VICTORIA INSURANCE UNDERWRITING GUIDE. GENERAL PERSONAL AUTO PROGRAM Maryland

Transcription

1 GENERAL PERSONAL AUTO PROGRAM Maryland New 12/24/2012 Renewal 2/23/2013 VICTORIA INSURANCE UNDERWRITING GUIDE Victoria Fire & Casualty Company THI Holdings (Delaware), Inc. All Rights Reserved MD98GEUWGD1212

2 QUICK REFERENCE GUIDE UNDERWRITING GUIDELINES Binding Authority... 7 Severe Weather Binding Restriction... 7 Commission... 7 Unacceptable Risks General Guidelines Endorsements Renewals Cancellations Reinstatement with New Term Exclusions Tier Determination TABLE OF CONTENTS COVERAGE DESCRIPTION & RULES - LIABILITY BI/PD Liability Non-Owner Coverage Uninsured/Underinsured Motorists Coverage (UM/UIM) Medical Payments Coverage Personal Injury Protection (PIP) Accidental Death Benefit COVERAGE DESCRIPTION & RULES - PHYSICAL DAMAGE Comprehensive & Collision Rules Deductibles Loss of Use Coverage Towing Reimbursement Coverage Special Equipment Coverage DISCOUNTS SURCHARGES VIOLATIONS/ACCIDENTS DIRECT BILL GUIDELINES Program Payment Options Methods of Payments Rules Fees... 25

3 CONTACT US General Office Hours Monday - Friday 8:00 a.m. - 9:00 p.m. EDT Saturday 9:00 a.m. - 5:00 p.m. EDT TECHNICAL SUPPORT Hours Monday - Friday 7:30 a.m. - 8:00 p.m. EDT PHONE NUMBERS Home Office Underwriting Service Automated Policy Inquiry Supply Request... Fax: , or mservice@victoriainsurance.com When ordering supplies by phone or , the following information must be provided: 1. Agency Name 2. THI Agency Number(s) 3. Name of Requestor Rating Software Questions Hour Pre-Assigned Numbers Technical Support ... e-tech@victoriainsurance.com (Include agency code and name) Report-A-Claim (Including After Hours/Holidays/Weekends) Claims Questions QUICK REFERENCE GUIDE FAX NUMBERS Claims Endorsements Proof of Insurance or Homeownership ADDRESSES Mail Payments Victoria Insurance Group Without Remittance P.O. Box 6838 Stubs to: Cleveland, Ohio Mail Claims to: Website Victoria Insurance Group P.O. Box Cleveland, OH

4 HOW DO I RATE A VICTORIA POLICY? OPTION ONE Log on to Passwords may be obtained on-line or by calling If you have any questions concerning the software, call Technical Support at OPTION TWO Call your comparative rating service and add Victoria to your system today! We forward our rates to all major rating vendors. Please let us know if your vendor has not received them. OPTION THREE Call in for a quote. Call our Customer Service Unit directly at We are happy to give you a quote at any time. PLEASE NOTE THAT ALL MARYLAND POLICIES ARE RATED USING AN AVERAGE DRIVER FACTOR quick reference guide 2

