Millville Mutual Homeowners Manual

Transcription

1 Millville Mutual Homeowners Manual Pennsylvania Effective Date December 1, 1998

2 RULES PAGE Additional Co-Habitant 2 Additional Interests 2 Additional Living Expense 15 Additional Locations 19 Alarm Systems 9 All Terrain Vehicles Property Coverage 15 Liability Coverage 19 Assignment 6 Basic Limits of Liability 4 Business Personal Property 14 Business Pursuits 16 Calculation of Premium 8 Cancellation 7 Changes in Limits of Liability 8 Claims Frequency Surcharge 10 Condominiums 12 Contributing Insurance 7 Co-Owner Occupancy 1 Coverages (Basic) and Amounts (Minimum) 4 Coverage C - Increased Limits 13 Coverage C - Reduction in Limits 9 Credit Card and Depositor s Forgery 14 Deductibles 9 Dwellings Under Construction 1 Earthquake 11 Electronic Devices 15 Eligibility 1 Expanded Coverage Program Explanation 5 Farmers Comprehensive Personal Liability 18 Fire Resistive Construction 8 Guns 14 Home Computer 15 Inboard / Outboard Boats and Sailboats 18 Incidental Business Occupancies 17 Incidental Farming 18 Ineligible Occupancies 1 Inflation Guard 10 Liability - Section II 4 Liability (Unusual Circumstances) 19 Life Interest 2 Limits of Liability 4 Loss Assessment - Condominiums 12 Loss Assessment - Homeowners 12 2

3 RULES PAGE Medical Payments 4 Mid-Term Changes 8 Minimum Limit - Section I 4 Money and Securities 13 New Home Credit 10 Office, School and Studio Occupancy 17 Optional Coverages - Section I 10 Optional Coverages - Section II 16 Other Structures - Exclusion 11 Owner/Co-Habitant 2 Package Policy Requirements 4 Perils Insured Against 3 Personal Injury 18 Personal Liability 4 Personal Umbrella Policy 4 Policy Term 6 Preferred Risk Credit 10 Premium Payment 6 Private Structures - Extension of Coverage A 7 Private Structures - Optional Coverages 10 Program Description 3 Protective Devices 9 Refrigerated Food Products 15 Renewal Credit 10 Replacement Cost - Coverage C 13 Restriction of Coverage 6 Row or Townhouses 9 Satellite Dish 11 Seasonal Dwellings 1 Secondary Locations 19 Specifically Rated Dwellings 8 Sprinkler System 9 Territorial Definitions 21 Transfer of Policy 6 Water Damage (Sewers, Drains & Sumps) 13 Watercraft Liability 18 Effective Spring 2012

4 FORM EDITION TITLE PENNSYLVANIA - HOMEOWNERS ML- 1R 9-98 Perils Section (Basic) ML Perils Section (Broad) ML Perils Section (Special) ML Perils Section (Renters/Condo Unit-Owners) ML Liability Coverage Section ML Farm Liability Coverage Section ML General Policy Terms OPTIONAL ENDORSEMENTS FORM EDITION TITLE ML Incidental Property Coverages - Higher Limits ML Condominium Unit Owners Additions ML Unit-Owner Additions - Special Coverage ML Unit-Owner Rental to Others Coverage ML Related Private Structures and Condo Fixtures ML Glass Breakage - Condo Unit-Owner ML Related Private Structures Rented to Others ML Additional Insured ML Office/Professional/Private School or Studio Occupancy ML Personal Injury ML Related Private Structures ML Loss Assessment Coverage ML Earthquake Loss Assessment ML Earthquake Coverage ML Replacement Value - Loss Settlement Terms - (Personal Property) ML Scheduled Personal Property Coverage ML- 61A 1.0 Scheduled Personal Property - Schedule ML Coverage C - Higher Limit on Certain Property ML Additional Residential Premises Rented to Others (Liability Coverage Only) ML Business Activities ML Watercraft ML Increased Coverage A Limit - No Pvt. Structures ML Personal Property in Rental Units ML Care Provided for Others ML Credit for Duplicate Insurance ML Home Computer Endorsement ML Insurance By More Than One Company ML Premium Payments Plan ML Automatic Adjustment of Limits ML Water Damage (Sewers, Drains, & Sumps) ML Waterbed Liability ML Protective Devices ML Farm Employer's Liability Coverage Schedule ML Incidental Farming ML Incidental Business Pursuits - Including Products

5 FORM EDITION TITLE ML Incidental Business Pursuits - Excluding Products ML Animal Collision ML Delete Other Structures Coverage ML Delete Specific Other Structures ML Owner/Co-Habitant ML Additional Co-Habitant ML Amendatory Endorsement (Liability Exclusion for: Unfenced Inground Pools, Trampolines, and Animals with Viscious Tendencies)(Use with ML-9) ML Amendatory Endorsement (Liability Exclusion for: Unfenced Inground Pools, Trampolines, and Animals with Viscious Tendecies)(Use with ML-10) SPECIAL STATE ENDORSEMENTS FORM EDITION TITLE ML Pennsylvania Endorsement ML Insurance Consultation Services Exemption Act Notice ML Punitive Damage Exclusion SPECIAL COMPANY ENDORSEMENTS FORM M2 M4 M12 MX781 TITLE Deferred Premium Payment - Semi-Annual Deferred Premium Payment - Quarterly Deferred Premium Payment - Monthly Clarifiation Endorsement - Farm Truck

