UNITED AUTOMOBILE INSURANCE COMPANY FLORIDA PERSONAL AUTOMOBILE INSURANCE POLICY

Transcription

1 UNITED AUTOMOBILE INSURANCE COMPANY FLORIDA PERSONAL AUTOMOBILE INSURANCE POLICY United Automobile Insurance Company P.O. Box Miami Gardens, FL IMPORTANT LIMITED COVERAGE POLICY: Please read your policy carefully. This policy includes limitations to your coverage. For example, the policy specifically addresses who may use your covered car and under what conditions coverage will be afforded. UAIC 200 (7/11)

2 POLICY GUIDELINE Agreements 3 Definitions 3 Part A - Liability Coverage 5 Supplementary Payments 5 Exclusions 5 Limit of Liability 6 Financial Responsibility 7 Other Insurance 7 Nonjoinder of Insurer 7 Part B - Medical Payments Coverage 7 Exclusions 7 Limit of Liability 8 Other Insurance 8 Part C - Uninsured Motorist Coverage Insuring Agreement 8 Exclusions 9 Limit of Liability 9 Other Insurance 10 Trust Agreement 10 Disputes Concerning Uninsured Motorist Claims 10 Part D - Coverage for Damage to Your Auto 11 Transportation Expenses 11 Exclusions 11 Limit of Liability 12 Payment of Loss 13 No Benefits to Bailee 13 Other Insurance 13 Appraisal 13 Part E - Florida Motor Vehicle No Fault Law 14 Section I Personal Injury Protection 14 Exclusions 15 Limit of Liability, Application of Deductible, Other Insurance 15 Conditions 15 Section II - Modification of Policy Coverages 16 Section III - Unreasonable and Unnecessary Medical Expenses 16 Part F - Duties After an Accident or Loss 17 Part G - General Provisions 17 Policy Period and Territory 17 Changes 17 Legal Action Against Us 18 Our Right to Recompute Premium 18 Transfer of Your Interest in this Policy 18 Our Right to Recover Payment 18 Termination 18 Cancellation 18 Nonrenewal 19 Automatic Termination 19 Other Termination Provisions 20 Garaging of Covered Auto 20 Two or More Autos Insured 20 Cooperation and Assistance 20 Misrepresentation 20 Concealment and Fraud 20 No Benefit to Bailee 21 Mediation of Claims 21 Bankruptcy 21 Duty to Defend 21 Declarations 21 Telephone Numbers for Policyholder Inquiries 21 Renewal Representations 21 Felony Charges 22 2

3 AGREEMENT Coverage applies to your covered cars as noted on the Declarations Page where a limit and a premium are specified. In return for the payment of premium and subject to all the terms of this Policy, "we" agree with "you" as follows: DEFINITIONS Throughout this Policy "you" and "your" refer to the "named insured" shown in the Declarations. We", "us" and "our" refer to the Company providing this insurance. For the purpose of this Policy, a car leased under a written agreement to any person for a continuous period of at least six months shall be deemed to be owned by that person. Other words and phrases are as defined below. They are boldfaced when used in the Policy. Accident means one proximate, uninterrupted and continuing cause which resulted in all the injuries and damages. Additional Driver means any driver or drivers added to your Policy by us. The driver must be listed in the Declarations Page of your Policy or added to the Policy by separate endorsement. Betterment means an improvement made by us that increases the value of a car, or any part of the car, to a condition that is better than it was prior to the loss. "Bodily injury" means bodily injury to a person, including resulting sickness, disease or death and derivative claims thereof. Business means any full or part-time profession, occupation, trade or commercial enterprise. Business Purpose means an activity for the purpose of earning a living. This includes a trade or occupation or a commercial activity. "Car" means any self-propelled vehicle with four or more wheels. A car is both designed and required to be licensed for use on the public roads and highways of Florida. This includes any trailer or semi-trailer designed for use with such vehicle. "Car" does not include: (a) any motor vehicle which is used in mass transit, other than public school transportation, and designed to transport more than 5 passengers exclusive of the operator of the motor vehicle and which is owned by a municipality, a transit authority, or by a political subdivision of the state; or (b) a mobile home; or (c) a motorcycle or any other vehicle with less than four wheels. Driver s license means any license that authorizes or authorized the licensee to drive a car. "Family member" means a resident relative of "your" household, provided said family member does not own a car. This includes a child away at college, in the Armed Services or in jail. Licensed driver is any person who holds any of the licenses listed below: 1. Learner s permit. 2. Restricted license. 3. Commercial license. 4. Non-Commercial license. 5. Temporary license. 6. Expired license. 7. Suspended license. 8. Revoked license. 9. Foreign license. 10. International license. 11. Out-of-state license. "Medical expenses" means reasonable expenses: 1. for necessary medical, surgical, x-ray, dental, ambulance, hospital, professional nursing and rehabilitative services; and 2. for prosthetic devices; 3

4 "Named insured" means the person or organization named in the Declarations of the Policy. If a person, then the named insured shall include the spouse, when the spouse is a resident of the same household. "You" must report the resident spouse to "us" on the application. Failure to do so could constitute Material Misrepresentation and may result in the entire policy being void. "Occupying" means in or upon, entering into, or alighting from. "Owner" means a person or organization who holds the legal title to a car, and also includes: (a) a debtor having the right to possession, in the event a car is the subject of a security agreement; (b) a lessee having the right to possession, in the event a car is the subject of a lease with option to purchase. This applies if the lease agreement is for a period of six months or more; (c) a lessee having the right to possession, in the event a car is the subject of a lease without option to purchase. This applies if the lease agreement is for a period of six months or more and provides that the lessee shall be responsible for securing insurance. "Pedestrian" means a person while not an occupant of a self-propelled vehicle. Property Damage means damage to or loss of use of tangible property. Racing means participating in any race, speed, demolition, stunt or timed contest or activity, whether organized or not, by any covered person driving a car. Racing includes the preparation for the contest or activity. "Relative" means a person related to the named insured by blood, marriage or adoption. This includes a ward or legally placed foster child. Rental car means a car you rent or hire. Rental cars may be rented or hired only from a legal entity licensed to conduct such business under applicable state law. "Repair parts" means any parts used in the repair of your covered car of like kind and quality. This includes original equipment manufacturer, aftermarket, used, reconditioned or remanufactured parts, as deemed necessary and appropriate by us. "Replacement services expenses" means, with respect to the period of disability of the injured person, all expenses reasonably incurred in obtaining from others ordinary and necessary services that, except for such injury, the injured person would have performed without income for the benefit of his household. Resident means any person who resides with you. Any resident must be listed on the application or endorsed on the policy prior to a loss. You have thirty calendar days to report any new resident. Resident relative" means any relative who resides with the named insured. "Temporary substitute" means a car or trailer which is used only while your covered car or trailer is out of normal use because of its breakdown, repair, servicing, loss or destruction. "Trailer" means a vehicle designed to be pulled by your covered car. It also means a farm wagon or farm implement while towed by your covered car. "Work loss" means with respect to the period of disability of the injured person, any loss of income and earning capacity from inability to work proximately caused by the injury sustained by the injured person. "Your covered car" means: (a) Any car shown in the Declarations. (b) Any of the following types of cars of which "you" acquire ownership during the Policy period: (1) a private passenger type car. (2) if not used in a business or occupation, a pick-up, sedan, delivery or panel truck. (3) a vehicle that replaces one shown in the Declarations. Provided that "you" ask "us" in writing to insure the car within thirty days after you" become the owner and pay the appropriate premium. In addition, "you" may not own any other cars which are uninsured or insured with another carrier. "You" have thirty days to add coverage under Part D to the replacement vehicle and the request must be made in writing. (c) Any trailer "you" own while being towed by your covered car. (d) For liability coverage only, any car or trailer "you" do not own while used as a temporary substitute. 4

