Lonestar managing general Agency, inc. Maverick Private passenger Auto. underwriting guide

Transcription

1 Lnestar managing general Agency, inc. Maverick Private passenger Aut underwriting guide Underwritten by: Old American cunty mutual Fire Insurance cmpany Effective date: New Business March 17, 2014 Renewals April 17, 2014

2 Imprtant Infrmatin: Addresses and Telephne Numbers Telephne Numbers Claims New Lsses FAX Custmer Service Phne Fax Addresses Claims/Underwriting/Marketing Payments Lnestar MGA 1130 East Arapah Rad Suite 435 Richardsn, TX Lnestar MGA 1130 East Arapah Rad Suite 435 Richardsn, TX Lnestar MGA Maverick Underwriting Guide 2 Effective:

3 Sectin 1: General Infrmatin 1.1 Plicy Term: All Plicy Terms are Semi-Annual (6-mnths), Quarterly (3-mnths) r Mnthly. Lnestar MGA will NOT ACCEPT premium fr greater then 6 mnths. Quarterly and Mnthly plicies MUST BE PAID-IN-FULL. N financing plans are available fr these terms. 1.2 Binding and Cverage Effective Dates: Applicatins fr cverage must be cnsistent with the written prgram guidelines and the prducer agreement, cmpleted in their entirety, and signed by bth the applicant and the prducer. All business will be prduced utilizing the Lnestar MGA pint f sale applicatin prcess. Plicy issuance is autmatic. The applicatin, ID cards, receipt, named driver exclusins (515a), fax cver page, inspectin frm and plicy declaratin page are all prduced at the pint f sale. The plicy effective date and time is cntrlled by the PTS sftware system and reflects when payment was made by the custmer. All applicatins must be faxed t the underwriting fax number f The fax cver page will list all dcuments that shuld be included with yur fax. All Undisclsed driver infrmatin reprts are btained and prduced thru the Lnestar MGA system. There will be multiple excluded drivers per exclusin and the named insured must sign each exclusin frm. Nt at-fault accident verificatin must be submitted with the riginal applicatin fr credit t apply. If nt available when the riginal applicatin is taken, calculate the rate with the accident and cllect initial premium based upn that rate. Nt at-fault accident reprts may be prvided within 30 days fr credit t apply at the inceptin date. 1.3 Named Insured - Wh Can Be a Named Insured: ONLY thse listed belw can be listed as the named insured: An individual A husband and wife prvided they are bth residents f the same husehld. A parent and child prvided that the vehicle is titled in the child s name and the parent and child are bth resident f the same husehld. Tw unrelated individuals, regardless f their relatinship r whse name is listed n the title can NOT be listed n the plicy as the named insured. Tw related individuals, wh d nt meet the requirements listed abve can NOT be listed n the plicy as the named insured. If the named insured is under 18 years f age, the applicatin must be signed by bth the named insured and a parent r guardian. 1.4 Plicy Fee: The plicy fee applies t all plicies. This fee is fully earned at inceptin, but will be split amng the dwn payment and 5 mnthly installments fr semi annual plicy terms. This fee applies t all New Business plicies and succeeding renewals. 1.5 Theft Preventin Fee: A fee must be paid t the Autmtive Theft Preventin Fund, this fee is fully earned. Lnestar MGA Maverick Underwriting Guide 3 Effective:

4 1.6 Payment Optins: Submit ttal dwn payment, including apprpriate percentage f the plicy fee and 100% f all ther applicable fees. Premium financed plicies are nt ffered. Plicy Term Dwn payment % # f payments 1 st bill due Subsequent bills Mnthly 100% N/A N/A N/A Quarterly 100% N/A N/A N/A Semi-Annual 17% Semi-Annual 100% N/A N/A N/A 1.7 Billing Service Charge Schedule: All Installment invices fr semi-annual plicy terms will include an Installment Charge. 1.8 Renewal Prcedures: Renewal plicies will be mailed directly t insured. First installment will be due 10 days prir t the renewal date fr all semi-annual plicy terms. Mnthly plicy renewals will be due n the expiratin date. Failure t pay by the expiratin date may result in a lapse in cverage and be subject t ur re-instatement prcedures. MAKE CHECKS PAYABLE TO LONESTAR MGA A $25.00 FEE WILL BE CHARGED FOR ANY INSURED S CHECK RETURNED NSF. RECEIPT OF PREMIUM BY THE PRODUCER DOES NOT CONSTITUTE RECEIPT BY THE COMPANY 1.9 Late Fee: A Late Fee will be charged if payment is made after the due date Reinstatement Guidelines: Plicies may be reinstated with a lapse in cverage fr up t 30 days after cancellatin if cancelled fr nn-payment f premium Endrsements - Endrsement Prcessing Guidelines: ENDORSEMENTS MUST BE PROCESSED THROUGH PTS Plicy changes requests shuld be prcessed thru Lnestar MGA Plicy Tracking System (PTS) when pssible. Inspectin frms and phts are required n any cverage ther than Liability, PIP, and Med Pay. E & O Carriers recmmend agents btain a signed request fr any plicy change. It is nt necessary t mail a cpy f the signed request t Lnestar MGA, just scan t the system. We will require: Cnfirmatin that Inspectin Frm and Phts have been cmpleted if applicable Plicies must be in frce (expiratin date in the future) fr Lnestar MGA Insurance t prcess the endrsement. PTS will prvide yu with: A printed cnfirmatin that shuld be scanned t the system. Amunt f dwn payment required, which shuld be cllected frm the insured at the time f endrsement. New Installment Amunt fr Semi-Annual plicies. A new Declaratin page and ID Card will be printed fr the Insured. Lnestar MGA Maverick Underwriting Guide 4 Effective:

