AUTOMOBILE POLICY GEORGIA

Transcription

1 AUTOMOBILE POLICY GEORGIA P.O.Box Atlanta, GA (05/14)

2 GEORGIA PERSONAL AUTO POLICY QUICK REFERENCE This policy is a legal contract between you (the insured) and us (the Company). The policy sets forth the rights and obligations of both you and us. IT IS THEREFORE VERY IMPORTANT THAT YOU READ YOUR POLICY CAREFULLY. Beginning On Page AGREEMENT 3 DEFINITIONS 3 PART A LIABILITY COVERAGE 7 Insuring Agreement Supplementary Payments Exclusions Limit of Liability Out of State Coverage Financial Responsibility Other Insurance PART B MEDICAL PAYMENTS COVERAGE 12 Insuring Agreement Exclusions Limit of Liability Other Insurance PART C UNINSURED MOTORISTS COVERAGE 14 Insuring Agreement Exclusions Limit of Liability Other Insurance PART D COVERAGE FOR DAMAGE TO YOUR AUTO 20 Insuring Agreement Exclusions Limit of Liability Payment of Loss No Benefit to Bailee Other sources of Recovery Appraisal Loss Payee & Lienholder s Rights PART E DUTIES AFTER AN ACCIDENT OR LOSS 25 1

3 Beginning On Page PART F GENERAL PROVISIONS 27 Bankruptcy Policy Changes Fraud and/or Misrepresentation Legal Action Against Us Our Right to Recover Payment Policy Period and Territory Termination Automatic Termination Policy Void for Dishonored Down-Payment Transfer of Your Interest in This Policy Two or More Auto Policies Our Right to Recompute Premium ENDORSEMENTS 33 POLICY CONDITIONS 39 2

4 PERSONAL AUTO POLICY Please read your Personal Auto Policy. It is a binding legal contract between you and us. The Application and Declarations Page, and any endorsements issued by us, are part of the contract formed by this policy. This policy describes which vehicles and persons have coverage, and which vehicles and persons do not have coverage. It includes language that excludes, restricts and limits coverage. It also describes the duty to give us notice of an accident or loss, and to notify us about changes in vehicles or drivers in your household. IMPORTANT: Coverage does not apply under this policy for any person who does not comply with all: 1. Notice requirements; 2. Duties; and 3. Policy terms. Anyone insured under this policy must comply with the policy requirements before coverage applies. Failure to comply may result in a claim or coverage denial. The last day of any time period required by this policy to make a payment, perform a duty or give notice, may be any day of the year, including a Saturday, Sunday or public holiday. AGREEMENT If you pay your premium when due, we agree to insure you, subject to the terms of this policy, for the coverage shown on the Declarations Page, up to the limits of liability. If you make your initial payment by any method other than cash, coverage under this policy is conditioned upon that initial payment being honored when first presented for payment. DEFINITIONS A. Accident means an unexpected and unintended event that causes bodily injury, property damage or loss, which arises out of the ownership, maintenance, or use of a motor vehicle designed for use on public roads. B. Application means the form(s) provided by us to collect the information upon which we rely to issue this policy and determine the proper premium to charge for the risk to be insured. This includes any supplemental application and coverage election, selection and rejection forms provided by us. 3

5 C. Auto or motor vehicle means any self-propelled land auto or vehicle of the private passenger type with neither more than nor less than four wheels which is subject to auto registration and made for use principally upon public roads or streets. An auto or motor vehicle also means a pickup or van-type auto rated no greater than 1 ton and/or has a gross vehicle weight rating (GVWR) of 10,000 pounds or less. An auto or motor vehicle does not mean or include step-vans, parcel delivery vans, cargo cutaway vans, other vans with cabs separate from the cargo area, crawler or farm-type tractors, farm implements, or any equipment that is designed for use principally off public roads and streets. D. Bodily injury means bodily harm to a person, and sickness, disease or death that result from it. E. Business means any trade, profession, employment or occupation including but not limited to use as a livery service or for delivery. F. Declarations Page means the document from us listing: a. The types of coverage the you have elected; b. The limit for each coverage; c. The specified autos covered by this policy; d. The types of coverage for each auto; and e. Other information that applies to this policy. G. Family member means a person related to you by blood, marriage or adoption who is a resident of your household. This includes a ward or foster child. All family members must be disclosed on the application and listed on the Declarations Page, or added by endorsement, for coverage to apply. H. Household means the address where you reside that is shown on the Declarations Page. I. Loss means direct, sudden, and loss of, or physical damage to, your covered auto, caused by an accident. J. Named insured means the person or persons shown as the policyholder on the Declarations Page. K. Non-owned auto means any private passenger auto, pickup or van not owned by, or furnished or available for the regular use of, you or any family member while in the custody of, or being operated by, you or any family member. L. Occupying means in or upon an auto, or getting in, on, out of or off of an auto. 4

6 M. Property damage means physical damage to, or destruction or loss of use of tangible property. N. Trailer means a device or vehicle which is not self-propelled and is designed to be towed by an auto, and while being towed by an auto. A mobile home, travel trailer, or any vehicle that can be lived in or is self-propelled is not a trailer. O. We, us and our refer to the Company providing this insurance. P. Throughout this policy, you and your refer to the named insured shown on the Declarations Page and the spouse of that named insured, if a resident of the same household at the time of the accident or loss. If the spouse ceases to be a resident of the same household during the policy period or prior to the inception of this policy, the spouse will be considered you and your under this policy but only until the earliest of: a. The end of 90 days following the spouse s change of residency; b. The effective date of another policy listing the spouse as a named insured; or The end of the policy period shown on the Declarations Page, or the termination of the policy if it occurs prior to the end of the policy period. Q. Covered auto means: 1. Any auto shown on the Declarations Page. 2. Any auto you acquire to replace an auto listed on the Declarations Page, subject to the following conditions: a. The existing coverage on the auto replaced will apply as of the date the replacement auto is acquired if you notify us within 30 days of the date you become the owner of the replacement auto and you pay the additional premium, if any, when due. Coverage for Damage to Your Auto shall not apply to the replacement auto if we do not get notice within those 30 days. b. A replacement auto will not be provided more coverage than applied to the auto it replaced until and unless you ask us to add coverage and our conditions are met. If you add coverage or increase limits, that added coverage or increased limit does not apply until after you have asked us to add the coverage or increased limits and you pay the additional premium, if any, when due. 3. Any additional auto, other than a replacement auto, that you become the owner of during the policy period, but only if you give us notice within 30 days of the date that you become the owner of the additional auto and you pay any additional premium, if any, when due. No coverage will apply to an 5

7 additional auto if you do not notify us within 30 days of acquiring that auto. Coverage for Damage to Your Auto will apply only for: a. 30 days after you become the owner if the Declarations Page indicates that Coverage for Damage to Your Auto applies to at least 1 auto. In this case, the newly acquired auto will have the broadest coverage we now provide for any auto shown on the Declarations Page. b. 4 days after you become the owner if the Declarations Page does not indicate that Coverage for Damage to Your Auto applies to at least one auto. If you comply with the four day requirement and a loss occurred before you asked us to insure the newly acquired auto, a deductible of $500 will apply. 4. Any trailer you own. 6