6 These are our general acceptance guidelines and are only provided for the purpose of binding authority. Your judgment about an account is the most important underwriting information we can ask for. If you have an account that you feel is appropriate for us that falls outside these guidelines, please give us a call!! AVAILABLE LIMITS MINIMUM MAXIMUM ML-1, ML-2 & ML-3 Coverage A $24,000 $250,000 ML-4 Coverage C $ 6,000* 50,000 *Minimum for replacement cost $15,000 DEDUCTIBLE: $250 is the standard deductible. Optional deductibles of $100, $500 and $1000 are available if acceptable with the underwriter. DWELLING CHARACTERISTICS: * Dwellings under 30 years old are considered better than average risk and should be written on a replacement value basis. * Dwellings over 30 years must have the plumbing, heating and electrical systems and roof updated in order to qualify for a form ML-3. * Dwellings over 30 years should be written on a functional replacement cost basis. * All dwellings must have an enclosed foundation and a thermostatically controlled heating system. * The condition and upkeep of the dwelling and premises must be average or above and show evidence of pride of ownership. OCCUPANCY: One or two family, owner-occupied dwellings are eligible. DOCUMENTATION: The following information must accompany all submissions: * Completed application signed by the producing agent and insured if bound.## * Photo of all insured structures.## * Loss history for the past three years. * Woodstove supplement if there is a solid fuel burning device on the premises. * Fraud statement. * Number and breed of any dogs maintained on the premises. (Agents requesting rush policies via fax may submit only basic policy information, but must mail the above information to the company within ten days.) ## For policies which are uploaded by agents, the agency must maintain the original written application and photos in their office. The home office may request a copy of the photo before issuing coverage. INELIGIBLE EXPOSURES: * Supplemental heating systems that do not meet NFPA guidelines. * Trailer homes, mobile homes, or modular homes not on permanent foundations. * Seasonal dwellings unless primary residence is with the company. * Row houses or Townhouses over 25 years old. AGENCY BINDING RESTRICTIONS: The following risks may not be bound by agents until approved by underwriter. Risks with the following hazards may be written, subject to underwriter discretion, where exposure can be reduced or eliminated. * Trampolines.

7 * Unfenced inground pools. * Animals with vicious tendencies. UNDERWRITING CAUTIONS: The following conditions do not render an exposure ineligible, but may require an underwriter to limit coverage until the condition is corrected. * Lack of handrails on steps and/or banisters on elevated porches, decks, etc. * Dwellings with insulbrick, asphalt or asbestos siding do not qualify for Form ML-3 coverage. * Exposures with large or multiple outbuildings or outbuildings in poor repair.

8 RULE 1 ELIGIBILITY 1.1 Owner Occupied Millville Mutual Insurance Company A policy may be issued to an owner-occupant of a dwelling used only for private residential purposes and occupied by no more than two families and no more than two boarders or roomers per family. USE FORM ML-1R, ML-2, ML Tenant Occupied A policy may be issued to the tenant (non-owner) of a dwelling or apartment unit if the residence occupied by the insured is used only for residential purposes and is occupied by no more than one additional family or two boarders or roomers. USE FORM ML Co-Owner Occupancy A policy may be issued to one of the co-owners provided each occupies separate apartments within the dwelling. USE FORM ML-1R, ML-2, ML-3 A policy using Form ML-4 may be issued to the other co-owner(s). 1.4 Dwellings Under Construction A policy may be issued to cover the interest of the intended owner-occupant of a dwelling under construction. Refer to company. 1.5 Seasonal Dwellings Coverage for seasonal dwellings may be provided under ML-1R with a $500 deductible when the primary homeowner is insured with this company. INDICATE ON DECLARATIONS PAGE 1.6 Ineligible Occupancies The following are ineligible for coverage under this manual: ## Mobile homes, trailer homes or house trailers with or without frame additions, whether or not set on foundations or otherwise made stationary. ##(Double-wide modular units on foundations with composition shingle roofs are eligible.) Row houses or Townhouses over 25 years old. 1

9 1.7 Additional Interests - Underwriting Rules Life Interest - When a property has been deeded to a non-resident member of the family with the tenancy right for the purpose of estate planning, the policy may be written in the name of the life tenant with the owner listed as an additional insured on Form ML Purchase Agreements - When a home is purchased under an article of agreement or an installment contract, wherein the seller retains the title, a fire policy should be written in the name of the seller. The buyer can be listed as an additional insured if requested by the seller, but the buyer should also carry a tenant type policy (e.g. ML-4) to provide coverage for personal property. ATTACH ENDORSEMENT ML Lender s Interest - When a lender s interest is not bound by a mortgage on real estate, the lender s interest must be listed as a loss payee. The interest of a loss payee is no greater than the interest of an insured and does not have the same rights as a mortgagee Owner/Co-habitant- Owner/Co-habitant is defined as an individual who has legal interest by deed or title in the Insured Premises and is a resident of the insured household. Undrwriting Rule: List all owner/co-habitants as Named Insureds on the declaration of the policy. This includes a spouse, relative and/or unrelated co-habitant, all of whom must have an insurable interest in the real estate and reside within the same living area of the residence. Endorsement: Endorsement ML-510 will automatically be made part of all policies, without charge, where two or more individuals are listed as Named Insureds in order to clarify the intent of the policy to insure only one Insured Premises Additional Co-habitant- Additional Co-habitant is defined as an individual who does not have legal interest by deed or title in the Insured Premises, would not qualify as an Insured under the definition of the policy, and permnently resides on the Insured Premises. Underwriting Rule: An additional co-habitant may be added by endorsement to provide personal property, additional living cost and personal liability coverages. This will avoid the need to issue a separate ML-4 Tenant's policy. Endorsemnt: Endorsement ML-520 will be added to the policy with the name of any additional co-habitants listed on the endorsement. The charge is $20 per additional co-habitant. Only one Additional Cohabitant may be listed per policy. 2 Effective Spring 2012

10 RULE 2 PROGRAM DESCRIPTION Millville Mutual Insurance Company The following is a general description of the coverages provided by the homeowners forms. The policy forms state the complete conditions. 2.1 Section 1 Coverages - Property Mandatory Coverage A - Residence Coverage B - Private Structure Coverage C - Personal Property Coverage D - Additional Living Expense Forms ML-1R and ML-2 cover the residence, private structures, personal property and additional living expense against losses resulting from the perils indicated below. Peril Peril Section ML-1R # ML-2 ## Fire or Lightning X X Windstorm or Hail X X Explosion X X Riot or Civil Commotion X X Aircraft X X Vehicles X X Smoke X X Vandalism X X Sinkhole Collapse X X Theft X X Volcanic Action X X Falling Objects X Weight of Ice, Snow, or Sleet X Sudden & Accidental Tearing Apart, Burning or Bulging X Accidental Discharge of Liquids or Steam X Freezing X Sudden & Accidental Damage from Electrical Currents X Form ML-3 ## covers the residence, private structures and additional living expense against all physical loss, with certain exceptions. Personal property is covered for the perils shown for Form ML Form ML-4 ## covers personal property including the insured's interest in building additions and alterations and additional living expense against loss by the perils shown for Form ML-2. # - Limited Glass Breakage Coverage is included in the Incidental Property Coverages. ## - Limited Glass Breakage and Collapse Coverage is included in the Incidental Property Coverages. 3

