FREMONT INSURANCE COMPANY

Transcription

1 INDEX Page No. 7 Accident, Violation and/or Comprehensive Free Discount 17 Additional Insured 18 Antique Auto A-Rates-5 Auto Miscellaneous (Pick-up Campers, Camping & Travel Trailers), Rates for 2, 3, 4 Auto Underwriting Rules 18 Classic Auto 15 Collision 15 Comprehensive (Other Than Collision) Coverage Only 17 Customizing Equipment Coverage 12 Definition of Chargeable Accidents 5 Definitions 7-9 Discount Plan Definitions 13 Experience Period 12 Experience Rating Plan 16 Extended Non-Owned Coverage 15 Extended Transportation Expense Coverage (Rental Reimbursement) 17A First Accident or Minor Violation Forgiveness A-Forms-1 Forms and Endorsement List 16 Full Glass Coverage 22 Group Auto 7, 8 Insurance Scoring 1 Introduction 17 Limited Property Damage Liability (Mini-Tort) 16 Loan/Lease Gap Coverage Motor Homes 6, 7 Multi-Policy Credit 6 Multiple Car Credit 15 Optional Collision Coverages 10, 11 Other Credits/Surcharges 10 Personal Injury Protection Debits & Credits 17A Pickup Camper Bodies 7-9 Preferred Customer Discounts A-Rates-4 Primary Statistical Codes 9 Rating Factors for Higher Symbols 16 Roadside Assistance 17 Satellite Receiving and Transmitting Devices A-Rates-4 Secondary Classifications * 18 Statutory Assessments 7 Term/Full Pay Discount A-Terr-1-26 Territory Groups 17A Trailers Utility, Camping or Horse 16 Underinsured Motorist Coverage 16 Uninsured Motorist Coverage 5, 6 Use of Car 17A Vehicle Enhanced Physical Damage Coverage 9 Vehicle Rating Symbols 7/13 A-Index-1

2 POLICY AND ENDORSEMENT FORMS FM-PAP 0706 Personal Auto Policy PP Additional Insured Lessor PP Auto Loan/Lease Coverage PP Extended Non-Owned Coverage for Named Individual PP Federal Employees Using Autos in Government Business FM Michigan No-Fault Collision Insurance Notification FM Rating Information Michigan PP Coverage for Damage to Your Auto PP Joint Ownership Coverage FM Additional Insured Other FM Customizing Equipment FM Motor Home Protector PA-FG 0706 Other Than Collision Full Glass Coverage FM-PAA 0309 Personal Auto Amendment of Policy Provisions FM-ADI 0308 Accidental Death Indemnity Expense Coverage FM-SRT 0308 Satellite Receiving and Transmitting Device Theft Coverage FM-ACC 0410 First Accident or Minor Violation Forgiveness FM-PAEC 0410 Vehicle Enhanced Physical Damage Coverage * FM-PA Personal Auto Amendatory Endorsement FM-NOI 0710 Notice of Intention to Reside Form Declaration 10/12 A-Forms-1

3 INTRODUCTION Fremont's Personal Auto program was developed to provide coverage for persons eligible for standard Personal Automobile coverage according to this manual's rules and rates. Authorized agents may bind and accept personal auto applications for persons determined eligible. Binder charges will be processed when coverage has been bound and a policy is not issued. NO BINDING AUTHORITY IS GRANTED FOR: A. ineligible applicants B. ineligible vehicles A completed application will be required for each applicant for automobile insurance. The agent should conduct a personal interview with the applicant to determine the following information for each driver in the household who may operate an insured vehicle: A. Birth date and driver s license number; B. Name and policy number of the prior carrier and expiration date; C. The eligibility of all drivers; D. Any tickets or accidents within the past 5 years; E. Suspended or revoked license; F. Any limitation or restriction imposed by a previous carrier. All applicants and drivers are required to furnish driver s license information with their application for automobile coverage. For all new applicants (with more than 1 year driving experience), a current motor vehicle record and other investigative reports will be requested and used in evaluating eligibility and any applicable experience rating points. For drivers with less than 1 year experience, no motor vehicle record will be immediately obtained. Rather, a pending will be instituted to request a motor vehicle record at a later date, at which the driver will have at least one year of driving experience to evaluate. For all in force drivers, a motor vehicle record will be requested at least once every 10 years. For policies to be renewed with an experience rated driver, a current motor vehicle record will be obtained to confirm a change in the applicable experience rating surcharge. For the addition of new drivers to an existing policy, a current motor vehicle record will be obtained. For substantially at-fault accidents reported, a