PERSONAL AUTO MANUAL

Transcription

1 PERSONAL AUTO MANUAL TABLE OF CONTENTS ITEM RULE # PA PAGE Antique Autos Application Procedure Artisan Rating Factor Auto Loan/Lease Coverage Campers (See Pickup Camper Bodies and Toppers) Cancellation/Nonrenewal Changes Classic Autos Classification Definitions Age, Sex and Marital Status Classifications (Of Operator) Use Classifications Classification Procedure Classification Changes Multi-Car Risks Primary Classification Secondary Classification Single Car Risks Coverages - Limits and Deductibles Base Rates Deductible Insurance Medical Payments Physical Damage for Vehicles Over 10 Years Old Split Liability Limits Uninsured Motorists Coverage Customizing Equipment Coverage Definitions Artisan Vehicles Farm Family Corporations and Partnerships Farm Truck Federal Government Employees Pickups and Vans Private Passenger Auto Discounts Anti-Theft Companion Policy Accident Prevention Course Good Student Household Mature Driver Multi-Car Passive Restraint Electric Autos Eligibility Personal Auto Policy Eligibility Vehicles and Drivers Employers Non-ownership Liability Excess Electronic Equipment Cov. & Tapes, Records, Disks & Other Media Cov Extended Non-Owned Coverage (Borrowed Or Rented Autos) Oklahoma (Ed. 006) New Business North Star Mutual Ins. Co. Renewals

2 PERSONAL AUTO MANUAL TABLE OF CONTENTS CONTINUED ITEM RULE # PA PAGE Farm Truck Rating Factor Table Installment Premium Payment Option Insurance Score Loan/Lease Coverage Motor Homes Named Non-Owner Coverage Nonrenewal (See Cancellation/Nonrenewal) Optional Limits Transportation Expenses Coverage (Rental Expense Cov.) Pickup Camper Bodies and Toppers Policy Period and Continuation Premium Calculation Steps Premium Determination Premium Determination - Farm Trucks Premium Procedures Bad Check Charge Down Payment Requirements Endorsements New Business Non-Payment Renewals Pro-Rata Changes Questionable Applicants Rate Change Rates For Symbols Not Displayed Rating Factors and Statistical Codes Primary Classifications Secondary Classifications Rating Territories and Factors Rating Tier Selection And Factors Auto Discount Selection Guide Roadside Assistance Safe Driver Insurance Plan (SDIP) Administration of SDIP Combination Accidents and Convictions Definitions Driving Record Sub-Classification Multi-Car Risk Schedule of Endorsements Suspension Symbol Determination for Pickups, Vans, Farm Trucks and Unlisted Vehicles Towing and Labor Costs See Roadside Assistance Trailers Designed for Use with Private Passenger Autos Transportation Expenses Coverage Optional Limits (Rental Expense Cov.) Trusts as Additional Insureds Undesirable Vehicles Whole Dollar Premium Territory Definitions... T-1 T-3 Oklahoma (Ed. 007) New Business North Star Mutual Ins. Co. Renewals

3 PERSONAL AUTO MANUAL RULE 1 - PERSONAL AUTO POLICY - ELIGIBILITY A. A Personal Auto Policy will be used to provide coverage to private passenger autos, and motor vehicles considered as private passenger autos in RULE 2 if: 1. They are written on a specified auto basis; and 2. They are owned by an individual or by spouses who are residents in the same household. Both spouses who are residents in the same household may be listed as named insureds on the declarations page. B. A Personal Auto Policy will be used to provide coverage to private passenger autos, pickups, and vans that are owned jointly by two or more: 1. Resident relatives other than spouses; or 2. Resident individuals; or 3. Non-resident relatives, including non-resident spouses; if: a. They are written on a specified auto basis; and b. The Joint Ownership Coverage endorsement is attached. C. A Personal Auto Policy will be used to provide coverage to motor homes if: 1. They are written on a specified vehicle basis; 2. They are owned by an individual, by spouses who are residents of the same household, or by two or more resident relatives; and 3. The Miscellaneous Type Vehicle Endorsement is attached. D. Private Passenger Autos owned by corporations, co-partnerships, or unincorporated associations are not eligible. Exception: Private Passenger Autos owned by farm family co-partnerships or farm family corporations principally garaged on a farm or ranch shall be classified and rated in accordance with RULES 3 and 4, provided that vehicle is not used in an occupation other than farming or ranching. E. A Personal Auto Policy will be used to provide coverage to farm trucks provided they meet the requirements in RULE 1, Paragraph A. and are not used to haul for others or for hire. F. NAMED NON-OWNER PP A Personal Auto Policy may be used to provide coverage to a named individual who does not own an auto. The named non-owner coverage endorsement must be attached. This coverage may be used for existing accounts only. Not to be used on new business. RULE 2 - DEFINITIONS A. 1. PRIVATE PASSENGER AUTO A private passenger auto is a four wheel motor vehicle, other than a truck type, owned or leased under contract for a continuous period of at least six months, and: a. Not used as a public or livery conveyance for passengers; b. Not rented to others; or c. not enrolled in a personal vehicle sharing program or being used in connection with such a sharing program. Oklahoma (Ed. 005) New Business North Star Mutual Ins. Co. PA - 1 Renewals

4 RULE 2 - DEFINITIONS (Continued) 2. PICKUPS AND VANS A pickup or van shall be considered a private passenger auto, if it: a. Is owned by an individual or by spouses who are residents of the same household; b. Has a Gross Vehicle Weight Rating of 10,000 lbs. or less; and c. Is not used for the delivery or transportation of goods or materials unless such use is: 1) Incidental to the insured s business of installing, maintaining or repairing furnishings or equipment as an Artisan (see definition of Artisan Vehicle below); or 2) For farming or ranching. 3. FEDERAL GOVERNMENT EMPLOYEES PP A pickup or van used in the business of the United States Government, by an employee of the Government, shall be considered a private passenger auto only if: a. It meets the conditions in 2.a., 2.b. and 2.c. above; and b. Coverage is limited in accordance with the federal employees using autos in government business endorsement. 4. FARM FAMILY CORPORATIONS AND PARTNERSHIPS NSG-PA02 A motor vehicle owned by a farm family co-partnership or farm family corporation shall be considered a private passenger auto owned by two or more relatives who are residents of the same household if: a. It is principally garaged on a farm or ranch; and b. It otherwise meets the definitions in 1. and 2. above. 5. FARM TRUCK NSG-PA04 A farm truck is a truck type motor vehicle, including semi-tractors which is used for farming purposes, but which is not used for pleasure, commuting to work or hauling for hire. 6. ARTISAN VEHICLE An artisan vehicle is a pickup, van or SUV with a Gross Vehicle Weight Rating of 10,000 lbs. or less. The use must not be for the delivery or transportation of goods or materials unless such use is incidental to the insureds business of installing, maintaining or repairing furnishings or equipment. (i.e. carpenter, electrician, plumber, plasterer, or painter) B. AUTO as used in this manual refers to a private passenger auto or a vehicle considered as a private passenger auto. C. LIABILITY as used in this manual refers only to Bodily Injury and Property Damage Coverages. D. OTHER THAN COLLISION (OTC) COVERAGE as used in this manual refers to other than collision damage to a motor vehicle. E. OWNED as used in this manual includes an auto leased under contract for a continuous period of at least six months. If an auto lease contract requires the lessee to provide primary insurance for the lessor, attach the additional insured-lessor endorsement. F. GROSS VEHICLE WEIGHT RATING as used in this manual refers to the maximum loaded weight for which a single vehicle is designated, as specified by the manufacturer. Oklahoma (Ed. 003) New Business North Star Mutual Ins. Co. PA - 2 Renewals

5 RULE 3 - CLASSIFICATION DEFINITIONS A. USE CLASSIFICATIONS 1. BUSINESS USE means that the use of the auto is required by or customarily involved in the duties of the applicant or any other person customarily operating the auto, in an occupation, profession or business, other than going to or from the principal place of occupation, profession or business. 2. FARM USE means the auto is principally garaged on a farm or ranch, and: a. It is not customarily used in going to or from work other than farming or ranching; b. It is not customarily used in going to or from school; c. It is not customarily used in any occupation other than farming or ranching; and d. A substantial portion of the insured s income is derived from active farming or ranching. 3. PLEASURE USE means: a. No BUSINESS USE; and b. Personal use, including driving to or from work or school: 1) Less than 3 road miles one way; and 2) 3 or more, but less than 15, road miles one way for not more than 2 days per week or not more than 2 weeks in any 5 week period. 4. WORK LESS THAN 15 MILES means: a. No BUSINESS USE; and b. Personal use, including driving to or from work or school: 1) 3 or more, but less than 15, road miles one way if such usage is more than 2 days per week or more than 2 weeks per 5 week period; or 2) 15 or more, but less than 30, road miles one way, for not more than 2 days per week or not more than 2 weeks in any 5 week period. 5. WORK 15 OR MORE BUT LESS THAN 30 MILES means: a. No BUSINESS USE; and b. Personal use, including driving to or from work or school: 1) 15 or more, but less than 30, road miles one way more than 2 days per week or more than 2 weeks in any 5 week period; or 2) 30 or more road miles one way for not more than 2 days per week or not more than 2 weeks in any 5 week period. 6. WORK 30 OR MORE MILES means: personal use including driving to or from work or school 30 or more road miles one way more than 2 days per week or more than 2 weeks in any 5 week period. 7. An auto driven part way to or from work or school, such as to a railroad or bus depot, whether or not the auto is parked at the depot during the day, shall be considered as driving to or from work or school. 8. An auto used by a member of the clergy shall not be considered as used for business or driven to and from work. Rate as pleasure use. LIABILITY COVERAGE ONLY 9. An auto used in the business of the U.S. Government by one of its employees may be classified and rated as PLEASURE USE, WORK LESS THAN 15 MILES or WORK 15 OR MORE MILES when the Federal Employees Using Autos In Government Business endorsement PP is used to limit coverage. Oklahoma (Ed. 002) New Business North Star Mutual Ins. Co. PA - 3 Renewals

6 RULE 3 - CLASSIFICATION DEFINITIONS (Continued) B. AGE, SEX AND MARITAL STATUS CLASSIFICATIONS 1. YOUTHFUL OPERATOR means an applicant or any other operator resident in the same household as the applicant, who customarily operates the auto, and is one of the following: a. YOUTHFUL UNMARRIED FEMALE OPERATOR - unmarried female age 24 and younger; b. YOUTHFUL MARRIED MALE OPERATOR - married male age 24 and younger; c. YOUTHFUL UNMARRIED MALE OPERATOR - unmarried male age 24 and younger who is not an owner or principal operator; or d. YOUTHFUL UNMARRIED MALE OWNER OR PRINCIPAL OPERATOR - unmarried male age 24 and younger who is an owner or principal operator. 2. OPERATORS AGE 50 AND OVER a. The Operator Age Class shall apply if the operator of the auto is age 50 to 64. b. The Operator Age Class shall apply if the operator of the auto is age 65 to 74. c. The Operator Age 79 or Over Class shall apply if the operator of the auto is age 79 or over. d. If all operators in the household are age 50 or over, the above classes shall apply to all autos. e. If there are operators in the household under age 50: 1) Any youthful operator class shall apply in accordance with the youthful operator rules. 2) The age of the operator shall be disregarded for the purposes of rating automobiles in excess of the number of operators age 50 and over (unless a youthful operator classification is applicable). 3) Autos principally operated by an adult under age 50 shall be rated at the All Other or Only Operator Female Age Classification (unless a youthful operator classification is applicable). 3. AGE means the age attained on the last birthday. 4. MARRIED means a married person living with his or her spouse and includes a person widowed, divorced or legally separated only if such person has custody of one or more resident children. 5. PRINCIPAL OPERATOR means: a. An individual whose operation of the auto constitutes 50% or more of its time or mileage use is considered a principal operator. b. Each individual who does not qualify as a principal operator as defined in a. above but whose aggregate operation of all private passenger automobiles in the household equals 50% or more of the total time or mileage use of one insured automobile is considered a principal operator for one such automobile. c. If two or more unmarried males age 24 and younger do not individually qualify as principal operator but their combined use of the automobile constitutes 50% or more of its total time or mileage use, the automobile is considered as having a principal operator of the same age as the unmarried male age 24 and younger who is the most frequent operator. The same interpretation applies to situations involving two or more unmarried females age 24 and younger. d. When two or more vehicles are insured for a principal operator with a youthful driver class code, the youthful operator - principal driver factor will apply to the highest rated vehicle whether principally operated or not. The all other class factor will apply to the other vehicles insured. Oklahoma (Ed. 004) New Business North Star Mutual Ins. Co. PA - 4 Renewals

