UNITED AUTOMOBILE INSURANCE COMPANY

Transcription

1 UNITED AUTOMOBILE INSURANCE COMPANY PRIVATE PASSENGER AUTOMOBILE PROGRAM FLORIDA AUTOMOBILE UNDERWRITING MANUAL 11/01/10

2 UNITED AUTOMOBILE INSURANCE COMPANY Florida Automobile Producers Manual TABLE OF CONTENTS INTRODUCTION 1 1. BINDING PROCEDURES 4 2. RENEWALS 4 3. VIOLATION POINT VALUES 4 4. ACCIDENTS AND VIOLATIONS 4 5. UNACCEPTABLE RISKS 6 6. ENDORSEMENTS 6 7. FINANCIAL RESPONSIBILITY FILINGS 7 8. UNDERWRITING INFORMATION 7 9. DISCOUNTS ADDITIONAL RULES FOR CERTAIN COVERAGES & TOWING & RENTAL COVERAGE VEHICLE ACCEPTABILITY RULES BINDING COMPREHENSIVE AND COLLISION COVERAGES PAYMENT PLANS CANCELLATIONS, RESCISSIONS AND NON-RENEWALS CLAIMS PROCEDURES POLICY TYPES SURCHARGES INCREASE SYMBOL VEHICLE LIST NON OWNER PROGRAM 19 H. NON-OWNER DRIVER CLASSIFICATION TABLE 21 I. NON-OWNER ANNUAL BASE RATE TABLE 22 O. NON-OWNER PROGRAM TERRITORY DEFINITIONS TABLE 29 FLORIDA PRIVATE PASSENGER AUTOMOBILE ANNUAL BASE RATES R-I DRIVER CLASSIFICATION AND USE OF VEHICLE RATING FACTORS POINT RATING FACTORS VEHICLE SYMBOL AND AGE GROUP FACTORS TABLE FLORIDA PRIVATE PASSENGER AUTOMOBILE PROGRAM TERRITORY DEFINITIONS R-V R-VI R-VII R-X 11/01/10 i

3 UNITED AUTOMOBILE INSURANCE COMPANY Directory United Automobile Insurance Company (UAIC) Mailing Addresses: Underwriting P.O. Box Miami, FL Underwriting (Direct Bill) P.O. Box Miami, FL United Premium Finance Company P.O. Box Miami, FL Claims P.O. Box Miami, FL Customer Service Phone: Claims Phone: /01/07 ii

4 INTRODUCTION Some important points about coverage and policy restrictions: The application becomes a part of UAIC s policy. Material misrepresentations made on the application are grounds for denial of coverage, cancellation and/or denial of a claim. Be sure to review and rate the whole risk. This means that all relatives and residents in the insured s household must be listed on the application. The same goes for all regular non-resident drivers. The insured s unmarried children, residing elsewhere while at school or in the military must also be listed. UAIC regularly runs reports based on the insured s address to verify or clarify information on the application for all licensed drivers as well as running CLUE reports for prior claims. We will re-rate policies based on information we find. We also reserve the right to binder cancel any application which we deem unacceptable. In principle, the Named Insured (in whose name the policy and dec page are issued) must be a registered owner of all insured vehicles. 1. BINDING PROCEDURES A. NEW BUSINESS 1. No coverage is bound unless the application is complete and signed by both the named insured and the producer. Producers may write acceptable risks provided every question on the application is answered (and explained when called for). It is important that the Producer specifically ask the applicant the questions on the application (the questions also apply to other listed drivers) as certain statements are made a part of the policy and incorrect statements could void the policy. Both named insured and the producer WARRANT that the information on the application is true and correct to the best of their knowledge. 2. Producers are required to review applications carefully before binding to make certain the risk is acceptable and can be bound according to this manual and subsequent bulletins. 3. The effective date on an application should not be established until the application has been completed, signed by the Named Insured and the required premium received by your agency. Do not change, strike over, or otherwise alter an effective date on any application or endorsement request. Application or endorsements received with altered effective dates will be declined. 4. Vehicles owned by Corporations, Partnerships or Associations, etc. are not eligible for private passenger rates. 5. The application must also include the following: a. All drivers in the household and all other operators of the vehicle(s) and their correct driver s license number(s). b. Co-owners of a vehicle must be named on the application as a driver. Exception: If said person is a cosigner for financial purposes only and is not shown on vehicle registration, then he/she does not need to be named as a driver. c. Complete vehicle description and vehicle identification number (VIN). Correct coverage and term must be selected. d. Uninsured Motorist Bodily Injury coverage waivers as appropriate providing the policy has BI coverage. e. Signed exclusions as appropriate. f. Telephone numbers including area code for applicant s home and place of business. g. Applicant s and Producer s signatures are mandatory. In addition, the producer must list his/her producer license number on the application. h. Occupation, employer/school and work/school address, including zip code. i. Total annual mileage and current odometer reading. j. Co-owner information must be completed as follows: 10/01/07 1

