PO Box Laguna Hills CA Phone: Fax: CALIFORNIA PLATINUM

Transcription

1 PO Box Laguna Hills CA Phone: Fax: CALIFORNIA PLATINUM PRIVATE PASSENGER AUTOMOBILE PRODUCT GUIDELINES Underwritten By: AM Best NR5 A.M.Best #: NAIC #: FEIN #: EFFECTIVE: 08/01/2010 SCP

2 IMPORTANT PHONE NUMBERS AND ADDRESSES Mailing Address: Physical Address: SUN COAST GENERAL INSURANCE SUN COAST GENERAL INSURANCE PO BOX MILL CREEK DRIVE LAGUNA HILLS CA LAGUNA HILLS CA Internet Address: Policy Service Center Website: Policy Inquiry, EFT Installment Payments, Endorsements, EFT Reports, Download Supplies, and News & Information to keep your agency up to speed on new products and program features. Department Phone Number FAX Customer Service (Producer Line) (800) (949) Customer Service (Insured Line) (949) (949) Marketing (949) (press 3) (949) Accounting (949) (press 6) Commercial (949) (press 4) (949) Ocean Marine (949) (press 7) (949) TELEBIND (800) Claims: All losses must be reported immediately to Specialty Claims Management for handling. We recommend that you refer the Insured / Claimant to the First Report of Loss phone number to report the loss directly to SCM. All follow up status calls can be made directly to the Adjuster assigned to the loss. Producers do not have any authority to accept, deny or adjust claims. SCM - Claims Phone Number First Report and Adjuster Follow Up SCM (4726) SCP

3 GENERAL INFORMATION: 1. PROGRAM OVERVIEW: a. We are offering a competitive Private Passenger Automobile program designed to provide an array of coverage's, terms and limits to fit a variety of automobile insurance needs. Liability only, combo (Liability & Physical Damage), or Physical Damage only coverage's are available. We offer basic Liability limits of 15/30/05 or 15/30/10. We also have a selection of Physical Damage deductible options ranging from $100 up to $1,500. We accept risks with 1981 & newer vehicles with a maximum value of $50,000 or less and drivers with clean driving records as well as multiple accidents & violations. Check out our easy payment terms for customers who prefer low down payments or a lower monthly payment. 2. COVERAGES AND LIMITS: a. Bodily Injury And Property Damage Liability (BI/PD): 1. Bodily Injury/Property Damage Limits: 15/30/5, or 15/30/ Bodily Injury and Property Damage Liability limits must be the same for all vehicles listed on the policy. b. Medical Payments (MP): 1. Limits available are: $500, $1,000, or $2,000 per person. 2. Medical Payment limits must be the same for all vehicles listed on the policy. c. Uninsured Motorist Bodily Injury (UMBI): 1. Limits available are: 15/ If this coverage is not desired, the Named Insured must sign the UMBI waiver on the application. 3. UMBI coverage is available without UMPD or CDW. 4. UMBI Limits must be the same for all vehicles listed on the policy. d. Uninsured Motorist Property Damage (UMPD): 1. Limits available are: $3,500 per accident. 2. If this coverage is not desired, the Named Insured must sign the UMPD waiver on the application. 3. UMPD is not available without UMBI coverage. e. Collision Deductible Waiver (CDW): 1. Limits available are: Collision deductible on policy. 2. If this coverage is not desired, the Named Insured must sign the UMPD waiver on the application. f. Comprehensive And Collision (CP / CL): 1. Available deductibles are: $100, $225, $250, $475, $500, $750, $950, $1,000 or $1,500 in any combination. 2. Comprehensive coverage is available without Collision coverage. Collision coverage is available without Comprehensive coverage. g. Special Equipment Coverage (SE): 1. Special equipment shall be defined as any equipment not installed by the original vehicle manufacturer or original selling dealership when purchased new. 2. You must include all special equipment on the application when it is installed on an insured vehicle. Failure to list the Special Equipment will prevent us from covering these items in the event of a loss. h. Rental Reimbursement Coverage (RR): 1. If the Named Insured selects Rental Reimbursement coverage we will provide: 2. Rental Car Reimbursement: Limits up to $20 per day for the rental of a vehicle up to a maximum of $ Rental Reimbursement coverage is not available without Comprehensive and Collision coverage. 4. This coverage is on a reimbursement basis and is only applicable in the event of a COVERED COMPREHENSIVE or COLLISION loss. i. Towing Reimbursement Coverage (TR): 1. If the Named Insured selects Towing Reimbursement coverage we will provide: 2. Towing Reimbursement: Limits up to $50 per disablement. 3. Towing Reimbursement coverage is not available without Comprehensive and Collision coverage. 4. This coverage is on a reimbursement basis and is only applicable in the event of a COVERED COMPREHENSIVE or COLLISION loss. j. Named Non-Owner Coverage (NO): 1. The Named Insured may elect to purchase a Named Non-Owner policy. This policy offers liability protection for the individual named on the Declarations page while driving a non-owned vehicle. Available coverage's are BI, PD, UMBI and MP. This coverage will not apply if the vehicle that is being operated by the Named Insured is owned by or registered to the Named Insured, spouse, persons in the household, or vehicles available for the Named Insured s regular or frequent use. 2. Business and Artisan Use are not applicable. SCP