11 2.2 Section II Coverages - Liability Mandatory Personal Liability - Pays on behalf of the insured for damages due to bodily injury or property damage caused by an occurrence related to the insured's premises or personal activities. Medical Payments to Other - Pays medical expenses incurred by persons who are not insureds if the bodily injury occurs in connection with the insured's premises or personal activities. USE FORM ML Package Policy Requirements The minimum limits of liability for the homeowners policy are as follows: Section I Form 1R Form 2 Form 3 Form 4 Residence $40,000* $40,000* $50,000* 10% of 10% of 10% of Private limit on limit on limit on Structure residence residence residence 50%+ of 50%+ of 50%+ of Personal limit on limit on limit on $6,000 Property residence residence residence Additional 20%# of 20%# of 20%# of 40% of Living limit on limit on limit on limit on Expense residence residence residence personal property * Lesser limits permitted when residence is insured to 80% of replacement + 30% for dwellings occupied by three or four families # 10% for dwellings occupied by three or four families Secondary Locations Coverage A Minimum Limits 1 or 2 families $20,000 Section II Coverages Personal Liability Medical Payments to Others All Forms $100,000 each occurrence $500 each person $25,000 each accident Optional lower limits of $25,000 and $50,000 are available on Personal Liability with credits as shown in rate pages. If Section II limits greater than $300,000 are needed, please refer to the Millville Mutual Personal Umbrella Manual. 4

12 2.4 Expanded Coverage Program Millville Mutual Insurance Company The 9-98 Millville Mutual Homeowners Program is a deviation from the 2.0 version AAIS Expanded Coverage Program. The following is a summary of features in this program which are different from prior homeowners programs. Refer to policy forms for details of coverage terms Revised limits applicable to Special Property:. Money - $250. Securities - $1,500. Electronic Devices which are operable from both motorized vehicle or other power source - $1,500. Jewelry, Watches and Furs - $2,500*. Silverware, Goldware & Pewterware - $2,500*. Guns - $2,500*. Watercraft - $1,500. Trailers not otherwise provided for - $1,500. Business Property on Premises - $2,500. Business Property Away from Premises - $250 * Limits apply only to loss by theft MMIC Expanded Coverage Highlights Incidental Coverages now include: Other Changes:. $500 Coverage for Refrigerated Food Products. $1,500 Coverage for Electronic Devices which are operable from both the electrical system of a motorized vehicle and another power source. $1,500 Coverage for Loss Assessment. ML-1 Glass Breakage Coverage increased to $100 Liability Coverage expanded to include liability arising from the use of:. A watercraft, other than a sailing vessel, which is not designed to be powered by an engine or motor which is owned by or rented to an insured and is less than 26 feet in total length. 5

13 RULE 3 POLICYWRITING INSTRUCTIONS 3.1 Annual Policy Term Policies may not be written for less than one year except to maintain common anniversary dates with other policies. 3.2 Premium Payment Plan Policies issued may be placed on a quarterly or semi-annual payment plan of equal payments provided each payment exceeds $50. A service charge of $3 will be added to each billing. 3.3 Additional Interests The policy may cover the interests of additional owners at no additional premium. This coverage is limited to the building and premises liability. ATTACH ENDORSEMENT ML Transfer or Assignment At the option of the company, the policy may be endorsed to effect:. Transfer to another location within the same state, or. Assignment from one insured to another in the event of transfer of title of the dwelling. 3.5 Restriction of Coverage If a policy would not be issued because of unusual exposures, the applicant may request a restriction of coverage at no reduction of premium. The request, signed by the applicant, must be referred to Company. Restrictions under this rule must be filed with and approved by the Pennsylvania Insurance Department. 6 Effective Spring 2012

14 3.6 Cancellation or Reductions in Limits of Liability or Coverages Mandatory coverages may not be canceled unless the entire policy is canceled. If the policy or non-mandatory coverages are canceled or the amount of insurance is reduced: By the company or in the event of foreclosure of the mortgage on the insured real property, compute return premium pro rata By the insured: For policy terms of one year or less -- Compute return premium at 90% of the pro rate unearned premium. 3.7 Contributing Insurance Coverage under Section I of the policy may be divided between two or more companies.. All policies must contain the same deductible.. All Section I additional limits and coverages must be divided between the companies. Scheduled personal property may be shared at the option of the companies.. All Section II coverages must be assumed entirely by one of the companies. Section II premium charges are shown in the State Rate Pages and must be subtracted before the total premium is divided between the companies.. All policies must include the policy number and company names and must identify the company providing the Section II coverages. ATTACH ENDORSEMENT ML Extension of Coverage A: No Private Structures - Forms ML-1R, ML-2, ML-3 If there are no private structures on the premises exceeding $1,000 combined replacement value, the Coverage B limit may be added to the Coverage A limit at no additional premium charge. ATTACH ENDORSEMENT ML Effective Spring 2012

15 3.9 Interpolation of Premiums Millville Mutual Insurance Company Premiums for policy amounts not shown in the State Rate Pages may be obtained by interpolation. RULE 4 PREMIUM DETERMINATION Annual premiums and rates are shown in the State Rate Pages. The Basic Policy Premiums are for property and liability coverages. Liability coverage for the following exposures is required if they exist. The additional premium is shown in the State Rate Pages.. All additional or secondary residence premises where the Named Insured or spouse maintains a residence other than business or farm properties.. All residence employees of the Named Insured or spouse not covered or not required to be covered by Worker's Compensation insurance. A charge is required for residence employees in excess of two.. Incidental office, professional, private school or studio occupancies by the Named Insured on residential premises of the Named Insured.. Three or four family dwellings. 4.1 Calculation of Premium The premium is computed as follows: Determine the Basic Policy Premium based on the amount of Coverage A or Coverage C as applicable Modify the amount determined in to reflect the selected deductible option Modify the amount determined in for premium credits or charges Add to the amount determined in the additional premium for all mandatory or optional Section I Personal Property Coverages and all mandatory or optional Section II Liability Coverages. 4.2 Changes in Limits of Liability or Addition of Coverages The limits of liability may be increased or coverages added during the policy term. Compute the additional premium on a pro rata basis using the same rates in effect when the current policy premiums were calculated. Additional premiums of $3 or less may be waived at the option of Company. 4.3 Specifically Rated Dwellings - Forms ML-1R, ML-2, ML-3 The premium for specifically rated dwellings of fire resistive or fireproof construction is 85% of the applicable brick or masonry premium. The applicable Fire and Extended Coverage rates shall be used for other specifically rated dwellings when written under a homeowners policy. 8