8 PART A LIABILITY COVERAGE INSURING AGREEMENT A. Subject to the limits of liability, if you paid the premium for Liability Coverage, we will pay damages for bodily injury or property damage for which any insured becomes legally responsible because of an accident. Damages include prejudgment interest awarded against the insured. We will settle or defend, as we consider appropriate, any claim or suit asking for these damages. In addition to our limit of liability, we will pay all defense costs we incur. Our duty to settle or defend ends when our limit of liability for this coverage has been exhausted by payment of judgments or settlements. We have no duty to defend any suit or settle any claim for bodily injury or property damage not covered under this policy. B. Insured as used in Part A means: 1. You with respect to liability arising out of the ownership, maintenance or use of your covered auto. 2. Anyone using, with your permission, your covered auto. 3. You, while not driving your covered auto but driving a non-owned auto with permission of its owner. 4. Any other person listed as a driver on the Declarations Page while driving your covered auto. 5. A family member listed as a driver on the Declarations Page, with respect to an accident while driving a non-owned auto with permission of its owner. 6. Any Additional Interest shown on the Declarations Page, with respect to liability arising out of the use of your covered auto. Inclusion of an Additional Interest shall not increase our limit of liability. Coverage for the Additional Interest is excess over any other valid insurance. Coverage for an Additional Interest is limited to your covered auto for which the Additional Interest has been shown on the Declarations Page. SUPPLEMENTARY PAYMENTS In addition to our limit of liability, we will pay on behalf of an insured: 1. Up to $250 for the cost of bail bonds required because of an accident arising out of the use of your covered auto. 2. Premiums on appeal bonds and bonds to release attachments in any suit we defend. 7

9 3. Interest accruing after a judgment is entered in any suit we defend. Our duty to pay interest ends when we offer to pay that part of the judgment which does not exceed our limit of liability for this coverage. 4. Up to $200 a day for loss of earnings, but not other income, because of attendance at hearings or trials at our request. 5. Other reasonable expenses, other than loss of earnings, incurred at our request. EXCLUSIONS Liability Coverage and our duty to defend do not apply to: 1. Bodily injury or property damage caused by an intentional act by, or at the direction of, an insured, even if the bodily injury or property damage that results is not what was intended. However, if the injured party is not entitled to recover damages under any policy of uninsured motorist coverage for bodily injury or property damage, or collision coverage for property damage, then this exclusion shall only apply to the extent that the damages exceed the minimum limits of liability required by the Georgia Motor Vehicle Safety Responsibility Act. 2. Property damage to property: a. Rented to; b. Used by; c. Transported by; d. Owned by; or e. In the care of; any insured. 3. Bodily injury to an employee, employer or co-worker of any insured during the course of employment. Coverage does not apply to a domestic employee if workers compensation benefits or other similar benefits are required or available for that domestic employee However, if the injured party is not entitled to recover damages under any policy of uninsured motorist coverage for bodily injury, then this exclusion shall only apply to the extent that the damages exceed the minimum limits of liability required by the Georgia Motor Vehicle Safety Responsibility Act.. 4. Any insured s liability arising out of the ownership or operation of a vehicle while it is being used as a public or livery conveyance. This exclusion does not apply to a share-the-expense car pools. 5. Bodily injury or property damage resulting from the ownership, maintenance, or use of a vehicle by any person while engaged in any business activities. This exclusion does not apply to business use of your covered auto that has been declared to us and for which you have paid the additional premium for that use. However, if the injured party is not entitled to recover damages under any policy of uninsured motorist coverage for bodily injury or property damage, or collision coverage for property damage, then this exclusion shall only apply to the extent that the 8

10 damages exceed the minimum limits of liability required by the Georgia Motor Vehicle Safety Responsibility Act. 6. While employed or otherwise engaged in the business of: a. Selling; b. Repairing; c. Storing; or d. Parking; vehicles designed for use mainly on public highways. This includes road testing and delivery. This exclusion (A.6.) does not apply to the ownership, maintenance or use of your covered auto by: a. You; b. Any family member; or c. Any partner, agent or employee of you or any family member. 7. Bodily injury or property damage caused by any person using your covered auto without your express or implied permission or being used outside the scope of your permission. A person who is driving while their license is suspended, revoked or was never issued shall not be held to have been granted express or implied permission. 8. Use of a non-owned auto by an insured without the owner s permission or if being used outside the scope of the owner s permission. 9. Bodily injury or property damage that arises out of, or is due to: a. The ownership or use of an auto for transporting any explosive substance, toxic material, flammable substance, or similarly hazardous material; b. Nuclear reaction or radiation; c. A peril to which a nuclear energy liability insurance applies or is required by law to apply; d. Radioactive, pathogenic, poisonous, biological, toxic, or hazardous contamination or materials; or e. War (declared or undeclared) or warlike action of any kind. 10. Bodily injury or property damage arising out of the ownership, maintenance or use of any vehicle other than your covered auto which is owned by you or furnished or available for regular use by any insured. 11. Bodily injury to any of the following: a. You or any person listed on the Declarations Page; b. A family member or any insured who is insured to the extent that valid tort immunity under Georgia law exists. c. A family member or any insured, other than those identified in subsection B of this exclusion, who is not entitled to recover damages under any policy of motor vehicle liability or uninsured motorist coverage, then this exclusion shall apply only to the damages that are in excess of the minimum limits of liability coverage required by the Georgia Motor Vehicle Reparations Act. 12. Bodily injury or property damage arising out of the ownership or maintenance of a motor vehicle while it is competing in, practicing for or preparing for any prearranged or organized racing or speed contest. 9

11 13. Bodily injury or property damage that occurs while an insured is committing a felony or attempting to elude law enforcement personnel. However, if the injured party is not entitled to recover damages under any policy of uninsured motorist coverage for bodily injury or property damage, or collision coverage for property damage, then this exclusion shall only apply to the extent that the damages exceed the minimum limits of liability required by the Georgia Motor Vehicle Safety Responsibility Act. 14. Bodily injury or property damage arising out of the ownership or use of your covered auto when it is: a. Entrusted to another person or entity for the purpose of subleasing, leasing, renting or selling and is no longer in your possession; b. Sold to any person or entity other than you or a family member; or c. Under a conditional sales agreement and is no longer in your possession. 15. Bodily injury or property damage resulting from the operation of any vehicle by a specifically named excluded driver. If a court with proper jurisdiction find an exclusion is invalid and cannot be enforced, that exclusion is revised so it shall only apply to the extent that the damages exceed the minimum limits of liability required by the Georgia Motor Vehicle Safety Responsibility Act if the injured party is not entitled to recover damages under any policy of uninsured motorist coverage for bodily injury or property damage, or collision coverage for property damage. That exclusion shall still apply and be enforced as to all other damages. LIMIT OF LIABILITY A. The limit of liability shown on the Declarations Page for each person for Bodily Injury is our maximum limit of liability for all damages, including damages for care, loss of services or death, arising out of bodily injury sustained by any one person in any one accident. Subject to this limit for each person, the limit of liability shown on the Declarations Page for each accident for Bodily Injury is our maximum limit of liability for all damages for bodily injury resulting from any accident. The limit of liability shown on the Declarations Page for each accident for Propoerty Damage is our maximum limit of liability for all property damage resulting from any one accident. The Bodily Injury and Property Damage limits are the most we will pay regardless of the number of: 1. Insureds; 2. Claims made; 3. Vehicles or premiums shown on the Declarations Page; 4. Vehicles involved in the accident; or 10