current motor vehicle record will be ordered to determine if a traffic violation accompanied the substantially at-fault accident, and secondly to determine which experience rating points are applicable. NOTE: Experience points may be charged for either the substantially at-fault accident or the resulting traffic violation, whichever is greater - but not both. For both new applicants and renewals, eligibility will be determined on the basis of the motor vehicle record, statements made on the application, prior carrier information or equivalent information when that information becomes known to the company. * Policies may be written for a period of six (6) months or (12) months and may be extended for successive policy periods by a renewal declaration or certificate based on the premiums, forms and endorsements then in effect for the company. (12) month policies rates are two times the (6) month rate. 10/08 A-1

4 AUTO UNDERWRITING RULES A. The following applies to both new business and renewals. No persons will be considered for automobile insurance under this section of the manual unless: 1) That person has furnished sufficient information to the Company for the purpose of determining eligibility under this section; and 2) That person is an owner or registrant of a private passenger nonfleet automobile registered or to be registered in Michigan; or 3) That person holds a valid Michigan license to operate a motor vehicle. NOTE: By definition, corporations, partnerships, unincorporated associations, and persons not required to maintain No-Fault coverage, such as motorcyclists are not eligible persons. B. Any person who qualifies for automobile insurance under item 1 above must be offered insurance or renewal unless: 1) The applicant or Named Insured is not required to maintain security under the Michigan No-Fault Law (Section 3101), unless the person intends to reside in the state for 30 days or more and makes a written statement of that intention on a form approved by the Commissioner. 2) The person has been convicted of fraud or intent to defraud involving an insurance claim or an application for insurance within the immediately preceding 5 year period. 3) The person has been successfully denied payment by an insurer of a claim in excess of $1,000 under an automobile insurance policy, where there is evidence of fraud or intent to defraud involving an insurance claim or application within the immediately preceding 5-year period. 4) The person s driver s license is under suspension or revocation. * 5) A person, during the immediately preceding 3-year period, has been convicted under, or who has been subject to an order of disposition of the family division of circuit court for a violation of any of the following: a. Section 324 or 325 of the Michigan penal code, being sections and of the Michigan Compiled Laws; or under any other law of this state the violation of which constitutes a felony resulting from the operation of a motor vehicle. b. Section 625 of the Michigan vehicle code, 1949 PA 300, as amended, being section of the Michigan Compiled Laws. c. Section 617, 617a, 618 or 619 of the Michigan Vehicle Code, being section , A, and of the Michigan Compiled Laws. d. Section 626 of the Michigan Vehicle Code being section of the Michigan Compiled Laws; or for a similar violation under the laws of any other state or a municipality within or without this state. These above references include but are not limited to the following: a. Manslaughter, Negligent Homicide b. Driving under the influence of liquor, drugs, controlled substances c. Failure to stop and identify at the scene of an accident d. Reckless Driving e. Impaired Driving 6) The person fails to provide proof that No-Fault insurance was maintained in force with respect to any vehicle owned and driven or moved by that person or by a member of the household of that person during the 6-month period immediately preceding application. Such proof shall take the form of a certification by the person on a form provided by the insurer that the vehicle was not driven or moved without maintaining the insurance required by section 3101 during the 6-month period immediately preceding the application. 7) For a new applicant, the person s driving record or the driving record of a member of the household for the three year period immediately preceding the application has more than six (6) eligibility points. For an existing policyholder, the person s driving record or the driving record of a member of the insured s household for the three years preceding the renewal has more than: a. Seven (7) eligibility points if continuously insured with the company five years or more but less than seven years; b. Eight (8) eligibility points if continuously insured with the company seven years but less than ten years; 5/03 A-2

