UNAUTHORIZED REPRODUCTION OR DISTRIBUTION OF THIS PROGRAM, OR ANY

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1 UNAUTHORIZED REPRODUCTION OR DISTRIBUTION OF THIS PROGRAM, OR ANY PORTION OF IT,, MAY RESULT IN SEVERE CIVIL AND CRIMINAL PENALTIES, AND WILL BE PROSECUTED TO THE MAXIMUM EXTENT OF THE LAW. NAVIGA VIGATION TIPS FORMAT The electronic manual is displayed in the same format as the hard copy manual beginning with the rule index and ending with the endorsement section. THE TOOL BAR Move your mouse pointer slowly across the tool bar and let the highlights tell you how the tools may be used. The hand tool will help you move a page around in the frame. Hold down the left mouse button and the hand will let you drag any part of the page into view. When the hand is placed over a link, it will show a pointing finger. The pointing finger denotes a link. Click with the pointed finger and you will jump to a link associated with the previous text. BOOKMARKS Activate your bookmarks by clicking on the tool bar icon which will read show/hide navigation pane. A list of bookmarks will appear on the left side of the screen. If you see only one bookmark, click on the arrow to open up the rest of the bookmarks. Bookmarks (like tabs) will take you to various parts of the manual. Review all of your bookmarks to know your navigation possibilities. You can hide the bookmarks if you wish to cover the entire screen with the document. You can hide or view the bookmarks anytime you wish. Booksmarks permit you to jump from rules to endorsements in a flash. ARROW NAVIGA VIGATION Click on the previous view arrow to return to the last page viewed. Other arrows allow you to move forward or backward one page at a time or to jump from the beginning to the end of the document (or from the end to the beginning). LINKS The color red is your key to a link; a red box indicates a link. ENDORSEMENT SIGNS e signs are endorsements references and are found in the rules section. Click on the e sign to navigate to the endorsement associated with the rule. When multiple endorsements are applicable, e sign links jump to the personal auto endorsement first. When you see a red box, click on it and you will jump to the commercial endorsement. You can quickly navigate back to the rule by using the previous view arrow. PRINT SIZE You can view the electronic pages at the magnification size that suits you the best. Refer to the percent of magnification at the bottom of the screen or click on one of the page icons on the toolbar. You can change the magnification at any time. THUMBNAILS Although you can display thumbnails if you like, the page numbers of the thumbnails do not correspond with the manual pages numbers as the manual has page numbers such as (a), (b), i, ii, iii and the like. Thumbnails show the actual number of pages in the document, beginning with page 1 and extending to all pages.

2 Governing the INSURING OF AUTOMOBILES And Standard Automobile Endorsements FOR THE STATE OF TEXAS Prescribed and Approved by the Texas Department of Insurance Pursuant to House Bill 2, as passed by the 72nd Legislature of the STATE OF TEXAS

3 Governing the INSURING OF AUTOMOBILES For the State of TEXAS For all new and renewal policies on and after MARCH 18, 1992 Existing Policies shall not be cancelled or rebated on a pro rata basis to take advantage of new rates. Prescribed and Approved by the Texas Department of Insurance Pursuant to House Bill 2, as passed by the 72nd Legislature of the STATE OF TEXAS COPYRIGHT - ICT SERVICES, INC

4 INDEX RULE Academic Achievement Discount I. Additional Provisions Automobile Dealers, Service Operations or Trailer Sales (Broadened Coverages) Adult Operator Age and Mileage Discounts G. Age Groups II.B.1. Airport Bus or Limousine D.2.g. All Terrain Vehicles All Terrain Vehicles (Individually Owned) C. Ambulance Services Amphibious Equipment Amusements Devices D.3. Antique, Collectible and Special Interest Automobiles Antique, Collectible and Special Interest Autos (Individually Owned) Antitheft Discount Anti-Lock Brakes Discount H. Application of Manual Automobile Body Manufacturers and Installers Automobile Dealers Automobile Service Operation or Trailer Sales Auto Death Indemnity and Total Disability A. Bookmobiles, Mobile Libraries, Mobile Health Units, Mobile Offices, Mobile Display Units Business Use Classes Service Use B.3.a. Retail Use B.3.b. Commercial Use B.3.c. Cancellations Certified Risks Financial Responsibility Laws Changes Charter Bus D.2.h. Church Bus D.2.d. Classifications Automobile Dealers Automobile Service Operations or Trailer Sales Private Passenger Public Auto Trucks, Tractors or Trailers Combination of Entities Composite Rating Plan C. Consumer Bill of Rights Contents Coverage I.C.3. Contents Coverage A.4. Contingent Coverage (Owners Only) II.D. Contingent Liability Coverage (Leasing Concerns) D.1.c. Contingent Physical Damage (Leasing Concerns) D.1.d. Continuation of Coverage Canceled or Terminated Policy Conversion, Embezzlement or Secretion Coverage D.5. Cost of Hire III.B. Daytime Running Lights H. Deductible Insurance Definitions Private Passenger & 74.C. Miscellaneous Type Vehicles A.4. Truckers I.A. Double Interest Charge A.1. Drive-Away Contractors Drive Other Car Coverage Driver Credits E. Driver Training Programs (Educational Institutions and Commercial Driving Schools) and Automobile Repair Training Drug and Alcohol Driving Awareness Training Credits...74.E.3. Dune Buggies Dune Buggies (Individually Owned) D. RULE Extended Coverage and Unclassified Risks... 4.A. Extended Non-Owned Auto Coverage False Pretense Coverage H.3.d. Farm Trailers D.10. Financed Automobiles Financial Responsibility Laws Fire and Theft G. Fire Departments Fleets Waiver of Description Flood C. Foreign Coverage Funeral Directors Garagekeepers Insurance Golf Carts (Individually Owned) E. Golfmobiles Gross Receipts or Mileage A. Group Marketing of Motor Vehicle Insurance Hazards Otherwise Insured Hired Automobiles Increased Liability Limits Increased Limits Tables... Increased Limits Section Individual As the Named Insured Individual Risk Submission Installments for Premium Payments Inter-city Bus D.2.e. Interim Premium Adjustment Law Enforcement Agencies Leasing or Rental Concerns Limited Specified Causes of Loss F. Limousine D.2.b. Liquefied Petroleum Gas Dealers, Distributors, Producers or Refiners D.6. Loss Rated Risks C.9. Mechanical Breakdown Insurance Rules Medical Payments Miscellaneous Coverage Miscellaneous Type Vehicles Miscellaneous Type Vehicles Definition A.4. Mobile Equipment Mobile Health Units Mobile Homes Mobile Homes Trailers I.A. Mobileowner s Policy II. Motor Bus Rules and Regulations E. Motorcycle Operator Credits Motorcycles Motorcycles and Other Similar Vehicles (Individually Owned) B. Motorhomes I.B. Motorhomes (Individually Owned) A. Moving Vans or Trucks I.A.3.d.(2). Named Non-Owner Coverage Named Non-Owner Policy I. Named Non-Owner Special Vehicle Coverage III. Named Operator Government Employees II. Named Operator or Specified Car Basis Non-Ownership Liability Non-Resident Texas Auto Coverage Non-Trucking Operations II.C. Errors, Omissions and Interim Binder B. Excess Liability Policy Experience Rating B. TENTH REPRINTING (a) EFFECTIVE MARCH 1, 1997 COPYRIGHT - ICT SERVICES, INC

5 INDEX TEXAS AUTOMOBILE RULES AND RATING MANUAL RULE Office and Supply Trailers D.9. Partnership As the Named Insured B.3. Passenger Hazard Excluded Passive Restraint Discount F. Personal Auto Policy Eligibility Personal Injury Protection Physical Damage Coverage Hired, Loaned, Leased or Furnished C. Physical Damage Rating Procedures Policy Minimum Premium Policy Term and Renewal Certificate Pollution Liability Premium Calculation Premium Development Automobile Dealers Automobile Service Operations or Trailer Sales Garagekeepers Other Than Zone Rated Automobiles (Public) Other Than Zone Rated Automobiles (Trucks) Private Passenger Special Types and Operations Zone Rated Automobiles (Public) Zone Rated Automobiles (Trucks) Premium Discount Rules Private Passenger Autos Pro Rata Table Public Automobile Classifications Public Automobiles Not Otherwise Classified D.2.n. Public Transportation Radius Class Local (Public) D.1.a. Local (Trucks) B.4.a. Intermediate (Public) D.1.b. Intermediate (Trucks) B.4.b. Long Distance (Public) D.1.c. Long Distance (Trucks) B.4.c. Rates... Rate Sections. Rating Plans Referrals to the Texas Department of Insurance Registration Plates Not Issued for a Specific Automobile Renewal Certificate Renewal Discounts H. Rental Car Companies Rental Coverage (Motorhome) A.5. Rental Reimbursement Repossessed Automobiles Retrospective Rating Plan D. Riot and Civil Commotion With or Without Mischief and Vandalism D. Rolling Stores D.4. School Bus D.2.c. Second Level Coverage D.4. Secondary Classifications Public F. Trucks, Tractors, Trailers C. RULE Sightseeing Bus D.2.i. Single Interest Coverages C. Social Service Agency Automobile D.2.m. Sound Receiving and Transmitting Equipment Special Extension of Increased Limits Special or Mobile Equipment Special Provisions (Public) G. Special Provisions (Truckers) II. Special Types and Operations Specially Constructed Trailers or Semi-trailers, Operated by a Cotton Gin D.8. Specified Causes of Loss F. Student Away From Home H. Supplementary Death Benefit (Seat Belt & Airbag Use) B. Suspension Tank Trailers D.7. Tape and Records Coverage Taxicab D.2.a. Territory Schedule and Statistical Codes... Territory Section. Texas Automobile Insurance Plan Association Texas Department of Transportation Certificated Carriers Public E. Trucks I.C. Texas Driving Insurance Plan Theft Prevention Authority Pass-Through Fee Towing and Labor Cost H. Trailer Interchange Agreement II.E. Trailers D.12. Trailers and Semi-trailers Used As Showrooms D.5. Trailers Designed For Use With Private Passenger Autos or Utility Type Vehicles Trailers Physical Damage Coverages Transportation of Athletes and Entertainers D.2.j. Transportation of Common or Agricultural Workers by Labor Agents Transportation of Employees Other Than Van Pools D.2.I. Transportation of Migrant Workers by Farm Labor Contractors Transporters of Liquid Products D.2. Truckers Truckers Hauling Exclusively For One Concern II.B. Trucks, Tractors and Trailers Two or More Autos Credit D. Uninsured/Underinsured Motorists Coverage Unique or Unusual Conditions... 4.B. Urban Bus D.2.f. Van Pools D.2.k. Waiver of Subrogation Wholesale Floor Plan D. Windstorm, Hail, Earthquake E. EFFECTIVE MAY 30, 1998 (b) ELEVENTH REPRINTING COPYRIGHT - ICT SERVICES, INC

6 e TEXAS AUTOMOBILE RULES AND RATING MANUAL SECTION I GENERAL RULES 1. APPLICATION OF MANUAL Throughout this manual Board means the three-member State Board of Insurance and Department means the Texas Department of Insurance. Base rates and base premiums mean the benchmark rates as promulgated by the Board. The rules in this manual apply to the writing of automobile insurance in the state of Texas. Exception to these rules must be approved by the Board. A. This manual is divided into separate sections for: I. General Rules II. Common Coverages and Rating Procedures III. Trucks, Tractors and Trailers IV. Private Passenger V. Public Transportation VI. Garages, Dealers, Service Stations and Parking Facilities VII. Special Types and Operations. B. If an automobile is eligible for classification or rating in more than one section of this manual because of its use, use the section producing the highest rated classification, unless 80% of the use is in a lower rated classification. C. All rates and premiums in this manual are annual rates and premiums unless otherwise specified. D. When the symbol e is shown, it indicates that a form is used. 2. GROUP MARKETING OF MOTOR VEHICLE INSURANCE In accordance with Article 21.77, Texas Insurance Code, group marketing of motor vehicle insurance is permitted when owners of motor vehicles are age 55 or over and the following conditions are applicable. Group marketing means the marketing of group motor vehicle insurance by a licensed insurer otherwise engaged in insuring independent individual risks to an eligible group on a guaranteed basis under a single insurance program without individual underwriting selection or individual proof of insurability. Any group, to be eligible for group marketing, must have been in existence for at least six months before the purchase of the insurance and must be a group organized for a purpose other than to become an insurance group under the Act, and the group may include any group that will be actuarially credible for underwriting purposes. Eligible members of a group shall include all members in good standing in the group who are over 55 years of age and lawful drivers. The insurer and the group insured must accept all members who are eligible and wish to participate in the plan. The plan shall provide that only those automobiles owned by members of the group or their spouses jointly or severally shall be eligible for coverage. To qualify to write the group insurance defined in this rule, an insurer must also be engaged in the business of writing the type of coverage offered for insureds other than group and may not be organized solely for the purpose of furnishing coverage to such groups. Coverage on forms prescribed by the Board must be by individual policies issued to each member of the group under an agreement whereby the premiums on the policies issued will be paid to the insurer periodically by the group. An insurer may not cancel the insurance of an eligible individual member of the group except for the non-payment of premiums by the member or unless the insurance for the entire group is e SECTION I GENERAL RULES canceled or non-renewed and in such cases, not less than 30 days written notice is given to each insured except for non-payment of premium when not less than 10 days written notice will be given to the individual insured. Every insurer writing insurance under a group marketing plan shall keep and maintain separate experience data on this type of business, including complete records of premium income, losses, and expenses so that the experience may be fairly ascertained. Rates for the type of business authorized under this rule shall be determined, fixed, prescribed, and promulgated in the manner provided in Article 5.101, Texas Insurance Code, as amended, so far as it is applicable. Group automobile insurance on any other basis is not permitted 3. FLEETS WAIVER OF DESCRIPTION The description of automobiles may be waived for risks containing five or more automobiles, and insured in the same company, provided that the policy states the number of vehicles by type and rating class for each territory of principal garaging or zone, if zone rated. 4. REFERRALS TO THE TEXAS DEPARTMENT OF INSURANCE Refer to the Department for: A. Rating or classifying any risk or exposure for which there is no manual rate or applicable classification. B. Risks presenting unique or unusual conditions of exposure or hazards not common to other risks in the same classifications, and where the application of the normal manual rating procedure does not produce an appropriate rate for the risk, the risk may be classified separately and individually rated. Requests for treatment under this rule: 1. must be submitted by the insurer to a qualified entity (if any) to review for accuracy before forwarding to the Department for determination. 2. must specify why the forms and any applicable rates are not appropriate, and must contain full supporting factual data. 3. It is further provided that: a. forms and any applicable rates applied for under this rule cannot be used by any carrier until approved by the Department; and b. such forms and any applicable rates, when approved, shall not be effective prior to the date of submission, c. approved forms and any applicable rates will have an effective period of not over 12 months, and will terminate at the expiration date of the current policy. In case of a policy issued for a term longer than one year, the approved rates will terminate at the end of the current anniversary period. Approved forms and any applicable rates may be revised provided information is furnished establishing to the satisfaction of the Department that the individual rates approved for the risk do not meet the standards as set out in the statute. Rates approved under this rule are subject to the application of the Automobile Liability Experience Rating Plan. 5. HAZARDS OTHERWISE INSURED Insurance afforded under other current Business Auto, Truckers or Garage Coverage Forms for the same risks, may be specifically excluded or included, on a full or excess coverage basis for any specified period. ORIGINAL PRINTING 1 EFFECTIVE MARCH 18, 1992 COPYRIGHT - ICT SERVICES, INC

7 SECTION II COMMON COVERAGES AND RATING PROCEDURES 21. COMBINATION OF ENTITIES A. Entities eligible for combination, as described under the Texas Automobile Liability Experience Rating Plan; e SECTION II COMMON COVERAGES 2. To extend coverage to cover the blanket individual liability of volunteers who use their own automobiles in the agency s social service programs, refer to Rate Section II. (Class Code 6672) 3. Unless there is substantial change in exposures during the policy period, the advance premium is the earned premium. 24. HIRED AUTOMOBILES 1. may be insured without regard to premium size under a single policy, with all minimum premiums applying as for a single risk or entity, and A. For automobiles hired, loaned, leased or furnished: 1. Less than 1 year, rate according to B. e 2. must be combined for experience rating. B. Entities not eligible for combination as described above cannot be combined. 22. DRIVE OTHER CAR COVERAGE (Class Code 9020) e e 2. 1 year or more: a. If the insured is providing the primary insurance covering the automobile, rate as though owned by the insured. If the policy is extended to cover the owner of the automobile as an additional insured, multiply.04 by the otherwise applicable liability rate. (Class Code 6614) Policies Other Than Personal Auto Policies A. A policy may be endorsed to provide drive other car coverage to individuals who do not own an auto and are not afforded personal auto coverage. b. If the owner of the automobile is providing the primary insurance, rate according to B. B. Cost of Hire Basis Liability Coverages (Class Code Minimum Premium Class Code 6619). B. Drive other car coverage includes coverage for the spouse for no additional charge. C. Rates Refer to Rate Section II. 23. NON-OWNERSHIP LIABILITY 1. For truckers, refer to the truckers rule. 2. Taxis and limousines Refer to Rate Section II 3. School and church buses Refer to Rate Section II. 4. All other buses Refer to Rate Section II. A. This rule is not applicable to Personal Auto Policies or garage risks. 5. All other automobiles The hired car rates per $100 cost of hire are located in Rate Sections III and IV. B. Premium development 6. Premium Computation: 1. All risks including social service agencies. Determine the total number of employees of the insured at all locations and select the advance premium from the rate table in Rate Section II. 2. Additional charges: a. Estimate the total cost for hire of automobiles for each state where the insured does business, including the wages of all operators whether provided by the lessor or named insured. Do not include charges for service performed by motor carrier subject to the insurance requirements of any public authority regulating motor carriers. a. If more than 50% of the insured s employees regularly operate their own automobiles in the insured s business, refer to Rate Section II for premium charges. b. To compute the advance premium, multiply the cost of hire rate determined in accordance with B., 2., 3., 4. or 5. above times each $100 cost of hire. e b. Non-ownership liability (Class Code 6671) coverage may be extended to cover the individual liability of employees while using their automobiles in the employer s business. Refer to Rate Section II for premium charges. 3. Partnership as the named insured When non-ownership liability coverage is afforded, the coverage form provides coverage to a partnership for the active or inactive individual partners who use their owned autos in the business of the partnership. Multiply the private passenger class 3 rates on the rate pages by.10 for each active or inactive partner for the territory in which the partnership is located. Apply this rating base regardless of the type of automobile being used in the business. C. Special provision for social service agency risks c. Minimum premium. Refer to Rate Section II. Exception If a certificate of automobile bodily injury and property damage liability insurance covering the interest of the named insured on a direct primary basis is provided by the owner of such vehicles, the rates per $100 of charges incurred for the hire of automobiles and trailers shall be 5% of the applicable hired car rates. If the owner of such vehicles is a motor carrier of property or passengers for hire, who is subject to the security requirements of any motor carrier law or ordinance, there shall be no premium charge for the hire of such vehicles. C. Physical Damage Coverage may be provided on a primary or excess basis for automobiles hired, loaned, leased or furnished while being operated by or in the custody of the insured. (Class Code 9990) (Coverage Codes: Other Than Collision 040, Collision 090). Additional charges: Refer to trailer interchange rate table Rate Section III. 1. For volunteers who regularly use their autos to transport social service clients in connection with the agency s programs, refer to Rate Section II. (Class Code 6670) ORIGINAL PRINTING 11 EFFECTIVE MARCH 18, 1992 COPYRIGHT - ICT SERVICES, INC