12 5. Policies issued. B. No one will be entitled to receive duplicate payments for the same elements of loss under this coverage and: 1. Any other coverage under this policy; or 2. Any other source. C. Any payment to a person under this liability coverage shall be reduced by any payments to that person under Uninsured Motorist Coverage and Underinsured Motorist Coverage. OUT OF STATE COVERAGE If an accident to which this policy applies occurs in any state or province other than the one in which your covered auto is principally garaged, we will interpret your policy for that accident as follows: A. If the state or province has: 1. A financial responsibility or similar law specifying limits of liability for bodily injury or property damage higher than the limit shown on the Declarations Page, your policy will provide the higher specified limit. 2. A compulsory insurance or similar law requiring a nonresident to maintain insurance whenever the nonresident uses a vehicle in that state or province, your policy will provide at least the required minimum amounts and types of coverage. B. No one will be entitled to duplicate payments for the same elements of loss. FINANCIAL RESPONSIBILITY When this policy is certified as future proof of financial responsibility, this policy shall comply with the law to the extent required. OTHER INSURANCE If there is other applicable liability insurance we will pay only our share of the loss. Our share is the proportion that our limit of liability bears to the total of all applicable limits. However, any insurance we provide for a vehicle you do not own shall be excess over any other collectible insurance. 11

13 PART B MEDICAL PAYMENTS COVERAGE INSURING AGREEMENT A. Subject to the limits of liability, if you paid the premium for Medical Payments Coverage when due, we will pay the usual and customary charge for reasonable and necessary medical and funeral services because of bodily injury caused by an accident and sustained by an insured while occupying your covered auto. We will pay only those expenses incurred for services rendered within 3 years from the date of the accident. B. Insured as used in Part B means: 1. You 2. Any family member. 3. Any person listed as a driver on the Declarations Page. 4. Any other person while occupying your covered auto while the vehicle is being driven by you or any other person with your permission. EXCLUSIONS We do not provide Medical Payments Coverage for any bodily injury to any person: 1. Sustained while occupying any motorized vehicle having fewer than four wheels. 2. Sustained while occupying your covered auto when it is being used as a public or livery conveyance. This exclusion does not apply to share-theexpense car pools. 3. While occupying any vehicle while used as a residence or premises. 4. During the course of employment if workers compensation benefits are required or available for the bodily injury. 5. While occupying, or when struck by, any vehicle other than your covered auto which is owned by you, or furnished or available for your regular use. 6. Sustained while occupying a vehicle without a reasonable belief that that insured is entitled to do so. This exclusion (6.) does not apply to a family member using your covered auto which is owned by you. 7. Sustained while occupying a vehicle when it is being used in the business or occupation of an insured. This exclusion does not apply to bodily injury sustained while occupying a: a. Private passenger auto; b. Pickup or van that you own; or c. Trailer used with a vehicle described in a. or b. above. 8. Caused by or as a consequence of: 12

14 a. Nuclear reaction, radiation, or radioactive contamination; b. Pathogenic, poisonous, biological, toxic, explosive or other hazardous materials; c. War (declared or undeclared); d. Civil war; e. Insurrection; or f. Rebellion or revolution. 9. While occupying a vehicle that is competing in, practicing for or preparing for any prearranged or organized racing or speed contest. 10. While you or anyone driving with your permission is using your covered auto while committing a felony or attempting to elude law enforcement personnel. 11. Caused by any person using your covered auto without your express or implied permission. A person who is driving while their license is suspended, revoked or was never issued shall not be held to have been granted express or implied permission. 12. Resulting from the ownership, maintenance, or use of a vehicle by any person while engaged in any business activities. This exclusion does not apply to business use of your covered auto that has been declared to us and for which you have paid the additional premium for that use. 13. Resulting from the operation of any vehicle by a specifically named excluded driver. LIMIT OF LIABILITY A. The limit of liability shown on the Declarations Page for this coverage is our maximum limit of liability for each person injured in any accident. This is the most we will pay regardless of the number of: 1. Insureds; 2. Claims made; 3. Vehicles or premiums shown on the Declarations Page; 4. Vehicles involved in the accident; or 5. Policies issued. B. No one will be entitled to receive duplicate payments for the same elements of loss under this coverage and: 1. Any other coverage under this policy; or 2. Any other source. C. Any payment to a person under this coverage shall be excess insurance over benefits paid or payable by under the provisions of any disability benefits or similar law, or any personal injury protection benefits under any policy. 13

15 OTHER INSURANCE If there is other applicable motor vehicle medical payments insurance on a loss covered by this Part we will pay only our share of the loss. Our share is the proportion that our limit of liability bears to the total of all applicable limits. However, any insurance we provide with respect to a vehicle you do not own shall be excess over any other collectible auto insurance providing payments for medical or funeral expenses. PART C UNINSURED MOTORISTS COVERAGE INSURING AGREEMENT A. Subject to the limits of liability, if you paid the premium for Uninsured Motorists Coverage when due, we will pay compensatory damages which an insured is legally entitled to recover from the owner or operator of an uninsured motor vehicle due to bodily injury sustained by an insured, or property damage, when caused by an accident that arises out of the ownership, maintenance or use of the uninsured motor vehicle. B. The owner s or operator s liability for these damages must arise out of the ownership, maintenance or use of the uninsured motor vehicle. C. We will pay under this Part only: 1. After the limits of liability under all other applicable liability policies and bonds have been exhausted by payment; or 2. After an offer of settlement has been made to an insured by the insurer of the uninsured motor vehicle, and we have been given: a. Not less than 30 days written notice of that offer to pay; and b. An opportunity to advance payment to the insured in an amount equal to the offer settlement within 30 days after receipt of notice. This clause 1 does not prevent an insured from making a settlement using a Limited Release, as described in Georgia Code Section , as amended, which shall not release the legally liable uninsured or underinsured motorist from personal liability to the extent that there may be benefits under this Part for the bodily injury or property damage sustained by that insured. D. We are not bound by any judgment that arises out of a lawsuit with respect to: 1. The liability of an owner or operator of an uninsured motor vehicle; or 2. The amount of damages for bodily injury or property damage that result from an accident. 14

16 E. We are not bound by any settlement agreement entered into with the owner or operator of an uninsured motor vehicle that occurs without our written consent. F. Any judgment for damages arising out of a suit brought without our written consent is not binding on us. G. Insured as used in Part C means: 1. You or any family member listed on the Declaration s Page. 2. Any other person occupying your covered auto with your expressed or implied permission. H. Uninsured motor vehicle as used in Part C means a motor vehicle or trailer for which: 1. No bodily injury liability bond, policy or self-insurance applies at the time of the accident. 2. A bodily injury liability bond, policy or self-insurance applies at the time of the accident but the limit of liability is less than the: a. Full amount of compensatory damages the insured is legally entitled to recover from the operator or owner of the uninsured motor vehicle. This applies only if you paid the premium for Added On Uninsured Motorist Coverage; or b. Sum of the limits of liability of uninsured motorist coverage covering that insured under this policy and any other policies covering that insured. This applies only if you paid the premium for Reduced By Uninsured Motorist Coverage. 3. The operator or owner cannot be identified and which causes bodily injury to the insured, or property damage. If there has been no physical contact between the unidentified vehicle alleged to have caused the accident and the insured, a vehicle occupied by the insured, or your covered auto, the facts of the accident must be corroborated by an eyewitness to the accident other than the claimant or other occupants. 4. There is liability insurance at the time of the accident, but the bonding or insuring company: a. Has legally denied coverage; or b. Is or becomes insolvent. However, uninsured motor vehicle does not include any vehicle or equipment: 1. Owned by, or furnished or available for the regular use of, you or any family member; 15