4 3. No additional drivers can be listed on the policy. 4. We do not offer a BFNO (Broad Form Named Operator) policy. 3. APPLICABLE FEES: a. Policy Fee: A $20 ($16 if Good Driver) Policy fee will be applied to each new business application and at the annual anniversary of the policy. The policy fee is subject to the Good Driver 1 Discount provided all rated vehicles receive the Good Driver Discount. b. SR-22 Filing Fee: A $30 SR-22 Filing Fee will be applied to each SR-22 (U or T) issued. The filing fee is fully earned upon issuance of the SR-22. If an SR-22 has to be reissued due to a lapse in coverage, a $7 SR-22 Reissue Fee will be applied to each SR-22 we reissue. c. Billing Fee: Each installment will be billed with a $12 billing fee included in the total amount due. We will reduce the billing fee to $10 for any EFT payment policy. d. Late Payment Fee: Any premium installment payment not postmarked PRIOR to the cancellation date will be subject to a $9 late payment fee. e. Returned Check Fee: If an installment payment is not honored when presented for payment (for any reason), the policy will be cancelled as if the payment was never received. We will reinstate with lapse up to thirty (30) days from the cancellation effective date if a money order is received, for the full amount of the premium payment plus $25 for a returned check fee, within the thirty (30) day acceptance period. f. Endorsement Fee: A $5 endorsement fee will apply to all premium change endorsements (except SR-22s). g. Convenience Fee: A $5 Convenience fee will apply to any Credit Card payment. h. CA Vehicle Assessment: A $2 Assessment Fee will be applied to every vehicle listed on the policy at its inception and at every annual anniversary date. This assessment is being surcharged pursuant to CIC Section , and CCR Section SR-22 FILINGS: a. SR-22 Filings will only be issued on a CALIFORNIA drivers license upon request or if indicated on the California Motor Vehicle Report. b. Owners Filings (U): SR-22 Proof of Insurance Filings can be issued to the Named Insured, Named Insured's spouse or Named Insured's children living in the Named Insured's household provided we insure all vehicles registered to these individuals. c. An Owners filing covers all motor vehicles, including motorcycles, owned by the Named Insured or in which he has incidence of ownership on the date the filing is made and vehicles acquired during the period the filing is in effect. This includes vehicles owned by a spouse or partnership. We must insure all such owned motor vehicles before we can issue an SR-22 Filing. d. Operators Filings (T): SR-22 Proof of Insurance Filings can only be issued to the Named Insured on a Non-Owners policy. e. An Operators filing provides proof of liability coverage for an individual who does not own a motor vehicle. 5. NEW BUSINESS PROCEDURES: a. We will require the producer to electronically transmit every application to us using our Sun Coast eapp Bridge. b. Our eapp Bridge will provide you with a complete application, all required forms/documents, and a confirmation of the date and time the application was transmitted to us. The producer is required to have all pages completed and signed prior to the named insured leaving their office. Do not transmit an application to us where you did not obtain a completed application and all required paperwork (including down payment). Three (3) days after the application upload date we will EFT the gross premium and fees from the producers authorized account. b. Sun Coast will bind coverage effective the date and time of the application transmittal provided the risk is acceptable as quoted. We reserve the right to underwrite each risk based upon it s own merits. c. Applications cannot be voided once the insured leaves the producers office. Any request to void an application after this period will be cancelled on a pro-rata basis effective the date of receipt of the request by us. Any earned premium and fees will be charged to the producers authorized account. d. If the producer inadvertently uploads an application twice, the producer must immediately notify our Customer Service Representative by phone. Failure to notify us immediately will result in the duplicate application being debited (EFT) from the producers authorized account. In this case we will only be able to process the credit on the producers next statement. e. The producer will be required to keep the following ORIGINAL SIGNED documents in their file. Periodically Sun Coast will audit your files for compliance with these guidelines. Failure to provide the original completed document as required will result in a failed audit or a possible E&O exposure: 1. All pages of the original signed application. SCP

