Business Development & Marketing Division Overview Board Meeting March 16, 2000

Call Center Activities: Initial Nominations File List of 14,000 + names have been cleaned Currently making customer service calls to all Master Graduates. Working with CSR IIs to assist in after sale maintenance of clients. Making secondary calls to all new graduates 2-3 weeks after CSR II follow up has been done to insure that all nominations were contacted and to permission market for any additional nominations. Continuing to clean lists of names in database and to determine interest in additional training. Staff reduced by one person replacement to be hired in June/July

CSR II Staff Overview: Rob Leonidov - Rob continues to work alone and plays with the idea of hiring an assistant to help manage his book. Currently interviewing for same. February production was $51,527. March goal is $60,000 with $25,345 booked MTD. Craig Meade - Craig continues to be a $40,000 -$60,000 per month producer. Initial CSR III development training has been started with Renee`. February production was $42,481. March goal is $54,000 with $21,687 booked MTD. Heidi Knapp - Heidi is focused strictly on the youth program now and reassignment of 99% of her adult book is underway. Heidi continues to produce at, near or above her monthly goal. Given her training schedule and her dedication to the youth program, her accomplishments in the area of monthly production are a credit to her incredible work ethic. February production was $58,789. March goal is $32,000 with $11,555 booked MTD. Joe Rocco - Joe Rocco continues to deal with his MS limitations and still maintain an attitude second to none in terms of being positive. February found him challenged quite a bit and his production was below par for the first time in many, many months. Joe has been very helpful in the areas of training and coaching and loves to be involved in this. February production was $18,641. March goal is $54,000 with $10,257 booked MTD.

Judi OConnor - Judi continues to be her own worse enemy and lets her negativity take away from her productivity. Her attitude about life, the universe and everything is corrosive and detrimental to her production. She has been counseled and advised that her negative attitude needs to be left at home, and when it appears at work, she will be asked to leave. February production was $25,407. March goal is $50,000 with $10,363 booked MTD. Mark Jones - Jonesy has been creating success for himself since moving back to the office in January. He has a lot of rough edges that planned training and Rapport Seasoning will eliminate over time. February production was $26,261. March goal is $32,000 with $11,340 booked MTD. Mike Knodel - Mike continues to be a very good producer, attaining the top spot in February with $90,696 in production. This being said, he has some growing to do yet and once this comes about, he will be the better for it and his production will reflect his awakening. Mikes goal for March is $54,000, with $34,681 booked MTD. Coleman Lauderdale - Coleman has been struggling a bit of late and has been fighting internally with himself as to whether or not he can make the conversion to being a salesperson meeting the needs of clients, versus a salesman, pushing product. With planned training and guidance, I expect him to make the conversion successfully and he will be a valued member of our team in short order. February production was $19,150. March goal is $40,000 with $9947 booked MTD. Rich Coulter - Rich has completed his LB1 training and has been learning our business by assisting the team with after sales work while being trained by Joe, myself and other team members. His success will be certain and he received his first book of accounts yesterday. Watch outhes coming out of the chute! March goal is $20,000. Tom Harmon - Tom is the worlds best part timer! Tom continues to do a little bit more each month than the previous month. February production was $28,500. March goal is $22,000 with $13,162 booked MTD. In the years ahead, I want to come across 10-15 more Tom Harmons! Dee Basile - Dee continues to due her best to be successful in spite of the odds being against her in most respects. Production is sporadic at best and nothing can be counted on in terms of planning. April 1st I plan to terminate the contract with Rapport Aurora. The clients in that area will be better served from Las Vegas, by a member of the team that has the advantage of the Team/Family atmosphere we have created here.

Expansion: We are very excited to be planning our expansion to the office space immediately to the east of our existing suite. Although this is not the ideal space for us, while we wait for the final negotiations to be completed on the 2700 sq. ft. occupied by American Benefit Plan, the 1200 sq. ft. we are going to acquire from Time Plus is a Godsend! The new addition to our existing space allows for the addition of up to six (6) additional sales persons and will give all existing staff additional space to spread a little bit. Moving the Call Center staff in with the rest of the Team gives us 300 sq. ft. to give to Reggie for Merchandising and Logistics, space he desperately needs. Allin-all, the additional space is very welcome and comes to us at exactly the time we need itsynchronic Plan vs- Progress: At the completion of the first 2 months of 2000, we are ahead of budget in all aspects, all impact being considered. Team strength has been fortified by open communication within the team and quality additions to the team. We have a great deal of work to do ahead of us, and without question, we will meet and exceed our own highest expectations. We will provide for each other and our clients utilizing the core values, mission and vision of RLI as our guidelines. Additional staff being brought on in the next 90-120 days will bring our team to 14 Salespersons, 2-3 Call Center/Support Staff, 1 Executive Assistant, and 1 Sales Assistant.