5 IMPORTANT NOTICE - PLEASE READ CAREFULLY This entire policy is void if an insured person has concealed or misrepresented any material fact or circumstance relating to: a. this insurance; or b. the application for it; or c. any claim made under it. PART A LIABILITY COVERAGE "We" will pay damages for bodily injury or property damage for which a covered person becomes legally liable to pay due to a car accident resulting from the ownership, maintenance or use of your covered car. "We" will settle or defend, as "we" deem appropriate, any claim or suit asking for these damages. "Our" duty to settle or defend ends when "our" limit of liability for this coverage has been exhausted. "Covered person" as used in this Part means: 1. "You". 2. Any family member. 3. Any person using your covered car with your express or implied permission. 4. For your covered car, any person or organization, but only with respect to legal responsibility, for acts or omissions of a person for whom coverage is afforded under this Part. 5. For any car or trailer, other than your covered car, any person or organization, but only with respect to legal responsibility, for acts or omissions of "you" or any family member for whom coverage is afforded under this Part. This provision applies only if the person or organization does not own or hire the car or trailer. SUPPLEMENTARY PAYMENTS In addition to "our" limit of liability, "we" will pay on behalf of a covered person: 1. Up to $250 for the cost of bail bonds. If the bail bond is required due to an accident, including related traffic law violations, resulting in bodily injury or property damage covered under this Policy. 2. Premiums on appeal bonds and bonds to release attachments in any suit that "we" defend. 3. Interest accruing after a judgment is entered in any suit that "we" defend. "Our" duty to pay interest ends when "we" offer to pay that part of a judgment which does not exceed the limit of liability on the Declarations page for this coverage. 4. Up to $100 a day for loss of earnings, but no other income because of attendance at hearings or trials at "our" request. 5. Other reasonable expenses incurred at "our" request. EXCLUSIONS "We" do not provide coverage under Part A: 1. For any person who intentionally causes bodily injury or property damage. 2. For any person for damage to property owned by or being transported by that person. 3. For any covered person for damage to property rented to, used by, or in the care of that person. This exclusion does not apply to rental cars or damage to a residence or a private garage. 4. For any covered person while your covered car is being used: (a) for a racing or speed contest; (b) in any illegal activity or fraudulent conduct in which "you", a family member or a covered person is a willing participant. This does not include a traffic violation. (c) for any business purpose. 5. For any person's liability arising out of the ownership or operation of a car while it is being used to carry persons or property for a fee. This exclusion does not apply to a share-the-expense car pool. 6. For any person while employed or otherwise engaged in the business or occupation of selling, repairing, servicing, storing or parking of cars. This includes the road testing and delivery of a car. 7. For any person maintaining or using any car while that person is employed or otherwise engaged in any business or occupation not described in Exclusion 6. This exclusion does not apply to farming or ranching. 8. For the ownership, maintenance, or use of any vehicle which: (a) has less than four wheels; or (b) is not licensed for use on public roads; or (c) weighs in excess of 10,000 pounds. This exclusion does not apply to a trailer "you" own. 9. For any person using a car without a reasonable belief that the person is entitled to do so. 5

6 10. For any person for bodily injury or property damage for which that person is an insured under a nuclear energy liability Policy. This includes a person that would be an insured but not for the Policy termination upon exhaustion of its limit of liability. 11. For bodily injury, property damage or death to a covered person. This includes any member of a covered person s family residing in the covered person s household. 12. For any damages which are specifically described as punitive or exemplary. 13. For any vehicle while it is being used for or in the course of your" employment or occupation. 14. For any covered person, additional drivers or family member for any car which is owned by "you", any additional driver or any family member, or furnished or available for regular use by "you", any additional driver or any family member which is not defined as your covered car. 15. For damages or loss to any car, or operator of such car, rented by "you" or any family member. This exclusion does not apply to a rental car. 16. For any person for bodily injury to an employee or fellow employee of that person during the course of employment. This exclusion does not apply to bodily injury to a domestic employee unless workers' or workmen's compensation benefits are required or available for that domestic employee. 17. For bodily injury or property damage arising out of any person's liability for the ownership, maintenance or operation of your covered car when it: (a) is being rented or leased to others; or (b) has been sold to another; or (c) is under a conditional sales agreement by "you" to another. 18. For bodily injury or property damage arising out of the operation of farm or ranch machinery. 19. For bodily injury or property damage arising out of any liability assumed by a covered person under any contract or agreement. This exclusion does not apply to rental car contracts. 20. For bodily injury or property damage which the United States Government is held responsible under the Federal Tort Claims Act. 21. For bodily injury or property damage arising out of the ownership, maintenance or use of a car while it is being used as a residence or premises. 22. For bodily injury or property damage arising from the use or operation of any car which is owned by an additional driver, a resident or family member and is not defined as your covered car. 23. For bodily injury arising from the use or operation of your covered car by an excluded driver. This does not apply when the policy is certified as a financial responsibility filing. 24. Bodily injury or property damage arising out of the ownership, maintenance or use of your covered auto when it is driven, operated or used with your express or implied consent by an individual who you or a family member know or have reason to know: a. Is under the minimum age to obtain a driver s license; or b. Does not have a valid driver s license; or c. Has a suspended driver s license; or d. Has a revoked driver s license. LIMIT OF LIABILITY The limit of liability shown in the Declarations for "each person" for bodily injury liability is "our" maximum limit of liability for all damages for bodily injury sustained by any one person in any one car accident. This includes all derivative claims arising out of said bodily injury. Derivative claims include, but are not limited to, damages for care; loss of service or death; loss of consortium; and loss of society or companionship. Subject to this limit for "each person", the limit of liability shown in the Declarations for "each accident" for bodily injury liability is "our" maximum limit of liability for all damages for bodily injury resulting from any one car accident. The limit of liability shown in the Declarations for "each accident" for property damage liability is "our" maximum limit of liability for all damages to all property resulting from any one car accident. However, "our" limit of liability for property damage will be the lesser of: 1. The actual cash value of the damaged property, at the time of loss; or 2. The amount necessary to replace or repair the property with repair parts, with deduction for depreciation and physical condition. If a repair or replacement results in better repair parts, "we" will not pay for the amount of betterment; 3. The amount you paid for the vehicle in the event of a total loss. This is the most "we" will pay regardless of the number of: (a) covered persons; or (b) claims made; or (c) cars or premiums shown in the Declarations; or (d) vehicles involved in the car accident. 6