8 e e TEXAS AUTOMOBILE RULES AND RATING MANUAL SECTION III TRUCKS, TRACTORS AND TRAILERS 55. ELIGIBILITY This section applies to all trucks, including utility type vehicles, trucktractors, trailers and semi-trailers except for the following: A. Automobiles used for public transportation. Refer to the Public Transportation Section. B. Automobiles leased or rented to others by leasing or rental concerns. Refer to the leasing or rental concerns rule. C. Utility type vehicles owned by a farm partnership or farm corporation and used for farming or ranching and not customarily used for other business. Refer to the Private Passenger Section. D. Utility type vehicles which are: 1. described in Rule 71, and 2. not used for the delivery or transportation of goods, materials or supplies other than samples, unless; (a) the delivery of goods, materials or supplies is not the primary usage of the vehicle. (b) for farming or ranching. Refer to the Private Passenger Section. E. A motor vehicle that is a utility type used in the business of the United States Government, by an employee of the government, may be rated as a private passenger auto if: 1. it is described in Rule 71, and 2. not customarily used in any other occupation, profession or business of the insured other than farming or ranching, and 3. coverage is limited in accordance with the Federal Employees Using Autos in Government Business Endorsement. F. Refer to Special Types and Operations Section for rules applicable to: 1. Ambulance Services 2. Fire Departments 3. Funeral Directors 4. Law Enforcement Agencies 5. Special or Mobile Equipment including mobile health units. G. The Texas Railroad Commission or the Texas Department of Transportation requires that certain commercial motor vehicles (not defined as Truckers vehicles) be registered. A policy covering such vehicles must have the appropriate endorsement attached. Note: Utility type means vehicles (with a G.V.W. of 10,000 Ibs. or less) of the pickup body, sedan delivery, panel truck, van type and multi-use type which includes Jeeps, Blazers, Rancheros, Broncos, and other similar type vehicles. 56. PREMIUM DEVELOPMENT OTHER THAN ZONE RATED AUTOMOBILES A. This rule applies to: 1. All light trucks and trailers used with light trucks. 2. All other trucks, tractors and trailers which regularly operate within a 200 mile radius from the street address of principle garaging. For automobiles regularly operating beyond a 200 mile radius, refer to the premium development zone rated automobiles rule. SECTION III TRUCKS, TRACTORS AND TRAILERS B. If the risk is to be rated on a gross receipts, mileage, loss or composite basis, refer to the rating plans rule. C. Determine the classification rating factor and class code as follows: 1. Determine whether the risk is classified as fleet or non-fleet according to the trucks, tractors and trailers classifications rule. 2. Determine the primary rating factor from the trucks, tractors and trailers classifications rule based on size class, business use class and radius class. 3. Determine the secondary rating factor, if any, from the trucks, tractors and trailers classifications rule based on the special industry classifications. 4. Determine the combined rating factor by adding or subtracting the secondary rating factor to or from the primary rating factor. 5. For trailers used with light trucks which regularly operate beyond a 200 mile radius, use the rating factor for the intermediate rating class. D. Premium Computation: 1. Determine the territory from the territory definitions based on the street address of principal garaging. 2. Liability coverages. a. Determine the fleet or non-fleet base premiums from the liability base premium page on the rate pages. b. Multiply the base premium by the combined rating factor. 3. Physical damage coverages are on an actual cash value or stated amount basis. a. Actual cash value premiums are based on original cost new and age group of the vehicle. (1) Determine the age group. (2) Determine the original cost new. (3) Determine the appropriate base physical damage premiums in Rate Section lil. (4) Multiply the base premiums by the combined rating factor. (5) For trailers, size class does not apply. b. Stated amount basis Determine the premium as follows: (1) Determine the value of the automobile. (2) Divide the value by 100. (3) Multiply this amount by the stated amount rate in the rate pages. (4) Multiply the stated amount premium by the appropriate primary and secondary rating factors. E. Medical payments and personal injury protection. 1. Refer to the medical payments and personal injury protection table C for rates. 2. Primary and secondary rating factors do not apply. F. Uninsured/underinsured motorists coverage. 1. For rates refer to uninsured/underinsured rate page. 2. Primary and secondary rating factors do not apply. 57. TRUCKS, TRACTORS AND TRAILERS CLASSIFICATIONS Liability and Physical Damage Coverages A. Fleet Non-fleet Classifications: 1. Classify as fleet the automobiles of any risk that has five or more self-propelled automobiles of any type that THIRD REPRINTING 33 EFFECTIVE FEBRUARY 1, 1999 COPYRIGHT- ICT SERVICES, INC

9 SECTION IV PRIVATE TE PASSENGER AUTOS, NON-OWNER COVERAGES AND MISCELLANEOUS TYPE VEHICLES ELIGIBLE FOR COVERAGE UNDER PERSONAL AUTO O POLICIES 71. DEFINITIONS A. 1. A private passenger auto is a four wheel motor vehicle, other than a truck type, owned or leased under written contract for a continuous period of at least six months. SECTION IV PRIVATE PASSENGER C. Auto as used in this section refers to a private passenger auto or a vehicle considered as a private passenger auto. D. Liability as used in this section refers only to bodily injury and property damage coverages. E. Comprehensive coverage as used in this manual means other than collision coverage as respects the personal auto policy. F. Specified Causes of Loss as used in this section means the following coverages: 1. fire, lightning or explosion; 2. theft; 2. A motor vehicle that is a utility type vehicle shall be considered a private passenger auto, if it is: a. owned or leased under written contract for a continuous period of at least six months: (1) by an individual, or by two or more individuals who are residents of the same household, or (2) by two or more individuals who are not residents of the same household, but are related by blood, marriage or adoption, including a ward or foster child; and b. not used for the delivery or transportation of goods, materials or supplies other than samples, unless; (1) the delivery of goods, materials or supplies is not the primary usage of the vehicle. (2) for farming or ranching. Utility type means vehicles (with a G.V.W. of 10,000 Ibs. or less) of the pickup body, sedan delivery, panel truck, van type and multi-use type which includes Jeeps, Blazers, Rancheros, Broncos and other similar vehicles. 3. A motor vehicle owned by a farm partnership or farm corporation shall be rated as a private passenger auto if: a. it is principally garaged on a farm or ranch and principally used in farm or ranch operations, and b. it meets the requirements in 1. and 2.b. above. Refer to Rule 74.B. Exception 4. Miscellaneous type vehicles include golfmobiles, pickup trucks used solely to transport camper bodies, motorhomes, motorcycles, motorscooters, motorbikes, all terrain vehicles and similar motor vehicles not used for business purposes, other than farming or ranching. 5. Trailers include the following types: a. Utility type trailers. Vehicles designed to be pulled by a private passenger auto or utility type vehicle not used for business or commercial purposes other than farming or ranching. This does not include mobile home, recreational, store, display or passenger trailers. b. Mobile home and recreational type trailers. Mobile homes must be equipped with living quarters which include cooking, dining, sleeping facilities and plumbing or refrigeration. Recreational trailer type mobile home must be less than 40 feet in length, less than 8 feet in width and be used primarily for recreational camping. This includes camper trailers not otherwise fitting the definition of mobile homes but used for recreational camping. B. An auto subject to rating under any other section of this manual shall not be considered a private passenger auto as defined in this section. e e e 3. the sinking, burning, collision or derailment of any vessel or vehicle in or upon which your auto is being transported; 4. windstorm, hail or earthquake; 5. flood; 6. mischief or vandalism. 72. PERSONAL AUTO O POLICY AND COVERAGE ELIGIBILITY e A. A Personal Auto Policy shall be used to afford coverage, or personal auto coverage shall be afforded, to private passenger autos and motor vehicles considered as private passenger autos or trailers if: 1. they are written on a specified auto basis, and 2. they are owned by an individual or jointly by two or more individuals who are residents of the same household. B. A Personal Auto Policy shall be used to afford coverage or personal auto coverage shall be afforded to miscellaneous type vehicles if: 1. they are written on a specified auto basis; 2. they are owned by an individual or jointly by two or more individuals who are residents of the same household; and 3. they are not used in a business of rental and leasing (other than motor homes on an incidental basis refer to the Miscellaneous Type Vehicle Rule for rental coverage); and 4. coverage is limited in accordance with the Miscellaneous Type Vehicle Endorsement. Exception: Exposures in A. or B. above may be written under a commercial auto policy when combined with a commercial risk or when an auto is used in business. Attach the Individual Named Insured Endorsement. C. The Personal Auto Policy shall be used to afford coverage to a named individual who does not own an auto. The applicable endorsement must be attached. D. "Owned" as used in this Section IV includes an auto leased under written contract for a continuous period of at least six months. If an auto lease contract requires the lessee to provide primary insurance for the lessor, attach the applicable endorsement. E. The Personal Auto Policy may be used to afford coverage to joint named insureds who are residents of the same household even if such joint named insureds do not jointly own the automobile(s). The Personal Auto Policy may be used to afford coverage to joint named insureds who are related by blood, marriage or adoption, including a ward or foster child; and who are not residents of the same household, even if such joint insureds do not jointly own the auto, if: FIRST PRINTING 47 EFFECTIVE FEBRUARY 1, 1999 COPYRIGHT - ICT SERVICES, INC

10 e TEXAS AUTOMOBILE RULES AND RATING MANUAL SECTION V PUBLIC TRANSPORTATION 83. ELIGIBILITY This section applies to automobiles registered or used for the transportation of members of the public as described herein. 84. PREMIUM DEVELOPMENT OTHER THAN ZONE RATED AUTOMOBILES A. This rule applies to: 1. All taxis, limousines (except airport limousines), school, church and urban buses and van pools. 2. All other public automobiles which regularly operate within a 200 mile radius from the street address of principal garaging. For those automobiles regularly operated beyond a 200 mile radius, refer to the premium development zone rated automobiles rule. B. If risk is to be rated on a gross receipts or mileage basis, refer to the rating plans rule. C. Determine the classification rating factor and class code as follows: 1. Determine whether the risk is classified as fleet or nonfleet according to the public automobile classifications rule. 2. Determine the primary rating factor from the public automobile classifications rule based on use class and radius class. For van pools, the rating factor is based on seating capacity. 3. Determine the secondary rating factor, if any, from the public automobile classifications rule based on the seating capacity. 4. Determine the combined rating factor by adding the secondary rating factor to, or subtracting it from, the primary rating factor. D. Premium Computation: 1. Determine the rating territory from the territory definitions based on the highest rated territory where the public automobile is operated. 2. Liability coverages a. Determine the fleet or non-fleet base premiums in Rate Section V. b. Multiply the base premium by the combined rating factor. 3. Physical damage coverages are on an actual cash value or stated amount basis. a. Actual cash value premiums are based on original cost new and age group of the vehicle. (1) Determine the age group. (2) Determine the original cost new. (3) Determine the appropriate physical damage base premium in Rate Section V. (4) Multiply the base premiums by the combined rating factor. b. Stated amount basis determine the premium as follows: (1) Determine the value of the automobile. (2) Divide the value by 100. SECTION V PUBLIC TRANSPORTATION (3) Multiply this amount by the stated amount rate in Rate Section V. (4) Multiply the stated amount premium by the combined rating factor. 4. Medical payments, personal injury protection or uninsured/ underinsured motorists coverage. a. For medical payments and personal injury protection determine the premium from the medical payments and personal injury protection tables in Rate Section II. The rate thus determined from the table will not be modified by a primary or secondary rating factor. b. For uninsured/underinsured motorists coverage refer to the uninsured/underinsured motorists tables in Rate Section II. 85. PUBLIC AUTOMOBILE CLASSIFICATIONS Classify public automobiles as follows: A. If an automobile has more than one use, use the highest rated classification unless 80% of the use is in a lower rated activity. In that case, use the lower rated classification. B. Fleet non-fleet classification: 1. Classify as fleet the automobiles of any risk that has five or more self-propelled automobiles of any type that are under one ownership. Do not include automobiles owned by allied or subsidiary interests unless the insured holds a majority financial interest as defined in Section III, Rule 2 of the Automobile Liability Experience Rating Plan. 2. Do not include mobile equipment insured on a General Liability Policy in determining if the risk is a fleet. 3. Do not include trailers in determining if the risk is a fleet, but apply the fleet classification to the trailers if the risk otherwise is classified as a fleet. 4. Classify the automobiles of any other risk as non-fleet. 5. Do not change the fleet or non-fleet classification because of mid-term changes in the number of owned automobiles except at the request of the insured. The policy must be canceled and rewritten in accordance with the cancellation rule. C. Seating capacity: 1. Use the seating capacity specified by the manufacturer of the automobile unless a public authority rules otherwise. 2. Do not include the driver s seat when determining seating capacity. D. Primary classifications: 1. Radius class determine radius on a straight line from the street address of principal garaging. a. Local up to 50 miles The automobile is not regularly operated beyond a radius of 50 miles from the street address where such automobile is principally garaged. b. Intermediate 51 to 200 miles The automobile is operated beyond a radius of 50 miles but not regularly beyond a radius of 200 miles from the street address where such automobile is principally garaged. ORIGINAL PRINTING 63 EFFECTIVE MARCH 18, 1992 Copyright - ICT Services, Inc

11 SECTION VI GARAGES, DEALERS, SER- VICE STATIONS AND PARKING FACILITIES 93. AUTOMOBILE DEALERS ELIGIBILITY A. This subsection applies to franchised and non-franchised automobile dealers primarily engaged in the sale of automobiles other than trailer dealers. For trailer dealers refer to the automobile service operations or trailer sales subsection. B. Classifications and codes: 1. Only one classification and code apply to a risk for both liability and physical damage coverages, if providing only physical damage coverage, use the limited customer coverage code. Limited Unlimited customer customer coverage coverage a. Franchised private passenger auto dealer (with or without any other type of franchise) b. Franchised truck or trucktractor dealer (with or without any other type of franchise except private passenger auto franchise) c. Franchised motorcycle dealer including all two wheeled cycle vehicles (no private passenger or truck franchise) d. Franchised recreational vehicle dealer (no private passenger, snowmobile or residence type mobile home trailer franchise) e. Other franchised selfpropelled land motor vehicle dealer f. Non-franchised dealer (any risk described above that is not a franchised dealer) The following classifications also apply for physical damage coverages: a. Standard open lots are open parking storage lots enclosed on all sides by a metal cyclone or equivalent fence not less than six feet in height; or bounded on one or more sides by the wall or walls of a building, with no unprotected openings, and with the exposed sides of the lot enclosed by a metal cyclone or equivalent fence not less than six feet in height, with openings securely locked when unattended. (Buildings and Open Lots Code 2) b. Non-standard open lots are all other open lot locations, or unroofed space and buildings not securely enclosed and locked when unattended. (Buildings and Open Lots Code 3) c. Buildings. (Buildings and Open Lots Code 1) d. Buildings Miscellaneous Types. (Buildings and Open Lots Code 4) e. Open Lots Miscellaneous Types. (Buildings and Open Lots Code 5) 94. AUTOMOBILE DEALERS PREMIUM DEVELOPMENT SECTION VI GARAGES The liability rates reflect an aggregate limit, applicable to other than auto losses, of three times the otherwise applicable per accident liability limit. For alternate aggregate limits of liability refer to Increased Limit Table II., D. For each location determine the rating territory from territory definitions based on street address. Compute the advance premium at inception and the earned premium as developed by audit separately for each location according to the following procedures. A. Liability (limited coverage for customers) Multiply the rates in Rate Section VI by the total rating units determined as follows: 1. Class I employees including part-time employees Multiply the number of class I employees working an average of less than 20 hours a week for the number of weeks worked by.50 before determining the number of rating units. a. Determine the number of rating units by multiplying the number of these employees by (1) Proprietors, partners and officers active in the business. (2) Sales persons, general managers, service managers. (3) Any employee whose principal duty involves the operation of automobiles or who is furnished a garage automobile. b. All other employees Determine the number of rating units by multiplying the number of employees by Class II non-employees Any individual other than a person described in class I who is regularly furnished with a dealer s automobile. If more than one person has use of the same furnished automobile, use only the factor for the highest rated operator in determining rating units. a. Under age 25 Determine the number of rating units by multiplying the number of these persons by b. Age 25 or over Determine the number of rating units by multiplying the number of these persons by For non-franchised dealer, multiply the dealer rates shown in Rate Section VI by The minimum premium is the dealers rate shown in Rate Section VI for the highest rated location multiplied by B. Liability unlimited coverage for customers: 1. Liability coverage may be extended to provide unlimited customer coverage. 2. Multiply the total premium developed for the limited liability by C. Automobiles furnished for regular use to other than class I or class II operators, for example: welcome wagons, or automobiles or motorcycles furnished to driver training programs. Compute the premiums for all coverages for each owned automobile as follows: 1. Private passenger automobiles (Class Code 7877). Charge class 3 private passenger premiums. 2. Utility types, trucks, tractors and trailers (Class Code 7878). Charge the premiums developed by the applicable trucks, tractors or trailers classification. 3. Motorcycles (Class Code ). Charge the premiums developed by the applicable motorcycle classification. ORIGINAL PRINTING 73 EFFECTIVE MARCH 18, 1992 Copyright - ICT Services, Inc