5 i. If not licensed, submit a signed UAIC Non-Licensed Statement endorsement, or list the co-owner on the application form as Non-licensed. ii. If licensed but to be excluded, the Driver s Exclusion section of the application must be completed and the policy must include BI coverage. If the insured selects a driver to be excluded on his/her application or endorsement, there will be a 5% surcharge on the premium for the PIP & PD coverages. iii. The registered or co-registered owner may not be excluded unless the other individual is listed on the Financial Purpose Statement Form and must not be a resident of the household. k. Complete name and address of Loss Payee or Additional Insured (must be a financial institution or leasing company no individuals or businesses.) 6. Current MVRs for all operators (max 10 days old) must be submitted with the application and endorsements to add driver(s). If licensed outside of the state of Florida, please provide an MVR from that state. 7. ALL BUSINESS MUST BE UNDERWRITTEN THROUGH YOUR STAFF. 8. All applications MUST be accompanied by the producer s check or draft for the net premium, policy fee, FIGA surcharge, FHCF Assessment, motor vehicle report fee, and SR-22 filing fee, if applicable. 9. We require an application signed by the registered owner(s) of the vehicle. The signature of one owner is acceptable if vehicle registration deems or. No exceptions, otherwise a Cancellation will be issued. 10. In the event a producer designates a risk bound which does not conform to our underwriting guidelines, UAIC will seek reimbursement from the producer for any claims it must pay incident to the binder. B. BINDING 1. Applications for new and renewal business must be submitted and bound via the Quick Quote system. All applications must be signed by both the applicant and producer, indicating time and date bound. A copy of the completed application must be given to the insured. 2. On endorsements that add additional vehicles and/or additional coverage, brokers must phone bind. The binder phone numbers are as follows: Dade: (305) Watts Only: The date and time stamp on UAIC s Quick Bind system s generated application, determines the effective date of the policy. a. If there is no evidence of a date and time stamp, the policy will be effective 12:01 a.m. the date received by UAIC. b. If the date and time stamp is later than the requested effective date, we will issue at the later date unless there is some accompanying documentation to support the earlier date. This could happen if Quick Bind is used to generate a corrected application after the initial binding. In this case, attach the original application (marked Revised ) to show the date and time originally generated. c. The above also applies to applications that are fax bound. We will use the later date unless otherwise clearly documented. 4. Postmark Stipulations: a. Binding will begin no earlier than 12:01 a.m. on the day after the date of the U.S. Postal Service postmark on the envelope containing the application. b. UAIC will bind metered mail no earlier than 12:01 a.m. of the date following receipt. 5. APPLICATIONS MUST BE SENT TO UAIC S OFFICES NO LATER THAN 3 WORKING DAYS FROM THE SALE DATE. If not submitted within this time frame, a binder cancellation will be issued to both the agent and applicant. 05/04/10 2

6 6. Once an application is bound, it can only be cancelled by the insured or the company. To unbind a bound application, send the voided completed original of the bound application signed by the customer and producer in a separate envelope marked VOID on the front of the envelope. 7. Tropical Storm/Hurricane Watch or Warning Procedures a. When a tropical storm grows in intensity, the National Weather Service issues a tropical storm/hurricane Watch or Warning. If issued in an agent s particular area, binding authority for PHYSICAL DAMAGE IS SUSPENDED. b. \When the National Weather Service lifts the tropical storm/hurricane Watch or Warning, normal binding authority is automatically reinstated. 8. Binder Book Procedures Producers must maintain an appropriate and permanent chronological register of each transaction as it occurs, showing date and time of binder, name and address of applicant, type of coverage desired, name of the insurance company, and the effective date of coverage. FAILURE ON YOUR PART TO ABIDE BY THESE RULES WILL RESULT IN THE LOSS OF THE FACILITY. C. UNDERWRITING APPROVALS Underwriting Guidelines are exactly as the words suggest guidelines. On occasion there may be a risk where the interpretation of the guidelines is not clear or a part of the risk may fall in a gray area. For these situations, rather than risk a possible rejection or cancellation of the policy, it is prudent to call an underwriter to review the risk and obtain an approval prior to submitting it. This is not an approval of the entire risk. The scope of this approval is limited to what is described above. The application and accompanying documents submitted for this risk will be evaluated for eligibility and rate adequacy. UAIC may request a CLUE report or utilize other investigative tools to verify the information provided on the application. This approval will be voided and application rejected if: 1) the risk is unacceptable outside the scope of this approval, 2) the Broker and/or Client has misrepresented or concealed material facts about the risk and/or has failed to meet the conditions of this approval, or 3) the approval form submitted with the application has been altered. D. COVERAGES & LIMITS WRITTEN $100K/$300K Bodily Injury and $50K Property Damage is available for leased vehicles. If coverage is written for more than 1 vehicle, at least 1 vehicle must be leased to purchase these limits. Multiple policies within the same household must share the same limits. $100K/$300K/$50K liability limits are available for drivers who have been found guilty of or plead guilty or nolo contendere to a charge of DUI. If there are additional vehicle(s) that such driver would like to insure with us, then each additional vehicle(s) must have the $100K/$300K/$50K liability limits. $10K/$20K, $15K/$30K, and $25K/$50K Bodily Injury is available for leased and nonleased vehicles. $10K, $15K, and $25K Property Damage Coverage is available for non-leased vehicles. Comprehensive and Collision Coverage (Physical Damage Coverage) is available up to $50K ACV (Actual Cash Value). $500 limit is available for Medical Payments coverage. $10K Personal Injury Protection coverage is available from 10/1/07 until 12/31/07. $10K Personal Injury Protection & $10K Property Damage only limits are State of Florida mandated coverage effective 1/01/ /01/07 3

