CA ( ) CSE Safeguard Ins. Co. UT-CA-Page 1 of 18

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1 CSE Safeguard Ins. Co. BUSINESS ELITE COMMERCIAL AUTO TABLE OF CONTENTS Utah Page # Page # I General Rules 2 A Introduction Commercial 2 III Rating Manual 13 B Commercial Auto Eligibility -Overview 2 A Premium Development 13 C Deductibles 2 1 Liability coverage's 13 D Individual Risk Premium Modifications 3 2 Medical payments 13 1 Risk Characteristics Defined 3 3 Personal Injury 13 a Management - liability and auto physical damage 3 4 UM/UIM & UMPD 13 b Equipment 4 5 Auto Physical Damage 13 c Class Characteristics (Unusual features of risk) 4 B Exceptions to ISO Rules - 13 d Drivers A. Policy Writing Minimum Premiums 13 e Safety Organization Additional Premium Changes 13 f Dispersion or concentration of Values - Auto Return Premium Changes 13 Physical Damage only g Loss history Premium Development Other Than Zone- 14 Rated Autos E Mandatory Coverage's Trucks, Tractors & Trailers 14 F New Rates 7 6 Size Class 14 G Underwriting Compliance Review 7 7 Business Use Class 14 H Policy Cancellation C4. Radius Class. 14 I Policy Term Trucks Tractors & Trailers primary classification J Policy Writing Minimum Premium 7 10 Secondary codes: K Premium Collections Private Passenger Type; 17 1 General information Antique Autos (class code 9620) 17 2 Deferred Payment Plan Funeral Directors Autos 17 3 Cancellation Invoice Fee Non-Owned Liability 17 4 Non-Sufficient Funds Fee Hired Autos 18 P Premium Development for Mandatory Coverage's Additional Insured Endorsement 18 II Commercial Auto Underwriting Rules Waiver of Subrogation 18 A Eligibility 9 B Submit Items Commercial Auto 9 C Ineligibility 9 D For-Hire Vs. Not-For-Hire Definition 10 E Driver Management 10 1 Motor Vehicle Reports 10 2 MVR Surcharge Application 10 3 Mid-Term Drivers changes 10 4 Driver reporting 10 5 Unreported Driver Surcharge 11 6 Personal use surcharge 11 7 Youthful Driver surcharge 11 8 MVR Submit / Decline 11 F Driver Record Surcharge Percentages 12 CA ( ) CSE Safeguard Ins. Co. UT-CA-Page 1 of 18

2 CSE Safeguard Ins. Co. BUSINESS ELITE COMMERCIAL AUTO GENERAL RULES Utah INTRODUCTION COMMERCIAL AUTO This guide contains the rules, classifications and rating information for writing of commercial auto coverage for small to medium sized firms meeting the requirements the program specified below. CSE Safeguard Ins. Co. commercial auto segment is written utilizing ISO forms and structure. Commercial Auto Eligibility Overview - Utah CSE Safeguard Ins. Co. preferred commercial auto program is a companion policy to our Business Elite property and liability product. Another commercial line policy must be in written in order to issue a preferred auto policy. United will generally write Commercial auto on the same risk classifications included in this product. Mono-line auto policies may be written subject to acceptability and will be issued with a factor of 1.15 over rates shown in this manual. We seek to insure applicants who recognize the importance of safety in their commercial auto operation by having in place driver and vehicle controls commensurate with the size and type of their operation. CSE provides coverage for not-for hire risks operating within a maximum distance of 300 miles from their garaging location. The program is designed to cover commercial use of the applicant s vehicles; private passenger types must have proper controls in place to be eligible. The insured must have a policy regarding personal use of company vehicles. Information regarding controls may be required to underwrite the account. DEDUCTIBLES Liability deductibles will generally not be used and are at the discretion of the company. Auto Physical Damage deductibles are available at the agent/insured discretion except the minimum deductible available is $ 250. CA ( ) CSE Safeguard Ins. Co. UT-CA-Page 2 of 18