7 FINANCIAL RESPONSIBILITY When "we" certify this Policy as proof under any Financial Responsibility law, it will comply with the law to the extent of the coverage required by the law. Coverages shall be increased to meet the Financial Responsibility requirements of a given state in which an accident or loss occurs. However, if a coverage was not purchased and is not listed in the Declarations, then it will not be added to this policy. OUT OF STATE INSURANCE If an accident covered under Part A - Liability Coverage takes place in any state or province other than the state of Florida, then your policy will provide: 1. Any higher specified financial responsibility liability limit if the state or province has a law requiring limits of liability for bodily injury or property damage higher than the limit shown in the Declaration page. 2. At least the required minimum amounts and types of coverage if the state or province has a compulsory insurance or similar law requiring a nonresident to maintain insurance whenever the nonresident uses a car in that state or province. However, if you did not buy bodily injury liability coverage from us under this policy, no coverage will be provided for bodily injury liability claims. OTHER INSURANCE If there is other applicable liability insurance, then "we" will pay only "our" share of the loss. "Our" share is the portion that "our" limit of liability bears to the total of all applicable limits. Any insurance that "we" provide for a car "you" do not own shall be excess over any other collectible insurance. NONJOINDER OF INSURER No person who is not a covered person shall have any interest in this Policy, either as a third party beneficiary or otherwise, prior to first obtaining a verdict against a person who is a covered person. The verdict must be for a cause of action which is covered by this Policy. PART B MEDICAL PAYMENTS COVERAGE "We" will pay reasonable expenses incurred for necessary medical and funeral services because of bodily injury caused by a car accident and sustained by a covered person. "We" will pay only those expenses incurred within three years from the date all Personal Injury Protection benefits have been exhausted. "Covered person" as used in this Part means: 1. "You" or any family member while occupying your covered car. 2. "You" or any family member as a pedestrian when struck by a motor vehicle or trailer. 3. Any other person while occupying your covered car. EXCLUSIONS "We" do not provide Medical Payments Coverage for any person: 1. For bodily injury sustained while occupying a motorcycle or any other motorized vehicle having less than four wheels. 2. For bodily injury sustained while occupying your covered car when it is being used to carry persons or property for a fee. This exclusion does not apply to a share-the-expense car pool. 3. For bodily injury sustained while occupying any car located for use as a residence or premises. 4. For bodily injury occurring during the course of employment if workers' or workmen's compensation benefits are required or available for the bodily injury. 5. For bodily injury sustained while occupying or, when struck by, any car (other than your covered car) which is owned by "you" or furnished or available for "your" regular use. 6. For bodily injury sustained while occupying or, when struck by, any car (other than your covered car) which is owned by or furnished or available for the regular use of any family member. However, this exclusion does not apply to "you". 7. For bodily injury sustained while occupying a car without a reasonable belief that the person is entitled to do so. 7

8 8. For bodily injury caused by discharge of a nuclear weapon, war, civil war, insurrection, rebellion, or revolution or any consequence of any of these. 9. For bodily injury from any nuclear reaction, radiation or radioactive contamination, or any consequence of any of these. 10. For bodily injury sustained while your covered car is being used by any person for any business purpose. LIMIT OF LIABILITY The limit of liability shown in the Declarations for this coverage is "our" maximum limit of liability for each person injured in any one car accident. This is the most "we" will pay regardless of: (a) where the claim arises; (b) where the accident occurs; (c) the number of: 1) covered persons; or 2) claims made; or 3) cars or premiums shown in the Declarations; or 4) vehicles involved in the car accident. Any amounts otherwise payable for expenses under this coverage shall be reduced by any amounts paid or payable for the same expenses under Part A or Part C of this Policy. Also, any payment that "we" make under this coverage to a covered person shall be excess insurance over benefits paid or payable under Part E. No payment will be made under this coverage unless the injured person, or his legal representative, agrees in writing that such payment shall be applied toward any settlement or judgment that person receives under Part A or Part C of this Policy. OTHER INSURANCE If there is other applicable auto medical payments insurance "we" will pay only "our" share. "Our" share is the portion that our limit of liability bears to the total of all applicable limits. Any insurance that "we" provide with respect to a car "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 If "you" pay a premium for Uninsured Motorist Coverage, then "we" will pay for damages which an insured person is legally entitled to recover from the owner or operator of an uninsured motor vehicle because of bodily injury: 1. sustained by an insured person; and 2. caused by an accident; and 3. arising out of the ownership, maintenance or use of an uninsured motor vehicle. The bodily injury must be a serious injury. A serious injury is as described in section (2) of the Florida Motor Vehicle No-Fault Law. A serious injury must occur before we will pay for damages consisting of pain, suffering, mental anguish, or inconvenience. An insured person must notify "us" in writing by certified mail at least thirty days before entering into any settlement with the owner or operator of an uninsured motor vehicle, or that person's liability insurer. In order to preserve "our" right of subrogation, "we" may elect to pay any sum offered in settlement by, or on behalf of, the owner or operator of an uninsured motor vehicle. If "we" do this, you" agree to assign to "us" all rights that "you" have against the owner or operator of an uninsured motor vehicle. Any judgment for damages arising out of a suit brought without "our" written consent is not binding on "us". A. "Insured" as used in this Part means: 1. "You". 2. Any family member. 3. Any other person while occupying your covered car. 4. Any person for damages that person is entitled to recover because of bodily injury to which this coverage applies sustained by a person described in 1 or 2 above. B. "Uninsured motor vehicle" means a land motor vehicle or trailer of any type: 1. To which no bodily injury liability bond or Policy applies at the time of the car accident. 2. To which a bodily injury liability bond or Policy applies at the time of the car accident but the amount paid for bodily injury under that bond or Policy to an insured is not enough to pay the full amount that 8

9 the insured is legally entitled to recover as damages. 3. Which is a hit-and-run vehicle whose operator or owner cannot be identified and which hits or which causes an accident resulting in bodily injury without hitting: (a) "you" or a family member; or (b) a vehicle which you or any family member are occupying; or (c) your covered car. If there is no physical contact with the hit-and-run vehicle then the facts of the accident must be proved. "We" will only accept facts of the accident from an impartial person. We will not accept the testimony of a person making a claim under this or any similar coverage. 4. To which a bodily injury liability bond or Policy applies at the time of the car accident but the bonding or insuring company: (a) denies coverage; or (b) is, or becomes, insolvent. 5. Which involves a self insured owner or operator, who is not able to pay the full amount that the insured is legally entitled to recover as damages. 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 a family member. Unless it is your covered car to which Part A of the Policy applies and liability coverage is excluded for a non-family member whose operation of your covered car results in injuries to you or a family member. 2. Operated on rails or crawler treads. 3. Designed mainly for use off public roads or while not on public roads. 4. While located for use as a residence or premises. EXCLUSIONS A. "We" do not provide Uninsured Motorists Coverage for bodily injury sustained by any person: 1. If the insured or his legal representative has made a settlement or has been awarded a judgment of his claim without "our" prior written consent. 2. While occupying your covered car when it is being used to carry persons or property for a fee. This does not apply to a share-the-expense car pool. 3. Using a car without a reasonable belief that that person is entitled to do so. 4. For damages for pain, suffering, mental anguish and inconvenience that the insured may be legally entitled to recover against an uninsured motorist, unless the injury or disease caused by the uninsured motorist accident resulted in: (a) significant and permanent loss of an important bodily function; or (b) permanent injury within a reasonable degree of medical probability; or (c) significant and permanent scarring or disfigurement; or (d) death. 5. If your covered car is being used by anyone for any business purpose. 6. While your covered car is being used by an insured person: (a) for a racing or speed contest; or (b) in any illegal or fraudulent conduct in which you, a family member, or a covered person is a willing participant. This does not apply to a traffic violation. 7. Maintaining or using a car while that person is employed or otherwise engaged in any business or occupation. B. This coverage shall not apply directly or indirectly to benefit any insurer or self-insurer under any of the following or similar laws: 1. workers' compensation law; or 2. disability benefits law. C. "We" do not provide coverage for punitive or exemplary damages. LIMIT OF LIABILITY A. The maximum limit of "our" liability for Uninsured Motorists Coverage in any one car accident is the sum of the Uninsured Motorists Coverage limits shown in the Declarations applicable to each car. This includes all derivative claims. Derivative claims include, but are not limited to: loss of consortium; loss of services; loss of society; or loss of companionship. This is the most "we" will pay regardless of the number of: 1. Insureds; or 2. Claims made; or 3. Cars or premiums shown in the Declarations; or 9