12 SECTION VII SPECIAL TYPES AND OPERATIONS 118. ELIGIBILITY This section applies to all automobiles specified herein that are not classified and rated in the other sections. An auto specified herein owned by an individual or by husband and wife who are residents in the same household not customarily used in the occupation, profession or business of the insured other than farming or ranching shall be afforded personal auto coverage in accordance with the Private Passenger Section PREMIUM DEVELOPMENT A. Determine the rating territory from the territory definitions based on the street address of principal garaging. B. Liability and physical damage. See specific rating instructions for each classification in this section. C. Medical payments and personal injury protection. Refers to specific rules in this section. If no premium or procedures are shown, determine premiums as follows: 1. If liability premiums are developed from commercial base premium fleet or non-fleet, charge commercial autos medical payments and personal injury protection premiums. 2. If liability premiums are developed from private passenger type premiums charge private passenger medical payments and personal injury protection premiums. D. Uninsured/underinsured motorists coverage. Refer to Rate Section II ALL-TERRAIN VEHICLES This rule does not apply to vehicles eligible for personal auto coverage. All-terrain vehicles (Class Code 9590) are four or six wheel motor vehicles equipped with balloon tires or crawler treads, designed for use on rugged terrain or rugged terrain and water. The premiums determined by this rule are nonrefundable minimum premiums for the policy period. A. Not used for commercial purposes: 1. Liability, medical payments and personal injury protection Refer to Rate Section VII. 2. Uninsured/underinsured motorists Refer to Rate Section II. 3. Physical damage Refer to Rate Section VII. B. Used for commercial purposes: 1. Liability, medical payments and personal injury protection Refer to Rate Section VII. 2. Uninsured/underinsured motorists Refer to Rate Section II. 3. Physical damage Specified causes of loss and collision Refer to Rate Section VII. Comprehensive Refer to Rate Section III, all other type for stated amount. e e e e e e 121. AMBULANCE SERVICES SECTION VII SPECIAL TYPES A. The policy must exclude coverage for bodily injury to any volunteer worker engaged in rescue squad or ambulance corps operations. B. The policy must exclude coverage for bodily injury or property damage which results from providing or failing to provide any professional service. C. Premium Computation. Refer to Rate Section VII AMPHIBIOUS EQUIPMENT For automobiles designed to operate on both land and water, rate as land automobiles according to their use ANTIQUE, COLLECTIBLE AND SPECIAL INTEREST AUTOMOBILES (Class Code 9620) A. This rule applies to automobiles that are: 1. not eligible for coverage under a Personal Auto Policy, and 2. maintained primarily for use in exhibitions, club activities, parades and other functions of public interest and 3. occasionally used for other purposes. B. Premium Computation. Refer to Rate Section VII AUTOMOBILE BODY MANUFACTURERS AND INSTALLERS (Class Code 7924) An automobile, body or trailer manufacturer may be insured for the testing or delivery of any automobile it manufactures, assembles, rebuilds or repairs. Premium Computation. A. Compute the premium for owned automobiles, hired automobiles and non-ownership liability in the usual manner. B. Factory testing hazard. Refer to Rate Section VII FINANCED AUTOMOBILES A. Dual interest coverage 1. Every policy must be issued at full benchmark rates applicable to the automobile insured in the territory involved subject to the minimum premium prescribed in the manual. All coverages provided by manual rules may be added to any policy by the attachment of the proper form therefor as prescribed in the manual and full benchmark rates shall be charged. A Special Loss Payable and Cancellation Endorsement is available for optional use on individual policies. The Special Loss Payable and Cancellation Endorsement provides that the lienholder/loss payee is responsible for payment of the premium for the policy and that a written notice of any cancellation or material change in the policy will be mailed to the lienholder/ loss payee at least 10 days prior to cancellation or material change. FIRST REPRINTING 83 EFFECTIVE JANUARY 1, 1994 Copyright - ICT Services, Inc

13 TERRITORY SECTION TERRITORY SCHEDULE AND STATISTICAL CODE The following pages contain the Texas Territory Schedule and Statistical Code designations for all automobile liability and physical damage coverages. Common territory definitions are prescribed for all coverages, i.e., 01 applies for Harris County for bodily injury and property damage liability coverages as well as comprehensive, specified causes of loss and collision coverages. The appropriate territory schedule and statistical code number may be determined by referring to either the alphabetical county index or city-town index. If the county is unknown and the city or town index does not list the locality desired, refer to an atlas or map for necessary identifying information. In the event the city or town is located in more than one county, the actual county of garaging determines the territory. TEXAS COUNTY INDEX State Code 42 TEXAS County Terr. Sched. & Code A Anderson Andrews Angelina Aransas Archer Armstrong Atascosa Austin B Bailey Bandera Bastrop Baylor Bee Bell Bexar Blanco Borden Bosque Bowie Brazoria Brazos Brewster Briscoe Brooks Brown Burleson Burnet C Caldwell Calhoun Callahan Cameron Camp Carson Cass Castro Chambers Cherokee Childress Clay Cochran Coke Coleman Collin Collingsworth Colorado Comal Comanche Concho Cooke Coryell Cottle County Terr. Sched. & Code Crane Crockett Crosby Culberson D Dallam Dallas Dawson Deaf Smith Delta Denton DeWitt Dickens Dimmit Donley Duval E Eastland Ector Edwards Ellis El Paso Erath F Falls Fannin Fayette Fisher Floyd Foard Fort Bend Franklin Freestone Frio G Gaines Galveston Garza Gillespie Glasscock Goliad Gonzales Gray Grayson Gregg Grimes Guadalupe H Hale Hall Hamilton Hansford County Terr. Sched. & Code Hardeman Hardin Harris Harrison Hartley Haskell Hays Hemphill Henderson Hidalgo Hill Hockley Hood Hopkins Houston Howard Hudspeth Hunt Hutchinson l Irion J Jack Jackson Jasper Jeff Davis Jefferson Jim Hogg Jim Wells Johnson Jones K Karnes Kaufman Kendall Kenedy Kent Kerr Kimble King Kinney Kleberg Knox L Lamar Lamb Lampasas La Salle Lavaca Lee Leon Liberty Limestone ORIGINAL PRINTING 103 EFFECTIVE MARCH 18, 1992 COPYRIGHT - ICT SERVICES, INC

14 INCREASED LIMITS TABLES AUTOMOBILE INCREASED LIMITS TABLES Introduction The following tables contain the increased limits factors and charges to be used in determining premium at limits in excess of $20,000/$40,000 bodily injury, $15,000 property damage and $55,000 combined liability limit. Refer to the Department for factors for limits of liability not included herein. Refer to the conversion tables in this section in those cases when liability limits of less than $20,000/$40,000 bodily injury, $15,000 property damage or $55,000 combined liability limit are required. INCREASED LIMITS TABLE I Applicable to private passenger automobiles and miscellaneous type vehicles as classified and rated in the private passenger section of this manual. A. Bodily injury Limits in Thousands Limit Per Person 20/40 25/50 25/100 50/50 55/55 50/100 75/75 100/ / % 111% 123% 127% 129% 137% 137% 147% 158% Supplemental Table Limits in Thousands Limit Per Person Limit Per Occur rence % % % % % % % % % % % % % % % % % % % % % % % % % % % B. Property Damage C. Combined Liability Limit. $ 15, % $ 120, % $ 550, % $ 55, % 20, , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,000, , , , ,000, , , , ,000, ,000, , , ,000, ,000, , , ,000, ,000, ,000, SEVENTH REPRINTING 109 EFFECTIVE DECEMBER 31, 2001 COPYRIGHT - ICT SERVICES, INC

15 TEXAS AUTOMOBILE RULES AND RATING MANUAL 22. DRIVE OTHER CAR COVERAGE (CLASS CODE 9020) C. (Rates for individuals who do not own an auto and are not afforded personal auto coverage). * Premium Per Limit Named Coverage Limits Code Individual Combined $55,000 each accident 09 $32 Liability Bodily Injury $20,000 each person 14 40,000 each accident Property Damage 15,000 each accident 14 Medical Payments , , , , , , , , Comprehensive (COV. CODE 038) Full 7 Collision (COV. CODE 088) $50 Ded. 21 *No additional charge for spouse. 23. NON OWNERSHIP LIABILITY B. Premium Development 1. Total Bodily Property Combined Number Injury Damage Liability Class Of Limits Limit Limit Code Employees $20/40 $15,000 $55, $16 $6 $ , Over 1, a. Multiply the actual number of those employees using their own autos in the insured s business times.045 of the class 3 liability rate applicable at the headquarters location and add the result to the advance premium. b. Multiply the premium determined paragraph 1. above by.25. C. Special provision for social service agency risks. 1. Multiple the total number of volunteers who regularly operate their own autos to transport social service clients in connection with agency s program by the following rate: Bodily Property Combined Injury Damage Liability $20/40 $15,000 $55,000 Rate $2 $1 $4 Minimum Premium Charge the following rate per volunteer: RATE SECTION II COMMON COVERAGES Bodily Property Combined Injury Damage Liability $20/40 $15,000 $55,000 Rate $2 $1 $4 Minimum Premium Minimum premium applies per policy. 24. HIRED AUTOMOBILES B. Liability Coverages 2. Taxis and Limousines - Charge.02 of the specified car rate determined in accordance with the applicable manual rule. 3. School and church buses - Charge.02 of the Class 3 private passenger rate. 4. All other buses - Charge.01 of the specified car rate determined in accordance with the applicable manual rule. 6. Premium Computation: c. Minimum Premium. Bodily Property Combined Injury Damage Liability $20/40 $15,000 $55,000 $13 $3 $ UNINSURED/UNDERINSURED MOTORISTS COVERAGE NOTE APPLICABLE TO TABLES For limits below the maximum limits shown in Tables A, B & C interpolation may be used. TABLE A Bodily Injury Premiums Territories 01,02,03,04,05, All Limits 06,07,12,21,22 Other * $ 20/40 Involuntary $105 $72 20/40 Voluntary / / / / / / / / / / / / / / /1, ,000/1, ,000/2, ,000/5, *Private Passenger autos only Note: Add $1 for the first motor vehicle or dealer s plates for an individual or husband and wife and for each designated person. THIRTHTEEN REPRINTING 113 EFFECTIVE DECEMBER 31, 2001 COPYRIGHT - ICT SERVICES,, INC

16 RATE SECTION III TRUCKS, TRACTORS AND TRAILERS 57. TRUCKS, TRACTORS AND TRAILERS CLASSIFICATIONS B. Primary Classifications 5. a. NON-FLEET PRIMARY CLASSIFICATIONS RATING FACTORS AND STATISTICAL CODES Business Radius Class Size Use Local Intermediate Long Distance Class Class Up to 50 Miles 51 to 200 Miles Over 200 Miles Liability COLL. & OTC Liability COLL. OTC Liability COLL. OTC Light Trucks Service Factor (0-10,000 Ibs.) Code G.V.W.) Retail Factor Code Commercial Factor Code ZONE RATED Medium Trucks Service Factor (10,001 - Code ,000 Ibs. Retail Factor G.V.W.) Code Commercial Factor Code Heavy Trucks Service Factor (20,001 - Code ,000 Ibs. Retail Factor G.V.W.) Code Commercial Factor Code Extra-Heavy Trucks (Over Factor ,000 Ibs. G.V.W.) Code Heavy Truck - Service Factor Tractors Code (0-45,000 Ibs. Retail Factor G.C.W.) Code Commercial Factor Code Extra-Heavy Truck-Tractors Factor (Over 45,000 Ibs. G.C.W.) Code TRAILER TYPES Semi-trailers Factor Code Trailers Factor Code Service or Utility Trailer Factor (0-2,000 Ibs. load capacity) Code THIRD REPRINTING 127 EFFECTIVE JANUARY Y 20, 1998 COPYRIGHT - ICT SERVICES, INC

17 TEXAS AUTOMOBILE RULES AND RATING MANUAL 76. TRAILERS DESIGNED FOR USE WITH PRIVATE PASSENGER AUTOS OR UTILITY TYPE VEHICLES A. Liability. No. charge. B. Physical damage. 1. Mobile homes and recreational trailers a. and b. Rates Per $100 of Insurance 02,03,04,13,23, 01,06,07,12, 24,27,28,31,32, Territory 21,22,37,38, 34,41,42,43,44, 05,10,11,14, 39,40,48,49, 45,46,47,51,52, 16,20,59,60, 54,55,56,57 53,58,63,64,66 61,62,65 Fire $.37 $.37 $.37 Theft Full Coverage Comprehensive Full Coverage Comprehensive Modified $ Hail Deductible $50 Deductible Comprehensive Modified $ Hail Deductible $100 Deductible Comprehensive Modified $ Hail Deductible Specified Cause of Loss Modified $ Hail Deductible Limited Specified Causes of Loss Modified $ Hail Deductible c. Contents Coverage Fire Specified Causes of Loss (Excluding Theft) Limited Specified Causes of Loss (Excluding Theft) RATE SECTION IV PRIVATE PASSENGER COLLISION PREMIUMS The premiums shown below are subject to a retained minimum premium equal to.25 of the annual premiums applicable. Deductibles Original Cost New $50 $100 $250 New Old New Old New Old $ 0 - $ 600 $ 27 $ 22 $ 12 $ 9 $ 8 $ , ,051-1, ,301-1, ,601-1, ,901-2, ,401-3, ,001-4, ,001-5, ,001-6, ,001-7, ,001-8, ,001-9, ,001-10, For mobile homes having a cost exceeding $10,000, the indicated premiums for the $9,001 to $10,000 group shall be increased.10 per $1,000 or fraction thereof in excess of $10,000. Note: New means purchased new not more than 18 months prior to date insurance attaches. Old All Others. For collision coverages other than above, refer to the deductibles in Rate Section II. d. Trip collision may be afforded for a period of thirty consecutive days. TRIP COLLISION RATES RATES PER $100 OF INSURANCE Territory Deductibles $100 Ded. $250 Ded. $500 Ded. $1,000 Ded. 01 $.20 $.18 $.16 $.10 02,03,10,11, 12,14,21,22, 32,37,40,59, ,61,62,65 05,07,16,24, 47,48,49,51, ,53,58,63, 64,66 04,06,13,20, 23,27,28,31, 34,38,39,41, 42,43,44,45, ,54,55,56, 57 Note: Trip collision rates shown above are for 30 days coverage. 2. All other trailers. Refer to the trailer-physical damages coverages rule. FOURTH REPRINTING 147 EFFECTIVE DECEMBER 31, 2001 COPYRIGHT - ICT SERVICES, INC

18 RATE SECTION V PUBLIC TRANSPORTATION 85. PUBLIC AUTOMOBILE CLASSIFICATIONS NON-FLEET PRIMARY CLASSIFICATIONS RATING FACTORS AND STATISTICAL CODES Radius Taxicabs Local Intermediate Long Distance and Up to 50 Miles 51 to 200 Miles Over 200 Miles Limousines Liability COLL. OTC Liability COLL. OTC Liability COLL. OTC Taxicab or Similar Factor Passenger Carrying Code Service Limousine Factor Code School Buses and Church Buses School Bus Owned by Factor Political Subdivision Code or School District Other School Bus Factor Code Church Bus Factor Code Other Buses Urban Bus Factor Code ZONE RATED Airport Bus or Factor Airport Limousine Code Inter-City Bus Factor Code Charter Bus Factor Code Sightseeing Bus Factor Code Trans. of Athletes Factor and Entertainers Code Social Service Factor Automobile Code Employee-Operated Social Service Factor Automobile Code All Other Public, N O C Factor Code ORIGINAL PRINTING 181 EFFECTIVE MARCH 18, 1992 COPYRIGHT - ICT SERVICES, INC

19 RATE SECTION VI GARAGES 94. AUTOMOBILE DEALERS PREMIUM DEVELOPMENT D. Pick up or delivery of automobiles 1. Rate each driver per trip for such pick up or delivery operations as follows: Per Driver Per Trip Liability Rates Combined Liability Mileage $55, Miles $23 over 200 Miles Minimum premium. Charge the class 3 private passenger premium for the rating territory where the dealer is located. E. Medical payments: 1. Proprietors and executive officers. a. Multiply the private passenger class 3 medical payments premium by 2.00 for each person. Use the rating territory where the dealer is located. b. Charge the class 3 private passenger automobile medical payments rate for each individual. Use the rating territory where the garage risk is located. 2. Automobile exposures and garage operations. a. Multiply the $55,000 combined liability premium by the appropriate factors for the desired coverage: Medical payments limits per person $500 $1,000 $2,500 $5,000 $10,000 $25,000 $50,000 $75,000 $100,000 Limit Codes (1) (3) (4) (6) (7) (7) (7) (7) (7) Automobile medical payments only Limited Unlimited Garage operations medical payments only Limited Unlimited Combined garage operations and automobile medical payments Limited Unlimited b. When liability limits are other than $55,000 combined compute the medical payments factor as follows: Medical payments percentage for $55,000 combined limit Applicable factor for increased limit EIGHTH REPRINTING 193 EFFECTIVE DECEMBER 31, 2001 COPYRIGHT- ICT SERVICES, INC