3 INDIVIDUAL RISK PREMIUM MODIFICATIONS Applicants will be viewed in light of their overall operation; the following modifications may be applied to recognize such special characteristics of the risk that are not fully reflected in the basic premium or rates. To be eligible for these modifications the risk must generate a minimum of $ 1,500 in premium prior to the application of any schedule credits or debits or if another line is written, $ 1,500 in premium for all lines prior to the application of any schedule credits or debits. The total credits or debits under the following table may not exceed 25%. The following credits may be applied if the conditions following the table are met. Agents can apply a maximum of 10% credit or debit without company approval. Al l adjustments are subject to review and approval of the company. IRPM RANGE OF MODIFICATIONS CREDITS DEBITS 1. Management 5% to 10% 2. Equipment 5% to 10% 3. Class Characteristics 10% to 15% 4. Drivers 15% to 15% 5. Safety Organization 5% to 5% 6 Dispersion or concentration of Values 0 % to 2% Auto Physical Damage only 7. Loss History 15% To 20 % 1. Risk Characteristics Defined a. Management - liability and auto physical damage coverage. To be eligible for any credit management creates a pro-safety environment and is responsive to reasonable requests or recommendations from the insurance company. Failure to do so will result in a debit even if the years in business exceed the requirements shown below. The following scale shall apply as to the years the business has been in operation under the current name with a minimum of 3 years verifiable insurance history. Years in Business 5% credit to 5% Debit 5% debit 0% 5% credit < Years in Business CA ( ) CSE Safeguard Ins. Co. UT-CA-Page 3 of 18

4 b. Equipment Liability & auto physical damage Two areas that have a direct impact on the exposure regarding equipment are the model year of the equipment and use of equipment. The model year is addressed in the table below. If all units are 12 years old and newer and most are within 5 years old the risk is above average and will qualify for schedule credits. If all equipment is not 12 years old or newer, the equipment is below average and should be debited. Debits Average Credits 3% - 5% 1% - 2% 0 1% - 2 % 3% - 5% Any unit >22 years old Any units between 22 and 12 years old All units 12 years old or newer 50% or more of units are 5 years old or newer All units are 5 years old or newer The exposure of hauling double trailers will require a 2% debit. c. Class Characteristics (Unusual features of risk) d. Drivers Since class characteristics are difficult to quantify, any credit or debit from this section shall be administered by company underwriting. Items that will be considered will be verifiable conditions that are unique to the risk. Examples of items considered are: extremely low/high use of vehicles, operation on a tightly controlled job site, unusual safe or hazardous conditions as a result of crime, vandalism or locations not normally contemplated in the rate. Drivers should be selected on the basis of aptitude and ability to meet company standards for operating insured vehicles. Proper supervision and controls should be in place to insure safe drivers are employed. Two essential components in driver quality are experience in operating the size and type of equipment and length of time with the company. Significant changes in driver experience or time with the company mid policy term may be adjusted during the policy term. Credits and debits for this section will be determined as follows: Experience of Drivers 4% Credit to 4% Debit The following guide must be used to apply schedule rating for drivers experience as defined above. Debits Average Credits 4% % 0% 1% % All drivers with 2 or more years experience Any risk with drivers < 2 years experience All drivers with 3 or more years experience CA ( ) CSE Safeguard Ins. Co. UT-CA-Page 4 of 18

5 Time with Current Employer 12% Credit to 15% Debit The following guide must be used when applying the schedule rating for time with current employer. The ranges identified must be followed. Generally, the credits or debits within a range should be proportionate to the percentage of drivers retained for longer than 12 months. Any credit or debit within a range is acceptable but documentation is necessary when not proportionate. Debits Average Credits 15% 14%--10% 9%---1% 0% 1%---7% 8%---12% <25% retained longer than 12 months <25-44% retained longer than 12 months 45% - 59% retained longer than 12 months 60% retained longer than 12 months 61% - 75% retained longer than 12 months 76% - 100% retained longer than 12 months e. Safety Organization The number of power units per account has a direct bearing on what constitutes an average safety organization. Naturally, larger accounts are expected to have a more sophisticated safety program then smaller accounts. The minimum expectations for an average risk are documented for 1-10 power units, power units, and accounts of over 25 power units. Risks having just the minimum qualifications will not qualify for a credit or debit power units 1. Accident investigation by the supervisor or owner 2. Review the accident with the driver and initiate a corrective or disciplinary action plan if needed. Risks with over 5 units missing one of these components will be debited 2%, if both are missing a 5% debit will be applied. Insureds with both of these components in place and at least two additional safety practices* will qualify for a credit up to 5% depending on the effectiveness of the additional components power units 1. Accident investigation by the supervisor or owner 2. Review the accident with the driver and initiate a corrective or disciplinary action plan if needed. 3. Written minimum hiring standards regarding number of years experience and motor vehicle record qualifications for drivers. 4. Informal safety meetings held at least bi-annually A risk without all four of these components will be subject to a debit within a range of 3% to 5%. A risk with all four of these components in place and at least two additional safety practices will qualify for a credit of up to 5%. A risk with all four of these components in place and more than three additional safety practices with evidence of their implementation will qualify for a credit of up to 10%. CA ( ) CSE Safeguard Ins. Co. UT-CA-Page 5 of 18