10 4. Vehicles involved in the car accident. B. Any coverage afforded under this section shall be over and above, and shall not duplicate, any amounts available to an insured because of other bodily injury coverage: 1. From or on behalf of persons or organizations who may be legally responsible. This includes all sums paid under Part A. 2. Under any of the following: (a) Workers' compensation law; or (b) Disability benefit law or similar law; or (c) No-fault coverage; or (d) Automobile medical payments coverage. Such coverage shall cover the difference, if any, between the sum of such benefits and the damages sustained. This shall apply up to the maximum amount of such coverage provided under this section. C. In no event will an "insured" be entitled to receive duplicate payment for the same element of loss. OTHER INSURANCE If there is other applicable uninsured motorist liability insurance, then "we" will pay only "our" share of the loss. "Our" share is the portion that "our" limit of liability bears to the total of all applicable limits. Any insurance that "we" provide for a car that "you" do not own shall be excess over any other collectible insurance. TRUST AGREEMENT If "we" pay an insured for loss under this coverage: 1. "We" are entitled to recover from the insured an amount equal to such payment. This applies if there is a legal settlement made on his behalf against any person or organization legally responsible for bodily injury and/or property damage. 2. The insured must hold in trust for "us" all rights which he has to recover money from any person or organization legally responsible for bodily injury and/or property damage. 3. The insured must do everything proper to secure "our" rights of recovery. The insured must do nothing to prejudice these rights. 4. If "we" ask the insured in writing, the insured shall take the necessary and/or appropriate action, through a representative designated by "us", to recover payment for damages from the responsible person or organization. If there is a recovery, then "we" shall be reimbursed out of the recovery for expenses, costs and attorney's fees incurred in connection with this recovery. 5. The insured must execute and deliver to "us" any legal instruments or papers necessary to secure the rights and obligations of the insured and "us" as established here. DISPUTES CONCERNING UNINSURED MOTORIST CLAIMS If an insured, or in the case of death the personal representative, agrees to settle a claim with a liability insurer and its insured and such settlement would not fully satisfy the claim for personal injuries or wrongful death so as to create an uninsured motorist claim against "us", then such proposed settlement agreement shall be submitted in writing to "us" by certified or registered mail. In addition, "we" shall have a period of thirty days after receipt thereof in which to consider authorization of the settlement or the retention of subrogation rights. If "we" authorize settlement or fail to respond to the settlement request within the thirty day period, then the insured may proceed to execute a full release in favor of the underinsured motorist liability insurer and its insured. The insured may also finalize the proposed settlement without prejudice to any underinsured motorist claim. If "we" choose to preserve "our" subrogation rights by refusing permission to settle, then "we" must, within thirty days after receipt of the notice of the proposed settlement, agree to negotiate the amount of the uninsured motorist claim and approve settlement. Upon final resolution of the underinsured motorist claim, "we" are entitled to seek subrogation against the underinsured motorist and the liability insurer for the amounts paid to the insured. If settlement has not been reached within the thirty days, the insured, or in case of death the personal representative, may file suit joining the liability insurer's insured and "us" to resolve the respective liability for any damages to be awarded. We" are entitled to a credit against total damages in the amount of the limits of the underinsured motorist's liability Policy in all cases. This includes cases where the settlement with the underinsured motorist or the payment by the underinsured motorist insurer is for less than the underinsured motorist's full liability Policy limits. The term "total damages" means the full amount of damages determined to have been sustained by the insured, regardless of the 10

11 amount of underinsured motorist coverage. No payments or credits reduce or affect the total amount of underinsured motorist coverage available to the insured. A person seeking any uninsured motorist coverage must cooperate with "us" in the investigation of any uninsured motorist claim or suit. This includes submitting to examination under oath by any person named by "us" when or as often as "we" may reasonably require. This examination under oath will be held at a place that is designated by "us". It will occur within a reasonable time after "we" are notified of the claim. If "we" and an insured disagree as to whether that person is legally entitled to recover damages from the owner or operator of an uninsured or underinsured motor vehicle, or do not agree as to the amount of damages, the matter will be decided by a court of competent jurisdiction. Any judgment against the uninsured motorist will be binding against "us" only if "we" were named as a party defendant and participated in the litigation. PART D COVERAGE FOR DAMAGE TO YOUR CAR "We" will pay for direct and accidental loss to your covered car as shown in your Declarations, minus any deductible, betterment or depreciation, which applies. This Policy only covers original factory equipment. Any deductible amount will be applied per loss occurrence. We" will also pay for direct and accidental loss to the windshield of your covered car without a deductible. If other damage exists, in addition to windshield damage, a deductible will apply to the other damage. "Collision" means the upset or collision of your covered car with another object. A loss caused by the following are not considered a "collision" loss: caused by missiles; falling objects; fire; theft; explosion; earthquake; windstorm; hail; water; flood; malicious mischief or vandalism; riot or civil commotion; contact with a bird or animal; chemical agents or breakage of glass. "We" will pay for loss caused by collision if the Declarations state that Collision Coverage is provided. "Comprehensive" means direct or accidental loss to your covered car other than by "collision". "We" will pay for a loss caused by "comprehensive" if the Declarations state that Comprehensive Coverage is provided. We" will only pay for damages which "we" are able to inspect prior to repairs being commenced. This shall apply unless emergency repairs are necessary to minimize further damages and/or expenses. In the event emergency repairs are effected, we" require photographs of the damaged area(s) along with a complete itemized estimate of repair and a payment receipt. You have a period of thirty days to add any new resident as an additional driver. "You" have a period of thirty days from the date of licensure in which to add a newly licensed resident as an additional driver. TRANSPORTATION EXPENSES "We" will pay up to $10 per day, to a maximum of $300 for transportation expenses incurred by "you". This applies only in the event of the total theft of your covered car, provided the Declarations show that "comprehensive" was selected for that car. We" will pay only the transportation expenses incurred during the period: 1. Beginning 48 hours after the theft; and 2. Ending when your covered car is returned to use or "we" pay for its loss. "We" will not pay "you" the cost of renting a car from an individual. The car must be rented from a business whose day to day operations involve car rental. EXCLUSIONS "We" will not pay for: 1. Any loss or damage arising from an accident which occurs while the car is being driven, operated or used in any manner by an unlisted driver who resides in the same household as the named insured, or is a regular or frequent operator of any car insured under this policy. This exclusion shall apply whether or not the named insured is occupying the car at the time said driver is using the car. 2. Loss to your covered car which occurs while it is used to carry persons or property for a fee. This does not apply to a share-the-expense car pool. 3. Damage due and confined to wear and tear, poor repairs, freezing, mechanical or electrical breakdown or failure, or blowouts, punctures or other road damage to tires. 4. Loss due to: radioactive contamination; discharge of any nuclear weapon; war; civil war; insurrection; rebellion; revolution; or any consequence of any of these. 5. Loss to equipment designed for the reproduction of sound. This includes, but is not limited to, compact disk or MP3 players. This exclusion does not apply if the equipment is factory installed as original equipment in your 11