16 4.4 Row and Townhouses Millville Mutual Insurance Company The premium for an eligible one or two family owner occupied dwelling in a townhouse or row house is determined as shown in the State Rate Pages. An eligible two family owner occupied dwelling is considered two individual units when determining the number of family units within a fire division. RULE 5 DEDUCTIBLES The deductible amount for the ML forms is shown on the Declarations Page. No endorsement is needed. 5.1 Flat Deductibles - All Perils The policy may be issued with one of the following options at the premium credit shown in the State Rate Pages. Deductible Amount $ ,000 The ML policies contain a $250 flat deductible. RULE 6 PREMIUM MODIFICATIONS 6.1 Protective Devices The premium credits shown in the State Rate Pages may be allowed for the installation of the following approved and properly maintained alarm and/or sprinkler systems:. Central Station Burglary and/or Fire Alarms. Fire Department and/or Police Department Alarms. Local Alarms -(Excluding battery operated smoke detectors). Sprinkler Systems ATTACH ENDORSEMENT ML Reduction in Limit - Coverage C For one or two family dwellings, the Coverage C limit may be reduced to not less than 40% of the Coverage A limit at the credit shown in the State Rate Pages. SHOW LIMIT ON DECLARATIONS PAGE This reduction is not permitted when Form ML-42 is attached. 9

17 6.3 Preferred Risk Credit Millville Mutual Insurance Company The premium credit shown in the State Rate Pages shall be allowed for homes that meet all the following criteria:. Single occupancy dwelling. Constructed within the last 50 years. If structure is greater than 50 years old, plumbing and wiring must have been re-done to comply with current code requirements. Structure is in good condition and appearance showing evidence of proper maintenance and housekeeping. There are no woodstoves or unvented liquid fuel-heating devices (fireplaces are acceptable). Property is insured to at least 90% of estimated replacement cost with Coverage A in excess of $60,000. There have been no losses in the last three years (either with Millville or another carrier) 6.4 Claims Frequency Surcharge A Surcharge has been added and will apply to any homeowners policy that has incurred at least two claims within the most recent three years with Millville Mutual. Each claim must result in some payment and the total payments must exceed $1,500 for the surcharge to apply. Any claim that has been assigned a CAT number by the reinsurer will NOT count as a claim towards the surcharge. 6.5 Renewal Credit A renewal credit deifined in the State Rate Pages will be applied to policyholders who have been with Millville for three years without a lapse and have had no claims during that time. 6.6 New Home Credit A new home credit is availble for homes that qualify. See State Rate Pages for details. RULE 7 OPTIONAL SECTION I PROPERTY COVERAGES (Coverage A & Coverage B) 7.1 Inflation Guard Coverage - Not Applicable to Form ML-4 Coverage may be provided to automatically increase Coverages A, B, C and D on a quarterly basis, up to a maximum of 2%. The charges shown in the State Rate Pages apply to the Basic Policy Premium modified for revised limits of Coverages B, C or D. ATTACH ENDORSEMENT ML-184 AND INDICATE OPTION # 1, 2, or Private Structures Increased Limits - An additional amount of insurance may be written on a specific private structure at the additional premium shown in the State Rate Pages ATTACH ENDORSEMENT ML Effective Spring 2012

18 7.2.2 Rented to Others - Coverage may be provided for a private structure on the described premises rented or held for rental to others, used for residential purposes and occupied by no more than two families. The additional premium is shown in the State Rate Pages. ATTACH ENDORSEMENT ML With Incidental Occupancies - Coverage for a private structure on the described premises with an office, professional, private school or studio occupancy may be provided at the additional premium shown in the State Rate Pages for Private Structures Rented to Others. ATTACH ENDORSEMENT ML For a reduction in premium Coverage B-Related Private Structures and all corresponding references to Coverage B found in endorsements are deleted from the policy. See State Rate Pages for credit. ATTACH ENDORSEMENT ML For a reduction in premium Coverage B-Related Private Structures - an identified structure can be deleted. Personal Property in the deleted private structure is limited to 10% of Coverage C. See State Rate Pages for credit. 7.3 Satellite Dish ATTACH ENDORSEMENT ML 505 Coverage for satellite dish may be insured at the additional premium shown in the State Rate Pages. ATTACH ENDORSEMENT ML Earthquake Earthquake coverage may be provided at the additional premium shown in the State Rate Pages. Coverage applies to all Section I Coverages and must be written at the limit provided by the policy. The earthquake rates for Coverage B, C, and D shown in the State Rate Pages must be applied to the increases or additions of these coverages. ATTACH ENDORSEMENT ML Tenant s Improvements and Betterments - Higher Limits The limit for tenant s building additions and alterations may be increased at the additional premium shown in the State Rate Pages. ATTACH ENDORSEMENT ML-30 11