7 E. POLICY PERIOD Annual and semi-annual policy terms are available for all levels of coverage. Semi-annual premiums are calculated at 50% of the annual premium plus the full administration fees and policy fee. F. EXCLUDED PERSONS The Company will generally permit the exclusion of both relative and non-relative residents of the same household provided they are applying for Bodily Injury Coverage. If the insured selects a driver to be excluded on his/her application or endorsement, there will be a 5% surcharge on the premium for the PIP & PD coverages. G. POLICY FEE On business written pursuant to the provisions of Section , Florida Statutes, the Company s licensed supervising or managing general agent, as defined in Section , Florida Statutes, will charge a $25 policy fee on new and renewal business. The policy fee is non-commissionable. H. MOTOR VEHICLE REPORT FEE On business written pursuant to the provisions of Section (b), Florida Statutes, the Company s licensed supervising or managing general agent shall charge a motor vehicle report (MVR) fee equal to the cost on new and renewal business. The MVR fee is non-commissionable. I. WHOLE DOLLAR RULE All premiums for each coverage must be rounded to the nearest whole dollar. A premium of $0.50 or more will be rounded to the higher whole dollar. 2. RENEWALS Offers to renew will be mailed directly to the Insured and Producer thirty-five (35) days prior to the current expiration date. Renewals should be bound using the Quick Bind system. 3. VIOLATION POINT VALUES Determine the rating group by the total points for the last 36 months for accidents and all traffic infractions. If multiple infractions arise out of one occurrence, charge only for the highest value. If two or more cars, assign the highest rated driver to the highest rated vehicle, and the next highest rated driver to the next highest rated vehicle, and any additional drivers and vehicles accordingly. 4. ACCIDENTS AND VIOLATIONS A. CHARGEABLE ACCIDENTS Chargeable accidents are solo accidents (involving only one motor vehicle) or other accidents in which the driver was greater than 51% of the proximate cause of the accident. If a previous insurer determined that an accident was chargeable, UAIC will consider the accident chargeable. If the driver was uninsured at the time of the accident, the police report or other objective information must accompany the application so that UAIC can determine fault. Otherwise, the accident will be considered chargeable. All Accidents Each Offense 3 Points B. NON-CHARGEABLE ACCIDENTS Points will not be assigned if the accident occurred under the following circumstances: 1. The vehicle was lawfully parked. A vehicle rolling from a parked position shall not be considered to be lawfully parked, but as in the operation of the last operator. 2. The vehicle was struck in the rear by another vehicle and the driver of the first vehicle was not convicted of a moving traffic violation. 3. The vehicle was struck in a hit and run accident and reported to the proper authorities within 24 hours of the accident. 05/04/10 4

8 4. Accidents that result from contact with animals, birds, or falling objects. 5. Fully reimbursed for all damages. 6. Not convicted of a moving traffic violation in connection with the accident, but the operator or the other automobile involved in such accident was convicted of a moving traffic violation. 7. Finally adjudicated not to be liable by a court of competent jurisdiction. 8. In receipt of a traffic citation which was dismissed or nolle prossed. Not at-fault, as evidenced by a written statement from the insured established facts demonstrating lack of fault, which are not rebutted by information in the insurer s file from which the insurer in good faith determines that the insured was substantially at fault. 9. Operating a Private Passenger Automobile where coverage is not included in the exposure of the risk. 10. Involved in an accident involving physical damage, limited to and caused by falling objects or gravel. 11. The driver was responding to the call of duty in a public emergency vehicle, i.e., police, firefighter, or emergency medical technician. NOTE: This exception does not include an accident occurring after the emergency situation ceases or after the automobile ceases to be used in response to such emergency. C. MAJOR VIOLATIONS Major violations include convictions under the Motor Vehicle Code, Penal Code, Business and Professions Code, Health and Safety Code or any other code. This list may not be complete at all times. If you have any doubt, contact the company. 1. Driving while under the influence of alcohol or narcotics or any open bottle violation. (6 Points) 2. Conviction of any felony involving use of a motor vehicle. (5 Points) 3. Hit and run. (5 Points) 4. Reckless driving. (3 Points) 5. Evading a police officer in a reckless manner. (5 Points) 6. Speeding over 15 miles over the posted limit. (2 Points) 7. Speed Contest-Exhibition of speed. (5 Points) 8. Homicide or assault with a motor vehicle. (6 Points) 9. Making a false Police/Accident report. (3 Points) 10. Operating a motor vehicle under a suspended or revoked license. (3 Points) D. MINOR VIOLATIONS All other traffic convictions involving the unsafe operation of a motor vehicle will be counted. The first non-criminal traffic infraction period is not subject to surcharge. The second and each subsequent infraction committed within the 18-month period are 2 points each, unless otherwise indicated. 1. INEXPERIENCED OPERATOR any operator, regardless of age, who has not held a valid, permanent Florida driver s license for three (3) years. (1 Point) E. EXPERIENCE PERIOD The experience period for accidents and convictions is the 36-month period prior to the policy effective date. The Company will waive the last 30 days of the experience period for accidents and convictions when establishing eligibility and computing premium. This means that violations and accidents that occurred between 35 and 36 months prior to the inception of the policy will be waived. This will also extend to the age of driver, providing he/she will change driver class within 30 days of inception of the policy. 5. UNACCEPTABLE RISKS A. More than 18 underwriting points in the past 36 months. 10/01/07 5

9 B Applications without the Insured's street and/or residence address. C. Vehicles over twenty-five (25) model years for liability as a single vehicle and up to thirty (30) years if it is a 2 nd or 3 rd vehicle; vehicles over fifteen (15) model years for Comprehensive/Collision. Exception: This does not apply to renewal policies. D. We will only insure one more vehicle than drivers in the household. E. Drivers over the age of seventy-five (75) are required to submit UAIC s approved medical statement signed by a physician indicating ability to operate a motor vehicle. F. Comprehensive must always include Collision, and Collision must include Comprehensive on Full Coverage Policies. G. Vehicles with ACV over $50,000 (NADA) or higher than ISO Symbol 54 (24 or higher for Model Years 2010 and prior) for Comprehensive/Collision. H. Students attending school outside Florida. I. Military operators (acceptable if driver is to be stationed in Florida for a minimum of one (1) year from inception of the policy). J. Vehicles not registered in Florida or vehicles that will be operated outside of Florida in the scope of one's business. K. The following occupations are unacceptable: real estate salespersons, chauffeur, valet parkers, taxi cab drivers, jitney drivers, day care drivers, patient transporter or any other occupation which requires more than 4 hours per work day in any vehicle. L. Applicants/drivers with a revoked driver s license. M. Vehicles garaged outside the state of Florida. N. Drivers with three or more accidents, regardless of fault, within the last 36 months. THESE ARE GUIDELINES ONLY. UAIC RESERVES THE RIGHT TO DETERMINE ELIGIBILITY BASED ON EACH RISK. 6. ENDORSEMENTS A change of the Named Insured on an existing policy will not be made without a new, completed, and signed application, plus the replacement of all waivers and endorsements requiring the Named Insured s signature. If any endorsement requires an additional premium, said premium must be submitted in order to process the endorsement, or it will be returned unbound. ALL ENDORSEMENTS MUST BE SUBMITTED WITH PREMIUM IF APPLICABLE. Endorsements are effective under the same conditions as new business, except as stated below: 1. ADDING NEW DRIVERS Verify eligibility before adding driver to the policy. Coverage for drivers currently excluded on an existing policy may not be bound any earlier than the date and time the endorsement request is electronically transmitted or faxed to UAIC, or before the postmark on the envelope, if mailed. A current MVR must be furnished for said driver(s). 2. EXCLUDING DRIVERS Named resident drivers will not be deleted from coverage until a completed and signed Designated Exclusion is received. The effective date will be no earlier than the date transmitted to UAIC. This includes residents away at school or in the Armed Forces. We will not exclude any driver on a policy that does not include Bodily Injury coverage. If the insured selects a driver to be excluded on his/her application or endorsement, there will be a 5% surcharge on the premium for the PIP & PD coverages. Reminder: The named insured cannot be excluded. 11/01/10 6