5 2. Copy of rating service quote. 3. Any MVR s, copy of Foreign/International license for any driver rated with this type of license, police report or accident/violation documents used to quote the risk. 4. If Physical Damage coverage is purchased; a. PHOTOS: Two (2) photos taken by the producer at the time of writing the new business application (clearly showing all four sides of the vehicle). 1. Photos may be waived by either of the following: a. Proof of prior Comprehensive and Collision coverage, with no more than a thirty (30) days lapse; or b. A complete and legible typed sales contract from a licensed dealership that is dated within thirty (30) days of the requested effective date. b. REGISTRATION: A copy of the Vehicle Registration. 1. Registration may be waived by either of the following: a. Proof of prior Comprehensive and Collision coverage, with no more than a thirty (30) days lapse; or b. A complete and legible typed sales contract from a licensed dealership that is dated within ninety (90) days of the requested effective date. c. The following risks will always require Photos and a Vehicle Inspection. These risks cannot waive the requirement for these two items. 1. Vehicles with Special Equipment in excess of $1, Van Conversions or Custom Vans 3. Vehicles rated with Business or Artisan Use 4. Any prohibited vehicle that is accepted as a result of the Good Driver requirements. 6. INSTALLMENT PROCEDURES: a. 6 or 12 Month Policy Terms: If the named insured selects one of our payment options, we will send the named insured an installment billing that will be due approximately 20 days from the policy inception date, and every 30 days from that point forward. If we do not receive the premium payment when due, a cancellation notice will go out with a minimum of 10 days notice. Each installment billing will include a fully earned billing fee. b. 1 to 3 Month Policy Terms: If the named insured selects one of these policy terms, we will send the named insured an expiration notice / renewal offer at least 20 days prior to the policy term expiration. No further notices will be mailed to the named insured. A Billing Fee will apply to each expiration / renewal offer. c. Online Installment and Renewal payments: Keep a copy of the confirmation receipt in your files for future reference. 1. Credit Card: The producer or insured will be allowed to make installment payments by entering a valid credit card by the payment due date. 2. Producer EFT: The producer will be allowed to make payments on line from their authorized EFT account. This is the same EFT account as new business. d. Insured EFT Option: If the named insured selects the reoccurring EFT payment option, the down payment will be debited from the producers authorized EFT account and all future installments will be deducted from the named insureds checking account. The Insured EFT form must be completed with all account information at the time of transmitting the new business application to us. e. Mailing Installment Payments: If the Named Insured would like to mail us a check for each installment payment, we will follow these guidelines: 1. If a premium payment is not postmarked PRIOR to the cancellation date, we will reinstate with lapse effective the date the payment is received by us, provided the payment is received within thirty (30) days of the due date. A late payment fee will be applied. 2. If a producer receives a payment prior to the cancellation date and does not want to process the payment on line, the producer must TeleBind the payment and advise the Named Insured of the TeleBind number. The payment will be determined received by us on the TeleBind date and time, provided the producer postmarks the premium payment within three (3) days of the TeleBind date and time. A fax to our Customer Service Department may also be used in lieu of TeleBind. The fax must indicate the date/time you received the payment along with the check number. 3. If a producer receives a payment after the cancellation date, but within the thirty (30) day acceptance period and does not want to process the payment on line, the producer must advise the Named Insured of the thirty (30) day reinstatement with lapse rule, TeleBind the payment and advise the Named Insured of the TeleBind number. The payment will be determined received by us on the TeleBind date and time, provided the producer postmarks the premium payment within three (3) days of the TeleBind date and time. A fax to our Customer Service Department may also be used in lieu of Telebind. The fax must indicate the date/time you received the payment along with the check number. SCP