12 covered car. 6. Loss to tapes, records, compact disks or other devices for use with equipment designed for the reproduction of sound. 7. Loss to a camper body or trailer not shown in the Declarations. 8. Loss to property the named insured or additional driver rents, uses, or has charge of, including loss of its use. This includes a rental car. 9. Loss to any car rented to, used by or in the care of "you" or any family member, or any permissive driver. 10. Loss to TV antennas, awnings, cabanas or equipment designed to create additional living facilities. 11. Loss to a citizens band radio, two-way mobile radio, telephone or scanning monitor receiver, or their accessories. 12. Loss to your covered car while being operated by the named insured or additional driver in a racing or speed contest. 13. Loss to any custom options or non-factory equipment which are not factory installed as original equipment by the manufacturer, or damages resulting thereof. 14. Loss to your covered car while it is being used for, or in the course of, "your" employment or occupation. 15. Loss to your covered car while it is being used by anyone for any business purpose. 16. Loss to your covered car while it is being used in any illegal activity or fraudulent conduct which "you, a family member or a resident are a willing participant. This does not apply to a traffic violation. 17. Loss to your covered car that is damaged, destroyed or confiscated by a government or civil authority. 18. Loss to your covered car which is caused intentionally by "you" or an additional driver or at your" direction. 19. Loss to a car which is not specifically described within this Policy as your covered car. 20. Loss due to a delay in repairs caused by the inability to obtain parts. 21. Loss to your covered car when: (a) Repairs are performed to; or (b) Evidence of physical damage is removed from your covered car by anyone prior to giving us the opportunity to have an appraiser appointed by "us" examine the damage. This exclusion does not apply to any repairs that result from the actions taken for the necessary transportation to a repair facility. 22. For any person using a car without a reasonable belief that the person is entitled to do so. 23. Loss due to poor workmanship of any repair facility that is chosen by you. 24. Loss for collision or comprehensive damage to your covered car if a driver excluded by your Policy is operating your covered car at the time of the loss. 25. Loss resulting from lack of lubricants, oil, transmission fluid, coolant, or loss resulting from internal seepage of water. This includes, but is not limited to, the engine overheating due to mechanical problems and damage resulting from driving through a flooded area. 26. Loss due to illegal sale, or repossession of your covered car by the rightful owner. 27. Loss due to diminution of value of your covered car. LIMIT OF LIABILITY "Our" limit of liability for loss will be the lesser of: 1. The actual cash value of the stolen or damaged property, at the time of loss, minus "your" deductible; or 2. The amount necessary to replace or repair the property with repair parts, with deduction for depreciation and physical condition, minus "your" deductible. If a repair or replacement results in better repair parts, "we" will not pay for the amount of betterment. "Our" total liability under either option above is limited to the maximum Actual Cash Value shown on the Declarations for any one of your covered cars. In the event that "we" determine "your" car to be a total loss, we" will owe the lesser of the actual cash value of the car at the time of the loss or what you paid for your car. In determining the actual cash value an adjustment for depreciation and physical condition will be made. The deductible shown in the Declarations shall apply to either incident or occurrence of loss to your covered car. In the event of any loss, whether such loss is covered by this Policy or not, "our" limit of liability on any subsequent loss shall automatically be reduced by the amount of the prior loss until: 1. Repairs have been completed on the prior loss; and 2. Any required certification of repairs has been received by "us". We" will pay up to $50.00 for towing charges incident to any one collision loss and/or any one comprehensive loss. In the event your covered car is towed to a location where "you" are incurring storage charges as the result of a covered comprehensive or collision loss, "we" will pay up to $10.00 per day not to exceed $ for all storage charges. We will only pay the storage charges if "you" fully cooperate with "us" in arranging for the immediate release of your" car. 12

13 PAYMENT OF LOSS As part of the conditions of this Policy, "you" agree with "us" that: 1. In the event of loss, "you" will have all of the damage to your covered car repaired. You" may elect to have your covered car repaired at a repair facility of "your" choice, or "we" may elect instead, at "our" option, to pay "you" for the loss in money. In either of these two latter cases, "you" will be responsible for the repairs to your covered car and you" must have your covered car repaired. 2. "We" have the right and "you" agree: (a) to have the damaged or destroyed property repaired, rebuilt, or replaced; and (b) to make repairs or replacements of property with other property of similar type. 3. If "you" have decided to repair your covered car, then we may sign the authorizations, on your behalf, necessary to effect repairs and otherwise settle the claim. 4. Payments for loss, other than Total Loss, will be made by "us" directly to the repair facility chosen to repair your covered car. However, this provision will not apply when "we" elect to pay "you" for a loss in money under "our" option in number one above. 5. In the event "we" determine your covered car to be a Total Loss, "you" must immediately release your covered car to "us". You will be responsible for any additional storage, lien, labor and/or other charges associated with your failure to release your covered car to us. We reserve the right to retain your covered car and/or its salvage property after "we" determine that your covered car is a Total Loss. If "we" pay for a loss in money, then "our" payment will include the sales tax for the damaged or stolen property. 6. In the event of theft, "we" may replace the stolen property with property of similar type. The property may be obtained from a source other than the manufacturer of your covered car at "our" discretion. If the stolen property is recovered, then we" may return the stolen property to "you" or to the address shown in this Policy. If "we" return the stolen property, then "we" will repair, subject to the terms and conditions of this Policy, any damage covered hereunder resulting from the theft. "We" may keep all or part of the stolen property at an agreed or appraised value. 7. In the event repairs are performed to, alterations are made to, or evidence of physical damage is removed from, your covered car by anyone prior to giving "us" the opportunity to have an appraiser appointed by "us" examine the damage, then "we" shall have the right to deny coverage for that loss. This provision does not apply to any repairs, alterations or evidence of physical damage that result from actions taken for the necessary transportation to a repair facility. NO BENEFIT TO BAILEE This insurance shall not directly or indirectly benefit any carrier or other bailee. OTHER INSURANCE If there is other applicable liability insurance, then we" will pay only "our share of the loss. "Our" share is the portion that "our" limit of liability bears to the total of all applicable limits. Any insurance that "we" provide for a car you" do not own shall be excess over any other collectible insurance. APPRAISAL If "you" and "we" fail to agree on the amount of a loss, either "you" or "we" may make a written demand for an appraisal of the loss. Each party will select an impartial appraiser with at least five years direct car appraisal experience. Each party will notify the other of the appraiser's identity within twenty days after the demand is received. The appraisers will then select a competent and impartial umpire. If the appraisers are unable to agree upon an umpire within fifteen days, then "you" or "we can ask a judge of a court of record to select an umpire. The appraisers shall then determine the amount of loss. The amount of loss will be determined by stating separately the actual cash value and the amount of loss to each item. If the appraisers submit a written report of an agreement to "us", then the amount agreed upon shall be the amount of loss. If they cannot agree, then they will submit their differences to the umpire who can determine the award. An award in writing by the appraisers will determine the loss amount that "we" will pay. Each party will pay the appraiser it chooses. Each party will equally pay the expenses for the umpire and all other expenses of the appraisal. This shall occur within twenty days of selecting an umpire. We" do not waive any of "our" rights under this Policy by agreeing to an appraisal. 13

