UNITED AUTOMOBILE INSURANCE COMPANY

Transcription

1 PRIVATE PASSENGER AUTOMOBILE UNITED AUTOMOBILE INSURANCE COMPANY GEORGIA AUTOMOBILE PRODUCER MANUAL

2 United Automobile Insurance Company Georgia Automobile Producers Manual TABLE OF CONTENTS INTRODUCTION 1 I. BINDING PROCEDURES 1 II. RENEWALS 4 III. VIOLATION POINT VALUES 4 IV. ACCIDENTS AND CONVICTIONS 4 V. UNACCEPTABLE RISKS 5 VI. ENDORSEMENTS 6 VII. FINANCIAL RESPONSIBILITY FILINGS 6 VIII. UNDERWRITING INFORMATION 6 IX. DISCOUNTS 7 X. COVERAGES 8 XI. VEHICLE ACCEPTABILITY RULES 9 XII. PAYMENT PLANS 10 XIII. CANCELATIONS AND NON RENEWALS 12 XIV. CLAIMS PROCEDURES 13 XV. GEORGIA RATE PAGES XVI. GEORGIA TERRITORY BY ZIP CODE 21-25

3 United Automobile Insurance Company (UAIC) Directory Underwriting Mailing Address: P.O. Box Miami, FL Phone: (866) Fax: (866) Claims Mailing Address: P.O. Box Atlanta, GA Phone: (866) Fax: (866) /20/13 ii

4 I TRODUCTIO Some important points about coverage and policy restrictions: Material misrepresentations made on the application, which the company deems fraudulent, are grounds for denial of coverage, cancellation and/or denial of a claim. Be sure to review and rate the whole risk. This means that all relatives and residents in the insured s household must be listed as drivers or excluded. The same goes for all regular non-resident drivers. The insured s unmarried children, residing elsewhere while at school or in the military must also be listed or excluded. UAIC regularly does phone interviews to verify or clarify information on the application. We will rerate policies based on information we develop during the interviews. The Named Insured (in whose name the policy and declaration page is issued) must be a registered owner of all insured vehicles. 1. BI DI G PROCEDURES A. NEW BUSINESS 1. No coverage is bound unless the application is complete and signed by both the named insured and the producer. Producers may write acceptable risks provided every question on the application is answered (and explained when called for). It is important that the Producer specifically ask the applicant the questions on the application (the questions also apply to other listed drivers) as certain statements are relied upon to issue the policy, and incorrect statements could void the policy. Both named insured and the producer represent that the information on the application is true and correct to the best of their knowledge. 2. Producers are required to review applications carefully before binding to make certain the risk is acceptable and can be bound according to this manual and subsequent bulletins. The application must list all drivers, whether excluded or non-licensed. This includes all regular drivers, whether resident or non-residents in the insured s household. The effective date on an application should not be established until the application has been completed, signed by the Named Insured and the required premium received by your agency. Do not change, strike over or otherwise alter an effective date on any application or endorsement request. Applications or endorsements received with altered effective dates will be declined. 3. The application must also include the following: a. All drivers in the household and all other operators of the vehicle(s) and their correct driver s license number(s). b. Co-owners of a vehicle must be named on the application as a driver. Exception: If said person is a cosigner for financial purposes only and is not shown on vehicle registration, then he/she does not need to be named as a driver. c. Complete vehicle description and vehicle identification number (VIN). Correct coverage and term selected. d. Uninsured Motorist Bodily Injury and Uninsured Motorist Property Damage coverage waivers as appropriate. e. Signed exclusions as appropriate. f. Telephone numbers including area code for applicant s home and place of business. g. Applicant s and Producer s signatures are mandatory. h. Occupation, employer/school and work/school address, including zip code. i. Total annual mileage and current odometer reading. Spouse information must be completed as follows: (i) If not licensed, submit a signed UAIC Non-Licensed Statement endorsement. (ii) If licensed but to be excluded, the Driver s Exclusion section of the application must be completed and a Named Driver Exclusion endorsement must be completed and submitted with the application. 8/15/08 1