6 26 or more power units 1. Written formal safety program that is currently in use. 2. Written maintenance program and is currently in use 3. Written minimum hiring standards regarding number of years experience and motor vehicle record qualifications for drivers. 4. Written disciplinary policy 5. Quarterly safety meetings requiring drivers to attend a minimum of two meetings annually A risk without all five of these components in place will be subject to a debit ranging from 3% to 7%. A risk with all five of these components plus at least two additional safety practices currently in place will qualify for a credit up to 5%. A risk with all five of these components plus and more than 3 additional safety practices currently in place will qualify for a credit up to 10%. *Examples of additional safety practices include, but are not limited to: An accident review committee with driver file documentation and follow-up, a documented and implemented driver incentive program for accident or violation free driving, a driver accident participation agreement where a driver pays a portion of the deductible for any at fault accident and an active membership in an outside safety organization. Use of road observation services such as: Drivers Check, Drivers Alert or (1-800-how s my driving) f. Dispersion or concentration of Values - Auto Physical Damage only Are high valued units dispersed or parked in one location susceptible to one cause of loss? Any account with an identified concentration of values greater than $ 250,000 requires a debit of 2%. g. Loss history No credit can be given without proper documentation of 3 years minimum prior loss history. Company currently dated loss runs are required; debits may be applied due to no verifiable loss history. Credibility of loss experience improves as the size of the risk increases; adjustments due to loss history will be adjusted differently based on the number of power units in the experience period. 3 year loss ratio 3 to 10 power units 11 to 25 power units 26 power units and over 20 % and less -7% -12% -15% 21 to 30 % -4% -10% -14% 31 to 40 % -3% -7% -10% 41 to 50% -1% -3% -4% 51 to 60% to 70% + 2% +10% +12% 71 to 80% +5% +15% +17% Over 80% + 7% +20% +25% Mandatory Coverage s The Commercial Auto policy must be written to provide coverage for: 1. Auto Liability (no stand alone Hired or non owned auto policies are written) or 2. Auto Physical Damage Insurance CA ( ) CSE Safeguard Ins. Co. UT-CA-Page 6 of 18

7 NEW RATES Because of materially changed conditions, an existing rate may not be equitable. If so, a new rate may be established and policies in force may be changed. The effective date of the new rate is the date the company receives notification of the changed conditions. A policy endorsed to take advantage of a reduced rate shall be further endorsed to reflect all current rules, rates and forms. UNDERWRITING COMPLIANCE REVIEW New applicants may be visited to insure operations meet the underwriting standards of the Company. Appropriate underwriting actions and/or requests may be undertaken as a result of this review. Agents are expected to assist in the completion of this important underwriting process. POLICY CANCELLATION 1. If a policy is canceled, the return premium will be computed pro rata on all cancellations except insured request, which will be short rate. Return premium less than $15.00 will not be returned unless the insured specifically requests a return premium. 2. A flat cancellation credit shall be allowed on a renewal policy that is returned to the company or canceled within 45 days of its inception date for nonpayment of premium. Policies not paid or returned will be canceled for non payment of premium. Any earned premiums will be pursued by the company. POLICY TERM The commercial auto policy may be written for one year. Renewal premiums will be computed for each year according to the current rules and rates. POLICYWRITING MINIMUM PREMIUM For all policies, apply the policy writing minimum premium of $ 500 for policies with $ 300,000 liability combined single limit or less, $ 600 for policies with liability limits of $ 500,000 combined single limit and $ 750 for policies with liability limits of $ 1,000,000 combined single limit regardless of term. The Minimum premium for an Auto Physical Damage only is $ 500. PREMIUM COLLECTIONS A. General Information At the option of the agent, the insured may be billed for policy premiums by the agency or directly by the Company. If the Company billing option is chosen, the agent will collect the new business initial premium payment with all subsequent billings coming from the Company. The agent can choose to have the entire renewal premium billed by the Company. CA ( ) CSE Safeguard Ins. Co. UT-CA-Page 7 of 18

