11/1/07 NB TOC- 1 FL 11/1/07 RB

Transcription

1 AUTO CLUB INSURANCE COMPANY OF PACKAGE UNDERWRITING SECTION... 1 Package Underwriting Guidelines... 1 General Guidelines... 1 HOMEOWNERS UNDERWRITING SECTION... 2 Homeowners Underwriting Guidelines... 2 Unacceptable Risks... 2 Referral Risks... 3 Dwelling Criteria... 3 Deductible Requirements... 3 Inspection Requirements... 4 Coverage Amounts... 4 Residence Type... 4 Other... 4 Non-Hurricane Underwriting Levels... 6 AUTOMOBILE UNDERWRITING SECTION... 7 New Business & Renewals... 7 General Guidelines... 7 Vehicle Guidelines... 7 Policy Guidelines... 7 Driver Guidelines (Applicable to Non-Excluded Drivers)... 5 Ineligible Vehicles List... 5 Automobile Underwriting Levels... 6 PACKAGE RULE SECTION... 1 Rule 1 Policy Term... 1 Rule 2 Eligibility... 1 Rule 3 Hurricane Binding Restrictions... 1 Rule 4 Mandatory Coverages... 1 Rule 5 Cancellations... 1 Rule 6 Changes... 2 Rule 7 Insurance Score Procedures... 2 Rule 8 Insurance Score Renewal Review... 3 Rule 9 Underwriting Level Renewal Review... 3 Rule 10 Renewals... 3 Rule 11 Group Association Discounts... 3 Rule 12 Whole Dollar Premium... 4 Rule 13 Payment Options... 5 Rule 14 Payment Plan Changes... 5 Rule 15 Emergency Management Preparedness And Assistance Trust Fund... 5 Rule 16 Florida Insurance Guaranty Association (FIGA) Policy Assessment... 5 Rule 17 Citizen Property Insurance Company (CPIC) Policy Assessment... 6 HOMEOWNER RULE SECTION... 1 Rule 1 Description of Policy Forms... 1 Rule 2 Description Of Coverages... 1 Property Coverages... 1 Liability Coverages... 3 Rule 3 Other Coverages... 3 Rule 4 Primary/Secondary/Seasonal Dwelling... 4 Rule 5 Assignment or Transfer... 6 Rule 6 Named Insured... 6 Rule 7 Location... 6 Rule 8 Residence Address... 6 Rule 9 Other Insurance... 6 Rule 10 Premium Determination... 7 Rule 11 Construction Definitions... 7 Rule 12 Protection Class... 8 Rule 13 Mitigation Rating /1/07 NB TOC- 1 FL 11/1/07 RB

2 AUTO CLUB INSURANCE COMPANY OF Rule 14 Building Code Effectiveness Grading Rule 15 Reserved for Future Use Rule 16 Coverage Amount Rule 17 Homeowners Deductible Options Rule 18 Number of Units (Form HO-6 Only) Rule 19 Protective Devices Rule 20 Group Association Discount Employee Group Discount Rule 21 Senior Discount Rule 22 New / Renovated Home or Condo Rule 23 Homeowners Experience Rating Plan Rule 24 Fortified Home Discount ADDITIONAL COVERAGES SECTION... 1 HOMEOWNERS ENDORSEMENTS... 1 HO-32 - Unit-Owners Building Property - Special Coverage (HO-6 Only)... 1 HO-35 - Loss Assessment Coverage (All Forms)... 1 HO-41 - Additional Insured (All Forms)... 1 HO-42 - Office, Professional, Private School, Or Studio Use - Residence Premises (All Forms)... 2 HO-48 Additional Limit on Other Structures (HO-3 Only)... 2 HO-49 Screened Enclosures Windstorm Or Hurricane Windstorm (HO-3 Only)... 2 HO-53 Additional Limit On Credit Card, Fund Transfer Card, Forgery, And Counterfeit Money Coverage (All Forms)... 4 HO-55 - Identity Fraud Expense Coverage (All Forms)... 4 HO-61 Scheduled Personal Property (All Forms)... 4 HO-63 Fine Arts Breakage (All Forms)... 5 HO-66 - Scheduled Personal Property - Named Perils (All Forms)...6 HO-68 Personal Property Coverage Exclusion (HO-3 Only)... 7 HO-75 Animal Liability (All Forms)... 8 HO-82 Personal Injury (All Forms)... 8 HO-87 Dwelling Under Construction Special Coverage (HO-3 Only)... 8 HO-94 Windstorm, Hurricane Windstorm, Or Hail Exclusion (All Forms)... 9 HO Golf Cart Coverage (All Forms)... 9 HO-149 Screened Enclosures Windstorm Or Hurricane Windstorm (HO-6 Only)...9 HO Alarm Or Fire Protection System (All Forms)... 9 HO Wind Or Hurricane Windstorm Loss Mitigation (All Forms)...10 HO Building Ordinance Or Law (HO-6 Only) HO Building Ordinance Or Law Coverage (HO-3 Only)...10 HO Extended Replacement Cost (HO-3 Only) HO Personal Property Replacement Cost (HO-3 Only)...12 HO Personal Property Replacement Cost (HO-6 Only)...12 HO-363 Sinkhole Coverage (HO-3 Only) HO-366 Sinkhole Coverage (HO-6 Only) HO-373 Catastrophic Ground Cover Collapse Coverage (HO-3 Only)...12 HO-376 Catastrophic Ground Cover Collapse Coverage (HO-6 Only)...12 HO-401 Deluxe Homeowners HO-403 Ultra Homeowners HO Increased Limit On Mold, Fungus, Dry Rot Or Bacteria Coverage (Part I Property Coverages) (All Forms) AUTOMOBILE RULE SECTION... 1 Rule 1 Private Passenger Automobile Defined... 1 Rule 2 Automobile Definitions... 1 Rule 3 Driver Classification... 2 Additional Vehicle Classification Factor... 2 Driver Assignment... 2 Rule 4 Miscellaneous Classification Factors... 2 Annual Mileage /1/07 NB TOC- 2 FL 11/1/07 RB

3 AUTO CLUB INSURANCE COMPANY OF Principal Operator, Occasional Youthful Operator, and Student Away Factor... 2 Vehicle Use Factor... 3 Multi-Car Factor... 3 Vehicle Driver Matrix (Per Vehicle)... 3 Rule 5 Safe Driver Insurance Plan (SDIP)... 3 Violations... 4 Accidents... 4 Rule 6 Accident Forgiveness... 6 Rule 7 Inexperienced Operator... 6 Rule 8 Insurance Score Procedures... 6 Rule 9 Discounts... 6 Group Association Discount... 6 AAA Membership... 6 Employee Group Discount... 6 Good Student Discount... 7 Driver Training Discount... 7 Mature Operator Motor Vehicle Accident Prevention Course Discount...9 Vehicles Equipped With Factory Installed Air Bags... 9 Vehicles Equipped With Factory Installed Anti-Lock Brakes... 9 Vehicles Equipped With Anti-Theft Device or Vehicle Recovery Systems...10 Rule 10 Coverage Limits Available Uninsured Motorists Coverage Damage To Your Auto Coverage Personal Injury Protection Rule 11 Certified Risks Financial Responsibility Law Rule 12 Additional Coverages Additional Equipment Rental Reimbursement Rule 13 Liability Symbol Rule 14 Physical Damage Symbols Rule 15 Named Driver Exclusion Surcharge ADDITIONAL COVERAGES SECTION... 1 AUTO ENDORSEMENTS... 1 Additional Interest Endorsement... 1 Auto Loan / Lease Payoff Coverage Endorsement... 1 Auto Loss Payable Endorsement and Certificate of Insurance (Designated Vehicle)... 1 Auto Loss Payable Endorsement and Certificate of Insurance (Stated Equipment)... 1 Collision Deductible Waiver Endorsement... 1 Exclusion of Named Driver Endorsement... 2 Leased Auto Endorsement (Certificate of Insurance)... 2 Leased Auto Endorsement (Auto Loss Payable Endorsement and Certificate of Insurance)... 2 Named Non-Owner Coverage Endorsement... 2 Repair or Replacement Coverage Endorsement... 2 HOMEOWNERS RATES SECTION... 1 Non Hurricane Rating... 1 Base Rates... 1 Non Hurricane Rating Factors... 2 Non Hurricane Protection Class Factors... 3 Non Hurricane HO3 Amount of Insurance... 4 Non Hurricane HO6 Rating Factor Groups... 5 Non Hurricane Deductible Factors... 6 Non Hurricane Underwriting Tier Categories... 7 Non Hurricane Protective Device Discount Factor Groups... 8 Non Hurricane Age / Renovated Home and Condo Factors... 9 Non Hurricane Insurance Score Factors Non Hurricane Home Experience Rating Plan /1/07 NB TOC- 3 FL 11/1/07 RB

4 AUTO CLUB INSURANCE COMPANY OF Non Hurricane Other Rating Factors Non Hurricane Other Coverage Factors Hurricane Base Rates Hurricane Deductible & Construction Factors Hurricane Mitigation Rating Factors Building Code Effectiveness Grading Building Code Effectiveness Grading Cont Hurricane Other Coverages AUTOMOBILE RATING SECTION... 1 Automobile base rates and expense fees... 1 Single Female Classification Codes... 3 Married Female Classification Codes... 5 Single Male Classification Codes... 7 Married Male Classification Codes... 9 Annual Mileage Factors (Per Vehicle) Operator Type Vehicle Use Multi-car Vehicle Driver Matrix Violations Surcharge Factors At-Fault Accident Surcharges - Mature Driver Age At-Fault Accident Surcharges - All Other Drivers Inexperienced Operator Surcharge Factors Insurance Score Factors Underwriting Level Factors Increased Limit Factors Bodily Injury Liability Increased Limits Property Damage Liability Increased Limits Uninsured Motorist Increased Limits Stacked and Unstacked Medical Payments Increased Limits Personal Injury Protection Factors PIP Deductible Amount Named Insured Only Named Insured & Dependent Resident Relatives Additional Personal Injury Protection Extended Personal Injury Protection Physical Damage Deductible Factors Additional Equipment Coverage Rental Reimbursement Coverage Liability Symbol Vehicle Rating Model Year Factors Model Years 1990 and Subsequent Physical Damage Symbol Factors Model Years 1989 and Prior Physical Damage Symbol Factors Other Rating Factors Group Discount Factor RATING LOGIC SECTION... 1 Non Hurricane Rating... 1 Hurricane Rating... 2 Automobile Rating Logic... 4 Package Rate Logic... 5 TERRITORY SECTION... 1 Homeowners Territories by Zip Code... 1 Auto Territories by Zip Code /1/07 NB TOC- 4 FL 11/1/07 RB

5 Package Underwriting Guidelines General Guidelines AUTO CLUB INSURANCE COMPANY OF PACKAGE UNDERWRITING SECTION 1. These guidelines will not be applied in any manner which conflicts with the insurance laws or regulations of the state. 2. Referrals may be accepted and exceptions may be made to these guidelines at the discretion of the Company. Submit referrals prior to binding. 3. Although minimum requirements may be met, each applicant/named insured will be evaluated based on sound underwriting judgment. 4. These guidelines will assist you in identifying risks that are eligible for our program. 5. Named insured(s) must have an insurable interest in all listed vehicles as well as the residence premises to be eligible for the package policy. 6. All Package Underwriting Guidelines, Homeowners Underwriting Guidelines, and Automobile Underwriting Guidelines apply to both new business and renewals unless specifically stated otherwise. 06/1/07 NB UW- 1 FL 06/1/07 RB

6 Homeowners Underwriting Guidelines Unacceptable Risks AUTO CLUB INSURANCE COMPANY OF HOMEOWNERS UNDERWRITING SECTION 1. Residence premises that present risk of significant loss under the liability portion of the policy including exposures such as, but not limited to: a. Outdoor items posing a potential attractive nuisance exposure: trampolines, skateboard or bicycle ramps, jumps, rails, etc. b. Unfenced swimming pools/spas or fenced/enclosed pools/spas without a locking gate/door or locking pool cover. c. Swimming pools equipped with a slide or diving board. d. Broken, sagging or unsupported sidewalk, steps or stairs including missing railings. 2. Residence premises and additional structures that exhibit deteriorating condition indicating lack of care and poor maintenance. 3. Residence premises with no central source of heat or primary source of heat is from: a. Wood or coal stoves. b. Converted coal furnace. c. Kerosene heater. d. Electric space heater. e. Wood pellet or coal burning stove. f. Any supplemental heat source installed by someone other than a professional contractor. 4. Residence premises or farm property where farming is the occupation of the insured and the agricultural products produced are not incidental to the occupancy of the dwelling or principally grown for home consumption. 5. Residence premises or farm property where ranching is: a. The occupation of the insured. b. The livestock is not leased or rented to others. c. The livestock is not raised for use by the insured or for the purpose of consumption. 6. Residence premises of the following types: a. Two or more family dwellings. b. Mobile, manufactured, modular or log home. c. Non-site built homes. d. Travel trailers and other camping type trailers. e. Commercial or mercantile buildings including those that have been converted for residential purposes. f. Originally built for other than dwelling occupancy or currently used for other than private residence. 7. Risks with an effective date more than 60 days in the future (New Business Guideline Only). 8. Applicant currently owns a home or condo that is uninsured. 9. Any risk without installed smoke detectors on all floors & deadbolts locks. 10. Residence premises not on a continuous or restrained foundation including structures on poles, pilings, blocks or rely solely on gravity and frictional forces for resistance to uplift or lateral loads. 11. Risks with prior sinkhole activity or indicating exposure to sinkhole activity on the subject property (New Business Guideline Only). 12. Residence premise is vacant, unoccupied or for sale. Exception: A new purchase expected to be owner-occupied within 30 days from policy inception. 13. Residence premise is not owner occupied or is rented out for any period of time. 14. Residence premise is located outside of Florida. 15. Residence premise is occupied by 3 or more unrelated individuals. 16. Any resident with a prior felony conviction. 17. Risks including the peril of wind located in areas eligible for CPIC HRA. 18. Risks within 1,500 feet from the high water mark in Martin County. 19. Risks with 3 or more claims in the past 60 months for the applicant and subject property combined. For renewal business only, act of God claims will not be considered unless there is demonstration that insured has failed to take action to prevent a recurrence of damage. 06/1/07 NB UW- 2 FL 06/1/07 RB

7 Referral Risks AUTO CLUB INSURANCE COMPANY OF 1. Any Named Insured with a foreclosure, repossession, or bankruptcy in the past 60 months. 2. Any Named Insured previously declined, cancelled or non-renewed coverage for underwriting reasons in the past 60 months (No referral is necessary if non-renewal was a result of a reduction in hurricane exposure). 3. Business is conducted on the premises. 4. Residence premises under construction or renovation and date of completion is in excess of 6 months of the policy effective date. 5. Residence premises $500,000 and over with no central station fire & burglar alarm. 6. Risks with 2 claims in the past 60 months for the applicant and subject property combined. 7. Residence premise is located on more than 10 acres. 8. Applicant has a private mortgage or more than 2 mortgages. 9. Residence premise is in an ISO Protection Class Secondary or seasonal residences. Dwelling Criteria 1. Roof Must be in good condition and replaced in the past 15 years for shingles and 25 years for slate or tile coverings. Flat roofs are ineligible. 2. Heating System Must be in good condition. If a burner is present, it must have been replaced in the past 15 years. 3. Plumbing Must be in good condition with no leaks or history of leaks. Interior water supply pipes must be copper or PVC. No polybutylene plumbing. 4. Electrical Must be in good condition with > 100 amp electrical service and 100% protection by circuit breakers. No knob and tube or aluminum wiring. Deductible Requirements 1. All Other Perils Deductible Coverage Amt Minimum Deductible All $ Hurricane Deductible Coverage Amount Hurricane Deductible $500 2% 5% 10% 0 - $4,999 OK Ineligible Ineligible Ineligible $5,000 - $9,999 OK Ineligible Ineligible OK $10,000 - $24,999 OK Ineligible OK OK $25,000 - $99,999 OK OK OK OK $100,000 and above Ineligible OK OK OK The above amounts are for Coverage A for an HO-3 policy and Coverage C for an HO-6 policy. In accordance with Florida Statutes, risks with limits of $100,000-$249,999 having a 2% minimum hurricane deductible will not be non-renewed for one policy term for the purpose of reducing hurricane exposure. 06/1/07 NB UW- 3 FL 06/1/07 RB

8 AUTO CLUB INSURANCE COMPANY OF Inspection Requirements 1. Inspection means the examination and review of the interior and exterior of the residence premise, the additional structures, and adjacent exposures, to determine condition and acceptability. Inspections are to be sufficiently thorough to ascertain: a. The risk meets all underwriting standards b. All rating discount/surcharge factors (including hurricane mitigation features) c. Insurance to value 2. All inspections must include a completed Property Inspection Form and required photographs 3. Inspections may be required on any risk. Coverage Amounts 1. Insurance to Value a. For HO-3 policies, the residence and additional structures must be insured 100% to replacement cost and must be verified. b. For HO-6 policies, the personal property must be insured 100% to replacement cost and must be verified. 2. Maximum Values a. For HO-3 policies, Coverage A greater than $750,000 must be referred b. For HO-6 policies, Coverage A+C greater than $500,000 must be referred c. For HO-3 and HO-6 policies, liability coverage in excess of $300,000 must be referred Residence Type Other 1. Residence premises must be the applicants primary residence which is owner occupied at least 9 months per year and are not rented out for any period of time 1. Flood insurance is required on all risks located in flood zones A & V unless the applicant or insured sign the Flood Insurance Rejection Form. 2. Wind insurance is required through Citizens HRA for those risks written excluding the peril of wind that are located within the Citizens HRA territory, unless a dated, handwritten statement, signed by all named insureds on the policy is provided affirming that windstorm coverage is to be excluded. When windstorm coverage is written through the Citizens HRA the Coverage A limit must match the Company s insured limits. 3. All risks written including the peril of wind must have acceptable hurricane loss exposure rating prior to binding or renewal. 07/1/07 NB UW- 4 FL 07/1/07 RB

9 AUTO CLUB INSURANCE COMPANY OF Non-Hurricane Underwriting Levels 1. Residency History The risk will be underwritten based on length of residency at current and prior residence premises. See chart below. 2. Number of Occupants The risk will be underwritten based on the number of occupants. 3. Prior Claims Not Subject to Experience Rating The risk will be underwritten based on all claims that have occurred within 60 months of the effective date of an application for insurance or renewal policy. Claims subject to experience rating, Act of God claims, and catastrophe claims are not included in the calculation of the Non- Hurricane Underwriting Level. # Of Non Act of God Claims Not Subject to Experience Rating Residency History # of Occupants Category 1 Any A B C Category 2 Any J K L Category 3 Any S T U Residency History Determination Only count years of residency as an owner Length at current and prior residence premises of 5 or more years Category 1 Length at current and prior residence premises of less than 5 years but greater than none No years at current residence premises and not an owner at prior residence premises Category 2 Category 3 06/1/07 NB UW- 5 FL 06/1/07 RB

10 AUTO CLUB INSURANCE COMPANY OF AUTOMOBILE UNDERWRITING SECTION New Business & Renewals General Guidelines 1. Count all incidents and accidents in the past 36 months for all operators in household unless driver is excluded. 2. If an operator is cited for a violation in conjunction with an accident, points will be assigned for the item with the higher surcharge value. Vehicle Guidelines 1. Motorcycles, scooters, ATV s, mopeds, dune buggies, gray market vehicles and vans or trucks with a rated load capacity of one ton or greater are ineligible. 2. Vehicles regularly used by individuals other than the named insured and resident household members listed on the policy are ineligible. 3. Any vehicle modified or customized for use in any competition, any vehicle with a modified suspension that jumps, rocks, or bounces, any vehicle classified as a kit car, any vehicle leased or rented to others by the applicant/named insured, any flat bed, stake or modified trucks, step vans, panel or cutaway vans are ineligible. 4. Vehicles used for pickup or delivery of goods, limousines or taxi service, any vehicle for hire, emergency service or any commercial use is ineligible. 5. Vehicles titled in the name of a business, partnership or DBA are ineligible. 6. Vehicles with Annual Mileage greater than 40,000 miles are ineligible. 7. All vehicles on the policy must be titled/co-titled to the named insured on the policy. 8. All vehicles must be garaged at the household location, unless the vehicle is operated by a student away at school within the State of Florida. 9. All vehicles must be garaged in Florida for at least 9 months. Exception: If an insured s permanent residence and vehicle registration remain in Florida, but a vehicle is garaged out of state for more than three months for military service, the vehicle may be considered eligible. 10. Salvage vehicles, vehicles with a certificate of destruction, or vehicles previously declared a total loss are ineligible. 11. Vehicles with a cost new of $100,000 or greater are ineligible. 12. Physical Damage Coverages are not available on vehicles 20 years and older. 13. Any vehicle used for artisan purposes is ineligible. 14. Vehicles 25 years and older are ineligible. Policy Guidelines 1. Any risk that does not provide proof of 6 months continuous prior insurance coverage is ineligible. Acceptable documentation is a present or future term Declaration or ID Card. 2. Policies with an Estate, Receivership, Corporation, Partnership as Named Insured, Named Non-owner, or outside premium financed policies are ineligible. 3. A risk having a single car with 3 or more incidents is ineligible. Incidents include all at-fault accidents, chargeable violations (per Auto Rule 5), and comprehensive claims occurring in the past 36 months. Incidents also include all waived violations (per Auto Rule 5) and not-at-fault accidents that have occurred 1) within the past 36 months and 2) prior to the original new business effective date of the policy. 4. A risk having a single car with more than 1 serious violation (as defined in Auto Rule 5) is ineligible. 5. A risk having a single car with a major violation (as defined in Auto Rule 5) is ineligible. 6. A risk having multiple cars with 5 or more incidents is ineligible. Incidents include all at-fault accidents, chargeable violations (per Auto Rule 5), and comprehensive claims occurring in the past 36 months. Incidents also include all waived violations (per Auto Rule 5) and not-at-fault accidents that have occurred 1) within the past 36 months and 2) prior to the original new business effective date of the policy. 7. A risk having multiple cars with more than one serious or more than one major violations or a combination of one serious plus one major violation is ineligible. 8. Any policy with a criminal violation of Ch 316, F.S. not listed in the Safe Driver Insurance Plan (SDIP) is ineligible. 9. Any risk with uninsured vehicles in the household is ineligible. 06/1/07 NB UW- 6 FL 06/1/07 RB