5 j. If coverage is to be effective at a later date, please indicate clearly. k. Complete name and address of Loss Payee (must be a financial institution no individuals or businesses.) 4. Current MVR s for all operators (max 10 days old) must be submitted with the application. If licensed outside of the state of Georgia, please provide an MVR from that state. 5. ALL BUSI ESS MUST BE U DERWRITTE THROUGH YOUR STAFF. 6. We require an application signed by the registered owner of the vehicle. The co-owner must be included or excluded. The signature of one owner is acceptable if vehicle registration deems or. No exceptions; otherwise a cancellation will be issued. 7. In the event a producer designates a risk bound which does not conform to our underwriting guidelines, UAIC will seek reimbursement from the producer for any claims it must pay incident to the binder. B. BINDING 1. All new business applications must be printed. All applications must be signed by both the applicant and producer, indicating time and date bound. A copy of the completed application must be given to the insured. 2. The effective date of the policy is determined by the date and time it is electronically transmitted to UAIC. a. If there is no evidence of a date and time stamp, the policy will be effective 12:01 a.m. the date received by UAIC. b. If the date and time stamp is later than the requested effective date, we will issue the policy at the later date unless there is some accompanying documentation to support the earlier date. 3. APPLICATIO S MUST BE SE T TO UAIC S OFFICES O MORE THA 3 WORKI G DAYS FROM THE SALE DATE. If not submitted within this time frame, a policy cancellation will be issued to both the agent and applicant. 4. Once an application is bound, it can only be cancelled by the insured or the company. To un-bind a bound application, fax a completed UAIC void request form on the same date that the policy is bound. 5. Drivers under the age of eighteen (18) years must have the parent/guardian listed as the named insured with the underage driver listed as a second named insured. Both parties are required to sign the application. 6. Tropical Storm/Hurricane Watch or Warning Procedures a. When a tropical storm grows in intensity, the National Weather Service issues a tropical storm/hurricane Watch or Warning. If issued in an agent s particular area, binding authority for PHYSICAL DAMAGE IS SUSPENDED. b. When the National Weather Service lifts the tropical storm/hurricane Watch or Warning normal binding authority is automatically reinstated. 7. Binder Book Procedures Producers must maintain an appropriate and permanent chronological register of each transaction as it occurs, showing data and time of binder, name and address of applicant, type of coverage desire, name of the insurance company and the effective date of coverage. 5/20/13 2

6 C. UNDERWRITING APPROVALS Underwriting Guidelines are exactly as the words suggest: guidelines. On occasion there may be a risk where the interpretation of the guidelines is not clear or a part of the risk may fall in a gray area. For these situations, rather than risk a possible reject or cancellation of the policy, it is prudent to call the Company to review the risk and obtain an approval prior to submitting it. This is not an approval of the entire risk. The scope of this approval is limited to what is described above. The application and accompanying documents submitted for this risk will be evaluated for eligibility and rate adequacy. UAIC may conduct a phone interview, request a CLUE report or utilize other investigative tools to verify the information provided on the application. This approval will be voided and application rejected if: 1) the risk is unacceptable outside the scope of this approval, 2) the Broker and/or Client has misrepresented or concealed material facts about the risk and/or has failed to meet the conditions of this approval. D. COVERAGES WRITTEN Only limits of 25/50/25 shall be written on all risks. E. POLICY PERIOD Semi-annual and annual policy terms are the only available for all classes of risk at all levels of coverage. F. BINDING COMPREHENSIVE AND COLLISION COVERAGES 1. The following vehicles shall not be bound for physical damage: a. Vehicles whose current value or cost new exceeds $65,000. a. Vehicles over fifteen (15) model years old. 2. To bind Comprehensive and Collision coverage, the following is required: a. Two clear photos showing all sides, including the license plate of the vehicle, are required unless: (i) Purchased brand new from a franchise dealer and coverage bound the same day. (ii) A renewal of an existing UAIC policy, which includes comprehensive and collision coverages, with no lapse in coverage. ote: Physical damage coverages do not apply to rented vehicles. G. EXCLUDED PERSONS (Non-licensed residents) The Company will generally permit the exclusion of both relative and non-relative residents of the same household. If a spouse is to be excluded, both the named insured and spouse must sign the Named Driver Exclusion form. H. WHOLE DOLLAR RULE All premiums for each coverage must be rounded to the nearest whole dollar. A premium of $0.50 or more will be rounded to the higher whole dollar. I. ARTISANS Artisans* may be submitted in program provided they meet the following requirements: Are not self-employed or a franchisee with employees; Does not drive a pickup or van with a load capacity of one-half ton or greater; Does not use the vehicle to make deliveries; and Works in an occupation such as: Cabinet Maker Interior Designer Refrigerator Repair Carpenter Mason Roofer Electrician Painter Sheet Metal Worker Fence Installer Paperhanger Tile Setter Floor Covering Installer Plasterer Upholsterer 9/02/13 3

7 Furnace & Stove Repair Plumber Note: There is no coverage for tools and materials of any kind. *Defined as a skilled craftsman. The number of utility vehicles (pick-ups, non-converted vans, etc.) cannot exceed the number of relative residents who are artisans. 2. RE EWALS The Notice of Renewal will be mailed directly to the insured and producer forty-five (45) days prior to the current expiration date. 3. VIOLATIO POI T VALUES Determine the rating group by the total points for the last 36 months for accidents and all traffic infractions. If multiple infractions arise out of one occurrence, charge only for the highest value. If two or more cars, assign the highest rated driver to the highest rated vehicle, and the next highest rated driver to the next highest rated vehicle and any additional drivers and vehicles accordingly. 4. ACCIDE TS A D CO VICTIO S A. CHARGEABLE ACCIDENTS Chargeable accidents are accidents in which the driver was greater than 51% of the proximate cause of the accident. If a previous insurer determined that an accident was chargeable, UAIC will also consider the accident chargeable. If the driver was uninsured at the time of the accident, the police report or other objective information must accompany the application so that UAIC can determine fault. Otherwise, the accident will be considered chargeable. All Accidents 1 st Offense 4 Points 2 nd Offense 5 Points 3 rd Offense 6 Points B. NON-CHARGEABLE ACCIDENT Producers must be sure to furnish proof with the application. Points will not be assigned if the accident occurred under the following circumstances: 1. If a law enforcement officer, firefighter, or emergency medical technician was lawfully engaged in the performance of official duties or was driving an official vehicle during an accident and furnishes proof, in the form of copies of the employing agency s documents. 2. The vehicle was lawfully parked. A vehicle rolling from a parked position shall not be considered to be lawfully parked, but as in the operation of the last operator. 3. The vehicle was struck in the rear by another vehicle and the driver of the first vehicle was not convicted of a moving traffic violation. 4. The vehicle was struck in a hit and run accident. 5. Accidents that result from contact with animals, birds of falling objects. 6. The driver was responding to the call of duty in a public emergency vehicle. 7. Fully reimbursed for all damages. 8. A multi-vehicle accident when such person was not at fault in such accident. C. MAJOR VIOLATIONS Major violations include convictions under the Motor Vehicle Code, Penal Code, Business and Professions Code, Health and Safety Code or any other code. This list may not be complete at all times. If you have any doubt, contact the Company. All Major Violations 1 st Offense 5 Points 2 nd Offense 6 Points 8/15/08 4

