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THE PEOPLEBEHIND THE PROMISE 2014 Pharmacists Mutual has been the only pharmacy insurance Ive had since I started my career over two decades ago. They have been there through multiple break- ins and delivery car fender benders at my two stores and never faltered. I never felt pressured cheated or threats of huge premium increases. Ive been approached many times to change and actually received quotes but their pricing was spot on and their knowledge of the profession is next to none I will never change. Joe Amaismeier Center Pharmacy and Toronto Apothecary 3Pharmacists Mutual Annual Report TABLE OF CONTENTS VISION MISSION VALUES CEO MESSAGE BOARD CHAIR MESSAGE BOARD OF DIRECTORS RICE AWARDS RICE RECOGNITION RICE SPOTLIGHTS PHARMACISTS MUTUAL AWARDS EXECUTIVE TEAM RECOGNITION OF TOM CLAUDE FINANCIAL HIGHLIGHTS FINANCIAL CHARTS TERRITORIES SERVED RISK MANAGEMENT SERVICES 2 4 8 12 14 16 18 24 28 30 32 34 36 38 4 Pharmacists Mutual Annual Report VISION MISSION VALUES Our vision mission and values are the guiding ideas and principles upon which we do business. Our vision is our idyllic future and represents the spirit of who we are and what we intend to become while our mission describes the overall purpose of our organization and is an unmistakable depiction of why this company exists. Our values represent our commit- ment to our customers employees and community. OUR VISION To be the leading provider of insurance and risk management solutions by building enduring relationships with our select markets. OUR MISSION To help our customers attain peace of mind through specialized insurance solutions and superior personal service. 5Pharmacists Mutual Annual Report OUR VALUES Relationships We are dedicated to being a successful mutual insurance company accountable to and supported by our policy owners. We offer a diverse and rewarding work environment founded on respect trust and teamwork. We establish mutually beneficial relationships with associations that support the professional well-being of our customers. We choose business partners who share our core values. Integrity We are honest in everything we do. We are committed to high standards of ethical conduct. Citizenship We support our communities and professional associations. We advocate for the interests we share with our customers. Excellence Our success depends on the talents skills and knowledge of our employees. Our products expertise and service deliver value to our customers. We are committed to continuous improvement. We manage the companys resources to ensure its profitability and independence in order to honor the promises we have made. 6 This years annual report celebrates the People behind the Promise the basic premise of insurance people promising to help others dealing with unforeseen events. As a mutual insurance company many people help to uphold the promise including our members who have banded together to provide insurance for each other. My co-workers and I have the honor of serving you to ensure those promises are kept. This report highlights some of those colleagues who have shined brightly in service to you. Through its mission statement Pharmacists Mutual promises to help you attain peace of mind by operating with the core values of Relationships Integrity Citizenship and Excellence. Each quarter we recognize several employees who have been nominated by their peers with RICE awards for exhibiting our values. Although THE CEO MESSAGE Edward Yorty President CEO 7Pharmacists Mutual Annual Report nominations come from co-workers the inspiration often comes from feedback from our members about someones exceptional service. Please read through the following pages as we showcase several recent winners of these awards. Another colleague also deserves special mention in this report. On April 30 2015 Tom Claude will retire from Pharmacists Mutual after 40 years of service. Tom has been the Corporate Secretary for 27 years and closes out his service as Senior Vice President of Underwriting and Product Development. His dedication and service has touched every area of the company and his daily presence and wise counsel will be missed by all who have had the pleasure of working with him. Tom will be departing just as Pharma- cists Mutual begins a significant technological leap. Over the past approximately eighteen months we have been working toward the March 2 2015 launch of our state-of-the-art policy administration system. This base system is designed to make us more efficient to help keep overhead costs in check. While cost is important this system is also the