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