10 3. ADDING NEWLY ACQUIRED VEHICLES When adding a newly acquired vehicle as defined in the policy jacket, add it effective the date acquired, provided it is reported within 30 days of the acquisition. If there has been a loss involving the newly acquired vehicle, submit the request and do not indicate the effective date or time. Report the claim immediately and advise the insured that the Company will determine coverage. 4. REDUCTION OF DEDUCTIBLES Comprehensive or Collision deductibles may not be reduced mid-term without prior written Company approval. Two color photographs showing the front, back, and sides of the vehicle must be submitted with the request. 7. FINANCIAL RESPONSIBILITY FILINGS A. STANDARD SR-22 The filing fee for SR-22 s is $15 for each filing. It is fully earned at inception and noncommissionable. Filings will be deleted on the next renewal following the expiration date of the filing requirements. SR-22 filings are for owner only or spouse. B. PIP/PD NON-CANCELLABLE SR-22 The filing fee for this SR-22 is $15 for each filing. This SR-22 differs from the Standard SR-22 as follows: The policy is non-cancellable. Only PIP and PD coverage are offered. Only a six month term is available and must be paid in full. 8. UNDERWRITING INFORMATION A. DRIVER S LICENSE REQUIREMENTS Applications will not be accepted unless a permanent driver s license number is shown for all listed drivers. For excluded persons, furnish the ID/driver s license number and occupation when possible. Valid Out-of-State licenses are acceptable, as long as a Motor Vehicle Report is submitted with the application; however, if no MVR from that State is submitted, then two (2) points will apply. Persons with a valid Florida MVR and less than 3 years experience in Florida will be charged 1 point unless their Out-of-State MVR is included with the application. Drivers without a permanent Florida driver s license must comply with the following requirements to remain eligible for insurance: 1. INSTRUCTION OR LEARNER S PERMIT FOR STUDENTS UNDER AGE 18 A permit holder cannot be the Named Insured, but can be listed as an additional driver. Drivers must complete all DMV requirements within 12 months of the date they were first covered by the policy. Driving experience credit will begin when a new driver has received a permanent license as indicated in the date license issued field of the MVR. 2. TEMPORARY LICENSE Drivers with a temporary license must complete all DMV requirements for a permanent license prior to the renewal following the date they were first covered by the policy. 3. EXPIRED OR SUSPENDED LICENSE Drivers with a license that has expired in the past 60 days must submit proof of license renewal within 20 days of the inception of the policy and/or the date requested by UAIC. Drivers with a suspended license must provide proof of license reinstatement within 20 days of the inception of the policy and/or the date requested by UAIC. 4. FOREIGN/INTERNATIONAL DRIVER S LICENSE Drivers with a foreign or international driver s license are eligible and will be assessed a 2 point surcharge. B. ONE DRIVER WITH TWO VEHICLES When there is only one driver with two cars insured under the same policy, the driver shall be rated on the highest-rated vehicle. The second car defaults to Class 3A for rating purposes. No safe-driver discount shall apply to the second car. However, all other applicable discounts shall be applied. 10/01/10 7

11 C. HOUSEHOLDS WITH MULTIPLE POLICIES If multiple UAIC policies are written within the same household, each policy MUST have the same coverages and the same limits. Make sure you list the other policy number on the application. 9. DISCOUNTS A. MULTI-CAR 15% Multi-car rates may apply when a policy insures 2 or more vehicles. This discount applies to BI, PD, PIP, Comprehensive, and Collision for like coverages only. To qualify for multi-car rates, all eligible vehicles must be: 1. Garaged at the same address. 2. Registered solely to the Named Insured, and/or insured's resident. 3. Used principally by the Named Insured, insured s resident spouse, or such resident unmarried children, of either sex under age 31. Vehicles registered or rated to persons other than the above do not qualify for the multi-car discount or qualify other vehicles for the discount. B. PAID IN FULL 5% A 5% Paid in Full Discount will apply to all coverages when the insured pays his/her premium in full. C. RENEWAL (WHEN THE PRIOR UAIC POLICY INCLUDES BODILY INJURY COVERAGE FOR AT LEAST THE LAST 6 MONTHS OF THAT POLICY, & THE RENEWAL UAIC POLICY INCLUDES BODILY INJURY COVERAGE) 30% For a policy that will be renewed with UAIC, a 30% Renewal Discount will apply to the premium for the Bodily Injury, Property Damage, and, if applicable, Collision coverages provided the following is true: 1. The prior UAIC policy includes Bodily Injury coverage for at least the last 6 months of that policy, AND 2. The renewal UAIC policy includes Bodily Injury coverage, AND 3. There is no more than a 30 day lapse in coverage, from the expiration date of the prior UAIC policy to the effective date of the renewal UAIC policy, AND 4. The prior UAIC policy for this risk has no at fault claims. This discount will NOT apply to the premium for the following coverages: 1. Uninsured Motorists, 2. Personal Injury Protection, 3. Medical Payments, and 4. Comprehensive. This discount will NOT apply to the following: 1. Any applicable Coverage Expense Fees, 2. Policy Fees, 3. Any applicable SR-22 Fees, 4. Any applicable Florida Insurance Guaranty Association surcharges, and 5. Any applicable Florida Hurricane Catastrophe Fund Assessments. D. RENEWAL (WHEN THE PRIOR UAIC POLICY EXCLUDES BODILY INJURY COVERAGE BUT THE RENEWAL UAIC POLICY INCLUDES BODILY INJURY COVERAGE) 20% 11/01/10 8