6 4. If a producer receives a payment after the thirty (30) day acceptance period, the producer must rewrite the policy. A new application must be written and uploaded with all appropriate documentation and fees. Any payment received after the thirty (30) day acceptance period will be returned no coverage bound. 7. ENDORSEMENT PROCEDURES: a. We offer multiple ways for a producer or insured to request changes to an existing policy: 1. On Line Endorsements: Producers may process endorsement requests through our Policy Services Website. Producers are required to keep all original documents in their file for seven (7) years. 2. Endorsements By Phone: We allow producers to call our Endorsements By Phone line at , press 4. Producers are required to keep all original documents in their file for seven (7) years. 3. Mail or Fax: Producers may complete an endorsement request form outlining all required changes; attach a copy of the rating service quote and additional premium payment (if premium changes as a result) and mail it to our office. The producer must TeleBind these endorsements and postmark them within three (3) days of the TeleBind date. The TeleBind number must be clearly indicated on the endorsement request paperwork. Sun Coast will make the endorsement effective the latter of the requested effective date or the date and time of TeleBind. If the request is not TeleBound, the endorsement will be effective the date AFTER receipt by Sun Coast. b. Driver Exclusion: Producers may download the authorized Driver Exclusion form from our Downloads section of our Website. The Named Insured must sign the request. c. Additional Vehicle: To add an additional vehicle to an existing policy, we will require the producer to obtain the same documents required for new business (photos or sales contract). d. Replacement Vehicle: To add a replacement vehicle to an existing policy, we will waive the vehicle registration and photo requirement if the coverages are identical to the vehicle it replaced. If the named insured wishes to add Comprehensive and Collision coverage to the replacement vehicle, we will require photos of the replacement vehicle if the policy has not been in effect for one (1) year. If the policy has been in effect for one (1) year or longer, we will waive the photo requirement. e. If the Named Insured moves out of California we recommend you advise the Named Insured that we prefer that the Named Insured purchase a policy from a carrier who currently writes business in that state as our policy does not provide for any increased limits or state mandated coverage's for residents of any state other than California. If the policy has thirty (30) days or more remaining, we will issue a cancellation notice (pro-rata) to the last known address. 8. CANCELLATION PROCEDURES: a. Policies cancelled by the request of the Named Insured or producer shall be effective no earlier than 12:01AM on the date of postmark of the cancellation request. If there is a Lienholder or additional insured, we will extend the agreed ten (10) days notice indicated in the Loss Payable Endorsement. b. Insured request cancellations will be processed on a short rate basis. All other requests will be on a pro rate basis. c. Flat cancellations are allowed after the inception date of a policy only when the Named Insureds down payment check is returned for non-sufficient funds, or proof of duplicate coverage (equal or greater limits) is received by us. Proof of duplicate coverage shall only be a copy of the duplicate carriers declarations page indicating the insured, vehicles, coverages, limits and effective date. Applications, binders or insurance identification cards are unacceptable proof. UNDERWRITING RULES 1. ELIGIBLE VEHICLES AND USE: a. Private passenger vehicles, pickup trucks and vans with a gross weight of one (1) ton or less with an acceptable vehicle use outlined below: 1. Pleasure Use: Vehicles not used for commercial purposes or commuting to work or school. 2. Work Use: Vehicles used to drive back and forth to work or school. 