11 AUTO CLUB INSURANCE COMPANY OF Driver Guidelines (Applicable to Non-Excluded Drivers) 1. Any driver who has been convicted of a DUI or has plead nolo contendre to a DUI within the last 5 years is ineligible. 2. Any driver who has had auto insurance refused, canceled, or non-renewed for cause in the past 3 years is ineligible. All attributes of the application will be considered in the eligibility determination process. Coverage will not be declined solely on the fact that coverage was denied by another carrier. 3. Any driver with a license suspension or revocation in the last five years is ineligible. 4. Any driver with an invalid, unverifiable, international, foreign or currently suspended driver s license is ineligible. Exception: A Canadian License is not subject to this rule and is acceptable. 5. Any driver with a physical or mental condition which substantially impairs their mechanically assisted driving ability is ineligible. 6. Any driver with a prior felony conviction is ineligible. 7. All drivers must be permanent Florida residents who reside a minimum of 6 months in the state of Florida. 8. Any driver with 3 incidents is ineligible. Ineligible Vehicles List Alfa Romeo ALL Travel Trailers ALL American General ALL Lamborghini ALL Aston Martin ALL Lotus ALL Avanti ALL Maserati ALL Bentley ALL Merkur XR4TI DeLorean ALL Opel Calibra Excalibur ALL Rolls Royce ALL Ferrari ALL Triumph ALL Classic Cars ALL Antique Cars ALL Stated Amount - ALL Motor Homes ALL Miscellaneous Type Vehicles ALL Vans and Trucks One Ton and Greater Kit Cars - ALL Replicas - ALL Vehicles with cost new of $100,000 or greater Vehicles without an ISO symbol (new model year vehicles that do not yet have an ISO symbol, but which have a prior year symbol are eligible) 06/1/07 NB UW- 7 FL 06/1/07 RB

12 AUTO CLUB INSURANCE COMPANY OF Automobile Underwriting Levels 1. Prior Bodily Injury Limit - The risk will be scored on the prior Bodily Injury Limits applicable to the prior policy term. If the prior policy has Combined Single Limits (CSL) the next highest BI Limits will be considered as the Prior BI Limit for the purposes of this rule. 2. Prior Incidents - Prior Incidents include all at-fault accidents and chargeable violations (per Auto Rule 5) occurring in the past 36 months to which SDIP points do not apply. Prior Incidents also include all waived violations (per Auto Rule 5), not-at-fault accidents, and comprehensive claims that have occurred 1) within the past 36 months and 2) prior to the original new business effective date of the policy. This factor applies to all Prior Incidents in the household, except for those attributable to excluded operators. Prior Bodily Injury Limit Prior Incidents (Not Subject to SDIP) Underwriting Level 0 0 J 0 1 K 0 2+ L 10/20 0 G 10/20 1 H 10/20 2+ I 15/30 0 D 15/30 1 E 15/30 2+ F 50/100 0 A 50/100 1 B 50/ C In accordance with F.S (1) (o), a policy will not be moved to a higher priced level upon renewal: Solely because the insured was involved in a motor vehicle accident unless the insurer s file contains information from which the insurer in good faith determines that the insured was substantially at fault in the accident. Solely because the insured committed a non-criminal traffic infraction as described in s unless: the infraction is a second infraction committed within an 18-month period, a third or subsequent infraction committed within a 36-month period, or a violation of s , when such violation is a result of exceeding the lawful speed limit by more than 15 miles per hour. 06/1/07 NB UW- 8 FL 06/1/07 RB

13 AUTO CLUB INSURANCE COMPANY OF PACKAGE RULE SECTION Rule 1 Policy Term The policy term is one year. All premiums contained in the Premium Section of this manual are annual premiums. Rule 2 Eligibility See the Underwriting Sections of this manual for homeowner and auto eligibility rules. Rule 3 Hurricane Binding Restrictions Tropical Storm Warning or Hurricane Watch No new business or policy changes to increase coverage including lowering deductibles. Restrictions apply to any county under a National Weather Service Tropical Storm Warning or Hurricane Watch advisory. Hurricane Warning No new business or policy changes to increase coverage including lowering deductibles. Restrictions apply to all counties when a National Weather Service Hurricane Warning is issued for any part of the state. This restriction of binding continues as long as the Watch or Warning is in effect and ends when it is lifted by the NWS for the county. For those counties under a Hurricane Warning, the restriction of binding continues as along as the Warning is in effect and ends 72 hours after the last Warning is terminated in the state by the NWS. For those counties NOT under a Hurricane Warning, the restriction of binding continues as long as the Warning is in effect and ends after the last Warning is terminated in the state by the NWS. Rule 4 Mandatory Coverages HO3 - It is mandatory that insurance be written for all coverages provided under both Part I Property (coverages A, B, C, and D) and Part II Liability (coverages E and F). HO6 - It is mandatory that insurance be written for all coverages provided under both Part I Property (coverages A, C, and D) and Part II Liability (coverages E and F). Rule 5 Cancellations A. General Policies can be cancelled at the request of the Named Insured. Written confirmation must be obtained from the Named Insured to document the cancellation request. This should be in the form of a letter requesting cancellation, showing the requested effective date, the reason and the signature of the Named Insured(s). B. Mandatory Coverages It is not permissible to cancel any of the mandatory coverages in the policy unless the entire policy is cancelled. C. Date Cancellation date will be the date requested if it is less than 7 days prior to the date the request was received. If it is the date requested is greater than 7 days prior to the date the request was received, the cancellation date will be the date received D. Rewrite Cancellation requirement C does not apply if the policy is being cancelled and rewritten with our company. E. Pro Rata Rule Returned premium amount, if applicable, will be calculated on a pro-rata basis. 06/1/07 NB Package Rules- 1 FL 06/1/07 RB

14 Rule 6 Changes AUTO CLUB INSURANCE COMPANY OF A. General Coverages or limits of the policy may be changed during the term of the policy subject to underwriting guidelines. B. Rates If a new coverage or endorsement is added, the rates charged will be those in effect at the inception of the policy term. If existing coverages are amended, the rates charged will be those in effect at the inception of the policy term. C. Pro Rata Rule If insurance is increased, cancelled or reduced, the additional or return premium shall be computed on a pro- rata basis. Rule 7 Insurance Score Procedures The Insurance Score ordering, use, and disclosure procedures will be in accordance with FAC Rule A. An Insurance Score will be obtained on the first two Named Insureds as listed in the Declaration page. If only one Named Insured is listed on the Declaration page and the Named Insured s spouse is a resident of the same household, an Insurance Score will be obtained for the Named Insured and Spouse. The best score obtained will be used for the policy. B. The named insured shall be advised by the agent prior to the Insurance Score being ordered that the score is a part of the rating process and an accurate rate cannot be determined until an Insurance Score has been obtained. 1. In the quoting system just prior to ordering the Insurance Score, the system will display the following message on the quote screen: Please advise the customer of the following: As part of the underwriting process, we will be obtaining credit information. We will not disclose this information unless necessary. 2. The agent will also distribute the following disclosure which will be printed with the application: In compliance with the Fair Credit Reporting Act we are informing you that your policy rate is based in part on information contained in a consumer credit report obtained from a consumer credit reporting agency. The amount that you are charged for your policy is based on rates we have on file with the Department of Insurance in your state. The consumer credit reporting agency will not be able to tell you how your rate is determined, but you may wish to review the information that they supply us. You may obtain a free copy of the consumer credit report from ChoicePoint, the consumer credit reporting agency, if you contact them no later than 60 days after receipt of this notification. You have the right to dispute, with the consumer credit reporting agency, the accuracy or completeness of any information contained in the consumer credit report. ChoicePoint can be contacted by telephone or mail at: Choice Point Customer Service Center P. O. Box Atlanta, GA Please be advised that you also have the right to request that we re-evaluate the information we obtain from this consumer credit reporting agency to determine whether you now qualify for a lower premium. You may make this request by contacting the Customer Response Unit at We will not receive in the application process any information contained in the driver s financial history or credit report. The Insurance Score is the only information provided in this instance by Choice Point Inc. and is ordered, received, and used exclusively by Auto Club Insurance Company of Florida. Agents cannot request this information. Only the applicant/named insured may contact the credit bureau. 06/1/07 NB Package Rules- 2 FL 06/1/07 RB

15 AUTO CLUB INSURANCE COMPANY OF 3. The agent shall ensure that the applicant reads and signs the Statement of Applicant section on the application which contains an outline of the Insurance Score. 4. At the time of policy inception if the insured s Insurance Score is not Level 1 the insured will receive the notification in conjunction with the 2003 revision to Florida Statute This notification outlines Auto Club Insurance Company of Florida commitment to providing fair and competitive pricing to all customers through the use of credit, driving and claims history. It continues on to outline how the insured can obtain a copy of their credit report from consumer credit agency and the four reasons which were the primary influences. Rule 8 Insurance Score Renewal Review The company will order a new insurance score every 24 consecutive months insured with the company. If the new insurance score results in a lower rate, the policy will be moved to the new level. If the new insurance score results in a higher rate, the insurance score will not be changed. At the insured s request, we will run new insurance scores which will be applied at the next renewal term. If the new insurance score results in a lower rate, the policy will be moved to the new level. If the new insurance score results in a higher rate, the insurance score will not be changed. Rule 9 Underwriting Level Renewal Review Underwriting levels for Non-Hurricane and Automobile will be reviewed after every 12 consecutive months insured with the company. The Non-Hurricane Underwriting Level will use the current residency history and occupancy count for the policy, as well as the most recent 60 month period of claims history. If the new Non-Hurricane Underwriting Level results in a lower rate, the policy will be moved to the new level as long as there were no claims that occurred during the previous 12 month period. If the new Non-Hurricane Underwriting Level results in a higher rate the policy will be moved to the new level. The Automobile Underwriting Level limits used for this evaluation are based on the limits currently carried on the policy. If the new Automobile Underwriting Level results in a lower rate, the policy will be moved to the new level as long as there were no incidents (including At-fault accidents or, chargeable violations per Auto Rule 5) that occurred during the previous 12 month period including forgiven accidents. If the new Automobile Underwriting Level results in a higher rate the policy will be moved to the new level. Rule 10 Renewals A policy may be continued for successive periods subject to underwriting requirements and upon payment of the required premium. The continuation premium will be based upon the premium in effect on the renewal date. The current editions of the applicable forms and endorsements must be made a part of the policy. At renewal, the Coverage A limit for HO-3 and Coverage A and C limits for HO-6 may be adjusted using an inflation factor or the valuation tool as determined by the company. The company will make adjustments for any improvements or additions subject to notification by the insured. Rule 11 Group Association Discounts Members of eligible groups will receive a premium discount. Eligible groups are listed in the rate pages and discounts apply to coverages listed in the rating logic. 07/07/08 NB Package Rules- 3 FL 07/07/08 RB

16 AUTO CLUB INSURANCE COMPANY OF Rule 12 Whole Dollar Premium The premium for each exposure shall be rounded to the nearest whole dollar, separately for each coverage provided by the policy. A premium involving $.50 or more shall be rounded to the next higher whole dollar. This procedure shall apply to all interim premium adjustments, including endorsements or cancellations. 06/1/07 NB Package Rules- 4 FL 06/1/07 RB

17 Rule 13 Payment Options Bill Plan AUTO CLUB INSURANCE COMPANY OF Home Escrow Billed? Auto Down Payment Home Down Payment # of New Business Installments # of Renewal Installments Service Fee per Installment Paid in Full w/ Escrow Yes 100.0% 100.0% N/A N/A N/a EFT w/ Escrow Yes 8.4% 100.0% $3 Installments w/ Escrow Yes 16.7% 100.0% $3 Paid in Full No 100.0% 100.0% N/A N/A N/A EFT w/ Home PIF No 8.4% 100.0% $3 Installments w/ Home PIF No 16.7% 100.0% $3 EFT No 8.4% 8.4% $3 Installments No 16.7% 16.7% $3 *If new policy replacing existing coverage, the company will bill the mortgagee for the Home Down Payment if business is bound 30 days prior to inception of the new policy. The Automobile down payment is due with application. Non-Sufficient Funds In the event an instrument of payment for the premium fails to be honored for any reason by the institution upon which it is drawn, a $15 NSF processing fee will be charged as permitted under F. S If the dishonored check represents the initial premium payment the contract shall be void ab initio unless the nonpayment is cured within the earlier of 5 days after actual notice by certified mail is received by the applicant or 15 days after notice is sent to the applicant by certified or registered mail. If the contract is void any premium payment received from a third party will be refunded in full. Any replacement payment must be by cash or certified funds. Late Fee Charges /Grace Period The late fee is $10. A late fee will be generated whenever a past due notice is generated. Late fees are not applicable to underpayments. Rule 14 Payment Plan Changes Payment plans may be made at the insureds request. The insured must be in good standing at the time of the request and all policy billing must be current. Rule 15 Emergency Management Preparedness And Assistance Trust Fund A fully earned annual surcharge of two dollars ($2) shall be imposed on every policy as required by Florida. Producer commissions are not payable on this assessment. This fee applies to the Non-Hurricane portion of the Package Policy premium. Rule 16 Florida Insurance Guaranty Association (FIGA) Policy Assessment A. Florida law allows that under certain circumstances insurers may levy a specified surcharge on policies to recover assessments by the Florida Insurance Guaranty Association. B. In the event such a surcharge is mandated, the appropriate factor will be applied to the premium computation in the manner specified in the Florida Statutes. FIGA Recoupment Factor: 06/1/07 NB Package Rules- 5 FL 06/1/07 RB

18 AUTO CLUB INSURANCE COMPANY OF C. Producer commissions are not payable on this assessment. D. In the event of policy cancellation, return premium on this assessment shall be prorated. E. This fee applies to the Non-Hurricane, Hurricane and Automobile portions of the Package Policy premium. Rule 17 Citizen Property Insurance Company (CPIC) Policy Assessment A. Florida law allows that under certain circumstances insurers may levy a specified surcharge on policies to recover assessments by Citizen Property Insurance Company. B. In the event such a surcharge is mandated, the appropriate factor will be applied to the premium computation in the manner specified in the Florida Statutes. CPIC Recoupment Factor: C. Producer commissions are not payable on this assessment. D. In the event of policy cancellation, return premium on this assessment shall be prorated. E. This fee applies to the Non-Hurricane and Hurricane portions of the Package Policy premium. 06/1/07 NB Package Rules- 6 FL 06/1/07 RB

19 Rule 1 Description of Policy Forms AUTO CLUB INSURANCE COMPANY OF HOMEOWNER RULE SECTION HO3 Homeowners This form may be issued in the name of the owner-occupant of a single family dwelling used primarily for residential purposes. The policy settles covered losses to buildings for replacement cost and to structures other than buildings, screened enclosures, and personal property for actual cash value. HO6 Condominium Unit Owners This form may be issued in the name of the owner-occupant of a private condominium unit used primarily for residential purposes. The policy settles covered losses to building property that are not the responsibility of the condominium associations for replacement cost and to structures other than buildings, screened enclosures, and personal property for actual cash value. Note: Replacement cost coverage on personal property may be purchased on Homeowners and Condominium Unit Owners risks. Rule 2 Description Of Coverages The following is a general description of the coverages provided by the individual Homeowners Policy Forms. The policy and forms should be consulted for exact contract language. Property Coverages For Form HO-3, the limit of liability for Coverage B, Coverage C, and Coverage D may be increased. Form HO-3 Coverage Form HO-6 Basic Deluxe Ultra Dwelling (HO-3) or Building Property (HO-6) Amount (A) Refer to Coverage Amount Rule $1,000 Other Structures (B) 10% of Coverage A N/A Personal Property (C) Loss of Use (D) 50% of Coverage A 10% of Coverage A 60% of Coverage A 15% of Coverage A 70% of Coverage A 20% of Coverage A For Form HO-6, the limit of liability for Coverage A and Coverage D may be increased. Coverage A Dwelling A single family owner occupied residence premises. Coverage B Other Structures Other structures located on the residence premises. Refer to Coverage Amount Rule 30% of Coverage C Coverage C - Personal Property Personal Property and/or contents contained in or around the residence premises. Coverage D Loss of Use Increase in living expenses as a result of loss of use of the residence premises. 06/1/07 NB Homeowners Rules- 1 FL 06/1/07 RB

20 AUTO CLUB INSURANCE COMPANY OF Coverages* Form HO-3 Basic Deluxe Ultra Form HO-6 A Dwelling (HO-3) Building Property (HO-6) Open Perils Open Perils Open Perils Broad Named Perils B Other Structures Open Perils Open Perils Open Perils N/A C Personal Property Broad Named Perils Broad Named Perils Broad Named Perils Broad Named Perils D Loss of Use Varies based on type of property damaged** Broad Named Perils * Coverages are subject to policy limitations and exclusions ** Real property - open perils; Personal property - broad named perils Open Perils Insures property against risks of accidental direct physical loss that are not specifically excluded. Broad Named Perils Insures property against loss caused by perils named below: Fire or lightning Windstorm or hail Explosion Riot or civil commotion Aircraft Vehicles Sudden and accidental damage from smoke Vandalism or malicious mischief Theft Falling objects Weight of ice, snow, or sleet Fragments of broken glass Volcanic eruption other than loss caused by earthquake, land shock waves, or tremors Sudden and accidental discharge or overflow of water or steam from within a plumbing, heating, air conditioning, or automatic fire protective sprinkler system, or from within a household appliance Sudden and accidental tearing apart, cracking, burning, or bulging of a heating, steam or hot water system, an air conditioning, or automatic fire protective sprinkler system or an appliance for heating water Freezing of a plumbing, heating, air conditioning, or automatic fire protective sprinkler system, or household appliance Sudden and accidental changes in the electric power supply to electrical appliances, devices, fixtures and wiring 06/1/07 NB Homeowners Rules- 2 FL 06/1/07 RB

21 AUTO CLUB INSURANCE COMPANY OF Liability Coverages Coverage Personal Liability (E) $100,000 $200,000 $300,000 $100,000 Medical Payments to Others (F) $1,000 $2,000 $5,000 $1,000 Note: Coverage E limits apply on an occurrence basis and Coverage F limits on an each person basis. Coverage E Personal Liability Coverage - Covers payment of all sums up to the selected limit, which the insured becomes legally obligated to pay as damages because of bodily injury and property damage arising out of any insured s premises or personal activities. Coverage F - Medical Payments to Others - Covers medical expenses, up to the selected limit, of persons other than an insured who sustain accidental bodily injury arising out of the insured s premises or personal activities. Rule 3 Other Coverages Form HO-3 Basic Deluxe Ultra The following is a brief description of Other Coverages included in the policy. Form HO-6 Removal of Fallen Trees Coverage for reasonable expenses incurred to remove fallen trees from the premises following a loss which damages covered property and results from a covered peril. Removal of Debris - Coverage for the reasonable expenses incurred to remove debris of covered property from the premises following a loss from a covered peril. Coverage provides an additional 5% of the limit of liability for the damaged property. Refrigerated Food Spoilage Coverage up to $500, in the aggregate per policy period, for damage to or spoilage of perishable foods following a loss from an interruption of power or mechanical breakdown of the refrigerator or freezer. A special deductible of $100 applies. Fire Department Service Charges Coverage up to $500 for coverage for service charges incurred when a secondary responding fire department is called to protect covered property from a covered peril. Credit Card, Fund Transfer Card, Forgery and Counterfeit Money Coverage up to $500 for the theft or unauthorized use of an insured s credit card or fund transfer card, forgery or alteration of an insured s check, the acceptance of counterfeit US or Canadian paper money. Property Removed Coverage for insured property while being removed from premises endangered by a covered peril. The removed property is covered for up to 30 days for direct loss from any cause. Reasonable Emergency Measures - Coverage for the reasonable expenses incurred for necessary repairs made to protect covered property from additional damage following a loss caused by a covered peril. Trees, Shrubs and Other Plants Coverage up to 5% of the Coverage A (Dwelling) limit of liability for outdoor trees, shrubs, plants or lawns or $500 per item for loss to outdoor trees, shrubs, or plants at the residence premises for loss caused by specific perils. 06/1/07 NB Homeowners Rules- 3 FL 06/1/07 RB