12 For a policy that will be renewed with UAIC, a 20% Renewal Discount will apply to the premium for the Bodily Injury, Property Damage, and, if applicable, Collision coverages provided the following is true: 1. The prior policy excludes Bodily Injury coverage, AND 2. The renewal policy includes Bodily Injury coverage, AND 3. There is no more than a 30 day lapse in coverage, from the expiration date of the prior UAIC policy to the effective date of the renewal UAIC policy, AND 4. The prior UAIC policy for this risk has no at fault claims. This discount will NOT apply to the premium for the following coverages: 1. Uninsured Motorists, 2. Personal Injury Protection, 3. Medical Payments, and 4. Comprehensive. This discount will NOT apply to the following: 1. Any applicable Coverage Expense Fees, 2. Policy Fees, 3. Any applicable SR-22 Fees, 4. Any applicable Florida Insurance Guaranty Association surcharges, and 5. Any applicable Florida Hurricane Catastrophe Fund Assessments. E. TRANSFER (WHEN PRIOR POLICY WAS NON-UAIC & THE NEW UAIC POLICY INCLUDES BODILY INJURY COVERAGE) 5% 11/01/10 9

13 For a policy that will be transferred from another carrier to UAIC, a 5% Transfer Discount will apply to the premium for the Bodily Injury, Property Damage, and, if applicable, Collision coverages, provided the following is true: 1. The new UAIC policy includes Bodily Injury coverage, AND 2. There is no more than a 30 day lapse in coverage, from the expiration date of the prior non- UAIC policy to the effective date of the new UAIC policy, AND 3. There is proof of prior coverage, where acceptable evidence includes: a. Declarations page from the prior policy, OR b. A letter of experience from the prior company or broker/agent on company letterhead, OR c. Other documentation that clearly demonstrates that prior insurance was in effect. This discount will NOT apply to the premium for the following coverages: 1. Personal Injury Protection, 2. Uninsured Motorists, 3. Medical Payments, and 4. Comprehensive. This discount will NOT apply to the following: 1. Any applicable Coverage Expense Fees, 2. Policy Fees, 3. Any applicable SR-22 Fees, 4. Any applicable Florida Insurance Guaranty Association surcharges, and 5. Any applicable Florida Hurricane Catastrophe Fund Assessments. F. SAFE DRIVER DISCOUNT Any driver who has had an at-fault accident or major violation (please refer to Rule III. B) within the last 36 months is not eligible for this discount. The schedule for all other violations is as follows: 1. The past 12 months - (10% discount) 2. The past 24 months - (15% discount) 3. The past 36 months - (20% discount) For the purpose of applying the Safe Driver Discount, use the following rules: 1. If one car, rate on highest rated driver. 2. If two or more cars or more operators than cars: a. Assign the highest rated car; the next highest rated operator to the next highest rated car, and additional operators and cars accordingly, then: b. Apply any Safe Driver Discount to the coverages (BI, PD, and Collision) for the vehicle in which the assigned operator qualifies for the discount. 3. Discounts do not apply to Coverage Expense Fees, Policy Fees, Uninsured Motorists Coverage, Medical Payments Coverage, Personal Injury Protection Coverage, or Comprehensive Coverage. 4. At-fault accidents are defined as accidents for which a charge may be made per point values rule (refer to Rule 4.A for reference). G. SENIOR OPERATOR ACCIDENT PREVENTION COURSE DISCOUNT A 5% Senior Operator Motor Vehicle Accident Prevention Course Discount shall apply to the premiums for Bodily Injury, Property Damage, Personal Injury Protection, and Collision coverages, provided the auto is classified and rated as a Private Passenger Auto. The principal operator of the auto must be age 55 or older and must provide us with a course completion 11/01/10 10

14 certificate, dated within the most recent 36 months, certifying that he/she has successfully completed a Motor Vehicle Accident Prevention Course approved by the Florida Department of Highway Safety and Motor Vehicles. This discount shall apply to New Business and Renewal policies with inception dates within the 36 month period following the course completion date and only to the auto principally operated by the insured with the course completion certificate. The discount shall apply only once to each such auto regardless of the number of operators with course completion certificates. This discount does not apply if the insured is: 1. Taking or has taken the approved course as punishment specified by a court or other governmental entity resulting from a moving traffic violation. 2. Subsequently involved in an at-fault accident after having earned the discount. 3. Subsequently convicted, pleads guilty, or nolo contendere to a moving traffic violation, after having earned the discount. H. MISCELLANEOUS DISCOUNTS 1. Anti-Theft Device Credit A 25% discount is applied to the Comprehensive premium for a vehicle equipped with an antitheft device or vehicle recovery system (e.g.lojack, Teletrac, etc.) which is factory installed or approved by the Office of Insurance Regulation. The certificate must accompany the application. 2. Antilock Brakes Credit A 5% discount on the premium for the Bodily Injury, Property Damage, Personal Injury Protection, and Collision coverages shall be granted if the insured vehicle is equipped with antilock brakes. The Company prior to granting the discount must receive required evidence of installation. 3. Air Bag Credit A 10% discount on the premium for the Personal Injury Protection and Medical Payments coverages shall be afforded if the insured vehicle is equipped with one or more air bags. The Company prior to granting the discount must receive required evidence of installation. THE MAXIMUM ALLOWABLE DISCOUNT CANNOT EXCEED 45% FOR EACH COVERAGE. ANY DOCUMENTATION REQUIRED TO RECEIVE A DISCOUNT MUST ACCOMPANY THE ORIGINAL APPLICATION-NO EXCEPTIONS. 10. ADDITIONAL RULES FOR CERTAIN COVERAGES & TOWING & RENTAL COVERAGE A. COMBINATION OF COVERAGES 1. Policies insuring 2 or more vehicles must be written with the same limits of liability, Uninsured Motorist, and Medical Payments coverage on each vehicle. 2. Uninsured Motorist Coverage will be written only with Liability and cannot exceed the BI limits. 3. Medical Payments coverage is only written with Liability coverage. B. PROTECTION AGAINST UNINSURED MOTORISTS INSURANCE 1. Uninsured Motorists coverage provides for payment of certain benefits for damages caused by owners of operators of uninsured motor vehicles because of bodily injury or death 11/01/10 11