5 c. Nine (9) eligibility points if continuously insured with the company ten years or more. If there is more than one driver assigned to a vehicle, each driver must remain eligible under the expanded definition of eligibility above. In addition, when one driver has more than six (6) points, the combined total for all drivers may not exceed eleven (11). The household member mentioned above must usually account for 10% or more of the use of a vehicle insured or to be insured. A person who is the principal driver for 1 automobile insurance policy shall be rebuttably presumed not to usually account for more than 10% of the use of other vehicles of the household not insured under the policy of that person, unless information is discovered otherwise. INSURANCE ELIGIBILITY POINTS - Insurance Eligibility points are defined as follows: 4 Speed is greater than 15mph over posted limit or Careless Driving 3 Speed is greater than 10mph, but is less than 16mph over posted limit 2 Speed is 10mph or less over posted limit * 2 Energy speed 15mph or less 2 All other moving violations 3 First "substantially at-fault" accident 4 Second and subsequent "substantially at-fault" accident(s) "Substantially at-fault" means a person's action or inaction was more than 50% of the cause of an accident. * 8) The person refuses to accept a mandatory deductible of $150 for Other Than Collision coverage if the person has had more than the following number of comprehensive claims over the most recent 3-year period from the date of application or renewal: a. 3 on a single car policy, or b. 4 on a multi-car policy. 9) A person whose policy of automobile insurance has been canceled because of nonpayment of premium or financed premium within the immediately preceding 2 year period, unless the premium due on a policy for which application has been made, is paid in full before issuance or renewal of the policy. a. An application will not be considered new business when it is submitted by the same applicant for which a policy was issued by this company and was canceled by this company for nonpayment of premium, provided: (1) A new application is completed and submitted to the company within 30 days of the cancellation date. (2) The effective date will be the date the application was submitted (coverage may not be backdated to the cancellation date of the former policy). (3) The full six month premium must be paid in full to the agent before issuance of the policy. (4) All premiums due on previously canceled policy must be paid in full. 10) One or more incidents involving a threat, harassment, or physical assault by an insured or applicant for insurance on an insurer employee, agent or agent employee while acting within the scope of his or her employment if a report of the incident is filed with an appropriate law enforcement agency. C. Ineligible vehicles An ineligible vehicle is any of the following: 1) Any vehicle substantially modified from the vehicle s original manufactured state for purposes of increasing the speed or acceleration capabilities of the vehicle, such as vehicles where the engine or drive train has been altered to increase speed or acceleration and/or elimination of sheet metal to reduce weight. 2) Any vehicle used for racing. * 3) Any vehicle in a deteriorated condition, unless a motor vehicle inspection is completed showing that the entire vehicle, its brakes, tires, lights and steering are in properly maintained working order, and meets the motor vehicle safety requirements of the Michigan Complied Laws, to ) Any vehicle of custom manufacture or with a value in excess of $75,000. 5) Any motor home with a value in excess of $150,000. 1/04 A-3