foundation for some major member service improvements. We will begin by implementing a new web based invoice presentment and payment system which will add American Express to the list of currently accepted payment options. Expect this enhancement in 2015. Eventually we plan to offer you the ability to view and store policy documents through a member portal to speed delivery to you. The new system and these enhancements would not have been possible without the dedication of my co-workers whose workload increased significantly during months of system testing. Our technology project did not slow down our operational progress as Pharmacists Mutual reached a significant milestone when we issued our first policy in Florida. We now operate in all 50 states and the District of Columbia and we are not finished yet. We have filed for our license to operate in Puerto Rico and with the cooperation of the commonwealths insurance department we will have members there by the end of 2015. Operational success was not limited to expansion. We continued to achieve high marks in our member satisfaction surveys and the companys financial strength grew. Over 87 of respondents rated our claims service and overall customer service as very good or excellent in 2014 and the average rating for both categories improved compared to the previous year. Financially we added 12 million in premium from new policies in 2014. 8 THE CEO MESSAGE This success helped to increase our written premium by 4.4 to 112.9 million. Net income totaled 6.8 million which is down slightly from 2013. The results allowed the board of directors to declare dividends totaling 1.1 million that will be returned to you our member policyholders rather than stockholders. Although our service scores are high we are always looking for ways to improve. We have launched a multiple-year initiative to increase the number of our claims professionals in the field to improve our service to you. We also introduced the Peace of Mind Peer Support Program a special optional service within our professional liability claims department. Although we are ready to defend you if you are faced with a lawsuit the experience can be a lonely one with many unknowns. The feelings of guilt anger frustration and helplessness are common in these situations. Fellow members who have faced similar events have volunteered to provide an empathetic ear and encouragement to other members. The program is completely optional confidential and discreet and you will not likely find one like it from a typical insurer. We continue to invest in our risk management department. In 2014 Kristen Jones PharmD became the most recent pharmacist to join our team to enhance our ability to serve you. We also increased the number of risk management newsletters we publish to help you avoid claims. Our ultimate goal is to provide quarterly updates to each of our specific member groups. While we have many experts on staff you likely have many ideas that can help your fellow members in true In a world that often seems full of broken promises many of them never intended to be kept the people behind our promise to you are working tirelessly to uphold our word. 9Pharmacists Mutual Annual Report mutual fashion. If so please send your idea by email to our Risk Management department at riskmgmtphmic.com. You do not need to write the resulting article but guest authors are welcome. My co-workers have been busy in other ways as well over the past year. Our professional liability program for dentists is now available in thirty states with more planned for 2015. Personal insurance products were introduced in Texas and Louisiana and we plan to add California later in 2015. Since its introduction our dental program has included coverage for allegations of sexual or physical abuse. As pharmacies are now often providing consultations in private settings we have made this optional coverage available to pharmacies. This important coverage will defend you against allegations of sexual or physical abuse subject to the coverage terms of the policy. Sexual and Physical Abuse coverage is just the latest option we have added to our menu of important insurance coverages. Others include Employment Practices Liability and Data Compromise protection. We promise to continue our work to understand the threats you face and introduce solutions to help you manage your risk. In a world that often seems full of broken promises many of them never intended to be kept the people behind our promise to you are working tirelessly to uphold our word. Whether you are faced with a fire a tornado or a lawsuit you can turn to us for help