15 resulting there from. Such benefits may include payments for certain medical expenses, lost wages, and pain and suffering, subject to limitations and conditions contained in the policy. For the purpose of this coverage, an uninsured motor vehicle includes a motor vehicle where the bodily injury liability limits carried are less than the monetary damages incurred. 2. Florida law requires that automobile liability policies, which provide Bodily Injury coverage, include Uninsured Motorists coverage at limits equal to the Bodily Injury Liability limits in the policy, unless the insured selects a lower limit offered by the Company, rejects Uninsured Motorists coverage entirely, or requests the option to purchase the non-stacked Uninsured Motorists coverage at or below the limits of the Bodily Injury Liability coverage limits. This election shall apply to any Liability policy which renews, extends, changes, supersedes, or replaces such policy, unless the insured requests Uninsured Motorists coverage or requests the option to purchase non-stacked Uninsured Motorists coverage. 3. If the policy includes Bodily Injury coverage, applicants must sign waivers for the uninsured motorist coverages if they are not desired. If the applicant does not sign the waivers, the policy will be issued with the applicable Uninsured Motorists coverage. 4. Uninsured Motorist - $10,000/$20,000 Premiums: a. Stacked Rates: Annual Rates Territories Territories Territories Remainder of 6A-B,7A-D,14A-J, 15A-D,19A-E,33A-I 20A-D 34A-M,36A-C State Multi-Car (Per Car) $335 $245 $202 $223 b. Non-Stacked Rates: Annual Rates Territories Territories Territories Remainder of 6A-B,7A-D,14A-J, 15A-D,19A-E,33A-I 20A-D 34A-M,36A-C State Single $212 $155 $127 $141 Multi-Car (Per Car) C. MEDICAL PAYMENTS Medical payments may be written on an optional basis. D. PERSONAL INJURY PROTECTION Personal Injury Protection coverages shall be afforded in accordance with Florida law effective on and after January 1, E. OTHER COVERAGE OPTIONS 1. Optional PIP Coverages are available at factors applied to the Base Rates as follows: Named Insured Named Insured & Deductible Options Only Dependent Relatives $ $ $ $1, PIP Work Loss Benefits a. At the election of the named insured, benefits for work loss may be excluded for Personal Injury Protection (1) for the Named Insured only at a 2% reduction or (2) for the Named 11/01/10 12

16 Insured and Dependent Relatives at a reduction of 5% from the otherwise applicable Personal Injury Protection rate shown on the Florida Base Rates Schedule. b. If the named insured elects both the deductible and work loss option, determine the premium by (1) multiplying the Personal Injury Protection rate on the Florida Base Rates Schedule by the applicable deductible factor in E.1. above and (2) reducing the rate determined above by the applicable percentage shown in E.2.a. F. PHYSICAL DAMAGE DEDUCTIBLES & FACTORS Comprehensive and Collision Deductibles $ $ $1, G. TOWING & RENTAL REIMBURSEMENT ($36 per 6 month term per vehicle) ($70 per 12 month term per vehicle) 1. Option 1 Towing and Rental Reimbursement for Policies with Physical Damage 1. Towing & Rental coverage is optional. 2. This coverage will only be accepted when Physical Damage (Comprehensive & Collision) coverage is purchased. 3. Towing & Rental coverage will only apply when a mechanical disablement or Physical Damage (Comprehensive & Collision) loss has occurred provided the coverage is in effect and indicated on the declaration page at the time of loss. 4. The Towing benefit limit is $50 per occurrence, with a maximum of one occurrence per term for a 6 month policy term, and a benefit limit of $50 per occurrence, with a maximum of two occurrences per term for a 12 month policy term. 5. The Rental benefit limit is $20 per day up to a maximum of $375 per term. 2. Option 2 Towing and Rental Reimbursement for Liability Only Policies 1. Towing and Rental coverage is optional 2. This coverage will only be accepted when Liability Only (Bodily Injury, Property Damage, and Personal Injury Protection) coverage is purchased. 3. Towing and Rental coverage will only apply when an accident has occurred provided the coverage is in effect and indicated on the declaration page at the time of loss. 4. The Towing benefit limit is $50 per occurrence, with a maximum of one occurrence per term for a 6 month policy term, and a benefit limit of $50 per occurrence, with a maximum of two occurrences per term for a 12 month policy term. 5. The Rental benefit limit is $20 per day up to a maximum of $375 per term. H. MEDICAL PAYMENT RATES Limit - $500 Points Rates Points Rates 0 $8 5 $15 1 $9 6 $17 2 $11 7 $18 3 $12 8 $20 4 $14 9 $21 11/01/10 13