20 TEXAS AUTOMOBILE RULES AND RATING MANUAL 120. ALL-TERRAIN VEHICLES A. Not used for commercial purposes: 1. Liability Multiply the Class 3 private passenger rates by.50. Refer to Rate Section IV. Medical payments and personal injury protection Multiply the class 3 private passenger rate from Table A, Rate Section II by Physical Damage Charge the following: Stated Amount Coverage Deductible Rate per $100 Specified Causes of Loss $ 0 $1.63 Comprehensive Collision B. Used for commercial purposes: 1. Liability Multiply the Class 3 private passenger rates shown in Rate Section IV by the following factors: Engine Size cc Factors applied to Class 3: over for each 200cc or fraction over 1000cc Medical payments and personal injury protection Multiply the class 3 private passenger rate from Table A, Rate Section II by Physical damage a. Specified Causes of Loss Charge $.61 per $100 of insurance. b. Collision Multiply the symbol 4 (for 1989 and prior) or symbol 1 (for 1990 and subsequent) class 3 private passenger collision premiums by the following factors: Original Cost New Factors $ over for each $1000 or fraction over $ AMBULANCE SERVICES C. 1. Liability coverages Multiply the fleet or non-fleet commercial base rate by 3.00 for emergency use (Class Code 7913) or 2.00 for non-emergency use (Class Code 7914). Refer to Rate Section III. 2. Physical damage a. Other Than Collision Multiply the commercial base premium or rate by.75 for size class light and medium or.80 for size class heavy and extra-heavy. b. Collision Multiply the commercial base premium by 2.10 for emergency use or 1.05 for non-emergency use. RATE SECTION VII SPECIAL TYPES For original cost new exceeding $115,000 use the following: Original Cost New Factor $115,000 - $140,000 Charge the Premium for over $115,000 shown for commercial automobiles Not Zone Rated. $140,001 - $300, over $300, An additional charge shall be added for each $1,000 or fraction thereof, in excess of $140,000. Determine the base premium displayed in the over $115,000 bracket and apply the appropriate factor to calculate the extra per $1,000 charge. Add the result to the base premium and apply the collision factor from 2.b. above ANTIQUE, COLLECTIBLE AND SPECIAL INTEREST AUTOMOBILES (CLASS CODE 9620) B. 1. Liability. Multiply the Class 3 private passenger rate by.25. Refer to Rate Section IV. 2. Medical payments and personal injury protection. Charge.25 of the class 3 private passenger rate from the appropriate table in Rate Section II. 3. Physical damage. Insure these automobiles on a stated amount basis only. Coverage Code Rate Per $100 Specified Causes of Loss 011 $1.40 $ 50 Ded. Comprehensive $100 Ded. Comprehensive $200 Ded. Collision $250 Ded. Collision AUTOMOBILE BODY MANUFACTURERS AND INSTALLERS (CLASS CODE 7924) B. Compute the premium for the factory testing hazard by multiplying the appropriate fleet or non-fleet commercial base premium or rate for each employee engaged in these operations by Refer to Rate Section III FINANCED AUTOMOBILES B. Errors, Omissions and Interim Binder First $100,000 of outstanding liability... 1 cent per month for each $100 Next $900,000 of outstanding liability... 1/2 cent per month for each $100 Over $1,000,000 of outstanding liability... 1/4 cent per month for each $100 The minimum premium shall be $25.00 C. Single Interest coverages Premium Development 4. d. For deductibles multiply the single interest rates on the rate tables by the following factors Coverage Deductible Amount $100 $250 Comprehensive Collision Fire and Theft EIGHTH REPRINTING 205 EFFECTIVE DECEMBER 31, 2001 COPYRIGHT - ICT SERVICES, INC

21 SYMBOL AND IDENTIFICATION SECTION SYMBOL AND IDENTIFICATION INFORMATION Rating Price Model & Symbol New Engine Body Type & Code Sym VIN Disp/Cyl ACURA 3.5RL SED 4 Dr JH4KA965&2 3.5L/ 6 SED 4 Dr JH4KA966&2 3.5L/ 6 RSX HCHBK 2 Dr JH4DC538&2 2.0L/ 4 HCHBK 2 Dr JH4DC548&2 2.0L/ 4 RSX TYPE S HCHBK 2 Dr i JH4DC530&2 2.0L/ 4 3.2TL SED 4 Dr i UUA566&2 3.2L/ 6 SED 4 Dr i UUA567&2 3.2L/ 6 3.2TL TYPE S SED 4 Dr i UUA568&2 3.2L/ 6 SED 4 Dr i UUA569&2 3.2L/ 6 BUICK RENDEZVOUS CX UTL 4X2 4 Dr G5&A03E&2 3.4L/ 6 RENDEZVOUS CX/CXL AWD UTL 4X4 4 Dr G5&B03E&2 3.4L/ 6 CADILLAC ESCALADE UTL 4X2 4 Dr GY&C63T&2 5.3L/ 8 ESCALADE AWD UTL 4X4 4 Dr GY&K63N&2 6.0L/ 8 CHEVROLET PRIZM BASE/PRIZM LSI SED 4 Dr Y1SK528&2 1.8L/ 4 SED 4 Dr Y1SK548&2 1.8L/ 4 AVALANCHE 1500 BASE/Z66/Z71 UTL 4X2 4 Dr GN&C13T&2 5.3L/ 8 UTL 4X4 4 Dr GN&K13T&2 5.3L/ 8 TRAILBLAZER LS/LT/LTZ UTL 4X2 4 Dr GN&S13S&2 4.2L/ 6 UTL 4X4 4 Dr GN&T13S&2 4.2L/ 6 Rating Price Model & Symbol New Engine Body Type & Code Sym VIN Disp/Cyl CHRYSLER PT CRUISER WAG 4X2 4 Dr C4&Y48B&2 2.4L/ 4 WAG 4X2 4 Dr C8&Y48B&2 2.4L/ 4 PT CRUISER TOURING EDITION WAG 4X2 4 Dr C4&Y58B&2 2.4L/ 4 WAG 4X2 4 Dr C8&Y58B&2 2.4L/ 4 PT CRUISER LIMITED EDITION WAG 4X2 4 Dr C8&Y68B&2 2.4L/ 4 FORD THUNDERBIRD CONV 2 Dr p FAHP60A&2 3.9L/ 8 THUNDERBIRD NEIMAN MARCUS EDITION CONV 2 Dr p FAHP64A&2 3.9L/ 8 EXPLORER EDDIE BAUER UTL 4X2 4 Dr FM&U64E&2 4.0L/ 6 UTL 4X2 4 Dr FM&U64K&2 4.0L/ 6 UTL 4X2 4 Dr FM&U64W&2 4.6L/ 8 UTL 4X4 4 Dr FM&U74E&2 4.0L/ 6 UTL 4X4 4 Dr FM&U74K&2 4.0L/ 6 UTL 4X4 4 Dr FM&U74W&2 4.6L/ 8 EXPLORER LIMITED EDITION UTL 4X2 4 Dr FM&U65E&2 4.0L/ 6 UTL 4X2 4 Dr FM&U65K&2 4.0L/ 6 UTL 4X2 4 Dr FM&U65W&2 4.6L/ 8 UTL 4X4 4 Dr FM&U75E&2 4.0L/ 6 UTL 4X4 4 Dr FM&U75K&2 4.0L/ 6 UTL 4X4 4 Dr FM&U75W&2 4.6L/ 8 EXPLORER XLS UTL 4X2 4 Dr FM&U62E&2 4.0L/ 6 UTL 4X2 4 Dr FM&U62K&2 4.0L/ 6 UTL 4X4 4 Dr FM&U72E&2 4.0L/ 6 UTL 4X4 4 Dr FM&U72K&2 4.0L/ 6 EXPLORER XLT UTL 4X2 4 Dr FM&U63E&2 4.0L/ 6 UTL 4X2 4 Dr FM&U63K&2 4.0L/ 6 UTL 4X2 4 Dr FM&U63W&2 4.6L/ 8 UTL 4X4 4 Dr FM&U73E&2 4.0L/ 6 UTL 4X4 4 Dr FM&U73K&2 4.0L/ 6 UTL 4X4 4 Dr FM&U73W&2 4.6L/ 8 GMC ENVOY SLE/ENVOY SLT UTL 4X2 4 Dr GK&S13S&2 4.2L/ 6 UTL 4X4 4 Dr GK&T13S&2 4.2L/ 6 INFINITI G20 SED 4 Dr JNKCP11A&2 2.0L/ 4 Q45 SED 4 Dr h JNKBF01A&2 4.5L/ 8 Use the rating symbol to determine physical damage base rates. TEXAS SI EFFECTIVE JANUARY 29, 2002 See notation on Page 1 of the Symbol manual regarding ISO s assertion of a copyright and proprietary interest in the Symbols.

22 SYMBOL AND IDENTIFICATION SECTION SYMBOL AND IDENTIFICATION INFORMATION Rating Price Model & Symbol New Engine Body Type & Code Sym VIN Disp/Cyl ISUZU AXIOM BASE/AXIOM XS UTL 4X2 4 Dr S2&E58X&2 3.5L/ 6 UTL 4X4 4 Dr S2&F58X&2 3.5L/ 6 JAGUAR S-TYPE SED 4 Dr i SAJDA01N&2 3.0L/ 6 SED 4 Dr h SAJDA01P&2 4.0L/ 8 S-TYPE SPORT SED 4 Dr i SAJDA03N&2 3.0L/ 6 SED 4 Dr h SAJDA03P&2 4.0L/ 8 X-TYPE AWD SED 4 Dr SAJEA51C&2 3.0L/ 6 SED 4 Dr SAJEA51D&2 2.5L/ 6 SED 4 Dr SAJEB51C&2 3.0L/ 6 SED 4 Dr SAJEB51D&2 2.5L/ 6 X-TYPE SPORT AWD SED 4 Dr SAJEA53C&2 3.0L/ 6 SED 4 Dr SAJEA53D&2 2.5L/ 6 SED 4 Dr SAJEB53C&2 3.0L/ 6 SED 4 Dr SAJEB53D&2 2.5L/ 6 JEEP LIBERTY SPORT UTL 4X2 4 Dr J4&K481&2 2.4L/ 4 UTL 4X2 4 Dr J4&K48K&2 3.7L/ 6 UTL 4X2 4 Dr J8&K481&2 2.4L/ 4 UTL 4X2 4 Dr J8&K48K&2 3.7L/ 6 UTL 4X4 4 Dr J4&L481&2 2.4L/ 4 UTL 4X4 4 Dr J4&L48K&2 3.7L/ 6 UTL 4X4 4 Dr J8&L481&2 2.4L/ 4 UTL 4X4 4 Dr J8&L48K&2 3.7L/ 6 LIBERTY LIMITED UTL 4X2 4 Dr J4&K58K&2 3.7L/ 6 UTL 4X2 4 Dr J8&K58K&2 3.7L/ 6 UTL 4X4 4 Dr J4&L58K&2 3.7L/ 6 UTL 4X4 4 Dr J8&L58K&2 3.7L/ 6 LEXUS IS 300 SED 4 Dr JTHBD192&2 3.0L/ 6 IS 300 SPORTCROSS WAG 4 Dr JTHED192&2 3.0L/ 6 GS 430 CONV 2 Dr h JTHFN48Y&2 4.3L/ 8 Rating Price Model & Symbol New Engine Body Type & Code Sym VIN Disp/Cyl LINCOLN BLACKWOOD UTL 4X2 4 Dr LM&W05A&2 5.4L/ 8 UTL 4X2 4 Dr LM&W05R&2 5.4L/ 8 MAZDA PROTEGE 5 WAG 4 Dr JM1BJ245&2 2.0L/ 4 WAG 4 Dr JM1BJ246&2 2.0L/ 4 MERCURY MOUNTAINEER UTL 4X2 4 Dr M2&U66E&2 4.0L/ 6 UTL 4X2 4 Dr M2&U66K&2 4.0L/ 6 UTL 4X2 4 Dr M2&U66W&2 4.6L/ 8 MOUNTAINEER AWD UTL 4X4 4 Dr M2&U86E&2 4.0L/ 6 UTL 4X4 4 Dr M2&U86K&2 4.0L/ 6 UTL 4X4 4 Dr M2&U86W&2 4.6L/ 8 MITSUBISHI LANCER ES SED 4 Dr 08 8 JA3AJ26E&2 2.0L/ 4 LANCER LS SED 4 Dr JA3AJ36E&2 2.0L/ 4 LANCER OZ RALLY EDITION SED 4 Dr JA3AJ86E&2 2.0L/ 4 OLDSMOBILE BRAVADA UTL 4X2 4 Dr GH&S13S&2 4.2L/ 6 BRAVADA AWD UTL 4X4 4 Dr GH&T13S&2 4.2L/ 6 PONTIAC FIREBIRD CONV 2 Dr G2FS32K&2 3.8L/ 6 HCHBK 2 Dr G2FS22K&2 3.8L/ 6 FIREBIRD FORMULA/TRANS AM/RAM AIR CONV 2 Dr h G2FV32G&2 5.7L/ 8 HCHBK 2 Dr h G2FV22G&2 5.7L/ 8 Use the rating symbol to determine physical damage base rates. EFFECTIVE JANUARY 29, 2002 SI TEXAS See notation on Page 1 of the Symbol manual regarding ISO s assertion of a copyright and proprietary interest in the Symbols.

23 TEXAS AUTOMOBILE INSURANCE PLAN ASSOCIATION TEXAS AUTOMOBILE INSURANCE PLAN ASSOCIATION PLAN OF OPERATION Section 1. PURPOSES OF THE ASSOCIATION The purposes of the Association are to: A. provide a means by which automobile bodily injury and property damage liability, personal injury protection and uninsured/underinsured motorist coverage insurance may be assigned to an authorized insurer for persons required by the Texas Motor Vehicle Safety Responsibility Act to show proof of financial responsibility for the future, following the procedures contained in this Plan of Operation; B. establish an efficient, economical procedure for the equitable, nondiscriminatory assignment of risks to authorized insurers; and, C. provide for the efficient, economical, fair and non-discriminatory administration of the Association. The Association has the powers granted to non-profit corporations under the Texas Non-Profit Corporation Act. Section 2. MEMBERSHIP The Texas Automobile Insurance Plan Association is created by Article Insurance Code. As a condition of its authority to write motor vehicle liability insurance in this state, each authorized insurer shall be and remain a member of the Association as long as the Association is in existence. An insurer organized under Chapter 17 of the Insurance Code is not an authorized insurer. Section 3. ELIGIBILITY Eligibility of applicants to the Association will be determined as provided in this Section. A. An applicant is eligible for assignment if the following requirements are met: 1. The applicant is required by the Texas Motor Vehicle Safety- Responsibility Act (Article 6701h, Vernon s Texas Civil Statutes) to show proof of financial responsibility for the future. 2. The applicant and the producer must certify as part of the application that within 60 days prior to the date of application, the applicant has been rejected for automobile insurance by at least two insurers licensed to do business in this state and actually writing automobile liability insurance in this state, including insurers that are not rate regulated. 3. Non-residents of Texas are not eligible unless their motor vehicles are registered or will be registered in the state within fifteen (15) days. Non-residents who are members of the United States military forces are eligible with respect to motor vehicles registered in other states provided such military non-residents are stationed in this state at the time the application is made and are otherwise eligible for insurance under the Plan of Operation. B. An applicant who is otherwise eligible is not entitled to assignment, nor is an insurer required to afford or continue coverage if any person who usually drives the motor vehicle does not hold or is not eligible to obtain a driver s license (other than for lack of insurance) or fails to obtain such license as required by law. Any applicant or insured denied previously for a lack of a valid driver s license may reapply when a license has been obtained or a good faith attempt is being made to obtain a driver s license. C. Any insured who fails to pay the renewal premium quoted by the assigned insurer in accordance with the provisions of Section 13.B.2. of this Plan of Operation may re-apply for assignment if the applicant is otherwise eligible and the application is accompanied by the deposit prescribed in Section 5. D. Any re-application to the Association shall be considered a new application and the applicant shall be assigned to an insurer in accordance with the provisions of Section 16. E. An applicant who meets the preceding eligibility requirements for assignment is eligible even though the applicant: 1. has been offered insurance by an insurer; 2. has obtained physical damage coverage through another insurer; 3. has been denied coverage by only one company group if that company group has more than one company licensed to do business in this state and actually writing automobile insurance in this state; or 4. has been offered coverage by a company in a company group if that company group has two additional companies licensed to do business in this state and actually writing automobile insurance in this state whose rates for the applicant would be less than the rates in the company offering coverage. Section 4. EXTENT OF COVERAGE A. The assigned insurer is required to write a policy for the minimum limits required by the Texas Motor Vehicle Safety Responsibility Act (currently $20,000/$40,000 Bodily Injury and $15,000 Property Damage). B. In addition, the policy shall include the following coverage unless rejected in writing by the applicant: 1. Uninsured/Underinsured Motorists Coverage at minimum limits of liability; 2. Personal Injury Protection Coverage at a limit of $2,500. C. Personal Injury Protection and Uninsured/Underinsured Motorist coverages are available to an applicant only in conjunction with a policy written in accordance with this Plan of Operation affording Bodily Injury and Property Damage coverage. D. All insureds assigned under the Plan of Operation shall be subject to the classifications, rules, rates, rating plans and minimum premiums as prescribed by the Commissioner of Insurance for application to automobile insurance plan insureds, and such premium shall be subject to Section 10. E. All policies, new and renewal, shall be issued for a period of one year. F. If a policy is being issued to comply with Section 1.F.(e) of the Texas Motor Vehicle Safety-Responsibility Act, the insurer will issue a certificate by which it is bound to issue a renewal policy so that the current policy and the commitment for renewal together cover a period of at least two years. In the event this sub-section conflicts with Section 6, this sub-section will control. Section 5. PREMIUM DEPOSIT REQUIREMENTS AND PAYMENT OPTIONS The application for assignment must be submitted to the Association on a prescribed form in duplicate accompanied by the full gross annual premium or a deposit on a gross basis as indicated below. THIRD REPRINTING 1 EFFECTIVE JANUARY 1, 1996 COPYRIGHT - ICT SERVICES, INC

24 INDEX ENDORSEMENT INDEX Title of Endorsement No. Of Endorsement Additional Insured... TE 99 01B Additional Insured Lessor A Additional Insured Lessor (Broad Form Coverage)... TE 20 01A Additional Insured Lessor (Limited Form Coverage)... TE 20 02A Amendatory Endorsement... EL 1 Amendatory Endorsement... MB 1 Amendatory Endorsement... MB 2 Amendatory Endorsement... NR 1A Amendatory Endorsement... NR 2 Amendatory Endorsement... RC 001 Amendatory Endorsement... Sl 1 Amendatory Endorsement... Sl 2 Amendatory Endorsement... Sl 3 Amendatory Endorsement Texas... TE 00 39B Amendatory Endorsement Texas... TE 00 40A Amphibious Automobile or Amphibious Mobile Home Trailer Excluded While Being Launched, Beached, or Used on Water Amphibious Vehicles... TE 20 31A Amusement Devices Mounted on Commercial Autos... TE 23 25A Antique, Collectible or Special Interest Auto...586A Antique, Collectible or Special Interest Auto... TE 20 32B Auto Death Indemnity and Total Disability Coverages Automobile Death Indemnity and Total Disability Coverages... TE 99 81A Auto Medical Payments Insurance... TE 99 03B Boat Trailer Endorsement... 4B-1 Calculation of Premium Terms Longer Than 12 Month Policies... TE 99 00A Cancellation Provision or Coverage Change Endorsement Cancellation Provision or Coverage Change Endorsement... TE 02 02A Changes in Transfer of Rights of Recovery Against Others To Us... TE 20 46A Christian Science Care Endorsement Christian Science Care... TE 99 75A Combined Liability Limits... TE 99 26B Cotton Trailers... TE 23 28A Coverage for Damage To Your Auto Optional and Limited Specified Causes of Loss A Coverage for Damage To Your Auto Specified Causes of Loss...522A Coverage for Sound Receiving and Transmitting Equipment...521A Coverage for Tapes, Records or Other Devices Covered Auto Designation Symbol... TE 99 54A Dealers Driveaway Collision Coverage...TE Deductible Liability Insurance. Personal Auto Policy Deductible Liability Insurance... TE 03 01B Designated of Covered Person or Organization...512A Drive-Away Contractor Named Operator... TE 20 33A Drive-Away Contractors... TE 20 05A Drive Other Car Coverage Broadened Coverage For Named Individuals TE 99 10B Driving Schools (Other Than Public Schools)... TE 20 06A Emergency Use Excluded... TE 20 30A Emergency Vehicles Volunteer Firefighters and Workers Injuries... TE 20 07A Employees As Insureds...TE Errors, Omissions and Interim Binder Automobile Physical Damage Insurance (Lien-holder s Interest Only)... TE 20 36A Exclusion of Equipment, Specially Constructed Vehicles and Vehicles with Permanently Mounted Special Equipment... TE 20 45A Exclusion of Named Driver and Partial Rejection of Coverages A Exclusion of Named Driver and Partial Rejection of Coverages... TE 99 41B Exclusion of Named Driver and Partial Rejection of Coverages Limited B Exclusion of Named Driver and Partial Rejection of Coverages Limited... TE 99 42B Exclusion or Excess Coverage (Hazards Otherwise Insured)... TE 99 40A Experience Modification Endorsement...29B Experience Modification... TE 99 24B Experience Modification Change Endorsement... 29D Experience Modification Change... TE 99 25B False Pretense Coverage...TE Farm Labor Contractors...TE Farm or Ranch Vehicles Trailer Coverage... TE 23 29A Farm Tractors and Farm Tractors Equipment...TE Federal Employees Using Autos in Government Business H EIGHTH REPRINTING (a) EFFECTIVE JANUARY 1, 2000 COPYRIGHT - ICT SERVICES, INC

25 INDEX TEXAS AUTOMOBILE RULES AND RATING MANUAL Title of Endorsement No. Of Endorsement Federal Employees Using Autos in Government Business... TE 99 12A Financial Responsibility Certification A Financial Responsibility Certification (SR-22 Filing)... TE 99 82B Fire, Fire and Theft and Limited Specified Causes of Loss Coverage for Dealers... TE Fire, Fire and Theft, Windstorm, Flood, Riot or Civil Commotion and Limited Specified Causes of Loss Coverages... TE 99 14A Fleet Schedule Liability and Physical Damage... TE 99 76B Foreign Made and Discontinued Makes of Automobiles Limiting Coverage For Damage to Your Auto Foreign Made and Discontinued Makes of Automobile Limiting Physical Damage Coverages... TE 99 35A Form F Uniform Motor Carrier Bodily Injury and Property Damage Liability Insurance Endorsement... TE 23 16A Form F-1 Uniform Commercial Motor Vehicle Bodily Injury and Property Damage Liability Insurance Endorsement... TE 23 30C Garage Locations and Operations Medical Payments Insurance... TE 25 05B Garagekeepers Insurance... TE 99 37B General Change Endorsement... TE 99 04A Governmental Bodies Amendatory Endorsement... TE 99 15A Governmental Units... TE 99 80B Hired Autos Specified As Covered Autos You Own... TE Increased Limits Other Than Designated Driver Increased Limits Other Than Designated Driver... TE 99 43A Individual Named Insured... TE 99 17G Interim Premium Adjustment... TE 99 49A Labor Agent Liability Endorsement... TE 24 05A Leasing or Rental Concerns Contingent Coverage... TE 20 09C Leasing or Rental Concerns Contingent Physical Damage Ins... TE 20 38A Leasing or Rental Concerns Conversion, Embezzlement or Secretion Coverage... TE 20 10A Leasing or Rental Concerns Excess Coverage (owner only)... TE 20 14B Leasing or Rental Concerns Exclusion of Certain Leased Autos... TE 20 11B Leasing or Rental Concerns Rent-It-Here/Leave-lt-There Autos... TE 20 12A Leasing or Rental Concerns Schedule of Limits For Owned Autos... TE 20 13A Limited Specified Causes of Loss Coverage for Dealers... TE Liquefied Petroleum Gas Licensee Motor Vehicle Endorsement Texas Railroad Commission Form... TE 23 26A Loaned Or Rented Trailers... TE 23 19A Locations and Operations Not Covered... TE 25 07A Loss Payable Clause A Loss Payable Clause... TE 99 78A Loss Payable Clause Modified A Loss Payable Clause Modified... TE 20 35A Mexico Coverage Broad A Mexico Coverage Broad... TE 04 08B Mexico Coverage Limited Mexico Coverage Limited... TE 04 06B Mexico Tourist Coverage Limited B Mexico Tourist Coverage Limited... TE 04 07B Miscellaneous Type Vehicle Endorsement C Mobile Equipment... TE 20 15A Mobile Home Trip Collision... TE 20 42A Mobile Homes Contents Coverage... TE Mobile Homes Exclusion of Windstorm, Hurricane, Hail and Flood... TE 20 17A Mobile Homes Federal Flood Disaster Protection Act of TE 20 43A Mobilowners Policy Agreed Value... 4L Mobilowners Policy Amendatory... 4P Mobilowners Policy Amendatory... 4Q Mobilowners Policy Amendment... 4N Mobilowners Policy Amendment of Limits of Liability... 4J Mobilowners Policy Deductible Endorsement... 4H-1 Mobilowners Policy Exclusion of Windstorm, Hurricane, Hail and Flood... 4R-1 Mobilowners Policy Inflation Coverage... 4K Mobilowners Policy Limited Period Collision... 4M-1 Modified Hail Deductible Mobile Home Modified Hail Deductible... TE 20 41A Motor Bus Endorsement Texas Indemnity Form... TE 24 04A Motor Bus Endorsement Texas Department of Transportation Form... TE 24 03B Motorhome Rental Coverage A Moving Vans or Trucks Agent... TE 23 06A Multi-Purpose Equipment... TE Named Driver Collision Coverage... TE Named Non-Owner Coverage Named Operator Government Employees Named Operator Coverage (Any Auto)... TE 99 84A Named Operator Coverage (Non-Owned Auto Only)... TE 99 85A Nuclear Energy Liability Exclusion Endorsement (Broad Form)... IL Occupant Personal Effects Endorsement Mobileowners Policy... 4G EFFECTIVE SEPTEMBER 1, 1998 (b) SEVENTH REPRINTING COPYRIGHT - ICT SERVICES, INC

26 INDEX Title of Endorsement No. of Endorsement Personal Auto Policy Amendatory Endorsement D Personal Auto Policy Extended Non-Owned Coverage for Named Individual A Personal Auto Policy Group Marketing of Auto Insurance Termination Provisions A Personal Auto Policy Policy Change. (All Cover Form) A Personal Auto Policy Texas Automobile Insurance Plan Association Amendment of Termination Provision C Personal Injury Protection Endorsement... TE 04 01C Policy Change... TE 99 77A Pollution Liability Broadened Coverage For Covered Autos... TE Premium Discount Endorsement Texas... 25D Professional Services Not Covered... TE Public Auto Passenger Hazard Excluded... TE 24 09A Public Transportation Autos... TE Recreational Trailers or Motorhomes C Recreational Trailers or Motorhomes Contents Coverage D Registration Plates Not Issued For A Specific Auto... TE 20 27A Reinstatement of Insurance Reinstatement of Insurance... TE 02 38A Rental Reimbursement Personal Auto Policy C Rental Reimbursement Coverage... TE 99 23A Repossessed Autos... TE 20 19A Repossessed Autos Named Operator... TE 20 44B Rolling Stores... TE Rural Electrification Cooperative Endorsement... TE 99 71A Schools (Public) Driver Training Students... TE 20 47A Single Liability Limit Social Service Agencies Volunteers As Insureds... TE Sound Receiving and Transmitting Equipment... TE 99 08C Special Loss Payable and Cancellation Endorsement B Special Loss Payable and Cancellation Endorsement... TE 20 34A Specified Non-Owned Auto... TE 99 86A Split Liability Limits A Split Liability Limits... TE 99 27B State Departments Endorsement... TE 99 72A Supplementary Death Benefit A Supplementary Death Benefit... TE 99 60A Suspension of Insurance Suspension of Insurance... TE 02 40A Tapes And Records Coverage... TE Texas Department of Corrections Endorsement... TE 99 73A Texas Highway Department Endorsement (To comply with Statue Article 6674s-1, Vernon s Tex. Civ. St.)... TE 99 74A Texas Premium Discount... TE 99 79A Towing and Labor Costs Coverage A Trailer Interchange Insurance Fire and Theft Coverages... TE Trip Collision A Truckers Endorsement... TE 23 20D Truckers Hauling Exclusively For One Concern Under Long Term Contract... TE 23 21A Truckers Insurance For Non-Trucking Use... TE Truckers Intermodal Intercharge Uniform Endorsement... TE Uninsured/Underinsured Motorists Coverage Single Limit Uninsured/Underinsured Motorists Coverage Split Limits A Uninsured/Underinsured Motorists Insurance... TE 04 09D Waiver of Subrogation Endorsement Wrong Delivery of Liquid Products... TE NINTH REPRINTING (c) EFFECTIVE DECEMBER 1, 1998 COPYRIGHT - ICT SERVICES, INC

27 510A. TEXAS AUTOMOBILE RULES AND RATING MANUAL 510A. ADDITIONAL INSURED LESSOR Insurance Company SCHEDULE Policy Number Effective Date Expiration Date Named Insured Address Additional Insured (Lessor) Description of your leased auto: Coverages: (a) Single Limit Liability or (b) Bodily Injury Liability Property Damage Liability (Enter X to indicate Damage to Your Auto Coverage provided) Actual Cash Value or $ each accident $ each person $ each accident $ each accident [ ] Collision Loss $ less $ deductible Actual Cash Value or [ ] Other Than Collision Loss $ less $ deductible [ ] Any liability coverage provided by this policy for your leased auto also applies to the lessor named in this endorsement as an additional insured. This insurance is subject to the following additional provisions: 1. We will pay damages for which the lessor becomes legally responsible only if the damages arise out of acts or omissions of: (a) you or any family member, or (b) any other person using your leased auto except the lessor or any employee or agent of the lessor. EFFECTIVE FEBRUARY 1, FIRST REPRINTING COPYRIGHT - ICT SERVICES, INC

28 511A. 2. The lessor is not responsible for paying premiums. 3. The designation of the lessor as an additional insured shall not operate to increase our limits of liability. Any Coverage for Damage to Your Auto provided by this policy for your leased auto is subject to the following additional provisions: 1. Loss or damage under Coverage for Damage to Your Auto shall be paid as interests may appear to you and the lessor shown in this endorsement or as Loss Payee in the Declarations. 2. This insurance covering the interest of the lessor shall become invalid only because of your fraudulent acts or omissions. 3. When we pay the lessor we shall, to the extent of payment, be subrogated to the lessor s rights of recovery. We reserve the right to cancel the policy as permitted by the policy terms. The cancelation shall terminate this agreement as to the lessor s interest. We will give the same advance notice of cancelation to the lessor as we give to the named insured shown in the Declarations. Your leased auto in this endorsement means: 1. an auto, shown in the Declarations or in this endorsement, which you lease for a continuous period of at least six months under a written agreement which requires you to provide primary insurance for the lessor; and 2. any substitute or replacement auto furnished by the lessor named in this endorsement. 511A. EXTENDED NON-OWNED COVERAGE FOR NAMED INDIVIDUAL SCHEDULE Named Individual (Includes Spouse if resident in the same household) Coverage Premium Liability $ Medical Payments $ I. INSURING AGREEMENT. As respects the named individual in this schedule: 1. Coverage for which a premium is shown in the schedule is amended in accordance with this endorsement; and 2. Any portions of policy exclusions do not apply if they are in conflict with coverage provided by this endorsement. A. Liability. We will extend the Liability Coverage of this policy to cover: 1. Liability of the named individual arising out of the operation of a vehicle while it is being used to carry persons or property for a fee. 2. Maintenance or use of any vehicle while the named individual is engaged in any business or occupation except selling, repairing, servicing, storing, parking, (including road testing or delivery) of vehicles designed for use mainly on public highways. 3. Maintenance or use of any vehicle furnished or available for the regular use of the named individual. B. Medical Payments. We will extend the Medical Payments Coverage of this policy to cover bodily injury sustained by the named individual: THIRD REPRINTING 5 EFFECTIVE FEBRUARY 1, 1993 COPYRIGHT - ICT SERVICES, INC EFFECTIVE NOVEMBER 1, 1993

29 512A. TEXAS AUTOMOBILE RULES AND RATING MANUAL II. 1. While occupying, or when struck by, any vehicle which is furnished or available for the regular use of: a. The named individual; or b. A member of the same household as the named individual. 2. While occupying a pickup or van (or trailer used with a pickup or van) when being used in the business or occupation of a covered person. EXCLUSION. This endorsement extends coverage for certain vehicles not owned by the named individual. Coverage under this endorsement does not apply for any accident involving a vehicle, or temporary substitute owned by: 1. The named individual; or 2. A member of the same household as the named individual. 512A. DESIGNATION OF COVERED PERSON OR ORGANIZATION The provisions and exclusions that apply to Liability Coverage also apply to this endorsement. (Enter name and address of designated Covered person or Organization) is a covered person, but only with respect to legal responsibility for acts or omissions of a person for whom Liability Coverage is afforded under this policy. The designated covered person or organization is not required to pay for any premiums stated in or earned from the policy. Any return premium and applicable dividend shall be paid to you. You are authorized to act for the designated covered person or organization in all matters pertaining to this insurance. We will mail the designated covered person or organization notice of any cancelation of this policy. If the cancelation is by us, we will give ten days notice to the designated covered person or organization. The designated covered person or organization will retain any right of recovery as a claimant under this policy FEDERAL EMPLOYEES USING AUTOS IN GOVERNMENT BUSINESS The following are not a covered person under Liability Coverage of the policy: 1. The United States of America or any of its agencies. 2. Any person with respect to bodily injury or property damage resulting from the operation of an auto by that person as an employee of the United States Government if the provisions of Section 2679 of Title 28, United States Code (Federal Tort Claims Act), as amended, require the Attorney General of the United States to defend that person in any civil action or proceeding which may be brought for the bodily injury or property damage. EFFECTIVE FEBRUARY 1, SECOND REPRINTING COPYRIGHT - ICT SERVICES, INC

30 AMPHIBIOUS AUTOMOBILE OR AMPHIBIOUS MOBILE HOME TRAILER EXCLUDED WHILE BEING LAUNCHED, BEACHED, OR USED ON WATER The policy does not apply to any amphibious auto or any amphibious mobile home trailer, including any property contained in or used with any such auto or trailer, while used on, while being launched into or while being beached from water. 515A. EXCLUSION OF NAMED DRIVER AND PARTIAL REJECTION OF COVERAGES WARNING READ THIS ENDORSEMENT CAREFULLY! This acknowledgment and rejection is applicable to all renewals issued by us or any affiliated insurer. However, we must provide a notice with each renewal as follows: This policy contains a named driver exclusion. You agree that none of the insurance coverages afforded by this policy shall apply while (The Excluded Driver) is operating your covered auto or any other motor vehicle. You further agree that this endorsement will also serve as a rejection of Uninsured/Underinsured Motorists Coverage and Personal Injury Protection Coverage while your covered auto or any other motor vehicle is operated by the excluded driver. Acknowledged By (Your Signature) 516B. EXCLUSION OF NAMED DRIVER AND PARTIAL REJECTION OF COVERAGES LIMITED WARNING READ THIS ENDORSEMENT CAREFULLY! This acknowledgment and rejection is applicable to all renewals issued by us or any affiliated insurer. However, we must provide a notice with each renewal as follows: This policy contains a named driver exclusion. You agree that none of the insurance coverages afforded by this policy shall apply while (The Excluded Driver) is operating your covered auto or any other motor vehicle. You further agree this endorsement will also serve as a rejection of Uninsured/Underinsured Motorists Coverage and Personal Injury Protection Coverage while your covered auto or any other motor vehicle is operated by the excluded driver. This endorsement does not apply if you or another licensed driver age 18 or over accompany the excluded driver. Acknowledged By (Your Signature) ORIGINAL PRINTING 7 EFFECTIVE MARCH 18, 1992 COPYRIGHT - ICT SERVICES, INC

31 528A. TEXAS AUTOMOBILE RULES AND RATING MANUAL Loss Payee: 528A. LOSS PAYABLE CLAUSE MODIFIED Loss or damage under Coverage for Damage to Your Auto shall be paid as interest may appear to you and the loss payee shown in the declarations or in this endorsement. This insurance covering the interest of the loss payee shall not become invalid because of your fraudulent acts or omissions, unless the loss results from your conversion, secretion or embezzlement of your covered auto. However, we reserve the right to cancel the policy as permitted by policy terms. Notice of the cancelation mailed to the loss payee at least ten days prior to the date the coverage for the loss payee will end terminates this agreement. The insurance covering the loss payee s interest as specified in this loss payable clause will continue for subsequent policy periods regardless of any policy expiration date shown on the declarations until we mail notice to the loss payee at least ten days prior to the date the coverage for the loss payee will end. If you cancel the policy as permitted by policy terms we agree to mail notice of the cancelation to the loss payee at least ten days prior to the date the coverage for the loss payee will end. In any event, your coverage ends on the date of your cancelation. When we pay the loss payee we shall, to the extent of payment, be subrogated to the loss payee s rights of recovery. 529B. SPECIAL LOSS PAYABLE AND CANCELATION ENDORSEMENT Loss Payee: Loss or damage under Coverage for Damage to Your Auto shall be paid as interests may appear to you and the loss payee shown in the Declarations or in this endorsement. This insurance covering the interest of the loss payee shall not become invalid because of your fraudulent acts or omissions, unless the loss results from your conversion, secretion or embezzlement of your covered auto. However, we may cancel the policy as permitted by policy terms. The cancelation shall terminate this agreement as to the loss payee s interest. When we pay the loss payee we shall, to the extent of payment, be subrogated to the loss payee s rights of recovery. If cancelation or material change reduces or restricts the insurance afforded by the policy, we will mail the loss payee notice of cancelation or reduction in coverage ten days before the policy is cancelled or coverage reduced. Such cancelation notice shall terminate this endorsement as to the loss payee s interest. The loss payee named in this endorsement is responsible for the payment of premiums on this policy. Return premiums shall be paid as interests may appear to you and the loss payee. This policy insures the interest of the loss payee in your covered auto of financed or refinanced by the loss payee for retail purchasers, or pledged to secure loans made to borrowers, with respect to applicable coverages in the Declarations of the policy. Loss Payee: 530A. LOSS PAYABLE CLAUSE Loss or damage under Coverage for Damage to Your Auto shall be paid as interest may appear to you and the loss payee shown in the declarations or in this endorsement. This insurance covering the interest of the loss payee shall not become invalid because of your fraudulent acts or omissions, unless the loss results from your conversion, secretion or embezzlement of your covered auto. However, we reserve the right to cancel the policy as permitted by policy terms and the cancelation shall terminate this agreement as to the loss payee s interest. We will give the same advance notice of cancelation to the loss payee as we give to the named insured shown in the declarations. When we pay the loss payee we shall, to the extent of payment, be subrogated to the loss payee s rights of recovery. EFFECTIVE FEBRUARY 1, FIRST REPRINTING COPYRIGHT - ICT SERVICES, INC