8 B. Deferred Payment Plan The premium for policies that are billed by the Company will be paid in installments at the option of the insured. The company plan will require a minimum of 2 months premium down with monthly payments for the remainder of the policy. Any unusual cancellation requirements can result in a requirement of additional down payment. Endorsements to a policy that affect the policy premium will be included in the next installment. Any additional (or return) premium will be divided equally between the remaining installments. If the premium has been paid in full any additional premium will be due as billed or if a refund, the refund will be paid within 30 days. A nominal service charge will be added to each installment, unless the entire term premium is paid by the renewal date. C. Cancellation Invoice Fee In accordance with the terms of the policy and any state laws governing policy cancellations, cancellation of the policy insured request will be cancelled short rate and will result in an additional service charge of $ 25 to the account. D. Non-Sufficient Funds Fee In the event that payment is made, for which there are non-sufficient funds in the checking or savings account, we will make a charge to offset the processing costs associated with funds payment. PREMIUM DEVELOPMENT FOR MANDATORY COVERAGES All rates and premiums in this manual are for an annual period and are developed using ISO premium rules combined with company exceptions. The rates and ISO exceptions are shown in the rate section of this manual. Rating of all eligible classes will be accomplished using Insur-PAS rating and issuing software. CA ( ) CSE Safeguard Ins. Co. UT-CA-Page 8 of 18

9 II A COMMERCIAL AUTO UNDERWRITING RULES ELIGIBILITY 1. Commercial auto risks requiring limits up to $ 1,000,000 CSL. 2. Vehicles with GVW or GCW up to 45,000 lbs. and not over $ 100,000 in value. 3. Applicants operating within 300 miles of garaging address. 4. Risks must provide 3 year acceptable prior loss history or demonstrate experience and ability to operate a commercial auto risk. 5. Three year currently dated loss runs are required on any account with 5 or more vehicles. 6. Current listing of drivers is required to include name, date of birth, Utah driver license number, years experience driving the vehicle type operated and hire date. B SUBMIT ITEMS COMMERCIAL AUTO The following items are to be referred to United for further underwriting discretion or acceptance: (Submit means to call CSE Safeguard Ins. Co., or fax or mail all pertinent information along with your evaluation and suggested pricing and are subject to underwriter discretion based on individual risk situations.) 1. Applicants with 10 or more power units or Applicants exceeding $25,000 in annual premium at manual rates regardless of the number of power units. 2. Applicants with a 50% or greater loss ratio in any year for the past three (3) years. 3. Applicants incurring any claim over $5,000 in the last three (3) years. 4. Applicants with Liability deductible. 5. Applicants with private passenger type vehicles. 6. Any applicant with drivers age 19. Any driver 21 and under with moving violations or accidents on their MVR must be submitted. 7. Liability on boom trucks when length of crane extends beyond length of vehicle when retracted or is over 70 ft when extended. (boom trucks are eligible only if being used in the applicant s business exclusively) 8. Livestock hauling of any kind. (will do on a very selective basis experience and radius are key) C INELIGIBLITY The following risks are NOT eligible for coverage. Please decline: 1. All vehicles with GVW or GCW over 45,000 lbs regardless of use. 2. All Pollution coverage. 3. Applicants with a driver having more than one major violation conviction. 4. All For Hire Truckers (see definition below). 5. Applicants in bankruptcy or legal reorganization. 6. Any public livery auto or bus risk. (Includes day care and church buses.) Funeral director limousines are acceptable with the balance of the account. 7. Applicants involved in carnival or circus operations. 8. Asbestos abatement contractors. 9. Blood banks or mobile medical units. 10. Couriers. 11. Emergency Vehicles. 12. Fast food delivery (including pizza delivery) including restaurant take-out delivery. 13. Gas, fuel oil, crude and hot oil haulers. 14. Hazardous waste haulers. 15. Loggers / Pulpwood / Sawdust. 16. Waste haulers except septic tank service contractors. 17. Municipalities. 18. Neighborhood ice cream trucks. 19. Propane, butane, LPG haulers and LPG sales or service, gas, fuel oil and crude oil haulers. 20. Ambulances 21. Applicants with any driver under age 19. CA ( ) CSE Safeguard Ins. Co. UT-CA-Page 9 of 18