6 6) Any vehicle for which this Company does not have a rate lawfully in effect (example: buses and commercial vehicles). 7) Any vehicle used as a public livery, for transportation of passengers for hire, for rental purposes, for commercial purposes, or as an emergency vehicle - including any full-time policeman, special investigators and/or security employees who regularly use their personal automobiles in the performance of their duties, except a vehicle used for volunteer or charitable purposes, or for which reimbursement for normal operating expenses is received. 8) Any vehicle of unique make or design which does not have an authorized repair dealer or replacement parts readily available; and vehicles for which repairs would constitute an extraordinary expense due to: a. Custom painting (including murals); or b. body customization; or c. mechanical changes; or other alterations from the vehicle's original manufactured state, which cost in excess of $1,000 to repair or replace. This rule does not apply to converted or modified vans or professionally modified motor homes. d. The company considers the following vehicles to be in this category: Aro, Lancia, Bentley, Lotus, DeLorean, Maserati, Ferrari, Rolls Royce, AM General, TVR, Hummer and Lamborghini. 9) Homemade automobiles, dune buggies, toy cars, golf carts or ATV's. D. Personal Auto Rating Classifications by Operator 1) All operators over age 24. If more than one operator is assigned to one vehicle, the highest rated operator shall be used for classification purposes. 2) Youthful Occasional Operator - Operators under 25 years of age who are not owners or principal operators of the automobile. If there is more than one occasional youthful operator, each operator must be rated on a separate auto. 3) If a policy insures both adult and youthful operators and the number of insured vehicles equals or exceeds the number of licensed divers, each youthful operator will be considered the principal operator of one vehicle (youthful operators may be assigned to the vehicle most frequently operated) and the appropriate premium charged. 4) Any vehicle rated for a youthful operator age 22 or younger who is a student temporarily residing at school or college over 100 road miles from the place the vehicle is principally garaged, shall be rated as "occasional operator" age 21 or 22. E. Cancellation 1) If a policy, vehicle or form of coverage is canceled, return premium is pro rated. 2) Cancellation and Nonrenewal by Company a. The Company may cancel a policy by mailing written notice to the Named Insured at least: (1) 10 days in advance, by certified mail, if the cancellation is for nonpayment of premium or (2) 20 days in advance, by certified mail, if the cancellation is during the first 55 days of coverage of the original policy; or (3) 30 days in advance, by certified mail, in all other cases. b. The Company may refuse to renew or continue a policy by mailing written notice, by certified mail, to the Named Insured at least 30 days before the end of the policy period. The Company shall refuse to renew or continue a policy only if the risk is unacceptable to the Company in accordance with the Company's underwriting rules on file with the Michigan Insurance Bureau. c. The Company may cancel a new policy during the first 55 days of coverage because: (1) of nonpayment of premium; or (2) the risk is unacceptable to the Company in accordance with the Company's underwriting rules on file with the Michigan Insurance Bureau. d. After the original policy has been in effect for 55 days or if the policy is a continuation or renewal, the Company may terminate only because: (1) of nonpayment of premium; or (2) the driver's license of the (a) Named Insured, or (b) any resident operator, or 5/03 A-4

7 DEFINITIONS (c) any other person who customarily operates the auto has been suspended or revoked, and the suspension or revocation has become final. This must have occurred since the last anniversary date of the original effective date. A. PRIVATE PASSENGER AUTO 1) A private passenger auto is a four wheeled motor vehicle, other than a truck type, owned or leased under contract for a continuous period of at least 6 months and a. not used as a public or livery conveyance for passengers, and b. not rented to others. 2) A motor vehicle that is a pick-up or van shall be considered a private passenger auto if it: a. is owned by individuals or by a husband and wife who are residents of the same household; b. has a Gross Vehicle Weight of less than 10,000 lbs.; and c. is not customarily used in the occupation, profession or business of the insureds (except farming), other than in the course of driving to and from work or job locations. A pick-up 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: (1) it meets the conditions in a., b., and c. above; and (2) coverage is limited in accordance with the Federal Employees Using Autos in Government Business endorsement. 3) A motor vehicle owned by a farm family co-partnership or farm family corporation shall be considered a private passenger auto owned by 2 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. 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. OWNED, as used in this manual, includes an auto leased under contract for a continuous period of at least 6 months. If an auto lease contract requires the lessee to provide primary insurance for the lessor, attach the Additional Insured-Lessor endorsement. POLICY ELIGIBILITY A Personal Auto Policy shall be used to afford coverage to personal autos and motor vehicles considered as personal autos, as defined in Rule A, if: 1) they are written on a specified auto basis, and 2) they are owned by an individual, or by a husband and wife who are residents in the same household, or 3) they are owned jointly by two or more resident relatives other than husband and wife. 4) they are owned jointly by two or more resident individuals. 10/08 A-5

8 USE OF CAR Pleasure Use means there is no business use of the automobile, nor is it customarily used for driving to and from work or school. EXCEPTION- Car Pools - Automobile driven to work or school two days or less a week, or two weeks or less in a five week period will be classed as Pleasure use. Under 3,000 Annual Miles. This classification is available for operators 65 years of age and over operating a covered motor vehicle less than 3,000 miles annually. Drive to work or school 3 miles or less means there is no business use of the automobile, but it is customarily used for driving to or from work or school a distance of 3 miles or less one way. Drive to Work or School over 3 miles, less than 15 means there is no business use of the automobile, but it is customarily used for driving to and from work or school a distance of 4 to 15 road miles one way. Drive to Work or School 15 Miles or over means there is no business use of the automobile, but it is customarily used for driving to and from work or school a distance of over 15 road miles one way. Business Use means that the use of the automobile is required by or involved in the duties of the applicant or any other person operating the automobile in his occupation, profession or business, other than in going to or from his principal place of occupation, profession or business. Farm Use means that the personal autos are used by an individual, a family co-partnership or corporation, principally garaged on a farm and are neither used in any occupation other than farming nor customarily used in going to or from work or school. MULTIPLE CAR CREDIT A 20% multi-car discount will apply if the company provides automobile coverage for an individual or individuals residing in the same household and the company provides coverage for two or more private passenger automobiles in that household. However, the credit will not apply to any vehicle regularly operated by any person who is not a member of that household. A multi-car discount will be allowed if there is a company vehicle regularly provided a member of the household. As used in this rating rule, household means the residence of individuals related by blood, marriage or adoption and the wards or foster children of any such individuals living at that address. Children away at school or college are to be considered as residents of such households. MULTI-POLICY CREDIT When a Personal Automobile Policy and a Homeowners, Mobilowners, Farmowners, Country Estate, Yacht, Boatowners, CPP, BOP, Commercial Auto or Worker s Compensation Policy are both written with Fremont Insurance Company for the same named insured (or in case of commercial support, the named insured s business), the Personal Auto Policy is eligible for a 20% Multi-Policy Credit. The following rules apply: A. If property support, the property location and the Personal Automobile garaging location must be in the same state. B. If property support is a condominium or renter policy, minimum coverage C must be $20,000 or greater to qualify for the auto policy discount. C. The credit may be applied to new business or renewals of eligible policies. The credit will not be applied automatically. Please provide your underwriter with the companion policy number. D. The credit is applied to each coverage premium. E. The credit will not apply to statutory charges. 7/06 A-6