at any time on any day. We will be ready. Thank you for your trust in us. Edward Yorty President CEO 10 Pharmacists Mutual Annual Report Kirk Hayes Chair Board of Directors THE BOARD CHAIR MESSAGE 11Pharmacists Mutual Annual Report As Pharmacists Mutual reports favorable financial results and overall business operations in this 2014 Annual Report to our members I am reminded again of the uniqueness of our mutual company and its modest beginnings in the back room of a drug store in 1909. It was in that year a very small group of individuals saw a need and had a vision and made a promise to provide affordable insurance and fair claims treatment with exceptional customer service. A simple but profound idea a company managed in the interest of its members. Less than 100 businesses chose to become charter members and policyholders and signed up with the new company that first year. Tens of thousands of businesses and individuals insure with Pharmacists Mutual today. From providing only property insurance coverage in the early years today under the PMC banner Pharmacists Mutual Pharmacists Life and PMC Advantage provide all types of insurance coverage and programs claims services and risk management programs in the mission to help policyholders attain peace of mind. In setting the direction for the Company your Board of Directors takes very seriously the responsibility of being good stewards of resources for our member policyholders to whom we are ultimately responsible. Good corporate governance policies and procedures are a high Director priority and commitment as we seek continuous improvement while building an even more efficient and responsible organization and at the same time continuously monitor material risks to the Company. In being accountable for the Company as a whole and in delegating and empowering our PresidentCEO there are explicit expectations and results the organization is to produce. It is no secret. In all organizations it is the people the staff who make the difference. This is our most important resource and reason we are able to deliver the promise. On a personal note my first task as a young underwriter and new employee in 1963 was to develop and market a store package policy. It was not unusual at that time for a pharmacy owner to have three or four or in most cases many more policies insuring their business providing separate policies The commitment to be the best in what we do and to deliver on the Companys promise has never been stronger. 12 Pharmacists Mutual Annual Report for contents buildings burglary premises drug liability 1963 terminology glass and other coverage. Why not combine many of these insurable risks into one policy The Company wrote its first package policy in April 1963 providing the platform for significant growth and the rest is history. Over the years hundreds of language and coverage changes innovations and improvements have been made by employees committed to delivering the very best business insurance policy for our members. Pharmacists Mutual has highly responsible dedicated and engaged people who clearly have the skills to deliver on the Companys goals and objectives for your benefit. This success manifests from employees who are committed to the organization and an organization that supports and rewards the outstanding achievements of its employees a two-way commitment that makes good things happen One of the great joys of being a director is to see employees take advantage of educational opportunities to achieve advanced degrees and professional designations. We also are able to cheer the successes of those rewarded for meeting high production and professional service goals and applaud the individual and collective efforts of our exceptional staff the people behind the promise. Thank you for reading this years Annual Report and entrusting us to provide for your insurance needs. The commitment to be the best in what we do and to deliver on the Companys promise has never been stronger. As we strive to be the best provider and continue to grow in partnership we NEED YOU. Thank you for your ideas feedback referrals and responses to surveys. Please continue to give us your suggestions for improvements. Kirk Hayes Chair Board of Directors THE BOARD CHAIR MESSAGE 13Pharmacists Mutual Annual Report I have been a registered pharmacist for 46 years licensed in four states and supervised a significant number of pharmacists and pharmacy techs in 35 states. It has been my privilege to have had Pharmacists Mutual as my professional pharmacist insurer for most of those years. Your representatives have always been helpful and courteous. It