10 This list may not be all-inclusive. When uncertainty exists, please do not assume acceptability, contact your underwriter for clarification. D FOR-HIRE (FH) vs. NOT-FOR-HIRE (NFH) DEFINITION We follow the ISO definition of a For Hire Trucker, which states in part: A trucker (for hire) is someone in the business of transporting goods, materials or commodities for another. Rate autos that haul exclusively for one concern the same as those owned by the entity. This applies to both territory and classification. As such, the determination of whether a risk is for-hire (FH) or not-for-hire (NFH) depends on the classification of the concern for which they are hauling. E DRIVER MANAGEMENT 1. MOTOR VEHICLE REPORTS A. MVRs will be obtained on all new accounts all drivers and named insureds. MVRs will be run on all additional drivers and on renewals. B. Current MVRs will be scanned with the Company copy of the policy. If they are not available when the policy is issued, a note will indicate the date the MVR was ordered. The file will be suspensed for 30 days. This rule also applies to additional operators added to the policy after inception date. Note: We will allow archived MVRs up to 90 days old. C. All surcharges must be in compliance with statutory regulations. D. Apply MVR factors if applicable. E. All accidents are considered at-fault unless a police report is provided which, in the opinion of the underwriter, gives sufficient detail to support a not-at-fault status. 2. MVR Surcharge Application A. An average driver surcharge will apply to all vehicles for Liability, PIP, Med Pay, Specified Causes of Loss or Comprehensive and Collision. B. Determine the surcharge for each driver according to the table in the rating manual. Surcharges apply to moving violations occurring during the prior three-year period based on the conviction date of the violation. The three year period is based on the policy inception date. C. For each driver, the following are acceptable at no surcharge: 1 - minor (5%) category violations. Where an accident and a violation occur on the same date, charge for the higher of the two. Example: DWI and accident on the same date, charge a 25% surcharge for the DWI. D. All accidents are considered "At-Fault" in determining the surcharge. If a police report is provided indicating the driver is "Not At-Fault," the surcharge may be removed for that accident. E. Determine the average surcharge as follows: 1. Add all driver surcharges together and divide by the total number of drivers. 2. Round to the nearest whole percentage for the MVR surcharge. 3. Apply the surcharge to each insured vehicle. 4. Vehicles added must include the MVR surcharge. 5. The surcharge remains unchanged during the policy term. 6. If the MVR surcharge is less than 3%, the surcharge shall be waived. Surcharge will be rounded to the nearest.5 percent. 7. The surcharge developed due to changes during the policy period shall be applied effective the date of the change. Note: Please refer to MVR submit/decline criteria for driver acceptability. 3. Mid-Term Drivers changes will be assessed and applicable surcharges or credits shall be applied the effective date of the change. 4. Driver reporting All drivers must be reported as soon as possible with full driver information; Full name, date of birth, driver license number, violations of the drivers, number of years experience operating this type of equipment and the date hired by the insured. The information must be listed in the United Underwriters system. Should a loss occur with an unreported driver, surcharges listed CA ( ) CSE Safeguard Ins. Co. UT-CA-Page 10 of 18

11 below will be applied to the policy midterm effective the date of loss. The surcharge shall apply to all coverage's except UM, UIM and UM PD. Surcharges will be divided by the number of power units on the policy and applied to all vehicles. 5. Unreported Driver Surcharge First incident of loss involving an unreported driver 10% Second incident of loss involving an unreported driver 17.5 % Three or more incidents of loss involving an unreported driver 25% 6. Personal use surcharge This program is designed to cover the business use of insured s vehicles. The personal use of these vehicles represents an increase in hazard. The personal use of any vehicle will have a surcharge of 10% on all coverages. The personal use charge applies per vehicle. 7. Youthful Driver surcharge Any driver aged less than 21 will require a 25% surcharge, drivers age 21 to 23 will be surcharge 10%. The surcharges for all drivers will be added together and divided by the number of units on the policy at inception. That surcharge shall be applicable to the entire policy for the term. 8. MVR Submit / Decline 1. Submit Drivers where any of the following apply: 1. Any driver with more than three (3) minor - 5% category violations. 2. Any driver with more than two (1) intermediate - 10 /a category violations. 3. Any driver with any major - 25% category violation. 2. Decline A. Decline drivers with more than one (1) DWI/DUI/BAC or other alcohol related offense. B. Decline drivers with more than two (2) at-fault accidents. C. Decline drivers with a conviction of: 1. Hit-and-Run 2. Felony with a Motor Vehicle 3. Eluding Police 4. Negligent Homicide 5. Leaving Scene of Accident 6. Failing to Stop for Accident D. Decline any driver under the age of 19. E. Decline risks requiring a SR-22 filing or other proof of financial responsibility certificate. 3. Underwriting A. If MVR Violation Codes are not self-explanatory; a description of the violation must be included. B. Surcharges apply to the last three (3) years of driving experience and as of the conviction date shown on the MVR. Surcharges are applicable to liability and / or physical damage coverages. CA ( ) CSE Safeguard Ins. Co. UT-CA-Page 11 of 18