5 Endrsement effective date will be 12:01 a.m. the date fllwing receipt by Lnestar MGA Insurance. Hwever, where applicable the cmpany will cnsider any prperly dcumented lss as a cvered lss if it ccurs between the date and time the endrsement is prcessed in the PTS and 12:01 a.m. the fllwing date. Lnestar MGA Insurance will require a signed request fr the fllwing types f changes: Deletin f UM/UIM r PIP (signed rejectin required) Exclude driver (signed 515A Exclusin Endrsement required) Insured Request Cancellatin Any reductin r remval f cverage, vehicle r driver Any endrsement adding premium NOTE: Dwn Payment required n all additinal premium endrsements. ENDORSEMENT REQUESTS NOT PROCESSED THROUGH PTS (Extreme and Unusual Circumstances) Circumstances when yu cannt prcess endrsements thrugh PTS are extremely rare and unusual. If, hwever, yu are unable t prcess the endrsement request thru the PTS, fax the request immediately t Lnestar, using a Lnestar MGA Aut Insurance Endrsement Request Frm. Include the plicy number and signatures f bth the agent and the insured. Mail the riginal including any dwn payment, inspectin frm and phts required. NOTE: Dwn Payment required n all additinal premium endrsements. Endrsements adding Cverage New phts/inspectins will be required if any f the fllwing cverage s are added t an existing vehicle regardless f if phts/inspectins were previusly prvided fr the vehicle r nt: OTC/Cll Cverage Vehicle deleted in their entirety and then added back with cverage ther than BI/PD Only. Special Equipment We d nt require new phts/inspectins fr endrsements changing the fllwing cverages: Add rental reimbursement r twing and labr cverage s Decrease the deductible t OTC/Cll Driver class changes: Only allwable at renewal, unless adding/changing/remving drivers frm the existing plicy. Vehicle Changes: All replacement and additinal vehicles require cmpany ntificatin within 30 days f acquisitin. ENDORSEMENT DOWN PAYMENT REQUIREMENTS: NOTE: Dwn Payment required n all additinal premium endrsements. Semi-Annual - Cllect a minimum f 20% f the difference between the 6-mnth premium befre the change and the new 6-mnth premium. Use the fllwing example t determine amunt f dwn payment required. Any installment due shuld als be cllected at this time. If the insured pays the dwn payment fr the endrsement, yet fails t pay the current installment that has been billed, the plicy may remain canceled fr nn-payment. Semi-Annual Example: Plicy current ttal premium is $550.00, add vehicle during the 3rd mnth f the plicy term. Rating the new vehicle alne yu get a 6-mnth premium f $ % f $ = $ dwn. The pr-rata additinal premium will be $ but the $ dwn payment is required t cver ne mnth additinal premium and ensure that yur insured receives a bill with enugh ntice t make payment befre the plicy cancels. If yu are unsure hw t cmpute the additinal dwn payment, yu may cllect a flat $50.00 when adding a vehicle fr liability nly and $ when adding a vehicle if physical damage is included. Quarterly & Mnthly 100% f the premium increase must be cllected at the time the endrsement is prcessed. Lnestar MGA Maverick Underwriting Guide 5 Effective:

6 Return premium endrsements require n dwn payment. The credit will be applied reducing ne r all f the future installments. If the endrsement is nt being phned in, advise the insured t make any payments as billed. Pending return premium endrsements d nt take the place f any installment amunt billed fr NSF Check Plicy: If an insured s check is returned by the bank r ther financial institutin fr payment the plicy will return t its prepayment status and a NSF Fee will be applied t the plicy Severe Weather Restrictins: All binding authrity is suspended in areas where the Natinal Weather Service has issued a hurricane, fld, trpical strm, and/r trnad watch r warning and is within ne hundred (100) miles f the lcatin f the prpsed risk there may be n increased expsure. N new plicy r cverage may be bund. N endrsement f existing plicies may be requested which will have the effect f increasing the MGA s expsure. Renewals f the MGA s expiring plicies may be written in the nrmal manner prviding there is n increase in expsure t the MGA. Applicatins with an effective date/pstmark cmbinatin, which wuld vilate the prhibitins listed abve, will be rejected and n cverage will exist. New Business and Endrsement acceptance prcedures will resume frtyeight (48) hurs after the watch r warning has been lifted by the Natinal Weather Service. Each aut must be inspected by the agent t determine pre-existing damage SR-22 Filings: SR-22-FILINGS-FINANCIAL RESPONSIBILITY FILING - Endrsement #571 A SERVICE FEE FOR PROCESSING WILL BE CHARGED TO THE POLICY WITH AN SR-22 FILING, THAT IS FULLY EARNED. This charge will cntinue n each succeeding renewal until the filing is n lnger required. *SR-22 filings will be made fr the Named Insured and spuse nly. Other included drivers requiring an SR-22 must btain their wn insurance plicy. A Nn-Owner plicy may be written fr a driver requiring an SR-22 filing wh des nt wn a vehicle. The reasn the SR-22 is required must be included in rder fr us t make the filing. The reasn can be fund n the Suspensin Letter frm the Texas Department f Public Safety. Yu may attach a cpy f the suspensin letter. An SR-22 filing will nt be made unless the reasn is included. If the SR-22 is nt filed fr any reasn, the filing fee will be refunded. SR-22a - Effective 1/1/98 an SR-22a may be required by the DPS in cases invlving a judgment against a driver as a result f an at-fault accident and will nt be dne. * There may be a $ reinstatement fee required by DPS in additin t Lnestar MGA s fee. The state s fee shuld NOT be sent t Lnestar MGA, but frwarded n t The Texas Department f Public Safety alng with the driver s license number. If the state-filing fee is included with payment t Lnestar MGA, it will be applied tward the insured s balance and the agent will have t cllect an additinal $ Filing Fee fr the DPS. When required, the State s filing fee shuld be sent with reference t the driver s name and driver s license number t the fllwing address: Texas Department f Public Safety: Safety Respnsibility Bureau 5805 N. Lamar Austin, TX Phne: (512) Lnestar MGA Maverick Underwriting Guide 6 Effective:

