstatus.com for claim status

Life Insurance

HR Service Center ( (888) 599-3636

( (888) 257-0412 (Prudential) for evidence of insurability : [email protected]

AD&D and Business Travel Insurance

HR Service Center ( (888) 599-3636

: [email protected] Farmers Group, Inc. 401(k) Savings Plan

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CONTACT INFORMATION CONT.

For questions about… Contact…

Zurich Travel Assist

( (800) 263-0261 (U.S. and Canada) ( (416) 977-0277 (Outside U.S. and Canada) Legal Plan

Hyatt Legal ( (800) 821-6400 : www.legalplans.com

GLOSSARY

Benefit Dollars: Additional income provided by Farmers to offset the total cost of your benefit elections. Benefit dollars will be paid to you in your regular paychecks.

Coinsurance: The percentage of the bill you pay after you meet the deductible. Copay: A set fee you pay for prescription drug purchases under Choice Plus.

Deductible: The amount of out-of-pocket expenses you pay before the plan begins to pay benefits for covered services.

Dental and Vision FSA: A Flexible Spending Account (FSA) that can be used in combination with a High Deductible Health Plan to pay for eligible dental and vision expenses only.

Flexible Spending Account (FSA): A financial account that allows you to set aside pre-tax money to use on expected health care expenses or dependent day-care expenses incurred during the plan year.

Generic drugs: Drugs that are chemically identical to brand-name drugs in dosage form, safety, strength and quality and they cost significantly less.

Health Savings Account (HSA): A special savings account available to High Deductible Health Plan participants only.

Participants contribute pre-tax dollars to pay for eligible health care expenses. HSA money earns interest, and any unused HSA money rolls over from year to year.

High Deductible Health Plan (HDHP): A type of health plan that has lower paycheck contributions and a high deductible and out-of-pocket maximum. This type of plan is compatible with a Health Savings Account.

HSA dollars: The organization’s contribution to your HSA if you make the

minimum contribution through payroll deductions to an existing or a new Optum Bank HSA.

In-network: A provider or facility that has contracted with UHC to provide services at negotiated rates.

Long-term disability plan: An insurance plan that provides income-replacement benefits for disabilities that continue beyond 26 weeks.

Non-preferred brand-name drugs: Non-preferred brand-name drugs are not considered preferred because there are less expensive drugs with similar efficacies.

Out-of-network: A provider or facility that has not contracted with UHC to provide services at negotiated rates. Payroll deductions: The amount you pay out of your paycheck for your chosen Farmers benefits.

Plan Cost Estimator: UHC’s online tool that can help you determine the best medical plan option for you and your family based on your estimated out-of-pocket costs (contributions and expenses) for each option by comparing plan costs and features. To log in, go to www.welcometouhc.com/farmers.

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Reasonable and Customary: Reasonable and customary charges apply to non-network covered services and mental health/substance abuse non-network benefits. The charges made by a physician, surgeon or supplier of services, medicines or supplies that does not exceed the general level of charges made by others rendering or furnishing like services, medicines or supplies, within the geographic areas in which the charge is incurred.

Short-term disability plan: A short-term plan that helps ensure that income and benefits continue when you are disabled for more than five continuous work days due to injury or illness.

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IMPORTANT NOTICES

Privacy Notice of Availability

Under the Health Insurance Portability and accountability Act of 1996 (HIPAA), Farmers Group, Inc., as sponsor of our medical plans (the “Plan”) is required to provide you with a HIPAA Notice of Privacy Practices (“Notice”) at the time of your enrollment and at certain other times. In addition, the Plan is required to periodically notify you of the availability of the Notice and provide you with information on how to obtain a copy of the Notice.

You may obtain a copy of the Plan’s Notice at any time by visiting Benefits & Policies. From Farmers Today, click on GEMS under HR Connection > Employee Self Service > Benefits and Policies. To request a paper copy of this Notice, contact the HRSC at (888) 599-3636. This reminder pertains only to those health care benefits provided under the Plan that are covered under HIPAA’s privacy rules.

Note: If you’re covered by one or more fully-insured group health plans offered by Farmers, you will receive a separate note regarding the availability of the Notice and how to obtain a copy of the Notice directly from the insurance carrier.

Women’s Health and Cancer Rights Act

The Women’s Health and Cancer Rights Act is a Federal law. It protects breast cancer patients who elect breast reconstruction due to a mastectomy. Health care plans must cover reconstructive surgery following a mastectomy, as determined in consultation with the attending physician and the patient.