17 2. Owned or operated by a self-insurer under any applicable motor vehicle law, except a self-insurer which is or becomes insolvent; 3. Owned by any governmental unit or agency; 4. Operated on rails or crawler treads; 5. Designed mainly for use off public roads while not on public roads; 6. Located for use as a residence or premises; or 7. Insured under Part A of the policy. EXCLUSIONS A. We do not provide Uninsured Motorists Coverage for bodily injury or property damage: 1. Sustained by an insured while occupying, or when struck by, any motor vehicle owned by that insured which is not insured for this coverage under this policy. This includes a trailer of any type used with that vehicle. 2. Sustained by any family member while occupying, or when struck by, any motor vehicle you own which is insured for this coverage on a primary basis under any other policy. 3. For any insured using or occupying a vehicle without the permission of the owner. This does not apply to the use of your covered auto by you or a family member. 4. For any insured using or occupying any vehicle while that insured is committing a crime. 5. For punitive damages. B. We do not provide Uninsured Motorists Coverage for bodily injury sustained by any insured: 1. If that insured or their legal representative settles the bodily injury or property damage claim without our consent. 2. While occupying your covered auto when it is being used as a public or livery conveyance. This exclusion does not apply to share-the-expense car pools. C. This coverage shall not apply directly or indirectly to benefit any insurer or selfinsurer under any of the following or similar law: 1. Workers compensation law; or 2. Disability benefits law. 16

18 LIMIT OF LIABILITY A. The limit of liability shown on the Declarations Page for each person for Uninsured Motorists Bodily Injury is our maximum limit of liability for all damages, including damages for care, loss of services or death, arising out of bodily injury sustained by any one person in any one accident. Subject to this limit for each person, the limit of liability shown on the Declarations Page for each accident for Uninsured Motorists Bodily Injury is our maximum limit of liability for all damages for bodily injury resulting from any one accident. The limit of liability shown on the Declarations Page for each accident for the Uninsured Motorist Property Damage is our maximum limit of liability for all property damage resulting from any one accident. The Uninsured Motorist Bodily Injury and Uninsured Motorist Property Damage limits are the most we will pay regardless of the number of: 1. Insureds; 2. Claims made; 3. Vehicles or premiums shown on the Declarations Page; 4. Vehicles involved in the accident; or 5. Policies issued. B. There will be no stacking or combining of coverage afforded to more than one vehicle under this policy. C. Payments under this Part are subject to a deductible if shown on the Declarations Page. D. No one will be entitled to receive duplicate payments for the same elements of loss under this policy or any other source. Any amount to be paid under this coverage, to or for an insured, will be reduced by any amount that the person is entitled to recover under Part A of this policy or any similar type bodily injury coverage under any other motor vehicle policy. E. If you paid the premium for Added On Uninsured Motorist Coverage, the damages an insured is entitled to recover for bodily injury or property damage, as applicable, from the owner or operator of the uninsured motor vehicle shall be reduced by any amount: 1. Paid or payable to the insured because of bodily injury or property damage by or on behalf of any persons or organizations that may be legally responsible, including, but not limited to, all sums paid under Part A of this policy or any similar type bodily injury coverage under any other motor vehicle policy; 17

19 2. Paid or payable under Part B of this policy, or any similar type medical payments coverage under any other motor vehicle policy, for the same element of damages; 3. Paid or payable under Part D of this policy for the same element of damages; and 4. Paid or payable for the same element of damages because of bodily injury under any workers compensation law. F. If you paid the premium for Reduced By Uninsured Motorist Coverage, the damages an insured is entitled to recover for bodily injury or property damage, as applicable, from the owner or operator of the uninsured motor vehicle shall be reduced by any amount: 1. Paid or payable to the insured because of bodily injury or property damage by or on behalf of any persons or organizations that may be legally responsible, including, but not limited to all sums paid under Part A of this policy; 2. Paid or payable under Part B of this policy, or any similar type medical payments coverage under any other motor vehicle policy, for the same element of damages; 3. Paid or payable under Part D of this policy for the same element of damages; and 4. Paid or payable under any workers compensation law, disability benefits law or similar laws for the same element of damages because of bodily injury. G. The most we will pay for property damage to your covered auto arising out of any one accident is the lesser of: 1. The applicable limit of liability shown on the Declarations Page for Uninsured Motorist Property Damage; 2. The Actual Cash Value of your covered auto; 3. The amount necessary to repair your covered auto to its pre-loss physical condition; or 4. The amount necessary to replace the property with property of like kind and quality. H. Property damage payments are subject to the following: 1. If you or the owner of your covered auto keep the salvage, the amount we pay will be reduced by the salvage value. 2. The amount we will pay under this Part will be adjusted and reduced for depreciation, physical condition and betterment as applicable. We do not pay for the amount of any betterment. You are responsible to pay for any betterment, but not to be more than 20% of the market value of your covered auto prior to the loss. 18

20 3. The amount we will pay to repair your covered auto or replace parts will be based on the cost of parts which may be new, used, reconditioned, remanufactured or refurbished parts that are original and/or non-original manufacturer parts or equipment. OTHER INSURANCE If there is other applicable insurance available under one or more policies or provisions of coverage that is similar to the insurance provided under this Part of the policy: 1. Any insurance we provide with respect to a vehicle you do not own shall be excess over any collectible insurance providing such coverage on a primary basis. 2. If the coverage under this policy is provided: a. On a primary basis, we will pay only our share of the loss that must be paid under insurance providing coverage on a primary basis. Our share is the proportion that our limit of liability bears to the total of all applicable limits of liability for coverage provided on a primary basis. b. On an excess basis, we will pay only our share of the loss that must be paid under insurance providing coverage on an excess basis. Our share is the proportion that our limit of liability bears to the total of all applicable limits of liability for coverage provided on an excess basis. ARBITRATION If we and an insured do not agree: 1. Whether that insured is legally entitled to recover damages; or 2. As to the amount of damages which are recoverable by that insured; from the owner or operator of an uninsured motor vehicle, then the matter may be arbitrated. However, disputes concerning coverage under this Part may not be arbitrated. Both parties must agree to arbitration. If so agreed, each party will select an arbitrator. The two arbitrators will select a third. If they cannot agree within 30 days, either may request that selection be made by a judge of a court having jurisdiction. A. Each party will: 1. Pay the expenses it incurs; and 2. Bear the expenses of the third arbitrator equally. 19