8 1. Driving while under the influence of alcohol or narcotics or any open bottle violation. 2. Felony involving use of a motor vehicle. 3. Hit and run. 4. Reckless driving. 5. Fleeing or eluding a police officer. 6. Speeding over 30 miles over the posted limit. 7. Speed Contest-Exhibition of speed. 8. Illegal transportation of explosives. 9. Homicide or assault with a motor vehicle. 10. Passing a loading/unloading school bus. 11. This list may be revised. D. MINOR VIOLATIONS All other traffic convictions involving the unsafe operation of a motor vehicle for which the Department of Motor Vehicles has assigned a point will be counted as one point except for the following: 1. Operating a motor vehicle during the period of revocation or suspension of registration or license. 2. Operating a motor vehicle without the state or owner s authority. 3. Making false statements or impersonation in the application for license or registration. 4. Driving on the wrong side of the road. 5. Knowingly permitting an unlicensed person to drive. 6. INEXPERIENCED OPERATOR - any operator, regardless of age, who has not held a valid, permanent GEORGIA driver s license for TWO (2) years (Does not apply to drivers with an international license) **THESE VIOLATIO S WILL ALL CARRY TWO (2) POI TS** E. EXPERIENCE PERIOD The experience period for accidents and convictions is the 36-month period prior to the policy inception date. The Company will waive the last 30 days of the experience period for accidents and convictions when establishing eligibility and computing premium. This means that violations and accidents that occurred between 35 and 36 months prior to the inception of the policy will be waived. 5. U ACCEPTABLE RISKS A. More than twelve (12) underwriting points in the past 36 months. B. Applications without the Insured's street and/or residence address. C. Vehicles over forty (40) model years for liability; vehicles over fifteen (15) model years for Comp/Coll. D. We will only insure one more vehicle than drivers in the household. Extra vehicles will be rated as a 0MM driver class. E. Drivers over the age of seventy-two (72) are required to submit a medical statement signed by a physician indicating ability to operate a motor vehicle. F. Comprehensive and Collision "ONLY" policies are unacceptable. Comprehensive must always include Collision, and Collision must include Comprehensive on Full Coverage Policies. G. Vehicles with ACV over $65,000 (NADA) or ISO Symbol 60 or higher (26 or higher for Model Years 2010 and prior) for Comp/Coll. H. Students attending school outside Georgia. I. Military operators (acceptable if driver is to be stationed in Georgia for a minimum of one (1) year from inception of policy). J. Vehicles owned by Corporations, Partnerships or Associations, etc. are not acceptable. K. Vehicles not registered in Georgia or vehicles that will be operated outside of Georgia in the scope of one's business. 05/20/13 5

9 L. Drivers with a suspended or revoked Georgia license are acceptable only with the appropriate SR- 22 filing necessary for reinstatement. M. Drivers with more than 3 claims, regardless of fault, in the past 36 months. 6. E DORSEME TS Endorsements are effective under the same conditions as new business, except as stated below: Additional premium (AP) will require a down payment in order to keep the account current for billing and the remainder will be divided equally over the remaining payments. A. ADDING NEW DRIVERS. Verify eligibility before adding a driver to the policy. Coverage for drivers currently excluded on an existing policy may not be bound any earlier than the date and time the endorsement request is faxed to UAIC, or before the postmark on the envelope, if mailed. B. EXCLUDING DRIVERS Named resident drivers will not be deleted from coverage until a completed and signed Designated Person and Spousal Exclusion is received. The effective date will be no earlier than the date transmitted to UAIC. This includes residents away at school or in the Armed Forces. C. ADDING NEWLY ACQUIRED VEHICLES When adding newly acquired vehicle as defined in the policy jacket, add it effective the date acquired, provided it is reported within thirty (30) days of the acquisition. D. REDUCTION OF DEDUCTIBLES Comprehensive or Collision deductibles may not be reduced mid-term without prior written Company approval. Two color photographs showing the front, back and sides of the vehicle must be submitted with the request. 7. FI A CIAL RESPO SIBILITY FILI GS The filing fees for SR-22 s are $10.00 for each filing and it is fully earned at inception. Filings will be deleted on the next renewal following the expiration date of the filing requirements. 8. U DERWRITI G I FORMATIO A. DRIVER S LICENSE REQUIRMENTS Applications will not be accepted unless a permanent driver s license number is shown for all listed drivers. For excluded persons furnish the ID/driver s license number and occupation when possible. Valid Out-of State licenses are acceptable, as long as a Motor Vehicle report can be obtained. An International or Foreign Driver s License is acceptable, however a surcharge will apply to BI/PD/ COLL. Drivers without a permanent Georgia operator s license must comply with the following requirements to remain eligible for insurance: 1. INSTRUCTION OR LEARNER S PERMIT A permit holder cannot be the Named Insured, but can be listed as an additional driver. Drivers must complete all DMV requirements within 12 months of the date they were first covered by the policy. Driving experience credit will begin when a new driver has received a permanent license as indicated in the date license issued field of the MVR. 2. TEMPORARY LICENSE Drivers with a temporary license must complete all DMV requirements for a permanent license prior to the renewal following the date they were first covered by the policy. 3. EXPIRED LICENSE 9/02/13 6