19 7.6 Condominium Unit-Owners Supplemental Coverages Unit-Owners Additions and Alterations. Higher Limits - The limit of liability may be increased at the premium shown in the State Rate Pages. ATTACH ENDORSEMENT ML-31. Special Coverage - Coverage may be provided for all physical loss on Condominium owners additions, with certain exceptions, at the premium shown in the State Rate Pages. ATTACH ENDORSEMENT ML-32. Earthquake coverage may be added using the rates and endorsement of Glass Breakage - Coverage may be provided for glass breakage of windows and doors that are part of the unit-owners portion of the building. The additional premium is shown in the State Rate Pages. ATTACH ENDORSEMENT ML-37. Miscellaneous Real Property - Unit - Owners additions and alterations outside the finished interior surfaces of the perimeter walls may be covered at the additional premium shown in the State Rate Pages. ATTACH ENDORSEMENT ML Unit Rental to Others Personal property of the insured may be covered while the unit is rented to others. The additional premium is shown in the State Rate Pages. ATTACH ENDORSEMENT ML Unit-Owners Private Structures Private structures owned by the insured and located on the described premises may be covered at the additional premium shown in the State Rate Pages. ATTACH ENDORSEMENT ML Loss Assessment - Increased Limit (Described Location) The limit that applies to the incidental property and liability coverages for loss assessment arising out of the described location can be increased. Coverage for assessments resulting from a deductible in the insurance purchased by the 12

20 association is limited to $1,500. The additional premium is shown in the State Rate Pages. ATTACH ENDORSEMENT ML Coverage for loss assessment arising from direct loss to property caused by an Earthquake may be added. The rates are shown in the State Rate Pages. ATTACH ENDORSEMENT ML Water Damage (Sewers, Drains and Sumps) Coverage may be provided to Broad (ML 2) or Special form (ML 3) for the premium stated in the State Rate Pages. ATTACH ENDORSEMENT ML 208 RULE 8 OPTIONAL COVERAGES -- PERSONAL PROPERTY AND ADDITIONAL LIVING EXPENSE 8.1 Personal Property Increased Limit - The Coverage C limit of liability may be increased at the additional premium shown in the State Rate Pages. SHOW LIMIT ON DECLARATIONS PAGE In Rental Units - Personal property of the insured located in the rental portion of the dwelling or private structure, not occupied by the insured, may be covered at the additional premium shown in the State Rate Pages. ATTACH ENDORSEMENT ML Replacement Value - Personal Property Personal property may be insured for replacement value at the additional charge shown in the State Rate Pages. ATTACH ENDORSEMENT ML Money and Securities The limit for money and related items may be increased at the additional premium shown in the State Rate Pages. ATTACH ENDORSEMENT ML-65 13

21 8.4 Unscheduled Jewelry, Watches and Furs The limit for unscheduled jewelry, watches and furs may be increased at the additional premium shown in the State Rate Pages. ATTACH ENDORSEMENT ML Guns Coverage for guns may be increased at the additional premium shown in the State Rate Pages. ATTACH ENDORSEMENT ML Silverware, Goldware and Pewterware Coverage for silverware, goldware and pewterware may be increased at the additional premium shown in the State Rate Pages. ATTACH ENDORSEMENT ML Business Property On or Away from Premises The limit for business property of an insured premises may be increased at the rate shown below. The total limit that applies to business property while away from the insured premises must automatically be increased to 10% of the total limit that applies to business property while on the insured premises. There is no additional premium charge. Maximum Additional Amount of Insurance: $7,500 on premises - $750 off premises ATTACH ENDORSEMENT ML Scheduled Personal Property Coverage may be provided against all physical loss, with certain exceptions, on scheduled personal property. Refer to Company. ATTACH ENDORSEMENT ML-61 AND ML-61A (SCHEDULE) AND MAKE ENTRIES TO DESCRIBE THE COVERED PROPERTY AND SHOW THE LIMITS WHICH APPLY. 8.9 Credit Card and Depositors Forgery The limit that applies to the incidental coverage for loss by forgery or alteration of credit cards, checks or drafts, or acceptance of counterfeit paper currency may be increased at the additional premium shown in the State Rate Pages. ATTACH ENDORSEMENT ML-30 14

22 8.10 Refrigerated Food Spoilage Millville Mutual Insurance Company The limit that applies to the incidental coverage for refrigerated food spoilage can be increased. The maximum cumulative amount of this coverage is $1,000. The additional premium is shown in the State Rate Pages. ATTACH ENDORSEMENT ML Computers Coverage for computer data processing equipment and software can be provided for all risks of direct physical loss, with certain exceptions. Use the rating information shown in the State Rate Pages. ATTACH ENDORSEMENT ML-170 and make entries to describe the covered property and show the limits that apply Electronic Devices The special limit under Coverage C that applies to loss to electronic devices, accessories, and antennas that can be operated from the electrical system of a motorized vehicle or watercraft and other sources of power can be increased. Use the rates in the State Rate Pages. ATTACH ENDORSEMENT ML Additional Living Expense and Loss of Rent Coverage D may be increased at the additional premium shown in the State Rate Pages. SHOW LIMIT ON DECLARATIONS PAGE 8.14 All Terrain Vehicles (ATVs) Coverage for direct physical loss to specified All Terrain Vehicles and ATV implements can be added. To qualify for coverage, the item must fall under the Pennsylvania Motor Vehicle Code definition of All Terrain Vehicle. Use the rates shown in the State Rate Pages. Attach IM-ATVA and make entries to describe the covered property and show the limits which apply. The following underwriting information is also needed: 1. Manufacturer 2. Year/Model 3. Engine Size (cubic centimeters) 4. Serial Number. 15

23 RULE 9 OPTIONAL SECTION II LIABILITY COVERAGES All mandatory or optional Section II Coverages must be written at the same limit. 9.1 Additional Residence Premises - Rented to Others Coverage may be provided for additional one or two family residence premises rented to others, owned by the Named Insured or spouse, at the additional premium shown in the State Rate Pages. ATTACH ENDORSEMENT ML Waterbed Liability - Form ML-4 Only Coverage may be provided for the property damage liability of an insured arising out of the ownership or use of a waterbed on the insured premises. The additional premium is shown in the State Rate Pages. ATTACH ENDORSEMENT ML Business Pursuits Coverage may be provided for the liability of an insured arising out of business activities, other than a business of which the insured is sole owner or a partner, at the additional premium shown in the State Rate Pages. Classify as shown below and apply the charges to each person insured Clerical Office Employees - Engaged wholly in office work and having no other duty in or about the employer's premises Salespersons, Collectors or Messengers - No installation, demonstration or service operations Salespersons, Collectors or Messengers - Including installations, demonstration or service operations Teachers - Athletic, laboratory, manual training, physical training and swimming instruction, excluding liability for corporal punishment of pupils Teachers - Not otherwise classified, excluding liability for corporal punishment of pupils Teachers - Liability for corporal punishment of pupils. Additional premium for this coverage must be added to the premium for classification or ATTACH ENDORSEMENT ML-71 16