3. Farm Use: Vehicles used primarily on a farm, ranch or orchard. 4. Business Use: These are vehicles used by sales people, owned or leased by a partnership or corporation, or having a business as an additional interest. 5. Artisan Use: These are single vehicles operated by the insured in a trade or business where the vehicle is: owned or leased by an individual; operated solely by the named insured or other resident relatives. Risks with additional drivers that are not related to the named insured must be called in for an approval code prior to transmitting the application to us. Failure to do so may result in rejection of the risk; used to transport tools or other materials, where such transport is incidental to the insured's trade or business, to no more than two job sites per day; and SCP

7 not used to transport explosives, flammable materials, or equipment weighing more than 500lbs. b. A Vehicle Inspection and Photos are mandatory for all risks rated with Comprehensive and Collision coverage rated as Business or Artisan Use vehicles. c. Examples of Acceptable Artisan professions: Appliance Repairman Appraiser Blacksmith Cabinet Maker/Installer Carpenter Carpet Cleaner/Installer Construction Contractor Drapery Installer Electrician Exterminator Fence Installer Furniture Repairman Heating/AC Repairman Interior Decorator SCP Janitorial Serviceman Landscape Contractor Musician Painter Photographer Plumber Pool Cleaner Maintenance Radio/TV Repairman Refrigeration Serviceman Repairman (general) Roofer Surveyor Tree Trimmer Upholsterer Welder 2. ELIGIBLE DRIVERS: a. The spouse of the Named Insured, all person(s) listed on the vehicle registration, all person(s) in the household age fifteen (15) or older, and all persons who operate the insured vehicle(s) on a regular or frequent basis must be included as a covered driver on the policy or listed as an excluded operator on the driver exclusion. b. The Named Insured must reside in California. Military service personnel must be residents of, or stationed in California. If stationed out of state call our Customer Service Department for possible acceptance. c. The Named Insured may be excluded from the policy. The Named Insured or spouse may sign the application and any exclusions throughout the entire policy period. If the Named Insured s spouse signs the application they must be legally married and reside at the same residence. Only one individual can be listed as the Named Insured. 3. UNACCEPTABLE DRIVERS ALL COVERAGES: a. Any driver under age 15, regardless of time licensed. b. Risks that do not reside at a permanent, verifiable residence address in California at least 10 months per policy year. This includes persons living in their vehicle, migratory risks and transients. c. Risks with autos at more than one garaging address. This includes requests to cover students garaging a vehicle away at school at an address that is different from the parents or legal guardians garaging address on the same policy. d. More than ten (10) underwriting points on any one driver. e. Three (3) or more at fault accidents for any one driver. f. Any driver with a revoked US or Foreign / International license. We accept drivers with a current Foreign / International License (see Good Driver Regulations for Good Driver Discount qualification). Note: Any drivers qualifying as Good Drivers, insuring a vehicle registered as a private passenger vehicle by the DMV, will be offered insurance as required by the California Insurance Code. 4. UNACCEPTABLE VEHICLES ALL COVERAGES: a. Not registered to the Named Insured, spouse or children (if residents of same household) unless the owner of the vehicle is listed as a driver or is listed as a named excluded operator on the policy. b. In excess of one (1) ton. c. Modified mechanically or structurally resulting from a change in performance or appearance (excluding raised or lowered vehicles, provided they are legal to be driven on public highways). d. Used for any commercial purpose, including but not limited to the following: taxi service, escort, emergency, newspaper delivery, food delivery (including pizza), magazine or film delivery, transporting of passengers for groups, schools or migrant workers, courier services, etc. e. Antique cars, show cars, race cars, kit cars, custom cars, classic cars. f. Flatbed trucks, stake bed trucks, utility bed trucks and dump trucks. g. Motorcycles, Travel Trailers, Motor homes, Boats, Dune buggies or Baja Bugs and Off road vehicles. h. Emergency vehicles. i. Gray market vehicles. j. Vehicles garaged outside California. k. Company owned or fleet cars. l. Any vehicle not in safe condition as per VC24002 (increase in hazard insured against).