5 SERVICE HIGHLIGHTS AGENCY AUTOMATION PACKAGE Improve agency efficiency today with our user-friendly website, It provides you with a single and comprehensive destination for policy rating, endorsements, inquiries, what if scenarios and more. Download capabilities are available to several agency management systems including Applied, Agency One, Pathfinder, Pioneer Plus, MI-Assist, Doris, AMS, SIS Semci, Hawksoft, Instar, and Agena. This service will help save your agency input time and will provide your agency with accurate and timely information. Both upload capabilities and daily or weekly fax reports are available. All business must be uploaded. Upload will save you time and money, and improve turnaround time. Customer Facts faxes will give you transaction and EFT information on all of your Victoria policies to help you better manage your business. ACH COMMISSION SERVICE If you would like, Victoria will automatically deposit your commission check directly into your account via the Automated Clearing House (ACH) system. Your commission dollars are guaranteed to be available by the 10th of every month (commission statements are also mailed by the 10th). QUICK REFERENCE GUIDE To enroll in this free service, contact your Victoria Sales Manager, or call our Agent Supply Department at , option 2, 4 for an ACH authorization form. ELECTRONIC SUPPLIES Some of the most commonly used forms are available for printing directly from our Web rating software. Simply go to the Agent Center on our website Under Documents, click on General to see the forms, fax covers and Underwriting Guidelines. An Interactive Supply Request form is available on the Agent Center. The completed form can be faxed to An Interactive Supply Request Form is available on Victoria s website. THe completed form can be faxed to ON-LINE POLICY INQUIRY Agents have access to our on-line policy inquiry system. This system provides up-to-date information regarding policy status, payments, coverage details, and all other policy related data. To get a user ID and password to access Victoria online, go to and click on "Need a User Name" under the login button. If you prefer, you can also call tech support at You and your insureds can also call in for an inquiry regarding policy status and billing information. This automated service is available 24 hours a day, 365 days a year. Call FR-19 FILINGS FR-19 filing forms can be obtained from the THI website. Refer to the Electronic Supplies section above for instructions on how to access the form. PLEASE NOTE THAT THIS FORM SHOULD ONLY BE FAXED TO THE MVA. Please make sure that it is filled out completely and accurately. Hard copy FR-19 s that can be distributed to insureds can be ordered in one of the following ways: 1. mservice@victoriainsurance.com 2. Fax a Supply Request: Note: Supply Request item MD FR-19 paper. No more than 20 per request without approval of Product Manager 3

6 service highlights continued... SR-22 FILINGS SR-22 filings cannot be issued for secondary states on Maryland policies at this time. PRODUCTION REPORTS AND COMMISSION STATEMENTS Production reports and commission statements have been added to the Victoria web site, located on the Agent Center. Key information like premiums, policy counts, loss ratios, etc are now available via this new function. All commission related information has also been added to help track your production payments. REINSTATEMENT WITH SAME TERM (RST) After a policy has canceled for nonpayment of premium, there is a 7-day window in which payments of premium can still be accepted. There is a dedicated team to hand Reinstatement with Same Term transactions. The phone number the agent needs to call is Hours of operation are 8:00 am to 7:00 pm CST. Payments should not be processed without calling the service center. Processing a payment before calling the service center will cause the policy to be reinstated with a lapse in coverage and the process is not reversible. The amount needed to reinstate will be reflected when you click Make a Payment on the customer s canceled policy. The customer can pay any amount that is equal to or greater than the minimum amount listed. Amounts less than the minimum will not be accepted. Note: Payments received on Saturday will be honored if called in on Monday. These payments should not be posted on your system until after the center has been contacted and the policy reinstated the following Monday. Do not give customers this phone number. Customers are not permitted to utilize this service. All calls must be placed by an agency representative. Mailed payments or customer payments taken over the phone by the service center are not impacted by this process and will continue to be handled as they are today. quick reference guide REINSTATEMENT (WITH NEW TERM) After a policy has cancelled for nonpayment of premium, there is a 30-day window in which payments of premium can still be accepted. The payment, if adequate, will automatically reinstate the policy, however, the policy will have a new effective and expiration date. The policy number will remain the same. Our website will provide you with a recommended amount and minimum amount due to reinstate the policy. These amounts are based on the policy as it existed prior to the cancellation. The recommended amount due is the preferred amount. If the minimum amount due is paid, then another payment will be due within 14 days. After the payment is uploaded, the policy will be re-rated based on the new business revision in effect at the time of the Reinstatement. As result, the premium may change. A new Declarations Page will be mailed to the appropriate parties. REWRITE OF PREVIOUSLY UPLOADED POLICIES Policies can be rewritten between 31 and 180 days of an insured s previous Victoria policy cancellation (including midterm cancels and non-pays), with submission of a new downpayment. The old policy remains cancelled, and the insured is given a new policy number. There is a lapse in coverage between the cancel date of the old policy and the effective date of the new policy. With this program, you don t have to write a completely new application each time a policy lapses. Rather, you have the ability to retrieve all the policy information and upload the rewritten application by using the Rewrite function in our webbased rating software. All policies will be underwritten using years driving experience, points as of the new effective date of coverage, and the rates that are in effect at the date of the re-write. 4