7 1.15 Cancellatins: All cancellatins will be cmputed n a pr-rata basis. Plicies cancelled fr underwriting reasns during the first 60 days f the plicy perid may be cnsidered fr reinstatement upn receipt f required infrmatin prir t the final cancellatin date and if there is n premium due at the time f reinstatement. Plicies may be cancelled fr nn-payment f premium at any time during the plicy perid prvided that the MGA give 10 days written ntice prir t the cancellatin date. Plicies cancelled at the insured s request must be made in writing t Lnestar Managing General Agency, Inc. and include the insured s signature r the insured may return their plicy t the MGA. The cancellatin date will be n earlier than 12:01 a.m. f the day fllwing the date the request was faxed r mailed, as evidenced by the U.S. Pstal Service pstmark. In case f the insured's death, either the spuse r pwer f attrney may request cancellatin. A cpy f the death certificate must accmpany the request Retentin f risk: Lnestar MGA may use MVRs, CLUE, A-Plus, Husehld Driver and DMV (title) reprts t determine if any risk is prperly rated. Rates may be adjusted, driver exclusins requested, r plicy cancelled, as needed, based upn infrmatin received via these reprts. THIS MANUAL MAY NOT ADDRESS EVERY ASPECT THAT MIGHT AFFECT THE ACCEPTANCE OF A PARTICULAR VEHICLE OR DRIVER. FOR THIS REASON THE MGA MUST REMAIN THE FINAL AUTHORITY IN THE ACCEPTANCE OR CONTINUATION OF ANY RISK Endrsements t the Texas Standard Persnal Aut Plicy The Fllwing Endrsements shall apply all plicies written in the Lnestar MGA Maverick Prgram. All endrsements must be explained t all custmers and acknwledged n the applicatin. OACM.PhysDam.001 The Cmpany will pay the cst t restre yur cvered aut t its pre-lss cnditin. The amunt we pay may be based upn the cst f the aftermarket r recycled use parts, at the Cmpany's ptin. If yu chse a mre expensive part, yu may be respnsible fr the difference in cst. There is n cverage under Part D Cverage fr Damage t Yur Aut, fr any equipment n r in yur cvered aut that was nt installed at the factry unless cverage is shwn fr the equipment in the Declaratins Page. If repair r replacement f yur cvered aut r part f yur cvered aut results in betterment f the vehicle r the part, yu will be required t pay the difference in rder t get yur aut repaired r replaced. OACM.YCA.002a If yu purchase a new aut during the plicy term, the fllwing applies: The aut must be intended fr use primarily n public rads and have n mre r less than fur wheels. The aut s grss vehicle weight must be 25,000 punds r less. If the aut yu purchase is in additin t an aut already shwn in the Declaratins Page, it will have the bradest cverage f any aut shwn. Yu must ntify us n r befre the 20 th day yu becme the wner f the vehicle fr cverage t apply. If there is n ther aut shwn in the Declaratins Page with Part D Cverage fr Damage t Yur Aut, but yu desire this cverage, yu must ntify us within 20 (twenty) days after yur acquisitin f the aut fr cverage t apply. If the vehicle yu purchase is a replacement fr an aut already shwn in the Declaratins page and yu wish t cntinue Part D Cverage fr Damage t Yur Aut, it will have the same cverage, including the deductible, as the aut it replaces. The applicable deductible will be either the amunt shwn in the Delcaratins r $1,000.00, Lnestar MGA Maverick Underwriting Guide 7 Effective:

8 OACM.AuthDriv.003a OACM.Strage.004 OACM.DelFee.005 whichever is less. Yu must ntify us n r befre the 20 th day yu becme the wner f the vehicle fr cverage t apply. Any additinal cverage that yu need fr yur new aut that was nt cvered n the aut it replaced will nly be added when yu ask us t prvide the cverage, Cverage fr Part D Cverage fr Damage t Yur Aut is nly prvided if yur cvered aut is being perated r therwise cntrlled by yu r anther persn listed n the Declaratins Page. N cverage is affrded if yu lan yur car t smene else r if yu fail t tell us abut peple wh have access t and perate the vehicle. Yu must ntify us f any and all drivers fr cverage t exist under Part D Cverage fr Damage t Yur Aut. WARNING: A NAMED DRIVER POLICY DOES NOT PROVIDE COVERAGE FOR INDIVIDUALS RESIDING IN THE INSURED S HOUSEHOLD THAT ARE NOT NAMED ON THE POLICY. In the event that yur cvered aut requires strage fllwing an accident, yu must authrize us t have it mved t a facility f ur chice at ur expense. The plicy n lnger prvides cverage fr liability r physical damage if yur cvered aut r any aut perated by an insured is being used t carry, transprt r deliver peple, prperty r gds fr a fee. This includes, amng ther things, delivering fd, newspapers r flwers. If yu engage in the activity f carrying, transprting r delivering items r peple in exchange fr cmpensatin, yu must disclse this n yur applicatin fr insurance. OACM CntLiab.006 There is n cverage under Part A Liability Cverage where liability fr the lss is imputed r assumed slely because yu signed a cntract that references yur autmbile liability plicy. If yu rent an aut, yu shuld ntify the rental cmpany f this change t yur plicy, as there may be ptinal cverage that yu can purchase frm such cmpany. OACM.AutTerm.007 If smene ther than yu r a family member becmes the wner f the aut, then cverage fr that aut will autmatically terminate at the time pssessin, title r right f cntrl is passed n t the new wner. OACM.CrimeIntent.008 There is n cverage under any prtin f this plicy fr damages r injuries that result r may reasnably be expected t result frm the intentinal r criminal acts f yu, a family member r anyne perating yur aut with yur cnsent. There is als n cverage under this plicy fr damages r injuries that result while yu, a family member r anyne perating yur aut with yur cnsent is attempting t evade arrest f a law enfrcement fficial. OACM. MisrepFraud.009 Initial: YOUR FAILURE TO MAKE TRUTHFUL DISCLOSURES ON YOUR APPLICATION FOR INSURANCE AND AT OTHER TIMES DURING THE COURSE OF YOUR POLICY PERIOD MAY RESULT IN THE VOIDING OF YOUR POLICY. We may vid this plicy and prvide n cverage under any prtin f this plicy fr any claim that wuld therwise be cvered in the absence f yur fraudulent cnduct, misrepresentatins, misstatements r missins f imprtant infrmatin, including thse made when applying fr cverage. If yu engaged in these activities and we still made a payment under yur plicy, we have the right t recver frm yu the amunt f the payment we made. OACM.CP.013c Liability cverage is nly prvided fr yu, yur family members, and ther residents f yur husehld wh are listed n the Declaratins Page r ther peple using yur cvered aut with yur express r Lnestar MGA Maverick Underwriting Guide 8 Effective:

9 implied permissin. N cverage is affrded unless a cvered persn is perating the vehicle. Cverage under Part A Liability Cverage will nt be prvided if an unlisted family member r resident f yur husehld is perating the aut. WARNING: A NAMED DRIVER POLICY DOES NOT PROVIDE COVERAGE FOR INDIVIDUALS RESIDING IN THE INSURED S HOUSEHOLD THAT ARE NOT NAMED ON THE POLICY. OACM.OutOfState.016a OACM.Punitive.018 If yu are invlved in an accident in a state r prvince that has cmpulsry insurance laws fr nnresidents, we will hnr that prvince r state s requirements as t the liability cverage. Hwever, we will nt autmatically prvide first party cverage r increased limits fr first party cverage in states that have n-fault r similar insurance laws. Exemplary damages means any damages awarded as a penalty r by way f punishment but nt fr cmpensatry damages. Exemplary damages are neither ecnmic nr nnecnmic damages. Exemplary damages include punitive damages. This plicy will nt prvide cverage fr yu in the event that yu r an uninsured/underinsured mtrist becmes liable fr exemplary r punitive damages. OACM.RentPrp-NOAut.019 There is n cverage under Part A (Liability) r Part D (Cverage fr Damage t Yur Aut) fr damage t prperty fr which yu r any cvered persn may rent, use r have care, custdy r cntrl. If yu are invlved in an accident while using a brrwed r rented autmbile, this plicy will nt cver yur liability fr the damage t the brrwed r rented autmbile. This is a significant change t the previus standard cverage in Texas fr cverage t prperty being used by, rented t and/r in the care f a cvered persn. If yu rent an aut, yu shuld ntify the rental cmpany f this change t yur plicy, as there may be ptinal cverage (smetimes referred t as waivers) that yu can purchase frm such cmpany. OACM.NBusiness.020 IF YOU ENGAGE IN ANY BUSINESS USE OF YOUR COVERED AUTO, THERE WILL BE NO COVERAGE, BOTH UNDER PART A - LIABILITY COVERAGE & PART D COVERAGE FOR DAMAGE TO YOUR AUTO Business use includes but is nt limited t transprting persns, equipment r tls f the trade t r frm a jb site r using a vehicle while engaged in any business r ccupatin, including but nt limited t: cnstructin, curier r delivery services, landscaping, painting, carpentry, masnry, fd services, janitrial services, r any ther trade-type service. Sectin 2: Claims Please encurage yur insured t reprt their claims by calling the belw numbers. Reprting directly nt nly helps speed up the claims handling prcess but infrmatin is mre accurate when cmmunicated directly by the insured, claimant, r attrney. This number is n the I.D. card, n accrd lss ntice is required. Dallas Phne (214) Fax (877) Tll Free (877) Lnestar MGA Maverick Underwriting Guide 9 Effective:

10 Sectin 3: Cverages 3.1 LIABILITY: Limits: Bdily Injury $30,000/$60,000 Prperty Damage $25,000 INSPECTION AND PHOTOGRAPHS REQUIRED FOR ALL COVERAGE EXCEPTION: LIABILITY, PIP AND MED PAY. 3.2 COLLISION AND OTHER THAN COLLISION: 1. Use standard industry symbls fr all vehicles. Cntact the Underwriting Department fr vehicles nt assigned a symbl. 2. Cmpleted vehicle inspectin frm and phts must accmpany the applicatin. 3. Must be written tgether. 4. NO Cllisin and OTC Cverage may be written withut Liability. 5. Permissible deductible cmbinatins listed belw: OTC $250 $500 $1000 COLLISION $250 $500 $ PERSONAL INJURY PROTECTION: Limit: $2,500 Cverage per persn Persnal Injury Prtectin will be written n all auts cvered fr liability unless rejected in writing by the named insured. If elected, PIP must be included n all cvered auts. 3.4 MEDICAL PAYMENTS: Limit: $500 Cverage per persn Medical Payments cverage may nly be written n vehicles cvered fr liability, and nly if PIP has been rejected. 3.5 UNINSURED/UNDERINSURED MOTORISTS: UM/UIM will be written n all auts cvered fr liability unless rejected in writing by the insured. If elected, UM/UIM must be included n all vehicles n the plicy. Vehicle inspectin frm and phts required n all vehicles with Uninsured/Underinsured Mtrist Prperty Damage cverage. Limits fr UM/UIM are identical t primary liability limits. Limits: Bdily Injury $30,000/$60,000 Prperty Damage $25, RENTAL REIMBURSEMENT: Endrsement #523c ($20 per day, $600 maximum). Rental Reimbursement nly written n vehicles cvered fr Cllisin and Other than Cllisin cverage. 3.7 TOWING AND LABOR: Endrsement #524a ($40.00 per disablement, maximum $120 fr 6 mnth plicy) 3.8 ADDITIONAL EQUIPMENT Inspectin frm required - t affrd cverage fr any mdificatins t the vehicle, r any equipment, which is nt standard n the make and mdel vehicle scheduled, it must be described n the inspectin reprt and premium paid fr the cverage. (Replacement f factry-installed equipment with a higher valued item must als be Lnestar MGA Maverick Underwriting Guide 10 Effective:

11 scheduled). Additinal Equipment nly written n vehicles cvered fr Cllisin and Other than Cllisin cverage, and with the prper premium charge. Equipment includes any custm equipment, nn-factry installed, which mdifies the vehicle's appearance r perfrmance, including but nt limited t: Radi, Glass r chrme, Chrme, ally r mag wheels, T-Tps/Campers r tppers, Custm bdywrk, Custm paint, Custm/wide tread tires Custm engine wrk/parts, Custm interir wrk (carpeting, seat cvers, paneling, furniture, appliances, including van cnversins). Minimum premium fr special equipment is $ Maximum ttal value eligible fr cverage $3, MEXICO COVERAGE: Endrsement 551 (limited) is nt ffered. Endrsement 550a Brad Frm is available fr an additinal premium per vehicle. This cverage is fr infrequent trips t Mexic n mre than 25 miles frm the barder. Cverage Limits Liability Bdily Injury 30,000/60,000 Prperty Damage 25,000 Cllisin and Other Than Cllisin Deductibles $250, $500, $1000 Persnal Injury Prtectin $2,500 per persn Medical Payments $500 per persn (Only available if PIP has been rejected.) Uninsured Mtrist Bdily Injury 30,000/60,000 Prperty Damage 25,000 Rental Reimbursement $20 per day / $600 Maximum Cllisin and OTC required fr Rental Reimbursement Cverage. Twing and Labr $40 per disablement, $120 Maximum per 6 mnth plicy term Additinal Equipment Maximum Cverage $3000 Cllisin and OTC required fr additinal equipment cverage. Mexic Cverage 550a Brad Frm Sectin 4: Underwriting Rules 4.1 Eligibility: Private passenger autmbiles; Utility vehicles (including pickup trucks, vans and SUVs) nt exceeding 1 tn lad capacity, nt exceeding 10,000 lbs. in Grss Vehicle Weight (GVW) and wned r leased by an individual. 4.2 Freign Drivers License - N US Drivers License - Acceptability Rules Drivers withut a valid US Drivers License are UNACCEPTABLE UNLESS they: 1. Are Active U.S. Military; r 2. Are a citizen f a cuntry ther than the United States f America; and 3. Prvide prf f acceptability as described in ACCEPTABLE PROOF. Unacceptable Drivers License status includes, but is nt limited t: 1. Revked 2. Suspended (Unless Lnestar is filing an SR22 that will reinstate the license) 3. Expired 4. N current license including thse listed abve. 5. Never licensed ACCEPTABLE PROOF - is defined n the next page Lnestar MGA Maverick Underwriting Guide 11 Effective:

12 ACCEPTABLE PROOF Any Driver, meeting the qualificatins abve, Withut a Valid US Drivers' License must prvide ne f the fllwing: 1. US Dcumentatin: a. A valid military I.D. and the expired Drivers License. b. An 'Expired' Texas Drivers' License with n pints, accidents, r ther vilatins, and the driver can n lnger renew their Drivers' License due t n Scial Security Number. c. Suspended r Revked Licenses are NOT acceptable. 2. Freign Dcumentatin: a. Drivers License i. Freign r internatinal Drivers' License, ii. An 'Expired' Texas Drivers' License with n pints, accidents, r ther vilatins, and the driver can n lnger renew their Drivers' License due t n Scial Security Number. Suspended r Revked Licenses are NOT acceptable. b. Other Frms Of Identificatin i. Matricula, ii. Nn-US Pht Vter Registratin Card frm Nrth, Central, r Suth America, iii. Passprt frm Nrth, Central, r Suth America. Similar frms f I.D. frm ther cuntries will NOT be accepted. 4.3 Unacceptable Risks: Unacceptable Operatr Prfile 1. Any driver withut a current valid Drivers License wh des nt meet the requirements listed under N US Drivers License - Freign Drivers License - Acceptability Rules. A revked, suspended r expired Drivers License is NOT a valid Drivers License. 2. Drivers with mre than 16 pints f surcharge in the past three years. 3. Drivers under the age f 21 with mre than 8 pints f surcharge in the past three years. 4. Any driver with three r mre accidents during the past three years regardless f fault. 5. Drivers with mre than ne accident in the past 12 mnths. 6. Drivers with mre then 2 DUI/DWI cnvictins in the past 5 years. 7. Drivers with ne DUI/DWI cnvictin assciated with an at fault accident. 8. Any driver using the vehicle fr delivery in the curse f emplyment, such as curier services, pizza delivery, etc. 9. Entertainers r celebrities. 10. Applicants wh live in Mexic. 11. Transient wrkers wh d nt live and wrk in ne area in Texas. 12. Persns engaged in illegal activities, including drug related. 13. Mentally impaired drivers, if the disability affects the ability t perate a mtr vehicle. 14. Physically impaired drivers, if the disability affects the ability t perate a mtr vehicle. If the car is equipped t ffset impairment the special equipment required must be described. 15. Drivers ver age 80 fr new business. 16. Drivers with adverse prir claims histry. 17. Military Persnnel with a ranking f E3 r belw. 18. Temprary residents. Unacceptable Vehicle Prfile 1. Any vehicle ver 30 years ld, antiques, bslete mdels, rare and gray market vehicles. 2. Vehicles garaged utside Texas, including vehicles used by students attending schl utside Texas. 3. Any risk where the number f vehicles is exceeds the number f rated drivers by mre than ne. (Example: A plicy with 2 drivers may have n mre then 3 vehicles). 4. Vehicles used in speed cntest r racing, altered r "Ht Rd" vehicles. 5. Plice r emergency vehicles. 6. Vehicles used fr deliveries, fr example: Curier services, pizza delivery, etc. 7. Vehicles used fr public livery, fr example: Taxis, Limusines, etc. 8. Suzuki Samurai, Dune Buggies, r similar ff-rad vehicles. 9. Jeep CJ5 r CJ7 mdels prir t Vehicles wned r leased by a crpratin r partnership engaged in the practice f medicine r law, r engaged in prviding prfessinal architecture r engineering services. Lnestar MGA Maverick Underwriting Guide 12 Effective:

13 11. Vehicles used in the business f a trucker. 12. Vehicles used in business except Artisan Use as described under Business Use. 13. Vehicles wned r leased by a crpratin r partnership. 14. Vehicles nt titled t r nt in the prcess f being titled t the named insured (r spuse) 15. Any vehicle that has a TV screen r cmputer mnitr visible t the driver. (This des nt include navigatin systems that cme as standard equipment frm the factry n certain cars.) 16. Vehicles nt leased r wned by (titled t) the named insured r vehicles rented t thers. 17. Parade r shw cars; altered vehicles (we will allw alteratins in case f physical handicap); kit cars; RV r RV equipped vehicles; wreckers; tw trucks; buses; step vans; flat beds; dump trucks; r vehicles with a lad capacity 1 tn r greater. 18. Classic Auts: A classic aut is an aut ver 10 years ld and which because f limited prductin r exceptinally fine wrkmanship, is a rarity r f histric interest. 19. Replica auts 20. Vehicles with fiberglass r stainless steel bdies. 21. Vehicles used t carry explsive r flammable materials. 22. Mbile hmes, trailers, mtr hmes, r any vehicle used as a primary residence. 23. Cnversin vans r cnversin trucks. Vehicles Unacceptable fr Physical Damage Cverage 1. Vehicles ver 15 mdel years ld. Any exceptins must be apprved in advance by faxing an inspectin reprt and phts, fr underwriting apprval prir t taking an applicatin. 2. Special vehicles with Indianaplis 500 pace car insignia. 3. Private passenger autmbiles valued with a symbl ver 18 (21 fr 2011 and later mdels). 4. Vehicles with a value ver $40, Vehicles with existing damage unless prir underwriting apprval is btained, by submitting an inspectin reprt and phts prir t taking an applicatin. 6. ANY VEHICLE LISTED IN THE FOLLOWING TABLE: Alfa Rmer Ddge Viper Ltus Audi 4000 Ferrari Maserati Audi 5000 Fiat Mercedes Audi Quattr Frd Shelby/Cbra Mitsubishi 3000 GT BMW Hummer Pantera Buick Reatta Infiniti Q45 Peugt Cadillac Escalade, XLR Jaguar Plymuth Chrysler Prwler Lexus Prsche Crvette Lincln Aviatr Prwler Delrean Lincln Blackwd Sterling Ddge Stealth Lincln Navigatr Yug Miscellaneus Unacceptable Risks 1. Risks with Material Misrepresentatin n the applicatin. 2. Applicatins where all pertinent rating infrmatin is nt available prir t binding cverage. This infrmatin wuld include but is nt limited t the fllwing; Drivers License Numbers, VIN s, Garaging Lcatin, Operatr Date f Birth. MAXIMUM VALUE Fr Physical Damage Cverage On Any Vehicles Is $40,000. NOTE: If a change during the plicy perid results in a risk that wuld therwise nt have been eligible fr cverage, refer t the cmpany fr applicable rate. The plicy will be up-rated and nn-renewed. Lnestar MGA Maverick Underwriting Guide 13 Effective:

14 4.4 Inspectins: NOTE: Inspectins are required n vehicles with: Cllisin, Other Than Cllisin and UMPD. MANDATORY VEHICLE INSPECTION REQUIREMENTS - 1. Prducer will inspect each vehicle and cmplete an inspectin frm. Tw phts are required as indicated n the inspectin frm. 2. Inspectin frm must be signed by bth the insured and the prducer. 3. Inspectin frm becmes part f the applicatin and must be submitted with the riginal applicatin. 4. D nt include physical damage cverage n any vehicle until inspectin, with phts, is cmpleted. 5. Vehcile inspectin frm will be waived if a current bill f sale (within 10 days f effective date) is prvided. Must be frm a natinal reputable car dealership. DISCOUNTS MAXIMUM TOTAL DISCOUNT: Discunts and the maximum discunt are calculated when a new plicy is written and at each semi-annual renewal. The maximum discunt applies t each cverage and each vehicle. Discunts apply t BI, PD, OTC and COLL nly. 1. Multi-Car Discunt A discunt will be applied t each vehicle f a multi-car risk. 2. Hme Owners Discunt Applies t wner ccupied hmes, cndminiums, twnhuse r mbile hmes. Evidence f wnership includes ne f the fllwing: Mrtgage Payment Bklet r Statement Cpy f Hmewner r Dwelling Plicy Declaratin Page Tax Statement Deed f Trust The address f any prf must match the Plicy address and the named insured r spuse must be listed. The discunt will still apply if the spuse is excluded. 3. Cntinuus Insurance Discunts Transfer Discunt Applies t new plicies, when the applicant was previusly insured, by anther insurance cmpany r anther Lnestar MGA prduct, fr at least six (6) mnths, with n mre than a thirty (30) days lapse in cverage. The Transfer Discunt may NOT be applied at the pint f sale unless acceptable prf f prir cverage will accmpany the riginal applicatin. If prf f prir cverage is t be submitted at a later date the premium r dwn payment amunt cllected at pint f sale must NOT be discunted. Prf f Prir Cverage may be ne f the fllwing items and shuld be independently verified by the prducing agent: Declaratins Page Renewal Declaratin r Certificate Renewal Offer r Nn-Renewal Ntice Liability Insurance Card (with agent verificatin), written in USA. In Huse Transfer Discunt Applies in additin t the Transfer Discunt. Applies t new plicies, when the prducer prvides sufficient dcumentatin that the applicant: Meets the qualificatins f Prir Insurance Discunt. (This includes was previusly insured, by anther insurance cmpany r anther Lnestar MGA prduct),; and Was insured by the prducer fr at least the previus 6 mnths; and Actually made the payments t keep the previus plicy infrce fr at least the previus 6 mnths. In Agency Transfer Discunt des NOT apply t Maverick renewals r Maverick rewrites. These plicies receive a Renewal Discunt. Maverick plicies cannt be used as prf f prir. Lnestar MGA Maverick Underwriting Guide 14 Effective:

15 Accident Free Renewal Discunt per 6 mnth Term A renewal discunt will apply after each 6 mnth plicy term with Lnestar MGA during which n claims r chargeable accidents ccur, until the maximum allwable cmbinatin f Prir Cverage and renewal discunts f 30%. Any chargeable accident will result in lss f the accident free renewal discunt. MAXIMUM Cntinuus Insurance Discunt Renewal discunts will be applied until the cmbinatin f all Cntinuus Insurance Discunts reaches the prgrams maximum cntinuus insurance discunt. 4. PAID IN FULL DISCOUNT (Applies t 6 Mnth Term nly) A paid in full discunt will apply nly if all f the required premium and fees are cllected at the inceptin f the plicy. GENERAL SURCHARGES Liability With Physical Damage 1. Applied by vehicle, nt by plicy. 2. Applies t nly when the specific vehicles cverage includes OTC and Cllisin. 3. Applies t nly BI and PD cverages. BUSINESS USE Apply the Business Use surcharge t BI, PD, OTC and Cllisin fr: 1. Private passenger autmbiles used in business; 2. Utility vehicles wned r leased by an individual and engaged in Artisan Use. Artisan Use is defined as ONE utility vehicle used by the insured fr business as a cntractr r artisan t transprt tls and supplies incidental t the insured s trade r business. The vehicle is eligible fr cverage, prvided the vehicle is used in a cnstructin r cntractr s related trade listed belw: Carpentry Heating and Air Cnditining Electricians and Electrical Cntracting Plaster/Drywall Masnry, Tile & Marble wrk, Plumbing, Flr Laying, Glasswrk, Landscaping Trades NOT eligible include: Pest Cntrl Rfing Painting Multiple Artisan Use vehicles are nt eligible. Vehicles nt eligible fr the Business Use Surcharges include: 1. Vehicles with advertisements r lgs 2. Vehicles that g utside f a 75 mile radius 3. Vehicles used in the delivery r pick-up f gds r persns fr hire. Lnestar MGA Maverick Underwriting Guide 15 Effective:

16 DRIVING RECORD CHARGES (Applies t BI, PD, OTC and Cllisin) 1. MAJOR VIOLATIONS - 5 POINTS (a) DWI, DUI, Educatin prgram required, r failure t underg testing under implied cnsent law. (b) Speed cntest r racing. (c) Fleeing frm r attempting t elude a plice fficer. (d) Leaving scene f accident, hit and run, r failure t stp and give infrmatin. (e) Reckless driving, r similar charge. (f) Negligent hmicide r any felny cnvictin arising ut f the peratin f a mtr vehicle (g) Driving while unlicensed r while license is suspended r revked. 2. INTERMEDIATE VIOLATIONS & ACCIDENTS - 3 POINTS (a) Accident; single car accidents will be cnsidered at fault. Other accidents will be cnsidered chargeable unless prf is submitted with the applicatin indicating that the insured was nt at fault. Cntributry ntatins n the plice reprt will be cnsidered at fault. If we prvide cverage fr an at fault accident, the pints may be charged t the named insured. POINTS ARE ADDED TOGETHER FOR BOTH A CHARGEABLE ACCIDENT AND ANY OTHER VIOLATION OCCURRING ON THE SAME DATE. (b) Failure t yield t an emergency vehicle. (c) Driving t fast fr cnditins, excessive acceleratin, and failure t cntrl speed r vehicle. (d) Driving n wrng side f rad, driving wrng way, r driving n the sidewalk. (e) Failure t stp r remain stpped fr a schl bus. (f) Displaying altered driver s license, r unlawful use f driver s license. (g) Cnsumed alchl while driving. (h) Fllwing t clse. 3. MINOR MOVING VIOLATIONS - 1 POINT first vilatin, 2 POINTS each additinal (a) Speeding. (b) Disregarding any stp sign, red light, r any fficial traffic cntrl device. (c) Failure t yield right f way. (d) Unsafe lane change. (e) Illegal r Imprper turn r backing. 4. MINOR NON-MOVING VIOLATIONS - 1 POINT (a) Expired license r failure t display license. (b) N seat belt. (c) Vilated DL Restrictin. (d) Failure t use turn signal. 5. UNVERIFIABLE MVR/RECORD - 5 POINTS Surcharge any driver fr whm a 3-year MVR is unbtainable r wh has been licensed less than 2 years UNLESS prf f cmpletin f driver s training/educatin curse is prvided. 6. OUT OF STATE DRIVERS LICENSE - 0 POINTS New Texas residents must secure a Texas driver's license within 30 days. Military Persnnel are nt required t btain a Texas Drivers License. 7. FOREIGN OR INTERNATIONAL DRIVERS LICENSE - 2 POINTS A 2 pint surcharge will apply t peratrs wh have a freign r internatinal driver s license. The surcharge may nly be remved if, within 60 days f the plicies effective date, a valid Texas Driver s license is btained and we receive ntificatin f a valid driver s license number. 8. NO SURCHARGE FOR THE FOLLOWING (a) N mtr vehicle inspectin sticker. (b) Defective equipment. (c) Citatin fr n evidence f liability insurance. ANY ACCIDENT OR VIOLATION NOT LISTED, CALL FOR CLARIFICATION Lnestar MGA Maverick Underwriting Guide 16 Effective:

17 Rate Classes Single - Any persns wh des nt meet the Married qualificatin listed belw. This includes married persns wh d nt live tgether in the same husehld and residence. Married - Must live in the same husehld and residence with an ppsite gender spuse with whm they share a legal marriage certificate. Driver Assignment Pint surcharge is determined by using the driving recrd f individual drivers fr 35 mnths preceding the plicy effective date. The highest rated peratr is assigned t the highest rated vehicle. Mre auts than peratrs-the unassigned vehicle may be written at the unassigned driver class factr with zer pints. All plicies will be issued at the crrect rates based n infrmatin frm the applicatin and underwriting investigatin. Driver Exclusins All persns in the insured's husehld age 14 r lder must be listed n the applicatin. All drivers MUST be prperly licensed; therwise, thse persns must be excluded with endrsement #515A. If a Business Use surcharge applies, any emplyee f the insured must be listed n the applicatin and be prperly licensed; therwise, emplyees must be excluded with endrsement #515A. The named insured may nt be excluded, except with the apprval f underwriting prir t submitting the applicatin. All married insured's must give driver infrmatin fr the spuse in the drivers sectin f the applicatin, r exclude the spuse with a signed endrsement #515A. Territries Territries are defined by ZIP cde and Cunty. Use the ZIP cde and cunty fr the lcatin where the vehicle is principally garaged. Mdel Year The Mdel Year f the aut is the year assigned by the manufacturer. Symbls Use standard industry symbls fr rating all vehicles. Cntact the Underwriting Department fr vehicles nt assigned a symbl in PTS. Maximum Acceptable Cst New is $35,000. Cancellatins All cancellatins will be prcessed n a Pr-rata basis. Lnestar MGA Maverick Underwriting Guide 17 Effective: