KANSAS MUTUAL INSURANCE COMPANY DELUXE HOMEOWNERS PROGRAM. General Index Page

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1 General Index Page Rule No. ACV Roofing Additional Amount or Coverages Additional Insureds Additional Living Expense--Increased Limit Additional Residences (1) Occupied by Insured (2) Rented to Others B 32B 32B Antennas and Satellite Receiving Equipment & 25.5 Boats (1) Outboard (2) Inboard-Outboard Business Activities (off premises) (1) Clerical (2) Salesmen (3) Teachers & 34.4 (4) Baby-sitting Cancellations 5 13 Computers Construction Definitions 7 19 Credit Card, Forgery & Counterfeit Money 7 20 Credit, Continuous Renewal Dead-bolt Lock Credit Deductibles 2 & 3 6 Basic Options Special Theft Special Windstorm or Hail Deluxe Pius Homeowners Endorsement 6 17 (1) Extended Theft 6 & 13 17B & 29 (2) Refrigerated Food Products 6 & 13 17C & 31 (3) Credit Card, Forgery & Counterfeit Money 6 17D (4) Fire Department Service Charge 6 17E (5) Liability on Outboard Motors 6 17F Earthquake Coverage 9 21 Electronic Data Processing Equipment & Software Eligibility (All Forms) 1 & 2 3 Endorsements 6 & 7 17 Extended Theft Coverage 4 & 13 17B & 29 Farmers Comprehensive Personal Liability Fire Department Service Charge 9 22 (Over) DHO (ED. 04/02)

2 General Index (continued) Increased Limit Increased Limits--Other Residences Increased Special Limits--Certain Property Insurance By More Than One Company Interpolation Example Page & Rule No Liability (Section 2) Limits of Liability (Minimum Coverages) 4 8 Manual Premium Revision 5 14 New Home Discount Ordinance or Law Coverage 7 21 Other Structures 9 & Permitted Incidental Occupancies 2 5 Personal Injury Personal Property 10 & Increased Limit Increased Limit--Other Residence Policy Forms & Description of Coverages 1 2 Policy Period 5 11 Premium Credits 12 & Rate Change Rate Table 8 Rating Example Refrigerated Food Products Coverage 6 & 13 17C & 31 Related Private Structures 9 24 Replacement Cost 11 & Restriction of Individual Policies 6 16 Round of Premium Scheduled (Inland Marine) Secondary Residence Premises 37 Sewer Backup 6 17G Smoke Alarm Credit 12 28,2.1 Sound Receiving & Transmitting Equipment Territorial Rating Factors Rule Territorial Rating--Territories by County TER- I Territorial Rating--Factors Transfer or Assignment 6 15 Unrelated Structures Vacancy and/or Unoecupancy Whole Dollar Rounding of Premium Wind Generators DHO (ED. 01/15/10)

3 PART I: GENERAL RULES 1. GENERAL INSTRUCTIONS The Deluxe Homeowners Policy Program provides property and liability coverages, using the forms and endorsements specified in this manual. This manual contains the rules and classifications governing the writing of the Deluxe Homeowners Policy. The rules, rates, forms - and endorsements of the Company for each coverage shall govern in all cases not - specifically provided for in this manual. 2. POLICY FORMS AND DESCRIPTION OF COVERAGE The following is a general description of the coverages provided by the individual Homeowners Policy Forms. The Policy should be consulted for exact contract conditions. 2.1 Section I Coverages - Property Damage Coverage A - Dwelling Coverage B - Other Structures Coverage C - Personal Property Coverage D - Loss of Use Form ML-3 Special Form Covers dwelling, other structures, and loss of use against all risks or physical loss, with certain exceptions. Personal Property is covered for the same perils as provided in Form ML-2, Broad Form. 2.2 Section II Coverages--Liability--All Forms Coverage L - Personal Liability Coverage M - Medical Payments to Others Personal Liability Covers payment on behalf of any insured of all sums which the insured shall become legally obligated to pay as damages because of bodily injury or property damage arising out of an insured's premises or personal activities Medical Payments to Others Covers medical expenses incurred by persons, other than the insured, who sustain bodily injury caused by an accident arising out of insured's premises or personal activities. 3. ELIGIBILITY 3.1 In the Deluxe Homeowners Program, Form ML-3 may be issued only on: Owner occupied dwellings. Dwelling must be the principal or primary residence of the insured Dwellings insured to 100% of replacement cost at the time of writing policy or renewal Structures constructed in the last 25 years at the time of initial policy issuance Dwelling must be of superior construction and in excellent repair, and so certified by the agent after careful inspection One family occupancies. DHO-1 (Ed. 01/95)

4 3.1.6 Structures with a centralized heating system. EXCEPTION: any wood, heating oil or coal centralized heating systems, or dwellings equipped only with wall furnaces, shall not be eligible. This does not apply to a fireplace vented through a tile-lined masonry chimney, not used as a primary heating source Residences in the course of construction provided the policy is issued only in the name of the intended owner-occupant of the residence. The peril of theft will be excluded until the residence is completed, occupied on a full-time basis as the insureds primary residence, and the company is notified. 3.2 A Deluxe Homeowners Policy shall not be issued in the Deluxe Homeowners Program: If market value is less then 90% of full replacement cost On mobile or modular homes On seasonal dwellings If there are business operations of any type on the premises Covering any property to which farm forms or rates apply under the rules of the Company. In no event shall a policy be issued to cover any property situated on premises used for farming purposes On dwellings with wood heating stoves Once the dwelling insured reaches 40 years of age, Standard Homeowners rates would then apply. 3.3 Minimum limits of liability are: Coverage A $75,000, Coverage L $100, Coverage M $1, MANDATORY COVERAGES 4.1 It is mandatory that insurance be written for all coverages provided under both Section I and II of the Deluxe Homeowners Policy. 4.2 Section II of the policy requires coverage for the following exposures. When such exposures exist, refer to the pages containing the Section II coverages All additional premises where the named insured or spouse maintain a residence other than business or farm properties; and All residence employees of the named insured or spouse not covered or not required to be covered by worker's compensation insurance. 5. PERMITTED INCIDENTAL OCCUPANCIES Permitted incidental occupancies are not allowed under the Deluxe Homeowners Program. 6. DEDUCTIBLE AND TERRITORIAL RATING FACTORS All Deluxe Homeowners Policies are subject to a deductible applicable to loss under Section I of the policy. This loss deductible applies to each occurrence. The following deductibles are available 6.1 Basic Deductible The Deluxe Homeowners Program provides a $500 deductible applicable to any loss under Section I of the policy. Premiums shown in this manual contemplate this deductible. 6.2 Higher Deductibles For the Deluxe Homeowners Program, the deductible amount is shown on the Declarations Page. DHO-2 (Ed.01115/10)

5 All flat deductibles A policy may be issued with one of the following deductible options at the premium credit or surcharge shown below. Deductible credits apply to Section 1 premiums only. Optional Deductible Factor Maximum $ $ 750. $1, $1,000. $1, $1,500. $2, $2,000. $2, $2,500. $5, $5, Special Theft Deductible - The Deluxe Homeowners policy may be endorsed to provide a Special Theft Deductible applying to loss by theft of property covered under Coverage C of a policy at a premium credit developed below. The premium subject to deductible credit shall be as follows: $1,000 Theft Deductible $10.00 Credit Attach Endorsement KM-IM. 6.4 Special Windstorm or Hail Deductible When this deductible option is selected, this deductible amount will apply to only the peril of windstorm or hail: To develop the premium for this option, multiply the BASE PREMIUM by the factor listed below for deductible amount selected: When a percent deductible is selected, the deductible amount will be that percent of the Coverage A limit. 1% windstorm or hail deductible.97 2% windstorm or hail deductible.94 5% windstorm or hail deductible.90 $1,000 windstorm or hail deductible.96 $2,000 windstorm or hail deductible.92 $5,000 windstorm'or hail deductible.89 no maximum credit applies. KM-WHD (Ed. 01/95) 65 Territorial Rating Factors Apply the applicable credit or surcharge factor. Factors are shown at the bottom of the basic premium charts. NOTE: The territorial rating factor applies to the base premium before considering any other credit or surcharge that may be applicable. 7. SECONDARY RESIDENCE PREMISES--SAME STATE Coverage may be provided on a separate Dwelling Fire & EC Policy. Refer to the Town Dwelling section of this manual. 49 DHO-3 (Ed. 01/15/10)

6 8. LIMITS OF LIABILITY 8.1 The limits of liability required under the Deluxe Homeowners Policy in the Deluxe Homeowners Program are as follow: Section I Coverage A - Dwelling Minimum Limit Coverage B - Other Structures Coverage C - Personal Property Coverage D - Loss of Use Section II Coverage L - Personal Liability Coverage M - Medical Payments to Others Form ML-3 $75,000 10% of limit on Dwelling 60% of limit on Dwelling 20% of limit on Dwelling Form ML-3 $100,000. Each Occurrence $1,000. Each Person 8.2 The limit of liability for Coverage C or D of Section I and for Coverage L or M of Section II may be increased. 8.3 Under Coverage B of Section I an additional amount of insurance may be written on a specific structure. (See page DHO-8 for rules & rates.) 9. INSURANCE BY MORE THAN ONE COMPANY Subject to the consent of the companies, coverage under Section I of a Deluxe Homeowners Policy may be divided between two or more companies on a percentage basis, subject to the rules, rates, forms and endorsements of this manual. When coverage is so divided, Insurance By More Than One Company, ML-178 is required on all polices, and these policies must refer by number and company name to the policy which provides Section II coverage. If the policy is written subject to a deductible, all polices must contain the same deductible. All Section I additional coverages must be subject except Scheduled Personal Property Coverage which may be divided at the option of the participating companies. To determine the premium to be prorated among the companies, reduce the basic premium for the Coverage A, Dwelling amount by $ This premium, plus any additional premium(s) for Section II coverages, shall be retained by the company writing the Section II Liability Coverages. The remaining applicable premium shall be prorated among the participating companies. DHO-4 (Ed.09/08)

7 DEL U) 10. CHANGE ENDORSEMENT Endorsement ML-45 or KM-45, Change Endorsement, provides the minimum information requirements for any endorsement or change that takes place during the term of the policy. This endorsement must be used or the equivalent information provided. Copies of endorsements used must accompany this endorsement or its equivalent. 11. POLICY PERIOD The Deluxe Homeowners Policy may be written for a period of one year and may be extended for successive policy periods by extension certificate based upon the premiums, forms and endorsements then in effect for the Company. 12. OTHER INSURANCE Credit for existing insurance other than Insurance By More Than One Company under Rule 9 is not permitted. 13. CANCELLATIONS OR REDUCTIONS The return premium for cancellation of the policy or the reduction in coverage or limits of liability is computed as follows: 13.1 SHORT RATE - When the cancellation or reduction is at the request of the insured PRO RATA - When the cancellation or reduction is requested by the Company PRO RATA - When the policy is canceled because of a mortgage foreclosurer FLAT - When the policy cannot be delivered or is refused by the insured within the first 30 days of inception or renewal date MINIMUM EARNED PREMIUM - A $15.00 minimum earned premium applies in the event of any cancellations, except for a flat cancellation. 14. MANUAL PREMIUM REVISION Any revision of the premiums or rates in this manual apply to: 14.1 New and Renewal Policies; 1. on the effective date announced, and 2. in the manner stated in the announcement. 142 Existing Policies for the advantage of premium or rate reduction: 1. Short rate for premium reductions applied in the ten current policy year of policies in effect more than 30 days on the effective date of the revision, or 2. Pro rata when applied to policies in effect 30 days or less on the effective date of the revision. 143 Forms and Endorsements Unless otherwise provided at the time the premium revision becomes effective, the current forms and endorsements must apply to all items of the policy to which the premium revision applies. DHO-5 (01/95)