7 SERVICE HIGHLIGHTS CONTINUED... ELECTRONIC FUNDS TRANSFER Savings, Convenience, and Flexibility for your Customers Reduced installment fees Automatic, monthly withdrawals Choice of withdrawal date Choice of withdrawal mediums: Checking, Savings, or Credit Card Enrollment Go to Under the New Business tab, choose New Quote. Complete all sections of the Quoting Mode. Select one of the EFT bill plans under Pay Plans in the Quoting Mode Upon completion of the Quoting Mode, proceed to the Application Mode. Complete all sections of the Application Mode. Under Payment in the Application Mode, enter a down payment amount and choose a down payment option from the pull down menu provided. Complete necessary information. Choose an EFT Method and Start Sweep Date from the pull down options provided. QUICK REFERENCE GUIDE Other Important Details An authorization agreement will print out with the application. Please have the insured and the account holder sign this form and keep the original signed in your file. A preliminary payment schedule specifying the amount and date of each sweep will print off with the application. A final payment schedule will be mailed to the insured after the policy has been issued. A revised payment schedule will be sent if there is a policy change that affects premium. No paper bills will be sent with the EFT payment plans. ENDORSEMENTS BY FAX, MAIL, PHONE OR ON-LINE Endorsements can be requested by mail, fax, phone or on-line. Simply use a standard Victoria Endorsement form and drop it in the mail or fax it directly to our Underwriting Department at For additional details and information on phone-in endorsements, see page 10. Victoria Insurance also offers internet endorsements on our website, Agents may receive a quote on an endorsement, as well as submitting an endorsement for immediate on-line processing. You will receive a confirmation at the time of submission, as well as a confirmation . All changes done on-line will be reflected in the Policy Inquiry and billing section of our website. Agents may process the following endorsements on the internet: Add/Change/Delete/Replace a Vehicle Add/Change/Delete a Lienholder Add a Driver Change Address/Phone 5

8 SERVICE HIGHLIGHTS CONTINUED... RESPONSIVE CLAIMS SERVICES Victoria accepts new claim reports 24 hours a day, 7 days a week. Please encourage insureds / claimants to contact us directly at In the event of an emergency claims situation, our rapid response claims service is available after hours, including weekends and holidays. Experienced claims professionals will contact your insureds within 24 hours. On a daily basis we produce reports for claims opened and claims paid, which are sent to each agency. These reports include the insured s name, policy number, claim number, loss date and the handling adjuster. In addition, we produce a monthly summary report for opened and closed claims which is mailed to each agency. VIN LOOKUP Our web-based rating system retrieves vehicle information after the VIN number is entered. MVR CHARGEBACK RULE This service is provided at no charge, providing 80% of the MVRs that are run by an agency during the month convert into applications. To count as a conversion, the individual on the MVR must be listed on an application submitted within 30 days of the MVR order date. QUICK REFERENCE GUIDE However, if less than 80% of the MVRs convert into applications, we will charge back the cost of the MVRs ordered through the rating engine. Charge-back amounts are deducted from subsequent commission statements and a detailed report is provided for reconciliation purposes. The following is an example of the charge back calculations: If an agency runs 100 MVRs during a month, but only submits applications for 60 of them (60%). The charge back amount is the difference between the threshold (80%) and the percentage submitted (60%). In this case, the agency will be charged back for 20% of the MVRs that were run (80% - 60% = 20%) The ordering of MVRs on the web rating engine helps maximize agent ease-of-use. This feature also keeps write-backs down to a minimum, giving your agency more free time to spend on writing new business. Temporary ID Cards The temporary ID card is good for 45 days from policy inception. For policies written with a down payment of 25% or lower, the Permanent ID Card, which indicates coverage for the entire 6 month term, will be issued only after the first installment is paid. The insured will be notified of this I.D card hold in the packet that contains their declaration pages. Once the first installment is paid, the Permanent ID Card will be mailed to the customer. 6

9 BINDING AUTHORITY/GENERAL PROCEDURES Coverage on applications, renewal requests and endorsements will be bound as of the date and time requested, provided: 1. The envelope is postmarked within 3 business days of the binding authority period stated in your agency contract, (for mailed applications). 2. The application complies with the underwriting rules, regulations and rates of this manual. 3. The application is fully completed and signed by both the named insured and the agent. 4. The full downpayment and applicable fees are received with the application. 5. The application is not back-dated to cover an accident or loss which has already occurred. VICTORIA DOES NOT AUTHORIZE AGENTS TO ENTER INTO PREMIUM FINANCE AGREEMENTS RELATING TO ANY VICTORIA POLICY WITHOUT PRIOR WRITTEN APPROVAL. NOTE: AGENTS DO NOT HAVE THE AUTHORITY TO ISSUE POLICIES, ENDORSEMENTS, CANCELLATIONS OR REISSUES. VICTORIA RESERVES THE RIGHT TO FINAL UNDERWRITING APPROVAL ON ALL SUBMITTED RISKS. SEVERE WEATHER RESTRICTION UNDERWRITING GUIDELINES Physical damage (Collision or Comprehensive) coverage may not be bound on new business or added to or increased on an existing policy in counties where The National Weather Service has issued a tornado, hailstorm or other severe weather watch or warning. COMMISSION Commission rates will be communicated to agents, by company, based on individual business plans and will be at least 10% for New and 10% for Renewal business. 7

