Item 1.01. Entry into a Material Definitive Agreement

Alliance United Insurance Company ("Alliance"), a wholly-owned subsidiary of the registrant, Kemper Corporation ("Registrant"), entered into an Advances and Security Agreement ("Advances Agreement") and related documents with the Federal Home Loan Bank of San Francisco ("FHLB"). The Advances Agreement was executed by the FHLB on August 14, 2020 in connection with its approval of Alliance's FHLB membership application. The Advances Agreement, attached as Exhibit 10.1 to this report, provides the general terms and conditions for obtaining, maintaining and repaying loans and other extensions of credit under the agreement.

Under the Advances Agreement, Alliance may from time to time apply to obtain loans and other extensions of credit ("Advances") from the FHLB. The specific terms of such Advances, including the amount, rate of interest, repayment and prepayment terms, will be specified in a written or electronic confirmation. Advances require pledging and maintaining sufficient collateral, including an amount of Alliance's capital stock investment in the FHLB, per the FHLB's credit and collateral requirements. The amount of Advances that Alliance may obtain is limited to a specified percentage of Alliance's net admitted assets.

The Advances Agreement also contains provisions generally included in agreements of its nature, including terms regarding the delivery, maintenance and release of collateral and related security interests, requirements as to any collateral, events of default, remedies available in the event of a default by Alliance and representations and warranties concerning Alliance and the collateral.

Item 2.03. Creation of a Direct Financial Obligation or an Obligation under an


           Off-Balance Sheet Arrangement of a Registrant

The information contained above under "Item 1.01, Entry into a Material Definitive Agreement" is hereby incorporated by reference. Section 9 - Financial Statements and Exhibits Item 9.01. Financial Statements and Exhibits




(d) Exhibits
Exhibit Number Exhibit Description
  10.1           Advances and Security Agreement
104            Cover Page Interactive Data File (the cover page XBRL tags are
               embedded within the Inline XBRL document).

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