22 AUTO CLUB INSURANCE COMPANY OF Collapse - Coverage for accidental direct physical loss to covered property, subject to the stated conditions and exclusions. Limited Mold, Fungus or Bacteria - Coverage up to an aggregate limit of $10,000 per policy period for remediation costs and loss of use if loss resulting from mold, fungus, wet rot, dry rot or bacteria ensues from a covered loss. Pollutants Coverage for covered property against accidental direct physical loss that ensues from the presence, release, discharge or dispersal of pollutants. The ensuing loss is only covered if it results from fire, smoke that is not from agricultural smudging or industrial operations, explosion, fragments of broken glass, or water damage not specifically excluded in the policy. The following is a brief description of coverages included in the policy that can be increased for an additional premium. See rate pages for premium determination. BUILDING PROPERTY COVERAGE - COVERAGE A INCREASED LIMITS Form HO-6 - The limit of liability for Building Property Coverage ($1,000 for direct physical loss) may be increased in increments of $1,000 for real property in the unit for which the owner(s) of the unit is responsible. Real property and the unit owners responsibilities are usually defined in the Association By-Laws. Prior Underwriting approval is required when coverage requests exceeds 20% of Coverage C OTHER STRUCTURES - RESIDENCE PREMISES - COVERAGE B INCREASED LIMITS Form HO-3 The limit of liability for Coverage B (Other Structures) on the residence premises may be increased above the 10% of the Coverage A (Dwelling) limit of liability included in the basic policy in increments of $1,000. Prior Underwriting approval is required when: coverage requests exceeds 20% of Coverage A (Dwelling) limit of liability; or applies to more than two detached structures. All Other Structures that are detached must be valued and described in detail. Examples of structures covered under Coverage B (Other Structures) include, but are not limited to: when attached to the dwelling, driveways; walkways; patios; awnings; screened enclosures; fences; and external walls that are not a part of the perimeter of the dwelling and not needed for the structural strength of the dwelling; detached garages, in-ground swimming pools, fences, permanently anchored satellite dishes and sheds that are permanently anchored. PERSONAL PROPERTY - COVERAGE C INCREASED LIMITS Form HO-3 - The limit of liability for Coverage C (Personal Property) may be increased in increments of $1,000. Prior Underwriting approval is required when coverage requests exceeds 85% of Coverage A (Dwelling) limit of liability. Note: The total limit of liability for Coverage C (Personal Property) may not exceed Coverage A (Dwelling) limit of liability. LOSS OF USE - COVERAGE D INCREASED LIMITS All Forms - The limit of liability for Coverage D (Loss of Use) may be increased in increments of $1,000. Prior underwriting approval is required for increased limits. Rule 4 Primary/Secondary/Seasonal Dwelling A primary dwelling or condominium is one that is your permanent residence and is occupied at least 9 months during any one (1) year period. 06/1/07 NB Homeowners Rules- 4 FL 06/1/07 RB

23 AUTO CLUB INSURANCE COMPANY OF A secondary dwelling or condominium is one that is not your permanent residence with no occupancy requirements. A seasonal dwelling or condominium is one with continuous un-occupancy of three (3) or more consecutive months during any one (1) year period. 06/1/07 NB Homeowners Rules- 5 FL 06/1/07 RB

24 AUTO CLUB INSURANCE COMPANY OF Rule 5 Assignment or Transfer A. Address Policies cannot be transferred to cover another residence premises. B. Insured Policies generally cannot be assigned or transferred from one insured to another. However, in the event of the named insured s death the policy may be transferred to the named insured s surviving spouse. Rule 6 Named Insured All Forms -The legal owner(s) of the property must be the Named Insured(s) on the policy. The name(s) on the declaration page should appear as shown on the deed. Exception: In the following cases, a legal owner will not be shown as a Named Insured on the policy: Non-Occupant Co-Owner Co-Owner Occupants of a Single Family Dwelling Non-Occupant Co-Owner(s) - A co-owner who is not an occupant of the dwelling should be added as an additional insured using the HO-41 Additional Interests endorsement. Co-Owner Occupants of a Single Family Dwelling - When a single family dwelling is occupied by co-owners, both homeowners should be listed as named insureds on the policy declarations. Co-Owner Non-Residents of a Single Family Dwelling The resident owner should be listed on the policy declarations and the other co-owner non-resident should be added to the policy as an additional insured using the HO-41 Additional Interests endorsement. Trusts - Trusts should be added to the policy as additional interest using the HO-41 Additional Interests endorsement. Trusts can not be considered as Named Insureds. Rule 7 Location The insured residence must be located in Florida. See the Territory Section of this manual for territory determination. Rule 8 Residence Address Form HO-3 -The residence premises must be accurately identified. In most instances the mailing address will accomplish this purpose. Rural Route and Box Number addresses are unacceptable. If the mailing address does not identify the residence location, then the legal description of the property, as it appears on the deed, must be provided. Form HO-6 - The residence premises must be accurately identified. Include the complex name and unit number if it is part of the residence address. Rule 9 Other Insurance Other insurance on the described residence premise or personal property is not permitted except insurance against perils not covered by the policy. Credit for existing insurance is not allowed. 06/1/07 NB Homeowners Rules- 6 FL 06/1/07 RB

25 AUTO CLUB INSURANCE COMPANY OF Rule 10 Premium Determination See the Rate Pages of this manual for premium determination, order of rate calculation and applicable discounts. All premiums shown on the policy and endorsements shall be rounded to the nearest dollar after each calculation. A premium of fifty cents ($.50) or more shall be rounded to the next higher dollar. Premium Interpolation When the desired coverage limit is less than the highest limit shown, interpolate the Amount of Insurance using the nearest limit above and below the desired limit. Example: $203,000 desired limit; the nearest limits are $200,000 and $225,000. For $200,000 the Amount of Insurance Factor is 1.388; for $225,000 the Amount of Insurance Factor is Figure the difference between the two Amount of Insurance Factors and divide by 25. This provides a factor per $1, / 25 = Take the factor per $1,000 and multiply by 3, add (the Amount of Insurance Factor for $200,000) x = The result, is the Amount of Insurance Factor for this example. Note: The factors shown in the above interpolation example are for illustration and are not necessarily the factors shown in the Amount of Insurance Factor Table of this manual. Rule 11 Construction Definitions Frame Masonry Masonry Veneer Reinforced Masonry Exterior walls are wood or other combustible construction, including wood ironclad, stucco on wood or plaster on combustible supports. Also includes aluminum or plaster siding over frame. Any structure that is more than 1/3 frame construction should be classified as Frame. Buildings where the exterior walls are constructed of masonry, non-combustible, or fire resistive materials such as adobe, brick, concrete, gypsum block, hollow concrete block, stone, tile or other non-combustible materials. Exterior walls of combustible construction veneered with brick, masonry, or stone. This should be rated as Frame. Masonry, non-combustible, or fire resistive construction where one of the following additional conditions exist: Roof deck has a minimum thickness of 2 inches with roof supports having a minimum dimension of 6 in; or Floors and roof constructed of 2 inches of masonry on steel supports or documented to be constructed of 22 gauge metal or heavier on steel supports; or Roof assembly is documented to have a UL wind uplift classification of 90 or equivalent. For Non-Hurricane Rating rate as Masonry. 06/1/07 NB Homeowners Rules- 7 FL 06/1/07 RB

26 AUTO CLUB INSURANCE COMPANY OF Rule 12 Protection Class The ISO system of designating a fire protection class is based upon an extensive evaluation of an area s water supply, delivery facilities and the local community or subscription fire department s ability to respond in an emergency. Use the ISO Public Protection Classifications to determine the fire protection class of incorporated towns, townships and fire districts. When classified areas are published with a single classification number, that classification number must be used in rating the dwelling. When classified areas are published with a split classification (e.g., 6/9), the classification number is determined as follows: If the address is within five road miles or less of a responding fire station, and within 1,000 feet of a hydrant, the first listed protection class (e.g., 6/9, class 6) will be assigned. If more than 1,000 feet and less than five road miles to a responding fire department, the second listed protection class (e.g. 6/9 class 9) will be assigned. Five or more road miles to responding fire station, will be assigned a protection class 10. Class 10 applies to all areas not listed. SUBSCRIPTION FIRE SERVICE AGENCIES - Some areas in the state may be served by a Subscription Fire Service Agency in addition to the tax-based primary responding fire department. If the insured has contracted with a subscription service as their primary responding department, a copy of the proof of payment or certificate of service will be required and the Subscription Fire Service Agency s Protection Class will be assigned. Without this required documentation, the tax-based department s protection class must be assigned. CHANGE IN PROTECTION CLASS - If there is a change in the protection class that affects the premium applicable to the dwelling, the premium will be adjusted at the next policy renewal. If the insured makes a specific request, the rate adjustment can be made effective the date of the protection class change. Rule 13 Mitigation Rating A. General A premium credit may be available if one or more of the following loss mitigation features or construction techniques exists: Roof Covering; Roof Deck Attachment; Roof-Wall Connection; Opening Protection; Roof Shape; or Secondary Water Resistance. Descriptions of the loss mitigation features listed above are outlined in Section C below and the rating factors are contained in the rate pages. B. Proof of Compliance The Company requires proof via a comprehensive wind mitigation inspection to substantiate the existence of loss mitigation features displayed in the Loss Mitigation Credit tables, except for: 1. Roof shape that is verifiable via an acceptable photograph 2. Storm shutters which are verifiable by sales or installation receipt or photos. ACICF will default loss mitigation features displayed in the Loss Mitigation Credit tables to values that return the least amount of credit. Proof to substantiate the existence of loss mitigation features will be required when values other than the defaults are selected, except roof shape that is verifiable via an acceptable photograph. Verification must be completed in full by a licensed, certified and/or registered building contractor, building inspector, architect or engineer. The insured is responsible for the expense associated with substantiating the existence of the mitigation features. 06/1/07 NB Homeowners Rules- 8 FL 06/1/07 RB

27 AUTO CLUB INSURANCE COMPANY OF C. Residential Classification Definitions: 1. Terrain Exposure Category Definitions Exposure C All locations in HVHZ (Miami-Dade and Broward Counties) OR Barrier islands as defined per s (5), Florida Statutes, as the land area from the seasonal high water line to a line 5,000 feet landward from the coastal construction control line OR All other areas with 1,500 feet of the coastal construction control line, or within 1,500 feet of the mean high tide line, whichever is less Exposure B All other locations in Florida 2. Roof Coverings FBC Equivalent Asphalt roof coverings installed in accordance ASTM D 3161 (modified for 110 mph) or Miami Dade County PA Non-FBC Equivalent Asphalt roof shingles not meeting requirements listed above for FBC Equivalent and all other roof covering types. Reinforced Concrete Roof Deck - A roof structure composed of cast-in-place or precast structural concrete designed to be self supporting and integrally attached to wall/support system. Roof covering should be determined by using the roof covering that comprises greater than 50% of the roof surface of the dwelling, excluding entrance ways, porches, and decorative nonstructural gables. 3. Roof Shape Hip - roof having sloping ends and sloping sides down to the eaves line. Gable The portion of the roof above the eaves line of a double-sloped roof; the end section appears as an inverted V. Flat A horizontal roof with a pitch less than 10 degrees. Roof types should be determined by using the type of roof structure that exceeds 50% of the roof surfaces. Any individual exterior wall with a gable end exceeding 50% of the width of the exterior wall shall be classified as GABLE roof shape for rating purposes. Dutch hip roof shapes with a gable end that is less than 50% of the width of the exterior wall shall be classified as HIP roof shape for rating purposes. 4. Roof Deck Attachments Attachment A Plywood/OSB roof sheathing attached to roof trusses/rafters by 6 penny nails (2 x diameter) or greater which are properly spaced at a maximum of 6 along the edge and 12 in the field on 24 truss/rafter spacing. OR Batten decking or Skipped decking (typically used on roof decks supporting wood shakes or wood shingles). OR Any system of screws, nails, adhesives, other roof deck fastening systems or truss/rafter spacing that has an equivalent mean uplift resistance of 55 pounds per square foot or more as evidenced by laboratory uplift tests on full size sheets of plywood/osb. Attachment B Plywood/OSB roof sheathing with a minimum thickness of 1/2" attached to roof trusses/rafters by 8 penny (2.5 x diameter) nails or greater which are properly spaced at a maximum of 6 along the edge and 12 in the field on 24 truss/rafter spacing OR Any system of screws, nails, adhesives, other roof deck fastening systems, or truss/rafter spacing that has an equivalent mean uplift resistance of 103 pounds per square foot or more as evidenced by laboratory uplift tests on full size sheets of plywood/osb. Attachment C Plywood/OSB roof sheathing with a minimum thickness of 1/2" attached to roof trusses/rafters by 8d nails (2.5 x diameter) which are properly spaced at a maximum of 6 along the edge and 6 in the field on 24 truss/rafter spacing OR Dimensional Lumber or Tongue & Groove deck roof composed of ¾ thick boards with nominal widths of 4 or more. OR Any system of screws, nails, adhesives, other roof deck fastening systems, or truss/rafter spacing that has an equivalent mean uplift resistance of 182 pounds per square foot or more as evidenced by laboratory uplift tests on full size sheets of plywood/osb. 06/1/07 NB Homeowners Rules- 9 FL 06/1/07 RB

28 AUTO CLUB INSURANCE COMPANY OF 5. Secondary Water Resistance A self-adhering polymer modified bitumen roofing underlayment (thin rubber sheets with peel and stick underside located beneath the roof covering and normal felt underlayment) with a minimum width of 6 meeting the requirements of ASTM D 1970 installed over all plywood/osb joints to protect from water intrusion. All secondary water resistance products must be installed per the manufacturer's recommendations. Roofing felt or similar paper based products are not acceptable for secondary water resistance. OR A foamed polyurethane sheathing adhesive applied over all joints in the roof sheathing to protect interior from water intrusion. 6. Roof-Wall Connection Toe-Nail Rafter/truss anchored to top plate of wall using nails driven at an angle through the rafter/truss and attached to the top plate of the wall. Clips Metal clips installed on each truss/rafter that attach to the side only of the truss/rafter member and to the wall frame. Metal clip should be free of severe corrosion, have a minimum of 3 nails into the truss/rafter and 3 nails into the wall. Single Wraps Metal straps installed on each truss/rafter that wrap over the top of the truss/rafter and attach to the wall frame in one location. Metal strap should be free of severe corrosion, have a minimum of 3 nails into the truss/rafter and 3 nails into the wall. Double Wraps Metal straps installed on each truss/rafter that wrap over the top of the truss/rafter and attach to the wall frame in two locations. Metal strap should be free of severe corrosion, have a minimum of 3 nails into the truss/rafter and 3 nails into the wall at each location. 7. Opening Protection Class A (Hurricane Impact) All exterior wall and roof openings in buildings (doors, windows, skylights and vents, other than roof ridge, gable, soffit and plumbing vents) must be fully protected with impact resistant coverings (e.g. shutters), impact resistant doors, and/or impact resistant glazing that meet the requirements of one of the following: a. SSTD12; b. ASTM E 1886 and ASTM E 1996(Missile Level C 9 lb); c. Miami-Dade PA 201, 202, and 203; or d. Florida Building Code TAS 201, 202 and 203. Class B (Basic Impact) All exterior wall and roof openings in buildings (doors, windows, skylights and vents, other than roof ridge, gable, soffit and plumbing vents) must be fully protected with impact resistant coverings (e.g. shutters), impact resistant doors, and/or impact resistant glazing that meet the requirements of ASTM E 1886 and ASTM E 1996 (Missile Level B 4.5 lb). Class C (Ordinary Non-Impact) All glazed openings (windows, skylights, sliding glass doors, doors with windows, etc) must be protected with shutter devices or wood structural panels that have the following characteristics. a. Corrugated storm panels made of Steel, Aluminum, or Polycarbonate in which individual panels are no wider than 14" and have a nominal profile of 2" or greater. b. Roll-Up shutters with aluminum slats. c. Accordion shutters with aluminum slats. d. Colonial or Bahama shutters with the all the following features: i. Heavy gauge metal frames ii. Extruded aluminum slats, that are anchored to both sides of frame, or solid metal backing plate in place behind slats iii. Structural hinges iv. Mechanism to lock shutters closed during a storm None All other cases, including unprotected glazed openings. 8. FBC Wind Speed Design wind speed (3 second gust) for site location as determined by the wind speed map in Figure 1606 of the Florida Building Code. ACICF will determine the FBC Wind Speed of the location of structure. 06/1/07 NB Homeowners Rules- 10 FL 06/1/07 RB

29 AUTO CLUB INSURANCE COMPANY OF 9. FBC Wind Design Wind speed (3 sec gust) for which the structure is designed to withstand according to the FBC FBC 2001 establishes basic (e.g. minimum) Wind Design Speeds (WDS) for each FBC Wind Speed zone. When WDS of the structure (e.g. buildings built on or after January 1, 2002) exceeds the basic speed design, certification is required for premium credit. Note: Dade and Broward counties do not require certification as county WDS develops maximum WDS premium credit. Rule 14 Building Code Effectiveness Grading A. General 1. The Building Code Effectiveness Grading Schedule (BCEGS) develops a grade of 1 to 10 for a community based on the adequacy of its building code and the effectiveness of its enforcement of that code. Policies which cover the perils of Windstorm or Hail may be eligible for special rating treatment, subject to the criteria in the following paragraphs. 2. In some communities, two BCEGS grades may be assigned. One grade will apply to one and two family dwelling buildings and/or personal property contained in such buildings. The other grade will apply to all other buildings occupied for residential, commercial and/or manufacturing purposes including personal and business property contained therein the Public Protection Classification Manual published by Insurance Services Offices, Inc. will indicate the application of each grade. 3. The BCEGS grades for a community, and their effective dates, are provided in the Public Protection Classification Manual published by Insurance Services Offices, Inc. B. Community Grading 1. The BCEGS grade applies to any building that has an original certificate of occupancy/completion dated in the year of the effective date of the community grading, or later. 2. If a community is re-graded, the factor for the revised grade applies to buildings that have an original certificate of occupancy dated the year of the revised grading, or later. 3. Where certificates of occupancy are not issued, equivalent documentation acceptable to the company may be used. 4. If, due to an addition or alteration, the original building is changed to comply with the latest building code, the factor for the community grading applicable at the time the reconstruction is completed will apply to such building. 4. Communities that decline to participate in the BCEGS Program will be identified as not participating and will receive a premium surcharge, unless they qualify for Individual Grading. This surcharge will apply to any building that has an original certificate of occupancy dated in the year of the effective date of the community evaluation that indicates the community as not participating. C. Individual Grading Where buildings have been built in full conformance with the natural hazard mitigation elements of one of the nationally recognized building codes, even though the community grade is greater than 1, or the community is not participating in the program, exception rating procedures may apply. Any building may be classified as Grade one 1 for Windstorm/Hail upon certification by a Florida licensed architect or structural engineer, based on an on-site inspection, that such building is in compliance with one of the three nationally recognized building codes with respect to mitigation of the Windstorm and/or Hail hazard. This classification is effective only from the date of the certification. Any costs associated with this provision are to be paid by the insured. D. Ungraded and Non-Participating Risks Buildings which do not qualify for Community or Individual Grading are classified as ungraded or nonparticipating risks. Do not classify as Grade /1/07 NB Homeowners Rules- 11 FL 06/1/07 RB

30 Rule 15 Reserved for Future Use AUTO CLUB INSURANCE COMPANY OF Rule 16 Coverage Amount Form HO-3 Amount of Insurance is equal to the replacement cost of the dwelling for coverage A. This amount is also used to set the limits of coverage B, C and D. The valuation tool used by the company is the only acceptable estimation of replacement cost for this product. Enter all necessary fields to calculate the most accurate value estimation. This value does not include the value of the land owned by the insured. Form HO-6 - Amount of Insurance is equal to the actual cash value or replacement cost of the personal property for coverage C. This amount is also used to set the limits of coverage D. The valuation tool used by the Company is the only acceptable estimation of replacement cost for this product to set coverage A. The company will provide an estimate for coverage C and must be reviewed by the customer for accuracy. Enter all necessary fields to calculate the most accurate value estimation. This value does not include the value of the land owned by the insured. The company will not accept appraisal values of to set the amount of insurance. Rule 17 Homeowners Deductible Options The following deductible options are available subject to underwriting guidelines: All Other Peril Deductible Options Hurricane Deductible Options Sinkhole Deductible $500 $500 $500 $1000 2% $1500 5% $ % $5000 $10000 Hurricane Deductible All policies are subject to a calendar year hurricane deductible. The following options are available subject to underwriting eligibility: $500, 2%, 5% and 10%. Hurricane deductible options may only be amended effective at the normal policy renewal date. EXCEPTION: If a lower hurricane deductible is requested at renewal and the policy has sustained a hurricane loss in the current calendar year, the lower deductible will not become effective until January 1 of the following calendar year. A policy may not be rewritten to circumvent these restrictions. Sinkhole Deductible All policies with sinkhole coverage are subject to a sinkhole deductible of $500 subject to underwriting eligibility. Rule 18 Number of Units (Form HO-6 Only) HO-6 policies are rated by the number of units between a solid masonry firewall extending above the roofline; rate by units 1-4 or 5+. Rule 19 Protective Devices Discounts are available to those who install and maintain qualifying security systems and devices. Qualifying systems and 07/1/07 NB Homeowners Rules- 12 FL 07/1/07 RB