10 UNACCEPTABLE RISKS UNACCEPTABLE DRIVERS 1. Drivers from New York, New Jersey, District of Columbia, Pennsylvania, Virginia or Delaware who do not obtain a Maryland license within 35 days of the policy effective date. Military risks may keep their home state license while stationed in Maryland. 2. Any driver under the minimum state driving age, except those with a temporary permit/license. 3. Individuals with a revoked or cancelled license. 4. Applicants who have had a policy canceled by Victoria for loss experience or misrepresentation. 5. Applicants who have been convicted of insurance fraud. 6. Applicants involved in an illegal enterprise or occupation. 7. Applicants employed in occupations involving the use of an insured vehicle by drivers who are neither residents of the insured's household or dependents of the insured. 8. Any driver who is physically or mentally impaired who does not provide a physician's statement in which the physician states that such person is capable of safely operating a motor vehicle. 9. Any driver who does not currently reside and operate the vehicle(s) in the state of Maryland at least 10 months a year (See non-resident surcharge). 10. International or Foreign Dignitaries UNACCEPTABLE POLICIES 1. Policies with two or more Artisan/Business use vehicles. Refer to Acceptable Business Use on page Policies listing vehicles from more than one household. 3. Policies where Estates, Receiverships, Corporations or Partnerships are listed as the named insured. 4. Non-Owner policies with Business/Artisan Use. 5. Policies with more than 5 vehicles. 6. No more than one Victoria Private Passenger Auto policy may be purchased per named insured or household other than children who own their own vehicles and unrelated residents/roommates. 7. More than 3 at-fault accidents per policy in the last 35 months, each in excess of $ Customers with a prior unpaid balance of $20, or more, on a Nationwide, Titan, or Victoria policy, unless the customer agrees to pay the prior balance, in full, at time of writing a new policy. 9. Policies identified through the Specialty Validation Tool as having multiple addresses. UNDERWRITING GUIDELINES UNACCEPTABLE VEHICLES 1. Vehicles without a Maryland garaging address. Refer to Non-Resident Surcharge on page 21 for exceptions to this rule. Valid garaging addresses include rural route boxes but do not include P.O. boxes in metropolitan areas. 2. Vehicles with a principle garaging location in the state of Michigan. 3. Vehicles with a load capacity over 1 ton. 4. Bajas, dune buggies, buses, mini-buses, camper vans, motor homes, ATV s, step vans or panel vans. 5. Custom built vehicles. 6. Vehicles not registered for street use. 7. Vehicles leased or rented to other drivers by the applicant. 8. Vehicles regularly available to non-listed driver(s). 9. Vehicles with less than four (4) wheels. 10. Vehicles used for: a. Racing. b. Emergency services. c. Livery, taxi or limousine service. These include but are not limited to, vehicles used to transport nursery or school children, migrant workers, hotel or motel guests, patients or members of a van pool. d. Retail or wholesale delivery. These include but are not limited to, vehicles used for delivery of magazines, newspapers, mail, pizza (or other food items), farm produce, courier/escort service. 8