21 B. Unless both parties agree otherwise, arbitration will take place in the county in which the insured lives. Local rules of law as to procedure and evidence will apply. A decision agreed to by two of the arbitrators will not be binding as to: 1. Whether the insured is legally entitled to recover damages; and 2. The amount of damages. This applies only if the amount does not exceed the minimum limit for liability specified by the financial responsibility law of the state in which your covered auto is principally garaged. If the amount exceeds that limit, either party may demand the right to a trial. This demand must be made within 60 days of the arbitrators decision. If this demand is not made, the amount of damages agreed to by the arbitrators will be binding. PART D COVERAGE FOR DAMAGE TO YOUR AUTO INSURING AGREEMENT A. We will pay for direct and accidental loss to your covered auto, including equipment, minus any applicable deductible shown on the Declarations Page. If loss to more than one of your covered autos results from the same collision, only the highest applicable deductible will apply. B. We will pay for loss to your covered auto caused by: 1. Other than Collision only if the Declarations Page indicates that Other Than Collision Coverage is provided for that auto. 2. Collision only if the Declarations Page indicates that Collision Coverage is provided for that auto. C. Collision as used in Part D means the upset of your covered auto or its impact with another vehicle or object. Loss caused by the following is considered other than collision: 1. Missiles or falling objects; 2. Fire; 3. Theft or larceny; 4. Explosion or earthquake; 5. Windstorm; 6. Hail, water or flood; 7. Malicious mischief or vandalism; 8. Riot or civil commotion; 9. Contact with bird or animal; or 20

22 10. Breakage of glass. We will waive any deductible for auto glass repair if your covered auto windshield can be repaired rather than replaced. D. Special Equipment as used in Part D means any of the following, except when installed by the original manufacturer of your covered auto or by the manufacturer s dealer as a manufacturer s new car option or equipment on your covered auto: 1. Parts, accessories, ground effects and any other equipment or enhancement; 2. Any modified suspension equipment, modified engines, modified carburetor systems, modified equipment, or custom wheels, including, but not limited to: a. Aluminum, magnesium, chrome or alloy wheels; b. Special wide-tread tires or slicks. 3. Custom paint, murals, decals or graphics; special carpeting or furnishings; sunroofs, moon roofs, t-bar or height extending roofs; bubble domes or similar windows; refrigeration or cooking equipment and any equipment used for sleeping; 4. Electronic video, audio, digital or data transmitting, receiving, recording and playback device, including but not limited to: a. Communication and audio devices, including citizen band radios, two way mobile radios, televisions, VCR, mobile cellular and other telephones, blue tooth devices, scanning monitor receivers, audio devices that record and/or play sound, including: radios; satellite radios; stereos; cassette tape decks; compact disk systems; MP3 devices; internet audio streaming devices; audio interface devices; radio scanners; and similar devices for reproducing sound; b. GPS and other navigation systems; c. Personal computers and internet access systems; d. Video devices, including DVD devices, VCR s; monitors; cameras and televisions; and e. Any accessories, cables, connectors or antennas used with any of these types of equipment. EXCLUSIONS We will not pay for: 1. Loss to your covered auto which occurs while it is being used as a public or livery conveyance. This exclusion does not apply to share-the-expense car pools. 2. Damage due and confined to: a. Prior loss or damage; b. Wear and tear; c. Freezing; d. Mechanical or electrical breakdown or failure; 21

23 e. Road damage to tires; f. Mold, mildew, fungi or any by-product of these. This exclusion does not apply if the damage results from the total theft of your covered auto. 3. Loss caused by: a. Nuclear reaction, radiation, or radioactive contamination; b. Pathogenic, poisonous, biological, toxic, explosive or other hazardous materials; c. War (declared or undeclared); d. Civil war; e. Insurrection; or f. Rebellion or revolution. 4. To any special equipment. However, if you have paid the premium for Special/Additional Equipment Coverage and it is shown on the Declarations Page, this exclusion shall not apply to the special equipment listed on the schedule of special equipment in our records. If you change the special equipment on your covered auto, you must notify us to change your listed equipment and pay the additional premium, if any, when due before any added special equipment will be covered. 5. Loss to tapes, records, discs or other media used with equipment described in Exclusion A total loss to your covered auto due to destruction or confiscation by governmental or civil authorities. 7. Loss to a camper body or trailer. 8. Loss to your covered auto arising out of the ownership or maintenance of a motor vehicle while it is competing in, practicing for or preparing for any prearranged or organized racing or speed contest. 9. Loss as a result of off-road recreational use of a vehicle. 10. Loss to any personal property, including but not limited to clothing, tools or nonstandard equipment and racks which is permanently or temporarily attached to your covered auto at the time of the loss. 11. Loss that occurs while you, or anyone driving with your permission, is using your covered auto; a. In an illegal trade or transportation; b. While committing a crime (other than a violation of a traffic law or similar law governing the ownership or operation of a vehicle); or c. While fleeing any law enforcement personnel. 12. Loss that occurs while your covered auto is driven by any person who is not a listed driver on the Declarations Page and who does not have a valid driver s license. 13. Loss resulting from the ownership, maintenance, or use of your covered auto by any person while engaged in any business activities. This exclusion does not apply to business use of your covered auto that has been declared to us and for which you have paid the additional premium for that use. 22

24 14. Loss resulting from the operation of your covered auto by a specifically named excluded driver 15. To any vehicle other than your covered auto for which the premium has been paid for the coverage being sought under this Part. LIMIT OF LIABILITY A. Our limit of liability for loss will be the lesser of the: 1. Actual Cash Value of the stolen or damaged property at the time of loss, reduced by the deductible shown on the Declarations Page; 2. The amount necessary to repair the property to its pre-loss physical condition, reduced by the deductible shown on the Declarations Page; or 3. The amount necessary to replace the property with property of like kind and quality, reduced by the deductible shown on the Declarations Page; 4. Any stated amount shown on the Declarations Page, including but not limited to any value listed for special equipment. B. If you or the owner of your covered auto keep the salvage, the amount we pay will be reduced by the salvage value. C. The amount we will pay under this Part will be adjusted and reduced for depreciation, physical condition and betterment as applicable. We do not pay for the amount of any betterment. You are responsible to pay for any betterment, but not to be more than 20% of the market value of your covered auto prior to the loss. D. The amount we will pay to repair your covered auto or replace parts will be based on the cost of parts which may be new, used, reconditioned, remanufactured or refurbished parts that are original and/or non-original manufacturer parts or equipment. E. The amount necessary to repair or replace is determined by one of the following: 1. The amount to repair or replace agreed upon by you and us; 2. A competitive bid approved by us; or 3. A written estimate based upon the prevailing competitive price. The prevailing competitive price means prices charged by a majority of repair facilities in the area where the auto is to be repaired. At your request, we will identify some facilities that perform the repairs at the prevailing competitive price. We will include in the estimate parts sufficient to restore the vehicle to its condition at the time of loss. PAYMENT OF LOSS We may pay for loss in money or repair, or replace the damaged or stolen property. We may, at our expense, return any stolen property to: 23