10 Drivers with a driver s license, which has expired in the past 60 days, must submit proof of license renewal within 20 days of the inception of the policy and/or the date requested by UAIC. 4. SUSPENDED OR REVOKED LICENSE Drivers with a suspended or revoked license must provide proof of license reinstatement within 30 days of the inception of the policy and/or the date requested by UAIC. If this requirement is not met, the policy is subject to a 10-day cancellation. 9. DISCOU TS A. MULTI-CAR Multi-car rates may apply when a policy insures 2 or more vehicles. Discount applies to BI, PD, Comprehensive and Collision for like coverages only. To qualify for multi-car rates, all eligible vehicles must be: 1. Garaged at the same address; 2. Registered solely to the named Insured, and/or insured's resident; and 3. Used principally by the Named Insured, insured s resident spouse, or such resident unmarried children, of either sex under age 31. Vehicles registered or rated to persons other than the above do not qualify for the multi car discount or qualify other vehicles for the discount. Exception: A private passenger vehicle, not used commercially, and used principally by a family member residing at the garaging address, qualifies for the multi-car discount. B. RENEWAL Renewal discount applies to BI, PD, Comprehensive and Collision for any claim-free risk renewed by UAIC (previous 6 months) and no at-fault accidents or traffic violations (previous 6 months). In addition, this discount will be effective on the policy so long as the policy renews within 30 days of expiration. Renewal 1 - Applies at the first policy renewal. Renewal 2 - Applies at the second policy renewal and all renewals thereafter provided the insured qualifies for the discount. C. GOOD STUDENT For liability (BI, PD, and Med Pay) and Collision for students currently enrolled in an accredited high school, vocational school or college, who have maintained a B or better average for the most recent period of classes. Proof of grade average must accompany the application/ renewal request. D. DEFENSIVE DRIVING DISCOUNT For liability (BI, PD, and Med Pay) and Collision if all named drivers listed for each motor vehicle covered by such policy satisfy the requirements; 1. Reductions in premiums shall be available if all named drives who are 25 years of age or older; a. Have committed no traffic offenses for the prior three years and; b. Have had no claims based on fault against an insurer for the prior three years and; c. Completed one of the following types of driving courses: (i) A course in defensive driving of not less than six hours from a driver improvement clinic, or a commercial or non-commercial driving school approved by and under the jurisdiction of the Department of Public Safety; (ii) An emergency vehicles operations course at the Georgia Public Safety Training center or; 09/02/13 7