7 RULE 3 - CLASSIFICATION DEFINITIONS (Continued) 6. RESIDENT means anyone residing in the same household. Exceptions: a. A person in active military service with the armed forces of the United States of America is not considered a resident in the applicant s household unless this person customarily operates the auto. This applies to military assignment after basic training. b. If a YOUTHFUL UNMARRIED FEMALE OPERATOR is a student residing at an educational institution over 100 road miles from the address of the named insured shown on the declarations and does not have a car with her, she is rated under the All Other class on the highest rated vehicle. This does not apply to OTC only vehicles. c. If a YOUTHFUL UNMARRIED MALE OPERATOR is a student residing at an educational institution over 100 road miles from the address of the named insured shown on the declarations and does not have a car with him, he is rated as if he is MARRIED. This does not apply to OTC only vehicles. Note: For the purpose of Exception c., if the rating factor for a married youthful operator is greater than the factor for an unmarried youthful operator, use the lower factor and corresponding statistical code. RULE 4 - CLASSIFICATION PROCEDURE Refer to RULE 3 - CLASSIFICATION DEFINITIONS for definitions of terms used in this rule. A. Autos owned by an individual, or owned jointly by two or more relatives or resident individuals are classified as follows: 1. PRIMARY CLASSIFICATION a. Classify the auto according to the age, sex and marital status of the operators, the use of the auto and the eligibility of youthful operators Good Student classes, and b. Determine the applicable factor from the Primary Rating Factor tables. Note: The exposure increases considerably when a youthful driver is first learning to drive. It is therefore required that when a youthful driver can legally drive unsupervised, he or she be added to the policy as a driver and the appropriate youthful driver classification be applied on the next renewal date. 2. SECONDARY CLASSIFICATION a. Determine if the auto is: 1) A single car; or 2) Part of a multi-car risk. b. Refer to the Safe Driver Insurance Plan to classify operators according to the provisions of the Plan. c. Refer to the Secondary Rating Factor table to determine the appropriate factor to be added to, or subtracted from the Primary Rating Factor to determine the Total Rating Factor. 3. The applicable Youthful Operator Classifications shall be applied as follows: Determine the number of Youthful Operators and the Primary Rating Factor for each at the Pleasure Use Classification. a. If there are more cars than Youthful Operators, or an equal number of cars and Youthful Operators, assign operators to cars as follows: 1) Each principal Youthful Operator to the car principally operated; 2) Remaining Youthful Operators to remaining cars in the order of highest rated Youthful Operator to the car with the highest Total Base Premium without regard to the cars operated; and 3) Any remaining cars at the appropriate No Youthful Operator classification. 4) If an insured is provided with a company vehicle that vehicle will be considered as their primary auto and therefore that person should not be rated on a vehicle on the policy. Oklahoma (Ed. 004) New Business North Star Mutual Ins. Co. PA - 5 Renewals

8 RULE 4 - CLASSIFICATION PROCEDURE (Continued) b. If there are more Youthful Operators than cars, assign Youthful Operators to cars as follows: 1) Select the Youthful Operators with the highest Pleasure Use rating factors equal to the number of cars. 2) Of those selected in paragraph 1), assign any principal operator to the cars they principally operate. 3) Of those remaining after principal operator assignment in paragraph 2), assign operators to cars in the order of highest rated Youthful Operator to the car with the highest Total Base Premium. After assigning Youthful Operators to cars on the basis of the primary Pleasure Use factors, each factor must be adjusted for the actual car use before determining and applying the Secondary Rating Factor. c. If the TOTAL BASE PREMIUM is the same for each car, the classification for any youthful operator who is not the principal operator of any of the autos is applied to the auto with the lowest rated use classification. TOTAL BASE PREMIUM is the sum of the base premiums for Bodily Injury and Property Damage Liability, Medical Payments, Other Than Collision (OTC) and Collision coverages that apply to the auto. 4. SINGLE CAR RISKS AND MULTI-CAR RISKS a. Single Car Risks If the number of youthful operators exceeds the number of autos, the Youthful Operator Classifications with the highest Primary Rating Factors apply. In determining such classifications, any Good Student qualification shall apply. b. Multi-Car Risks The applicable Multi-Car Rating Factor applies if more than one private passenger auto is owned by an individual or owned jointly by two or more resident relatives, and two or more such autos are insured in North Star for any of the following coverages: Bodily Injury Liability, Property Damage Liability, Medical Payments, Other Than Collision (OTC) or Collision insurance. The vehicle operators must be resident relatives of the insured's household. For purposes of this rule, a relative shall include the following persons: Spouse; Child, adopted child, stepchild or grandchild; Parent, stepparent or grandparent; Brother or stepbrother; or Sister or stepsister. Motor Homes, Farm Trucks, or trailers are not eligible for the Multi-Car discount and do not qualify other vehicles for the Multi-Car discount. B. CLASSIFICATION CHANGES Compute premium adjustments on a pro-rata basis when changes in Primary and Secondary Rating Classifications are made. This includes the addition or deletion of an operator during the policy term. Exceptions: 1. A policy shall not be changed mid-term because of the attained age of an operator of the auto. 2. A policy shall not be changed mid-term to affect a change in the Driving Record Sub-Classification. 3. A policy shall not be changed mid-term solely due to a change in symbol assignment based on a review of loss experience for vehicle series rating by the Insurance Services Office. Oklahoma (Ed. 003) New Business North Star Mutual Ins. Co. PA - 6 Renewals

9 RULE 5 - DISCOUNTS A. COMPANION POLICY DISCOUNT 1. A 20% Companion Policy Discount (for Select, Preferred and Five Star rated vehicles) applies on the auto premium for those insureds who have their Homeowners, Mobile Homeowners or Farmowners Policy with North Star Mutual Insurance Company. Tenants forms must carry a minimum amount of $30,000 on Coverage C. Apply the discount to each coverage requested on the application. There may be some variance due to rounding procedures. The vehicle operators must be resident relatives of the insured's household or students enrolled in school full time, as defined by the school. Dwelling Fire and Farm Fire policies do not apply. 2. The discount shall continue for each subsequent auto renewal, provided the individual continues to maintain the qualifying policy with North Star Mutual Insurance Company. 3. On existing policies, the discount will only be applied at renewal. 4. Qualification for the Companion Policy Discount assumes that all personal autos of the insured are being written with North Star Mutual. 5. Show the qualifying policy number in the REMARKS section of the application. B. MULTI-CAR DISCOUNT The applicable Multi-Car Rating Factor applies if more than one eligible private passenger auto is owned and operated by an individual or by two or more resident relatives and the vehicles are insured on the same policy. If the Multi-Car Discount applies, use the appropriate Multi-car rating factor shown in the Secondary Classifications table on page PA-42 of the Rating Factors and Statistical Codes. C. HOUSEHOLD DISCOUNT[RJ1] The Household Discount applies when there is only one eligible private passenger rated auto insured on the policy and a resident relative insures one or more eligible private passenger rated auto(s) on a separate policy in our company. This discount provides a -.19 rating factor which is applied to the primary rating factor. The discount may also apply if the insured only has one vehicle on the policy and is supplied a company car or has a separate commercial auto policy. It may also apply to non-traditional couples both insuring their autos with North Star on separate policies. The Household Discount and the Multi-Car Discount may not apply simultaneously on the same policy. D. ANTI-THEFT DISCOUNT These discounts apply to Other Than Collision (OTC) Coverage only. To qualify, the vehicle must be equipped with: 1. A hood lock which can be released only from inside the vehicle; and 2. A device meeting the criteria of either paragraph a. or b. below: a. Alarm ONLY (Coverage Code 1) and Active Disabling Devices (Coverage Code 2) A 5% discount on Other Than Collision (OTC) Coverage will be provided on vehicles equipped with 1) alarm only devices which sound an audible alarm that can be heard at a distance of at least 300 feet for a minimum of three minutes, or 2) active disabling devices which disable the vehicle by making the fuel, ignition or starting system inoperative. A disabling device is categorized as active if a separate manual step IS required to engage the device. b. Passive Disabling Device (Coverage Code 3) A 15% discount on Other Than Collision (OTC) Coverage will be provided on vehicles equipped with passive disabling devices which disable the vehicle by making the fuel, ignition or starting system inoperative. A disabling device is categorized as passive if a separate manual step is NOT required to engage the device. If a vehicle is equipped with more than one qualifying device, only the single highest discount shall apply. Refer to Company for required evidence of installation of anti-theft devices meeting the above criteria prior to granting a discount. Oklahoma (Ed. 007) New Business North Star Mutual Ins. Co. PA - 7 Renewals

10 RULE 5 - DISCOUNTS (Continued) E. PASSIVE RESTRAINT DISCOUNT The following discounts apply to Medical Payments Coverage ONLY. To qualify, the private passenger auto must be equipped with a factory installed automatic occupant restraint conforming to the federal crash protection requirements, and meeting the criteria of either paragraph 1. or 2. below: 1. 20% discount will be provided when the restraint is installed in the driver-side-only position % discount will be provided when the restraints are installed in both front outboard seat positions. F. ACCIDENT PREVENTION COURSE DISCOUNT (Defensive Driver) 1. A 5% Motor Vehicle Accident Prevention Course Discount shall be applied to the premiums for Bodily Injury Liability, Property Damage Liability, Medical Payments and Collision coverages provided: a. The auto is classified and rated as a private passenger auto; and b. The principal operator of the auto has a completion certificate, dated within the most recent 36 months, certifying successful completion of an accident prevention course approved by North Star (ATTACH PHOTOCOPY OF CERTIFICATE to application or request for discount). The course must not be a self-instructed course and must not be required by a court order resulting from a motor vehicle violation or an alcohol or drug-related offense. An approved course shall provide for a minimum of six hours of actual classroom or field driving instruction. 2. The discount applies as follows: a. To new and renewal policies with inception dates within the 36-month period following the course completion date. b. Only to the motor vehicle principally operated by the insured with the course completion certificate. c. Only once to each such motor vehicle regardless of the number of operators with course completion certificates. 3. The discount shall not apply if the operator who completed the course: a. Is eligible for a Driver Training Classification according to the Personal Auto Manual; or b. Has been assigned one or more points under the Safe Driver Insurance Plan as a result of accidents or convictions. G. GOOD STUDENT DISCOUNT The applicable Good Student Classification in the Primary Classification Rating Table applies provided: 1. The owner or operator is a full time high school, college or university student. A full time student means a student enrolled in school full time, as defined by the school. 2. A certified statement from a school official is presented to the Company on each annual anniversary date of the policy indicating that the student has met one of the following requirements during the immediately preceding school semester: a. Is in the upper 20% of his/her class scholastically; b. Maintains a B average, or its equivalent. If the letter grading system cannot be averaged, then no grade can be below B ; c. When in a school maintaining a numerical grade, must have at least a 3 in a 4, 3, 2, 1 point system or its equivalent; or d. Student is included in a Dean s List, Honor Roll or comparable list indicating scholastic achievement. Oklahoma (Ed. 003) New Business North Star Mutual Ins. Co. PA - 8 Renewals