14 WAIVER OF RIGHT TO LITIGATE UNDER PART D You hereby waive the right to file a lawsuit against us concerning a dispute over the amount of loss to your covered car unless you have completed the Appraisal process above. PART E FLORIDA MOTOR VEHICLE NO FAULT LAW The Company agrees with the named insured, subject to all the provisions of this Part "E" and to all of the provisions of the Policy except as modified herein, as follows: Insured motor vehicle means a motor vehicle listed in the Declarations of this Policy. "Motor vehicle" means a vehicle with four or more wheels that: 1. is self-propelled and is of a type: a. designed for, and b. required to be licensed for use on Florida highways; or 2. is a trailer or semitrailer designed for use with a vehicle described in 1 above. It does not include: 1. a mobile home; or 2. any motor vehicle which is: a. used in mass transit, other than public school transportation; and b. designed to transport more than five passengers, exclusive of the operator; and c. owned by a municipality, a transit authority, or a political subdivision of the state. No-Fault Act means the Florida Motor Vehicle No-Fault Law, as the same may be amended from time to time, and the provisions of said Act are hereby incorporated by reference and included herein. SECTION I PERSONAL INJURY PROTECTION The Company will pay, in accordance with the No-Fault Act in effect on the day the policy was issued, to or for the benefit of the injured person: (a) medical benefits - eighty percent of all reasonable charges for medically necessary expenses. Any amounts payable under this coverage shall be subject to any and all limitations, authorized by section , or any other provisions of the No-Fault Act, including, but not limited to, all fee schedules. A medically necessary expense is defined as a medical service or supply that a prudent physician would provide for the purpose of preventing, diagnosing, or treating an illness, injury, disease, or symptom that is: (1) In accordance with generally accepted standards of medical practice; and (2) Clinically appropriate in terms of type, frequency, extent, site and duration; and (3) not primarily for the convenience of the patient, physician or health care provider. (b) disability benefits - sixty percent of work loss plus replacement services expenses. All disability benefits payable under this provision shall be paid not less than every 2 weeks; (c) death benefits - death benefits of $5,000 per individual. The death benefit is included in the coverage limit on the Declarations and not in addition to this stated coverage limit. We" may pay such benefits to: (1) the executor or administrator of the deceased; (2) to any of the deceased's relatives by blood or legal adoption or connection by marriage; or (3) to any person appearing to "us" to be equitably entitled thereto. We will pay benefits incurred as a result of bodily injury caused by an accident arising out of the ownership, maintenance or use of a motor vehicle and sustained by: (a) the named insured or any resident relative while occupying a motor vehicle or while a pedestrian through being struck by a motor vehicle; or (b) any other person, who does not own a motor vehicle or have coverage elsewhere, while occupying the insured motor vehicle, or while a pedestrian, through being struck by the insured motor vehicle. This coverage also extends outside the State of Florida but within the Policy territory to the named insured while occupying the insured motor vehicle. It also extends to a resident relative while occupying the insured motor vehicle provided such resident relative does not own a motor vehicle with respect to which security is required under the No-Fault Act. 14

15 EXCLUSIONS This insurance does not apply: (a) to the named insured or any relative while occupying a motor vehicle of which the named insured is the owner and which is not an insured motor vehicle; (b) to any person while operating the insured motor vehicle without the express or implied consent of the named insured; (c) to any person, if such person's conduct contributed to his bodily injury under any of the following circumstances; (1) causing bodily injury to himself intentionally; or (2) while committing a felony; (d) to the named insured or dependent relative for work loss if an entry in the schedule or Declarations indicate such coverage does not apply; (e) to any pedestrian, other than the named insured or any resident relative, who is not a legal resident of the State of Florida. (f) to any person, other than the named insured, if such person is the owner of a motor vehicle; (g) to any person, other than the named insured or any resident relative, who is entitled to personal injury protection benefits from the owner of a motor vehicle, which is not an insured motor vehicle, or from the owner's insurer; (h) to any person who sustains bodily injury while occupying a motor vehicle located for use as a residence or premises. (i) to any person who sustains bodily injury while occupying a motorcycle or any other motor vehicle with less than four wheels. LIMIT OF LIABILITY; APPLICATION OF DEDUCTIBLE; OTHER INSURANCE Regardless of the number of: (a) persons insured; or (b) policies or bonds applicable; or (c) cars involved; or (d) claims made; the total aggregate limit of personal injury protection benefits available under the No-Fault Act from all sources combined, including this Policy, for all loss and expenses incurred by, or on behalf of, any one person who sustains bodily injury as the result of any one accident shall be $10,000. A death benefit of $5,000 is included in the foregoing coverage limit. Any amount payable under this insurance shall be reduced by the amount of benefits an injured person has recovered or is entitled to recover for the same elements of loss under the workmen's compensation laws of any state or the federal government or the Medicaid program. If benefits have been received under the No-Fault Act from any insurer for the same items of loss and expenses for which benefits are available under this Policy, then we" shall not be liable to make duplicate payments to or for the benefit of the injured person. However, the insurer paying such benefits shall be entitled to recover from "us" its equitable pro-rated share of the benefits paid and expenses incurred in processing the claim. The amount of any deductible stated in the schedule of Declarations shall be deducted from the lesser of: the total amount of all sums otherwise payable by "us", for all loss and expenses incurred by, or on behalf of, each person to whom the deductible applies and who sustains bodily injury as the result of any one accident; or, the applicable limit of "our liability. The total amount of all sums otherwise payable means the benefits payable for medically necessary expenses, work loss and replacement services expense after the application of any percentage limitation set forth in this Section. Such deductible shall not apply to the death benefit. If an entry in the schedule or Declarations so indicates, then any amount payable under this insurance to the named insured or dependent relative shall be reduced by any benefits payable by the Federal Government to active or retired military personnel and their dependent relatives. If such benefits are not available at the time of loss, then "we" shall have the right to recompute and charge the appropriate premium. If there is other applicable insurance, then we" will pay only "our" share of the loss. "Our" share is the portion that "our" limit liability bears to the total of all applicable limits. CONDITIONS 1. Notice. In the event of an accident, written notice of the loss must be given to "us" or any of "our" authorized agents as soon as practicable. If any injured person, or his legal representative, shall institute legal action to 15

16 recover damages for bodily injury against a third party, then a copy of the summons and complaint or other process served in connection with such legal actions shall be forwarded, as soon as practicable, to "us" by such injured person or his legal representative. 2. Action Against the Company. No legal action may be brought against us until there has been full compliance with all terms of this policy. In addition, no legal action may be brought against us until: (1) the claim for benefits is overdue, and (2) we are provided with a demand letter in accordance with the No-Fault Act sent to us via U.S. certified or registered mail. 3. Proof of Claim. As soon as practicable, the person making the claim, including any assignees of the injured party, shall give to us written proof of claim, under oath. 4. Medical Reports and Examinations. Any person making a claim shall submit to, as often as we reasonably request and at our expense, medical examinations. This includes physical and mental examinations by doctors that we select. Submitting to a medical examination is a condition which is required prior to obtaining benefits by a person making a claim. If requested in writing, a copy of the medical report shall be provided to such person. If a person making a claim refuses to submit to a medical examination, then said person will have breached this insurance policy. If you breach this insurance policy, then we will not be liable for subsequent personal injury protection benefits. 5. Examination Under Oath. As a condition precedent prior to receiving personal injury protection benefits, any injured person and/or any person or organization making a claim or seeking payment must cooperate with "us" in the investigation, settlement or defense of any claim or suit. This includes submitting to examination under oath by any person named by "us" when or as often as "we" may reasonably require. This will occur at a place designated by "us" within reasonable time after "we" are notified of the claim. Only the person being examined may be present during any examination. The person being examined may be represented by an attorney and the legal guardian of a minor may also be present. 6. Felony Charges. If a person making a claim is charged with committing a felony, then "we" shall withhold benefits. Benefits are withheld until, at the trial level, the prosecution makes a formal entry on the record that it will not prosecute the case against the person, the charge is dismissed or the person is acquitted. 7. Reimbursement and Subrogation. In the event of payment to or for the benefit of any injured person under this insurance Policy: (a) "we" are subrogated to the rights of the person to whom or for whose benefit such payments were made and to the extent of such payments. Such person shall execute and deliver the instruments and papers and do whatever else is necessary to secure such rights. Such person shall do nothing after the loss to prejudice such rights. (b) we" shall be entitled to reimbursement to the extent of the payment of personal injury protection benefits from the owner or the insurer of the owner of a commercial motor vehicle, as defined in the No-Fault Act. Provided such injured person sustained the injury while occupying, or while a pedestrian through being struck by, such commercial motor vehicle. 8. Special Provision for Rented or Leased Vehicles. If a person is injured while occupying, or through being struck by, a car rented or leased under a rental or lease agreement, which does not specify otherwise in bold type on the face of such agreement, the personal injury protection coverage afforded under the lessor's Policy shall be primary. 9. Policy Period; Territory. The insurance under this Section applies only to accidents which occur during the Policy period: (a) (b) in the State of Florida; and as respects the named insured or a resident relative, who does not own a car for which security is required under the No-Fault Act, while occupying the insured motor vehicle outside the State of Florida but within the United States of America, its territories or possessions or Canada. SECTION II MODIFICATION OF POLICY COVERAGES Any coverage under Part B or Part C afforded by the Policy shall be excess over any personal injury protection benefits paid or payable or which would be available but for the application of a deductible. Regardless of whether the full amount of personal injury protection benefits have been exhausted, any coverage under Part B afforded by this Policy shall pay the portion of any claim for personal injury protection and medical expenses which are otherwise covered but not payable due to the limitation of 80% medical expenses contained in Section 1, but shall not be payable for the amount of the deductible selected. SECTION III UNREASONABLE AND UNNECESSARY MEDICAL EXPENSES If an insured person incurs medical expenses which we" deem to be unreasonable or unnecessary, "we" may refuse to pay for those medical expenses and contest them. 16