25 1. You; or 2. The address shown in this policy. If we return stolen property, we will pay for any damage resulting from the theft. We have no duty to preserve salvage. We may make payment for a loss to you or the owner of the vehicle. No payment is due under Part D until you have fully complied with all of the conditions and duties stated in this policy. NO BENEFIT TO BAILEE This insurance shall not directly or indirectly benefit any person or entity other than you for loss to your covered auto. OTHER SOURCES OF RECOVERY If other sources of recovery also cover the loss, we will pay only our share of the loss. Our share is the proportion that our limit of liability bears to the total of all applicable limits. However, any insurance we provide with respect to a non-owned auto shall be excess over any other collectible source of recovery, including, but not limited to: 1. Any coverage provided by the owner of the non-owned auto; 2. Any other applicable physical damage insurance; 3. Any other source of recovery applicable to the loss. APPRAISAL A. If we and you do not agree on the amount of loss, either may demand an appraisal of the loss. In this event, each party will select a competent appraiser. The two appraisers will select an umpire. The appraisers will state separately the actual cash value and the amount of loss. If they fail to agree, they will submit their differences to the umpire. A decision agreed to by any two will be binding. Each party will: 1. Pay its chosen appraiser; and 2. Bear the expenses of the appraisal and umpire equally. B. We do not waive any of our rights under this policy by agreeing to an appraisal. LOSS PAYEE & LIENHOLDER S RIGHTS If a loss payee or lienholder is shown on the Declarations Page with respect to your covered auto, any amount paid under this Part D for loss to that vehicle will be paid according to your interest and that of the loss payee or lienholder. We may 24

26 make separate payments according to those interests. However, with your consent, payment may be made directly to a repair shop when the loss is being repaired. We will be subrogated to the loss payee or lienholder's rights of recovery to the extent of our payment. Where a claim is denied for non-cooperation or breach of the insured s duties owed to us, the loss payee or lienholder s interest will not be protected. Where fraud, misrepresentation, material omission, intentional damage, or conversion, secretion and/or embezzlement has been committed by or at the direction of you or a family member, or where the loss is otherwise not covered under the terms of this policy, the loss payee or lienholder's interest will not be protected. We have no duty to make any payment to a loss payee or lienholder unless the loss is payable to you and all policy terms and conditions have been met. We reserve the right to cancel the policy as permitted by policy terms. Cancellation shall terminate this agreement as to the loss payee or lienholder's interest. PART E DUTIES AFTER AN ACCIDENT OR LOSS We have no duty to provide coverage under this policy unless there has been full compliance with the following duties: A. We must be notified as soon as practicable as to how, when and where the accident or loss happened. Notice should include the names and addresses of any injured persons and of any witnesses. B. A person seeking any coverage must: 1. Cooperate with us in the investigation, settlement or defense of any claim or lawsuit. The failure to cooperate and assist in the defense of any such action is a breach of this contract. If such breach relates to Part A and is prejudicial to us, that breach shall relieve us of our obligation to defend an insured under Part A of this policy and of any liability to pay any judgment or other sum on behalf of that insured. 2. Send us copies of any notices or legal papers received in connection with the accident or loss as soon as practicable after receipt. The failure to send any notices or legal papers to us is a breach of this contract. If such breach relates to Part A and is prejudicial to us, that breach shall relieve us of our obligation to defend an insured under Part A of this policy and of any liability to pay any judgment or other sum on behalf of that insured. 3. Refuse to assume any obligation or incur any unreasonable and unnecessary expenses at the time of the accident or loss. 25

27 4. Submit, as often as we may reasonably require, to physical exams at our expense by physicians we select. 5. Submit to statements or examination under oath and subscribe to the same. We may require that such statements or examinations be recorded and videotaped, as well as conducted individually and outside the presence of witnesses or other persons seeking coverage or benefits under this policy. 6. Authorize us to obtain data and records including, but not limited to, medical, wage, financial, automobile data recorder, cell phone and other pertinent records pertaining to the accident or loss. 7. Submit a proof of loss when required by us. C. A person seeking Uninsured Motorists Coverage must also: 1. Promptly notify the police if a hit-and-run driver is involved. 2. Promptly send us copies of any notices or legal papers if a suit is brought. D. A person seeking Coverage for Damage to Your Auto must also: 1. Take reasonable steps after an accident or loss to protect your covered auto or any non-owned auto and their equipment from further loss. If you fail to do so, any further damage will not be covered under this policy. We will pay reasonable expenses incurred to do this. 2. Notify the police if your covered auto or any non-owned auto is stolen as soon as practicable after the loss. 3. Permit us to inspect and appraise the damaged property before its repair or disposal. 26

28 PART F GENERAL PROVISIONS BANKRUPTCY Bankruptcy or insolvency of the insured shall not relieve us of our obligations under this policy. POLICY CHANGES This policy which includes the Declarations Page, endorsements issued by us, the application, and any coverage election and rejection forms, contains all the agreements between you and us. Its terms may not be changed or waived except by written endorsement issued by us. If a change requires a premium adjustment, we will adjust your premium as of the effective date of the change. We may revise this policy form to provide more coverage without additional premium charge. If we revise this version of this policy form, our policy will automatically provide the additional coverage as to the date the revision is effective. We rely upon the statements made by you in the Application to determine the amount of the premium for this policy. You agree to cooperate with us in determining if this information is correct and complete and YOU WILL NOTIFY US IF IT CHANGES DURING THE POLICY PERIOD. If this information is incorrect, incomplete, or changes during the policy period, we may adjust your premium during the policy period or take other appropriate action including, but not limited to, denial of coverage. To properly insure your vehicle, you must promptly notify us when: 1. You change your address; 2. Any resident operators are added or deleted; 3. You acquire an additional or replacement vehicle; 4. There is any change in the operators in the household; 5. You or a family member get married or divorced; or 6. You or a family member obtains a driver s license or permit or has a driver s license suspended, revoked, or refused. FRAUD AND/OR MISREPRESENTATION We do not provide coverage for any insured who has made fraudulent statements or engaged in fraudulent conduct in connection with any accident or loss for which coverage is sought under this policy. 27

29 We will not provide coverage for any claim arising from an accident or loss involving a motorized vehicle operated by a household resident or family member who is not listed as a driver on the Declarations Page at the time of the accident or loss. This policy is issued based upon information provided on your application. We have the right to deny coverage under this policy if we learn that you or your representative, at the time of application: 1. Made false statements or representations to us as to any fact or circumstance material either to our acceptance of the risk or to the hazard assumed by us; 2. Concealed or misrepresented any fact or circumstance material to either to our acceptance of the risk or to the hazard assumed by us; or 3. Engaged in fraudulent conduct. 4. Failed to notify us of material changes to the information that you provided including, but not limited to, additional household members of driving age. We also will not provide coverage for, or payment to, any person who commits fraud against our interest or who intentionally makes misrepresentations in connection with any accident or loss. LEGAL ACTION AGAINST US No legal action may be brought against us until there has been full compliance with all terms of this policy. In addition, under Part A, no legal action may be brought against us until: 1. We agree in writing that the insured as defined under Part A has an obligation to pay; or 2. The amount of that obligation has been finally determined by judgment after trial. No person or organization has any right under this policy to bring us into any action to determine the liability of an insured. OUR RIGHT TO RECOVER PAYMENT If we make a payment under this policy and the person or entity to or for whom payment was made has a right to recover damages from another, we shall be subrogated to that right. That person or entity shall do: 1. Whatever is necessary to enable us to exercise our rights; and 2. Nothing after the loss to prejudice our rights. If we make a payment under this policy and the person to or for whom payment is made recovers damages from another, that person shall: 1. Hold in trust for us the proceeds of the recovery; and 2. Reimburse us to the extent of our payment. 28