11 RULE 5 - DISCOUNTS (Continued) 3. The Good Student discount will stay in effect through age 24 even if the owner or operator is no longer a full-time student if the owner/operator graduated from Vocational School, College, or University and was eligible during the last semester attended. Current Business - The Good Student Discount will be continued only if a new certificate is sent to the Home Office annually. The Home Office will send a notice to the agent approximately 90 days prior to the renewal date, stating that a new Good Student Certificate is required. It is then the agent s responsibility to forward the new certificate to the Home Office prior to the renewal notice being issued. This means that we must receive it no later than 45 days prior to the renewal date. Midterm class changes to apply the Good Student Discount will be processed using the current date. Back dating the effective date is not permitted. H. MATURE DRIVER DISCOUNT Any driver in the age group receives the best rating factors available. Generally, the discount is 15% as compared to younger age groups. RULE 6 - SAFE DRIVER INSURANCE PLAN (SDIP) A. DEFINITIONS 1. DRIVING RECORD POINTS a. Convictions Points shall be assigned for convictions during the experience period for motor vehicle violations of the applicant or any other current resident operator as follows: 1) One-half point is assigned for conviction of any moving traffic violation by any driver under the age of 30 which is not assigned under one of the following paragraphs (This is limited to the first two convictions during the experience period). 2) One point shall be assigned for the conviction of any moving traffic violation resulting in: a) Suspension or revocation of an operator's license; b) The filing of evidence of financial responsibility under any Financial Responsibility Law required as of the effective date of the policy; or c) The third and successive convictions not qualifying under paragraphs one and four of this section by a driver under age 30. 3) Two points shall be assigned for: a) the accumulation of points under a State Point System or a series of convictions requiring the filing of evidence of Financial Responsibility under any Financial Responsibility Law as of the effective date of the policy; or b) Conviction of reckless driving. 4) Three points are assigned for conviction of: a) Driving while intoxicated or under the influence of drugs; b) Failure to stop and report when involved in an accident; c) Homicide or assault arising out of the operation of a motor vehicle; d) Driving while license is suspended or revoked; or e) Driving a motor vehicle at an excessive rate of speed and/or in a reckless manner where an injury to person or damage to property results. b. Accidents Points shall be assigned for each accident that occurred during the experience period, involving the insured or operator of the vehicle, who is 50% or more at fault. 1) One-half point is assigned for each auto accident that results in total amount paid under Bodily Injury, Property Damage, Medical Payments and Collision less than $2,000. Oklahoma (Ed. 003) New Business North Star Mutual Ins. Co. PA - 9 Renewals

12 RULE 6 - SAFE DRIVER INSURANCE PLAN (SDIP) (Continued) 2) One point is assigned for each auto accident that results in: a) Total amount paid under Bodily Injury, Property Damage, Medical Payments and Collision of $2,000 or more; or b) A loss experienced under the OTC (Comprehensive) Coverage portion of the policy in which an at fault accident that would normally be paid under Collision Coverage, but glass breakage is paid under the OTC Coverage. 3) One point is assigned if, during the experience period there were two or more accidents each of which resulted in payment but have not been assigned a point under 2) above. 4) Chargeable losses resulting from the operation of a farm truck, motor home, artisan vehicle or an antique auto are subject to the provisions of the Safe Driver Insurance Plan. Exceptions: 1) No points are assigned for accidents incurred by an operator demonstrated to be a named insured or a principal operator of an auto insured under a separate policy in this Company. In this situation the points will be assigned to the policy on which the operator is a named insured or principal operator. 2) No points are assigned for accidents occurring under the following circumstances: a) Auto lawfully parked; b) The applicant, owner or other resident operator involved in an accident is (1) Determined to be 50% or less negligent, or (2) Reimbursed for 50% or more of his or her damages by, or on behalf of persons involved in the accident; c) Auto is struck in the rear by another vehicle and the applicant or other resident operator has not been convicted of a moving traffic violation in connection with this accident; d) Operator of the other auto involved in the accident was convicted of a moving traffic violation and the applicant or resident operator was not convicted of a moving traffic violation in connection with the accident; e) Auto operated by the applicant or any resident operator is struck by a hit-and-run vehicle, if the accident is reported to the proper authority within 24 hours by the applicant or resident operator; f) Accidents involving damage by contact with animals or fowl; g) Accidents involving Physical Damage, limited to and caused by flying gravel, missiles, or falling objects; h) Accidents occurring when using auto, regardless of ownership, in performance of a duty if the operator of the auto at the time of accident was a paid or volunteer peace officer, firefighter, operator of emergency vehicles, or member of any law enforcement agency. This exception does not include an accident occurring after the auto ceases to be used in performance of duty; or i) The applicant or any current resident operator involved in an accident was not at fault. This exception does not apply if the applicant or resident operator was convicted of: Homicide or assault arising out of the operations of a motor vehicle; or Driving while intoxicated or under the influence of drugs. Oklahoma (Ed. 001) New Business North Star Mutual Ins. Co. PA - 10 Renewals

13 RULE 6 - SAFE DRIVER INSURANCE PLAN (SDIP) (Continued) c. One point is assigned if, during the experience period there was one-half point assigned under convictions and one-half point assigned under accidents. d. Refund of Surcharged Premium If a point has been assigned for an accident and it is later determined that the accident falls under one of the exceptions in this rule, North Star shall refund to the insured the increased portion of the premium generated by the accident. 2. EXPERIENCE PERIOD The experience period shall be the three years immediately preceding the date of application or the preparation of the renewal. However, consideration may be given for a period of not more than five years for the following: a. An insured who has been convicted of: 1) Homicide or assault arising out of the operation of any motor vehicle; or 2) A violation of Section or 761 of Title 47 of the Oklahoma Statutes as being impaired by or under the influence of alcohol or intoxicating liquor or who was under the influence of any substance included in the Uniform Controlled Dangerous Substances Act; b. An offense of reckless driving as provided for in Section of Title 47 of Oklahoma Statutes. A one month grace period may apply, which takes into consideration accidents or convictions within 30 days of dropping off. B. DRIVING RECORD SUB-CLASSIFICATION The driving record sub-classification shall be determined from the number of Driving Record Points accumulated during the 3-year experience period as follows: C. MULTI-CAR RISK 1. SINGLE CAR Number of Driving Record Points Driving Record Sub-Classification or more 4 Points attributable to each driver shall be compiled separately and the total of all drivers shall determine the surcharge for that vehicle. 2. TWO CAR RISK The Driving Record Sub-Classification, as determined above, shall apply to each auto as shown under the Multi-Car Section in the Secondary Table. 3. THREE OR MORE CAR RISK Any points developed under SDIP are assigned to the two cars with the highest Total Base Premiums. The remaining autos are rated at Sub-Class O. TOTAL BASE PREMIUM is the sum of the base premium for Bodily Injury and Property Damage Liability; Medical Payments; Other Than Collision (OTC); and Collision Coverages that apply to the auto. D. COMBINATION ACCIDENTS AND CONVICTIONS If a conviction and a chargeable accident result from the same occurrence, only the conviction or the accident developing the highest number of points shall be counted and the resulting rating points shall be used in determining the surcharge. Oklahoma (Ed. 002) New Business North Star Mutual Ins. Co. PA - 11 Renewals

14 RULE 6 - SAFE DRIVER INSURANCE PLAN (SDIP) (Continued) E. ADMINISTRATION OF SDIP 1. NEW BUSINESS a. Initial information necessary to assign the proper Driving Record Sub-Classification shall be obtained from an application signed personally by the applicant. b. The signature of the applicant on all applications received from an agent shall be certified by such agent. 2. RENEWAL BUSINESS Information necessary to assign proper renewal Driving Record Sub-Classification shall be determined from any one or combination of the following: a. Company s own records; b. Motor Vehicle records; or c. An application signed by the applicant and producer. RULE 7 - PREMIUM DETERMINATION Bodily Injury and Property Damage Liability; Medical Payments, Other Than Collision (OTC) and Collision premiums are determined as follows: A. Refer to the AUTO DISCOUNT SELECTION GUIDE to determine the eligibility requirements for the Select rate. If additional criteria are met, the Preferred or Five Star discounts may be applicable. B. Refer to the Rating Factors and Statistical Codes Rule to determine the applicable Classification, Rating Factor and Statistical Code. C. Refer to the ISO Symbol and Identification Manual for the appropriate symbol of the auto. When model year is used in rating and the rates for a model year are not displayed in the rate pages, use the rates shown for the latest model year. Refer to chart shown in RULE 10 for determination of symbols on pickups, vans, farm trucks and unlisted vehicles. D. Refer to Territory Definitions to determine the territorial schedule code number for the location where the auto is principally garaged. Note: When a risk is statutorily required to have, or is eligible for, a coverage that is not available in the territory of principal garaging, use the registration address to determine the territory for that coverage. E. Refer to Rule 9.A. to determine base rates for the desired coverage. F. For Stated Amount Coverage multiply the rate by the limit of liability to determine the Base Premium. G. The premium for each coverage is determined by multiplying the base rate by the appropriate rating factors. (See RULE 8 - PREMIUM CALCULATION STEPS) H. Apply the Undesirable Vehicle Surcharge if applicable. Refer to RULE 41. I. When a surcharge is applicable under the Certified Risk - Financial Responsibility Laws Rule, the surcharge is to be applied as outlined in RULE 6 - SAFE DRIVER INSURANCE PLAN (SDIP). Oklahoma (Ed. 001) New Business North Star Mutual Ins. Co. PA - 12 Renewals

15 RULE 8 - PREMIUM CALCULATION STEPS After each calculation, round to the nearest whole dollar. If a particular rating item is not applicable for a particular coverage or vehicle, go to the next step. BI/PD Liability Medical Payments Uninsured Motorists Coverages Other Than Collision Ext. Trans. Exp., Excess Electrical Equip. Calculation Steps Collision Base Rate x Rating Tier Factor x x N/A x x N/A x Territory Factor x x x x x N/A x Model Year/Symbol Relativity N/A N/A N/A x x N/A x Limit Factor x x x N/A N/A N/A x Deductible Factor N/A N/A N/A x x N/A x Accident Prevention Course Discount x x N/A N/A x N/A x Driver Class Factor (Primary +/- Secondary) x x N/A x x N/A x Anti-Theft Discount N/A N/A N/A x N/A N/A x Passive Restraints N/A x N/A N/A N/A N/A x Insurance Score Factor x x x x x x x Companion Policy Discount x x x x x x = Premium = = = = = = Oklahoma (Ed. 003) New Business North Star Mutual Ins. Co. PA - 13 Renewals

16 RULE 9 - COVERAGES - LIMITS AND DEDUCTIBLES A. BASE RATES Bodily Injury (25/50) Property Damage (25,000) Other Than Collision* ($100 Ded) Medical Payments (1,000) Non- Stacked Uninsured Motorist (25/50) Collision** Coverage ($250 Ded) Base Rate *For vehicles 2003 & Prior, multiply the base OTC rate by a factor of **For vehicles 2003 & Prior, multiply the base Collision rate by a factor of 0.70 Use ISO s 2014 Base Model Year and Symbol Relativities to calculate physical damage premiums. B. SPLIT LIABILITY LIMITS B.I. Limits (000) Factor P.D. Limits Factor 25/ , / , / , / **250, / **500/ ** Do Not Bind Coverage. Refer to the Home Office for eligibility. To write maximum limits, the risk should be without any accidents or violations in the past three years. Asset protection is the primary factor in high limit consideration. C. MEDICAL PAYMENTS Listed below are the available limits. Multiply the base rate by the limit factor shown: Limit Factor , , , ,000 25, Oklahoma (Ed. 011) New Business North Star Mutual Ins. Co. PA - 14 Renewals

17 RULE 9 - COVERAGES - LIMITS AND DEDUCTIBLES (Continued) D. UNINSURED MOTORISTS COVERAGE (Includes Underinsured Motorists Coverage) PP OWNERS a. Non-Stacked Uninsured Motorists Coverage This form of auto insurance will be provided on a non-stacked basis, at limits not less than Financial Responsibility limits, under every auto liability policy issued, delivered, renewed, or extended in the State of Oklahoma with respect to a motor vehicle registered or principally garaged in Oklahoma. Such offer shall be made on separate selection forms approved by the Oklahoma Insurance Commissioner. The form must be presented separately from the application. b. Increased Limits The named insured or applicant shall be offered the option to select increased limits up to, but not exceeding, the bodily injury liability limits in the policy. If increased limits are selected by the named insured or applicant, such selection shall apply to all motor vehicles registered or principally garaged in Oklahoma and all insureds under the policy. c. Exceptions (1) The named insured has the right to reject such coverage or select lower limits in writing. If this coverage is rejected by the named insured, or applicant, such rejection shall apply to all motor vehicles registered or principally garaged in Oklahoma and all insureds under the policy. (2) The written agreement to reject this coverage or select lower limits shall remain valid for the life of the policy unless the named insured requests this coverage or higher limits in writing. (3) The completion of a new selection form shall not be required on: (a) Subsequent renewal, reinstatement, substitute, replacement or amended policies issued to the same named insured by the same insurer or any of its affiliates; or (b) Any changes to an existing policy regardless of whether these changes create new coverage. d. Rates (1) Basic Limits are 25/50. Refer to Rule 9.A. for base rates. (2) Increased Limits For increased limits, multiply the base rate by the appropriate factor: Limit (000) Factor 25/ / / / / / e. Rates for multi-car risks are on a per vehicle basis. Apply these rates to each vehicle, including the first vehicle. f. The premium shall not be subject to modification under the provisions of any rating plan or other manual rule (except the Companion Policy Discount and Insurance Score). 2. NON-OWNERS If a named non-owned policy is extended to provide Uninsured Motorists Coverage, the rate for such extension of coverage shall be the same rate as that shown for Owners. Oklahoma (Ed. 004) New Business North Star Mutual Ins. Co. PA - 15 Renewals