11 UNACCEPTABLE RISKS CONTINUED Vehicles equipped with: a. Altered suspensions, including but not limited to, lift kits over four (4) inches. b. Snow plows. c. Cooking equipment or bathrooms. 12. The following vehicles are unacceptable for Physical Damage: a. Salvaged vehicles. b. Collector s items. c. Kit cars. d. Vehicles originally manufactured for foreign use. e. Reproduction models. f. Vehicles over $75,000 actual cash value Passenger Vans 14. Ineligible Vehicle List Make Acura Alfa Romeo AMC American Am Gen ARO Aston Martin Audi Audi Audi Austin Austin Healey Avanti Bentley Berton BMW BMW BMW BMW BMW BMW Bricklin Bugatti Cadillac Caterham Checker Chevrolet Chrysler Citroen Daewoo Daihatsu DeLorean DeTomaso Dinan Dodge Dodge Duesenberg EV-1 Excalibur Ferrari Fiat Model NSX A8 R8 S6 6-series 7-series M5 M6 X6 Z8 Escalade Express G3500 Prowler Shelby Viper Make Ford Ford Ford GMC GMC GMC GMC Hennessey Holden Hudson Hummer Infinity Infinity Jaguar Jaguar Jaguar Jensen Kit Lada Laforza Lamborghini Lancer Lancia Land Rover Lexus Lexus Lexus Lexus Lotus Masera Maybach Mcclaren Mercedes Benz Mercedes Benz Mercedes Benz Mercedes Benz Mercedes Benz Mercedes Benz Mercedes Benz Morgan Morris Model GT Econoline G350 E350 Yukon Denali Savannah G3500 Vandura G3500 G3500 H2 QX56 FX50 XF XJ XK Ranger Rover LS LS Hybrid LX SC CL Class CLS Class G Class GL Class S Class SLR Sprinter Make Mosler Opel Packard Panhard Panoz Pantera Peugeot Pininafarina Plymouth Porsche Proton Puma Renault Riley Rolls Royce Rootes Roush Ruf Saleen Seat Shelby Simca Singer Skoda Spyker SSC Sterling Steyr Studebaker Stutz Sunbeam Tatra Tesla Triumph Tucker TVR Vauxhall Willys Wolseley ZAZ Model Prowler UNDERWRITING GUIDELINES 9

12 GENERAL GUIDELINES 1. All bills, new business declaration pages, endorsements, cancellations, reissues and renewals will be mailed directly to the insured. The agent will receive copies of these items (except for bills). 2. The Company will forward copies of cancellation and reinstatement notices to the lienholder(s) and additional interest(s). The agent is required to send endorsement declarations to the lienholder(s) and additional interest(s). ENDORSEMENTS 1. All premium adjustments will be made at rates that were in effect at the time the policy or renewal was issued. 2. The premium will not be changed mid-term because of changes in driving record or driver age. 3. Additional drivers and vehicles are covered as of the date and time requested if the request is submitted within binding authority. 4. Replacement vehicles. Unless a change in coverage is requested, replacement vehicles will have the same coverage as vehicles replaced. We request that you notify us of replacement vehicles within 30 days. 5. Additional vehicles. Please notify us of all additional vehicles within 30 days of acquisition. 6. An endorsement form should be completed and submitted to the Company if there are any changes in driving habits, driver conditions or vehicle changes which serve to increase the risk of loss. 7. Additional premium for endorsements are spread over the remaining unbilled installments. If there are no remaining installments, a bill will be sent to the insured for the entire amount of the endorsement. UNDERWRITING GUIDELINES FOR YOUR CONVENIENCE YOU MAY USE OUR WEBSITE, MAIL, FAX, OR PHONE-IN ENDORSEMENTS. please KEEP IN MIND THAT ANY ENDORSEMENT REQUIRING A SIGNATURE, i.e., changing the named insured, must be faxed or mailed with signature. PHONE: FAX: RENEWALS 1. Direct bill payment plans can be changed at renewal provided Victoria is notified 75 days in advance of the renewal effective date. CANCELLATIONS 1. If an insured is short on the downpayment or if a required installment payment is not received by the due date, a cancel notice will be sent. The cancellation effective date will be 10 days from the date the notice is mailed. 2. Cancels at insured s request must be submitted in writing and include the policy number and insured s signature. 3. Return premiums are sent directly to the insured. 4. If we receive a non-sufficient funds (NSF) check as an installment payment, the replacement check must be a money order or cashier's check. A $30 service fee will be charged. 5. Insureds will automatically be refunded any premium owed to them (regardless of amount). 10