11 (iii) A course in defensive driving of not less than six hours from a Driver Improvement Program which is administered by a non profit organization, such as American Association of Retired Persons, the American Automobile Assoc., the National Safety Council, or a comparable organization which meets the standards promulgated by the Department of Public Safety or; (iv) A course in defensive driving of not less than six hours offered by an employer to its employees and their immediate families, which has been approved by the Department of Public Safety. 2. Reductions in premiums shall be available if all named drivers who are under 25 years of age; a. Have committed no traffic offenses for the prior three years and; b. Have had no claims based on fault against an insurer for the prior three years and; c. Complete a preparatory course offered to new drivers of not less than 30 hours of classroom training and not less than 6 hours of practical training by a driver s training school approved by and under the jurisdiction of the Department of Public Safety or by an accredited secondary school, junior college or college. Upon completion of one of the driving courses specified in paragraph (C) of subsection 1 or paragraph (C) of subsection 2 as applicable, by each named driver, eligibility for such policy shall continue for a period of three years, provided any named driver under such policy does not commit a traffic offense or have a claim against the policy based on any such drivers fault. E. EFT An EFT discount applies to BI, PD, Comprehensive and Collision if the named insured has selected to pay the policy premium via electronic funds transfer (EFT). The discount is lost when the EFT is removed from the policy. These discounts shall be applied for any policyholder who qualifies for such discounts. MAXIMUM ALLOWABLE DISCOU T FOR ITEMS A-E IS 30% FOR ALL COVERAGES. ANY DOCUMENTATION REQUIRED TO RECEIVE A DISCOUNT MUST ACCOMPANY THE ORIGINAL APPLICATION - NO EXCEPTIONS. 10. COVERAGES A. COMBINATION OF COVERAGES 1. Policies insuring 2 or more vehicles must be written with the same limits of liability, Uninsured Motorist and Medical Pay coverage on each vehicle. 2. Medical Payments is only written with Liability coverage. 3. Physical Damage only policies are not available. 09/02/13 8

12 B. UNINSURED MOTORISTS (Reduced and Added On) 1. Uninsured Motorist coverage will be written only with Liability and cannot exceed the Liability BI and PD limits. 2. By completing the Uninsured Motorist rejection section of the application, the insured may select UM-Reduced or UM-Added On or reject Uninsured Motorists for all vehicles. 3. UMPD may not be written without UMBI. 4. UMBI may not be written without UMPD. 5. UMPD has a $250, $500 or $1,000 Deductible. C. ROADSIDE ASSISTANCE 1. Towing and labor with additional locksmith and emergency road service benefits. 2. The semi-annual premium is $60 per vehicle. D. NON-OWNER PROGRAM 1. This program covers private passenger automobiles that are: i. Not owned or available for regular or frequent use by the insured or a resident of the insured s household or hired under a long term contract; and are ii. Neither used as a public or livery conveyance for a passenger nor rented to others without a driver. 2. A pick-up or van not owned by an individual or by residents in the same household with a GVW of less than 1 ton is considered a covered auto. 3. Towing and Labor coverage is not available. 4. Medical Payments coverage is available with a limit of $5,000, and is not rated by classification territory. 5. Uninsured motorist coverage must be offered at limits equal to the bodily injury limits, unless insured rejects this coverage in writing. 6. Unacceptable Risks i. General Rules: a. Delivery or Taxi Service, including vehicles used to transport nursery or school children, migrant workers, or hotel and motel guests. b. Servicemen not stationed in Georgia. c. Business travel out of the state of Georgia, i.e. out of state traveling salesmen. d. Regular or frequent use of any auto. e. Business use not described in item 6ia above. f. Reserved for future use. 7. Premium Determination i. Select appropriate territory and determine the applicable base rate for the classification and coverage for BI and PD (Base Rate * Territory Factor). ii. Multiply the base rate by appropriate factors for driver classification, point surcharges, and any other applicable surcharges and/or discounts and round off the result. iii. Apply the policy term factor if applicable. 11. VEHICLE ACCEPTABILITY RULES A. ACCEPTABLE VEHICLES Individually owned Private passenger automobiles including station wagons, pickups and vans provided they are not used for commercial purposes and do not have a load capacity over 3/4 ton (1500 lbs.) B. UNACCEPTABLE VEHICLES The following types and usage of vehicles are unacceptable and may not be bound for any coverage. 1. ALL rebuilt, salvaged, altered, modified, specially built, or customized vehicles*. 2. Motorcycles. 3. All commercially used vehicles. 4. Buses. 5. Corporate owned vehicles. 11/20/12 9