12 F Driver Record Surcharge Percentages When a motor vehicle report contains a history of violations without benefit of improvement in the current years, this pattern merits special attention which could lead to exclusion of the driver or cancellation of the policy. Category A - 5% Failure to Obey Traffic Control Devices Failure to Yield Failure to Signal Failure to Secure Load Improper Turn Improper Lane Use Improper Passing Speeding 1-14 mph Obstructed View Improper Lights Driving with No or Improper License Unlawful Use of Drivers License Defective Vehicle or Equipment Load Spill/Shift/Drop Oversize or Overweight Category B -10% Driving While Suspended or Revoked Driving on Wrong Side of Road Driving too Fast for Conditions Failure to Have Vehicle Under Control Careless or Imprudent /Inattentive Driving Driving the Wrong Way on a One-Way Street At-Fault Accidents Failure to Maintain Control Speeding 15+ mph Following too Close Illegal or Improper Backing Category C - 25% DWI/DUI/BAC Reckless or Unsafe Driving Open Container Racing or Speed Contest All Other Drug or Alcohol Related Offenses Speeding 29+ mph Decline Hit-and-Run Felony with a motor vehicle Eluding Police Negligent homicide Leaving Scene of Accident Failing to stop for Accident Utah CA ( ) CSE Safeguard Ins. Co. UT-CA-Page 12 of 18

13 III RATING MANUAL - Premium Development (all premiums are rounded to the nearest dollar) 1 Liability coverages multiply the appropriate territory base rate by the business use factor X weight/size factor X vehicle class factor X fleet/ radius factor X age/experience factor (total applicable age s/c / number of power units) X MVR factor (total applicable mvr s/c / number of drivers) X the increased limits factor. Any deductible, Monoline/ unsupported business, IRPM or unreported driver factor(s) (total applicable unreported driver s/c / number of power units) are applicable. 2 Medical payments The premium developed above at base limits is multiplied by the appropriate medical limit percentage from the state rate pages. 3 Personal Injury the appropriate personal injury base rate is multiplied by driver age/experience factor X MVR factor. Any IRPM or unreported driver factor(s) are applicable. 4 UM/UIM & UMPD premiums listed on the state rate pages shall be used. No other factors apply to these coverage's. UMPD must be charged on all vehicles without auto physical damage. All vehicles without auto physical damage must purchase this coverage if it is selected. 5 Auto Physical Damage All Private Passenger type vehicles and trucks up to 12,000 GVW with no more than 4 wheels; utilize the symbol base rates on the state rate page. Multiply the appropriate territory base rate by the Symbol multipliers X the vehicle age factor X business use factor X weight/size factor X vehicle class factor X fleet/ radius factor X driver age/experience factor X MVR factor. Any deductible, Monoline/ unsupported business, IRPM or unreported driver factor(s) are applicable. Symbol rated vehicles with special equipment attached; Vehicles with special equipment such as dump beds, lifts, and utility tool boxes shall be rated based on the developed symbol plus the described and valued special equipment on a stated amount basis. The value of the special equipment shall be used to determine the appropriate rate along with all other applicable rating factors. All other vehicles; Multiply the appropriate territory stated amount base rate by the (stated value /100) X business use factor X the vehicle age factor X weight/size factor X vehicle class factor X fleet/ radius factor X driver age/experience factor X MVR factor. Any deductible, IRPM or unreported driver factor(s) are applicable. Exceptions to ISO Rules - Amend ISO Rules As Follows: 8A. Policy Writing Minimum Premiums For all policies, apply the policy writing minimum premium of $ 500 for policies with $ 300,000 liability combined single limit or less, $ 600 for policies with liability limits of $ 500,000 combined single limit and $ 750 for policies with liability limits of $ 1,000,000 combined single limit regardless of term. 8B. The Minimum premium for an Auto Physical Damage only Policy is $ Additional Premium Changes B. No additional premium will be waived. 10. Return Premium Changes B. No return premium will be waived. Utah CA ( ) CSE Safeguard Ins. Co. UT-CA-Page 13 of 18