13 REINSTATEMENT WITH SAME TERM (RST) After a policy has canceled for nonpayment of premium, there is a 7-day window in which payments of premium can still be accepted. There is a dedicated team to hand Reinstatement with Same Term transactions. The phone number the agent needs to call is Hours of operation are 8:00 am to 7:00 pm CST. Payments should not be processed without calling the service center. Processing a payment before calling the service center will cause the policy to be reinstated with a lapse in coverage and the process is not reversible. The amount needed to reinstate will be reflected when you click Make a Payment on the customer s canceled policy. The customer can pay any amount that is equal to or greater than the minimum amount listed. Amounts less than the minimum will not be accepted. Note: Payments received on Saturday will be honored if called in on Monday. These payments should not be posted on your system until after the center has been contacted and the policy reinstated the following Monday. Do not give customers this phone number. Customers are not permitted to utilize this service. All calls must be placed by an agency representative. Mailed payments or customer payments taken over the phone by the service center are not impacted by this process and will continue to be handled as they are today. REINSTATEMENTS (WITH NEW TERM) After a policy has cancelled for nonpayment of premium, there is a 30-day window in which payments of premium can still be accepted. The payment, if adequate, will automatically reinstate the policy, however, the policy will have a new effective and expiration date. The policy number will remain the same. Our website will provide you with a recommended amount and minimum amount due to reinstate the policy. These amounts are based on the policy as it existed prior to the cancellation. The recommended amount due is the preferred amount. If the minimum amount due is paid, then another payment will be due within 14 days. After the payment is uploaded, the policy will be re-rated based on the new business revision in effect at the time of the Reinstatement. As result, the premium may change. A Reinstatement Declarations Page will be mailed to the appropriate parties. UNDERWRITING GUIDELINES EXCLUSIONS 1. All household members 15 years or older (including roommates) must be identified on the application. All drivers must be rated or excluded. Drivers under suspension must be rated or excluded. 2. A spouse may be excluded. (A non-driving spouse must be excluded from the policy.) 3. The named insured cannot be excluded or deleted without cancelling the policy. 4. Requests to exclude drivers from coverage must be signed by the named insured on the designated space located on the front of our auto application or the Driver Exclusion form. 11

14 UNDERWRITING TIER DETERMINATION Victoria uses a combination of underwriting criteria to develop a rate for your customer. These criteria include the following: Prior Insurance 1. Prior insurance means the named insured has proof of private passenger automobile liability insurance that verifies that the named insured or spouse had six (6) months of continuous liability coverage. Prior limits are those limits in force on the policy for a minimum of six (6) months. 2. Prior insurance criteria considers the number of lapse days and the lesser of prior or chosen BI limits. 3. The software will print a fax cover sheet indicating proof of prior insurance is required to be sent in to Victoria. 4. Acceptable proof consists of declarations page, renewal or cancellation notice that shows the expiration date and bodily injury limits with the name of the insured or spouse the same as the applicant. Policies with Victoria will not be accepted as proof of prior. Compliant without Insurance May be selected in situations where prior insurance was not necessary. For example, return from active military duty, first time vehicle purchase or other situations in which the insured was not legally required to maintain insurance. Select Compliant without Insurance on the prior insurance question. The software will default to minimum state limits. If the insured can prove higher than minimum state limits prior to being Compliant without Insurance, select the appropriate limit and submit proof. The insured will need to give the reason why he/she did not have prior insurance and provide the appropriate supporting documentation. UNDERWRITING GUIDELINES Non-chargeable Incidents Includes comprehensive losses of $1,000 or more, UM/UIM losses, and not-at-fault accidents. Residency Status 1. Residency status criteria considers whether the named insured or spouse owns one of the following types of dwellings: a. House b. Townhome c. Condominium. 2. If the named insured or spouse owns a home, townhome, or condominium, proof is required in the form of a declarations page, mortgage payment coupon, or copy of property tax bill. This can be faxed along with the Proof of Prior Insurance. Multiple Products Affiliated Homeowner's Policy Affiliated homeowner's policy considers whether the named insured or spouse has a homeowner's policy in force underwritten by Nationwide affiliated companies. Other Affiliated Policies Other affiliated policies consider whether the named insured or spouse has commercial, renter's insurance, farm, mobile home policies inforce or other financial products (Life, Annuity, or health policy) underwritten by Victoria affiliated companies. Non-Affiliated Homeowner Policies Non-affiliated homeowner s policy considers whether the named insured or spouse owns a house, townhouse, or condominium that is underwritten by another company. Multi-Car Considers whether there is more than one vehicle on the policy. 12