31 AUTO CLUB INSURANCE COMPANY OF devices are listed in the rate pages. Rule 20 Group Association Discount Employee Group Discount A discount will apply to the automobile premium for those insureds who are currently employed by Auto Club South or Auto Club Insurance Company of Florida. Rule 21 Senior Discount A discount applies when the Named Insured or spouse is at least 50 years old at the time of renewal. Rule 22 New / Renovated Home or Condo Rating factors will be applied based on the age of the home or condo. Age is determined by subtracting the year the home or condo was built from the effective date of the policy. A secondary discount factor will apply for homes over 10 years old in which the electrical, heating/ cooling, plumbing systems and/or roof have been completely updated by qualified licensed contractors and a local building inspector can certify that all updating meets current state and local codes. 06/1/07 NB Homeowners Rules- 13 FL 06/1/07 RB

32 AUTO CLUB INSURANCE COMPANY OF Rule 23 Homeowners Experience Rating Plan The policy premium will be adjusted based on the number of consecutive years insured with the Company and the number of claims paid within the past three years immediately preceding the date of application or the renewal effective date. Catastrophe related claims, act of God claims and any claim in which the amount paid was $500 or less are not to be considered for purposes of this rule. Rule 24 Fortified Home Discount A discount will apply if the dwelling is certified as Fortified for Safer Living by the Institute for Business and Home Safety (IBHS). Please refer to for specific information on what qualifies as a Fortified Home. 06/1/07 NB Homeowners Rules- 14 FL 06/1/07 RB

33 AUTO CLUB INSURANCE COMPANY OF ADDITIONAL COVERAGES SECTION HOMEOWNERS ENDORSEMENTS The following endorsements are available and may be added either automatically or as an option to eligible Homeowners policies. A general description of each endorsement and any additional rules or underwriting guidelines when applicable, are explained in this section. Please review the actual endorsements for a complete description of coverages, terms, and conditions. See Rate Pages for available limits and additional premium associated with each endorsement. HO-32 - Unit-Owners Building Property - Special Coverage (HO-6 Only) This endorsement converts Coverage A to the same open peril protection that the HO-3 policy affords for the Dwelling and for the Other Structures. NOTE: This endorsement does not increase the $1,000 limit of Coverage A provided in the policy for Building Property. To obtain higher limits, the Coverage A limit must be increased in increments of $1,000 up to a maximum binding limit. The HO-32 endorsement will provide open peril protection up to the limit (including any increased limit) of Coverage A. HO-35 - Loss Assessment Coverage (All Forms) The policy does not cover assessments that an association may levy against individual unit-owners because of losses not covered under the association's insurance. The following limits are available: $1,000, $5,000, $10,000. This endorsement covers assessments for losses: to property collectively owned by all members of the association, provided the cause of loss is covered under the individual unit-owner's policy; to which the policy's bodily injury and property damage liability coverages apply; resulting from the liability for certain acts of directors, officers, or trustees of the association. NOTE: When an assessment is made because of a deductible in the association's policy, the endorsement provides no more than $1,000 coverage. A $250 deductible applies. The following guidelines apply: The endorsement may not be sold to provide loss assessment coverage for locations other than the residence premises. The endorsement may be purchased if no association losses have occurred to which this coverage may apply. HO-41 - Additional Insured (All Forms) This endorsement provides coverage under Coverages A (Dwelling), B (Other Structures), E (Personal Liability), and F (Medical Payments to Others) to a person or organization, other than the named insured, that has an ownership interest in the dwelling insured under the policy. Homeowner and Condo Associations can not be added as additional insureds. There is no premium charge for this endorsement. 06/1/07 NB HO Endorsements - 1 FL 06/1/07 RB

34 AUTO CLUB INSURANCE COMPANY OF HO-42 - Office, Professional, Private School, Or Studio Use - Residence Premises (All Forms) This endorsement deletes some of the business exclusions included in the policy with regard to certain described businesses conducted on the residence premises. The endorsement also deletes the exclusion under Coverage B of the HO-3 policy for Other Structures used for business purposes with regard to the structure in which the described business is conducted. There is no coverage for any personal injury which arises out of or in connection with the described business. The endorsement provides: Personal Property coverage for furnishings, supplies, and equipment used in the described business; and Bodily Injury, Property Damage, and Medical Payments to Others coverage for loss arising out of the described business pursuits. NOTE: Furnishings, supplies, and equipment do not include electronic data processing equipment, business records, or business data. Bodily Injury coverage does not apply to employees, except residence employees. Coverage is in addition to the $2,500 afforded in Part I of the policy for business property on the residence premises. Coverage may not be bound without Underwriting approval. The following types of incidental business pursuits are generally acceptable: studios of the type used by music teachers or artists, offices of the type used by accountants or architects. The following additional guidelines apply: Coverage is limited only to business property located on the residence premises. The limit is the same as Coverage E (Personal Liability). The endorsement must be purchased for all ACCEPTABLE business pursuits that involve persons coming to the residence (Examples: pupils, customers, and delivery persons). The type of business must be described in detail. HO-48 Additional Limit on Other Structures (HO-3 Only) This endorsement is used to provide additional limits for Other Structures located on the residence premises. A detailed description of the structure to be covered must be provided. This endorsement provides an additional limit of coverage on individually described structures without increasing the limit of liability provided under Coverage B (Other Structures). HO-49 Screened Enclosures Windstorm Or Hurricane Windstorm (HO-3 Only) The Homeowners policy provides no coverage for screened enclosures damaged or destroyed by windstorm or hurricane windstorm. This endorsement provides coverage for screened enclosures covered under Coverage B (Other Structures) that are damaged or destroyed by windstorm or hurricane windstorm. The limit of liability stated on the endorsement is the most we will pay for screened enclosures damaged or 06/1/07 NB HO Endorsements - 2 FL 06/1/07 RB

35 AUTO CLUB INSURANCE COMPANY OF destroyed by windstorm or hurricane windstorm. The endorsement does not increase the Coverage B (Other Structures) limit of liability. 06/1/07 NB HO Endorsements - 3 FL 06/1/07 RB

36 AUTO CLUB INSURANCE COMPANY OF HO-53 Additional Limit On Credit Card, Fund Transfer Card, Forgery, And Counterfeit Money Coverage (All Forms) The policy provides up to $500 under Other Coverages for loss resulting from: theft or unauthorized use of an insured s credit card or fund transfer card; forgery or alterations of an insured s check; or the acceptance of counterfeit U.S. or Canadian paper money. Available additional limits of liability are $2,000 and $4,500. HO-55 - Identity Fraud Expense Coverage (All Forms) The policy may be endorsed to cover expenses incurred by the insured as a result of the fraudulent use of the insureds identity by a third party. This endorsement covers such expenses as the cost of certified mail and notarizing fraud affidavits or similar documents for financial institutions, law enforcement agencies or other credit grantors, lost wages, attorney s fees, loan application fees and telephone charges associated with the identity fraud. Lost wages are covered up to $200 per day not to exceed a total payment of $10,000. The limit of liability applicable to any one identity fraud loss is $25,000. No deductible applies to this endorsement. HO-61 Scheduled Personal Property (All Forms) The Homeowners policy provides individual limits for loss of: stamps, coins, or other philatelic or numismatic property by a cause of loss covered under Coverage C (Personal Property); jewelry, watches, furs, precious and semiprecious stones, silverware, goldware, and firearms by theft. An HO-61 endorsement provides broader coverage in higher amounts for these categories and for cameras, fine arts, musical instruments, and golf equipment by: changing the coverage to direct physical loss subject to some of the policy exclusions and to specific exclusions listed in the endorsement for fine arts, rare and current coins, and postage stamps; affording coverage for newly acquired property as follows: for jewelry, cameras, furs, firearms, musical instruments, up to 25% of the limit that is on the endorsement for that category or $10,000, whichever is less; for fine arts, up to 25% of the endorsement limit for fine arts. Newly acquired property coverage is not available for silverware, golf equipment, postage stamps, and rare and current coins. NOTE: An article may be an individual item or a set of items. Items of a set are usually of the same design and the items are usually purchased as a set. Examples: Block of stamps, place setting of silverware, pair of earrings. Generally, articles are to be scheduled on an individual basis. However, blanket coverage is available for the following articles only: Cameras Silverware, goldware, pewterware Golf equipment 06/1/07 NB HO Endorsements - 4 FL 06/1/07 RB

37 AUTO CLUB INSURANCE COMPANY OF Rare & current coins Postage stamps Articles described and specifically insured in this endorsement are NOT covered under Coverage C (Personal Property). An HO-61 endorsement may NOT be used: with policies insuring a secondary or seasonal residence, or to insure articles used in a profession, occupation, or business for compensation. Exceptions: cameras and musical instruments. Rate is $100 of coverage. Prior underwriting approval is required prior to binding. HO-63 Fine Arts Breakage (All Forms) This endorsement deletes the exclusion in HO-61 (Scheduled Personal Property) of coverage for breakage of the following Fine Arts: art glass windows, glassware, statuary, marbles, bric-a-brac, porcelains, antiques, and other similar fragile articles. If the HO-63 is requested, the following additional guidelines apply: it must be used in conjunction with the HO-61 (Scheduled Personal Property), it must be purchased for all fragile articles scheduled in the Fine Arts category of HO-61. Prior underwriting approval is required prior to binding. 06/1/07 NB HO Endorsements - 5 FL 06/1/07 RB

38 AUTO CLUB INSURANCE COMPANY OF HO-66 - Scheduled Personal Property - Named Perils (All Forms) The Homeowners policy provides individual limits of liability for loss to Collectibles that have no value of their own but derive their value from their desirability to collectors: Acceptable collectibles include: Sports cards Campaign buttons Movie posters Political memorabilia Comic books Other Prior underwriting approval is required for other collectible items not specifically identified. Contact underwriting for acceptability and description requirements. The HO-66 endorsement: provides higher amounts of coverage by insuring these articles for specified amounts: on a blanket basis covering all articles in a category, on a scheduled basis for each individual article. adds Collision coverage to the Coverage C (Personal Property) list of covered perils applicable to collectibles. "Collision" means a loss by collision or upset, derailment, stranding or sinking of a motor vehicle or conveyance of a common carrier in which the equipment is being transported. NOTE: The HO-66 does not change the coverage to "open perils." The HO-66 endorsement does not cover newly acquired property. Property insured under an HO-66 endorsement is not covered under Coverage C (Personal Property). A deductible of $250 applies to the HO-66 endorsement. The following is UNACCEPTABLE: Collector's items not in good condition, Underwriting approval is required prior to binding. Prior Underwriting approval is required: when the scheduled limit exceeds $5,000, to change the limit on any article or collection, unless: a current appraisal is attached, and the new limit is the same as the appraised value. NOTE: As a condition for insuring articles valued in excess of binding authority, we may request the insured to: advise the Company where the article(s) are kept, maintain an alarm system at the residence, keep article(s) not in use in a vault or fireproof safe, provide us with a close-up photograph (not Polaroid) of the article. Blanket Coverage 06/1/07 NB HO Endorsements - 6 FL 06/1/07 RB

39 AUTO CLUB INSURANCE COMPANY OF Articles may be covered on a blanket basis. The number of articles and a general description must be shown in detail. Minimum Limit: $1,000. Maximum Limit: $2,000 in the aggregate. NOTE: Collectibles individually valued at more than $250 should be scheduled. The minimum/maximum limit may be comprised of the combined limits of blanket and scheduled articles. Scheduled Articles Each item must be described. The description must include: the type of item (Example: campaign button), the subject of the item (Examples: McKinley/Roosevelt button or movie poster for "Gone With the Wind"), the year produced or estimated age. A copy of the bill of sale or a current appraisal (no more than two years old) must be attached: for any article valued in excess of $2,500, when the COMBINED VALUE of all articles of any type (Examples: sports cards, campaign buttons, etc.) exceeds $5,000. Minimum Limit: $100 per item. Description of Item Rate Per $100 Deductible Maximum Binding Limit Collectors' Items $0.80 $250 $5,000 Table H0-66 NOTE: A $25 minimum premium is applicable. HO-68 Personal Property Coverage Exclusion (HO-3 Only) Personal Property Coverage may be excluded from the HO-3 policy for a premium credit. In order to qualify for this exclusion the insured must provide a dated, handwritten statement, signed by all named insureds on the policy affirming that personal property coverage is to be excluded. This statement must comply with Section , Florida Statutes and include the following language: I DO NOT WANT THE INSURANCE ON MY HOME TO PAY FOR THE COSTS TO REPAIR OR REPLACE ANY CONTENTS THAT ARE DAMAGED. I WILL PAY THOSE COSTS. MY INSURANCE WILL NOT. If an insured has a condition which prevents them from providing a handwritten statement they may provide a videotaped statement affirming that personal property coverage is to be excluded, using the highlighted language above. 07/1/07 NB HO Endorsements - 7 FL 07/1/07 RB

40 AUTO CLUB INSURANCE COMPANY OF If the Personal Property Coverage Exclusion applies the following endorsements may not be purchased: HO-53 (Additional Limit on Credit Cards, etc) HO-61 (Scheduled Personal Property) HO-63 (Fine Arts Breakage) HO-66 (Scheduled Personal Property Named Perils) HO-109 (Golf Cart Coverage) HO-401 (Deluxe Homeowners) HO-403 (Ultra Homeowners) HO-75 Animal Liability (All Forms) The Homeowners policy does not provide liability coverage caused by an animal owned by; or in the care, custody or control of an insured under Coverage E (Personal Liability) or Coverage F (Medical Payments to Others). This endorsement adds Animal Liability Coverage for domestic cats and dogs. Specified breeds of dogs are excluded from coverage. Prior Underwriting approval is required. The limit of liability under Coverage E (Personal Liability) is $50,000 in the aggregate per policy period and Coverage F (Medical Payments to Others) is $1,000 per person / per occurrence. HO-82 Personal Injury (All Forms) The Homeowners policy does not provide coverage for Personal Injury under Coverage E (Personal Liability). This endorsement adds Personal Injury Coverage. Prior Underwriting approval is required when the insured s occupation or profession presents a higher than usual risk exposure. This endorsement cannot be purchased with the HO-401 (Deluxe Endorsement) or with the HO- 403 (Ultra Endorsement). The limit is the same as the Coverage E (Personal Liability) limit of liability. HO-87 Dwelling Under Construction Special Coverage (HO-3 Only) The HO-87 endorsement provides coverage for loss(es) caused by theft of building materials and supplies from the residence premises. These are materials and supplies owned by the insured and used in the construction of the dwelling. Liability coverage is limited to bodily injury or property damage caused by a loss arising out of the ownership, use, or occupancy of the residence premises. Coverage C (Personal Property) and Coverage F (Medical Payments to Others) are suspended while the HO-87 endorsement is in effect. The dwelling under construction must be: intended as the insured s primary residence upon completion, a newly constructed dwelling (the HO-87 does not apply to older dwellings being remodeled), insured at 100% of replacement cost of completed value, built by a licensed contractor, owner-occupied upon completion, and completed within 180 days from the effective date of the endorsement Prior Underwriting approval is required if completion will exceed 180 days 07/1/07 NB HO Endorsements - 8 FL 07/1/07 RB

41 AUTO CLUB INSURANCE COMPANY OF Coverage will be terminated at the end of the current policy period or when the dwelling is completed, whichever occurs first. This coverage is fully earned and is not subject to pro-rata cancellation. The limit of liability for theft of building materials and supplies covered by this endorsement shall not exceed $5,000 in the aggregate. NOTE: The HO-87 endorsement cannot be purchased with the HO-401 (Deluxe Endorsement) or HO- 403 (Ultra Eendorsement). HO-94 Windstorm, Hurricane Windstorm, Or Hail Exclusion (All Forms) The peril of Windstorm, Hurricane Windstorm, or Hail may be excluded if the property is located in an area eligible for coverage from Citizens High Risk Account or if the insured provides a dated, handwritten statement, signed by all named insureds on the policy affirming that windstorm coverage is to be excluded. This statement must comply with Section , Florida Statutes and include the following language: I DO NOT WANT THE INSURANCE ON MY (HOME / CONDOMINIUM UNIT) TO PAY FOR DAMAGE FROM WINDSTORMS. I WILL PAY THOSE COSTS. MY INSURANCE WILL NOT. If an insured has a condition which prevents them from providing a handwritten statement they may provide a videotaped statement affirming that windstorm coverage is to be excluded, using the highlighted language above. Additionally, if the structure covered by the policy is subject to a mortgage or lien, the insured must provide a written statement from the mortgageholder or lienholder approving the insureds exclusion of coverage from their residential insurance policy. HO Golf Cart Coverage (All Forms) Coverage for physical damage, personal liability, and medical payments to others is available for golf carts. This endorsement includes Coverage E (Personal Liability) coverage of $100,000, Coverage F (Medical Payments to Others) coverage of $5,000 and Coverage C (Personal Property) coverage for physical damage to the golf cart for the actual cash value up to the maximum of $5,000. A special deductible of $250 applies for physical damage coverage. The rate is per golf cart. HO-149 Screened Enclosures Windstorm Or Hurricane Windstorm (HO-6 Only) The Condominium Unit Owners policy provides no coverage for screened enclosures damaged or destroyed by windstorm or hurricane windstorm. This endorsement provides coverage for screened enclosures covered under Coverage A (Building Property) that are damaged or destroyed by windstorm or hurricane windstorm. The limit of liability stated on the endorsement is the most we will pay for screened enclosures damaged or destroyed by windstorm or hurricane windstorm. The endorsement does not increase the Coverage A (Building Property) limit of liability. HO Alarm Or Fire Protection System (All Forms) This endorsement allows a premium credit for an approved burglar alarm or fire protection system on the residence premises. The endorsement requires the insured to maintain the system in working order and to notify us if any change made to the system/alarm or if the system/alarm is removed. The following guidelines apply: The alarm system must be approved by us (see below). Any type of alarm system not mentioned below must be submitted for approval. There is no credit for homemade systems. 07/1/07 NB HO Endorsements - 9 FL 07/1/07 RB

42 AUTO CLUB INSURANCE COMPANY OF The name(s) of the system and the manufacturer must be provided. Approved Systems: Approved systems may either be local or central. Local alarms emit a sound only on the premises where they are installed. The following are examples of a local alarm system: Ultrasonic Local Burglar Alarms Small devices, usually mounted on one wall in each room that emit sound waves with a frequency too high to be heard by the human ear. Any movement in the room will disturb these sound waves and activate the alarm. Complete Local Burglar Alarms These systems must have magnetic switches, pull traps, or foil on all exterior doors, first floor windows, and any other openings through which an individual could enter the dwelling. An electrical wire connects the devices to each other and to a control box. Any break in the connection activates the alarm. Such a system may also include an ultrasonic or radar installation. Fire Local Alarms These heat sensitive devices are usually installed in the hall adjacent to each bedroom and in the basement. Smoke Local Alarms These smoke sensitive devices, the most common fire alarm system, are usually installed in the hall adjacent to each bedroom and in the basement. Central Station Burglar and/or Fire Alarm systems that report either to a fire department, police station, or central station maintained by an alarm company. This endorsement results in a premium credit. There is no premium charge for this endorsement. For premium credit, refer to Rate Pages of this manual. HO Wind Or Hurricane Windstorm Loss Mitigation (All Forms) This endorsement allows a premium credit for opening protection or construction features designed to reduce the amount of loss in the event of a windstorm or hurricane windstorm. The endorsement requires the insured to notify us within 30 days of any changes made to the opening protection or construction features or of any remodeling of, or addition to, the dwelling or building property. A signed form must be completed. HO Building Ordinance Or Law (HO-6 Only) The policy provides no coverage for the increased cost of reconstruction, repair, or demolition as a result the enforcement of a building ordinance or law. This endorsement provides coverage for a loss resulting from the enforcement of an ordinance or law that regulates the reconstruction, repair, or demolition of property covered under Coverage A (Building Property). Coverage is available at 25% and 50% of Coverage A (Building Property). The limit options provide either 25% or 50% of the Coverage A (Building Property) limit of liability to pay necessary costs incurred to comply with the enforcement of an ordinance or law. This endorsement is offered for all new policies and at renewal for existing policies. No mid term endorsements are acceptable. A signed form must be completed. HO Building Ordinance Or Law Coverage (HO-3 Only) The policy provides no coverage for the increased cost of reconstruction, repair, or demolition as a result the enforcement of a building ordinance or law. This endorsement provides coverage for a loss resulting from the enforcement of an ordinance or law that regulates the reconstruction, repair, or demolition of property covered under Coverage A (Dwelling). Coverage is available at 25% and 50% of Coverage A (Dwelling). The limit options provide either 25% or 50% of the Coverage A (Dwelling) limit of liability to 07/1/07 NB HO Endorsements - 10 FL 07/1/07 RB