14 22. PREMIUM DEVELOPMENT OTHER THAN ZONE-RATED AUTOS Paragraph C.2.b. is replaced by the following: C. Premium Computation 2. Liability b. For fleets, multiply the base premium by the following factor: Factor 1.05 Table 22.C.2.b. Liability Coverage Factor Paragraph C.3.d. is replaced by the following: 3. Physical Damage Coverages d. For fleets, multiply the base premiums by the following factors: Other Than Collision Collision Table 22.C.3.d. Physical Damage Coverages Factors CSE Safeguard Ins. Co. state rate pages are included in this manual. For any rates not shown, refer to Company. 23. Trucks, Tractors & Trailers A. Fleet Non-Fleet Classifications 1. Classify as fleet the autos of any risk that has five or more self-propelled autos of any type that are under one ownership. Do not include autos owned by allied or subsidiary interests unless the insured holds a majority financial interest. 2. Do not include mobile equipment insured on a general liability policy in determining if the risk is a fleet. 3. Do not include trailers in determining if the risk is a fleet, but apply the fleet classification to the trailers if the risk otherwise is classified as a fleet. 4. Classify the autos of any other risk as non-fleet. 5. Do not change the fleet or non-fleet classification because of mid-term changes in the number of owned autos except at the request of the insured. The policy must be cancelled and rewritten in accordance with the premium changes rules. The coverage part must be cancelled and rewritten in accordance with Rule 11. B. Size Class. Size class is determined by the GVW or GCW of the unit and whether it is a truck or a truck-tractor per table 23b5 (table of Primary Classifications) C. Business Use Class. Use the highest rated class unless 80 / or more of the use is in a lower rated class. 23B5. Trucks Tractors and Trailers classifications The ISO size, use and radius codes are used, rating factors are determined from the company rate pages. Service Use - Used for transporting the insured's personnel, tools and equipment and incidental supplies to or from a job location. This classification is confined to autos principally parked at job locations for the majority of the working day or used to transport supervisory personnel between job locations. Retail Use-autos used to pick up property from, or deliver property to individual households. Commercial Use- autos used for transporting property other than those autos defined as service or retail. 23C4. Radius Class. United allows up to a 100 mile radius for "local" rating and up to 300 miles for intermediate rating. Determine radius on a straight line from the street address of principal garaging. a. Local -up to 100 miles- the auto is not regularly operated beyond a radius of 100 miles from the street address where the auto is principally garaged. b. Intermediate-101 to 300 miles-the auto is operated beyond a radius of 100 miles but not regularly beyond a radius of 300 miles from the street address where the auto is principally garaged. Long distance-over 200 miles-the auto is regularly operated beyond a 200 mile radius from the street address where such auto is principally garaged. Apply zone rates for other than light trucks. c. Long distance-over 300 miles-the auto is regularly operated beyond a 200 mile radius from the street address where such auto is principally garaged. Apply zone rates for other than light trucks. Utah CA ( ) CSE Safeguard Ins. Co. UT-CA-Page 14 of 18

15 23 Trucks Tractors & Trailers primary classification The following codes will be used along with rating factors from the CSE Safeguard Ins. Co. rate pages. Medical Payments and Basic No Fault Coverages - trucks & tractors primary and secondary rating factors do not apply. Determine premiums from the Liability base premium page. For premiums not shown refer to the Company. Uninsured Motorist - Primary and secondary factors do not apply. 23. B5 Utah Commercial Automobile Trucks, tractors and Trailers Statistical Classifications. (Rating factors apply from state rate pages attached) Weight / Size class Business Use Class Local Up to 100 miles Intermediate miles Non Fleet Fleet Non Fleet Fleet Light Trucks Service ,000 GVW Retail Commercial Medium Trucks Service ,001 to 20,000 Retail Commercial Heavy Trucks Service ,001 to Retail ,000 GVW Commercial Heavy Truck Tractor Service ,000 GCW Retail Commercial Trailer Types Semi Trailers Trailers Service or Utility Trailers 0-2, lbs. Secondary codes: to be inserted in the 4th and 5th digit of the. classification code Autos Having More Than One Use Where more than one rating factor applies, use the higher rated class unless 80% of the use is in the lower rated class. Truckers Autos used to haul or transport goods, materials or commodities for another, other than autos used in moving operations. Classification Code a. Common Carriers 21 b. Contract Carriers 22 (Other than Chemical or Iron and Steel Haulers) c. Contract Carriers Hauling Chemicals 23 d. Contract Carriers Hauling Iron and Steel 24 e. Exempt Carriers 25 (Other than Livestock Haulers) f. Exempt Carriers Hauling Livestock 26 g. Carriers Engaged in both Private Carriage and Transporting Goods, Materials 02 or Commodities for Others Materials or Commodities for Others h. Tow Trucks For-Hire 03 i. All Other 29 Utah CA ( ) CSE Safeguard Ins. Co. UT-CA-Page 15 of 18