9 F. The policy declarations will reflect the credit, when applicable. G. If the companion policy is canceled, the credit will be removed from the Personal Automobile policy. In addition, a 5% credit will apply if a supporting Umbrella policy is written with Fremont Insurance Company. TERM/FULL PAY DISCOUNT When the applicant or insured has elected the full term payment option on a 6 month policy or full term or semi-annual pay for a 12 month policy, a 10% credit will apply. ACCIDENT, VIOLATION AND/OR COMPREHENSIVE FREE DISCOUNT If all applicants or insureds on the policy have had no accidents regardless of fault in the last 3 years, a 3% discount will apply. If all applicants or insureds on the policy have had no violations, a 3% discount will apply. If all applicants or insureds on the policy have had no comprehensive losses over $500 in the last 3 years, a 3% discount will apply. INSURANCE SCORING If the applicant receives a Not Scored due to insufficient credit message instead of an Insurance Score, the score will be assumed to be 650. No other message qualifies the applicant for this exception. If the applicant/insured signs a Fremont Insurance certification that their financial transactions are cash/checking account based, credit cards or bank borrowing are not used and have not been denied, all amounts owed are currently paid, five figure or higher bank balance is maintained, have been claim-free during the last three years and have no mortgage and their banking organization signs it certifying that the above balance is maintained, and that no overdraft or late payment has occurred during the last two years, the score will be assumed to be 750. * PREFERRED CUSTOMER DISCOUNT PLANS NEW BUSINESS The following discounts apply to new business by vehicle. Every criterion must be met. If not met, the vehicle cannot receive a discount and the vehicle must be quoted at standard base rates. * 1. PREFERRED CUSTOMER DISCOUNT (28% Discount) A. No operator has, as defined in the Experience Rating plan a major (8 pts.) chargeable violation in 60 months. B. Assigned operator must have continuously held a valid U.S. driver s license for the last 36 months. (Excludes youthfuls on their parents policy) C. Assigned operator must have continuously maintained auto liability insurance (not through the Assigned Risk Plan) for the past 36 months. (Excludes youthfuls on their parents policy) D. Named insured has an Insurance Score of at least 650. * 2. SUPER PREFERRED CUSTOMER DISCOUNT (43% Discount) A. No operator has, as defined in the Experience Rating plan, a major (8 pts.) chargeable violation in 60 months. B. Assigned operator must have continuously held a valid U.S. driver s license for the last 36 months. (Excludes youthfuls on their parents policy) C. Assigned operator must have continuously maintained auto liability insurance (not through the Assigned Risk Plan) for the past 36 months. (Excludes youthfuls on their parents policy) D. Named insured has an Insurance Score of at least /11 A-7

10 * 3. ULTRA PREFERRED CUSTOMER DISCOUNT (52% Discount) A. No operator has, as defined in the Experience Rating plan, a major (8 pts.) chargeable violation in 60 months. B. Assigned operator must have continuously held a valid U.S. driver s license for the last 36 months. (Excludes youthfuls on their parents policy) C. Assigned operator must have continuously maintained auto liability insurance (not through the Assigned Risk Plan) for the past 36 months. (Excludes youthfuls on their parents policy) D. Named Insured has an Insurance Score of at least 750. * 4. ULTRA-PLUS PREFERRED CUSTOMER DISCOUNT (56% DISCOUNT) A. No operator has, as defined in the Experience Rating plan, a major (8 pts.) chargeable violation in 60 months. B. Assigned operator must have continuously held a valid U.S. driver s license for the last 36 months. (Excludes youthfuls on their parents policy) C. Assigned operator must have continuously maintained auto liability insurance (not through the Assigned Risk Plan) for the past 36 months. (Excludes youthfuls on their parents policy) D. Named Insured has an Insurance Score of at least 800. PREFERRED CUSTOMER DISCOUNT PLANS RENEWAL The following discounts apply to renewal business by vehicle. Every criterion must be met. 1. Renewal Preferred Discount The vehicle must meet the following criteria: A. No operator has, as defined in the Experience Rating plan, a major (8 pts.) chargeable violation in 60 months; B. Assigned operator must have continuously held a valid U.S. driver s license for the last 36 months; (Excludes youthfuls on their parents policy) C. Assigned operator must have continuously maintained auto liability insurance (not through the Assigned Risk Plan) for the past 36 months; (Excludes youthfuls on their parents policy) D. Named insured has an Insurance Score of at least 650; and the policy must have no more than two late payments for the past 12 months. Excess of two late payments in 12 months will result in a 1 (one) tier level reduction. If insured requests and agrees to term (full pay) or EFT payment option, then the reduction due to late payments will be forgiven. 