18 RULE 9 - COVERAGES - LIMITS AND DEDUCTIBLES (Continued) E. PHYSICAL DAMAGE COVERAGE FOR VEHICLES TEN MODEL YEARS OLD AND OLDER Physical damage coverage on vehicles 10 through 14 model years of age may be written with the following minimum deductibles: Other Than Collision (OTC)... $100 Collision... $250 Do not bind physical damage coverage on vehicles 15 model years old or older. Additional consideration may be secured from the Home Office on farm trucks and vehicles eligible for stated amount coverage. A photograph is required for vehicles that are 15 model years old or older. (Vehicle age changes on October 1st of each year). F. DEDUCTIBLE INSURANCE 1. DEDUCTIBLE LIABILITY INSURANCE Deductible Liability Insurance is not available for vehicles classified and rated according to the rules of this manual. 2. OTHER THAN COLLISION (OTC) DEDUCTIBLE FACTORS $ ACV Deductible - Multiply the base OTC rate by $ 50 Deductible - Multiply the base OTC rate by $ 100 Deductible - Multiply the base OTC rate by $ 200 Deductible - Multiply the base OTC rate by $ 250 Deductible - Multiply the base OTC rate by $ 500 Deductible - Multiply the base OTC rate by $1,000 Deductible - Multiply the base OTC rate by $1,500 Deductible - Multiply the base OTC rate by $2,000 Deductible - Multiply the base OTC rate by $2,500 Deductible - Multiply the base OTC rate by COLLISION DEDUCTIBLE FACTORS $ 100 Deductible - Multiply the base Collision rate by $ 200 Deductible - Multiply the base Collision rate by $ 250 Deductible - Multiply the base Collision rate by $ 500 Deductible - Multiply the base Collision rate by $1,000 Deductible - Multiply the base Collision rate by $1,500 Deductible - Multiply the base Collision rate by $2,000 Deductible - Multiply the base Collision rate by $2,500 Deductible - Multiply the base Collision rate by Oklahoma (Ed. 005) New Business North Star Mutual Ins. Co. PA - 16 Renewals

19 RULE 10 - SYMBOL DETERMINATION FOR PICKUPS, VANS, FARM TRUCKS AND UNLISTED VEHICLES If the symbol for that particular vehicle is not shown in the symbol section, the physical damage premiums are based on LIST PRICE NEW and are assigned a symbol as follows: (For use with 2011 and subsequent Model Year vehicles) Symbol List Price New Symbol List Price New 01 $1 - $3, $35,001 - $36, $3,001 - $5, $36,001 - $37, $5,501 - $8, $37,001 - $38, $8,001 - $9, $38,001 - $39, $9,001 - $10, $39,001 - $40, $10,001 - $11, $40,001 - $41, $11,001 - $12, $41,251 - $42, $12,001 - $13, $42,501 - $43, $13,001 - $14, $43,751 - $45, $14,001 - $15, $45,001 - $46, $15,001 - $15, $46,251 - $47, $15,626 - $16, $47,501 - $48, $16,251 - $16, $48,751 - $50, $16,876 - $17, $50,001 - $52, $17,501 - $18, $52,501 - $55, $18,126 - $18, $55,001 - $57, $18,751 - $19, $57,501 - $60, $19,376 - $20, $60,001 - $65, $20,001 - $20, $65,001 - $70, $20,626 - $21, $70,001 - $75, $21,251 - $21, $75,001 - $80, $21,876 - $22, $80,001 - $85, $22,501 - $23, $85,001 - $90, $23,126 - $23, $90,001 - $95, $23,751 - $24, $95,001 - $100, $24,376 - $25, $100,001 - $110, $25,001 - $25, $110,001 - $120, $25,626 - $26, $120,001 - $130, $26,251 - $26, $130,001 - $140, $26,876 - $27, $140,001 - $150, $27,501 - $28, $28,126 - $28, Rating Symbol Only* 34 $28,751 - $29, Rating Symbol Only* 35 $29,376 - $30, Rating Symbol Only* 36 $30,001 - $31, Rating Symbol Only* 37 $31,001 - $32, Rating Symbol Only* 38 $32,001 - $33, $33,001 - $34, $150,001 and above** 40 $34,001 - $35,000 *Not for use in assigning price new symbols. These are Rating Symbols only. They have no corresponding price ranges and will therefore not be used as Price New Symbols. Vehicles can only be assigned these Rating Symbols via experience-based modification. **Vehicles assigned Symbol 98 will not be subject to symbol modification. Vehicles assigned Symbol 98 will be priced via Rule 11. Oklahoma (Ed. 001) New Business North Star Mutual Ins. Co. PA - 17 Renewals

20 RULE 10 - SYMBOL DETERMINATION FOR PICKUPS, VANS, FARM TRUCKS AND UNLISTED VEHICLES (Continued) (For use with 1989 (For use with 1990 & Prior Model thru 2010 Model Year vehicles) Year vehicles) LIST PRICE NEW SYMBOL LIST PRICE NEW SYMBOL $ 0-2,100 1, 2 $ 0-6, ,101-2, ,501-8, ,751-3, ,001-9, ,701-5, ,001-10, ,001-6, ,001-11, ,501-8, ,251-12, ,001-10, ,501-13, ,001-12, ,751-15, ,501-15, ,001-16, ,001-17, ,251-17, ,501-20, ,501-18, ,001-24, ,751-20, ,001-28, ,001-22, ,001-33, ,001-24, ,001-39, ,001-26, ,001-46, ,001-28, ,001-55, ,001-30, ,001-65, ,001-33, ,001- Above 21 33,001-36, ,001-40, ,001-45, ,001-50, ,001-60, ,001-70, ,001-80, ,001-Above 27 The extra equipment on this type unit greatly affects the LIST PRICE NEW and it is, therefore, required that the section on the supplemental application form and/or request for change form be completed for this type unit. Customization is excluded unless specifically insured. Refer to RULE 21 if coverage is desired for this exposure. Oklahoma (Ed. 001) New Business North Star Mutual Ins. Co. PA - 18 Renewals

21 RULE 11 - DETERMINING PHYSICAL DAMAGE RATES FOR SYMBOLS NOT DISPLAYED ON STATE RATE PAGES A And Later Model Years Symbol 98 Vehicles Develop the Base Rates for Symbol 98 vehicles as follows: 1. Other Than Collision a. Increase the factor for Symbol 70 by for each $10,000 or fraction of $10,000 above $150,000 of Original Cost; and b. Apply this factor to the Symbol 11 rate for the applicable model year. 2. Collision a. Increase the factor for Symbol 70 by for each $10,000 or fraction of $10,000 above $150,000 of Original Cost; and b. Apply this factor to the Symbol 11 rate for the applicable model year. B Model Years Symbol 27 Vehicles Develop the Base Rates for Symbol 27 vehicles as follows: 1. Other Than Collision a. Increase the factor for Symbol 26 by for each $10,000 or fraction of $10,000 above $80,000 of Original Cost; and b. Apply this factor to the Symbol 8 rate for the applicable model year. 2. Collision a. Increase the factor for Symbol 26 by for each $10,000 or fraction of $10,000 above $80,000 of Original Cost; and b. Apply this factor to the Symbol 8 rate for the applicable model year. Oklahoma (Ed. 002) New Business North Star Mutual Ins. Co. PA - 19 Renewals

22 RULE 12 - EXCESS ELECTRONIC EQUIPMENT COVERAGE AND TAPES, RECORDS, DISKS AND OTHER MEDIA COVERAGE PP (COVERAGE CODE 014) A. COVERAGE The policy includes $1,000 coverage for electronic equipment that reproduces, receives or transmits audio, visual or data signals which is permanently installed in the vehicle at the time of loss. Such equipment includes, but is not limited to: 1. Radios and Stereos; 2. Tape Decks; 3. Compact Disk Systems; 4. Navigation Systems; 5. Internet Access Systems; 6. Personal Computers; 7. Video Entertainment Systems; 8. Telephones; 9. Televisions; 10. Two-way Mobile Radios; 11. Scanners; or 12. Citizens Band Radios. This sublimit may be increased to any one of the limits shown below and is subject to the Other Than Collision Deductible. Coverage is not available for radar detectors. B. RATING Develop the premium independently for each covered auto as follows: 1. Excess Electronic Equipment Coverage. a. Determine the maximum limit of liability for excess electronic equipment permanently installed in that auto. Do not include the cost of tapes, records, disks or other media in determining this limit. Additional coverage for $200 worth of tapes, records, disks and other media applies at no additional charge when coverage is provided for increased limits for excess electronic equipment. b. Select the premium from the table below: Maximum Limit of Liability For Excess Electronic Equipment Semi-Annual Premium Per Auto $1,500 $ 45 2, , , , , , , For limits in excess of $5,000, Refer to Company. 2. Tapes, Records, Disks and Other Media Only. When coverage is not purchased for increased limits for excess electronic equipment, coverage for $200 worth of tapes, records, disks and other media is available for an additional premium charge of $8 per auto, per 6 month term. Attach the excess electronic equipment coverage endorsement to the policy. C. ENDORSMENT Attach the excess electronic equipment coverages endorsement to the policy. Oklahoma (Ed. 002) New Business North Star Mutual Ins. Co. PA - 20 Renewals

23 RULE 13 - NAMED NON-OWNER COVERAGE PP A. NAMED NON-OWNER Named Non-Owner Coverage may be used for an individual who does not own an auto but drives borrowed or rented autos. This coverage is usually applied to a temporary replacement auto. Coverage may also be extended to the spouse and resident relatives of that named individual. Named Non-Owner Coverage should not be used on new business. B. INELIGIBLE 1. Persons driving other than private passenger type vehicles. 2. Operators and Employees of garages, parking lots, etc. C. RATING 1. LIABILITY AND MEDICAL PAYMENTS Charge the following percentage of the applicable premiums that would apply if the named individual owned an auto, using the premium determination procedures set forth in Rule 7. Premium Determination. a. Exclusions for vehicles furnished or available for regular use apply: Person(s) Named Percentage Charge Named Individual 40% Named Individual and Resident Relatives 60% (including Named Individual's Spouse) b. Exclusions for vehicles furnished or available for regular use do NOT apply: Person(s) Named Percentage Charge Named Individual 60% Named Individual and Resident Relatives 80% (including Named Individual's Spouse) 2. UNINSURED MOTORISTS COVERAGE Charge the Non-Stacked Uninsured Motorists Coverage rate that would apply if such individual owned an auto Refer to Rule 9.A. for base rate and Rule 9.D. for increased limit factors. D. ENDORSEMENT Attach the Named Non-Owner Coverage endorsement to the policy. Oklahoma (Ed. 002) New Business North Star Mutual Ins. Co. PA - 21 Renewals

24 RULE 14 - EXTENDED NON-OWNED COVERAGE (BORROWED OR RENTED AUTOS PP A. ELIGIBILITY The Extended Non-Owned Coverage endorsement may be used for an individual who owns an auto but also drives borrowed or rented autos. Coverage may also be extended to the spouse and resident of that named individual. B. INELIGIBLE 1. Persons driving other than private passenger vehicles. 2. Operators and employees of garages, parking lots, etc. C. COVERAGE The Personal Auto Policy (PAP) may be extended to cover Vehicles Furnished Or Available For Regular Use Except As Public Or Livery Conveyances. Under the liability coverage section of the PAP, coverage is not provided for non-owned vehicles furnished or available for regular use. By choosing liability coverage under the Extended Non-Owned Coverage - Vehicles Furnished or Available for Regular Use endorsement, liability coverage provided under the basic PAP may be extended to cover vehicles furnished or available for regular use except vehicles furnished for use as public or livery conveyances. D. RATING Charge the following percentage of the applicable premiums that would apply as if the insured owned the auto being covered, using the premium determination procedures set forth in Rule 7. Premium Determination. 1. Primary Liability Insurance in Effect Person(s) Named Percentage Charge Named Individual 12% Named Individual and Resident Relatives 13% (including Named Individual's Spouse) 2. No Primary Liability Insurance is in Effect Person(s) Named Percentage Charge Named Individual 90% Named Individual and Resident Relatives 100% (including Named Individual's Spouse) E. ENDORSEMENT Attach the Non-Owned Coverage - Vehicles Furnished or Available for Regular Use endorsement. Oklahoma (Ed. 003) New Business North Star Mutual Ins. Co. PA - 22 Renewals

25 RULE 15 - EMPLOYERS NONOWNERSHIP LIABILITY NSG-PA01 A. A policy may be written, without a specific description of the motor vehicles, to cover a named insured for the use in the business of the named insured of any private passenger auto which is being used by any employee of the named insured where the use of such vehicle is only occasional and not frequent. Such autos may not be owned in whole or in part, or hired or leased by, or loaned to, or registered in the name of the named insured. B. RATING 1. Determine the estimated total number of employees of the named insured. 2. Determine the semi-annual advance premium from the table below based on the estimated total number of employees. Total Number Bodily Injury Property Damage of Employees Limits 25/50 (000) Limit $25, $12 $ Increased Limits - Refer to the Increased Limits Factor Table. 4. Unless there is a great fluctuation in exposure during the policy period, the advance premium determined at the beginning of the policy term shall be the earned premium. RULE 16 - OPTIONAL LIMITS TRANSPORTATION EXPENSES COVERAGE (RENTAL EXPENSE COVERAGE) PP The included $20/$600 limit for Transportation Expenses Coverage may be increased to $30/$900, or $40/$1,200. A. ELIGIBILITY Only policies providing Other Than Collision (OTC) Coverage may be provided Increased Limits Transportation Expenses Coverage. This coverage is not available for Artisan vehicles or trailers. B. RATING The rates for this coverage are not subject to classification rating or modification by any rating plan. Semi-Annual Rate Coverage Per Auto $30/$900 Increased Limits Transportation Expenses Coverage (Coverage Code 706)... $13 $40/$1,200 Increased Limits Transportation Expenses Coverage (Coverage Code 706)... $22 Attach the Optional Limits Transportation Expenses Coverage endorsement to the policy. RULE 17 ROADSIDE ASSISTANCE CF-2016 A. This endorsement provides limited coverage for: 1. Emergency Road Service consisting of: a. Mechanical First Aid (service; not parts); b. Tire Service; c. Battery Service; and d. Delivery Service (gasoline, oil or water. Does not include product costs). Note that emergency road service is limited to one service per every 72 hours and no more than a total of five services during a 12-month consecutive period. 2. Towing Service up to 25 miles; 3. Locksmith Service; and Oklahoma (Ed. 006) New Business North Star Mutual Ins. Co. PA - 23 Renewals

26 RULE 17 ROADSIDE ASSISTANCE (Continued) 4. Trip Interruption up to $300. Coverage applies only to those vehicles as designated in the declarations. Coverage for Emergency Road Service, Towing Service and Locksmith Service is subject to a combined per disablement occurrence limit of $150 for cars, pickups, vans and SUV s and $300 for recreational trailers and motor homes. Utility trailers are automatically covered if being towed by a vehicle covered by Roadside Assistance. B. This coverage may be written for Private Passenger Autos, Recreational Trailers and Motor Homes that are less than 30 model years old. Exceptions may be given for vehicles 30 or more model years old if we are already providing this coverage on one or more eligible vehicles. This coverage may not be applied to classic cars, antique cars, farm trucks or semis. C. RATING Vehicle Type Semi-Annual Rate Per Vehicle Cars/Pickups/Vans/SUV s $10 Recreational Trailers/Motor Homes $20 No discounts are applicable to the Roadside Assistance Rate RULE 18 - ANTIQUE AUTOS PP An antique auto is a motor vehicle of the private passenger type which is 25 or more years old and is maintained primarily for use in exhibitions, club activities, parades and other functions of public interest, and occasionally used for other purposes. The vehicle must have antique or historic license plates. A. LIABILITY Charge 40% of Private Passenger All Other Class/Pleasure Use base rates. The premiums are subject to the following minimum premiums: $10 - Bodily Injury $ 5 - Property Damage B. MEDICAL PAYMENTS, UNINSURED MOTORISTS Charge Private Passenger All Other Class/Pleasure Use base rates or premiums. Oklahoma (Ed. 005) New Business North Star Mutual Ins. Co. PA - 24 Renewals

27 RULE 18 - ANTIQUE AUTOS (Continued) C. PHYSICAL DAMAGE (Stated Amount) The physical damage is written on a stated amount basis. The company s limit of loss will be the lesser of the: 1. Stated amount shown in the schedule or in the declarations; 2. Actual Cash Value of the stolen or damaged property; or 3. Amount necessary to repair or replace the property. Antique autos owned by an individual may be written when our company provides the insurance for the person s other eligible private passenger vehicles. Coverage is provided by issuing a separate Personal Auto Policy or by endorsement. Attach the coverage for damage to your auto (stated amount maximum limit of liability) endorsement. Notes: Semi-Annual Coverage Deductible Rate Per $100 Other Than Collision (OTC) $ 100 $ , , , , Collision $ 250 $ , , , , Do not bind coverage on a vehicle with a value over $25,000 - Refer to the Home Office. 2. The vehicle must be insured to 100% of its full value. 3. Attach 2 color photographs of the vehicle taken from opposite diagonal corners of the vehicle. Multi-Car discount is not applicable on antique autos nor does an antique auto qualify another vehicle for the discount. However, the following are applicable to antique autos: Accident Prevention Course discount, Insurance Score, Companion Policy discount, Anti-Theft discount and Passive Restraint discount. Oklahoma (Ed. 005) New Business North Star Mutual Ins. Co. PA - 25 Renewals

28 RULE 19 - CLASSIC AUTOS PP A classic auto is a motor vehicle of the private passenger type which is 10 or more years old and may be used on a regular basis. Its value is significantly higher than the average value of other autos of the same make and model year. A. LIABILITY, MEDICAL PAYMENTS, UNINSURED MOTORISTS Classify and rate as a private passenger auto. B. PHYSICAL DAMAGE (Stated Amount) 1. Determine the stated amount of coverage applicable to the vehicle. 2. Based on the stated amount of the vehicle, assign a symbol using the (For use with 2011 and subsequent Model Year vehicles) table found in RULE Classify and rate as a private passenger auto using the base rate for the current model year. The physical damage is written on a stated amount basis. The company s limit of loss will be the lesser of the: 1. Stated amount shown in the schedule or in the declarations; 2. Actual Cash Value of the stolen or damaged property; or 3. Amount necessary to repair or replace the property. Notes: 1. Do not bind coverage on a vehicle with a value over $25,000 - Refer to the Home Office. 2. Attach 2 color photographs of the vehicle taken from opposite diagonal corners of the vehicle. RULE 20 - ELECTRIC AUTOS An electric auto is a motor vehicle of the private passenger type that is run by electric power and it is not used for commercial purposes. A. LIABILITY Charge 75% of the applicable private passenger base rate. B. MEDICAL PAYMENTS, UNINSURED MOTORISTS Charge private passenger base rates or premiums. C. PHYSICAL DAMAGE Charge the applicable private passenger base rate. Oklahoma (Ed. 005) New Business North Star Mutual Ins. Co. PA - 26 Renewals

29 RULE 21 - CUSTOMIZING EQUIPMENT COVERAGE PP Other Than Collision (OTC) and Collision coverage for customizing equipment may be purchased on a stated amount basis in excess of $1,000 for any pickup, van or other vehicle insured (except farm trucks or semis) for physical damage coverage. Refer to the Customizing Equipment Coverage (stated amount insurance) endorsement for extent of coverage. A. This endorsement provides coverage for direct and accidental loss to custom furnishings or equipment including, but not limited to: 1. Special carpeting and insulation, furniture or bars; 2. Facilities for cooking and sleeping; 3. Height - extending roofs; 4. Custom murals, paintings, or other decals or graphics; 5. Wheelchair lifts and handicap accessibility customizations. The endorsement exclusions apply. B. The cost of customizing equipment should not be considered when determining the symbol of the vehicle. C. The customizing charge determined in this rule is the only charge for customized equipment on a vehicle. D. The charge for customizing is made only when the Customizing Equipment Coverage (stated amount insurance) endorsement is attached. E. Do not bind coverage on vehicles with total values over $35,000 - Refer to the Home Office. F. RATING 1. To determine the stated amount rate per $100 of customizing, use the following rating formula: Base Rate for Other Than Collision or Collision x Rating Tier Factor (Dollar Round) x Territory Factor (Dollar Round) x Model Year and Symbol Relativity Factor for current model year, Symbol 3 (Dollar Round) x Deductible Factor (Dollar Round) x Applicable rate factor below (No Dollar Round. This Is The Stated Amount Rate Per $100) Other Than Collision (OTC) - For all model years Collision - For all model years Multiply the result of Paragraph 1. by the total desired limit of coverage. (Dollar Round) The amount of insurance must be at least 100% of the value of the customization. 3. Multiply the result of Paragraph 2. by the Driver Class Factor (Primary +/- Secondary). (Dollar Round) 4. Multiply the result of Paragraph 3. by the Insurance Score Factor. (Dollar Round) 5. Multiply the result of Paragraph 4. by the Companion Policy Discount Factor. (Dollar Round) NOTES: 1. The Customizing Equipment Coverage (stated amount insurance) endorsement shall be attached. 2. If Other Than Collision (OTC) or Collision coverage for customizing is purchased, the vehicle must have the corresponding OTC or Collision coverage. 3. The customizing deductibles shall be the same as the vehicle deductibles. 4. If a loss occurs simultaneously to the vehicle insured, which is customized, and the customized equipment, only one deductible is applicable. 5. If customization coverage is requested, a color photograph of the interior and exterior must be enclosed. Oklahoma (Ed. 006) New Business North Star Mutual Ins. Co. PA - 27 Renewals

30 RULE 22 - MOTOR HOMES PP AND PP (Motor Homes and Pickups with Permanently Attached Camping Units) A motor home is a self-propelled land motor vehicle with a living area that is an integral part of the vehicle chassis, or a pickup with a permanently attached camper body. The living area or camper body must consist of facilities for cooking, dining, bathroom, sleeping and refrigeration. Motor homes owned by an individual, not used for permanent living facilities, may be written when our Company provides the insurance for the insured s other eligible private passenger vehicles. Coverage is provided by issuing a separate personal auto policy or by endorsement. Attach the Miscellaneous Type Vehicle and the Miscellaneous Type Vehicle Amendment (Motor Homes) endorsements to the policy. A. LIABILITY, MEDICAL PAYMENTS, UNINSURED MOTORISTS COVERAGE 1. To or from work - Classify and rate as private passenger auto. 2. Pleasure Use Only - (Not driven to or from work or school) a. Liability Coverage - Charge 50% of the applicable All Other Class/Pleasure Use Private Passenger auto rate. Multi-Car Discount does not apply. b. Medical Payments, Uninsured Motorists Coverage - Charge the All Other Class/Pleasure Use Private Passenger auto rate. B. PHYSICAL DAMAGE 1. To or from work - Classify and rate as private passenger auto. 2. Pleasure Use - a. Determine the Stated Amount Value (must be 100% of Actual Cash Value) including the value of any custom built additions and find the corresponding symbol from RULE 10. Do not bind coverage on a vehicle with a value over $100,000 - Refer to the Home Office. b. Charge 35% of the applicable All Other Class/Pleasure Use rates for private passenger autos. Multi- Car Discount does not apply. 3. The limit of the company s liability will be the lesser of: a. The stated amount shown on the declaration page; or b. The actual cash value of the stolen or damaged property, at the time of loss; or c. The amount necessary to replace the stolen or damaged property. 4. See RULE 9 for limitations on vehicles 10 years old or older. 5. Awnings and Cabanas - Include the awnings and cabanas value in the stated amount of the vehicle to which they are attached. Coverage is provided without a special endorsement when OTC and Collision coverage is selected. C. ELIGIBILITY The following are ineligible: 1. Vehicles rented to others. 2. Vehicles used in business. 3. Converted vehicles (such as school buses). 4. Homemade vehicles. Oklahoma (Ed. 002) New Business North Star Mutual Ins. Co. PA - 28 Renewals

31 RULE 23 - PICKUP CAMPER BODIES AND TOPPERS PP A. DEFINITIONS 1. PICKUP CAMPER BODY A Pickup Camper Body is a camper body: a. If equipped with permanent type cooking and sleeping facilities; and b. Is not permanently attached to the pickup. 2. PICKUP TOPPER OR CANOPY A Pickup Topper or Canopy is a hard cover over the pickup box, which has windows and a door for access. It does not have facilities for cooking and sleeping. Rate as a topper unless the cost is over $1,000 in which case camper body rates apply. B. PICKUP CAMPER BODY 1. Permanently Mounted Camper Body - Determine the combined Stated Amount Value of the pickup and camper body. Rate as a motor home. 2. Removable Camper Body - The pickup and the pickup camper body shall be listed and rated as separate units. Rates For: Removable Pickup Camper Bodies; Toppers over $1,000. a. Determine the Stated Amount Value (must be 100% of Actual Cash Value). Stated Amount Semi-Annual b. Coverage - Class Deductible Rate Per $100 Other Than Collision (OTC) $ 50 $ , , , , Collision $100 $ , , , , c. Pickups - Liability and Physical Damage: - Rate as private passenger. For non-symboled vehicles, determine a symbol based on original cost new from the tables in RULE 10. C. PICKUP TOPPER 1. Toppers (cost $1,000 or less) Coverage is provided without a separate charge when attached to the pick up. 2. Toppers (cost over $1,000) Rate as a pickup camper body. Oklahoma (Ed. 002) New Business North Star Mutual Ins. Co. PA - 29 Renewals

32 RULE 23 - PICKUP CAMPER BODIES AND TOPPERS (Continued) D. AWNINGS AND CABANAS NSG-PA06 Include the awnings and cabanas value in the stated amount of the vehicle to which they are attached. Coverage is provided without a special endorsement when OTC and Collision coverage is selected. E. Physical Damage on units 10 through 14 years of age may be written with the following minimum deductibles. Other Than Collision (OTC)... $100 Collision... $250 Do not bind coverage on units 15 years old or older. RULE 24 - TRAILERS DESIGNED FOR USE WITH PRIVATE PASSENGER AUTOS PP A. DEFINITIONS 1. UTILITY TRAILER A trailer designed for use with a private passenger type auto. Included are boat trailers, horse trailers, snowmobile trailers, and general purpose trailers. 2. CAMPING TRAILER A trailer which expands into temporary living quarters and is designed for use with a private passenger auto. A camping trailer differs from a travel trailer in that it is towed as a low-profile collapsed unit. 3. TRAVEL TRAILER A trailer designed for use with a private passenger auto and permanently equipped as living quarters. This class applies to trailers less than 34 feet in length and weighing less than 5,000 lbs. 4. FIFTH WHEEL UNIT A trailer with goose-neck hitch or trailer body which extends over a pickup bed and connects to a fifth wheel hitch mounted over the pickup s rear axle. These trailers will be written according to their use as above. B. ELIGIBILITY RULES The following utility and recreational trailers are not eligible for coverage: 1. Passenger trailers; 2. Trailers used for business purposes with any type vehicle other than a private passenger automobile; 3. Trailers used with any automobile owned or hired by the insured and not covered by like insurance in North Star; 4. A trailer used as premises for office, store or display purposes; 5. Trailers 34 feet or more in length and/or weighing 5,000 lbs. or more; 6. Recreational trailers used as living quarters when another permanent residence is not used and maintained; 7. Homemade trailers; 8. Trailers seasonally located at a permanent location or site; or 9. Trailers used for ice fishing. Trailers with a value in excess of $75,000 must be submitted to the home office to determine eligibility. Oklahoma (Ed. 003) New Business North Star Mutual Ins. Co. PA - 30 Renewals

33 RULE 24 - TRAILERS DESIGNED FOR USE WITH PRIVATE PASSENGER AUTOS (Continued) C. LIABILITY A Personal Auto Policy providing liability coverage covers trailers designed for use with a private passenger auto, pickup, van, or farm truck without additional premium charge and without specific description of the trailer. Exceptions: Coverage is not provided for a trailer: 1. Used for business purposes with other than a private passenger auto or owned pickup, van or farm truck (except for farming purposes); 2. Used with other than an owned farm truck for other than farming purposes; or 3. When no auto is owned by the insured. D. MEDICAL PAYMENTS A Personal Auto Policy providing Medical Payments Coverage provides coverage for trailers without additional premium charge and without specific description of the trailer if designed for use with a private passenger auto, pickup or van. Exceptions: Coverage is not provided for a trailer: 1. Used for business purposes with other than a private passenger, auto or owned pickup, van or farm truck; 2. When no auto is owned by the insured; or 3. Located for use as a residence or premises. Oklahoma (Ed. 003) New Business North Star Mutual Ins. Co. PA - 31 Renewals

34 RULE 24 - TRAILERS DESIGNED FOR USE WITH PRIVATE PASSENGER AUTOS (Continued) E. PHYSICAL DAMAGE Trailers are to be insured as separate items with separate premiums shown for each unit. The deductible applies separately to each unit. Attach the Coverage For Damage To Your Auto (stated amount maximum limit of liability) endorsement. 1. Recreational Trailers - Non-self-propelled recreational units equipped as living quarters (including cooking, dining, plumbing or refrigeration facilities). a. Other Than Collision (OTC) and Collision - Use the following rates. b. Awnings and Cabanas - Include the awnings and cabanas value in the stated amount of the vehicle to which they are attached. Coverage is provided without a special endorsement when OTC and Collision coverage is selected. 2. Light Utility Trailers. Other Than Collision (OTC) and Collision - Use the following rates. 3. All Other Trailers - PP th wheel grain, stock or flat bed; and heavy stock or grain trailers. Other Than Collision (OTC) and Collision - Use the following rates. Determine the Stated Amount Value (must be 100% of Actual Cash Value). Stated Amount Semi-Annual Coverage - Class Deductible Rate Per $100 Other Than Collision (OTC) $ 50 $ , , , , Collision $ 100 $ , , , , Physical Damage on units 10 through 14 years of age may be written with the following minimum deductibles. Other Than Collision (OTC)... $100 Collision... $250 Do not bind coverage on units 15 years old or older. Oklahoma (Ed. 002) New Business North Star Mutual Ins. Co. PA - 32 Renewals

35 RULE 25 - AUTO LOAN/LEASE COVERAGE PP A. ELIGIBILITY A policy providing both Other Than Collision and Collision coverage may be extended to provide coverage for the difference between the outstanding indebtedness on a loan/lease agreement on a vehicle, and the actual cash value of the vehicle, subject to the following: 1. Auto Loan/Lease Coverage may be provided only to a new vehicle that is a private passenger auto, pickup or van; and 2. The insured must request the auto loan/lease coverage within 30 days of leasing or financing a new vehicle. 3. Coverage may be provided on new business if the vehicle is 2 or less model years old and proof coverage was provided on prior policy. A new vehicle as used in this rule is a vehicle that has not previously been titled under the motor vehicle laws of any state. B. RATES Charge 7% of both the Other Than Collision and Collision Coverage premiums for the auto loan/lease coverage. C. Coverage does not apply to: 1. Overdue payments; 2. Financial penalties assessed for excessive use, abnormal wear and tear or high mileage; 3. Security deposits not refunded by a lessor; 4. Costs for extended warranties, credit life insurance, health, accident or disability insurance purchased with the loan or lease; and 5. Carry over balances from previous loans or leases. RULE 26 - TRUSTS AS ADDITIONAL INSUREDS PP A. TRUSTS A Personal Auto Policy shall be used to afford coverage to private passenger autos and motor vehicles considered as private passenger autos in Rule 2 if title to the vehicle(s) has been transferred to a trust, subject to the following requirements 1, The grantor of the trust must be: a) An individual or spouses; and b) The only named insured(s) shown in the Declarations. 2. All vehicles insured under the policy must be owned by the trust. 3. The trust will be shown as an additional insured in the Declarations. 4. A vehicle owned by a trust, in which the grantor is a corporate entity, is not eligible under the Personal Auto Program, but may be written under a Commercial Auto policy. B. ENDORSEMENT Attach the Trust Endorsement PP to the policy. There is no charge for this endorsement. RULE 27 - WHOLE DOLLAR PREMIUM The premium for each exposure shall be rounded to the nearest whole dollar, separately for each coverage provided by the policy. A premium involving $0.50 or more shall be rounded to the next higher whole dollar. This procedure shall apply to all interim premium adjustments, including endorsements or cancellations. Oklahoma (Ed. 004) New Business North Star Mutual Ins. Co. PA - 33 Renewals

36 RULE 28 - POLICY PERIOD AND CONTINUATION A. The premium for a policy shall be determined only on a semi-annual basis. B. The premium for successive periods shall be determined on the basis of the rules and premiums in effect on the date of the continuation. C. Policyholders will initially receive copies of all policy forms. Upon renewal they will receive only a cover page, declarations, new identification card(s), and forms that are new or revised. Policyholders may receive all policy forms upon request. D. When a policy is issued with an effective date on the 29th, 30th or 31st of any month, the first policy period may run from the date of issuance to the first date of the calendar month following the first policy period. Premium for the extended coverage of one to three days will be waived. E. When a policy has been issued there is no flat cancellation. When a policy is cancelled, it is on a pro rata basis. This is applicable if the policy is cancelled at the request of the insured or the company. RULE 29 - RATE CHANGE When a rate change is made the new manual pages are forwarded to the agents approximately a week or ten days before the effective date of the change. The effective date of the policy, rewrite, and/or endorsement, is the governing factor in determining if new rates are to be used. The effective date of the rate change will be pointed out in the Manual Revision accompanying the new rate pages. Policies and endorsements showing this date or a later date will receive the new rates. Endorsements that are made during the policy term will be made with the rates that are effective at the time of change. RULE 30 - CHANGES A. All changes requiring premium adjustments shall be computed pro rata. B. North Star will not refund a return premium of less than $5 if the insured requests the following: 1. Cancellation of coverage; 2. Reduction of limits of liability; or 3. Increase in Deductible, except that actual return premium shall be returned at the request of the insured. C. Any endorsement added mid-term that restricts or eliminates coverage must be signed and dated by the insured per Oklahoma Rules (b)(20). RULE 31 - PRO RATA CHANGES Changes made mid-term will be computed on a pro rata basis. Oklahoma (Ed. 002) New Business North Star Mutual Ins. Co. PA - 34 Renewals

37 RULE 32 - RATING TERRITORIES AND FACTORS A. A rating territory is a geographical area defined in terms of U.S. Postal Service (USPS) ZIP codes, as shown on the Territory Definitions pages. 1. Determine the applicable rating territory based on the zip code of the location of principal garaging of the vehicle. If the ZIP code of the mailing address differs from the ZIP code of the location of principal garaging, use the ZIP code of the garaging location to assign the rating territory. 2. As ZIP code boundaries are changed by the USPS, a new ZIP code may be created. If this new ZIP code is not yet listed in the Territory Definitions, use the ZIP code that formerly applied to the risk before the ZIP code boundaries were changed in order to determine the rating territory for a risk located in the new ZIP code. B. TERRITORY FACTORS The following table displays the rating factors applicable to each territory: Other Than Collision Collision Non-Stacked Uninsured Motorist Territory Bodily Injury Property Damage Medical Payments 51 see ZIP Code Listing see ZIP Code Listing see ZIP Code Listing see ZIP Code Listing see ZIP Code Listing see ZIP Code Listing see ZIP Code Listing see ZIP Code Listing see ZIP Code Listing see ZIP Code Listing see ZIP Code Listing see ZIP Code Listing see ZIP Code Listing see ZIP Code Listing see ZIP Code Listing see ZIP Code Listing RULE 33 - APPLICATION PROCEDURE Coverage may be bound subject to the underwriting requirements contained throughout this manual. When an application is prepared it shall be sent to our office the same day if coverage is to begin immediately. The policy term begins at 12:01 A.M. at the address of the insured on the effective date; however, coverage will not begin prior to the time the application is prepared. If coverage is bound, do not hold the application pending receipt of additional information from the applicant. The application should be submitted with a notation indicating that additional information will follow. Applications should be completed in detail, including all accidents regardless of fault. It is mandatory that all applications be signed by the applicant and the agent. List the names and dates of birth for all drivers and household members regardless of age. The Farm Truck Supplemental Application is required for all Farm Trucks. Information on their use and equipment is essential to determine the correct classification and rating. When an application is received and coverage is bound, a policy will be issued. If it is determined that the company underwriting requirements are not met, the policy will be mailed and a cancellation notice issued with a pro rata earned premium charged. Flat cancellations are not permitted. Oklahoma (Ed. 007) New Business North Star Mutual Ins. Co. PA - 35 Renewals

38 RULE 34 - QUESTIONABLE APPLICANTS If an agent wants to determine if an applicant is acceptable, he may submit a signed application, indicating COVERAGE NOT BOUND, and we will conduct our underwriting review. It is important to furnish complete information on the questionability of the applicant with the application. Upon completion of our review, we will advise if the applicant is acceptable. The application will be retained in our office. RULE 35 - INSTALLMENT PREMIUM PAYMENT OPTION Refer to the BILLING INFORMATION Section of the manual for specifics on the installment billing option. RULE 36 - PREMIUM PROCEDURES A. NEW BUSINESS Premium payments must accompany all applications. The premiums can be prepaid (full policy amount submitted with the application), or installment billed. Refer to the BILLING INFORMATION Section of the manual for specific billing information. If the installment option is selected, the minimum down payment must be submitted with the application. B. RENEWALS For policies not on the monthly billing option, a renewal billing notice will be sent 15 days prior to the renewal effective date. The notice will indicate the total amount due and will also show the amount due for the installment option. C. ENDORSEMENTS If installments are remaining, the endorsement premium will be spread to future installment billings. If no installments are remaining, a bill will be sent immediately. Return premiums are made payable to the insured and sent to the insured. IMPORTANT A. DOWN PAYMENT REQUIREMENTS - A minimum down payment of two months must be attached to all new applications. B. All installment and renewal payments should be sent with the remittance portion of the billing notice to: North Star Mutual PO Box 48 Cottonwood, MN C. Renewal premiums must be in our office on or before the due date indicated. If the agent receives the money after the renewal date, he may bind coverage at the time he receives the money by preparing a new application. Do not date the application back to the renewal date; it must be dated on or after the date the renewal premium is received. The agent can bind coverage only by preparing a new application showing the date and time of day payment is received, and promptly submitting it with the required down payment to our office. Show the prior policy number on the application. D. If the insured makes a change on the policy in the renewal period, it is important for the renewal premium payment to be received in our office to keep the policy from lapsing. The debit or credit endorsement will be applied and processed accordingly. Again, it is important to timely pay the amount billed to keep the policy from lapsing. E. NONPAYMENT - A second billing notice will not be issued. If payment is not received by the date due, the following notices will be processed: Renewals - A lapse notice will be sent one day after the renewal date. Installments and Endorsements - A cancellation carry date will be established and a Final Premium/Cancellation Notice will be issued 23 days prior to the carry date. F. BAD CHECK CHARGE - Checks returned by the bank for insufficient funds or similar reasons will result in a NSF check charge. Oklahoma (Ed. 004) New Business North Star Mutual Ins. Co. PA - 36 Renewals

39 RULE 37 - CANCELLATION/NONRENEWAL A. COMPANY The company has the option to cancel or non-renew the policy in accordance with State Statutes and Policy Conditions by giving the required advance written notice. North Star shall give at least ten (10) days notice prior to the date of cancellation and twenty (20) days notice prior to the date of non-renewal. B. INSUREDS REQUEST The policy may be cancelled by the Named Insured by: 1. Surrendering the policy with the latest copy of the declarations page to the company or any of its authorized agents; or 2. Mailing to the company written signed notice stating when thereafter the cancellation shall be effective. Back dating of the effective date is not permitted. C. PRO RATA CANCELLATION All policies cancelled by the company or at the Named Insureds request shall be cancelled on a pro rata basis. RULE 38 - SUSPENSION If an insured lays up or stores his vehicle for a period in excess of thirty (30) days, all coverages, other than Other Than Collision (OTC), may be cancelled from the policy on a pro rata basis provided the Home Office is notified at the time the vehicle is laid up or stored. If the policy does not provide OTC coverage, the entire contract will be cancelled on a pro rata basis. Suspension coverage is not available. If the casualty coverages are cancelled, OTC is the only coverage that can be continued. OTC coverage cannot be continued if the casualty coverages are with some other company unless the insured has a business in which all his liability exposures are covered under a single liability policy. This is subject to the regulations of the state in which the insured resides. This will not change our underwriting requirements in that policies will not be issued without Bodily Injury or Property Damage, unless, as stated above, the insured has a business in which all his liability exposures are covered under a single liability policy or casualty coverages are provided by the insured s employer. If a policy does not include Bodily Injury or Property Damage, the policy cover sheet must be stamped or printed with the words THIS POLICY DOES NOT PROVIDE BODILY INJURY AND PROPERTY DAMAGE LIABILITY COVERAGES. The words shall be stamped in red ink with not less than 14-point hollow type letters. (O.S ) Liability Coverage may be suspended at the request of the insured only if the insured has filed an affidavit with the appropriate motor vehicle license agent stating that the owned vehicle will not be operated during the period of suspension. Oklahoma (Ed. 002) New Business North Star Mutual Ins. Co. PA - 37 Renewals

40 RULE 39 - ELIGIBILITY - VEHICLES AND DRIVERS The following are not eligible: A. VEHICLE USE OR CHARACTERISTICS 1. Ambulances and hearses 2. Amphibious autos 3. Driver training 4. Dune buggies and hot rods 5. Emergency vehicles (police patrol and trouble cars) 6. Motorcycles, motor bikes, motor scooters, ATV s, golf carts & snowmobiles 7. Salvage vehicle 8. Common or contract passenger hauling including hotels, airports, taxi cabs, public or livery conveyance, or vehicles held for rental 9. Vehicles owned by garages, service stations and auto dealers 10. Demonstrators or vehicles held for sale 11. Hauling of explosives, such as dynamite, fireworks, ammunition, anhydrous ammonia or nitroglycerin 12. Transportation of entertainers, dance bands, circuses and shows 13. Fast food, film, newspaper, pizza delivery, or ice cream sales 14. Vehicles over 10,000 GVW, except farm trucks 15. Brokered risks 16. Rolling stores 17. Vehicles powered by LP gas 18. An auto 20 or more years old is unacceptable unless it is a secondary vehicle and in excellent condition 19. Homemade units 20. Converted school buses 21. Day care vans/vehicles 22. stand-alone Farm Trucks 23. some electric type vehicles (golf carts) 24. fish house trailers 25. rental trucks with Gross Vehicle Weight over 26,000 lbs. 26. any vehicle used for hire. 27. any risk where the applicant has an outstanding premium balance from a prior North Star policy. B. APPLICANTS OR DRIVERS 1. Convicted of a felony involving the use of a motor vehicle; 2. Without a valid driver s license in this state (unless they have established a permanent residence in the state within the last 60 days); 3. Desiring coverage for terms o less than 6 months; 4. Engaged in illicit business; 5. Requiring a financial responsibility filing (SR-22); 6. Who cannot read or understand road signs; 7. With impairments which affect the safe operation of the vehicle; 8. In the household with serious traffic convictions during the last 5 years. (non-serious convictions include - failure to yield, stop sign or signal, speed 10 m.p.h. or less over posted speed limit); 9. Who are owners or principal operators under age 21 unless: a. Married; b. Homeowners; or c. Unmarried and residing with their parents whose automobiles are also insured by our company; 10. Without prior insurance coverage (unless they did not own a vehicle and they are an experienced driver); or 11. Who had their drivers license suspended or revoked within the past 36 months. C. ACCIDENTS AND CONVICTIONS Refer to the AUTO DISCOUNT SELECTION GUIDE found in RULE 42. Oklahoma (Ed. 007) New Business North Star Mutual Ins. Co. PA - 38 Renewals

41 RULE 40 - RESERVED FOR FUTURE USE RULE 41 - UNDESIRABLE VEHICLES Principal operators under the age of 30 assigned to any vehicles which are on the Undesirable vehicles list will generally not be written. In the event one is written when special conditions are met, the surcharges stated on the top of the list may be applied depending on driving record and loss history. 15% SURCHARGE (FIVE STAR) 20% SURCHARGE (PREFERRED) 30% SURCHARGE (SELECT) MAKE MODEL MAKE MODEL Abarth-Fiat Ford Mustang GT Abarth Glassic Phaeton Alpha Romeo GT Glassic Romulus II Alpha Romeo Guilia GTM Super 90 Alpha Romeo Montica IAI Alpha Romeo Sprint Intermeccanica Alpha Romeo Veloce ISO Alpine Allo Berlinette 1300 & 1600 Jensen Interceptor AMC AMX Jensen Other Models AMC Javeline Lamborghini Arnolt-Bristol Roadster Lancia ASA Ligier (Repli-Car) JS2 Aston Martin Lotus Austin-Healy All 2-Dr. Roadsters & Cps. Mangusta Avanti Marcos Bay Prod. (Repli-Cars) Bugatti Custom 35B Maserati Bay Prod. (Repli-Cars) Bugatti Super 35B Matra Bay Prod. (Repli-Cars) Gazelle Mercedes-Benz & 6.9 Sedan Bentley Merkur XR4Ti Bertone MG All 2-Dr. Roadsters Bizzarrini All 2-Dr. Models Monteverdi Biota Morgan Bradley GT (Kit Car) Opel GT Bricklin Pantera Bugatti Pininfarina Chevrolet Camaro IROC-Z Plymouth Barracuda Chevrolet Camaro Z28 & Berlinetta Plymouth Roadrunner Chevrolet Corvette Pontiac Fiero Chevrolet/Geo Tracker (1998 & prior) Pontiac Firebird/Formula Clenet Pontiac GTO (1973 & Prior) Concept Centaur Mark II Porsche Costin Replicar Auburn DeLorean Replicar Cord De Tomaso Replicar Duesenberg Dodge Challenger (1978 & Prior) Reproduction I Kit Cars Dodge Charger (1975 & Prior) Rolls Royce Dodge Viper Saab Granturismo Duesenberg Saab Sonnett Excaliber Shelby Ferrari Siva Saluki Fiat Squire SS 1000 Fiat Racers Stutz Blackhawk II Fiat Roadsters Sunbeam All 2 Dr. Roadsters & Coupes Fiat 2-Dr. Spiders Triumph All 2-Dr. Roadsters & Coupes Fiat Sprint TVR Fiat X/19 Volkswagen Thing Fiber Fab Oklahoma (Ed. 003) New Business North Star Mutual Ins. Co. PA - 39 Renewals