16 5 Food Delivery Autos used by food manufacturers to transport raw and finished products or used in wholesale distribution of food. a. Canneries and Packing Plants 31 b. Fish and Seafood 32 c. Frozen Food 33 d. Fruit and Vegetable 34 e. Meat or Poultry 35 f. All Other 39 6 Specialized delivery autos used in deliveries subject to time and similar constraints. a. Armored Cars 41 b. Film Delivery 42 c. Magazines or Newspapers 43 d. Mail and Parcel Post 44 e. All Other Waste disposal Autos transporting salvage and waste material for disposal or resale. a. Auto Dismantlers 51 b. Building Wrecking Operators 52 c. Garbage 53 d. Junk Dealers 54 e. All Other Farmers Autos owned by a farmer, used in connection with the operation of his own farm and occasionally used to haul commodities for other farmers. a. Individually Owned or Family Corp. 61 (Other than Livestock Hauling) b. Livestock Hauling 62 c. All Other Dump and Transit Mix (Use these factors and codes onl when no other secondary classification applies.) a. Excavating 71 b. Sand and Gravel (Other than Quarrying) 72 c. Mining 73 d. Quarrying 74 e. All Other Contractors (other than dump trucks) a. Building Commercial 81 b. Building Private Dwellings 82 c. Electrical, Plumbing, Masonry, Plastering and Other Repair 83 or Service d. Excavating 84 e. Street and Road 85 f. All Other Not Otherwise Specified (NOC) a. Logging and Lumbering 91 b. All Other 99 Utah CA ( ) CSE Safeguard Ins. Co. UT-CA-Page 16 of 18

17 31. Private Passenger Type; Private Passenger autos which are owned by corporations, partnerships, unincorporated associations, government agencies or rated as part of a fleet are rated as "Private Passenger Types." A. Classifications and Codes B. United Continues to allow the use of PAP rating for certain private passenger vehicles. 1. Autos furnished to individuals by corporations, partnerships and unincorporated associations owning autos not used for business purposes are not eligible under the commercial auto program. 2. For all other non-fleet private passenger type autos apply rates found in the state rate page. 66. Antique Autos (class code 9620) For autos that are: years old or more; 2. Maintained primarily for exhibitions, club activities, parades and other functions of public interest; and 3. Occasionally used for other purposes 66B1. Liability and Basic No-Fault Coverages-Use.25 of the private passenger types rates, regardless of the type of auto. 66B2. Physical Damage -Stated amount only. Use private passenger factors multiplied by.75. A minimum $500 deductible applies to any physical damage coverage. Higher deductibles are available. 72. Funeral Directors Autos B. Premium Computations 1. Limousines (Class Code 7915) a. For liability, medical payments and basic no-fault coverages, multiply the private passenger type rates by.70. b. For physical damage, multiply the private passenger type stated amount rates by Hearses and Flower Cars (Class Code 7922) a. For liability, medical payments and basic no-fault coverages, multiply the private passenger type base premiums by.55. b. For physical damage, multiply the private passenger type base stated amount premium by Combination Hearses and Ambulances Classify and rate the autos as ambulance. 4. Autos Used for other Purposes classify and rate the auto according to its regular use. 89. Non-Owned Liability C.1. All Risks other than Social Service Agency Risks a. The minimum premium of $100 for bodily injury and property damage liability apply at a 100,000 limit. Rates are as shown below. For increased limits use factors applicable to light and medium trucks from the increased limits table on the Truck Liability page. C.Premium Development 1. Application a. Apply one of the following procedures, as appropriate: (1) All risks other than Garage Service Operations Class Code Total Number of Employees Bodily Injury and Property Damage $100,000 Limit $ , Over 1,000 1,730 For increased limits use factors applicable to Light and Medium units form the increased limits table on the Truck Liability page. Utah CA ( ) CSE Safeguard Ins. Co. UT-CA-Page 17 of 18

18 90. HIRED AUTOS B.3.d. The minimum premium of $100 for bodily injury and property damage liability applies at a 100,000 limit. For increased limits use factors applicable to light and medium trucks from the increased limits table on the Truck Liability page. B. Cost of Hire Basis Liability Coverages 3. Premium Computation b. Bodily Injury and Property Damage Subline Code (611) Limits Identifier Code (1) $100,000 Limit Limit Code (10) All Territories $1.44 d. Minimum Premium $ 100 C. Hired Auto Physical Damage (Class Code 6614). The minimum premium for hired car physical damage is $250 at $1,000 deductible. 2. Premium Computation c. Apply the following per each $100 estimated annual cost of hire: Comprehensive $ 500 Deductible (Coverage Code 010).55 Collision $ 500 Deductible (Coverage Code 077).91 Specified Causes of Loss $ 500 Deductible (Coverage Code 020) 38 Per $100 Annual Cost of Hire Per $100 Annual Cost of Hire Per $100 Annual Cost of Hire 3. The minimum premium for hired car physical damage is $ Additional Insured Endorsement Charge $25 for each additional insured added to the policy subject to a maximum of $250 per policy. No charge applies for the following endorsements: CA Additional Insured Lessor CA Designated Insured 115. Waiver of Subrogation Charge $100 for each designated entity subject to a maximum of $750 per policy. Forms used will be ISO with some filed exceptions. Utah CA ( ) CSE Safeguard Ins. Co. UT-CA-Page 18 of 18