43 AUTO CLUB INSURANCE COMPANY OF pay necessary costs incurred to comply with the enforcement of an ordinance or law. This endorsement is offered for all new policies and at renewal for existing policies. No mid term endorsements are acceptable. A signed form must be completed. HO Extended Replacement Cost (HO-3 Only) The HO-280 endorsement provides up to an additional 25% of the limit of liability stated on the declarations page for Coverage A (Dwelling) for any loss where the incurred cost to repair or replace the dwelling exceeds the Coverage A (Dwelling) limit of liability. To qualify for this coverage, the dwelling must be insured for 100% of replacement cost. To maintain the replacement cost provisions, the insured must give the Company written notice of any improvements, alterations or additions which increase the replacement cost of the dwelling building by $5,000 or more. Notice must be given 30 days prior to the completion of the improvements, alterations or additions. Payment of any resulting premium is required. Note: The HO-280 endorsement cannot be purchased with the HO-87 (Dwelling Under Construction) endorsement. The HO-280 endorsement does not extend coverage for catastrophic ground cover collapse or sinkhole activity resulting in a sinkhole loss. 07/1/07 NB HO Endorsements - 11 FL 07/1/07 RB

44 AUTO CLUB INSURANCE COMPANY OF HO Personal Property Replacement Cost (HO-3 Only) HO Personal Property Replacement Cost (HO-6 Only) Under the HO-3 and HO-6 policies, unscheduled personal property, awnings, carpeting, household appliances, outdoor antennas, and outdoor equipment are insured for replacement cost less depreciation. The HO-290 and HO-299 provides replacement cost without deduction for depreciation coverage for these items and for those articles or classes of personal property separately described and specifically insured under the HO-61. Replacement cost means the lowest of the following five amounts: replacement cost at the time of loss without deduction for depreciation, or the full cost of repair at the time of loss, or the amount of the limit of liability shown in the declarations applicable to the property, or the amount of any special limits of liability stated in the policy, or for any article specifically insured and separately described in the policy, the amount of the limit of liability stated in the policy for that item. The following property is not eligible for replacement cost settlement: rare and current coins and other numismatic property, postage stamps and other philatelic property, sports cards, campaign buttons and other political memorabilia, movie memorabilia, comic books and other collectibles that derive their value solely from their desirability to collectors, articles not maintained in good or workable condition, or articles that are outdated and obsolete and are stored and not being used HO-363 Sinkhole Coverage (HO-3 Only) This endorsement may be purchased for an additional premium and provides coverage for direct physical loss to property insured under Coverages A (Dwelling), B (Other Structures) or C (Personal Property) caused by sinkhole activity resulting in a sinkhole loss. This endorsement does not increase the limit of liability applicable to the covered property. HO-366 Sinkhole Coverage (HO-6 Only) This endorsement may be purchased for an additional premium and provides coverage for direct physical loss to property insured under Coverages A (Building Property) or C (Personal Property) caused by sinkhole activity resulting in a sinkhole loss. This endorsement does not increase the limit of liability applicable to the covered property. HO-373 Catastrophic Ground Cover Collapse Coverage (HO-3 Only) This endorsement is attached to all policies and provides coverage for direct physical loss to property insured under Coverages A (Dwelling), B (Other Structures) or C (Personal Property) caused by catastrophic ground cover collapse. This endorsement does not increase the limit of liability applicable to the covered property. HO-376 Catastrophic Ground Cover Collapse Coverage (HO-6 Only) This endorsement is attached to all policies and provides coverage for direct physical loss to property insured under Coverages A (Building Property) or C (Personal Property) caused by catastrophic ground cover collapse. This endorsement does not increase the limit of liability applicable to the covered property. 11/1/07 NB HO Endorsements - 12 FL 11/1/07 RB

45 AUTO CLUB INSURANCE COMPANY OF HO-401 Deluxe Homeowners The HO-401 endorsement provides the following for the policy: increases the sub-limits on certain categories of personal property provided under Part I of the basic policy (see list of sub-limits below) increases the Coverage C (Personal Property) limit of liability to 60% of the Coverage A (Dwelling) limit of liability provides Extended Replacement Cost coverage up to an additional 25% of the Coverage A (Dwelling) limit of liability increases the Coverage D (Loss of Use) limit of liability to 15% of the Coverage A (Dwelling) limit of liability increases the Coverage E (Personal Liability) limit of liability to $200,000 and Coverage F (Medical Payments to Others) to $2,000, and adds Personal Injury coverage of $200,000 provides Personal Property Replacement Cost coverage for property specifically identified in the endorsement provides Loss Assessment Coverage of $1,000 that can be stacked or combined with the HO-35 Loss Assessment Coverage Endorsement to increase the amount of coverage available 11/1/07 NB HO Endorsements - 13 FL 11/1/07 RB

46 Increased Sub-Limits AUTO CLUB INSURANCE COMPANY OF Class of Property Increased Sub-Limit Money, bank notes, bullion, gold, silver, platinum, coins, and medals $500 Securities, accounts, deeds, evidence of debt, letters of credit, notes, manuscripts, personal $2,500 records, personal data, passports, tickets, stamps, checks, and stored value cards Jewelry, watches, furs, precious and semi-precious stones for theft $2,500 Firearms for theft $3,500 Silverware, silver-plated ware, goldware, & gold-plated ware for theft $3,500 Rugs, carpets, tapestries, and wall hangings for theft $2,500 Electronic data processing equipment on the residence premises $3,500 Electronic data processing equipment off the residence premises $1,500 Collectibles and Fine Arts $2,500 The following are not eligible for the Deluxe Homeowners Endorsement: Seasonal or secondary homes; Log homes; Dwellings located in Protection Class 10; Dwellings under construction; Prior Underwriting approval is required if the dwelling is located in Protection Class 9. HO-403 Ultra Homeowners The HO-403 endorsement provides the following for the policy: increases the sub-limits on certain categories of personal property provided under Part I of the basic policy (see list of sub-limits below) increases the Coverage C (Personal Property) limit of liability to 70% of the Coverage A (Dwelling) limit of liability provides Extended Replacement Cost coverage up to an additional 25% of the Coverage A (Dwelling) limit of liability increases the Coverage D (Loss of Use) limit of liability to 20% of the Coverage A (Dwelling) limit of liability increases the Coverage E (Personal Liability) limit of liability to $300,000 and Coverage F (Medical Payments to Others) to $5,000, and adds Personal Injury coverage of $300,000 provides Personal Property Replacement Cost coverage for property specifically identified in the endorsement increases the limit of liability for personal property usually located off the residence premises to 20% of the Coverage C (Personal Property) limit of liability provides Loss Assessment Coverage of $1,000 that can be stacked or combined with the HO-35 Loss Assessment Coverage Endorsement to increase the amount of coverage available provides Identity Fraud Expense Coverage of $25,000 provides Sewers or Drains Backup and Sump Overflow or Discharge coverage of $5,000 11/1/07 NB HO Endorsements - 14 FL 11/1/07 RB

47 AUTO CLUB INSURANCE COMPANY OF Increased Sub-Limits: Class of Property Increased Sub-Limit Money, bank notes, bullion, gold, silver, platinum, coins, and medals $1,000 Securities, accounts, deeds, evidence of debt, letters of credit, notes, manuscripts, personal records, personal data, passports, tickets, stamps, stored value cards, and checks $5,000 Jewelry, watches, furs, precious and semi-precious stones for theft $5,000 Firearms for theft $5,000 Silverware, silver-plated ware, goldware, & gold-plated ware for theft $5,000 Rugs, carpets, tapestries, and wall hangings for theft $5,000 Electronic data processing equipment on the residence premises $5,000 Electronic data processing equipment off the residence premises $2,500 Collectibles and Fine Arts $5,000 The following are not eligible for the Ultra Homeowners Endorsement: Secondary or seasonal homes Log homes Dwellings located in Protection Class 10, and Dwellings under construction Prior Underwriting approval is required if the dwelling is located in Protection Class 9. HO Increased Limit On Mold, Fungus, Dry Rot Or Bacteria Coverage (Part I Property Coverages) (All Forms) The homeowners policy provides $10,000 coverage, in the aggregate per policy period, under Part I Property Coverages for the remediation of mold, fungus, wet rot, dry rot or bacteria caused by or resulting from a covered loss. Loss of use due to the remediation is included in the aggregate limit. For an added premium, the limit of liability can be increased up to $25,000 or $50,000 in the aggregate with the purchase of the HO-430 endorsement. The following guidelines apply: Dwellings or Condominium Units that have had any water loss in the last three (3) years are NOT acceptable. Secondary/seasonal dwellings are not eligible. A third-party vendor inspection, interior and exterior, is required prior to binding coverage on this endorsement at the insureds expense. 11/1/07 NB HO Endorsements - 15 FL 11/1/07 RB

48 AUTO CLUB INSURANCE COMPANY OF AUTOMOBILE RULE SECTION Rule 1 Private Passenger Automobile Defined An automobile of the private passenger type, including a station wagon, pickup truck, panel truck, sports utility vehicle or van that is owned or leased under a contract for a continuous period of at least six months; and: 1. not used as a public or livery conveyance for passengers, 2. not rented to others. Rule 2 Automobile Definitions 1. AGE means the age attained on the last birthday prior to policy inception or renewal. 2. ANNUAL MILEAGE means the miles each vehicle is driven in one years time. Annual Mileage is based on the actual vehicle miles by all drivers. 3. ANTIQUE CARS Autos that are 25 years or older that have been kept in good running condition and/or are licensed as an antique with the Department of Motor Vehicles. 4. BUSINESS USE means driving for the purpose of conducting business or in conjunction with ones occupation when a permanent business location is utilized. The following vehicle usage is considered commercial in nature and as such are unacceptable: a. Vehicles with temporary or permanent signage; b. Vehicles titled in the name of a business, partnership or DBA; c. Artisan Use 5. CLASSIFICATION FACTOR means the final class factor inclusive of classification code factor plus violation and accident surcharge. 6. HIGHEST RATED OCCASIONAL OPERATOR means the Occasional Operator with the highest CLASSIFICATION FACTOR. 7. HIGHEST RATED VEHICLE means the vehicle with the highest base rate. 8. INCIDENT means an accident or a violation or any combination thereof. 9. MARRIED means a married person living with his or her spouse and includes a person widowed, divorced or legally separated only if such person has custody of one or more resident children. 10. MISCELLANEOUS TYPE VEHICLES Vehicles such as Motorcycles, Motor Scooters, Motor Bikes, All Terrain Vehicles (ATV s), mopeds, dune buggies, gray market cars are considered miscellaneous type vehicles. 11. OCCASIONAL OPERATOR means any operator not considered a principal operator or someone that has minimal use of the vehicle. 12. PERMISSIVE USE means the insured gave permission for driver not listed on the policy to operate their vehicle. 13. PLEASURE USE means not driven to work or school. For the purposes of this rule Clergymen are considered Pleasure Use. 14. PRINCIPAL OPERATOR means the operator with the highest or most use of the vehicle. 15. RESIDENT means anyone residing in the same household. Exception: A person in active military service with the Armed Forces of the United States of America is considered a RESIDENT of the household regardless of temporary location. 16. STUDENT AWAY means the operator is a student without a vehicle residing at an educational institution over 100 road miles from any auto s place of principal garaging. 17. WORK USE means driving to or from a permanent working location. This class also includes driving to or from school. 18. YOUTHFUL and OCCASIONAL YOUTHFUL OPERATOR means any driver under age /1/07 NB Auto Rules - 1 FL 06/1/07 RB

49 AUTO CLUB INSURANCE COMPANY OF Rule 3 Driver Classification 1. Refer to the Classification Code tables to determine the applicable Classification Factor(s) according to the gender, marital status and age of the operator of the automobile. 2. Refer to the Safe Driver Insurance Plan to determine the factors applicable to the risk, based on Accidents and Violations. 3. Determine the final applicable Classification Factor by adding all of the factors determined in 1 and 2 above. Additional Vehicle Classification Factor The Additional Vehicle Classification Factor is 1.00 for all coverages. It applies when there are more vehicles than operators and will apply to each vehicle in excess of the number of operators. Use code (AV00) The All Other Driver Annual Mileage Factor will apply to the Additional Vehicle Classification. Driver Assignment 1. Equal Vehicles to Equal Operators Operators are assigned to the vehicle they principally drive. 2. More Vehicles than Operators Operators are assigned to the vehicle they principally drive. Additional vehicles are rated by using the Additional Vehicle Classification Factor. 3. More Operators than Vehicles Assign vehicles in the following order: a. Determine the CLASSIFICATION FACTOR for all Occasional Youthful Operators/Student Away on the policy. b. Determine the base rate for each vehicle on the policy. c. Occasional Youthful Operators are assigned HIGHEST RATED OCCASIONAL OPERATOR/STUDENT AWAY to the HIGHEST RATED VEHICLE. d. All remaining vehicles are assigned to the driver classification of the principal driver. If there are more operators than vehicles assign remaining operators SDIP violation and accident surcharges as follows: For any driver that has not been assigned to a vehicle their violation and accident surcharge factors will be added to the CLASSIFICATION FACTOR assigned to the highest rated vehicle. Rule 4 Miscellaneous Classification Factors The following factors apply to bodily injury, property damage, personal injury protection, medical payments, other than collision, and collision coverages. Refer to Rating Logic for Premium Calculation. Annual Mileage Annual Mileage is defined as the miles each vehicle is driven in one years time. Annual Mileage is based on the actual vehicle miles by all drivers. Principal Operator, Occasional Youthful Operator, and Student Away Factor The Occasional Youthful Operator/Student Away factor only applies once per vehicle regardless of the number of occasional youthful operators/students Away on the vehicle or policy. Also this factor only applies if there are more drivers than vehicles. 06/1/07 NB Auto Rules - 2 FL 06/1/07 RB

50 AUTO CLUB INSURANCE COMPANY OF Vehicle Use Factor Vehicle usage factor will follow the vehicle if there are more drivers than vehicles. Usage will be based on the highest use factor of all operators assigned to that vehicle. Multi-Car Factor There is a discount when more than one vehicle is on a policy. Vehicle Driver Matrix (Per Vehicle) Vehicle Driver matrix adjusts premium for combinations of drivers and vehicles. Rule 5 Safe Driver Insurance Plan (SDIP) This plan is designed so that drivers who have had accidents and moving violations pay appropriately higher rates than those who have not had accidents and violations. Accidents and Violation Surcharges follow the driver. Eligibility Private Passenger Automobiles are subject to rating under this plan. Application of Surcharge Surcharges are always associated with the driver (principal or occasional) and the vehicle or its replacement assigned to the driver involved in the accident/violation. Surcharges are added to the Classification Factor. A chargeable accident/violation involving a non-owned auto will be charged to the driver involved in the accident/violation and to the vehicle to which he/she is assigned. Surcharges for the same accident and/or violation will not be assigned to more than one auto. If both an accident and violation, having different surcharge values, arise out of the same incident, assign the surcharge for the item with the higher surcharge value. Surcharges are assigned based on moving violations and accidents which have occurred within 36 months of the effective date of an application for insurance or prior to the effective date of the renewal. Violations and Accidents accumulate surcharges for the Named Insured and any driver in the household. The violation and accident surcharge will follow the driver and is assigned to the vehicle they principally drive. If a surcharge is not applied at the first renewal following a violation(s) or accident(s), Auto Club Insurance Company of Florida reserves the right to apply a full applicable surcharge at a subsequent renewal. Drivers can continue to incur surcharges for additional accidents/violations. Additional surcharge amounts are added to existing increases. If a policy is cancelled and reinstated or rewritten, any surcharge will be transferred to the reinstated or rewritten policy. Surcharges will be applied to the following coverages: Bodily Injury, Property Damage, Personal Injury Protection, Medical Payments and Collision. If there have been less than 3 occurrences in the previous 36 months, the first minor violation in the most recent 18 months will be waived and subsequent minor violations will be charged. If all minor violations occurred in the previous 18 months, the first occurrence will be waived and subsequent minor violations will be charged. 06/1/07 NB Auto Rules - 3 FL 06/1/07 RB

51 AUTO CLUB INSURANCE COMPANY OF Violations Violations which result in a conviction can be surcharged. Surcharge points are assigned as follows: Minor Moving Violations 1 Point Is Assigned For Any Conviction of: A 2 nd infraction or more committed within the last 18 months or a 3 rd or more subsequent infraction committed within the last 36 months; when 1. the infraction is: a. speeding, where speed limit is less than or equal to 15 mph over the posted speed limit; or b. speeding on 4 lanes with a 20 foot median, is less than or equal to 80 in a 65 mph zone or is less than or equal to 70 in a 55 mph zone; or c. speed is less than the posted minimum speed; or 2. Any other non-criminal violation in conjunction with FL Statute Serious Moving Violations 4 Points Are Assigned For Any Conviction of: 1. reckless, negligent, or irresponsible driving; or 2. making a false crash report; or 3. obstructing an officer; or 4. racing or engaging in, aiding or abetting a speed contest; or 5. any major speed equal to or greater than 16 mph over the posted speed limit. Major Moving Violations 6 Points Are Assigned For Any Conviction of: 1. driving or being in actual physical control of, any vehicle while under the influence of alcoholic beverages, or any chemical or controlled substance or driving with an unlawful blood-alcohol level; or 2. possession of narcotic drugs; or 3. failure to stop and report when involved in an accident; or 4. homicide or assault or any felony arising out of the operation of a motor vehicle; or 5. eluding or attempting to elude a police officer or member of the fire department. Exceptions: No points will be assigned for a conviction if the insured demonstrates that the conviction occurred: 1. while operating a vehicle during his/her employment for any local transit system; or 2. during his/her employment as a bus operator for any non-public sector bus Company certified by the Public Service Commission or the Interstate Commerce Commission; or 3. while operating a vehicle certified by the Interstate Commerce Commission or the Florida Public Service Commission provided the vehicle has attached or displays a valid certificate number. Accidents Surcharges will be applied for each chargeable accident that occurred during the experience period involving the applicant/named insured or any driver in the household while operating an auto. A chargeable accident is one in which the insurer s file contains information from which the insurer in good faith determines that the insured or any driver in the household was substantially at fault in the accident. An accident will generate a surcharge if it resulted in bodily injury or property damages in excess of $1000 or if it results in a death. 06/1/07 NB Auto Rules - 4 FL 06/1/07 RB

52 AUTO CLUB INSURANCE COMPANY OF Exception to Assignment of Surcharge Points Regardless of cost, Surcharge Points will not be assigned if any of the following apply: a. No surcharges are assigned for accidents occurring under the following circumstances: 1. auto lawfully parked (if the parked vehicle rolls from the parked position, then any such accident is charged to the person who parked the auto); or 2. applicant/named insured, owner or other resident operator involved in an accident is: a. determined by Auto Club Insurance Company of Florida to be 50% or less negligent; or b. reimbursed by or obtain judgment against another person responsible for the accident for 50% or more of his or her damages; or 3. auto is struck in the rear by another vehicle and the applicant/named insured or other resident operator has not been convicted of a moving violation in connection with this accident; or 4. operator of the other auto involved in the accident was convicted of a moving traffic violation and the applicant/named insured or resident operator was not convicted of a moving traffic violation in connection with the accident; or 5. auto operated by the applicant/named insured or any resident operator is struck by a hit-and-run vehicle if the accident is reported to the proper authority within 24 hours by the applicant/named insured or resident operator; or 6. single car accidents involving damage by contact with animals or fowl; or 7. accidents involving damage to glass only are considered not-at-fault; or 8. accidents involving only Physical Damage to your vehicle limited to and caused by flying gravel, missiles or falling objects; or 9. accidents occurring when using a vehicle while on duty as a paid or volunteer member of a Police or Fire Department or first aid squad or any law enforcement agency; or 10. applicant/named insured or other resident operator or owner who receives payment under Personal Injury Protection, Extended Personal Injury Protection or Additional Personal Injury Protection where such individual is not at fault; or 11. the applicant/named insured or resident operator was in receipt of a traffic citation which was dismissed or nolle prossed; or 12. the applicant/named insured or other resident operator or owner involved in the accident was not at fault as evidenced by a written statement from the insured establishing facts demonstrating lack of fault which are not rebutted by information in our file from which we have in good faith determined that the insured was substantially at fault. Note: If it is later learned that a prior accident falls under one of these exceptions, the surcharge will be removed and the premium adjusted. 06/1/07 NB Auto Rules - 5 FL 06/1/07 RB

53 AUTO CLUB INSURANCE COMPANY OF Rule 6 Accident Forgiveness The company will not charge a rated driver under a policy under the SDIP plan or the Underwriting Level for an accident at renewal if the policy; Has been in force with company for at least 24 months prior to the renewal effective date No other accidents are on the policy for any drivers during the last 36 months prior to the renewal effective date There are no other forgiven accidents The accident was not the result of a permissive user Rule 7 Inexperienced Operator An inexperienced operator surcharge will be assigned to an individual who has been licensed in the United States or Canada for less than four years. The number of years licensed will determine the percentage of surcharge. Auto Club Insurance Company of Florida will not prorate an inexperienced operator attaining more years driving experience during the policy period. The surcharge determined at the time of application for insurance or at renewal will hold throughout the policy period. If an inexperienced operator is the principal driver of more than one car, the Inexperienced Operator Surcharge applies only once and is assigned to the vehicle that operator is assigned. Rule 8 Insurance Score Procedures The Relativity Factor assigned to the Insurance Score Range will be considered as part of the insurance score process. This Relativity Factor is multiplied with other relativity factors and the combination of these factors determines the overall Insurance Score and level. The Insurance Score Level is used in the determination of the final rate. Rule 9 Discounts Group Association Discount AAA Membership A discount will apply to the automobile premium for those insureds who have been a continuous member of an approved association for at least one year. 1. The insured s member number must be listed on the application. 2. The discount shall apply to Bodily Injury, Property Damage, Personal Injury Protection, and Collision Coverages. 3. The discount shall apply to all cars listed on the policy. 4. Agents will be notified as groups become eligible. 5. The following groups are currently eligible: AAA, CAA 6. Refer to Rating Logic for Premium Calculation. Employee Group Discount 06/1/07 NB Auto Rules - 6 FL 06/1/07 RB

54 AUTO CLUB INSURANCE COMPANY OF A discount will apply to the automobile premium for those insureds who are currently employed by Auto Club South or Auto Club Insurance Company of Florida. Good Student Discount The Good Student Discount may be applied to each Youthful Operator provided: 1. The owner or operator is at least 16 years of age, no older than 23 years of age, and is a full-time student, and 2. Auto Club Insurance Company of Florida is furnished documentation by a school official indicating that each such student has met one of the following requirements for the immediately preceding school semester (or comparable period): 3. Ranked among the upper 20% of his/her class scholastically, or 4. in schools using letter grades, had a grade average of B or its equivalent or, if the system of letter grading cannot be averaged, no grade shall be below B, or 5. in schools using numerical grade points, had an equivalent of B, such as at least 3 in a 4, 3, 2, 1 point system, or 6. was included in a Dean s List, Honor Roll, or Comparable list indicating scholastic achievement. 7. This discount is applicable once per vehicle regardless of the number of OCCASIONAL YOUTHFUL OPERATORS assigned to the vehicle. 8. If the MATURE OPERATOR DISCOUNT applies to the vehicle this discount is not applicable. 9. The discount shall remain in effect provided the operator remains at-fault accident and violation free. If enrolled in a home study program, is ranked in the upper 20% on at least one of the following national standardized tests administered within the past 12 months: FCAT, PSAT, PLAN, SAT-I, ACT, the California Achievement Test or the Iowa Skill Test. No policy shall be changed in term to effect a change of classification as a result of a change in the scholastic standing of any individual. A change in a student s scholastic status may be effected only on the basis of a new signed statement as provided in a. (2) above. The discount shall be applied to the Bodily Injury, Property Damage, Personal Injury Protection, and Collision coverages. Driver Training Discount The Driver Training Discount may be applied to each Youthful Operator who is under 21 years of age, and where Satisfactory Evidence is presented that such operator has successfully completed a driver education course meeting the following standards: 1. The course was composed of a minimum of 30 clock hours for classroom instruction plus a minimum of 6 clock hours per student in the practice driving phase. The practice driving requirement may be met in either of the following ways: 06/1/07 NB Auto Rules - 7 FL 06/1/07 RB

55 AUTO CLUB INSURANCE COMPANY OF a) A minimum of 6 clock hours per student for actual driving experience exclusive of observation time in the car. In this case, time spent in an approved simulated practice driving trainer, the use of which is authorized by the State Department of Education or other responsible educational agency, may be counted as part of the required 30 clock hours of classroom instruction, or b) A minimum of 3 clock hours per student for actual driving experience exclusive of observation time in the car, and a minimum of 12 clock hours per student in an approved device which simulates practice driving the use of which is authorized by the State Department of Education or other responsible educational agency. In this case, only the time spent in excess of 12 clock hours may be counted as part of the required 30 clock hours of classroom instruction. 2. The course had the official approval of the State Department of Education or other responsible education agency and was conducted by: a) a recognized secondary school, college, or university, or b) other school approved and supervised by the State Department of Education or other responsible educational agency. 3. The course was conducted by instructors certified by the State Department of Education or other responsible educational agency. 4. In the case of schools other than recognized secondary schools, colleges and universities, the school was approved and supervised by the State Department of Education or other responsible educational agency. 5. Satisfactory Evidence is a certificate signed by a school official certifying to the fulfillment of the requirements in 2 above. This discount is applicable once per vehicle regardless of the number of YOUTHFUL OCCASIONAL OPERATORS assigned to the vehicle. If the MATURE OPERATOR DISCOUNT applies to the vehicle this discount is not applicable. The discount shall remain in effect provided the operator remains at-fault accident and violation free, and under 21 years of age. The discount shall be applied to the Bodily Injury, Property Damage, Personal Injury Protection, and Collision coverages. 06/1/07 NB Auto Rules - 8 FL 06/1/07 RB

56 AUTO CLUB INSURANCE COMPANY OF Mature Operator Motor Vehicle Accident Prevention Course Discount 1. A Mature Operator Motor Vehicle Accident Prevention Course Discount shall be applied to the Bodily Injury, Property Damage, Personal Injury Protection, and Collision premiums provided: a) The automobile is classified and rated as a private passenger automobile; and b) The principal operator of the automobile: 1) Is age 55 or older; and 2) Holds a valid operator s license; and 3) Submits a completion certificate, dated within the most recent 36 months, certifying that he or she has successfully completed a Motor Vehicle accident Prevention Course approved by the Florida Department of Highway Safety and Motor Vehicles; or 4) Submits a completion certificate and a copy of the score page from the course software, dated within the most recent 36 months, certifying that he or she has successfully completed AAA Driver Assessment Course. 2. This discount shall apply: a) To new and renewal policies with inception dates within the 36-month period following the course completion date. b) Only to the automobile principally operated by the operator with the course completion certificate. c) Only once to each automobile regardless of the number of operators with course completion certificates. 3. This discount shall not apply if the approved course is taken as punishment specified by a court or other government entity resulting from a moving traffic violation. 4. This discount shall be maintained if the insured successfully completes an approved Motor Vehicle Accident Prevention Course after the insured is: a) Involved in an accident for which the insured is at fault. b) Convicted, pleads guilty, or nolo contendere to a moving traffic violation. Vehicles Equipped With Factory Installed Air Bags A discount on Personal Injury Protection and Medical Payment premiums will apply to vehicles equipped with factory installed air bags. Vehicles Equipped With Factory Installed Anti-Lock Brakes A discount on Bodily Injury, Property Damage, Personal Injury Protection, and Collision premiums will apply to vehicles that are equipped with anti-lock brakes. 06/1/07 NB Auto Rules - 9 FL 06/1/07 RB

57 AUTO CLUB INSURANCE COMPANY OF Vehicles Equipped With Anti-Theft Device or Vehicle Recovery Systems A discount on other than collision premiums shall apply to vehicles: a. Equipped with a/an 1) Anti-theft device which consists of an alarm device which sounds an audible alarm that can be heard at a distance of at least 300 feet for a minimum of three minutes; or 2) An active disabling device which disables the vehicle by making the fuel, ignition, or starting system inoperative; or 3) An external steering wheel locking device; or 4) Vehicle Recovery System; or 5) All glass windows permanently etched with the vehicle identification number. Rule 10 Coverage Limits Available BODILY INJURY PROPERTY DAMAGE MEDICAL PAYMENTS UNINSURED MOTORIST 10,000/20,000 10,000 1,000 10,000/20,000 15,000/30,000 25,000 2,000 15,000/30,000 25,000/50,000 50,000 3,000 25,000/50,000 50,000/100, ,000 5,000 50,000/100, ,000/300, ,000/300, ,000/500, ,000/500,000 Uninsured Motorists Coverage Uninsured Motorists coverage premiums are not subject to classification rating or modification by any rating plan, other than the applicable increased limits factor, insurance score factor, and the payment plan discount. 1. STACKED OPTION-must be afforded at limits equal to the bodily injury liability limits, under every auto liability policy providing bodily injury liability coverage. This insurance must apply to all vehicles insured on the policy for bodily injury liability coverage. EXCEPTIONS: a. The named insured may, by written agreement on an approved form, reject this coverage or select lower limits. b. The written agreement to reject this coverage or select lower limits is binding with respect to any other policy which renews, extends, changes, supersedes or replaces an existing policy with the same liability limits, unless the named insured requests this coverage or higher limits in writing. 06/1/07 NB Auto Rules - 10 FL 06/1/07 RB

58 AUTO CLUB INSURANCE COMPANY OF 2. NON-STACKED OPTION-the option to select non-stacked Uninsured Motorists coverage on all vehicles insured under the same policy may be offered to the named insured. The named insured, by written agreement on an approved form, may select this coverage. The written agreement to select this coverage or select lower limits is binding with respect to any other policy which renews, extends, changes, supersedes, or replaces an existing policy with the same liability limits, unless the named insured requests this coverage or higher limits in writing. If the named insured does not elect the non-stacked option, the standard (stacked) coverage applies. The insurer shall at least annually notify the named insured of his or her options as to Uninsured Motorists coverage. Premiums for Stacked or Non-Stacked coverage are displayed on the Base Rates & Expense Fees pages. Damage To Your Auto Coverage 1. Collision may not be written without Other Than Collision coverage. 2. To calculate the premium for an optional Collision deductible choose the applicable factor in the rate section. 3. To calculate the rate for an optional Other Than Collision deductible choose the applicable factor in the rate section. 4. Refer to Rating Logic for premium calculations. Personal Injury Protection Personal Injury Protection (PIP) coverage is mandatory in the state of Florida. Basic Personal Injury Protection coverage provides for 80% of Medical Expenses and 60% of Work Loss up to a limit of $10,000 per person. Deductibles up to $1,000 are required to be offered, but may be rejected. Full coverage premiums are shown in the Base Rates & Expense Fees pages. Basic Personal Injury Protection may be coordinated with the following options: Deductible Options PIP deductible options are listed in the Auto Rate Pages. Multiply the applicable Deductible Factor by the full Personal Injury Protection Territorial Base Premium shown on Base Rates & Expense Fees pages. Work Loss Exclusion Work Loss may be excluded from Basic Personal Injury Protection. Multiply the applicable factor to the full Personal Injury Protection Territorial Base Premium shown on Base Rates and Expense Fees pages. Additional Personal Injury Protection If deductible insurance for Personal Injury Protection is not selected by the named insured, the Additional Personal Injury Protection option is available. Additional Personal Injury Protection provides higher limits of Personal Injury Protection. Both Basic and 07/07/08 NB Auto Rules - 11 FL 07/07/08 RB

59 AUTO CLUB INSURANCE COMPANY OF Extended Personal Injury Protection must be included. This option is available only for those insureds whose prior policy contained this coverage. It may not be added to an existing policy. A copy of the previous policy Declaration Page must accompany the application. The factor is multiplied by the Territorial Base Personal Injury Protection premium. Extended Personal Injury Protection If deductible insurance for Personal Injury Protection is not selected by the named insured, the Extended Personal Injury Protection option is available to the named insured. Extended Personal Injury Protection provides 100% Medical Expenses and 80% Work Loss coverages. This option is available only for those insureds whose prior policy contained this coverage. It may not be added to an existing policy. A copy of the previous policy Declaration Page must accompany the application. The factor is multiplied by the Additional Personal Injury Protection premium. Rule 11 Certified Risks Financial Responsibility Law If a certificate of insurance is required to be filed on a risk to comply with the requirements of the Automobile Financial Responsibility Law, the Company, and not the agent, will make the filing. Rule 12 Additional Coverages Additional Equipment Additional Equipment means any of the following equipment, which is permanently attached to the insured s automobile and not installed by the vehicle manufacturer. Electronic equipment Tires, wheels, any exterior surface equipment, or any interior equipment or furnishings, or modification thereto Engine, transmission, or suspension parts, or modification thereto Additional equipment also includes custom paint or resurfacing that exceeds the cost of the standard surface finish applied by the vehicle manufacturer. The policy provides physical damage coverage for up to $1,000 per loss for additional equipment that is permanently attached to the insured s vehicle, less the applicable deductible. Increased limits for additional equipment coverage may be purchased in $1,000 increments, up to $15,000. Increased limits for additional equipment coverage are only available on vehicles where Collision and Other Than Collision coverages are purchased. The following equipment or items do not qualify for coverage under the policy and additional coverage cannot be purchased: Any equipment used for the detection or evasion of any speed measuring equipment used by law enforcement Items designed for use with electronic equipment (e.g., CDs, DVDs, tapes, etc.) Note: Vehicles with structural, mechanical and/or physical alterations that are illegal and/or race-inspired should be referred to Underwriting for review. 07/07/08 NB Auto Rules - 12 FL 07/07/08 RB

60 AUTO CLUB INSURANCE COMPANY OF Rental Reimbursement Coverage for reimbursement of rental car expenses associated with covered losses is available when Collision and/or Other Than Collision coverages are purchased. Rental Reimbursement may be selected on a Per Automobile basis. If Rental Reimbursement coverage is elected on more than one vehicle, the limits must be the same on each vehicle. Rule 13 Liability Symbol Liability Symbol Factors are applicable to Model Year 1998 and later vehicles. Two Liability Symbol Factors are provided for each vehicle. One is applicable to Bodily Injury & Property Damage and the other is applicable to Personal Injury Protection and Medical Payments. The symbols are displayed on a vehicle series basis, and apply to all vehicles (all VINs) in a vehicle series. The Liability Symbols do not vary by model year of vehicle unless otherwise noted. Apply the applicable Liability Model Year Symbol Factor following the Order of Calculation. If the vehicle is a 1998 and later model year and a Liability Symbol Factor is not found in the chart, use a symbol 300 Bodily Injury & Property Damage Symbol and a symbol 500 Personal Injury Protection and Medical Payments Symbol, both attribute to a factor of 1.00 until Auto Club Insurance Company of Florida publishes a symbol for this vehicle type. 07/07/08 NB Auto Rules - 13 FL 07/07/08 RB

61 AUTO CLUB INSURANCE COMPANY OF Rule 14 Physical Damage Symbols Refer to the Symbol and Identification Section of the ISO Manual under Rating Symbol and Code for the appropriate Symbol. If no Symbol is shown in the ISO Manual, the Symbol shall be determined from the cost new to the original retail purchaser. MANUFACTURER S SUGGESTED RETAIL PRICE 1989 AND PRIOR SYMBOL 1990 AND SUBSEQUENT ABOVE A ,000 27B 90, ,000 27C 100, ,000 27D 110, ,000 07/07/08 NB Auto Rules - 14 FL 07/07/08 RB

62 AUTO CLUB INSURANCE COMPANY OF Rule 15 Named Driver Exclusion Surcharge A Named Driver Exclusion is available on risks that would otherwise not qualify for coverage in our program. The Named Driver Exclusion is not available on PIP/PD only policies. If a policy contains additional coverages including Liability and/or Physical Damage, the Named Driver Exclusion Form may be added to exclude a driver. This form should be added on any driver who has information contained on their Motor Vehicle Report (MVR) that would disqualify them from coverage or for failure to meet our Underwriting Guidelines. A 10% surcharge, on each vehicle, is applied to the Personal Injury Protection and Property Damage coverages for excluded drivers. 07/07/08 NB Auto Rules - 15 FL 07/07/08 RB

63 AUTO CLUB INSURANCE COMPANY OF ADDITIONAL COVERAGES SECTION AUTO ENDORSEMENTS The following endorsements are available and may be added either automatically or as an option to eligible Automobile policies. A general description of each endorsement and any additional rules or underwriting guidelines when applicable, are explained in this section. Please review the actual endorsements for a complete description of coverages, terms, and conditions. See Rate Pages for available limits and additional premium associated with each endorsement. Additional Interest Endorsement This notice is provided to an additional insured and informs them that the insurance policy is in force and that the additional insured will be given notice of: any suspension, cancellation, or nonrenewal of the policy; or material changes to the policy affecting the named auto. The Liability coverages and limits are identified. Auto Loan / Lease Payoff Coverage Endorsement In the event of a total loss to a covered auto, this coverage pays the difference between actual cash value (ACV) and the unpaid balance of the lease or loan on a new vehicle. However, payment will not exceed 25% of the ACV of the covered vehicle. This coverage does not pay for excess mileage charges, abnormal wear and tear, any overdue lease/loan payments, collection or repossession expenses, unpaid finance charges, warranties, insurance, security deposits, carry over balances or salvage if retained by the insured. The endorsement should be reviewed for a complete explanation of the coverage provided. The insured must be the original purchaser (no previous owner) of a financed or leased vehicle from a new car dealer. Other Than Collision and Collision coverages are required. Auto Loss Payable Endorsement and Certificate of Insurance (Designated Vehicle) This notice is provided to the lienholder for the designated vehicle. This notice informs the lienholder that the insurance policy is in force, that the interests of the lienholder are protected, and that the lienholder will be given notice of termination or suspension of the policy. The Physical Damage coverages and deductibles are identified. Auto Loss Payable Endorsement and Certificate of Insurance (Stated Equipment) This notice is provided to the lienholder for the stated equipment. This notice informs the lienholder that the insurance policy is in force, that the interests of the lienholder are protected, and that the lienholder will be given notice of termination or suspension of the policy. The Physical Damage coverages and deductibles are identified. Collision Deductible Waiver Endorsement This endorsement explains when the collision deductible will not be applied to an auto accident and should be reviewed for a complete explanation of the applicable criteria. Collision coverage is required. 06/1/07 NB Auto Endorsements - 1 FL 06/1/07 RB

64 AUTO CLUB INSURANCE COMPANY OF Exclusion of Named Driver Endorsement This endorsement excludes Bodily Injury, Medical Payments, Uninsured Motorist, and Physical Damage coverages when an insured auto is being operated by the excluded named driver. In addition, when an insured auto is being operated by the excluded named driver, Personal Injury Protection and Property Damage coverages are restricted to the minimum financial responsibility limits under the Motor Vehicle Laws of the State of Florida. Leased Auto Endorsement (Certificate of Insurance) This notice is provided to a lessor, who is the registered owner. This notice informs the lessor that the insurance policy is in force and that the lessor will be given notice of: any suspension, cancellation, or nonrenewal of the policy; or material changes to the policy affecting the named auto. The Liability coverages and limits are identified. Leased Auto Endorsement (Auto Loss Payable Endorsement and Certificate of Insurance) This notice is provided to a lessor, who is the registered owner and lienholder. This notice informs the lessor / lienholder that the insurance policy is in force, that the interests of the lessor / lienholder are protected, and that the lessor / lienholder will be given notice of: any suspension, cancellation, or nonrenewal of the policy; or material changes to the policy affecting the named auto. The Liability coverages and limits are identified. The Physical Damage coverages and deductibles are also identified. Named Non-Owner Coverage Endorsement Existing package policies may only be converted to named non-owner status when all automobiles insured under the policy are either sold or deemed a total loss and the insured is not retaining salvage, provided the insured: owns no other automobiles; and needs coverage before taking possession of another automobile. Repair or Replacement Coverage Endorsement In the event of a total loss to a covered auto, this coverage will pay for the cost of a new vehicle of the same make and model or similar type or quality. The endorsement should be reviewed for a complete explanation of the coverage provided. The insured must be the original purchaser (no previous owner) of a new vehicle from a new car dealer. This applies only until the vehicle is 5 years old date determined by subtracting model year from current year. For new business, the vehicle must have been purchased within 12 months of date of application. For existing business, the new vehicle must be added within 30 days of purchase. This endorsement is not available for leased vehicles. Other Than Collision and Collision coverages are required. 06/1/07 NB Auto Endorsements - 2 FL 06/1/07 RB

65 AUTO CLUB INSURANCE COMPANY OF Non Hurricane Rating Base Rates H3 648 H3 Deluxe 778 H3 Ultra 810 H6 223 HOMEOWNERS RATES SECTION 07/07/08 NB Homeowner Rates- 1 FL 07/07/08 RB

66 Non Hurricane Rating Factors AUTO CLUB INSURANCE COMPANY OF Non Hurricane Territory H3 Factor H6 Factor Non Hurricane Territory H3 Factor H6 Factor /1/07 NB Homeowner Rates- 2 FL 11/1/07 RB

67 Non Hurricane Protection Class Factors AUTO CLUB INSURANCE COMPANY OF Protection Class Factors Form: H3 Form: H6 Protection Class Brick Frame Protection Class Brick Frame /1/07 NB Homeowner Rates- 3 FL 11/1/07 RB

68 Non Hurricane HO3 Amount of Insurance AUTO CLUB INSURANCE COMPANY OF Form: H3 Amount of Insurance Factor $15, $20, $25, $30, $35, $40, $45, $50, $55, $60, $65, $70, $75, $80, $85, $90, $95, $100, $110, $120, $130, $140, $150, $160, $170, $180, $190, $200, $250, $300, $350, $400, $450, $500, $550, $600, $650, $700, $750, $1, /1/07 NB Homeowner Rates- 4 FL 11/1/07 RB

69 Non Hurricane HO6 Rating Factor Groups AUTO CLUB INSURANCE COMPANY OF Form: H6 Amount of Insurance Factor $6, $7, $8, $9, $10, $15, $20, $25, $30, $35, $40, $45, $50, $55, $60, $65, $70, $75, $85, $95, $100, $110, $120, $130, $140, $150, $200, $250, $300, $1, /1/07 NB Homeowner Rates- 5 FL 11/1/07 RB

70 Non Hurricane Deductible Factors AUTO CLUB INSURANCE COMPANY OF Form: H3 and H6 Deductible Factors Deductible Amount of Insurance $500 $1,000 $1,500 $2,500 $5,000 $10,000 < $100, $100,000 - $149, $150,000 - $199, $200,000 - $249, $250,000 - $299, $300,000 - $349, $350,000 - $399, $400,000 - $449, $450,000 - $499, $500, /1/07 NB Homeowner Rates- 6 FL 11/1/07 RB

71 Non Hurricane Underwriting Tier Categories Tier Factor A 0.95 B 1.00 C 1.05 J 1.00 K 1.05 L 1.10 S 1.05 T 1.10 U 1.15 AUTO CLUB INSURANCE COMPANY OF 11/1/07 NB Homeowner Rates- 7 FL 11/1/07 RB

72 AUTO CLUB INSURANCE COMPANY OF Non Hurricane Protective Device Discount Factor Groups Form: H3 and H6 Protective Device Discount Factor Protective Device Factor a. Smoke Alarm on Every Floor 0.01 b. Deadbolt Locks 0.02 c. Fire Extinguisher 0.01 d. Local Burglar Alarm 0.02 e. Local Fire Alarm 0.02 f. Central Station Burglar Alarm 0.08 g. Central Station Fire Alarm 0.08 h. Automatic Sprinklers in All Areas 0.10 i. Automatic Sprinklers in All Areas 0.05 Except Attics, Closets, and Bathrooms Note: only one of d. or f., one of e. or g., or one of h. or i. may apply Protective Device Discount Factor = 1 - (a.+ b.+ c.+ (d. or f.) + (e. or g.) + (h. or i.)) Maximum Protective Device Discount is 20%. 11/1/07 NB Homeowner Rates- 8 FL 11/1/07 RB

73 AUTO CLUB INSURANCE COMPANY OF Non Hurricane Age / Renovated Home and Condo Factors Age H3 H Age = Policy effective year less Year Built 11/1/07 NB Homeowner Rates- 9 FL 11/1/07 RB

74 AUTO CLUB INSURANCE COMPANY OF Renovated Home Factors (only apply if home is greater than 10 years old) Form: H3 only H3 A B C D Renovation Age* Roof Plumbing Electrical Heating & Cooling System Total** < Add factors from columns A, B, C, & D then subtract from Age Factor based on Year Built Final Age / Renovation Factor = Age (A+B+C+D) *Renovation age equals policy effective year less renovation year **If all components are the same age. 11/1/07 NB Homeowner Rates- 10 FL 11/1/07 RB

75 AUTO CLUB INSURANCE COMPANY OF Non Hurricane Insurance Score Factors Insurance Score Factor Form: H3 and H6 Level Score Factor 1 >= <= (Deny Permission) N/A (No Hit/Thin File) N/A 0.90 Non Hurricane Home Experience Rating Plan Home Experience Rating Plan Claim Surcharge Table for Claims in the Last Three Years Other + Water Water Other Fire, Theft, Liability, Sinkhole Number of Chargeable Claims Note: Claim is chargeable if it is greater than $500 and occurred within the last three years. This does not include catastrophe or act of God claims. Primary / Secondary / Seasonal Endorsement Factor Primary 1.00 Secondary 1.10 Seasonal /1/07 NB Homeowner Rates- 11 FL 11/1/07 RB

76 Non Hurricane Other Rating Factors AUTO CLUB INSURANCE COMPANY OF Form: H3 and H6 Other Rating Factors Factor Senior Discount 0.95 Note: Senior means 50 years of age or older Fortified Home Discount 0.95 Wind Exclusion Factor 0.95 Form: H6 Number of Units Factor Non Hurricane Other Coverage Factors Condo Unit Coverage - Coverage A Increased Limits (Form H6) Form H6 Premium: $5.00 per $1,000 of additional Coverage A Additional Structures - Residence Premises - Coverage B Increased Limits (Form H3) Form H3 Premium: $2.00 per $1,000 of additional Coverage B Personal Property - Coverage C Increased Limits Form % Included with Form Increased Premium Over % Included Per $1,000 of Additional Coverage C H3 50% $2.00 H3 w/deluxe 60% $2.10 H3 w/ultra 70% $2.10 H6 N/A Based on selected limit 11/1/07 NB Homeowner Rates- 12 FL 11/1/07 RB

77 AUTO CLUB INSURANCE COMPANY OF Additional Expenses - Coverage D Increased Limits Form % Included with Form Increased Premium Over % Included Per $1,000 of Additional Coverage D H3 10% $5.00 H3 w/ Deluxe 15% $5.00 H3 w/ Ultra 20% $5.00 H6 N/A $5.00 Personal Liability and Medical Payments to Others Coverage E & F Increased Limits Coverage E $200,000 $300,000 $500,000 H3 $10 $20 $30 H3 w/ Deluxe incl. $10 $20 H3 w/ Ultra incl. incl. $10 H6 $10 $20 $30 Coverage F $2,000 $3,000 $5,000 H3 $3 $6 $12 H3 w/ Deluxe incl. $3 $6 H3 w/ Ultra incl. incl. incl. H6 $3 $6 $12 11/1/07 NB Homeowner Rates- 13 FL 11/1/07 RB

78 AUTO CLUB INSURANCE COMPANY OF H-32 Unit-Owners Building Property Special Coverage (H-6) Form H-6 Premium: $2.00 per $1,000 of Coverage A H-35 Loss Assessment Coverage Limit $1,000 $5,000 $10,000 H3 $9 $24 $30 H3 w/ Deluxe incl. $15 $21 H3 w/ Ultra incl. $15 $21 H6 $9 $24 $30 H-42 Office, Professional, Private School or Studio Occupancy Described - Residence Premises All Forms Coverage E $100,000 $200,000 Coverage F $1,000 $2,000 $3,000 $5,000 $1,000 $2,000 $3,000 $5,000 Premium $12 $14 $16 $20 $13 $15 $17 $21 Coverage E $300,000 $500,000 Coverage F $1,000 $2,000 $3,000 $5,000 $1,000 $2,000 $3,000 $5,000 Premium $14 $16 $18 $22 $16 $18 $20 $24 H-48 Additional Limit on Other Structures All Forms Premium: $5.00 per $1,000 of increase H-53 Additional Limit on Credit Card, Fund Transfer Card, Forgery, and Counterfeit Money Coverage All Forms ($500 included in base policy) Total Limit Add'l Limit Premium $2,500 $2,000 $3 $5,000 $4,500 $4 H-55 Identity Fraud Expense Coverage Form Premium H3 $25 H3 w/ Deluxe $25 H3 w/ Ultra incl. H6 $25 11/1/07 NB Homeowner Rates- 14 FL 11/1/07 RB

79 H-61 Scheduled Personal Property All forms AUTO CLUB INSURANCE COMPANY OF Proposed Rate Class (Per $100) Jewelry $1.35 Cameras $2.00 Silverware $0.45 Fine Arts (Excluding Breakage) $0.50 Furs $0.40 Firearms $2.00 Musical Instruments $0.60 Golf Equipment $1.50 Rare and Current Coins $1.80 Postage Stamps $0.80 H-63 Fine Arts Breakage Premium: Add $0.50/$100 coverage to include fine arts breakage H-66 Scheduled Personal Property (Named Perils) All Forms Proposed Rate Class (Per $100) Sports Cards $1.00 Campaign Buttons $1.00 Movie Posters $1.00 Comic Books $1.00 Other $1.50 H-68 Personal Property Coverage Exclusion Factor: 0.90 H-75 Animal Liability Form Premium H3 $75 H3 w/ Deluxe $75 H3 w/ Ultra $75 H6 $75 H-82 Personal Injury Coverage E $100,000 $200,000 $300,000 $500,000 H3 $15 $17 $20 $23 H3 w/ Deluxe incl. incl. $3 $6 H3 w/ Ultra incl. incl. incl. $3 H6 $15 $17 $20 $23 11/1/07 NB Homeowner Rates- 15 FL 11/1/07 RB

80 AUTO CLUB INSURANCE COMPANY OF H-87 Dwelling Under Construction Special Coverage Premium: $75 H-109 Golf Cart Coverage All Forms (Section I and II) Premium: $75/cart H-256 Building Ordinance or Law (Form H6) Form 25% Limit Factor 50% Limit Factor H H-257 Building Ordinance or Law (Form H3) 50% Limit Form 25% Limit Factor Factor H H3 w/ Deluxe H3 w/ Ultra H-280 Extended Replacement Cost (Form H3) Provides an additional 25% above Coverage A limit if certain provisions met Form Factor H H3 w/ Deluxe incl. H3 w/ Ultra incl. H-290/H-299 Personal Property Replacement Cost H-290 (Form H3); H-299 (Form H6) Form Factor H H3 w/ Deluxe incl. H3 w/ Ultra incl. H /1/07 NB Homeowner Rates- 16 FL 11/1/07 RB

81 H-363 / H-366 Sinkhole Coverage Territory H3 Factor H6 Factor AUTO CLUB INSURANCE COMPANY OF H-430 Increased Limit on Mold, Fungus, Wet Rot, Dry Rot, or Bacteria Coverage Aggregate Limit of Liability Form 10,000 25,000 50,000 H3 incl. $107 $155 H3 w/ Deluxe incl. $107 $155 H3 w/ Ultra incl. $107 $155 H6 incl. $107 $155 H-363 / H-366 Sinkhole Coverage Territory H3 Factor H6 Factor /07/08 NB Homeowner Rates- 17 FL 07/07/08 RB

82 Hurricane Rating AUTO CLUB INSURANCE COMPANY OF Hurricane Base Rates Hurricane Base Rates Table H-2 Form H3 Form H6 Hurricane Territory Coverage A Base Rate Coverage B Base Rate Coverage C Base Rate Coverage D Base Rate Coverage A Base Rate Coverage B Base Rate Coverage C Base Rate Coverage D Base Rate /07/08 NB Homeowner Rates- 18 FL 07/07/08 RB

83 AUTO CLUB INSURANCE COMPANY OF Hurricane Base Rates Table H-2 Form H3 Form H6 Hurricane Territory Coverage A Base Rate Coverage B Base Rate Coverage C Base Rate Coverage D Base Rate Coverage A Base Rate Coverage B Base Rate Coverage C Base Rate Coverage D Base Rate Hurricane Deductible & Construction Factors Table H-3 Deductible Factors HO-3 Deductible Wind Speed Zone $500 2% 5% 10% <= HO-6 Deductible Wind Speed Zone $500 2% 5% 10% <= Construction Factors Table H-4 Construction Type Wind Speed Zone Frame Masonry Reinforced Masonry <= /07/08 NB Homeowner Rates- 19 FL 07/07/08 RB

84 Hurricane Mitigation Rating Factors AUTO CLUB INSURANCE COMPANY OF Mitigation Rating Table for Construction Built prior to January 1, 2002 (with comprehensive inspection) Terrain B Roof Shape Other Hip Roof Cover Non-FBC Equivalent Roof Deck Attachment A B C or D Roof-Wall Connection Toe Nails Clips Single Wraps Double Wraps Toe Nails Clips Single Wraps Double Wraps Toe Nails Clips Single Wraps Double Wraps Opening Protection No SWR SWR No SWR SWR None Basic Hurricane None Basic Hurricane None Basic Hurricane None Basic Hurricane None Basic Hurricane None Basic Hurricane None Basic Hurricane None Basic Hurricane None Basic Hurricane None Basic Hurricane None Basic Hurricane None Basic Hurricane /07/08 NB Homeowner Rates- 20 FL 07/07/08 RB

85 AUTO CLUB INSURANCE COMPANY OF Mitigation Rating Table for Construction Built prior to January 1, 2002 (with comprehensive inspection) Terrain B Roof Shape Other Hip Roof Cover FBC Equivalent Roof Deck Attachment A B C or D Roof-Wall Connection Toe Nails Clips Single Wraps Double Wraps Toe Nails Clips Single Wraps Double Wraps Toe Nails Clips Single Wraps Double Wraps Opening Protection No SWR SWR No SWR SWR None Basic Hurricane None Basic Hurricane None Basic Hurricane None Basic Hurricane None Basic Hurricane None Basic Hurricane None Basic Hurricane None Basic Hurricane None Basic Hurricane None Basic Hurricane None Basic Hurricane None Basic Hurricane /07/08 NB Homeowner Rates- 21 FL 07/07/08 RB

86 AUTO CLUB INSURANCE COMPANY OF Mitigation Rating Table for Construction Built prior to January 1, 2002 (with comprehensive inspection) Terrain C Roof Shape Other Hip Roof Cover Non-FBC Equivalent Roof Deck Attachment A B C or D Roof-Wall Connection Toe Nails Clips Single Wraps Double Wraps Toe Nails Clips Single Wraps Double Wraps Toe Nails Clips Single Wraps Double Wraps Opening Protection No SWR SWR No SWR SWR None Basic Hurricane None Basic Hurricane None Basic Hurricane None Basic Hurricane None Basic Hurricane None Basic Hurricane None Basic Hurricane None Basic Hurricane None Basic Hurricane None Basic Hurricane None Basic Hurricane None Basic Hurricane /07/08 NB Homeowner Rates- 22 FL 07/07/08 RB

87 AUTO CLUB INSURANCE COMPANY OF Mitigation Rating Table for Construction Built prior to January 1, 2002 (with comprehensive inspection) Terrain C Roof Shape Other Hip Roof Cover FBC Equivalent Roof Deck Attachment A B C or D Roof-Wall Connection Toe Nails Clips Single Wraps Double Wraps Toe Nails Clips Single Wraps Double Wraps Toe Nails Clips Single Wraps Double Wraps Opening Protection No SWR SWR No SWR SWR None Basic Hurricane None Basic Hurricane None Basic Hurricane None Basic Hurricane None Basic Hurricane None Basic Hurricane None Basic Hurricane None Basic Hurricane None Basic Hurricane None Basic Hurricane None Basic Hurricane None Basic Hurricane /07/08 NB Homeowner Rates- 23 FL 07/07/08 RB

88 AUTO CLUB INSURANCE COMPANY OF Mitigation Rating Table for Construction Built prior to January 1, 2002 (with comprehensive inspection) Reinforced Concrete Roof Deck Roof Shape Other Hip Terrain Opening Protection No SWR SWR No SWR SWR None 0.18 Terrain B Basic 0.16 Hurricane 0.16 None 0.20 Terrain C Basic 0.12 Hurricane 0.12 Mitigation Rating Table for Construction prior to January 1, 2002 (without comprehensive inspection) Opening Opening Roof Shape Terrain Factor Roof Shape Terrain Factor Protection Protection Other B None 1.00 Other C None 1.00 Other B Basic 0.65 Other C Basic 0.71 Other B Hurricane 0.56 Other C Hurricane 0.61 Hip B None 0.53 Hip C None 0.72 Hip B Basic 0.38 Hip C Basic 0.44 Hip B Hurricane 0.34 Hip C Hurricane 0.36 Roof Deck Other Roof Deck Reinforced Concrete Roof Deck Terrain FBC Wind Speed Location Mitigation Rating Table for Construction after January 1, 2002 Other Roof Shape No Opening Opening Protection Protection Wind Speed Design Internal Pressure Design WDBR No SWR SWR No SWR SWR No Opening Protection No SWR Hip Roof Shape SWR Opening Protection No SWR B 100 >=100 Encl No B 110 >=110 Encl No B >=120 >=120 Encl No B or C >=120 >=120 Encl / Part. Encl Yes HVHZ Encl Yes B Any Encl No B Any Encl / Part. Encl Yes C Any Encl / Part. Encl Yes HVHZ Any Encl Yes 0.11 SWR 07/07/08 NB Homeowner Rates- 24 FL 07/07/08 RB

89 Building Code Effectiveness Grading AUTO CLUB INSURANCE COMPANY OF Building Code Effectiveness Grade Table H-11 BCEG Hurricane Territory /07/08 NB Homeowner Rates- 25 FL 07/07/08 RB

90 Building Code Effectiveness Grading Cont. AUTO CLUB INSURANCE COMPANY OF Hurricane Territory Hurricane Other Coverages Extended Replacement Cost on Dwelling Personal Property Replacement Cost Table H-5 Table H-6 Form Factor Endorsement Factor H H H3 Deluxe 1.00 H3 Deluxe 1.00 H3 Ultra 1.00 H3 Ultra 1.00 H6 N/A H Policy Type (HO-3 Only) Building Ordinance or Law Coverage Table H-7 Table H-8 (all forms) Endorsement Factor Endorsement Factor Basic 1.00 None 1.00 Deluxe % (H3) 1.10 Ultra % (H3) % (H6) % (H6) 1.10 Primary / Secondary / Seasonal Table H-9 Endorsement Factor Primary 1.00 Secondary 1.10 Seasonal /07/08 NB Homeowner Rates- 26 FL 07/07/08 RB

91 AUTO CLUB INSURANCE COMPANY OF HO-49 Screened Enclosure Windstorm and Hurricane Windstorm Coverage Rate per $1000 of Coverage Table H-11 HO-3 Deductible Wind Speed Zone $500 2% 5% 10% <= HO-149 Screened Enclosure Windstorm and Hurricane Windstorm Coverage Rate per $1000 of Coverage Table H-11 HO-6 Deductible Wind Speed Zone $500 2% 5% 10% <= /07/08 NB Homeowner Rates- 27 FL 07/07/08 RB

92 Automobile base rates and expense fees BI COVERAGE 10/20 PD COVERAGE 10,000 AUTO CLUB INSURANCE COMPANY OF AUTOMOBILE RATING SECTION MP COVERAGE 1000 PIP COVERAGE BASIC OTHER THAN COLLISION COVERAGE $100 DED COLLISION COVERAGE $200 DED UM/UIM COVERAGE 10/20 NON- STACKED STACKED EXP FEES BASE RATES BY TERRITORY TERR BI PD MP PIP OTC COL UM/UIM COVERAGE /07/08 NB Auto Rates - 1 FL 07/07/08 RB

93 Terr BI COVERAGE 10/20 PD COVERAGE 10,000 AUTO CLUB INSURANCE COMPANY OF MP COVERAGE 1000 PIP COVERAGE BASIC OTHER THAN COLLISION COVERAGE $100 DED COLLISION COVERAGE $200 DED UM/UIM COVERAGE 10/20 NON- STACKED STACKED /07/08 NB Auto Rates - 2 FL 07/07/08 RB

94 Single Female Classification Codes AGE CODE AUTO CLUB INSURANCE COMPANY OF BODILY INJURY & PROPERTY DAMAGE FACTOR PERSONAL INJURY PROTECTION & MEDICAL PAYMENTS FACTOR OTHER THAN COLLISION FACTOR COLLISION FACTOR <=16 SF SF SF SF SF SF SF SF SF SF SF SF SF SF SF SF SF SF SF SF SF SF SF SF SF SF SF SF SF SF SF SF SF SF SF SF SF SF SF /07/08 NB Auto Rates - 3 FL 07/07/08 RB

95 AUTO CLUB INSURANCE COMPANY OF AGE CODE BODILY INJURY & PROPERTY DAMAGE FACTOR PERSONAL INJURY PROTECTION & MEDICAL PAYMENTS FACTOR OTHER THAN COLLISION FACTOR 07/07/08 NB Auto Rates - 4 FL 07/07/08 RB COLLISION FACTOR 55 SF SF SF SF SF SF SF SF SF SF SF SF SF SF SF SF SF SF SF SF SF SF SF SF SF SF SF SF SF SF SF SF SF SF SF SF SF SF SF SF SF SF SF SF SF

96 Married Female Classification Codes AGE CODE AUTO CLUB INSURANCE COMPANY OF BODILY INJURY & PROPERTY DAMAGE FACTOR PERSONAL INJURY PROTECTION & MEDICAL PAYMENTS FACTOR OTHER THAN COLLISION FACTOR COLLISION FACTOR <=16 MF MF MF MF MF MF MF MF MF MF MF MF MF MF MF MF MF MF MF MF MF MF MF MF MF MF MF MF MF MF MF MF MF MF MF MF MF MF MF MF MF MF MF MF MF MF MF /07/08 NB Auto Rates - 5 FL 07/07/08 RB