30 If we make a payment under Part B of this policy and the person to or for whom payment is made recovers damages from another, that person shall: 1. Hold in trust for us the proceeds of the recovery; and 2. Reimburse us to the extent of our payment after that person has been fully compensated for damages. However, any reimbursement due to us shall be reduced by our pro rata share of attorney s fees and expenses of litigation incurred in bringing the claim. If we make a payment under Part C of this policy, we shall be entitled to a recovery only after the person has been fully compensated for damages. If we make a payment under Part D of this policy and we recover all or part of the loss, your share will not be charged with any of the attorney fees or court costs. POLICY PERIOD AND TERRITORY This policy applies only to accidents and losses which occur: 1. During the policy period as shown on the Declarations Page unless the policy is cancelled, in which case all coverage ends on the effective date of the cancellation; and 2. Within the policy territory. The policy territory is the United States of America, its territories or possessions, Puerto Rico or Canada. This policy also applies to loss to, or accidents involving, your covered auto while being transported between their ports. TERMINATION A. Cancellation. This policy may be cancelled during the policy period as follows: 1. The named insured shown on the Declarations Page may cancel by giving us advance written notice of the date cancellation is to take effect. 2. We may cancel by mailing to the named insured shown on the Declarations Page at the last known address appearing in our records: a. With at least 10 days notice: (1) If cancellation is for nonpayment of premium; or (2) If notice is mailed during the first 60 days this policy is in effect and this is not a renewal or continuation policy; or b. With at least 30 days notice in all other cases. 3. We may cancel or void this policy for any lawful reason during the first 60 days of the first policy period. After this policy is in effect for 60 days, or if this is a renewal or continuation policy, we will cancel only: a. For nonpayment of premium; b. For material misrepresentation or fraud when applying for this policy; 29

31 c. If any insured violated any of the terms and conditions of the policy; d. If the named insured failed to disclose fully his or her record for the preceding 36 months of motor vehicle accidents and moving traffic violations; e. If the named insured failed to disclose in the application, or in response to inquiry by us, our authorized agent or a broker, information needed for the acceptance or proper rating of the risk; f. If the named insured submits, or knowingly aids or abets another in the presentation of, a false or fraudulent claim; or g. For the loss of driving privileges through suspension or revocation of your operator s license or motor vehicle registration, or that of a principal operator of your covered auto. This must have occurred within the 36 month period prior to the notice of cancellation. If this policy is cancelled, coverage will not be provided as of or after the date and time shown in the notice of cancellation. We may deliver any notice instead of mailing it. Proof of mailing, as required or accepted by the United States Postal Service, of any notice shall be sufficient proof of notice. Where permissible, we may deliver notice of cancellation electronically and a copy of the electronic transmission will serve as proof of delivery. If this policy is cancelled, you may be entitled to a premium refund. The premium refund, if any, will be computed according to our underwriting manual. However, making or offering to make the refund is not a condition of cancellation. B. Nonrenewal. If we decide not to renew or continue this policy, we will mail notice to the named insured shown on the Declarations Page at the last known address appearing in our records. Notice will be mailed at least 30 days before the end of the policy period. AUTOMATIC TERMINATION If we offer to renew or continue, and you or your representative do not accept, this policy will automatically terminate at the end of the current policy period. Failure to pay the required renewal or continuation premium when due shall mean that you have not accepted our offer. If you obtain other insurance on your covered auto, any similar insurance provided by this policy will terminate as to that auto on the effective date of the other insurance. Coverage for your covered auto shall terminate automatically when anyone other than you or a family member listed on the Declarations Page becomes the owner of the vehicle. 30

32 POLICY VOID FOR DISHONORED DOWN-PAYMENT Coverage under this policy is conditioned upon our receipt of complete and unconditional payment of the initial down-payment of premium. If you make your initial payment by check, credit card or any method other than cash, this policy is void as if never issued, and there will be no coverage at any time, if the initial payment is not honored for any reason when first presented for payment to your bank or financial institution or if there is any failure to pay premium. If this policy is void we will not cover any claims, loss or damages of any kind. TRANSFER OF YOUR INTEREST IN THIS POLICY Your rights and duties under this policy may not be assigned without our written consent. However, if a named insured shown on the Declarations Page dies, coverage will be provided for: 1. The surviving spouse if resident in the same household at the time of death. Coverage applies to the spouse as if a named insured shown on the Declarations Page; and 2. The legal representative of the deceased person as if a named insured shown on the Declarations Page. This applies only with respect to the representative s legal responsibility to maintain or use your covered auto. If a named insured shown on the Declarations Page terminates their marital relationship, we will continue to provide coverage for the former spouse of the named insured until the end of the policy period only if we are notified of the termination of the marital relationship and if the former spouse was a resident of the same household immediately prior to the termination of the marital relationship. TWO OR MORE AUTO POLICIES If this policy and any other auto insurance policy issued to you by us apply to the same accident, the maximum limit of our liability under all the policies shall not exceed the highest applicable limit of liability under any one policy. 1. This provision does not apply to Uninsured Motorists Coverage. 2. No one will be entitled to receive duplicate payments for the same elements of loss under Uninsured Motorists Coverage. 31

33 OUR RIGHT TO RECOMPUTE PREMIUM We established the premium for this policy based on the statements you made in the application for insurance. We have the right to recompute the premium if we later obtain information which affects the premium we charged. 32

34 ENDORSEMENTS THE FOLLOWING ENDORSEMENTS APPLY TO YOUR POLICY ONLY IF THE ENDORSEMENT FORM NUMBER APPEARS ON THE DECLARATIONS PAGE. RENTAL CAR COVERAGE ENDORSEMENT This endorsement does not apply unless the form number appears on the Declarations Page. In consideration of an additional premium charge, Part D Car Damage Coverage - is extended to a rented vehicle. The rental vehicle may be for pleasure use or as a substitute for your covered auto which is out of service due to an accident or loss. PUNITIVE DAMAGES WAIVER This endorsement does not apply unless the form number appears on the Declarations Page. In consideration of a reduced premium for the Punitive Damage Waiver, it is agreed that the insurance afforded by this policy under Part A Liability Coverages shall not apply to payment of any punitive or exemplary damages arising from any accident or loss. EXTENDED TRANSPORTATION EXPENSES COVERAGE This endorsement does not apply unless the form number appears on the Declarations Page. The provisions and exclusions that apply to Part D Coverage for Damage to Your Auto also apply to this endorsement except as changed by this endorsement. When there is a loss to your covered auto described on the Declarations Page for which a specific premium charge indicates that Extended Transportation 33

35 Expenses Coverage is afforded for that vehicle, we will pay reasonable rental expense incurred through a rental car company, without application of a deductible, up to $30 per day to a maximum of $900 for transportation expenses incurred by you while your covered auto is being repaired. Our payment will be limited to that period of time reasonably required to repair or replace your covered auto. We will not pay for additional insurance purchased for any rental vehicle. This coverage applies only if: 1. Your covered auto is withdrawn from use for more than 24 hours; and 2. The loss is caused by collision or is otherwise covered under Part D of this policy. However, this coverage does not apply when there is a total theft of your covered auto. Such coverage is provided under Part D of this policy. Our payment will be limited to that period of time reasonably required to repair or replace your covered auto. TOWING AND LABOR COSTS COVERAGE This endorsement does not apply unless the form number appears on the Declarations Page. We will pay towing and labor costs incurred each time your covered auto is disabled, up to the amount shown on the Declarations Page as applicable to that vehicle. We will only pay for labor performed at the place of disablement. 34