24 9.4 Office, Professional, Private School or Studio Occupancy Incidental office, professional, private school or studio occupancies are permitted provided:. The premises are occupied principally for residential purposes, and. There is no other business conducted on the premises. At the additional premium shown in the State Rate Pages, coverage may be provided for the liability of an insured arising from: An office, professional, private school or studio occupancy in the dwelling or in a separate structure on the premises. The limit for Coverage C must be at least 60% of the Coverage A limit, or 35% for dwellings occupied by four families. ATTACH ENDORSEMENT ML-42 Professional instruction given by the insured in the dwelling. The Insured employs no assistants and the dwelling has not been altered to accommodate the occupancy. ATTACH ENDORSEMENT ML-42 An office, professional, private school or studio occupancy in an additional residence premises occupied by the Insured, other than the described premises. ATTACH ENDORSEMENT ML-43 Refer to Company for Medical Payments Charges on Incidental Day Nurseries or Nursery Schools. 9.5 Incidental Business Occupancies A homeowners may be written on a risk where the dwelling contains an incidental business as long as the dwelling is the insured's principal residence and the incidental business:. Is owned solely by the named insured,. Does not exceed 750 sq. ft.,. Does not employ any paid employees, and. Does not exceed annual receipts of $15,000. An incidental business occupancy is permitted in a separate building structure on the premises if it complies with eligibility above and there is no store front. Each risk is subject to final home office approval. Refer to State Rate Pages for rating * Attach Endorsement ML-326 (Including Products) ** Attach Endorsement ML-327 (Excluding Products) 17

25 9.6 Outboard Motors and Watercraft Millville Mutual Insurance Company Coverage may be provided for watercraft not covered by the policy at the premiums shown in the State Rate Pages.. For rating purposes, combine the horsepower of all outboard motors used together with any single watercraft owned by the Insured.. Sailboats 26 to 40 ft. inclusive equipped with auxiliary power are classed as inboard motor boats. ATTACH ENDORSEMENT ML Personal Injury Coverage may be provided for the Named Insured's legal liability resulting from the false arrest, libel, slander or invasion of privacy of another. The additional premium is shown in the State Rate Pages. ATTACH ENDORSEMENT ML Incidental Farming NOTE: Incidental Farming Endorsement is to be used when 10 to 25 acres or livestock of any kind is involved. When 26 or more acres are involved we suggest you go to the Farmowner Program as the most economical approach. Coverage may be provided for the insured's incidental farming activities at the residence premises location if farming is not the business of the Insured. The additional premium is shown in the State Rate Pages. ATTACH ENDORSEMENT ML Farmers Comprehensive Personal Liability Farm liability exposures may be covered at the additional premium shown in the State Rate Pages. The following may not be covered:. Farms where the principal purpose is to supply commodities for manufacturing or processing by the Insured for sale to others.. Farms where the principal purpose is raising and using horses for racing purposes.. Incorporated farms. ATTACH FORM ML-10 Charges must be made for the initial farm exposure and each additional farm premises, if they exist. 18

26 9.9.1 Initial Farm Exposure - This includes:. The principal farm premises includes all adjoining farm acreage with or without buildings. Any other dwellings located on the farm shall be rated as additional residence premises Each Additional Farm Premises - This includes:. Any additional farm with outbuilding(s) whether owned and operated by the Insured or rented to others and all vacant farm land used in conjunction with it.. Any dwellings located on the farm shall be rated as additional residence premises Unfenced Inground Pools; Ownership of Dangerous, Guard or Protection Type Dog(s); or Trampolines This endorsement will allow property owners who can not secure coverage because of the above hazards to assume all liability for injuries and damages (including legal costs) arising from the known hazard. The endorsement specifically excludes all coverage associated with the described hazards. A $5 credit will be deducted from the premium. A copy of the endorsement, signed by the insured(s) must be submitted with the application. ATTACH ENDORSEMENT ML-600 (WITH ML-9) OR ENDORSEMENT ML-601 (WITH ML-10) 9.11 All Terrain Vehicles (ATVs) Coverage for liability arising out of the use of a specific All Terrain Vehicle can b e added. To qualify for coverage, the ATV must fall under the Pennsylvania Motor Vehicle Code Definition of All Terrain Vehicle. Available limits are: $100,000 per occurrence / $300,000 aggregate Attach ATV-L $300,000 per occurrence / $300,000 aggregate Attach ATV-L3 Use the rates shown in the State Rate Pages. RULE 10 ADDITIONAL AND SECONDARY LOCATIONS 10.1 A separate policy may be written to cover secondary locations meeting the requirements of RULE 1. Section II may be omitted if eligible for credit as described in RULE Credit for Section II Section II may be omitted from the policy covering the additional or secondary location. The policy must be endorsed or amended to indicate that Section II coverage for the additional or secondary location is provided by the homeowners policy covering the primary location. Apply the premium credit for Section II shown in the State Rate Pages. 19

27 RESERVED FOR AGENT NOTES 20

28 PENNSYLVANIA TERRITORIAL DEFINITIONS Territory 1 Berks, Lancaster, Lehigh and Northampton 20 Columbia, Greene, Jefferson, Lawrence, Mercer, Montgomery, Somerset and Wyoming 21 Armstrong, Bedford, Blair, Carbon, Centre, Chester, Crawford, Dauphin, Fayette, Fulton, Huntingdon, Juniata, Mifflin, Monroe, Montour, Perry, Pike, Schuykill, Snyder, Tioga Union and Venango 30 Bucks, Clinton, Delaware, Erie, Northumberland and Washington 31 Adams, Allegheny, Beaver, Cumberland, Franklin, Lebanon and York 32 Bradford, Butler, Cambria, Cameron, Clarion, Clearfield, Elk, Forest, Indiana, Lackawanna, Luzerne, Lycoming, McKean, Potter, Sullivan, Susquehanna, Warren, Wayne and Westmoreland 40 Philadelphia 21

29 FIRE PROTECTION DEFINITIONS Protected Partially Unprotected Building is located within 1,000 feet of a fire hydrant Building is located over 1,000 feet from a fire Protected hydrant, but is within five road miles of a responding fire department All others CONSTRUCTION/OCCUPANCY FOR ML-4 ONLY C/O I Construction/Occupancy Group I - Apartment units in 1 to 4 family residences of any construction and any apartment unit in a fire resistive building C/O II Construction/Occupancy Group II - Apartment units in all other buildings CONSTRUCTION DEFINITIONS Masonry Frame Mixed A dwelling with walls of masonry or masonry veneered construction A dwelling with walls of frame, or metal-sheathed or stuccoed frame construction, or with walls of metal or metal lath and plaster on combustible supports. A dwelling shall be classed as frame construction when the wall area of frame construction (including gables) exceeds one-third (33-1/3%) of the total wall area. 22

30 RULE PREMIUM MODIFICATIONS AND DEDUCTIBLES 3.7 Contributing Insurance Endorsement ML-178 Credit for Section II $ Row and Townhouses - Class Rated Family Units in Fire Division: Over 8 Increase Basic Premium by: - 10% 25% Spec Rate 5.1 Deductible Options Factor $ , Protective Devices Central Station Alarms Burglary 5% Fire 5% Fire Department Alarms 3% Police Department Alarms 3% Local Alarms (Excluding Battery Operated Smoke Detectors) 2% Sprinkler Systems 3% Endorsement ML Reduction in Limit - Coverage C Per $1,000 of Insurance $1 Show Limit on Declarations Page 6.3 Preferred Risk Credit 15% CREDIT 6.4 Claims Frequency Surcharge 45% SURCHARGE 6.5 Renewal Credit 10% CREDIT (5% CREDIT Form 4) 6.6 New Home Credit Age of Home Credit 0-7 yrs 15% 8-14 yrs 10% yrs 5% Rates 1 Effective Spring 2012

31 RULE 7 OPTIONAL COVERAGES - PERSONAL PROPERTY 7.1 Inflation Guard Coverage ** Option #: Quarterly Increase 1.0% 1.5% 2.0% Surcharge 1.5% 2.5% 3.0% Endorsement: ML-184 ** Maximum quarterly increase is 2.0 %. 7.2 Private Structures - Rates per $1,000 of Insurance Increased Limit $2. Endorsement ML Rented to Others $3. Endorsement ML Private Structure/Incidental Occupancies $3. Endorsement ML Delete Coverage B (Credit) 5% Endorsement ML Delete an Identified Other Structure $2. Credit Endorsement ML Satellite Dish $ 4 per $1,000 of Insurance Endorsement ML-48 Rates 2

32 7.4 Earthquake - Rates per $1,000 of Insurance * FRAME ALL OTHERS Forms ML-1R, ML-2, ML-3 $.20 $.40 Form ML Higher Limits of: Coverages B, D Coverage C Endorsement ML-54 * Coverage for Masonry Veneer is Optional REFER TO ENDORSEMENT - IF THE SPECIAL EXCLUSION APPLIES, RATE AS "FRAME". IF NOT, RATE AS "ALL OTHERS". 7.5 Tenant s Improvements and Betterments Form ML-4 $ 3 per $1,000 of Insurance Endorsement ML Condominium Unit-Owners Supplemental Coverages Per $1,000 of Insurance Additions and Alterations Higher Limits $ 3 Endorsem ent ML-31 Special Coverage Basic Limits $ 2 Higher Limits $ 4 Endorsement ML-32 Earthquake Coverage Endorsement ML-54 See Rates for Rule 7.4 Glass Breakage $ 10 per policy Endorsement ML-37 Rates 3

33 Endorsement ML-34 Millville Mutual Insurance Company Miscellaneous Real Property $ Unit Rental to Others Endorsement ML-33 Increase Basic Policy Premium by 25% Unit-Owners Private Structures $ 10 Endorsement ML Homeowners Association Loss Assessment INCREASE IN LIMIT OF LIABILITY PREMIUM 1ST $1,000 $ 10 NEXT 4,000 $ 6 NEXT 5,000 $ 4 EACH ADD'L 5,000 $ 2 UP TO 50,000 Endorsement ML EARTHQUAKE LOSS ASSESSMENT COVERAGE See Rates for Rule 7.4 Endorsement ML Water Damage $ 20 (Sewers, Drains, and Sumps) FORM ML2 AND ML3 ONLY Endorsement ML-208 Rates 4

34 8.1 Personal Property - Rates per $1,000 of Insurance Increased Limit $2. Show Limit on Declarations Page In Rental Units $9. Endorsement ML Replacement Value (Personal Property) Forms ML-1R, 2, 3 Increase Basic Policy Premium by 10% Form 4 Increase Basic Policy Premium by 45% Minimum Additional Premium - All Forms $25. UNDERWRITING NOTE: For Coverage A less than $50,000 Increase Coverage C limit to 70% of Coverage A. Minimum limit ML-4 $15,000 for replacement value coverage. Endorsement ML Money and Securities RATE PER AMOUNT MAX ADD'L OF INSURANCE AMOUNT Money $ 6 $ 100 $ 500 Securities $ 4 $ 100 $ 500 Endorsement ML Unscheduled Jewelry, Watches and Furs $ 9 $ 500 $1,500 Endorsement ML Guns $ 2 $ 100 Endorsement ML Silverware, Goldware and Pewterware $.30 $ 100 $9,000 Endorsement ML-65 Rates 5

35 RATE PER AMOUNT MAX ADD'L OF INSURANCE AMOUNT 8.7 Business Property On Or Away on premises From Premises $ 1 $ 100 $7, Scheduled Personal Property - Refer to Inland Marine Endorsement ML-61 and ML-61A 8.9 Credit Card and Depositors Forgery AGGREGATE LIMIT PREMIUM Endorsement ML-30 $ 500-1,000-2,500 $ 2 5,000 $ 3 7,500 $ 4 10,000 $ Refrigerated Food Products Endorsement ML Home Computer $ 5 $ 500 $ 500 Data Processing Equipment $.50 $ 100 Software $.50 $ 100 Media -Higher Limits $.50 $ 100 UNDERWRITING NOTE: Rates shown apply to $100 deductible. If other deductible amounts apply, manual credits or surcharges will be applied. Endorsement ML-170 Rates 6