Reconstructive benefits must include coverage for:

Reconstruction of the breast on which the mastectomy has been performed

Surgery and reconstruction of the other breast to produce a ymmetrical appearance

Prosthesis and physical complications at all stages of mastectomy, including lymphedemas

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Premium Assistance Under Medicaid and the Children’s Health Insurance Program (CHIP)

If you or your children are eligible for Medicaid or CHIP and you’re eligible for health coverage from your employer, your state may have a premium assistance program that can help pay for coverage, using funds from their Medicaid or CHIP programs. If you or your children aren’t eligible for Medicaid or CHIP, you won’t be eligible for these premium assistance programs but you may be able to buy individual insurance coverage through the Health Insurance Marketplace. For more information, visit www.healthcare.gov.

If you or your dependents are already enrolled in Medicaid or CHIP and you live in a State listed below, contact your State Medicaid or CHIP office to find out if premium assistance is available.

If you or your dependents are NOT currently enrolled in Medicaid or CHIP, and you think you or any of your dependents might be eligible for either of these programs, contact your State Medicaid or CHIP office or dial 1-877-KIDS NOW or

www.insurekidsnow.gov to find out how to apply. If you qualify, ask your state if it has a program that might help you pay the premiums for an employer-sponsored plan.

If you or your dependents are eligible for premium assistance under Medicaid or CHIP, as well as eligible under your employer plan, your employer must allow you to enroll in your employer plan if you aren’t already enrolled. This is called a “special enrollment” opportunity, and you must request coverage within 60 days of being determined eligible for premium assistance. If you have questions about enrolling in your employer plan, contact the Department of Labor at www.askebsa.dol.gov or call 1-866-444-EBSA (3272).

To see if any more states have added a premium assistance program since July 31, 2014, or for more information on special enrollment rights, you can contact either:

U.S. Department of Labor Employee Benefits Security Administration

www.dol.gov/ebsa

(866) 444-EBSA (3272)

U.S. Department of Health and Human Services Centers for Medicare & Medicaid Services

www.cms.hhs.gov (877) 267-2323,

Menu Option 4, Ext. 61565

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STATE MEDICAID AND CHIP CONTACT INFO

If you live in one of the following states, you may be eligible for assistance paying your employer health plan premiums. The following list of states is current as of July 31, 2014. Contact your State for more information on eligibility.

State Contact information

ALABAMA – Medicaid Website: http://www.medicaid.alabama.gov Phone: 1-855-692-5447

ALASKA – Medicaid

Website: http://health.hss.state.ak.us/dpa/programs/medicaid/ Phone (Outside of Anchorage): 1-888-318-8890

Phone (Anchorage): 907-269-6529 ARIZONA – CHIP

Website: http://www.azahcccs.gov/applicants Phone (Outside of Maricopa County): 1-877-764-5437 Phone (Maricopa County): 602-417-5437

COLORADO – Medicaid

Medicaid Website: http://www.colorado.gov/ Medicaid Phone (In state): 1-800-866-3513 Medicaid Phone (Out of state): 1-800-221-3943 FLORIDA – Medicaid Website: https://www.flmedicaidtplrecovery.com/

Phone: 1-877-357-3268 GEORGIA – Medicaid

Website: http://dch.georgia.gov/

Click on Programs, then Medicaid, then Health Insurance Premium Payment (HIPP) Phone: 1-800-869-1150

IDAHO – Medicaid

Medicaid Website: http://healthandwelfare.idaho.gov/Medical/Medicaid/PremiumAssistance/ tabid/1510/Default.aspx

Medicaid Phone: 1-800-926-2588 INDIANA – Medicaid Website: http://www.in.gov/fssa

Phone: 1-800-889-9949

IOWA – Medicaid Website: www.dhs.state.ia.us/hipp/ Phone: 1-888-346-9562

KANSAS – Medicaid Website: http://www.kdheks.gov/hcf/ Phone: 1-800-792-4884

KENTUCKY – Medicaid Website: http://chfs.ky.gov/dms/default.htm Phone: 1-800-635-2570

LOUISIANA – Medicaid Website: http://www.lahipp.dhh.louisiana.gov Phone: 1-888-695-2447

MAINE – Medicaid

Website: http://www.maine.gov/dhhs/ofi/public-assistance/index.html Phone: 1-800-977-6740

TTY 1-800-977-6741

MASSACHUSETTS – Medicaid and CHIP Website: http://www.mass.gov/MassHealth Phone: 1-800-462-1120

MINNESOTA – Medicaid

Website: http://www.dhs.state.mn.us/ Click on Health Care, then Medical Assistance Phone: 1-800-657-3629

MISSOURI – Medicaid Website: http://www.dss.mo.gov/mhd/participants/pages/hipp.htm Phone: 573-751-2005

MONTANA – Medicaid

Website: http://medicaidprovider.hhs.mt.gov/clientpages/ clientindex.shtml

Phone: 1-800-694-3084

NEBRASKA – Medicaid Website: www.ACCESSNebraska.ne.gov Phone: 1-855-632-7633