97 AGE CODE AUTO CLUB INSURANCE COMPANY OF BODILY INJURY & PROPERTY DAMAGE FACTOR PERSONAL INJURY PROTECTION & MEDICAL PAYMENTS FACTOR OTHER THAN COLLISION FACTOR COLLISION FACTOR 63 MF MF MF MF MF MF MF MF MF MF MF MF MF MF MF MF MF MF MF MF MF MF MF MF MF MF MF MF MF MF MF MF MF MF MF MF MF /07/08 NB Auto Rates - 6 FL 07/07/08 RB

98 Single Male Classification Codes AGE CODE AUTO CLUB INSURANCE COMPANY OF BODILY INJURY & PROPERTY DAMAGE FACTOR PERSONAL INJURY PROTECTION & MEDICAL PAYMENTS FACTOR OTHER THAN COLLISION FACTOR COLLISION FACTOR <=16 SM SM SM SM SM SM SM SM SM SM SM SM SM SM SM SM SM SM SM SM SM SM SM SM SM SM SM SM SM SM SM SM SM SM SM SM SM SM SM SM SM SM SM SM SM SM SM /07/08 NB Auto Rates - 7 FL 07/07/08 RB

99 AGE CODE AUTO CLUB INSURANCE COMPANY OF BODILY INJURY & PROPERTY DAMAGE FACTOR PERSONAL INJURY PROTECTION & MEDICAL PAYMENTS FACTOR OTHER THAN COLLISION FACTOR COLLISION FACTOR 63 SM SM SM SM SM SM SM SM SM SM SM SM SM SM SM SM SM SM SM SM SM SM SM SM SM SM SM SM SM SM SM SM SM SM SM SM SM /07/08 NB Auto Rates - 8 FL 07/07/08 RB

100 Married Male Classification Codes AGE CODE AUTO CLUB INSURANCE COMPANY OF BODILY INJURY & PROPERTY DAMAGE FACTOR PERSONAL INJURY PROTECTION & MEDICAL PAYMENTS FACTOR OTHER THAN COLLISION FACTOR COLLISION FACTOR <=16 MM MM MM MM MM MM MM MM MM MM MM MM MM MM MM MM MM MM MM MM MM MM MM MM MM MM MM MM MM MM MM MM MM MM MM MM MM MM MM MM MM MM MM MM MM MM MM /07/08 NB Auto Rates - 9 FL 07/07/08 RB

101 AGE CODE BODILY INJURY & PROPERTY DAMAGE FACTOR AUTO CLUB INSURANCE COMPANY OF PERSONAL INJURY PROTECTION & MEDICAL PAYMENTS FACTOR OTHER THAN COLLISION FACTOR COLLISION FACTOR 63 MM MM MM MM MM MM MM MM MM MM MM MM MM MM MM MM MM MM MM MM MM MM MM MM MM MM MM MM MM MM MM MM MM MM MM MM MM All Other Classification (more vehicles than drivers) All AV Other 07/07/08 NB Auto Rates - 10 FL 07/07/08 RB

102 Annual Mileage Factors (Per Vehicle) AUTO CLUB INSURANCE COMPANY OF Annual Mileage Mature Driver Age 60+ Factor All Other Driver Factor Unknown Operator Type Principal Operator 1.00 Occasional Youthful Operator.85 Student Away.85 Vehicle Use Pleasure Use 1.00 To/From Work or School 1.10 Business Use 1.40 Multi-car Single Vehicle 1.00 Multiple Vehicles.80 07/07/08 NB Auto Rates - 11 FL 07/07/08 RB

103 AUTO CLUB INSURANCE COMPANY OF Vehicle Driver Matrix Number of Vehicles Number of Drivers Excluded Drivers Factor 1 1 N Y N Y N Y N Y N Y N Y N Y N Y N Y N Y N Y N Y N Y N Y N Y N Y Violations Surcharge Factors Points per Driver Most Current Violation occurred 12 months of policy effective date Most Current Violation occurred >12 but 24 months of policy effective date Most Current Violation occurred >24 but 36 months of policy effective date Most Current Violation occurred >36 months of policy effective date /07/08 NB Auto Rates - 12 FL 07/07/08 RB

104 AUTO CLUB INSURANCE COMPANY OF At-Fault Accident Surcharges - Mature Driver Age 60+ Number of At-Fault Accidents per Driver Most Current Accident occurred 12 months prior Most Current Accident occurred >12 but 24 months prior Most Current Accident occurred >24 but 36 months prior Most Current Accident occurred >36 months prior At-Fault Accident Surcharges - All Other Drivers Number of At-fault Accidents per Driver Most Current Accident occurred 12 months prior Most Current Accident occurred >12 but 24 months prior Most Current Accident occurred >24 but 36 months prior Most Current Accident occurred >36 months prior Inexperienced Operator Surcharge Factors Number of Years Licensed in US or Canada Surcharge Factor Less than 1 year 1.80 At least 1 but less than 2 years 1.60 At least 2 but less than 3 years 1.40 At least 3 but less than 4 years 1.20 Licensed 4 years or more /07/08 NB Auto Rates - 13 FL 07/07/08 RB

105 Insurance Score Factors Insurance Score AUTO CLUB INSURANCE COMPANY OF Level 99/Deny Permission N/A 1.05 Level 0 No Hit/Thin File N/A 0.94 Level Level Level Level Level Level Level Level Level Level Level Level Level Level Level Level Level Level Level Level Level Level Level Level Level 25 <= Underwriting Level Factors UNDERWRITING LEVEL FACTOR UNDERWRITING LEVEL FACTOR A 1.00 G 1.35 B 1.08 H 1.46 C 1.15 I 1.55 D 1.10 J 1.50 E 1.19 K 1.62 F 1.27 L /07/08 NB Auto Rates - 14 FL 07/07/08 RB

106 Increased Limit Factors AUTO CLUB INSURANCE COMPANY OF Bodily Injury Liability Increased Limits BODILY INJURY LIMITS FACTORS 10/ / / / / / Property Damage Liability Increased Limits PD LIMITS FACTORS 10, , , , Uninsured Motorist Increased Limits Stacked and Unstacked UM LIMITS FACTORS 10/ / / / / / Medical Payments Increased Limits MP LIMITS FACTORS Physical Damage Deductible Factors Deductible Collision Factor Other Than Collision Factor /07/08 NB Auto Rates - 15 FL 07/07/08 RB

107 AUTO CLUB INSURANCE COMPANY OF Personal Injury Protection Factors PIP Deductible Amount Named Insured Only Named Insured & Dependent Resident Relatives $ $ $ Additional Personal Injury Protection If deductible insurance for Personal Injury Protection is not selected by the named insured, the Additional Personal Injury Protection option is available. Additional Personal Injury Protection provides higher limits of Personal Injury Protection. Both Basic and Extended Personal Injury Protection must be included. This option is available only for those insureds whose prior policy contained this coverage. It may not be added to an existing policy. A copy of the previous policy Declaration Page must accompany the application. The factor below is multiplied by the Territorial Base Personal Injury Protection premium. With Work Loss (Options) Limit Factor Option #1 $10, Option #2 $25, Option #3 $40, Option #4 $90, Without Work Loss (Options) Limit Factor Option #1 $10, Option #2 $25, Option #3 $40, Option #4 $90, Extended Personal Injury Protection If deductible insurance for Personal Injury Protection is not selected by the named insured, the Extended Personal Injury Protection option is available to the named insured. Extended Personal Injury Protection provides 100% Medical Expenses and 80% Work Loss coverages. This option is available only for those insureds whose prior policy contained this coverage. It may not be added to an existing policy. A copy of the previous policy Declaration Page must accompany the application. The factor below is multiplied by the Additional Personal Injury Protection premium. With Work Loss 0.50 Without Work Loss /07/08 NB Auto Rates - 16 FL 07/07/08 RB

108 AUTO CLUB INSURANCE COMPANY OF Work Loss Exclusion Work Loss may be excluded from Basic Personal Injury Protection. Multiply the applicable factor to the full Personal Injury Protection Territorial Base Premium shown on Rate Pages: Named Insured Only.90 Named Insured & Dependent Resident Relatives.85 Additional Equipment Coverage Maximum Limit Accepted -$15,000 Per Occurrence Limit Premium 1,000 $14 2,000 $28 3,000 $42 4,000 $56 5,000 $70 6,000 $84 7,000 $98 8,000 $112 9,000 $126 10,000 $140 11,000 $154 12,000 $168 13,000 $182 14,000 $196 15,000 $210 Rental Reimbursement Coverage Limit Premium Per Automobile $30 Per Day/$900 Maximum $30 $40 Per Day/$1,200 Maximum $34 $50 Per Day/$1,500 Maximum $40 07/07/08 NB Auto Rates - 17 FL 07/07/08 RB

109 Liability Symbol Vehicle Rating AUTO CLUB INSURANCE COMPANY OF BI & PD LIABILITY SYMBOL RATING FACTOR PIP & MED PAY SYMBOL /07/08 NB Auto Rates - 18 FL 07/07/08 RB

110 AUTO CLUB INSURANCE COMPANY OF Model Year Factors MODEL YEAR BODILY INJURY AND PROPERTY DAMAGE FACTOR OTHER THAN COLLISION FACTOR COLLISION FACTOR & Prior /07/08 NB Auto Rates - 19 FL 07/07/08 RB

111 AUTO CLUB INSURANCE COMPANY OF Model Years 1990 and Subsequent Physical Damage Symbol Factors SYMBOL OTHER THAN COLLISION FACTOR COLLISION FACTOR A 80,001-90, B 90, , C 100, , D 110, , For Other Than Collision symbols not shown on this page add.45 to Symbol 27D for each $10,000 over $120,000. For Collision symbols not shown on this page add.20 to Symbol 27D for each $10,000 over $120, /07/08 NB Auto Rates - 20 FL 07/07/08 RB

112 AUTO CLUB INSURANCE COMPANY OF Model Years 1989 and Prior Physical Damage Symbol Factors SYMBOL OTHER THAN COLLISION FACTOR COLLISION FACTOR Other Rating Factors Group Discount Factor Factor Bill Plan Factor Paid in Full w/ AAA 0.95 Antilock 0.98 Escrow 0.90 EMP 0.95 EFT w/ Escrow 1.00 Installments w/ Antitheft 0.98 Escrow 1.00 Good Student 0.95 Paid in Full 0.90 Named Non-Owner EFT w/ Home PIF 1.00 Installments w/ Home Driver Training 0.98 Cov Factor PIF 1.00 BI 0.40 EFT 1.00 Mature Driver 0.98 PD 0.40 Installments 1.00 PIP 1.00 Air Bags 0.98 UM 1.00 Excluded Driver 1.10 MP 1.00 Loan/Lease Payoff /07/08 NB Auto Rates - 21 FL 07/07/08 RB

113 AUTO CLUB INSURANCE COMPANY OF Repair/Replace Coverage 0.20 PMF /07/08 NB Auto Rates - 22 FL 07/07/08 RB

114 RATING LOGIC SECTION Non Hurricane Rating AUTO CLUB INSURANCE COMPANY OF Non-Hurricane Rating Algorithms H3 H6 Step # Rating Description Homeowners Deluxe* Ultra** Condo 1 Base Rate 2 Territory x x x x 3 Protection/Construction Class x x x x 4 Amount of Insurance x x x x 5 Deductible x x x x 6 Underwriting Level x x x x 7 Number of Units x 8 Unit Rented to Others x 9 Wind Exclusion x x x x 10 Protective Device Discount x x x x 11 Senior Discount x x x x 12 H-290 Personal Property Replacement Cost x x 13 Age (includes renovation factors) x x x x 14 Insurance Score Level x x x x 15 Group Association Discount x x x x 16 Homeowners Experience Rating Plan x x x x 17 Fortified Home Discount x x x 18 Building Ordinance or Law Coverage x x x x 19 Extended Replacement Cost on Dwelling x 20 Primary/Secondary/Seasonal x x x x 21 H-68 Personal Property Coverage Exclusion x 22 H-363 / H-366 Sinkhole Coverage x x x x 23 Adjusted Base Premium = = = = 24 Additional Coverages Total Annual Premium = = = = Assessments (Not considered premium and no commission is due) H3 H6 Step # Rating Description Homeowners Deluxe Ultra Condo 1A Total Annual Premium (Step 24 above) 1B Assessment Percentage x x x x 1C Flat Assessment Amounts* D Assessment Amount = = = = * Includes $2.00 FEMA Fee 11/01/07 NB Rating Logic - 1 FL 11/01/07 RB

115 AUTO CLUB INSURANCE COMPANY OF Hurricane Rating Hurricane Rating Algorithms H3 H6 Step # Rating Description Table Homeowners Condo 1 Base Premium 2 Deductible H-3 x x 3 Construction Type H-4 x x 4 Mitigation Rating H-10 x x 5 BCEG H-11 x x 6 HO-280 Extended Replacement Cost H-5 x x 7 HO-290/HO-299 Personal Property Replacement Cost H-6 x x 8 Policy Type H-7 x 9 HO-257/HO-256 Building Ordinance or Law H-8 x x 10 Primary / Secondary / Seasonal H-9 x x 11 Adjusted Base Premium = = 12 Additional Coverages Total Annual Premium = = H3 H6 Step # Rating Description Table Homeowners Condo 1A Coverage A Limit (in thousands) 1B Coverage A Base Rate H-2 x x 1C Coverage A Base Premium = = 1D Coverage B Limit (in thousands) 1E Coverage B Base Rate H-2 x x 1F Coverage B Base Premium = = 1G Coverage C Limit (in thousands) 1H Coverage C Base Rate H-2 x x 1I Coverage C Base Premium = = 1J Coverage D Limit (in thousands) 1K Coverage D Base Rate H-2 x x 1L Coverage D Base Premium = = 1M Base Premium 1C+1F+1I+1L 1C+1F+1I+1L 06/01/07 NB Rating Logic - 2 FL 06/01/07 RB

116 AUTO CLUB INSURANCE COMPANY OF Assessments (Not considered premium and no commission is due) H3 H6 Step # Rating Description Homeowners Deluxe Ultra Condo 1A Total Annual Premium (Step 24 above) 1B Assessment Percentage x x x x 1C Flat Assessment Amounts* D Assessment Amount = = = = * Includes $2.00 FEMA Fee 06/01/07 NB Rating Logic - 3 FL 06/01/07 RB

117 AUTO CLUB INSURANCE COMPANY OF Automobile Rating Logic Step Math BI PD PIP MP Base Rate Model Year * Phy Dam Symbol * Increased Limit * Deductible Factor * Liability Symbol Factor * Named Driver Exclusion * Class Factor (see below) * Annual Mileage * Prin/Occ/St. Away * Insurance Score Level * Vehicle Use * Multi-car * Vehicle/Driver * Driver Experience * Group Association Disct * Good Student Discount * Driver Training Discount * Mature Driver Discount * Air Bag Disc. * Anti-Lock Brake Disc. * Anti-Theft Device Disc. * Underwriting Level * Paid in full Disc. * Total = Additional Coverages + Expense Constant + Term Premium = UM NSTK UM STK OTC COLL Total Class Factor Math BI PD PIP MP OTC COLL Sex Age Marital Status Violation Surcharge + Accident Surcharge + Class Factor = Additional Coverages Additional PIP Multiply Additional PIP rate factor by final PIP term premium Extended PIP Multiply Extended PIP rate factor by final PIP term premium Loan/Lease Payoff 1) Multiply Loan/Lease rate factor by final OTC term premium 2) Multiply Loan/Lease rate factor by final COLL term premium 3) Add results from Steps 1) & 2) Repair/Replace 1) Multiply Repair/Replace rate factor by final OTC term premium 2) Multiply Repair/Replace rate factor by final COLL term premium 3) Add results from Steps 1) & 2) Assessments (Not considered premium and no commission is due) 06/01/07 NB Rating Logic - 4 FL 06/01/07 RB

118 AUTO CLUB INSURANCE COMPANY OF Assessments Math BI PD PIP MP UM OTC COLL Add l Cov Term Premium Assessment Percentage * Flat Assessment Amount + Assessment Amount = Package Rate Logic Step Math Term Premium Total Non Hurricane Premium + Total Hurricane Premium + Total Auto Premium + Total Assessment Fees + Total Premium = 06/01/07 NB Rating Logic - 5 FL 06/01/07 RB

119 TERRITORY SECTION Homeowners Territories by Zip Code Zip Code Non Hurricane Territory AUTO CLUB INSURANCE COMPANY OF Hurricane Territory Non Hurricane Territory Zip Code Hurricane Territory 07/07/08 NB Territories- 1 FL 07/07/08 RB

120 AUTO CLUB INSURANCE COMPANY OF Non Hurricane Territory Zip Code Hurricane Territory Non Hurricane Territory Zip Code Hurricane Territory 07/07/08 NB Territories- 2 FL 07/07/08 RB

121 AUTO CLUB INSURANCE COMPANY OF Non Hurricane Territory Zip Code Hurricane Territory Non Hurricane Territory Zip Code Hurricane Territory 07/07/08 NB Territories- 3 FL 07/07/08 RB

122 AUTO CLUB INSURANCE COMPANY OF Non Hurricane Territory Zip Code Hurricane Territory Non Hurricane Territory Zip Code Hurricane Territory 07/07/08 NB Territories- 4 FL 07/07/08 RB

123 AUTO CLUB INSURANCE COMPANY OF Non Hurricane Territory Zip Code Hurricane Territory Non Hurricane Territory Zip Code Hurricane Territory 07/07/08 NB Territories- 5 FL 07/07/08 RB

124 AUTO CLUB INSURANCE COMPANY OF Non Hurricane Territory Zip Code Hurricane Territory Non Hurricane Territory Zip Code Hurricane Territory 07/07/08 NB Territories- 6 FL 07/07/08 RB

125 AUTO CLUB INSURANCE COMPANY OF Non Hurricane Territory Zip Code Hurricane Territory Non Hurricane Territory Zip Code Hurricane Territory 07/07/08 NB Territories- 7 FL 07/07/08 RB

126 AUTO CLUB INSURANCE COMPANY OF Non Hurricane Territory Zip Code Hurricane Territory Non Hurricane Territory Zip Code Hurricane Territory 07/07/08 NB Territories- 8 FL 07/07/08 RB

127 AUTO CLUB INSURANCE COMPANY OF Non Hurricane Territory Zip Code Hurricane Territory Non Hurricane Territory Zip Code Hurricane Territory 07/07/08 NB Territories- 9 FL 07/07/08 RB

128 AUTO CLUB INSURANCE COMPANY OF Non Hurricane Territory Zip Code Hurricane Territory Non Hurricane Territory Zip Code Hurricane Territory 07/07/08 NB Territories- 10 FL 07/07/08 RB

129 Non Hurricane Territory Zip Code AUTO CLUB INSURANCE COMPANY OF Hurricane Territory Zip Code Non Hurricane Territory Hurricane Territory /07/08 NB Territories- 11 FL 07/07/08 RB

130 AUTO CLUB INSURANCE COMPANY OF Auto Territories by Zip Code Zip Code Auto Territory Zip Code Auto Territory /07/08 NB Territories- 12 FL 07/07/08 RB

131 AUTO CLUB INSURANCE COMPANY OF Zip Code Auto Territory Zip Code Auto Territory /07/08 NB Territories- 13 FL 07/07/08 RB

132 AUTO CLUB INSURANCE COMPANY OF Zip Code Auto Territory Zip Code Auto Territory /07/08 NB Territories- 14 FL 07/07/08 RB

133 AUTO CLUB INSURANCE COMPANY OF Zip Code Auto Territory Zip Code Auto Territory /07/08 NB Territories- 15 FL 07/07/08 RB

134 AUTO CLUB INSURANCE COMPANY OF Zip Code Auto Territory Zip Code Auto Territory /07/08 NB Territories- 16 FL 07/07/08 RB

135 AUTO CLUB INSURANCE COMPANY OF Zip Code Auto Territory Zip Code Auto Territory /07/08 NB Territories- 17 FL 07/07/08 RB

136 AUTO CLUB INSURANCE COMPANY OF Zip Code Auto Territory Zip Code Auto Territory /07/08 NB Territories- 18 FL 07/07/08 RB

137 AUTO CLUB INSURANCE COMPANY OF Zip Code Auto Territory Zip Code Auto Territory /07/08 NB Territories- 19 FL 07/07/08 RB

138 AUTO CLUB INSURANCE COMPANY OF Zip Code Auto Territory Zip Code Auto Territory /07/08 NB Territories- 20 FL 07/07/08 RB

139 AUTO CLUB INSURANCE COMPANY OF Zip Code Auto Territory Zip Code Auto Territory /07/08 NB Territories- 21 FL 07/07/08 RB

140 AUTO CLUB INSURANCE COMPANY OF Zip Code Auto Territory Zip Code Auto Territory /07/08 NB Territories- 22 FL 07/07/08 RB