17 "We" may reduce any payment to a medical provider under this Part by any amounts "we" deem to be unreasonable or unnecessary medical expenses. Any reductions taken will not affect the rights of an insured person for coverage under this Part. Whenever a medical provider agrees to a reduction of medical expenses charged, any co-payment owed by an insured person will be reduced. The insured person shall not be responsible for payment of any reductions applied by "us". If a medical provider disputes an amount paid by "us", we" will be responsible for resolving such disputes. If a lawsuit is initiated against an insured person as a result of the reduction of a medical bill by "us", then "we" will provide the insured person with a legal defense by counsel of "our" choice. We shall pay any resulting judgment. The insured person must cooperate with "us in the defense of any claim or lawsuit. If "we" ask an insured person to attend hearings or trials, then we will pay up to $50.00 per day for loss of wages or salary. "We" will also pay other reasonable expenses incurred at "our" request. PART F DUTIES AFTER AN ACCIDENT OR LOSS "We" must be notified as soon as practicable of how, when and where the accident or loss happened. Notice should also include the names and addresses of any injured persons and of any witnesses. A person seeking any coverage or benefits (including any assignees of the injured party) must: 1. Cooperate with "us" in the investigation, settlement or defense of any claim or suit. This includes, but is not limited to, attending hearings, depositions, trials and locating witnesses. 2. Notify us at once when a suit, summons, legal process, claim demand or notice of claim is made. 3. As a condition precedent to receiving any benefits under this policy, any injured person and/or any person or organization making a claim or seeking payment must submit to an examination under oath by any person named by "us as often as "we" may reasonably require at a place designated by "us". Only the person being examined may be present during any examination. The person being examined may be represented by an attorney and the legal guardian of a minor may be present. 4. Submit, at "our" expense and as often as "we" reasonably require, to physical or mental examinations by physicians that "we" select. 5. Authorize "us" to obtain medical reports and other pertinent records. 6. Submit a proof of loss when required by "us. 7. Submit evidence which will allow us to identify your covered car. 8. Notify the police within 24 hours or as soon as practical if a hit-and-run driver is involved. 9. If a suit is brought, then promptly, within ten days, send "us" copies of the legal papers. A person seeking coverage for damage to "your" car must also: 1. Take reasonable steps after loss, at "your" expense, to protect "your" car and its equipment from further loss. Any loss due to "your" failure to protect "your" car shall not be covered under this Policy. 2. Promptly notify the police within 24 hours or as soon as practical of discovery of the theft, larceny, conversion, pilferage or vandalism of "your" car. 3. Permit and enable "us" to inspect and appraise the damaged property before its repair or disposal. 4. In the event "we" determine your" vehicle to be a total loss, "you" must immediately release "your" car to "us". 5. When required by "us", execute and deliver, along with the repair facility, a certification of repairs attesting to the description and cost of the itemized repairs. This certification shall include a statement that the repairs were in fact performed and completed. 6. Notify us of any claim or suit within a reasonable time. Failure to comply with the above mentioned duties may result in denial of coverage to any injured person and/or any person or organization making a claim or seeking payment under this Policy. PART G GENERAL PROVISIONS 1. POLICY PERIOD AND TERRITORY This Policy applies only to accidents and losses which occur during the Policy period as shown in the Declarations, and within the Policy territory. This Policy shall be interpreted in accordance with the laws of the State of Florida. The Policy territory is the United States of America, its territories or possessions, or Canada. This Policy also applies to loss to, or accidents involving, your covered car while being transported between their ports. 2. CHANGES This Policy contains all the agreements between "you" and "us". The terms and conditions of this Policy may not be changed or waived except by an endorsement issued by "us". If a change requires a premium adjustment, "we" will adjust the premium as of the effective date of the change. If "we" revise this Policy form to provide more coverage 17

18 without an additional premium charge, then your" Policy will automatically provide the additional coverage. The additional coverage will apply as of the day the revision is effective in "your" state. You have a duty and obligation to notify us within thirty days of any of the following: (a) if any person moves into your household after the inception of the policy. (b) if any family member and/or resident obtains a driver s license after the inception of the policy. (c) if you sign for any person to obtain a permit or license after inception of the policy. (d) if the covered car has left the state for more than thirty days. (e) if you move and there are any changes to the garaging or mailing address. 3. LEGAL ACTION AGAINST US No legal action may be brought against "us" until there has been full compliance with all the terms and conditions of this Policy. In addition, under the Part A, no legal action may be brought against "us" until "we" agree in writing that the covered person, as defined in Part A, has an obligation to pay or until the amount of that obligation has been finally determined by a verdict after trial. No person or organization has any right under this Policy to bring "us" into any action to determine the liability of a covered person, as defined in Part A, until after the rendition of a verdict. Any legal action against us to determine coverage under this policy shall be filed and maintained in the county where the policy was issued. 4. OUR RIGHT TO RECOMPUTE PREMIUM The premium for this Policy has been established in reliance upon the statements made by "you" in "your" application for insurance. "We" shall have the right to recompute the premium payable for this Policy if information material to the development of the final Policy premium is subsequently obtained. It is agreed that in the event of any change in the rules, rates, rating plan, premiums or minimum premiums applicable to the insurance afforded, because of an adverse judicial finding as to the constitutionality of any provisions for the exemption of persons from tort liability, the premium stated in the Declarations for any Liability, Medical Payments and Uninsured Motorists insurance shall be deemed provisional and subject to recomputation. If this Policy is a renewal Policy, such recomputation shall also include a determination of the amount of any return premium previously credited or refunded to the you pursuant to the No-Fault Act, with respect to insurance afforded under a previous Policy. If the final premium thus recomputed exceeds the premium stated in the Declarations, you shall pay to "us" the excess, as well as the amount of any return premium previously credited or refunded. 5. 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 in the Declarations dies, coverage will be provided until the end of the Policy period for: (a) The surviving spouse as if a named insured shown in the Declarations. The spouse must be a resident in the same household at the time of death; (b) The legal representative of the deceased person as if a named insured shown in the Declarations. This applies only with respect to the representative's legal responsibility for the maintenance or use of your covered auto. 6. OUR RIGHT TO RECOVER PAYMENT A. If "we" make a payment under this Policy and the person to or for whom payment was made has a right to recover damages from another, then "we" shall be subrogated to that right. That person shall do whatever is necessary to enable "us" to exercise "our" rights and shall do nothing after loss to prejudice them. B. If "we" make a payment under this Policy and the person to or for whom payment is made recovers damages from another, then that person or "you" shall hold in trust for "us" the proceeds of the recovery. That person or you must also reimburse "us" to the extent of "our" payment. 7. TERMINATION A. Cancellation. This Policy may be canceled during the Policy period as follows: 1. Except as provided in Section 2, 3 or 4, during the first two months following the date of issuance or renewal, this Policy may not be canceled by: (a) You ; (b) Us ; Except, upon total destruction of your covered car; or upon transfer of ownership of the your covered car; or after the purchase of another Policy covering the car which was covered under this Policy; or after you are called to or on active duty outside the United States in an emergency situation, or if you are a member of the United States Armed Forces. 18