8 m. Any vehicle used for Commercial Use or not acceptable under the Business Use or Artisan Use guidelines. n. All vehicles listed in the Rate Manual under Unacceptable Vehicles All Coverage's. Note: We will accept all Good Driver applicants. The company will write a policy on an ineligible vehicle for a Good Driver. You must call our Customer Service Department for risk review prior to transmitting the risk to us. We may require you to fax certain information for our review. Our Customer Service Department, if accepted, will issue you an approval number that must be entered at the time of the new business application upload process. 5. DRIVER CLASSIFICATIONS: a. Married means legally wed. Persons widowed, divorced, or living together unmarried will be rated as single. Persons legally recognized as Permanent Domestic Partners will be considered married. b. Years Driving Experience is calculated by taking the current age of the driver and subtracting the age of the driver when he/she received their first valid automobile drivers license. Example: a 26 year old driver who received their license at age 16 would qualify for 10 years experience (26-16=10). c. All point counts are based upon a thirty-six (36) month experience period (based on Conviction date for moving violations). Only violations with a conviction date are taken into consideration for program qualification and rating. d. For multiple violations arising from one occurrence, we use the single highest charge involved. e. Accidents: 1. A driver may be considered to be principally at fault in an accident if the driver's actions or omissions were at least fifty-one percent (51%) of the proximate cause of the accident, subject to the exceptions set forth below, and, in accidents not resulting in death, if the total loss or damage caused by the accident exceeded $750. A driver shall not be considered to be principally at-fault if the accident occurred under any of the following circumstances: a. The vehicle was lawfully parked at the time of the accident. A vehicle rolling from a parked position shall not be considered to be lawfully parked, but shall be considered as in the operation of the last operator; b. The vehicle was struck in the rear by another vehicle, and the driver has not been convicted of a moving traffic violation in connection with the accident; c. The driver was not convicted of a moving traffic violation and the operator of another vehicle involved in the accident was convicted of a moving traffic violation; d. The driver's vehicle was damaged as a result of contact with a vehicle operated by a "hit and run" operator of another vehicle and the accident was reported to legal authorities within a reasonable time after the accident; e. The accident resulted from contact with animals, birds, or falling objects; f. The driver was responding to a call of duty as a paid or volunteer member of any police or fire department, first aid squad, or of any law enforcement agency, while performing any other governmental function in a public emergency; g. The accident was a solo vehicle accident that was principally caused by a hazardous condition of which a driver, in the exercise of reasonable care, would not have noticed (for example, "black ice."). 2. The insured shall provide us with sufficient information concerning the accident so we may determine if the driver was principally at fault or not. If the insured fails to provide us with such information, then we will consider the driver to be principally at fault for the accident. If the driver was insured by another carrier at the time of the loss and they determined that the driver was not principally at fault for the accident, we will also consider the driver not at fault. We will require that the insured provide us with enough information to make this determination (CCR (i) letter of no fault), which shall include a self certification by the insured. Selfcertification shall be a sworn affidavit, on a form we designate, under penalty of perjury of their driving experience. 6. DISCOUNTS/SURCHARGE: a. Renewal Discount: 1. A Renewal Discount will be applied at the six (6) month renewal (for terms of 6 months or less) and annual renewal of the policy. b. Multi-Car Discount: 1. Applies when two (2) or more vehicles are listed on the policy. c. Mature Driver Discount: 1. Applies when a driver is age fifty-five (55) or older, and has successfully completed an Accident Prevention Course approved by the DMV. Eligibility begins from the date of course completion. The course must be taken every three (3) years to continue qualifying for this discount SCP