has given me great comfort and satisfaction to have had Pharmacists Mutual standing ready to assist me if an occasion would occur. Ronald D. Kaufmann Retired R.Ph. PA THE BOARD OF DIRECTORS Jonathan C. Grether MSIM CPCU CIC Iowa Holly Whitcomb Henry R.Ph. Washington Donnie R. Calhoun R.Ph. Alabama Kirk M. Hayes CPCU Iowa 15 F. Michael James R.Ph. North Carolina Richard B. Moon R.Ph. PharmD New York Randall S. Myers R.Ph. Ohio Kelly S. Selby R.Ph. Texas Susan L. Sutter R.Ph. Wisconsin Steven T. Simenson R.Ph. Minnesota Edward J. Yorty MSFin FCAS FSA MAAA Iowa William A. Stuart R.Ph. California THE RICE AWARDS 17Pharmacists Mutual Annual Report The Pharmacists Mutual RICE Recognition program provides employees the ability and responsibility to recognize peers for their contributions and commitment to our corporate values Relationships Integrity Citizenship and Excellence. Each quarter we recognize several employees who have been nominated by their peers for exhibiting our values. The Relationships Award recognizes employees who foster a culture founded on respect trust and teamwork. This person displays kindness and patience to fellow employees and customers. They exhibit and promote positivity. The Integrity Award honors employees who foster a culture of honesty in everything they do. This person is committed to making Pharmacists Mutual Companies a better place through strong ethical conduct even in difficult situations. The Citizenship Award acknowledges employees who foster a culture of going above and beyond by supporting and volunteering in company and community events and organizations. These recipients motivate and encourage their co-workers with their words and actions. The Excellence Award is bestowed on employees who foster a culture of being committed to continuous improvement through creativity and hard work. This person demonstrates skills and knowledge that go above and beyond job expectations. 18 Pharmacists Mutual Annual Report 2014 RICE RECOGNITION Alison VanOtterloo Citizenship Relationships Allison Larson Excellence Bobbi Jahnke Relationships Cheryl Batt Excellence Darcie Dahlhauser Excellence Erynn Clark Relationships Howard Omdahl Citizenship Ivy Kitzinger Relationships Jane Cummings Excellence Janice Morey Excellence Jared Montag Integrity Jen Aultman Excellence Jill Moe Excellence Relationships 19Pharmacists Mutual Annual Report Joanne Eden Excellence Justin Davis Relationships Karleen Wittkopf Excellence Laci Mortensen Relationships LaDona Traver Excellence Laura Gabor Integrity Laurie Harms Relationships Linda Thilges Citizenship Relationships Lynne McKenna Citizenship Marcia Parrish Excellence Mindy Thilges Relationships Rhonda Ostwald Relationships Roxanne Vaske Relationships Sandra Laubenthal Excellence Sandy Ulrich Excellence Shayla Petersen Relationships Shelly Brown Excellence Sherri Luedtke Excellence Sheryl McMahon Excellence Stephanie Schmitt Excellence Sue Lallier Relationships Teri Hanselman Excellence Teri Miller Citizenship Terry Potter Excellence THE RICE SPOTLIGHTS Meet a few of the remarkable Pharmacists Mutual Companies employees who exemplify the meaning of our RICE Relationships Integrity Citizenship and Excellence values. These individuals were recognized and nominated by their peers for their selfless acts of service to you our members as well as to their co-workers and communities. They are a representation of our many people behind the promise. Browse their feature stories and join us in honoring and congratulating them. 21Pharmacists Mutual Annual Report RELATIONSHIPS Erynn Clark. Recognized by a Pharmacists Mutual Field Representative patience and dedication describe Commercial Underwriter Erynn Clarks attentiveness and perseverance assisting the Field Representative in gathering information and preparing proposals for a large six location pharmacy account. Jill Moe. Business Analyst Jill Moe managed several high profile corporate goal projects that required her to work with a variety of individuals with very diverse skill sets and knowledge. She efficiently managed the processes and ensured that everyone remained on task and met set deadlines. Bobbie Jahnke and Mindy Thilges. Claims Exam- iners Bobbie Jahnke and Mindy Thilges have earned the respect of their co-workers and our members who have incurred a claim. They provide care and concern when handling members claims and do so with the utmost integrity. Additionally they provide guidance and training to their fellow team members all the while with patience and encouragement. Erynn Clark Commercial Underwriter Jill Moe Business Analyst Bobbie Jahnke Claims Examiner Mindy Thilges Claims Examiner INTEGRITY Laura Gabor. Being honest and having high ethical standards are easy to say. Actually behaving in this manner when it can upset someone even though no one will know the rules are broken is very difficult. But that is exactly what Laura Gabor did when she complied with a corporate charitable giving policy but then questioned why it was structured as it was. Her tenacity and inquisition led to a revision and enhancement of the policy. Jared Montag. Jared discovered potentially sensitive employee information that was stored in an area viewable and accessible to other employees. He was very discreet in his discovery and he made sure the employee information was secured as quickly as possible. Thanks to Jareds prompt and discreet handling the information was quickly removed and the possible exposure avoided. Jared humbly did the right thing when no one would have known otherwise. Laura Gabor Sr. Management Accountant Jared Montag Commercial Underwriter 23Pharmacists Mutual Annual Report Integrity is standing up for what you believe in. It is treating everyone equally and fairly acting independent of others that do otherwise. It is being open and honest responsible for all of your actions. It is speaking out when others are treated poorly. It is refusing to participate in actions detrimental to others. It is admitting and apologizing for your errors when mistakes are made. It is respecting your environment your fellow humans and your self. Integrity is not a characteristic it is a way of life. It is what you do and what you say always. It sets you apart from others it defines you as a person. Treat others as you would want to be treated. Be upstanding be forthright be conscious of your actions. Remember to always act with integrity. Gary Dodd 2003 INTEGRITY BY GARY DODD THE RICE SPOTLIGHTS CITIZENSHIP Linda Thilges and Teri Miller. As representatives of Pharmacists Mutual Companies Linda Thilges and Teri Miller participated in the Algona Leadership Class a group of local citizens interested in learning more about their community and opportunities to give back with their time and talents. They brainstormed and organized a GLOrun event to raise money for the local walking trail. They developed a fundraising plan for the trail building efforts. The event was a huge success raising 30000 toward the advancement of the health and well-being of Algona residents. The GLOrun event was so successful it has now become an annual community event. Linda Thilges Commercial Underwriter Teri Miller Claims Examiner 25Pharmacists Mutual Annual Report EXCELLENCE LaDona Traver. Customer Account Representative LaDona Traver immediately recognized and rectified what could have been an unfortunate situation for a member. There was a potential lapse in policy coverage that would have left the member without coverage. LaDona was able to issue coverage and ensure our member continued peace of mind. Allison Larson. Diligent conscientious and going above and beyond are how her co-workers describe Allison Larson Claims Service Representative. Her voluntary commitment to provide countless hours of assistance to her co-workers while simultaneously handling her own claims workload epitomizes the essence of teamwork and excellence. Teri Hanselman. Claims Specialist Teri Hanselman was dually recognized by her peers for her involvement in the coordination testing and demonstrating of a new claims system as well as her persistency in persuading a business partner to reimburse Pharmacists Mutual the entire amount of a claim. Based on excellent documentation and claim file notes Teri was able to argue our case with the business partner. The partner reimbursed the entire amount of the claim over 25000. This did not happen overnight nor was it easy. Thank you Teri for being so diligent and persistent THE RICE SPOTLIGHTS LaDona Traver Customer Account Representative Allison Larson Claims Service Representative Teri Hanselman Claims Specialist 26 Pharmacists Mutuals most valued resource is our people. Our team of professionals is committed to continuous learning and excelling in our service to you. Each year we recognize and award outstanding performers from our field representatives and home office staff. Awards are granted based on a number of criteria including overall contributions to the company increased sales positive customer feedback and more. The award winners recognized here are model representatives who demonstrate our mission and values in their commitment to customer satisfaction. Join us in congratulating these top performers. THE PHARMACISTS MUTUAL AWARDS 27Pharmacists Mutual Annual Report THE EMPLOYEES OF THE YEAR Sheryl McMahon Commercial Underwriter Stephanie Schmitt Business Analyst 28 THE 2014 SALES AWARDS Pharmacists Mutual Territory Growth Leader Tim James Texas Pharmacists Mutual Sales Leader Ryan Goodrich Arizona and Nevada 29Pharmacists Mutual Annual Report Pharmacists Mutual Top Sales New Representative Mike Jarvis California Pharmacists Mutual Risk Management Excellence Matt Bourgeois Louisiana Commitment to Excellence Terry Potter Oklahoma Coverage Advisor Sales Leader Patty Elbert Pharmacists Life SalesCases Leader Jim Sajbel Jr. New Mexico Colorado Victor C. Garman MSM SCLA Sr. Vice President Claims Richard M. Berke PMP FLMI CMA Sr. Vice President Member Corporate Services Thomas E. Claude CIC Secretary and Sr. Vice President Underwriting Product Development Kevin C. Banwart CPA AIAF Treasurer and Chief Financial Officer THE EXECUTIVE TEAM 31 William H. Wiebelhaus Chief Information Officer Jonathan C. Grether MSIM CPCU CIC Chief Operating Officer Edward J. Yorty MSFin FCAS FSA MAAA President Chief Executive Officer Don R. McGuire Jr. R.Ph. J.D. General Counsel and Sr. Vice President Compliance Risk Management Shirley A. Pierson CISR AU Sr. Vice President Underwriting Steven M. Hoskins CLU Sr. Vice President Agency Operations Paul T. Luckman J.D. CPCU Sr. Vice President Sales Marketing Thomas P. Goodrich CPCU CIC Sr. Vice President Corporate Sales 32 Pharmacists Mutual Annual Report RECOGNITION OF TOM CLAUDE Very few people can say they have seen firsthand four decades of growth and changes in an organization. Tom Claude is one of the few. From beginning with Pharmacists Mutual then Druggists Mutual Insurance Company in March 1975 in the Accounting depart- ment to currently serving as Senior Vice President Underwriting Product Development Tom will conclude his 40-year career and retire on April 30 2015. Throughout his 40 year tenure Tom has been actively involved in the development and management of the commercial underwriting area. He was instrumental in the development of the Pharmacists Mutual businessowners policy program which replaced multi-peril policies and changed how the organization insured commercial operations. His knowledge experience and commitment earned him promotions 33Pharmacists Mutual Annual Report from Department Head to Assistant Vice President to Vice President to Regional Vice President and then to Senior Vice President his current title. In this role Tom coordinates and supervises the activities of both the corporate underwriting as well as the product development areas. Additionally he has served as Secretary of Pharmacists Mutual Insurance Company since 1987. Toms passion and dedication have earned him the honor of receiving the Pharmacists Mutual Extra Effort Award in 1982 the Employee of the Year Award in 1990 and a corporate ring with eight diamonds each representing five years of meritorious service. He has been professionally involved in the insurance industry serving as a past Board of Directors member of American Association of Insurance Services Inc. AAIS and a com- mittee member of Alliance now Property Casualty Insurers PCI. Tom is also a Certified Insurance Counselor CIC. Toms successful career path has been influenced by several significant mentors including Kirk Hayes Chair of the Board Dick Thoreson former Vice President Ed Berg Past Pres- ident and CEO and Edward Yorty current CEO President. Tom acknowledges Kirk Hayes for giving him the opportuni- ty to join the organization in 1975 and the other mentors for encouraging and allowing him to grow with the organization as it expanded from servicing a mere ten states to being a national company today. These mentors as well as all of the other great people he has worked with over the years are who Tom cherishes the most from his career. He has appreciated the friendships and the family atmosphere of the company. As he retires from his Pharmacists Mutual family Tom is looking forward to the opportunity to spend more time with his wife Karilyn and his children and grandchildren as well as golfing and traveling. Best wishes to you Tom Assets 2014 Cash Short-Term Investments 5724304 Bonds 168406582 Stocks 20729513 Subsidiaries 10074984 Real Estate 5756147 Other Investments 1936287 Premiums Receivable 33296741 Deferred Taxes 5922000 Other Resources 6969437 Total Assets 258815995 Financial Highlights as of December 31 2014 FINANCIAL HIGHLIGHTS 35Pharmacists Mutual Annual Report Liabilities Policyowners Surplus 2014 Estimate for Losses Adjusting 94730364 Unearned Premiums 50141996 Accrued Expenses Taxes 15060244 Dividends Payable 1120200 Total