15 UNDERWRITING TIER DETERMINATION CONTINUED... UNDERWRITING Tier Determination at Renewal The various criteria used to establish the tier in which the policy is placed will be re-evaluated, where applicable, at policy renewal. If we are informed of a change in home ownership status, this will be considered at renewal tier placement. If the policy s multi-car status changes, this will be considered at renewal tier placement. If the policy's BI limits change, this will be considered at renewal tier placement. Non-chargeable incidents that occur after the initial tier placement will be considered during renewal tier placement. Therefore, these will be included in the number of non-chargeable incidents for tier determination at renewal. Non-chargeable incidents that are no longer within the initial 35-month experience period will NOT be considered during renewal tier placement Therefore, these will no longer be included in the number of non-chargeable incidents for tier determination at renewal. The customer s financial responsibility (credit score) information will be reviewed automatically at policy renewal every 24 months or at any policy renewal if requested by the insured. The customer credit tier or credit factor will not be increased on any renewal while the policy is in force. Financial Responsibility 1. Financial responsibility must be ordered for applicants that are 19 years of age or older. 2. To order this information, simply follow the instructions on your quoting software. Please read the disclosure to the customer before ordering the score. 3. Include the full name, address and social security number of the applicant in order to obtain financial responsibility. An applicant has the right not to provide his/her social security number, but this may result in unconfirmed financial responsibility. 4. If a customer suspects inaccuracies in their credit information, they may request a credit report by calling or writing to the credit vendor. Please see the help section in the rating software for the credit vendor s address and telephone number. UNDERWRITING GUIDELINES 13

16 LIABILITY BI / PD LIMITS Limits of BI/PD Liability must be the same for all vehicles on the same policy. The insured can elect to extend Bodily Injury coverage for family members. If Family Liability is selected the coverage will expand from the state minimum limits to the policy limits. AVAILABLE LIMiTS 30,000/60,000/15,000 30,000/60,000/20,000 30,000/60,000/25,000 50,000/100,000/25,000 50,000/100,000/50, ,000/300,000/50, ,000/300,000/100, ,000 CSL NON-OWNER COVERAGE 1. Non-Owner coverage may be written when an insured needs Liability coverage for the personal operation of a vehicle NOT owned by the insured or a person living in the same household as the insured. 2. Coverage applies ONLY to private passenger automobiles. 3. Coverage does not apply to insureds who use vehicles in the course of business (i.e. auto salesmen or dealership employees). 4. BI/PD Liability, Medical Payments, UM/UIM, UMPD, Personal Injury Protection, and increased limits are available. 5. Discounts are available. 6. A vehicle can be added to a non-owner policy by completing the appropriate policy change request form. Coverage will apply to the owned vehicle provided the named insured notifies us within 30 days after the date of acquisition. The nonowner policy will then be converted to an auto policy. Normal binding authority applies. COVERAGE DESCRIPTION & RULES - LIABILITY 14

17 LIABILITY CONTINUED... UNINSURED/UNDERINSURED MOTORISTS COVERAGE (UM/UIM) 1. UM/UIM coverage must be purchased for each vehicle. 2. If the insured does not complete the UM/UIM coverage waiver, UM/UIM will be issued at the same limits as BI/PD Liability. 3. The insured may choose to purchase UM/UIM coverage at limits which are lower than the limits of BI/PD Liability by appropriately completing the UM/UIM coverage waiver. (Higher limits may not be selected.) 4. Coverages selected must be provided at the same limits on each car of a multi-car risk. 5. The UM/UIM premium shall not be subject to modification under the provisions of any rating plan or other manual rule. 6. UMPD coverage is required. 7. UMPD limit may not exceed the PD limit. 8. UMPD coverage is limited to the lesser of the actual cash value of the vehicle or the purchased coverage limit. 9. UMPD coverage must be provided on all cars on the policy. FIRST VEHICLE AND ADDITIONAL VEHICLES AVAILABLE LIMITS 30/60/15 30/60/20 30/60/25 50/100/25 50/100/50 100/300/50 100/300/ ,000 CSL MEDICAL PAYMENTS COVERAGE 1. The Medical Payment coverage limit is per person. 2. Coverage is available only when BI/PD Liability coverage is purchased. 3. Coverage must be provided on each vehicle of a multi-car risk at the same limit or it must be rejected for all vehicles. 4. Coverage may be purchased in conjunction with Full PIP, but not with Limited PIP. 5. Coverage may be purchased on a Non-Owner policy. COVERAGE DESCRIPTION & RULES - LIABILITY AVAILABLE LIMiTS $ 500 1,000 2,000 5,000 15