32 545.A TEXAS AUTOMOBILE RULES AND RATING MANUAL current policy period. Failure to pay the required renewal or continuation premium when due shall mean that you have not accepted our offer. Other Termination Provisions. 1. Proof of mailing shall be sufficient proof of notice. We may deliver any notice instead of mailing it. 2. If this policy is canceled, you may be entitled to a premium refund. If so, we will send you the refund promptly. The premium refund, if any, will be computed according to the Cancelation Rule of the Texas Department of Insurance. However, making or offering to make the refund is not a condition of cancelation. 3. The effective date of cancelation stated in the notice shall become the end of the policy period. 545.A GROUP MARKETING OF AUTO INSURANCE TERMINATION PROVISIONS This policy is issued under a Group Marketing Plan authorized under Article 21.77, Texas Insurance Code. The policy General Provision titled Termination does not apply and is replaced by the following: 1. This policy may be canceled during the policy periods as follows: a. The named insured shown in the Declarations may cancel by: (1) returning this policy to us; or (2) giving us and the group administrator advance written notice of the date cancelation is to take effect. b. We may cancel this policy only if: (1) you fail to discharge when due any of your obligations in payment of premium; or (2) the insurance for the entire group is canceled. (3) you submit a fraudulent claim. 2. If we cancel the policy for the reasons stated above, we will mail at least 10 days notice to the named insured shown in the Declarations at the address shown in this policy. A copy of the notice will also be mailed to the group administrator. 3. We may not cancel or non-renew a policy based solely on the fact that you are an elected official. 4. We may decide to cancel or not to renew the policies of the entire group. If so, we will mail notice to the group administrator and the named insured at least 30 days before the termination date. 5. Other Termination Provisions. a. We may deliver any notice instead of mailing it. Proof of mailing of any notice shall be sufficient proof of notice. b. If this policy is canceled, you may be entitled to a premium refund. If so, we will send you the refund promptly. The premium refund, if any, will be computed according to the Cancelation Rule of the Texas Department of Insurance. However, making or offering to make the refund is not a condition of cancelation. c. The effective date of cancelation stated in the notice shall become the end of the policy period. 550A. MEXICO COVERAGE BROAD WARNING READ THIS ENDORSEMENT CAREFULLY! Auto accidents in Mexico are subject to the laws of Mexico only NOT the laws of the United States of America. Unlike the United States, the Republic of Mexico considers an auto accident a CRIMINAL OFFENSE as well as a civil matter. In some cases, the coverage under this endorsement may NOT be recognized by Mexican authorities and the company may not be allowed to implement this coverage at all in Mexico. You should consider purchasing auto coverage from a licensed Mexican Insurance Company before driving into Mexico. This endorsement does not apply to trips into Mexico that exceed 25 miles from the boundary of the United States of America. EFFECTIVE MARCH 18, ORIGINAL PRINTING COPYRIGHT - ICT SERVICES, INC

33 578. TEXAS AUTOMOBILE RULES AND RATING MANUAL 578. NAMED NON-OWNER COVERAGE SCHEDULE Named Non-Owner Special Vehicle Coverage as provided by this endorsement applies if a premium charge is shown below. Premium $ I. DEFINITIONS The Definitions Section is amended as follows: A. The definition of your covered auto is replaced by the following: Your covered auto means a motor vehicle designed for use mainly on public roads or a trailer of any type on the date you become the owner: This provision applies only if you: a. acquire the vehicle during the policy period; and b. ask us to insure it within 30 days after you become the owner. The coverages will only apply for 30 days after you become the owner. Permanent coverage must be afforded under a separate policy. This insurance does not apply if other insurance applies with respect to newly acquired autos or beyond the expiration date of this policy. EFFECTIVE SEPTEMBER 1, SECOND REPRINTING COPYRIGHT - ICT SERVICES, INC

34 578. II. B. The definition of mobile equipment is added: This insurance applies to liability for your use of any non-owned land vehicle (including any machinery or apparatus attached thereto), whether or not self-propelled, (1) not subject to motor vehicle registration, or (2) maintained for use exclusively on premises owned by or rented to the owner of such vehicle including the ways immediately adjoining, or (3) designed for use principally off public roads, or (4) designed or maintained for the sole purpose of affording mobility to equipment of the following types forming an integral part of or permanently attached to such vehicle: power cranes, shovels, loaders, diggers and drills; concrete mixers (other than the mix-in-transit type); graders, scrapers, rollers and other road construction or repair equipment; air compressors, pumps and generators, including spraying, welding and building cleaning equipment; and geophysical exploration and well servicing equipment which is an auto and not mobile equipment. However, this insurance does not apply to liability arising out of the operation of any air compressors, sand blasting or other building surface cleaning machinery, vacuum cleaners (not street cleaners), welding apparatus, power cranes, ditch or trench diggers, loaders, drills, shovels, geophysical exploration equipment, oil well servicing equipment, tree or other spraying equipment and well drilling machinery attached to, mounted on or forming a part of such vehicle, whether such liability occurs in the course of such operation or subsequent thereto. LIABILITY COVERAGE Part A is amended as follows: A. The definition of covered person is replaced by the following: Covered person means: 1. You for the maintenance or use of any auto or trailer or mobile equipment. 2. For your covered auto, 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. 3. For any auto or trailer or mobile equipment, other than your covered auto, any person or organization but only with respect to legal responsibility for acts or omissions of you for whom coverage is afforded under this Part. This provision applies only if the person or organization does not own or hire the auto or trailer or mobile equipment. B. The Exclusions Section is amended as follows: 1. Exclusion A.3. is replaced by the following: For damage to property: a. rented to; b. used by; or c. in the care of; that person. This exclusion does not apply to damage to a residence or private garage caused by an auto which is insured under this endorsement. 2. Exclusion A.5. is deleted. 3. Exclusions A.6. and A.7. are replaced by the following: Maintaining or using any vehicle in the business or occupation of that person. This exclusion does not apply to an auto operated or occupied by you. 4. Exclusion B.1. is deleted. 5. Exclusion B.2. is replaced by the following: Any vehicle, other than your covered auto, which is owned by you. 6. Exclusion B.3. is replaced by the following: Any vehicle, other than your covered auto, which is owned by any family member. However, this exclusion does not apply to your maintenance or use of any vehicle which is owned by a family member. ORIGINAL PRINTING 29 EFFECTIVE MARCH 18, 1992 COPYRIGHT - ICT SERVICES, INC

35 578. TEXAS AUTOMOBILE RULES AND RATING MANUAL C. The Out of State Coverage provision is replaced by the following: OUT OF STATE COVERAGE If an auto accident to which this policy applies occurs in any state or province other than where you reside, we will interpret your policy for that accident as follows: If the state or province has: 1. A financial responsibility or similar law specifying limits of liability for bodily injury or property damage higher than the limit shown in the Schedule or in the Declarations, your policy will provide the higher specified limit. 2. A compulsory insurance or similar law requiring a nonresident to maintain insurance whenever the nonresident uses a vehicle in that state or province, your policy will provide at least the required minimum amounts and types of coverage. No one will be entitled to duplicate payments for the same elements of loss. III. MEDICAL PAYMENTS COVERAGE Part B1 is amended as follows: A. The definition of covered person is replaced by the following: Covered person means: 1. You: a. while occupying; or b. when struck by; a motor vehicle designed for use mainly on public roads or a trailer of any type. 2. Any other person while occupying your covered auto. B. The Exclusions Section is amended as follows: 1. Exclusion 1. and 2. do not apply. 2. Exclusion 5. is replaced by the following: Sustained while occupying or, when struck by, any vehicle (other than your covered auto) which is owned by you. 3. Exclusion 6. does not apply. 4. Exclusion 8. is replaced by the following: Sustained while occupying any vehicle used in the business or occupation of that person. This exclusion does not apply to a vehicle operated or occupied by you. IV. UNINSURED/UNDERINSURED MOTORISTS COVERAGE Part C is amended as follows: A. The definition of covered person is replaced by the following: Covered person means: 1. You. 2. Any other person occupying your covered auto. 3. Any person for damages that person is entitled to recover because of bodily injury to which the coverage applies sustained by a person described in 1. or 2. above. EFFECTIVE MARCH 18, ORIGINAL PRINTING COPYRIGHT - ICT SERVICES, INC

36 578. B. The definition of property damage is replaced by the following: Property damage means injury to, destruction of or loss of use of: 1. Your covered auto, not including a temporary substitute auto. 2. Any property owned by a person listed in 1. or 2. of covered person while contained in your covered auto. 3. Any property owned by you while contained in any auto not owned, but being operated, by you. C. The definition of uninsured motor vehicle is replaced by the following: Uninsured motor vehicle means a land motor vehicle or trailer of any type: 1. To which no liability bond or policy applies at the time of the accident. 2. Which is a hit and run vehicle whose operator or owner cannot be identified and which hits: a. you; b. a vehicle which you are occupying; or c. your covered auto. 3. To which a liability bond or policy applies at the time of the accident but the bonding or insuring company: a. denies coverage; or b. is or becomes insolvent; 4. Which is an underinsured motor vehicle. An underinsured motor vehicle is one to which a liability bond or policy applies but its limit of liability: a. is less than the limit of liability for this coverage; or b. has been reduced by payment of claims to an amount less than the limit of liability for this coverage. However, uninsured motor vehicle does not include any vehicle or equipment: 1. Owned by or furnished or available for the regular use of you or any family member. 2. Owned or operated by a self-insurer under any applicable motor vehicle law. 3. Owned by any governmental body unless: a. the operator of the vehicle is uninsured; and b. there is no statute imposing liability for damage because of bodily injury or property damage on the governmental body for an amount not less than the limit of liability for this coverage. 4. Operated on rails or crawler treads. 5. Designed mainly for use off public roads while not on public roads. 6. While located for use as a residence or premises. ORIGINAL PRINTING 31 EFFECTIVE MARCH 18, 1992 COPYRIGHT - ICT SERVICES, INC

37 579. TEXAS AUTOMOBILE RULES AND RATING MANUAL 579. NAMED OPERATOR GOVERNMENT EMPLOYEES SCHEDULE Named Non-Owner Special Vehicle Coverage as provided by this endorsement applies if a premium charge is shown below. Premium $ I. DEFINITIONS The Definitions Section is amended as follows: A. The definition of you and your are replaced by the following: You and your refers to the Named Insured shown in the Declarations who is an employee or officer of the federal, a state or a municipal government or any political subdivision. B. The definition of your covered auto is replaced by the following: Your covered auto means any non-owned auto of the following type while being operated or occupied by you: a. a private passenger auto; or b. pickup, panel truck or van; or c. a commercial truck; or d. any trailer. C. The definition of non-owned auto is added: Non-owned auto means an auto owned by or in the care, custody or control of the federal, a state or a municipal government or any political subdivision which is not owned by you or any family member. D. The definition of mobile equipment is added: This insurance applies to liability for your use of any non-owned land vehicle (including any machinery or apparatus attached thereto), whether or not self-propelled, (1) not subject to motor vehicle registration, or (2) maintained for use exclusively on premises owned by or rented to the owner of such vehicle including the ways immediately adjoining, or (3) designed for use principally off public roads, or (4) designed or maintained for the sole purpose of affording mobility to equipment of the following types forming an integral part of or permanently attached to such vehicle: power cranes, shovels, loaders, diggers and drills; concrete mixers (other than the mix-in-transit type); graders, scrapers, rollers and other road construction or repair equipment; air compressors, pumps and generators, including spraying, welding and building cleaning equipment; and geophysical exploration and well servicing equipment which is an auto and not mobile equipment. However, this insurance does not apply to liability arising out of the operation of any air compressors, sand blasting or other building surface cleaning machinery, vacuum cleaners (not street cleaners), welding apparatus, power cranes, ditch or trench diggers, loaders, drills, shovels, geophysical exploration equipment, oil well servicing equipment, tree or other spraying equipment and well drilling machinery attached to, mounted on or forming a part of such vehicle, whether such liability occurs in the course of such operation or subsequent thereto. II. LIABILITY COVERAGE Part A is amended as follows: A. The definition of covered person is replaced by the following: Covered person means: You for the maintenance or use of your covered auto or mobile equipment. B. The Exclusions Section is amended as follows: 1. Exclusion A.3. is replaced by the following: EFFECTIVE MARCH 18, ORIGINAL PRINTING COPYRIGHT - ICT SERVICES, INC

38 579. III. For damage to property: a. rented to; b. used by; or c. in the care of; that person. This exclusion does not apply to damage to a residence or private garage caused by an auto which is insured under this endorsement. 2. Exclusions A.6. and A.7. are replaced by the following: Maintaining or using any vehicle in the business or occupation of that person. This exclusion does not apply to an auto operated or occupied by you. 3. Exclusion B.1. does not apply. 4. Exclusion B.2. is replaced by the following: Any vehicle, other than your covered auto, which is owned by you. 5. Exclusion B.3. is replaced by the following: Any vehicle, other than your covered auto, which is owned by any family member. However, this exclusion does not apply to your maintenance or use of any vehicle which is owned by a family member. C. The Out of State Coverage provision is replaced by the following: OUT OF STATE COVERAGE If an auto accident to which this policy applies occurs in any state or province other than where you reside, we will interpret your policy for that accident as follows: If the state or province has: 1. A financial responsibility or similar law specifying limits of liability for bodily injury or property damage higher than the limit shown in the Schedule or in the Declarations, your policy will provide the higher specified limit. 2. A compulsory insurance or similar law requiring a nonresident to maintain insurance whenever the nonresident uses a vehicle in that state or province, your policy will provide at least the required minimum amounts and types of coverage. No one will be entitled to duplicate payments for the same elements of loss. MEDICAL PAYMENTS COVERAGE Part B1. is amended as follows: IV. A. The definition of covered person is replaced by the following: Covered person means you while occupying your covered auto or mobile equipment. B. The Exclusions Section is amended as follows: 1. Exclusion 1. does not apply. 2. Exclusion 5. is replaced by the following: Sustained while occupying any vehicle (other than your covered auto) which is owned by you. 3. Exclusion 6. does not apply. 4. Exclusion 8. does not apply. UNINSURED/UNDERINSURED MOTORISTS COVERAGE Part C is amended as follows: A. The definition of covered person is replaced by the following: Covered person means: ORIGINAL PRINTING 33 EFFECTIVE MARCH 18, 1992 COPYRIGHT - ICT SERVICES, INC

39 583C. TEXAS AUTOMOBILE RULES AND RATING MANUAL 1. You while occupying your covered auto. 2. Any person for damages that person is entitled to recover because of bodily injury to which the coverage applies sustained by a person described in 1. above. B. The definition of property damage is replaced by the following: Property damage means injury to, destruction of or loss of use of any property owned by you while contained in your covered auto. C. The definition of uninsured motor vehicle is replaced by the following: Uninsured motor vehicle means a land motor vehicle or trailer of any type: 1. To which no liability bond or policy applies at the time of the accident. 2. Which is a hit and run vehicle whose operator or owner cannot be identified and which hits: a. you; b. a vehicle which you are occupying; or c. your covered auto. 3. To which a liability bond or policy applies at the time of the accident but the bonding or insuring company: a. denies coverage; or b. is or becomes insolvent; 4. Which is an underinsured motor vehicle. An underinsured motor vehicle is one to which a liability bond or policy applies but its limit of liability: a. is less than the limit of liability for this coverage; or b. has been reduced by payment of claims to an amount less than the limit of liability for this coverage. However, uninsured motor vehicle does not include any vehicle or equipment: 1. Owned by or furnished or available for the regular use of you or any family member. 2. Owned or operated by a self-insurer under any applicable motor vehicle law. 3. Owned by any governmental body unless: a. the operator of the vehicle is uninsured; and b. there is no statute imposing liability for damage because of bodily injury or property damage on the governmental body for an amount not less than the limit of liability for this coverage. 4. Operated on rails or crawler treads. 5. Designed mainly for use off public roads while not on public roads. 6. While located for use as a residence or premises. 583C. MISCELLANEOUS TYPE VEHICLE ENDORSEMENT WARNING IF THIS POLICY PROVIDES COVERAGE FOR A MOTORHOME THAT YOU OWN: IT DOES NOT PROVIDE LIABILITY COVERAGE, MEDICAL PAYMENTS COVERAGE, OR COVERAGE FOR DAMAGE TO YOUR AUTO WHILE THE MOTORHOME IS RENTED OR LEASED TO ANY ORGANIZATION, OR ANY PERSON OTHER THAN YOU OR A FAMILY MEMBER. The policy is amended in the following respects: EFFECTIVE FEBRUARY 1, FIRST REPRINTING COPYRIGHT - ICT SERVICES, INC