2. Renewal Super Preferred Discount The vehicle must meet the following criteria: A. No operator has, as defined in the Experience Rating plan, a major (8 pts.) chargeable violation in 60 months. B. Assigned operator must have continuously held a valid U.S. driver s license for the last 36 months; (Excludes youthfuls on their parents policy) C. Assigned operator must have continuously maintained auto liability insurance (not through the Assigned Risk Plan) for the past 36 months; (Excludes youthfuls on their parents policy) D. Named insured has an Insurance Score of at least 700; and the policy must have no more than two late payments for the past 12 months. Excess of two late payments in 12 months will result in a 1 (one) tier level reduction. If insured requests and agrees to term (full pay) or EFT payment option, then the reduction due to late payments will be forgiven. 10/11 A-8

11 3. Renewal Ultra Preferred Discount The vehicle must meet the following criteria: A. No operator has, as defined in the Experience Rating plan, a major (8 pts.) chargeable violation in 60 months. B. Assigned operator must have continuously held a U.S. driver s license for the last 36 months; (Excludes youthfuls on their parents policy) C. Assigned operator must have continuously maintained auto liability insurance (not through the Assigned Risk Plan) for the past 36 months; (Excludes youthfuls on their parents policy) D. Named insured has an insurance score of at least 750; and the policy must have no more than two late payments for the past 12 months. Excess of two late payments in 12 months will result in a 1 (one) tier level reduction. If insured requests and agrees to term (full pay) or EFT payment option, then the reduction due to late payments will be forgiven. 4. Renewal Ultra-Plus Preferred Customer Discount The vehicle must meet the following criteria: A. No operator has, as defined in the Experience Rating plan, a major (8 pts.) chargeable violation in 60 months. B. Assigned operator must have continuously held a U.S. driver s license for the last 36 months; (Excludes youthfuls on their parents policy) C. Assigned operator must have continuously maintained auto liability insurance (not through the Assigned Risk Plan) for the past 36 months; (Excludes youthfuls on their parents policy) D. Named insured has an insurance score of at least 800. and the policy must have no more than two late payments for the past 12 months. Excess of two late payments in 12 months will result in a 1 (one) tier level reduction. If insured requests and agrees to term (full pay) or EFT payment option, then the reduction due to late payments will be forgiven. * VEHICLE RATING SYMBOLS Vehicle rating symbols are those filed by ISO in the ISO Symbol and Rating Identification Section of the ISO Manual. Base premiums for the next subsequent model year shall be increased 2% above the base premium for the current model year, unless shown otherwise on the rate pages. * RATING FACTORS FOR HIGHER SYMBOLS TABLE A (Symbol) Factors used for 1990 and subsequent model year vehicles. Other Than Collision and Collision premiums are determined as follows: a. Determine premium for Symbol 5 for the specific territory b. Multiply premium for Symbol 5 by the applicable factor below (round to nearest dollar): Comp. Coll. Symbol Symbol Symbol Symbol Symbol Symbol /08 A-9

12 PERSONAL INJURY PROTECTION DEBITS AND CREDITS A. WORK LOSS INCREASE The amount of increase shown on the territory premium pages does not constitute a specific amount of Work Loss Coverage as the actual wage loss (subject to 85% limit) applies at time of accident. The optional amounts offered are in addition to the Maximum Wage Loss and Survivors Loss Benefit determined annually by the Insurance Commissioner. B. COORDINATION OF BENEFITS CREDITS 1) EXCESS MEDICAL (20% Credit) - Named insured and any family members residing in the same household are protected under the provisions of any individual, blanket or group accident, disability or hospitalization insurance, or medical or surgical reimbursement plan. MEDICARE AND MEDICARE SUPPLEMENT POLICIES DO NOT QUALIFY UNDER THIS RULE. (See premium on Territory Rate page.) Any