42 RULE 42 - RATING TIER SELECTION AND FACTORS Purpose - The purpose of the discount program is to provide auto insurance on an equitable basis to insureds according to their accident and conviction record and other exposures. Application of the discounts are subject to Home Office approval. Procedure - To accomplish the above we have prepared a Discount Selection Guide and rating tier factors for the Select, Preferred Discount and Five Star Discount. The rating tier factor is applied to the basic rate to determine the premium. UNDERWRITING CHARACTERISTICS A. Accidents - number per operator (last 3 years) AUTO DISCOUNT SELECTION GUIDE Select... One (none for operator under 25) Preferred discount... One Not at Fault Five Star discount... One Not at Fault B. Convictions - number per operator (non-serious-last 3 years; serious-last 5 years) Select... *One (none for operators under age 23) Preferred discount... *One (none for operators under age 25) Five Star discount... *One (none for operators under age 28) *A Non Serious Conviction is a minor traffic violation, such as failure to yield, stop sign or signal, and speed 10 mph or less over the posted speed limit. *A Serious Conviction is a major traffic violation, such as driving while impaired, reckless driving, and major speed violations C. Total Occurrences (accidents and convictions) - number per insured household (last 3 years) Select... Two (multi-car), One (single car) Preferred discount... Two (multi-car), One (single car) Five Star discount... One Not at Fault or One Non Serious Violation (drivers age 28 or older) The two occurrences may not be for the same operator. D. Any automobile more than years old is unacceptable unless it is a secondary vehicle and in good condition. Select years Preferred discount years Five Star discount years E. RATING TIER FACTORS Other Than Collision Collision Rating Tier Bodily Injury Property Damage Five Star Discount Preferred Discount Select Medical Payments *Reminder Do not bind applicants age 75 and older. Consideration will be given by the Auto Underwriting Department on a non-bound basis if the applicant furnishes an ACORD Medical Statement. This must be completed by the applicant in the applicant s own handwriting. Oklahoma (Ed. 004) New Business North Star Mutual Ins. Co. PA - 40 Renewals

43 RULE 43 - INSURANCE SCORE[RJ2] A. A rating factor from the table below will be applied to all coverages based on the insurance score of a named insured. The insurance score, using the Standard Auto Model from LexisNexis, is developed from credit related information including: types of accounts, balances, dates opened, and account activity, plus public records items such as judgments and liens and inquiries initiated by the insured. Insurance Score Rating Factor Insurance Score Rating Factor Below No Hits under age No Hits age No Hits over age No Score under age No Score age No Score over age Neutral Oklahoma (Ed. 005) New Business North Star Mutual Ins. Co. PA - 41 Renewals

44 RULE 43 - INSURANCE SCORE (Continued) B. Application of the Insurance Score 1. The insurance score will be applied to all new business and to existing policies at renewal. 2. A statement to indicate an insurance score has been used will be shown on the policy Declaration when an insurance score is used. 3. The insurance score used, including No Score, will apply for a minimum of 12 months except in cases where corrections have been made for errors in the insured's credit history file with the national credit bureaus. A higher score obtained in this process will be applied back to the beginning of the current policy term. 4. The insurance score will be ordered every 3 years, unless an insured requests it at the time of a renewal. However, we do not need to obtain the updated insurance score more frequently than once in a 12-month period. 5. A No Score will continue to apply to a policy except in cases where an insurance score is obtained from a national credit bureau. If an insurance score is returned, it will apply. 6. In order to comply with statute, a Neutral score from LexisNexis Standard Auto Model indicates that the insured's credit report has been influenced negatively by an extenuating life circumstance such as catastrophic injury or illness, temporary loss of employment or the death of an immediate family member. 7. If the insurance score drops at the 3-year review, the amount of increase to the insurance score factor is limited to 0.04 per six-month policy period. RATING FACTORS AND STATISTICAL CODES PRIMARY CLASSIFICATIONS NO YOUTHFUL OPERATOR DRIVE TO OR FROM WORK Age and Sex Operator Age 79 or Over Operator Age 78 Operator Age 77 Operator Age 76 Operator Age 75 Operator Age Operator Age Only Oper in Hshld Female Age All Other Pleasure less than 3 Miles or more, but less than 15 Miles or More, but less than 30 Miles or More Miles Business Use Farm Use Oklahoma (Ed. 004) New Business North Star Mutual Ins. Co. PA - 42 Renewals

45 RATING FACTORS AND STATISTICAL CODES (Continued) PRIMARY CLASSIFICATIONS YOUTHFUL UNMARRIED OPERATOR NOT OWNER OR PRINCIPAL OPERATOR OWNER OR PRINCIPAL OPERATOR FACTORS SHOWN NOT Eligible Eligible NOT Eligible Eligible INCLUDE AGE For Good Student For Good Student For Good Student For Good Student DRIVER TRAINING OF Pleasure Use Drive to Work Pleasure Use Drive to Work Pleasure Use Drive to Work Pleasure Use Drive to Work CREDIT DRIVER or Farm Use Business Use or Farm Use Business Use or Farm Use Business Use or Farm Use Business Use Single FEMALE 17 or less Single FEMALE Single FEMALE Single FEMALE Single FEMALE Single FEMALE Single FEMALE Single FEMALE Single MALE 17 or less Single MALE Single MALE Single MALE Single MALE Single MALE Single MALE Single MALE Oklahoma (Ed. 005) New Business North Star Mutual Ins. Co. PA - 43 Renewals

46 RATING FACTORS AND STATISTICAL CODES (Continued) PRIMARY CLASSIFICATIONS YOUTHFUL OPERATOR - MARRIED MALE FACTORS SHOWN NOT ELIGIBLE ELIGIBLE INCLUDE AGE FOR GOOD STUDENT FOR GOOD STUDENT DRIVER TRAINING OF Pleasure Use Drive to Work Pleasure Use Drive to Work CREDIT DRIVER or Farm Use Business Use or Farm Use Business Use 17 or less RATING FACTORS AND STATISTICAL CODES SECONDARY CLASSIFICATIONS The Rating Factors applicable to the Vehicle Type, Single or Multi-Car Risks and risks with one or more points assigned under the Safe Driver Insurance Plan shall be determined by the addition, or subtraction, of the appropriate Factor from the applicable table below to the Primary Rating Factor. Secondary Rating Factors are applicable on Liability, Medical Payments, OTC, and Collision Coverages. SUB-CLASS VEHICLE TYPE Single Car Multi-Car[RJ3] Oklahoma (Ed. 004) New Business North Star Mutual Ins. Co. PA - 44 Renewals

47 FARM TRUCK RATING FACTOR TABLE Size Class Size Class Size Class Size Class 0-10,000 lbs. GVW 10,001-20,000 lbs. GVW 20,001-45,000 lbs. GVW Over 45,000 lbs. GVW RADIUS & USE LIGHT TRUCKS MEDIUM TRUCKS HEAVY TRUCKS X-HEAVY TRUCKS Radius Miles or less and Annual Mileage - 5, or less, and Not used for Beets or Potatoes Radius - over 100 Miles or Annual Mileage - over ,000, or Hauls Beets or Potatoes Must have personal vehicles or supporting farm coverage insured with North Star. PREMIUM DETERMINATION A. BODILY INJURY, PROPERTY DAMAGE LIABILITY and MEDICAL PAYMENTS Apply the appropriate factor to the Private Passenger base rate. (See paragraph D.) B. OTHER THAN COLLISION (OTC) and COLLISION Determine the symbol from RULE 10. Apply the appropriate factor to the Private Passenger base rate. (See paragraph D.) C. UNINSURED MOTORISTS Use the private passenger rates. The Farm Truck factors do not apply. D. When North Star insures the insureds private passenger cars and pickups, the Farm Trucks may qualify for the same Rating Tier Factor (Rule 42) as is applied to those vehicles if the truck is: 1. Driven 5,000 miles or less annually; and 2. Not used to haul beets or potatoes. Trucks exceeding allowable mileage must be rated in Select. E. The Farm Truck Rates take into consideration the seasonal usage of these vehicles and a lay-up credit is included. Therefore cancellation for seasonal usage is not permitted. F. Farm Trucks are not subject to other classification rating rules. (The Multi-Car Discount does not apply. Farm Trucks do not qualify other vehicles for the Multi-Car Discount.) G. Refer to RULE 5 for application of the Companion Policy Discount. H. Semi Tractors and trailers. Do not bind coverage. Eligible only when North Star insures the insured's Private Passenger Cars and Pickups. Apply the X-Heavy Factor to the Private Passenger base rate. I. Attach Form CF-1164 Farm Truck Supplement. ARTISAN RATING FACTOR Artisan Pickups, Vans and SUV s... Class 8021 Factor.95 LIABILITY, MEDICAL PAYMENTS, OTHER THAN COLLISION (OTC), COLLISION, UNINSURED MOTORISTS COVERAGES are available. PREMIUM DETERMINATION - Apply the factor (Primary +/- Secondary) to the Private Passenger auto rates. Refer to RULE 42 for the Rating Tier Factor. Refer to RULE 5 for the Companion Policy Discount. (This class is not applicable if the vehicle is operated by a driver age 22 or younger.) Vehicles under the Artisan Program cannot be titled in a business or corporation name. Oklahoma (Ed. 005) New Business North Star Mutual Ins. Co. PA - 45 Renewals

48 SCHEDULE OF ENDORSEMENTS Form Number Title Use NSG-PA01 Employers Non Ownership Liability Employers PP Personal Auto Policy Basic Policy NSG-PA02 Corporation As Named Insured Family Farm Corporations NSG-PA03 Pollution Exclusion and Limited Farm Pollution Pollution Exclusion/Supplementary and Clean Up Coverage Payment Provision NSG-PA04 Amendment of Policy Definitions Farm Truck Definition NSG-PA06 Amendment of Part D - Coverage For Damage Awning or Cabana Coverage To Your Auto PP Amendment of Policy Provisions Oklahoma State Requirement PP Federal Employees Using Autos In Government Rural Mail Carrier, etc. Business PP Optional Limits Transportation Expenses Coverage Rental Reimbursement PP Loss Payable Clause To Name Lienholder PP Extended Non-Owned Coverage Coverage for Driving Other Autos PP Trailer/Camper Body Coverage Coverage for Awnings, Cabanas etc. on Recreational Vehicles PP Coverage For Damage To Your Auto Stated Amount Coverage PP Excess Electronic Equipment Coverage and Tapes, Electronic Equipment Records, Disks and Other Media Coverage PP Customizing Equipment Coverage Stated Amount - Customized Vehicle PP Additional Insured - Lessor Name a Lessor PP Named Non-Owner Coverage Insured Does Not Own a Vehicle PP Miscellaneous Type Vehicle Endorsement Motorhomes, Antiques PP Miscellaneous Type Vehicle Endorsement Motorhome Coverage (Motor Homes) PP Uninsured Motorists Coverage Oklahoma Uninsured Motorist Coverage PP Trust Endorsement Additional Insureds PP Named Driver Exclusion Endorsement Oklahoma Other than Insured PP Oklahoma Notice Fraud Notice CF-1402 Agreement Policy Agreement and Index CF-1708 Mutual Policy Conditions State Requirement CF-2016 Roadside Assistance Roadside Assistance Coverage PP Joint Ownership Coverage Oklahoma Other than Insured and Spouse Oklahoma (Ed. 005) New Business North Star Mutual Ins. Co. PA - 46 Renewals

49 OKLAHOMA State Code (35) TERRITORY DEFINITIONS Oklahoma Territory rating codes are determined by the ZIP Code of the insured's principal place of residence. For alternate garaging location Territory Rating Codes - refer to the Home Office. Territory 51 North/West/South Oklahoma City Suburban Territory 52 Cities of Arcadia and Edmond Territory 53 Western Counties Territory 54 Oklahoma City Territory 55 South and East Rural Oklahoma City Oklahoma (Ed. 003) New Business North Star Mutual Ins. Co. T-1 Renewals

50 Territory 56 Southeast Oklahoma City Territory 57 Northeast Counties TERRITORY DEFINITIONS Territory 58- Northeast Rural Oklahoma City Territory 59 South Central Counties Territory 60 Cities of Yukon, Piedmont & Mustang Territory 61 Southeast Counties Territory 62 Cities of Lawton & Medicine Park Territory 63 City of Enid Territory 64 North and East Rural Tulsa Oklahoma (Ed. 003) New Business North Star Mutual Ins. Co. T-2 Renewals

51 TERRITORY DEFINITIONS Territory 65 Cities of Sand Springs, Sapulpa, Glenpool & Bixby Territory 66 City of Tulsa Oklahoma (Ed. 002) New Business North Star Mutual Ins. Co. T-3 Renewals