40 583C. I. DEFINITIONS For the purpose of the coverage provided by this endorsement: Miscellaneous Type Vehicle means golfmobiles, pickup trucks used solely to transport camper bodies, motorhomes, motorcycles, motorscooters, motorbikes, all terrain vehicles and similar motor vehicles. The following definitions are amended as shown below: Trailer means a vehicle designed to be pulled by a: 1. private passenger auto; 2. pickup, panel truck or van; or 3. any miscellaneous type vehicle shown in the Declarations. It also means a farm wagon or farm implement while towed by a vehicle listed above. Your covered auto means: 1. any vehicle shown in the Declarations; 2. any of the following types of vehicles on the date you became the owner: a. a private passenger auto; b. a pickup, panel truck or van with a G.V.W. of 10,000 Ibs. or less not used for the delivery or transportation of goods, materials or supplies other than samples; unless, (1) the delivery of goods, materials or supplies is not the primary usage of the vehicle, (2) used for farming or ranching. c. a miscellaneous type vehicle of the same type or kind as that shown in the Declarations. This provision applies only if you: a. acquire the vehicle during the policy period; and b. notify us within 30 days after you become the owner. If the vehicle you acquire replaces one shown in the Declarations, it will have the same coverage as the vehicle it replaced. You must notify us of a replacement vehicle within 30 days only if you wish to add or continue Coverage for Damage to Your Auto. If the vehicle you acquire is in addition to any shown in the Declarations, it will have the broadest coverage we now provide for any vehicle shown in the Declarations. 3. Any trailer you own. 4. Any miscellaneous type vehicle (of the same type as that shown in the declarations) or trailer you do not own while used as a temporary substitute for any other vehicle described in this definition which is out of normal use because of its a. breakdown; b. repair; c. servicing; d. loss; or e. destruction. II. PART A LIABILITY COVERAGE Section A., Exclusions 3. and 7. are amended to read as follows: A. We do not provide Liability Coverage for any person: 3. For damage to property: a. rented to; b. used by; or c. in the care of; FIRST REPRINTING 35 EFFECTIVE FEBRUARY 1, 1995 COPYRIGHT - ICT SERVICES, INC

41 583C. TEXAS AUTOMOBILE RULES AND RATING MANUAL that person. This exclusion does not apply to damages to: a. a residence or private garage; or b. any of the following type vehicles not owned by or furnished or available for the regular use of you or any family member: (1) private passenger autos; (2) trailers; (3) pickups, panel trucks or vans; or (4) any miscellaneous type vehicle of the same type shown in the Declarations. 7. Maintaining or using any vehicle while that person is employed or otherwise engaged in any business or occupation not described in Exclusion 6. This exclusion does not apply to the maintenance or use of a: a. private passenger auto; b. pickup, panel truck or van that you own; c. any miscellaneous type vehicle of the same type shown in the Declarations; d. trailer used with a vehicle described in a., b. or c. above. Exclusion B.1. is replaced by the following: Any motorized vehicle having less than four wheels. However, this exclusion does not apply to motorized vehicles having less than four wheels if it is insured for Liability coverage under this endorsement. Exclusion B.4. is added to read as follows: 4. Any motorhome which is your covered auto while rented or leased to any organization, or any person other than you or a family member. III. PART B1 MEDICAL PAYMENTS Exclusion 1. of Part B. is replaced by the following: Sustained while occupying any motorized vehicle having less than four wheels. However, this exclusion does not apply to a motorized vehicle having less than four wheels if it is insured for Medical Payments Coverage under this endorsement. Exclusion 8. is amended to read as follows: 8. Sustained while occupying a vehicle when it is being used in the business or occupation of a covered person. This exclusion does not apply to bodily injury sustained while occupying a: a. private passenger auto; b. vehicle of any other type which is your covered auto; or c. trailer used with a vehicle described in a. or b. above. Exclusion 11. is added to read as follows: IV. 11. Sustained while occupying any motorhome which is your covered auto while it is rented or leased to any organization, or any person. This exclusion does not apply to: a. You or any family member. b. Any other person while occupying your covered auto during your or a family member s operation of the auto. PART B2 PERSONAL INJURY PROTECTION COVERAGE Add Exclusion While any motorhome which is your covered auto is rented or leased to any organization, or any person. EFFECTIVE FEBRUARY 1, FIRST REPRINTING COPYRIGHT - ICT SERVICES, INC

42 585A. This exclusion does not apply to: a. You or any family member. b. Any other person while occupying your covered auto during your or a family member s operation of the auto. V. PART C UNINSURED/UNDERINSURED MOTORISTS COVERAGE Add Exclusions 7. and Sustained while occupying any motorhome which is your covered auto while it is rented or leased to any organization, or any person. This exclusion does not apply to: a. You or any family member. b. Any other person while occupying your covered auto during your or a family member s operation of the auto. 8. We do not provide Uninsured/Underinsured Motorists Coverage for Property Damage: Occurring while your motorhome is rented or leased to any organization, or any person. This exclusion does not apply when you or any family member is operating the auto. Vl. PART D. COVERAGE FOR DAMAGE TO YOUR AUTO - is amended as follows: Exclusion 8. is amended to read: 8. When in or upon any motorhome or trailer, loss to: a. TV antennas; b. awnings or cabanas; or c. equipment designed to create additional living facilities. Add Exclusions 12. and Loss to any motorhome or its covered property which occurs while the motorhome is rented or leased to any organization, or any person other than you. 13. Loss to any motorhome or its covered personal property due to fraudulent acquisition by any person or organization which occurs while the motorhome is: a. rented to; b. used by; or c. in the care of; that person or organization. 585A. MOTORHOME RENTAL COVERAGE The provisions and exclusions that apply to Liability Coverage, Medical Payments Coverage and Coverage For Damage To Your Auto also apply to this endorsement except as changed by this endorsement as reflected by a specific premium charge in the Schedule below. The coverages which you have purchased for your motorhome which are specified in the Declarations of this policy are extended in the following respect: FIRST REPRINTING 37 EFFECTIVE FEBRUARY 1, 1995 COPYRIGHT - ICT SERVICES, INC

43 ADDITIONAL INSURED LESSOR (BROAD FORM COVERAGE) TE 20 01A (Ed. Effective 3/92) This endorsement modifies insurance provided under the following: Insurance Company Policy Number Effective Date Named Insured Address Additional Insured (Lessor) Designation or Description of Leased Autos BUSINESS AUTO COVERAGE FORM GARAGE COVERAGE FORM TRUCKERS COVERAGE FORM SCHEDULE Expiration Date Coverages Limit of Insurance Premium Combined Liability $ Each Accident $ Bodily Injury $ Each Person $ $ Each Accident $ Property Damage $ Each Accident $ Enter Actual Cash Value or Deductible Coverages Stated Amount Amount Comprehensive $ $ For Each Covered Auto Collision $ $ For Each Covered Auto Specified Causes of Loss $ $ For Each Covered Auto Limited Specified Causes of Loss $ $ For Each Covered Auto A. Any leased auto designated or described in this Schedule or in the Declarations will be considered a covered auto you own and not a covered auto you hire or borrow. For a covered auto that is a leased auto WHO IS AN INSURED is changed to include as an insured the lessor named in the Schedule or in the Declarations. B. LOSS PAYABLE CLAUSE 1. We will pay you and the lessor named in this endorsement for loss to a leased auto, as interest may appear. 2. The insurance covers the interest of the lessor unless the loss results from fraudulent acts or omissions on your part. 3. If we make any payment to the lessor, we will obtain his rights against any other party. C. CANCELLATION 1. If we cancel the policy, we will mail notice to the lessor in accordance with CANCELLATION Common Policy Condition. 2. If you cancel the policy, we will mail notice to the lessor. 3. Cancellation ends this agreement. D. The lessor is not liable for payment of your premiums. E. ADDITIONAL DEFINITION The following is added to the DEFINITIONS Section: Leased auto means an auto leased to you for one year or more, including any substitute or replacement, under a leasing agreement which requires you to provide direct primary insurance for the lessor. ORIGINAL PRINTING 89 EFFECTIVE MARCH 18, 1992 Copyright - ICT Services, Inc

44 This endorsement modifies insurance provided under the following: ADDITIONAL INSURED LESSOR (LIMITED FORM COVERAGE) BUSINESS AUTO COVERAGE FORM GARAGE COVERAGE FORM TRUCKERS COVERAGE FORM TE 20 02A (Ed. Effective 3/92) Insurance Company Policy Number Effective Date Named Insured Address Additional Insured (Lessor) Designation or Description of Leased Autos SCHEDULE Expiration Date Coverages Limit of Insurance Combined Liability $ Each Accident Bodily Injury $ Each Person $ Each Accident Property Damage $ Each Accident Enter Actual Cash Value or Deductible Coverages Stated Amount Amount Comprehensive $ $ For Each Covered Auto Collision $ $ For Each Covered Auto Specified Causes of Loss $ $ For Each Covered Auto Limited Specified Causes of Loss $ $ For Each Covered Auto A. Any leased auto designated or described in this Schedule or in the Declarations will be considered a covered auto you own and not a covered auto you hire or borrow. For a covered auto that is a leased auto WHO IS AN INSURED is changed to include as an insured the lessor named in the Schedule or in the Declarations. However, the lessor is an insured only for bodily injury or property damage resulting from the acts or omissions of: 1. You. 2. Any of your employees or agents. 3. Any person, except the lessor or any employee or agent of the lessor, operating a leased auto with the permission of any of the above. B. LOSS PAYABLE CLAUSE 1. We will pay you and the lessor named in this endorsement for loss to a leased auto, as interest may appear. 2. The insurance covers the interest of the lessor unless the loss results from fraudulent acts or omissions on your part. 3. If we make any payment to the lessor, we will obtain his rights against any other party. C. CANCELLATION 1. If we cancel the policy, we will mail notice to the lessor in accordance with CANCELLATION Common Policy Condition. 2. If you cancel the policy, we will mail notice to the lessor. 3. Cancellation ends this agreement. D. The lessor is not liable for payment of your premiums. E. ADDITIONAL DEFINITION The following is added to the DEFINITIONS Section: Leased auto means an auto leased to you for one year or more, including any substitute or replacement, under a leasing agreement which requires you to provide direct primary insurance for the lessor. ORIGINAL PRINTING 89b EFFECTIVE MARCH 18, 1992 Copyright - ICT Services, Inc

45 TE 20 07A (Ed. Effective 3/92) EMERGENCY VEHICLES VOLUNTEER FIREFIGHTERS AND WORKERS INJURIES This endorsement modifies insurance provided under the following: LIABILITY COVERAGE is changed by adding the following exclusions: BUSINESS AUTO COVERAGE FORM This insurance does not apply to: A. Bodily Injury to any volunteer firefighter or other volunteer worker of the insured if sustained while such person is using or maintaining a covered auto or is otherwise engaged in other volunteer firefighting, rescue squad or ambulance corps operations of the insured. B. Bodily Injury to any fellow volunteer firefighter or other volunteer worker of the insured if sustained in the course of volunteer firefighting, rescue squad or ambulance corps operations. TE (Ed. Effective 3/92) FARM TRACTORS AND FARM TRACTORS EQUIPMENT This endorsement modifies insurance provided under the following: BUSINESS AUTO COVERAGE FORM PHYSICAL DAMAGE COVERAGE for a covered auto which is either farm equipment or a farm tractor is changed by adding the following exclusions: This insurance does not apply to: A. Loss to stationary equipment which can be powered by the covered auto. B. Loss to any equipment which can be transported by the covered auto unless it is furnished by the manufacturer as part of the covered auto s delivered price or is described in the policy as a covered auto. TE 20 09C (Ed. Effective 3/92) LEASING OR RENTAL CONCERNS CONTINGENT COVERAGE This endorsement modifies insurance provided under the following: BUSINESS AUTO COVERAGE FORM GARAGE COVERAGE FORM TRUCKERS COVERAGE FORM A. LIABILITY COVERAGE provided by the policy for a covered auto that is a leased auto applies subject to the following provisions: 1. a. The lessee or rentee has furnished you with a certificate of insurance, a copy of the policy or a copy of the endorsement making you an additional insured on the lessee s or rentee s policy as required by the lease or rental agreement, and b. At the time of an accident, the insurance required by the lease or rental agreement is not collectible. 2. The Limit of Insurance provided by this endorsement for you, your employees or agents is the lesser of the following limits indicated below: a. the liability limit of this policy or in this endorsement, or b. the liability limit required by the lease or rental agreement. ORIGINAL PRINTING 91 EFFECTIVE MARCH 18, 1992 Copyright - ICT Services, Inc

46 This endorsement modifies insurance provided under the following: PROFESSIONAL SERVICES NOT COVERED LIABILITY COVERAGE is changed by adding the following exclusions: BUSINESS AUTO COVERAGE FORM This insurance does not apply to: 1. Bodily injury resulting from the providing or the failure to provide any medical or other professional services. 2. Bodily injury resulting from food or drink furnished with these services. 3. Bodily injury or property damage resulting from the handling of corpses. TE (Ed. Effective 3/92) This endorsement modifies insurance provided under the following: REPOSSESSED AUTOS BUSINESS AUTO COVERAGE FORM TE 20 19A (Ed. Effective 3/92) SCHEDULE Limit Rating Basis Rates Premiums Liability No. Estimated number of covered autos to be repossessed $ $ Minimum Premium $ Coverages Types of autos Interests covered New Autos Used autos Your interest in Your interest Your interest All interests in Demonstrators covered autos only in and the any auto not owned and Service you own financed interest of any by you Vehicles covered autos creditor named or any creditor while as a loss payee in your possession on consignment for sale. Comprehensive G G G G G G Specified Causes of G G G G G G Loss Limited Specified Causes G G G G G G of Loss Fire G G G G G G Fire & Theft G G G G G G Collision G G G G G G EFFECTIVE MARCH 18, b ORIGINAL PRINTING Copyright - ICT Services, Inc

47 This endorsement modifies insurance provided under the following: EMERGENCY USE EXCLUDED TE 20 30A (Ed. Effective 3/92) BUSINESS AUTO COVERAGE FORM SCHEDULE Description of Autos: This insurance with respect to the auto described in the Schedule or in the Declarations as subject to this endorsement does not apply while the auto is used for emergency purposes. This endorsement modifies insurance provided under the following: AMPHIBIOUS VEHICLES BUSINESS AUTO COVERAGE FORM GARAGE COVERAGE FORM TRUCKERS COVERAGE FORM TE 20 31A (Ed. Effective 3/92) This insurance does not apply to any amphibious vehicle of any type (whether or not self-propelled), nor to any property or equipment contained in or used with any such vehicle, while being launched into, used on or beached from water. ANTIQUE, COLLECTIBLE OR SPECIAL INTEREST AUTO This endorsement modifies insurance provided under the following: BUSINESS AUTO COVERAGE FORM GARAGE COVERAGE FORM TRUCKERS COVERAGE FORM TE 20 32B (Ed. Effective 1/94) Description of the covered auto SCHEDULE With respect to the antique, collectible or special interest auto described in the Schedule of this endorsement or in the Declarations: This policy applies only if the auto is used; FIRST REPRINTING 101 EFFECTIVE JANUARY 1, 1994 Copyright - ICT Services, Inc

48 a. primarily for exhibitions, b. club activities, c. parades; or d. other functions of public interest. The auto may be used occasionally for other purposes including operation to and from the place of garaging or servicing. DRIVE-AWAY CONTRACTOR NAMED OPERATOR This endorsement modifies insurance provided under the following: TE 20 33A (Ed. Effective 3/92) BUSINESS AUTO COVERAGE FORM TRUCKERS COVERAGE FORM SCHEDULE Premiums Name of Person Bodily Injury Property Damage Liability Liability $ $ Totals $ $ The insurance applies to the use of any auto being driven by or in behalf of you from its distribution point to its destination subject to the following provisions: A. The paragraph of the WHO IS AN INSURED provision relating to any person working in a business of selling, servicing, repairing or parking autos does not apply. B. Except with respect to you, the insurance does not cover as an insured any person or organization, or any agent, employee or contractor thereof, who is required to carry auto liability insurance under any motor carrier law because of transporting property for you or for others. C. The insurance does not apply to any auto while used for the towing of any trailer. TE 20 34A (Ed. Effective 3/92) SPECIAL LOSS PAYABLE AND CANCELLATION ENDORSEMENT This endorsement modifies insurance provided under the following: BUSINESS AUTO COVERAGE FORM GARAGE COVERAGE FORM TRUCKERS COVERAGE FORM Loss Payee: Loss or damage under PART V. PHYSICAL DAMAGE COVERAGE shall be paid as interest may appear to you and the loss payee shown in the declarations or in this endorsement. This insurance covering the interest of the loss payee shall not become invalid because of your fraudulent acts or omissions, unless the loss results from your conversion, secretion or embezzlement of your covered auto. However, we reserve the right to cancel the policy as permitted by policy terms and the cancellation shall terminate this agreement as to the loss payee s interest. When we pay the loss payee we shall, to the extent of payment, be subrogated to the loss payee s rights of recovery. EFFECTIVE MARCH 18, ORIGINAL PRINTING Copyright - ICT Services, Inc

49 In the event of cancellation or material change which reduces or restricts the insurance afforded by the policy, the company agrees to mail ten (10) days prior written notice of the cancellation or material change to the loss payee. Such cancellation notice shall terminate this endorsement as to the loss payee s interest. The loss payee named in this endorsement is responsible for the payment of premiums on the policy to which this endorsement is attached. Return premiums shall be paid as interest may appear to you and the loss payee. This policy insures the interest of the loss payee in your covered auto financed or refinanced by the loss payee for retail purchasers, or pledged to secure loans made to borrowers, with respect to such and so many of the coverages as are indicated as covered in the declarations of the policy to which this endorsement is attached. This endorsement modifies insurance provided under the following: LOSS PAYABLE CLAUSE MODIFIED BUSINESS AUTO COVERAGE FORM GARAGE COVERAGE FORM TRUCKERS COVERAGE FORM TE 20 35A (Ed. Effective 3/92) Loss Payee: Loss or damage under PHYSICAL DAMAGE COVERAGE shall be paid as interest may appear to you and the loss payee shown in the declarations or in this endorsement. This insurance covering the interest of the loss payee shall not become invalid because of your fraudulent acts or omissions, unless the loss results from your conversion, secretion or embezzlement of your covered auto. However, we reserve the right to cancel the policy as permitted by policy terms. Notice of the cancellation mailed to the loss payee at least ten days prior to the date of the coverage for the loss payee will end terminates this agreement. The insurance covering the loss payee s interest as specified in this loss payable clause will continue for subsequent policy periods regardless of any policy expiration date shown on the declarations until we mail notice to the loss payee at least ten days prior to the date the coverage for the loss payee will end. If you cancel the policy as permitted by policy terms we agree to mail notice of the cancellation to the loss payee at least ten days prior to the date the coverage for the loss payee will end. In any event, your coverage ends on the date of your cancellation. When we pay the loss payee we shall, to the extent of payment, be subrogated to the loss payee s rights of recovery. TE 20 36A (Ed. Effective 3/92) ERRORS, OMISSIONS AND INTERIM BINDER AUTOMOBILE PHYSICAL DAMAGE INSURANCE (Lien-holder s Interest Only) This endorsement modifies insurance provided under the following: BUSINESS AUTO COVERAGE FORM TRUCKERS COVERAGE FORM 1. Subject to its terms, conditions and limitations, this Policy insures your interest in autos financed or refinanced by your retail purchasers, or pledged to secure loans made to borrowers other than auto dealers on cars held for sale, herein called Purchasers and Borrowers, with respect to such and so many of the coverages as are indicated as covered under PHYSICAL DAMAGE COVERAGE is amended accordingly. 2. This insurance applies to autos in which you hove a loss payable interest if, and only if, you are not covered by specific insurance with respect to such and so many of the coverages as are indicated as covered because of errors or accidental omissions in effecting or maintaining such specific insurance at the time its interest accrues, which error or omission results in no specific insurance or in invalid or insufficient insurance on said autos. 3. CONDITIONS The insurance of this Policy is upon the following conditions: (a) Every loan agreement taken by you shall specify the kinds of insurance applicable thereto which it requires. (b) You shall, at the time any loan is consummated, make every reasonable effort to see to it that the property is insured for its benefit by valid and sufficient specific insurance upon each and all autos covered hereby, which insurance shall be of the kinds required ORIGINAL PRINTING 103 EFFECTIVE MARCH 18, 1992 Copyright - ICT Services, Inc