18 LIABILITY CONTINUED... PERSONAL INJURY PROTECTION 1. Coverage may be waived by completing the Waiver of Personal Injury Protection form. 2. Coverage must be purchased on each vehicle of a multi-car risk at the same limit or waived. 3. Limits are per person per accident. 4. Coverage is available only when Liability BI/PD is purchased. 5. Medical Payments coverage may be purchased with Full PIP only. 6. Must be purchased on a Non-Owner policy. 7. Limited PIP means that PIP coverage has been waived in writing for the named insured, all listed drivers and household family members 16 years old or older. It provides PIP coverage for any household family members that are less than 16 years old. ACCIDENTAL DEATH BENEFIT COVERAGE 1. Coverage is optional; may be rejected 2. Policy level coverage if coverage is selected, all vehicles must have the same limits 3. May be purchased on a non-owner policy 4. Cannot be added mid-term. AVAILABLE LIMITS $10,000 $20,000 $30,000 $40,000 $50,000 COVERAGE DESCRIPTION & RULES - LIABILITY 16

19 PHYSICAL DAMAGE COMPREHENSIVE AND COLLISION RULES 1. The model year of the vehicle is that assigned by the manufacturer. 2. Comprehensive and Collision coverages are based on "actual cash value" and include equipment which is NOT considered "Special Equipment". (See "Special Equipment" on page 18). 3. Comprehensive coverage may be written without Collision coverage (no other coverages). This is permitted only on a multicar risk. Only 1 vehicle is permitted to have Comprehensive-only coverage without liability AND at least one vehicle on the policy must carry BIPD Liability coverage. Multiple vehicles may be written with comprehensive-only coverage as long as Liability coverage is present. DEDUCTIBLES 1. Vehicles of a multi-car risk may have different deductibles. 2. All Comprehensive and Collision deductible combinations are valid. (Except: $1,000 Collision deductible must be purchased with a minimum $250 Comprehensive deductible.) 3. Comprehensive premium is subject to a minimum of $30 per annual term and $15 per 6-month term. 4. Lienholder deductible clause In the event you auto is damaged and is involuntarily or voluntarily repossessed by the lienholder after sustaining damage, the deductible amount applicable to any loss adjusted and payable to the lineholder shall be the lower of $500 or the customer s deductible shown on their declarations page. The deductible amount otherwise applicable to losses payable to the policyholder shall be the deductible amount shown on their declarations page. AVAILABLE DEDUCTIBLES $50 - collision only collision only collision only ,000 LOSS OF USE COVERAGE 1. May only be offered in conjunction with Physical Damage. 2. This coverage may only be written at policy inception or added at renewal. 3. Loss of Use coverage reimburses up to the maximum limit when a vehicle must be rented due to a covered Comprehensive or Collision loss to an insured vehicle. (In the event of a covered loss, Liability and Physical Damage on an insured car extends to a rented car, if it is a temporary substitute car.) COVERAGE DESCRIPTION & RULES - PHYSICAL DAMAGE MAXIMUM LIMIT 20 / $ / $900 17

20 PHYSICAL DAMAGE CONTINUED... TOWING REIMBURSEMENT COVERAGE 1. May only be offered in conjunction with Physical Damage. 2. This coverage may only be written at policy inception or added at renewal. 3. Towing and Labor Reimbursement Coverage is applicable when the insured vehicle must be towed due to a disablement. AVAILABLE LIMITS PER DISABLEMENT $50 / $100 $75 / $150 SPECIAL EQUIPMENT COVERAGE 1. Special equipment is subject to the same deductible as the deductible for physical damage coverage and is not covered unless specifically listed on the application or the Special Equipment Endorsement form and the proper premium is paid. 2. The following items are considered special equipment: a. special carpeting and insulation, furniture, bars, or television receivers; b. facilities for cooking and sleeping, including enclosures; c. height-extending roofs; d. custom murals, paintings, or other decals or graphics. To obtain coverage, list special equipment on the application. The premium is based on the table below. RANGE OF COVERAGES Equipment Cost - New $ ,000 1,001-1,500 1,501-2,000 2,001-2,500 COVERAGE DESCRIPTION & RULES - PHYSICAL DAMAGE 18