17 I. INCREASED LIMIT FACTORS FOR LEASED VEHICLES OR DRIVERS WITH DUI CONVICTIONS Every owner or operator with a DUI Conviction on or after 10/1/07 will be required by FLORIDA LAW to carry increased limits of $100,000/$300,000 for BODILY INJURY and $50,000 for PROPERTY DAMAGE. Drivers can opt to post a bond or furnish a certificate of deposit for no less than $350,000. Multiply the below Increased Limit Factors by the base rates for corresponding selected coverages to determine the rates for this program. $100,000/$300,000 Bodily Injury 3.49 $100,000/$300,000 Uninsured Motorist Bodily Injury 4.38 $50,000 Property Damage 1.22 J. INCREASED LIMIT FACTORS Multiply these factors by the rates for corresponding selected coverages to determine the rates for vehicles that are not leased. $15,000/$30,000 Bodily Injury 1.25 $25,000/$50,000 Bodily Injury 1.58 $15,000/$30,000 Uninsured Motorists Bodily Injury 1.57 $25,000/$50,000 Uninsured Motorists Bodily Injury 1.98 $15,000 Property Damage 1.05 $25,000 Property Damage VEHICLE ACCEPTABILITY RULES A. ACCEPTABLE VEHICLES Individually owned Private Passenger automobiles including station wagons, pickups, and vans provided they are not used for commercial purposes and do not have a load capacity over 3/4 ton (1,500 lbs.). Vehicles with rebuilt titles are acceptable for liability coverage only. NOTE: Convertibles, turbo-equipped vehicles, and most GT models are eligible, but must have a $1,000 deductible on comprehensive/collision coverages. B. UNACCEPTABLE VEHICLES (FOR ANY COVERAGE) The following types and usage of vehicles are unacceptable and may not be bound. 1. Motorcycles. 2. All commercially used vehicles. 3. Buses. 4. Corporate owned vehicles, including partnership or association. 5. Driver training cars. 6. Emergency ambulance, fire department, or law enforcement agency vehicles. 7. Public and private livery vehicles, limousines, and taxicabs, including vehicles used to transport nursery or school children, migrant workers, hotel/motel guests, patients or members of a car-pool. 8. Long haul freight carriers. 9. Vehicles rented or leased to others. 10. Vehicles used for delivery or pick up. 11. Vehicles used for racing. 12. Kit, antique cars, or dune buggies. 13. Vehicles used to transport gasoline, gases under pressure, explosives, or flammable substances. 11/01/08 14

18 14. Suzuki Samurai, Suzuki Sidekick, Geo Tracker, Isuzu Amigo, Jeep CJ 5, 7, and including any soft top suv type vehicles, and other similar vehicles. 15. Panel or Cargo Vans The following vehicles are unacceptable for Physical Damage except as a replacement vehicle by endorsement with a $1,000 deductible. 1. ALL rebuilt, salvaged, altered, modified, specially built, or customized vehicles*. 2. Acura NSX 3. BMW 6, 7, and 8 Series 4. Citroen (All Models) 5. Corvette 6. Dodge Shelby 7. Dodge Viper 8. Electric Vehicles 9. Lotus (All Models) 10. Mitsubishi 3000 VR4 11. Plymouth Sapporo 12. Porsche (All Models) 13. Rolls Royce (All Models) 14. Rover 15. Mustang GT and Cobra 16. Vehicles with a load capacity over ¾ ton 17. Panel or cargo vans THIS LIST IS TO BE USED AS A GUIDE ONLY. THE FINAL DETERMINATION ON THE ACCEPTABILITY OF ANY VEHICLE RESTS SOLELY WITH THE COMPANY. *Modified Vehicles: Vehicles with non-factory modification designed to alter performance, handling or appearance characteristics. Examples: (1) Vehicles that have been raised or lowered and vehicles that have been modified by specialty shops such as Callaway or Saleen; (2) Franchise dealer or professionally modified vans (e.g., van conversions). 12. BINDING COMPREHENSIVE AND COLLISION COVERAGES A. DO NOT BIND FOR PHYSICAL DAMAGE: 1. Vehicles whose current value or cost new exceeds $50, Vehicles over fifteen (15) model years old. Exception: This does not apply to renewal policies. B. TO BIND COMPREHENSIVE AND COLLISION COVERAGE, the following are required: 1. Two clear photos showing all sides and the license plate of the vehicle are required unless: a. Purchased brand new from a franchise dealer and coverage bound the same day, or b. A renewal or rewrite of an existing UAIC policy, which includes comprehensive and collision coverages, with no lapse in coverage. NOTE: EXISTING DAMAGE The producer should take additional photographs showing damaged areas, which must be attached to the application. Minor, cosmetic damage may be acceptable. Submit non-bound for approval. 13. PAYMENT PLANS (Semi-annual or annual policies) These are general rules. Your specific producer agreement may allow different terms and procedures. A. PREMIUM FINANCING Premium financing is accepted, providing UAIC has approved said finance company. 11/01/08 15

19 B. PAID-IN-FULL C. DIRECT BILL There will be two types of Direct Bill Payment Plans available: 1. Plan 1: A down payment is due at policy inception & it MUST be paid via Electronic Funds Transfer (EFT). Plan 1 MUST also have BI coverage listed on the Policy. a. For annual policies, the down payment is all fees plus 9% of the policy premium before all fees, and there will be 11 additional installments remaining. b. For semi-annual policies, the down payment is all fees plus 18% of the policy premium before all fees, and there will be 5 installments remaining. c. Billing Schedule i. The 1 st invoice will be mailed on the 5 th day from the inception date of policy. ii. All consecutive invoices will be mailed on the same day of the month as the initial invoice issued. iii. The 1 st payment is due 15 days from the inception date of the policy. iv. Any payment in excess of the amount due will be applied to the next installment. Amounts less than $5 will only be returned at the request of the insured. v. If any payment is less than the amount invoiced, a notice of cancellation will be generated. On policies cancelled for non-payment, balances less than $5 will be waived. vi. Additional premium (AP) will require a down payment in order to keep the account current for billing and the remainder will be divided equally over the remaining payments. vii. Return premium endorsements will equally reduce the amount of future installments. d. Directions for mailing Notices of Cancellation i. The 1 st notice of cancellation will be mailed on the 16 th day from the inception date of the policy. ii. All consecutive cancellation notices will be mailed on the same day of the month as the initial invoice issued. iii. The 1 st cancellation date will be 30 days from policy inception. 2. Plan 2: A down payment is due at policy inception & it MUST be paid via Electronic Funds Transfer (EFT). a. For annual policies, the down payment is all fees plus 18% of the policy premium before all fees, and there will be 10 installments remaining. b. For semi-annual policies, the down payment is all fees plus 36% of the policy premium before all fees, and there will be 4 installments remaining. c. Billing Schedule i. The 1 st invoice will be mailed on the 36 th day from the inception date of the policy. ii. All consecutive invoices will be mailed on the same day of the month as the initial invoice issued. iii. The 1 st payment is due 46 days from the inception date of the policy. iv. Any payment in excess of the amount due will be applied to the next installment. v. If any payment is less than the amount invoiced, a notice of cancellation will be generated. vi. Additional premium (AP) will be calculated based on a down payment, keeping the account current for billing and the remainder will be divided equally over the remaining installments. vii. Return premium endorsements will equally reduce the amount of future installments. d. Directions for mailing Notices of Cancellation i. The 1 st notice of cancellation will be mailed on the 47 th day from the inception date of the policy. 03/01/10 16