50 TE 23 30C (Ed. Effective 2/96) FORM F-1 UNIFORM COMMERCIAL MOTOR VEHICLE BODILY INJURY AND PROPERTY DAMAGE LIABILITY INSURANCE ENDORSEMENT This endorsement modifies insurance provided under the following: (To comply with Texas Civil Statutes, Art. 6675c) BUSINESS AUTO COVERAGE FORM GARAGE COVERAGE FORM It is agreed that: The certification of the policy, as proof of financial responsibility under the provisions of law or regulations promulgated by the Texas Department of Transportation amends the policy to provide insurance for auto bodily injury and property damage liability in accordance with the provisions of such law or regulations to the extent of the coverage and limits of liability certified, provided only that the insured agrees to reimburse the company for any payment made by the company which it would not have been obligated to make under the terms of this policy except by reason of the obligation assumed in making such certification. This endorsement may not be canceled without cancellation of the policy to which it is attached. Such cancellation may be effected by the company or the insured giving thirty (30) days notice in writing to the Texas Department of Transportation, such thirty (30) days notice to commence to run from the date the notice is actually received in the office of such commission. FIRST REPRINTING 122a EFFECTIVE FEBRUARY 3, 1996 Copyright - ICT Services, Inc

51 PUBLIC TRANSPORTATION AUTOS TE (Ed. Effective 3/92) This endorsement modifies insurance provided under the following: BUSINESS AUTO COVERAGE FORM LIABILITY COVERAGE for a covered auto licensed or used to transport the public is changed as follows: The CARE, CUSTODY OR CONTROL Exclusion does not apply to property damage to property of the insured s passengers while such property is carried by the covered auto. MOTOR BUS ENDORSEMENT TEXAS DEPARTMENT OF TRANSPORTATION FORM This endorsement modifies insurance provided under the following: BUSINESS AUTO COVERAGE FORM Declarations The auto will be used in the State of Texas and principally over the following route: (Specify route where use of auto is authorized) TE 24 03B (Ed. Effective 2/96) It is understood that the policy to which this endorsement is attached is to be offered for filing by the above named insured with the Texas Department of Transportation as a condition precedent to the privilege to operate as a motor bus company within the State of Texas under the authority of a certificate of registration heretofore issued or which may hereafter be issued and in compliance with the provisions of Article 6675c, Texas Civil Statutes and any amendments thereto, and this endorsement is attached for the purpose of making the provisions of the policy conform to the requirements of the said law. Any provision, either in the body of the policy to which this endorsement is attached or any other endorsement thereon or added thereto now or hereafter in conflict with or contrary to the provisions of this endorsement shall be deemed to be canceled hereby. But it is further understood that this endorsement shall not affect the contract or relation existing under the policy to which this endorsement is attached, as between the named insured and the company except as hereinafter stated. The obligations and promises of this endorsement shall be effective only while the autos covered by this policy are being operated within the boundaries of the State of Texas. Coverage granted by this endorsement also applies to motor buses belonging to or under the direction of the named insured and not particularly identified in this policy, while the same are being used by the named insured in the business of carrying passengers for hire within the boundaries of the State of Texas, and coming within the terms of the statute above referred to, and it is agreed that the subject to the policy limits, this endorsement covers the liability imposed by law upon the named insured by reason of any bodily injury to or sickness, disease or death of any persons other than the named insured or his employees, or loss or damage to the property of any persons other than the named insured, occurring during the term of said policy, through such operation of such motor buses within the boundaries of the State of Texas. Limits of Insurance With respect to such insurance as is afforded by this endorsement under the coverage Bodily Injury Liability and subject to the provision of the policy entitled Limits of Insurance applicable to such coverage, the company s liability is limited to: Check appropriate box. Limits of Insurance Coverage each person each accident or Occurrence * Bodily Injury Liability Primary [ ] $ $ Bodily Injury Liability Excess [ ] $ $ * whichever term appears in the provision of the policy entitled Limits of Insurance. SECTION II LIABILITY COVERAGE captioned WHO IS AN INSURED or the provision captioned Insured which appears in this policy is hereby eliminated as respects the coverage provided by this endorsement, and it is agreed that this endorsement does not cover and shall not be construed to cover the liability of any person, firm or corporation other than the named insured. SECOND REPRINTING 123 EFFECTIVE FEBRUARY 3, 1996 Copyright - ICT Services, Inc

52 TE 99 10B (Ed. Effective 3/92) DRIVE OTHER CAR COVERAGE BROADENED COVERAGE FOR NAMED INDIVIDUALS This endorsement modifies insurance provided under the following: BUSINESS AUTO COVERAGE FORM GARAGE COVERAGE FORM TRUCKERS COVERAGE FORM SCHEDULE Name of Auto Physical Damage Individual Liability Med. Pay Comp. Coll. $50 Ded. Limit Premium Limit Premium A. This endorsement changes only those coverages where a premium is shown in this Schedule. B. CHANGES IN LIABILITY COVERAGE 1. Any auto you don t own, hire or borrow is a covered auto for LIABILITY COVERAGE while being used by any individual named in this Schedule or by his or her spouse while a resident of the same household except: a. Any auto owned by that individual or by any member of his or her household. b. Any auto used by that individual or his or her spouse while working in a business of selling, servicing, repairing or parking autos. 2. The following is added to WHO IS AN INSURED: Any individual named in this Schedule and his or her spouse, while resident of the same household, are insureds while using any covered auto described in paragraph B.1. of this endorsement. C. CHANGES IN AUTO MEDICAL PAYMENTS The following is added to WHO IS AN INSURED: Any individual named in this Schedule and his or her family members are insureds while occupying or while a pedestrian when being struck by any auto you don t own except: Any auto owned by that individual or by any family member. D. CHANGES IN PHYSICAL DAMAGE COVERAGE Any private passenger type auto you don t own, hire or borrow is a covered auto while in the care, custody or control of any individual named in this Schedule or his or her spouse while a resident of the same household except: 1. Any auto owned by that individual or by any member of his or her household. 2. Any auto used by that individual or his or her spouse while working in a business of selling, servicing, repairing or parking autos. E. ADDITIONAL DEFINITION The following is added to the DEFINITIONS Section: Family member means a person related to the individual named in this Schedule by blood, marriage or adoption who is a resident of the individual s household, including a ward or foster child. TE 99 12A (Ed. Effective 3/92) FEDERAL EMPLOYEES USING AUTOS IN GOVERNMENT BUSINESS This endorsement modifies insurance provided under the following: BUSINESS AUTO COVERAGE FORM The following are not insureds under the LIABILITY COVERAGE: A. The United States of America or any of its agencies. B. Any U.S. Government employee, including you, for bodily injury or property damage resulting from the operation of an auto, if: 1. The bodily injury or property damage results while the employee is acting as an employee, and EFFECTIVE MARCH 18, ORIGINAL PRINTING Copyright - ICT Services, Inc

53 TE 99 15A (Ed. Effective 3/92) GOVERNMENTAL BODIES AMENDATORY ENDORSEMENT This endorsement modifies insurance provided under the following: BUSINESS AUTO COVERAGE FORM Any land motor vehicle or trailer you own or lease that is designed for travel on public roads is an auto and not mobile equipment if the sole reason for considering it mobile equipment are either or both of the following: A. Such vehicles are not required to be licensed because you are a governmental body. B. Such vehicles are used solely on roads you own. TE (Ed. Effective 3/92) HIRED AUTOS SPECIFIED AS COVERED AUTOS YOU OWN This endorsement modifies insurance provided under the following: BUSINESS AUTO COVERAGE FORM GARAGE COVERAGE FORM TRUCKERS COVERAGE FORM Description of Auto: SCHEDULE A. Any auto described in the Schedule or in the Declarations will be considered a covered auto you own and not a covered auto you hire, borrow or lease under the coverage for which it is a covered auto. B. CHANGES IN LIABILITY COVERAGE The following is added to WHO IS AN INSURED: While any covered auto described in the Schedule or in the Declarations is rented or leased to you and is being used by or for you, its owner or anyone else from whom you rent or lease it is an insured but only for that covered auto. This endorsement modifies insurance provided under the following: INDIVIDUAL NAMED INSURED BUSINESS AUTO COVERAGE FORM GARAGE COVERAGE FORM TRUCKERS COVERAGE FORM If you are an individual, the policy is changed as follows: A. DEFINITIONS 1. The following words are changed for this endorsement: TE 99 17G (Ed. Effective 8/95) The words you and your include your spouse if a resident of the same household except for notice of cancellation. 2. ADDITIONAL DEFINITIONS a. Family member means a person who is a resident of your household and related to you by blood, marriage or adoption. This definition includes a ward or foster child who is a resident of your household, and also includes your spouse even when not a resident of your household during a period of separation in contemplation of divorce. b. A private passenger auto means a four wheel motor vehicle other than a truck type. EFFECTIVE AUGUST 1, FIRST REPRINTING Copyright - ICT Services, Inc

54 c. Utility type auto means vehicles of the pickup body, sedan delivery or van type with a G.V.W. of 10,000 Ibs. or less and multiuse type vehicles not used for the delivery or transportation of goods, materials or supplies other than samples; unless, (1) the delivery of goods, materials or supplies is not the primary usage of the vehicle, or (2) used for farming or ranching. d. Miscellaneous type vehicles include golfmobiles, pickup trucks used solely to transport camper bodies, motorhomes, motorcycles, motorscooters, motorbikes, all terrain vehicles and similar motor vehicles not customarily used for business purposes, other than farming or ranching. B. CHANGES IN LIABILITY COVERAGE 1. Exclusion B.5. does not apply to bodily injury to your or any family member s fellow employees. 2. The following exclusions are added: We do not provide Liability Coverage for you or any family member for bodily injury to you or any family member, except to the extent of the minimum limits of Liability Coverage required by Texas Civil Statutes, Article 6701h, entitled Texas Motor Vehicle Safety-Responsibility Act. We do not provide coverage for loss due to or as a consequence of a seizure of an auto by federal or state law enforcement officers as evidence in a case against you under the Texas Controlled Substances Act or the federal Controlled Substances Act if you are convicted in such case. 3. PERSONAL AUTO COVERAGE While any auto you own of the private passenger, utility or miscellaneous type vehicle is a covered auto under the LIABILITY COVER- AGE: a. The following is added to WHO IS AN INSURED: Family members are insureds for any covered auto you own of the private passenger, utility or miscellaneous type vehicle and any other auto described in paragraph B.3.b. of this endorsement. b. Any auto you don t own is a covered auto while being used by you or by any family member except: (1) Any auto owned by or furnished or available for the regular use of any family members, except while being used by you. (2) Any auto furnished or available for your regular use. (3) Any auto used by you or by any of your family members while working in a business of selling, servicing, repairing, or parking autos. (4) Any auto other than an auto of the private passenger, utility or miscellaneous type vehicle used by you or by any of your family members while working in any other business or occupation. c. The exclusion relating to pollutants, irritants and contaminants and, if forming a part of the policy, the NUCLEAR ENERGY LIABILITY EXCLUSION (BROAD FORM), does not apply to any covered auto of the private passenger, utility or miscellaneous type vehicle. d. Exclusion B.6. does not apply to property damage to any private passenger, utility or miscellaneous type vehicle covered auto you don t own while being used by you or by any family member except: (1) Any auto owned by or furnished or available for the regular use of any family member. (2) Any auto furnished or available for your or any family member s regular use. (3) Any auto which you or any family member uses while working in a business of selling, servicing, repairing or parking autos. e. Exclusion B.2. does not apply to you or any family member for the operation or occupancy of a private passenger auto, utility or miscellaneous type vehicle not owned or furnished or available for the regular use of you or any family member, except while the vehicle is rented or leased to another, or being used to carry persons or property for a fee. The exclusion also does not apply to your or any family member s operation or occupancy of any other auto if such operation or occupancy is not for business purposes. C. CHANGES IN CONDITIONS The following Condition is added: DEATH OF THE INDIVIDUAL NAMED INSURED If you die 1. Your surviving spouse if a resident of the same household at the time of your death will continue as the named insured until the end of the policy. 2. Your legal representative will be the named insured but only while acting within the scope of his or her duties as such. TRANSFER OF RIGHTS OF RECOVERY AGAINST OTHERS TO US is changed to include the following: However, our rights in this paragraph do not apply under Physical Damage Coverage against any person using your owned private passenger, utility or miscellaneous type vehicle with a reasonable belief that that person is entitled to do so. We may not claim the amount recovered by you or any family member from an insurer of any underinsured motor vehicle. FIRST REPRINTING 137 EFFECTIVE AUGUST 1, 1995 Copyright - ICT Services, Inc

55 This endorsement modifies insurance provided under the following: EMPLOYEES AS INSUREDS BUSINESS AUTO COVERAGE FORM GARAGE COVERAGE FORM TRUCKERS COVERAGE FORM The following is added to LIABILITY COVERAGE WHO IS AN INSURED provision: TE (Ed. Effective 3/92) Any employee of yours is an insured while using a covered auto you don t own, hire or borrow in your business or your personal affairs. TE (Ed. Effective 3/92) SOCIAL SERVICE AGENCIES VOLUNTEERS AS INSUREDS This endorsement modifies insurance provided under the following: BUSINESS AUTO COVERAGE FORM TRUCKERS COVERAGE FORM The following is added to LIABILITY COVERAGE WHO IS INSURED provision: Anyone volunteering services to you is an insured while using a covered auto you don t own, hire or borrow to transport your clients or other persons in activities necessary to your business. Anyone else who furnishes that auto is also an insured. TE 99 35A (Ed. Effective 3/92) FOREIGN MADE AND DISCONTINUED MAKES OF AUTOMOBILES LIMITING PHYSICAL DAMAGE COVERAGES This endorsement modifies insurance provided under the following: BUSINESS AUTO COVERAGE FORM TRUCKERS COVERAGE FORM SECTION III of the BUSINESS AUTO COVERAGE FORM and SECTION IV of the TRUCKERS COVERAGE FORM EXCLUSIONS are amended to include the following additional exclusion: Expenses or losses arising from the unavailability of stock repair parts or repair service in the vicinity where loss to the auto occurs or the stolen auto is recovered. Acknowledged by (Your signature) ORIGINAL PRINTING 141 EFFECTIVE MARCH 18, 1992 Copyright - ICT Services, Inc

56 a. Garage operations means the ownership, maintenance or use of locations for the purpose of a business of selling, servicing, repairing or parking autos and that portion of the roads or other accesses that adjoin these locations. Garage operations also include all operations necessary or incidental to a garage business. b. Work you performed includes work that someone performed for you. This endorsement modifies insurance provided under the following: EXCLUSION OR EXCESS COVERAGE (Hazards Otherwise Insured) TE 99 40A (Ed. Effective 3/92) BUSINESS AUTO COVERAGE FORM GARAGE COVERAGE FORM TRUCKERS COVERAGE FORM When you do not want LIABILITY COVERAGE to apply to certain covered autos you own (which are described in this endorsement), hired autos or non-owned autos because you have other insurance, place an [x] in the provision that will apply. OWNED AUTOS: Body Type Size Trade GVW, GCW or Vehicle Serial Number Year Model Name Seating Capacity Vehicle Id. # [ ] LIABILITY COVERAGE does not apply. [ ] LIABILITY COVERAGE does not apply to bodily injury or property damage occurring before the other insurance ends. Date other insurance ends. [ ] LIABILITY COVERAGE does not apply to bodily injury or property damage occurring before the other insurance ends except to the extent damages exceed the limits of the other insurance. However, the most we will pay is the difference between the Limit of Insurance Coverage in this Coverage Form and the limits of the other insurance, if this Coverage Form s limits are higher. Date other insurance ends HIRED AUTOS: [ ] LIABILITY COVERAGE does not apply. and Limits of Insurance [ ] LIABILITY COVERAGE does not apply to bodily injury or property damage occurring before the other insurance ends. Date other insurance ends. [ ] LIABILITY COVERAGE does not apply to bodily injury or property damage occurring before the other insurance ends except to the extent damages exceed the limits of the other insurance. However, the most we will pay is the difference between the Limit of Insurance for Liability Coverage in this Coverage Form and the limits of the other insurance, if this Coverage Form s limits are higher. Date other insurance ends NON-OWNED AUTOS: [ ] LIABILITY COVERAGE does not apply.. and Limits of Insurance [ ] LIABILITY COVERAGE does not apply to bodily injury or property damage occurring before the other insurance ends. Date other insurance ends. [ ] LIABILITY COVERAGE does not apply to bodily injury or property damage occurring before the other insurance ends except to the extent damages exceed the limits of the other insurance. However, the most we will pay is the difference between the Limit of Insurance of Liability Coverage in this Coverage Form and the limits of the other insurance, if this Coverage Form s limits are higher.. Date other insurance ends. and Limits of Insurance. EFFECTIVE MARCH 18, ORIGINAL PRINTING Copyright - ICT Services, Inc