13 6. Driver training cars. 7. Emergency ambulance, fire department or law enforcement agency vehicles. 8. Public and private livery vehicles, limousines and taxicabs, including vehicles used to transport nursery or school children, migrant workers, hotel/motel guests, patients or members of a carpool. 9. Long haul freight carriers. 10. Vehicles rented or leased to others. 11. Vehicles used for delivery or pick up. 12. Vehicles used for racing. 13. Vehicles used to transport gasoline, gases under pressure, explosives, or flammable substances. AND ALL OF THE FOLLOWING Acura RAM Van 3500 Jaguar Mosler Shelby NSX Viper All Models All Models All Models Alfa Romeo Stealth R/T Lamborghini Nissan Spyker All models Stealth Turbo All Models Z Models All Models Aston Martin Any SRT Land Rover GTR Sterling All models Ferrari All Models Panoz All Models Audi All Models Lexus All Models Subaru S4, 5, 6, & 8 Series, TTS Ford L Series Pantera STI Series Bentley GT Lotus All models Suzuki All models E series All Models Pontiac Samurai BMW 350 Super Duty Maybach Firebird Sidekick 5,6,7,8,M,X5,X6, & Z series Transit All Models Trans Am Tesla Bugatti Cobra Mercedes-Benz Porsche All Models All models Roush 400 Series All Models Toyota Cadillac Boss Series Qvale Land Cruiser V Series GMC 600 Series All Models Yugo Chevrolet Sierra 3500 E, G, S, SL, CL Series Renault All Models Corvette Savana Cargo R and AMG Series All Models Camaro V8 Savana Passenger Maserati Rolls-Royce Passenger Monte Carlo SS Quad Steer All Models All Models Vans Express G 2500 Hummer Mitsubishi Rover KIT Cars Express G 3500 All Models except H3 G Eclipse Spyder All Models Custom Vehicles Chrysler Hyundai 3000 Series Saab Prowler EQUUS Morgan 900 Turbo Dodge Infiniti All Models Saleen Ram 3500 P/U Q Series All Models *Modified Vehicles: Vehicles with non-factory modification designed to alter performance, handling or appearance characteristics. Examples: (1) Vehicles that have been raised or lowered and vehicles that have been modified by specialty shops; (2) Franchise dealer or professional modified van (e.g.: van conversion). 12. PAYME T PLA S (Semi-annual and annual policies only) These are general rules. Your specific producer agreement with UAIC may allow different terms and procedures. A. DIRECT BILL Six (6) and Twelve (12) Month Policy Installment Plans. The installment fee at inception is $8 and the installment fee is $8. i. 6 month: Down 18%, with the remainder spread evenly across 5 monthly payments. 12 month: Down 9% with the remainder spread evenly across 11 monthly payments. ii. 6 month: Down 24.2%, with the remainder spread evenly across 4 monthly payments. 12 month: Down 12.1% with the remainder spread evenly across 10 monthly payments. 9/02/13 10

14 iii. Payments received in excess of the amount due will be applied to the next installment or installments due, in order, until the excess is fully applied. Any funds remaining (greater than $4.00) will be refunded to the insured. Amounts less than $4.00 will only be returned at the request of the insured. iv. If any payment is less than the amount invoiced, a notice of cancellation will be generated. v. Additional premium (AP) endorsements Additional premium (AP) will require a down payment in order to keep the account current for billing and the remainder will be divided equally over the remaining payments. vi. Return premium endorsements will reduce the amount of the next installment or installments until the excess is fully applied. Directions for mailing Notices of Cancellation (18% or 24.2% down payment plans only): i. The 1 st notice of cancellation will be mailed on the 16 th day from the inception date of the policy. ii. All consecutive cancellation notices will be mailed on the same day of the month as the initial invoice issued. iii. The 1 st cancellation date will be 30 days from policy inception. Direct Bill: On a cancelled policy, reinstatements and rewrites with a lapse are permitted with a maximum lapse of 30 days. All payments posted by agent into UAIC system shall be deposited into agent s bank account and swept 3 days from inception of policy. Agency Bill: On a cancelled policy, if payment is received during the grace period or up to 5 days after, the policy will be reinstated without a lapse with a no loss statement. Renewals will be sent 45 days prior to policy expiration. Fees i. If an installment payment is made after the due date and a cancellation notice has been issued, a ten dollar ($10.00) late fee will be charged. ii. If a policy is cancelled for non-payment and is then reinstated, a fifteen dollar ($15.00) fee will be charged. iii. If a payment is not honored by the financial institution, a returned check fee of twenty dollars ($20.00) will be charged. B. RECURRING PAYMENT PLANS A Recurring Payment Plan (RPP) is available for Direct Bill policies with terms of 6 and 12 months. RPP policies are automatically renewed unless a written cancellation request is submitted to the company by the insured. 1. Bank Account (EFT) Insureds have the option to authorize recurring payments via direct debit to their bank account. Premium payments are automatically deducted from the insureds account. RPP is cancelled by us when the following occurs: the policy is cancelled, invalid account information is provided, or a lapse notice is generated. New account information will be required for any rewrites. Should the insured have their policy cancelled twice for NSF during any twelve (12) consecutive months, the Company will revoke the EFT eligibility for one (1) year. 2. Debit / Credit Card Insureds have the option to authorize recurring payments via debit card or credit card. Premium payments are automatically charged to the debit or credit card. RPP is cancelled by us when the following occurs: the policy is cancelled, invalid debit or credit card information is provided, or a lapse notice is generated. New debit or credit card information will be required for any rewrites. 09/02/13 11