Liabilities 161052804 Policyowners Surplus 97763191 Total Liabilities Policyowners Surplus 258815995 Annual Comparison 2013 2014 Direct premiums written 108168375 112903235 Assets 247541204 258815995 Policyowners surplus 88614653 97763191 Income Statement Change in Surplus 2013 2014 Net premiums earned 83252836 86015552 Loss adjusting incurred 52127809 53050686 Underwriting expenses 26119728 28015162 Dividends to policyowners 1218374 1120235 Underwriting Income After Dividends 3786925 3829469 Investment Income 5143080 5100197 Realized capital gains losses 16250 300048 Other income expense 54220 101722 Federal income tax 1995936 2569611 Net Income Loss 6972039 6761825 Unrealized capital gains losses 1162278 1516264 Other changes to surplus 2265131 870449 Change in Surplus 10399448 9148538 THE FINANCIAL CHARTS 258815995 TOTAL ASSETS 2011 2012 2013 2014 247541204 228715948 210 M 220 M 230 M 240 M 250 M 211919002 37Pharmacists Mutual Annual Report POLICYOWNERS SURPLUS DIRECT WRITTEN PREMIUM 2014 112903235 2013 108168375 2012 101424556 2011 99733529 2011 2012 2013 2014 88614653 100 M 60 M 70 M 80 M 90 M 100 M 105 M 110 M 115 M 97763191 78215205 69983480 38 Pharmacists Mutual Annual Report TERRITORIES SERVED AL David Bell Chuck Neyland AK Anne Kelley AZ Ryan Goodrich AR Joe Baker CA ISU Vansa Mike Jarvis Larry Mai Lisa McGinty Van Beurden Insurance Services CO Tom Quesenbery Jim Sajbel Jr. CT Tom White DC Steven Barber DE David DeFelice FL Chuck Neyland Sarrah Sheppard Seth Swanson GA Hutton Madden Seth Swanson ID Kevin Dotseth IL Dan Blank Clark Thompson IN Brandon Allen Casey Delks IA Kim Dornbier Karla Krogman-Sauer KS Tim Riddle Milt Siegfried KY Tracy Curtis Bruce Lafferre LA Matt Bourgeois ME Kilbride Harris Insurance Services LLC Tom White MA Tom White MD Steven Barber MI Bill Given Jerry Larridaen II MN Tom Nilsson Lee Ann Sonnenschein Sheila Welle MS MACM Insurance Services Martin Ikle Chuck Neyland MO Scott Naeger MT Kevin Dotseth NE Melissa McKean NV Ryan Goodrich 39Pharmacists Mutual Annual Report NH Kilbride Harris Insurance Services LLC Tom White NJ Colonial Insurance Management NM Jim Sajbel Jr. NY Ed Costello Kevin Kollasch Cliff Lange NC Kenny Ripley ND Sheila Welle OH Bruce Wyke OK Terry Potter Milt Siegfried OR Kevin Dotseth Anne Kelley Larry Mai PA Ed Costello David DeFelice Cliff Lange RI Tom White SC To be announced SD Lee Ann Sonnenschein TN Jim Hall Martin Ikle TX Grant Guthrie Tim James Mark Knutson UT Kim Dornbier VT Tom White VA Stephen Peters WA Kevin Dotseth Anne Kelley WI Jerry Laridaen II WV Tina White WY Kevin Dotseth Independent agencies ISU Vansa is an independent agency Wayne Brownstein agent. Colonial Insurance Management Inc. Van Beurden is an independent agency for dental services Eric Van Beurden CEO. MACM Insurance Services is an independent agency for physician offices and clinics Shaw Singleton agent. Kilbride Harris Insurance Services LLC Joe Kilbride agent. 40 Pharmacists Mutual Annual Report RISK MANAGEMENT Risk Management Services 2014 saw an increase in staffing for the Pharmacists Mutual risk management team adding a PharmD consultant and entering into a consulting arrangement with another pharmacist. This added capability allows us to better assist pharmacy organizations in managing risk and to increase our ability to develop and deliver new services. The department continues to focus on solutions for challenges facing pharmacy home medical equipment home healthcare and dentistry with best practice guidelines RM Intel bulletins increased production of newsletters and new consulting initiatives. In 2015 we are providing an in-depth examination of crime a problem that continues to plague the pharmacy industry and an area where we have seen successes but still have more work to do. We are committed to seeking better and more effective ways to manage risk. Give us a call or email at riskmgmtphmic.com. Mike Warren Risk Manager Jen Aultman Risk Management Consultant Kristen Jones PharmD Pharmacy Risk Management Consultant Coverage Available Pharmacists Mutual Insurance Company and its subsidiaries The Pharmacists Life Insurance Company and PMC Advantage Insurance Services Inc. provide a comprehensive range of business professional personal and specialty insurance coverage including Auto Businessowners Commercial Auto Data Compromise Dentist Professional Liability Disability Employment Practices Liability Health Homeowners Life Insurance Long Term Care Professional Liability Sexual or Physical Abuse Liability Student Coverages Umbrella Excess Liability Workers Compensation 42 Pharmacists Mutual Annual Report 800.247.5930 www.phmic.com