36 8.12 Electronic Devices Endorsement ML-65 Millville Mutual Insurance Company RATE PER AMOUNT MAX ADD'L OF INSURANCE AMOUNT $ 2 $ Additional Living Expense $ 1 $ 1,000 Show Limit on Declarations Page 8.14 All Terrain Vehicles (ATVs) RULE 9 Premium Formula: Total premium = $25 x (coverage/1000) x deductible factor x engine size factor Minimum premium = $50 Deductible Factor Engine Size Factor cc cc cc 1.25 over 450 cc 1.45 OPTIONAL SECTION II - LIABILITY COVERAGES EACH LIMITS:,000 OMITTED: INCL $500 MED ADD'L $500 MED $25 $ 50 $100 $300 $500 Described Residence Premises 1 or 2 family ** $ -5 $ -3 $ - $ 14 $ 18 $ 3 3 family family ** For a 2 family unit, add ML-70 and rate per Rate 8.1. Residence Employees $ 3 $ 4 $ 4 $ 5 $ 6 $ 3 Show on Declarations Page Rates 7

37 EACH LIMITS:,000 OMITTED: INCL $500 MED ADD'L $25 $ 50 $100 $300 $500 $500 MED Additional Residence Premises Occupied By Insured $ 5 $ 6 $ 7 $ 9 $ 10 $ Rented to Others 1 family $ 8 $ 9 $ 10 $ 12 $ 13 $ 3 2 family Endorsement ML Waterbed Liability Form ML-4 only $ 15 $ 18 $ 20 $ 26 $ 29 $ - Note: Does Not Include Med Pay Endorsement ML Business Pursuits Clerical $ 2 $ 2 $ 2 $ 3 $ 3 $ Salespersons - No Inst W/Inst Teachers Teachers-Noc Corporal Punishment* Note: *Does Not Include Med Pay Endorsement ML Office, Professional, Private School or Studio Occupancy On or Off Premises or Professional Instruction on Premises $ 5 $ 6 $ 7 $ 9 $ 10 $ 3 Note: This charge applies for each such exposure Endorsement ML-42 - On Premises Endorsement ML-43 - Off Premises Rates 8

38 9.5 Incidental Business Occupancies -- Section II Eligibility A homeowners may be written on a risk where the dwelling contains an incidental business as long as the dwelling is the insured's principal residence and the incidental business - Is owned solely by the named insured, - Does not exceed 750 sq. ft., - Does not employ any paid employees, and - Does not exceed annual receipts of $15,000. An incidental business occupancy is permitted in a separate building structure on the premises if it complies with eligibility above and there is no store front. Underwriting Approval Each risk is subject to final home office approval. Rate Rate Class Per Class **Child Care Service - Maximum three children Child 1 Medical Payments limited to $500 **Repair Shops - No Motorized Equipment Shop 3 Mechanical or Electrical Equipment only (Examples: bicycles - musical instruments - TV etc) **Kennels - Grooming - boarding - breeding or sales Kennel 3 Maximum six kennels *Roadside Stands - Insured's grown produce only Receipts 1 **Stores Store 3 **Tailoring or Dressmaking Receipts 1 **Woodworking, Crafts or Upholstering Receipts 2 **Studios - Instructional - processing or service Studio 2 (Examples: photo - duplicating - music - dance etc) Annual charge for off-premises exhibits used in conjunction with one of the above incidental exposures: Limited to no more than three exhibits per year at locations where lessor has premises liability. (In addition to occupancy charge) 1 *Attach Endorsement ML-326 (Including Products) **Attach Endorsement ML-327 (Excluding Products) INCIDENTAL BUSINESS EXPOSURES PERSONAL LIABILITY/MEDICAL PAYMENTS RATE CLASS LIMITS $ 25,000/$500 $18 $28 $38 $ 50,000/$500 $21 $33 $44 $ 100,000/$500 $22 $35 $47 $ 300,000/$500 $25 $40 $54 Additional $500 Med Pay $ 3 $ 3 $ 3 RATE RECEIPTS PER $1000 Rates 9

39 LIMITS:,000 OMITTED: INCL $500 MED EACH ADD'L 9.6 Outboard Motors and Watercraft $25 $ 50 $100 $300 $500 $500 MED Each Outboard Motor HP $ 5 $ 6 $ 7 $ 9 $ 10 $ 3 Over 50 HP Inboard or Inboard/Outboard Motorboats and Sailboats* Under 16 MPH 25 ft or less $ 12 $ 14 $ 16 $ 21 $ 23 $ ft Over 40 ft MPH 25 ft or less $ 25 $ 30 $ 33 $ 44 $ 49 $ ft Over 40 ft Over 30 MPH 25 ft or less $ 62 $ 73 $ 81 $108 $121 $ ft Sailboats - No Auxiliary Power ft $ 25 $ 30 $ 33 $ 44 $ 49 $ 3 *Charges Not Applicable to Sailboats Under 26 ft Endorsement ML Personal Injury $ 7 $ 8 $ 9 $ 12 $ 14 $ - Note: Does Not Include Med Payments Endorsement ML Incidental Farming $ 20 $ 24 $ 26 $ 35 $ 39 $ 3 Endorsement ML-320 Rates 10

40 LIMITS:,000 OMITTED: INCL $500 MED EACH ADD'L 9.9 Farmers Comprehensive Personal Liability Initial Farm Exposure Form ML-10 $25 $ 50 $100 $300 $500 $500 MED Acres $ 29 $ 34 $ 38 $50 $ 57 $ Over Each Additional Farm Premises $ 5 $ 6 $ 7 $ 9 $ 10 $ 3 Form ML Unfenced Inground Pools; Ownership of Dangerous, Guard, or Protection Type Dog(s); or Trampolines $5 Credit per policy Form ML-600 or ML All Terrain Vehicle (ATV) Liability Rate Limit (occurrence/aggregate) Form $39.00 $ 100,000 / $ 300,000 ATV-L $59.00 $ 300,000 / $ 300,000 ATV-L3 10 Additional and Secondary Locations Credit for Section II - $16 Rates 11

41 AGENT'S NOTES