9 d. Good Student Discount: 1. A Good Student Discount shall be applied to a driver who between the ages of 16 to 23 years old and is a full time High School, College or University student and is in the upper 20% of his/her class, or maintains at least a 3.0 or B grade point average, or is on the Dean s List, Honor Roll or comparable list indicating scholastic achievement. e. Good Driver Discount: 1. Good Driver 1: A Good Driver 1 Discount is applied to all vehicles assigned drivers qualifying for the Good Driver status under Section of the CA Insurance Code. 2. Good Driver 2: A Good Driver 2 Discount is applied to all vehicles assigned to driver who meet the following criteria: a. Meets all the criteria for the Good Driver 1 Discount; and b. Has had no chargeable accidents or violation convictions for the most recent 60 months (5 years). This must be documented with a current Motor Vehicle Report. If a current States driving record does not provide 60 months of continuous uninterrupted driving record (no breaks in license or driving privileges), the driver must provide us with the prior license information so we can combine the previous States MVR to total 60 months in order to document qualification for this discount. c. This discount is not available on EV s. f. Secondary Driver: 1. Secondary Drivers are all eligible to be rated drivers who are not rated on a vehicle (more drivers than vehicles). If a policy has more than one Secondary Driver, the Secondary Driver with the lowest driving experience will be assigned to the highest rated vehicle until either; 1. all Secondary Drivers have been assigned to a vehicle; or 2. you run out of Secondary Drivers to assign. 2. Secondary Driver 1 A Secondary Driver qualification with less than three (3) years driving experience. 3. Secondary Driver 2 A Secondary Driver qualification with three (3) or more years driving experience. g. Business Use: 1. Business and Artisan Use vehicles will carry a Business Use Surcharge. PHYSICAL DAMAGE RATING RULES: 1. GENERAL RULES: a. The producer must inspect all vehicles to be insured for Comprehensive and Collision coverage. The purpose is to verify that we are insuring the correct vehicle as well as note any existing damage or special equipment. b. Damage effecting the safe operation of the vehicle will need to be repaired prior to binding Comprehensive and Collision coverage (Increase in hazard insured against). c. Vehicles with damage that does not effect the safe operation of the vehicle will need an estimate of repair completed by a licensed automobile repair facility to be kept with the original application. 2. UNACCEPTABLE VEHICLES: a. The following vehicles are ineligible for Comprehensive and Collision coverage: 1. All vehicles listed under Unacceptable Vehicles All Coverages. 2. Vehicles with a title marked Salvaged, previously salvaged or deemed a total loss by any insurance company. 3. Vehicles with a Retail Blue Book and Special/Optional Equipment combined value greater than $50,000 or any vehicle 1980 and older valued less than $2,500. Note: Any drivers qualifying as Good Drivers, insuring a vehicle registered as a private passenger vehicle by the DMV, will be offered insurance as required by the California Insurance Code. 3. SPECIAL EQUIPMENT / CONVERSION VAN: a. Special Equipment: 1. Special equipment shall be defined as any equipment not installed by the original vehicle manufacturer or original selling dealership when purchased new. You must include all special equipment on the application when it is installed on an insured vehicle. Failure to list the Special Equipment will prevent us from covering these items in the event of a loss. b. Conversion Van Rating: 1. Custom Vans and Van Conversions: These vans are defined as a van that has been altered from the original factory condition. This includes, but is not limited to, interior, exterior customization packages, or interior, exterior alterations, refrigerators, stoves, exterior paint and windows. This customization includes customization done by the selling dealer or any company in their behalf or at any time after the vehicle was purchased new. The value for all customization must be itemized and declared on the application and additional premium paid, or no coverage SCP

10 bound. These vans are registered as private passenger automobiles and are used solely as a private passenger auto. 2. We will require a Vehicle Inspection and Photos on Conversion Vans. 3. For vans with a Conversion Package we will require the conversion package name and value. An itemized list of the equipment must be kept in your files. Coverage will be provided on an ACV basis, up to the stated amount, whichever is LESS. SCP