36 NAMED NON-OWNER COVERAGE This endorsement does not apply unless the form number appears on the Declarations Page. If you have elected Named Non-Owner Coverage (and therefore do not have a covered auto under this policy, we will only cover the permissive use of a nonowned auto by the named insured. The following policy changes shall apply: 1. The general policy definition of you and your are revised and you and your mean the named insured. No entity or person other than the named insured has any insurance under this policy. 2. No coverage applies under the policy for use of any vehicle other than the permissive use of a non-owned auto by a named insured. 3. No coverage applies under the policy for any person other than the named insured. 4. The Other Insurance clause in every part of this policy is revised and any insurance we provide shall be excess over any other applicable insurance, self-insurance or bond providing the same or similar insurance or benefits. This will not apply for: a. Part A - Liability Coverage in relation to a policy of liability insurance that applies to a vehicle owned by a person, firm, or corporation engaged in the business of retail sales of motor vehicles and that policy is issued to that business, but only if the named insured is: i. Operating that motor vehicle; and ii. Not employed by the motor vehicle s owner or that business. b. Part C - Uninsured Motorist Coverage as otherwise required by Georgia law or as decided by a court with proper jurisdiction. 5. No Part D - Coverage for Damage to Your Auto applies under the policy. ACCIDENTAL DEATH & DISMEMBERMENT This endorsement does not apply unless the form number appears on the Declarations Page. This endorsement contains only the principal provisions relating to the coverage and payment of loss described herein. The insurance described is automatically 35

37 terminated if the policy is canceled as provided therein or if the named insured ceases to fall within the definition of a named insured as defined in this policy. LIMIT OF LIABILITY The principal sum, in limits ranging from $1,000 to $10,000 in increments of $1,000 as selected by the named insured and so indicated on the Declarations Page. Insurance applies only with respect to those coverages for which an amount is specified against loss resulting directly and independently of all other causes for accidental bodily injury which arise out of the hazards described and are sustained by the named insured during the term of the policy, herein called injuries, to the extent herein provided. The following description contains the principal provisions relating to coverage and payment of loss: DEATH, DISMEMBERMENT OR LOSS OF SIGHT - If within ninety (90) days from the date of loss, such injuries shall result in death of the named insured, dismemberment or loss of sight, the company will pay: 1. of Life...The Principal Sum 2. Loss of Both Hands, Feet, or Eyes....The Principal Sum 3. Loss of one Hand and one Foot... The Principal Sum 4. Loss of either Hand or Foot One Half Principal Sum 5. Loss of Sight of one Eye One Half Principal Sum 6. Loss of Thumb or Finger... One Half Principal Sum Loss shall mean with regard to hand or foot, complete severance through or above the wrist or ankle joint, with regard to sight of eyes, entire and irrecoverable loss of sight; with regard to thumb and index finger, complete severance. Subject to the terms of the endorsement the hazards insured against are all those to which the named insured may be exposed: 1. While the named insured is riding solely as a passenger in or on, boarding or alighting from any public conveyance, including air, licensed to carry passengers for hire; or 2. When the named insured sustains bodily injury caused by unavoidable exposure to the elements following the forced landing, stranding, sinking or wrecking of such means of transportation described above in which the named insured has been riding solely as a passenger; or, 3. While the named insured is driving or riding in or on; boarding or alighting from, a four-wheel private passenger auto of the strictly pleasure car type. 36

38 SEAT BELT COVERAGE The Principal Sum benefits for Accidental Death under this policy will be increased by an additional 20% of the named insured s benefit amount if death results while the named insured is a passenger or driver of a four-wheel private passenger auto strictly of the pleasure car type, and the named insured s seat belt is properly fastened about their person. EXCLUSIONS This endorsement does not cover any loss, fatal or non-fatal incurred for or resulting from any of the following: 1. Suicide or any attempt thereat by the named insured, or self-destruction or any attempt thereat by the named insured; 2. Infections except pyogenic infections caused wholly by a covered injury; 3. War or any act of war, or accident occurring while the named insured is in the military, naval or air service of any country; 4. Accident occurring while the named insured is operating, or learning to operate, or performing duties as a member of the crew of any aircraft; 5. Sickness or disease of any kind including surgical or medical treatment; 6. The named insured being intoxicated or under the influence of any narcotic unless administered on the advice of a physician and without warning against operating any motorized vehicle while under the influence of the narcotic; or, 7. While driving or occupying a vehicle engaged in any race or speed test. POLICY PROVISIONS 1. NOTICE OF CLAIM: Notice of claim must be given to the company within 30 days after the occurrence of any loss covered by this policy, or as soon thereafter as is reasonably possible. Notice given by or on behalf of the claimant to the Company at its authorized agent s office in Atlanta, Georgia, or to any authorized agent of the Company, with information sufficient to identify the named insured shall be deemed notice to the Company. 2. CLAIM FORMS: The Company, upon receipt of a notice of claim, will furnish to the claimant such forms as are usually furnished by it for filing proofs of loss. If such forms are not furnished within 15 days after the giving of such notice the claimant shall be deemed to have complied with the requirements of this policy as to proof of loss upon submitting, within the time fixed in this policy for filing proofs of loss, written proof covering the occurrence, the character and the extent of the loss for which claim is made. 3. PROOF OF LOSS: Written proof of loss must be furnished to the Company within 90 days after the date of such loss. Failure to furnish such proof within the time required shall not invalidate nor reduce any claim if it was not reasonably possible to give proof within such time, provided such proof is furnished as soon as reasonably possible. 37

39 4. TIME PAYMENT OF CLAIMS: Indemnity for loss of life will be payable in accordance with the beneficiary designation and the provisions respecting such payment which may be prescribed therein and effective at the time of payment. If no such designation or provision is then effective, such indemnity shall be payable to the estate of the named insured. Any accrued indemnities unpaid at the named insured s death may, at the option of the Company, be paid either to such beneficiary or to such estate. All other indemnities will be payable to the named insured. 5. PHYSICAL EXAMINATION AND AUTOPSY: The Company, at its own expense, shall have the right and opportunity to examine the named insured or any individual whose injury is the basis of claim when and as often as it may reasonably require while a claim is pending hereunder and to make an autopsy in case of death where it is not forbidden by law. 6. LEGAL ACTION: No action at law or in equity shall be brought to recover on this policy prior to the expiration of 60 days after written proof of loss has been furnished in accordance with the requirements of this policy. No such action shall be brought after the expiration of 3 years after the time written proof of loss is required to be furnished. 7. CONFORMITY WITH STATE STATUTES: Any provision of the policy, which, on its effective date, is in conflict with the statutes of the state in which this policy was issued, is hereby amended to conform to the minimum of such statutes. 8. WORKER S COMPENSATIONS: This policy is not in lieu of and does not affect any requirements for coverage by Worker s Compensation Insurance. 38

40 POLICY CONDITIONS This policy is signed at Waco, TX, on behalf of Equity Insurance Company, by our President and Secretary. It is countersigned on the Declarations Page by our authorized representative. Equity Insurance Company In Witness Whereof, we have caused this policy to be executed and attested; and if required by state law, this policy shall not be valid unless countersigned by our authorized representative. President Secretary 39