20 ii. All consecutive notices of cancellation will be mailed on the same day of the month as the initial invoice issued. iii. The 1 st cancellation date will be 61 days from the inception date of the policy. MANDATORY FEES FOR ALL DIRECT BILL PAYMENT PLANS 1. Setup Fee $ Installment Fee on the Unpaid Balance 1.50% 3. Late Fee $ Non-Sufficient Funds (NSF) Fee $ Any other additional fees or surcharges that apply to all policyholders. All fees are fully earned, non-commissionable and non-refundable. D. ELECTRONIC FUNDS TRANSFER (EFT) FOR DIRECT BILL POLICIES Insureds with 6 and 12 month policy terms will have the option to pay via electronic funds transfer or EFT for Direct Bill Policies. With the EFT, the insured will be able to choose the date the insurance payment is automatically deducted from their checking account. EFT policies are automatically renewed and will only be cancelled by a written request from the insured. New bank information will be required for any rewrites. Should the insured have their policy cancelled twice for NSF during any twelve (12) consecutive months, the Company will revoke their EFT eligibility for one (1) year. EFT is also cancelled when the following occurs: the policy is cancelled, an invalid bank account number, or a lapse notice is generated. For EFT Payment Plans refer to Mandatory Fees for All Direct Bill Payment Plans to determine any applicable fees. 14. CANCELLATIONS, RESCISSIONS, AND NON-RENEWALS A. CANCELLATIONS Policies cancelled by the Company for unpaid premiums and for underwriting reasons other than material misrepresentation will be cancelled pro-rata. Insured s request to cancel will be processed short rate, which is 90% of pro-rata. If the Company receives a request to cancel signed by the Named Insured, a notice of cancellation will be sent to all parties concerned. No adjustment will be made to the earned premium after notice of cancellation has been issued, except to correct a company error. Insured s request to cancel due to a misquote of premium will be cancelled pro-rata. 1. New Business If the Company is not willing to continue coverage, the charge will be computed pro-rata, based on the submitted premium, provided the insured furnished correct information on the application. If incorrect rating information was provided on the application, i.e., additional convictions or accidents, the earned premium will be computed pro-rata based upon the proper premium. 2. NSF (Non-Sufficient Funds) Checks For any checks submitted to the company NSF: A. For initial payment, the policy will be flat cancelled; or B. For OTHER THAN the initial payment, the check will be treated as non-payment of premiums. 11/01/10 17

21 B. RESCISSIONS/REJECTIONS Coverage will be rescinded/rejected if a risk is materially misrepresented and unacceptable by the rules in this manual. If the insured s down payment check is not honored for any reason, coverage will be rescinded/rejected. If an insured s check is deposited to the Producer s account and it is returned unpaid to the Producer, UAIC must be notified within 4 weeks of the inception date for a rescission of coverage. C. NON-RENEWALS Policies re-underwritten prior to the renewal that are found to be unacceptable will be nonrenewed. A 45-day notice will be given. If the insured has three (3) accidents, regardless of fault, within the last 36 months, the policy will be non-renewed. When an insured moves to another state, the insured should be encouraged to replace coverage with a company licensed in that state. The Company will cancel the policy short rate. Exception: If less than 45 days remain in the policy term, the policy will be non-renewed. We request that you notify UAIC immediately upon learning that an insured has moved out of state, even though you do not have the insured s new address. It is essential that we mail proper notice to the last known address. An oral notice of non-renewal does not comply. D. BINDER CANCELLATIONS All application packages must be sent to UAIC s office no later than 3 working days from the sale date. If the application package is not received within this time frame, a binder cancellation will be sent to both the agent and applicant. E. REWRITES On a policy cancelled for non-payment of premium, the policy must be rewritten and will be subject to a lapse in coverage. 15. CLAIMS PROCEDURES All claims are to be reported to UAIC s claim service immediately following the accident. For fast claims service and to completely eliminate your time involvement in processing claims forms, please instruct your insureds and claimants to call our claims department directly. This procedure will eliminate non-productive time and give the company the opportunity to give both your client and claimants immediate direct claim service. CLAIMS TELEPHONE NUMBERS: Phone (305) The new loss reports division has the following working schedule: M-F 8:30 AM-5 PM PRODUCER HAS NO AUTHORITY TO ASSIGN A LOSS FOR ADJUSTMENT TO AN ENTITY OTHER THAN UAIC. 16. POLICY TYPES A. UAU- All Policy Types Except for Non-Owner Policies Regardless of Coverage Types. B. UNO-Non-Owner Coverage 1. Liability limits for this program are $10K/$20K only. Only Property Damage (PD) and Bodily Injury (BI) coverage are provided. 17. SURCHARGES APPLICABLE ONLY TO POLICIES THAT EXCLUDE BI COVERAGE A. 30% applies to the PIP Premium prior to the addition of the PIP Expense Fee, and B. 15% applies to the PD Premium prior to the addition of the PD Expense Fee. 11/01/10 18