15 D. PAY BY PHONE (Credit, Debit, Electronic Check) United Auto will accept credit and debit card payments as well as electronic checks for new business down payments and installments. For new business, agents can pay on the website using the insured s credit or debit card, or electronic check and the commission will be deposited into the agents account, or a check will be sent, 20 days after the month s end. The insured can pay each installment by calling into UAIC and making the payment over the phone. The standard $8.00 installment fee will apply. 13. CA CELLATIO S, RESCISSIO S A D O -RE EWALS A. CANCELLATIONS Policies canceled by the Company for underwriting reasons and policies canceled for nonpayment of premium will be canceled pro-rata. All other cancellations, including insured s request, will be processed short rate. If the Company receives a request to cancel, the effective date of the cancellation will be no earlier than the date of transmission (USPS post mark, fax date, etc.). Any original written request received by the Producer, directly from the insured, should be forwarded to the company with the accompanying envelope. No Adjustment will be made to the earned premium after cancellation. 1. New Business If the Company is not willing to continue coverage, the charge will be computed pro-rata, based on the submitted premium provided the insured furnished correct information on the application. If incorrect rating information was provided on the application, i.e., additional convictions or accidents, the earned premium will be computed pro rata based upon the proper premium. B. RESCISSIONS/REJECTIONS Coverage will be rescinded/rejected if a risk is materially misrepresented and unacceptable by the rules in this manual. If the insured s down payment check is not honored for any reason, the policy will be rescinded/rejected. If an insured s check is deposited to the Producer s account and it is returned unpaid to the Producer, UAIC must be notified within 4 weeks or the inception date for a rescission of coverage. C. NON-RENEWALS Policies re-underwritten prior to the renewal that are found to be unacceptable will be nonrenewed. A thirty (30) day notice will be given. When an insured moves to another state, the insured should be encouraged to replace coverage with a company licensed to that state. The Company will cancel the policy pro-rata. D. RETURN OF UNEARNED PREMIUM On paid-in-full and Direct Bill policies, UAIC will issue return premium checks, payable to the agency, on all credit balances. The check will be mailed to the Producer for disbursement to the insured. On Premium Finance policies, UAIC will issue return premium checks to the Premium Finance Company. 10/01/11 12

16 14. CLAIMS PROCEDURE All claims are to be reported to the Company s claim service immediately following the accident. For fast claims service and to completely eliminate your time involvement in processing claims forms, please instruct your insureds and claimants to call our claims department directly. This procedure will eliminate non-productive time and give the company the opportunity to give both your client and claimants immediate direct claim service. CLAIMS TELEPHONE NUMBERS: Phone (866) Fax (866) The new loss reports division has the following working schedule: M-F 8:30 AM-5 PM PRODUCER HAS NO AUTHORITY TO ASSIGN A LOSS FOR ADJUSTMENT TO AN ENTITY OTHER THAN UAIC. 09/01/11 13