19 2. If this Policy is a new Policy, and it has been in effect for less than two months, "we" may cancel for reasons other than non-payment of premium. However, "we" may cancel for non-payment of premium if the reason for the cancellation is the issuance of a check for the premium which is dishonored for any reason. We may also cancel for non-payment of premium, if payment to us is paid pursuant to an automatic electronic funds transfer payment plan from a managing general agent. The cancellation of "your" policy shall be effective as of the date set forth in the cancellation notice sent to "you" by "us". 3. In the event "we" determine that "you" have been charged an incorrect premium for coverage requested in "your" application for insurance, "we" shall immediately mail "you" notice of any additional premium due to "us". If within 15 days of the notice of additional premium due you" fail to either: (a) pay the additional premium and maintain this Policy in full force under its original terms; or (b) cancel this policy and demand a refund of any unearned premium; then this Policy shall be canceled effective 15 days from the date of the notice. The notice period may be longer than 15 days. The actual cancellation date will be stated in the notice of additional premium due. 4. After this Policy is in effect for two months, or if this is a renewal or continuation Policy, "we" will cancel only: (a) for non-payment of premium; or (b) for misrepresentation or fraud; or (c) for any reason that would result in the Policy being voided from its inception; or (d) if "your" driver's license or that of: (1) any driver who lives with "you"; or (2) any driver who customarily uses your covered car has been suspended or revoked. This must have occurred: i. during the Policy period; or ii. if the Policy is a renewal, during its Policy period; or iii. 180 days immediately preceding its effective date. 5. After this Policy has been in effect for two months, the named insured shown in the Declarations may cancel by: (a) returning this Policy to "us"; or (b) giving "us" advance written notice of the date that the cancellation is to take effect. If no advance written notice is received, then this Policy will be canceled effective the date the request is received in "our" office. 6. "We" may cancel by mailing by registered or certified mail or United States Post Office proof of mailing to you at the address shown in the Policy: (a) at least 10 days notice if cancellation is for non-payment of premium; or (b) at least 45 days notice in all other cases. Except for Policies canceled for material misrepresentation, which may be canceled at any time. 7. Notwithstanding Sections 1, 2, 3 or 4, "we" may cancel this Policy at any time for: (a) non-payment of a renewal premium; or (b) material misrepresentation or fraud; or (c) your covered car leaving the state for more than thirty days. B. Nonrenewal. If "we" decide not to renew or continue this Policy, then "we" will mail notice by registered or certified mail or United States Post Office proof of mailing to you at the address shown in this Policy. Notice will be mailed at least 45 days before the end of the Policy period. However, if the Policy period is: 1. Less than or equal to six months, then "we" will have the right not to renew or continue this Policy every six months, beginning six months after its original effective date. 2. Greater than six months, then "we" will have the right not to renew or continue this Policy at each anniversary of its original effective date. "We" will not refuse to renew or continue this Policy solely, because: 1. "You" were convicted of one or more non-criminal traffic violations, unless "you" have been convicted of or plead guilty to: (a) Two such traffic violations within an 18 month period; or (b) Three or more such traffic violations within a 36 month period; or (c) Exceeding the lawful speed limit by more than 15 miles per hour. Provided the traffic violations did not involve an accident or cause the revocation or suspension of your driving privilege. 2. "You" have had only one at-fault accident in the last three years immediately preceding the renewal date. However, this does not apply if "you" have had three accidents regardless of fault in the past three years. C. Automatic Termination. If "we" offer to renew or continue and "you" or "your" representative do not accept, 19

20 then this Policy will automatically terminate at the end of the current Policy period. Failure to pay the required renewal premium when due shall mean that "you" have not accepted "our offer. If "you" obtain other insurance on your covered car, then any similar insurance provided by this Policy will terminate as to that car on the effective date of the other insurance. D. Other Termination Provisions. 1. "We" may deliver any notice instead of mailing it. Proof of mailing of any notice shall be sufficient proof of notice. 2. If this Policy is canceled, "you" may be entitled to a premium refund. The premium refund, if any, will be computed according to "our" manuals. However, making or offering to make the refund is not a condition of cancellation. 3. The effective date of cancellation stated in the notice shall become the end of the Policy period. 4. If a Policy or form of coverage is canceled by "us" where "we" are providing premium financing, then the return premium shall be calculated on a pro-rata basis. Pro-rata means that "we" will earn premium only for the period of time "you" were insured by this Policy. 5. If a Policy or form of coverage is canceled at your request, or by a third party such as a premium finance company, or by "us" for non payment of premium where "we" are providing the premium financing, the return premium shall be computed on a "short rate" basis. "Short rate" is defined as 90% of the premium refund calculated on a pro-rata basis. E. Garaging of Covered Auto. This Policy of insurance was issued based in part on your representation that your covered car will be maintained in the State of Florida. You acknowledge that if your covered car is not physically present within the State of Florida for more than a continuous period of 30 days, then this policy shall be void as of the 31st day. 8. TWO OR MORE AUTOS INSURED If this Policy and any other auto insurance Policy issued to "you" by "us" apply to the same accident, then the maximum limit of "our" liability under all the policies shall not exceed the highest applicable limit of liability under any one Policy. (a) This provision does not apply to Uninsured Motorist Coverage. (b) No one will be entitled to receive duplicate payment for the same elements of loss under Uninsured Motorists Coverage. 9. COOPERATION AND ASSISTANCE "You" must cooperate with "us" and, upon "our" request, must: (a) attend hearings and trials; (b) assist "us" in effecting settlements, securing and giving evidence, locating witnesses and in the conduct of suits. "You" must not, except at "your" own expense, voluntarily make any payment, assume any obligation, incur any expense for any loss or enter into any consent judgment, to which coverage of this Policy would apply unless "you" and "we" agree to the same. 10. MISREPRESENTATION Representations in applications; warranties. Any statement or description made by or on behalf of an insured or annuitant in an application for an insurance Policy or annuity contract, or in negotiations for a Policy or contract, is a representation and is not a warranty. A misrepresentation, omission, concealment of fact, or an incorrect statement may prevent recovery under the contract or Policy only if any of following apply: (a) The misrepresentation, omission, concealment or statement is fraudulent or is material either to the acceptance of the risk or to the hazard assumed by the Insurer. (b) If the true facts had been known to the Insurer pursuant to a Policy requirement or other requirement, the insurer in good faith would not have issued the Policy or contract, would not have issued it at the same premium rate, would not have issued a Policy or contract in as large an amount, or would not have provided coverage with respect to the hazard resulting in the loss. 11. CONCEALMENT & FRAUD This entire policy is void if an insured person has intentionally concealed or misrepresented any material fact or circumstances relating to: (a) this insurance; (b) the application for it; or 20