loss paid under Excess Medical by this company shall be subject to a deductible of $300.00, per accident. However, if the named insured or relative does have primary medical coverage, which applies to injury arising out of automobile accidents and the policy is in effect at the time a loss occurs, the $ deductible will be waived as to such loss. 2) EXCESS LOSS OF WAGES (5% Credit) - Named Insured and any family members residing in the same household are protected under the provisions of any individual, blanket or group accident or disability insurance or salary or wages continuation program. (See premium on Territory Rate Page.) 3) EXCESS MEDICAL AND EXCESS LOSS OF WAGES (25% Credit) - Named Insured and any family members are eligible for excess medical and excess wages as defined in B.1 and B.2. 4) WORK LOSS BENEFIT WAIVER (10% Credit -- Apply credit to "Full" or "Excess Medical" PIP premiums displayed on Territory Rate Pages See Retired Named Insured) -- Any operator, who is 60 years of age or older, is not eligible to receive work loss benefits and has signed waiver form. C. SAFETY BELT/PASSIVE RESTRAINT DISCOUNT 1) Safety Belt Discount...20% The Personal Injury Protection premium will be reduced by 20% if the Named Insured agrees that: a. All drivers and front seat passengers in a vehicle for which he or she is shown as the Named Insured will wear safety belts while the vehicle is being operated. b. He or she will wear a safety belt while a driver or front seat passenger in all motor vehicles equipped with safety belts. c. If it is determined that the preceding conditions have not been met, the policyholder will not be eligible for a Safety Belt Discount for 12 months beginning with the next renewal and the policyholder will have to complete and sign a new application for a Safety Belt Discount. 2) Passive Restraint Discount The Personal Injury Protection premium will be reduced as follows for those private passenger autos equipped with any factory installed passive restraint system which meets published federal safety standards: a. Air Bags - Driver's side only... 20% b. Air Bags - Full front... 30% c. Air Bags - Full front and side... 35% 3) Maximum combined safety belt/passive restraint discount... 35% OTHER CREDITS/SURCHARGES A. GOOD STUDENT CREDIT (10% Credit) Applies to any vehicle rated for an occasional or principal youthful operator if the youthful operator is a full time student in high school, college or a vocational/technical school and maintains a cumulative grade point average of "B" or better or equivalent. The policyholder must provide a copy of report card or other evidence of grades on an annual basis to continue receiving the credit. This discount is removed following an at-fault accident or moving violation. 7/07 A-10

13 B. ANTI-LOCK BRAKE DISCOUNT (5% Credit) A five percent credit applies to bodily injury, property damage, PIP and collision coverages when the vehicle is equipped with anti-lock brakes. C. ANTI-THEFT DEVICE CREDIT (Varies) Vehicles equipped with appropriate anti-theft devices will receive a credit on Other than Collision coverages. 5% discount for the following devices: 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; 2) Active disabling devices which disable the vehicles by making the fuel, ignition or starting system inoperative; 3) Etching of the 17 digit VIN on windshield, side glass and rear window. VIN is Vehicle Identification Number; or 4) Any other device provided the device is included on the list of or meets the criteria for approved devices established by the Michigan Automobile Theft Prevention Authority (MATPA). 15% discount for the following devices: 1) Passive disabling devices which disable the vehicles by making the fuel, ignition or starting system inoperative; or 2) Active disabling devices which disable the vehicles by making the fuel, ignition or starting system inoperative combined with the etching of the 17 digit VIN on windshield, side glass and rear window. 20% discount for a Vehicle Recovery Systems which: 1) Is activated when the vehicle is reported stolen and 2) Transmits a signal that can be tracked by law enforcement units. Notes: a. A disabling device is categorized as ACTIVE if a separate manual step is required to engage the device. b. A disabling device is categorized as PASSIVE if no additional manual step is required to engage the device. c. If a vehicle is equipped with more than one qualifying device, only the single highest discount shall apply. * D. GARAGED VEHICLE DISCOUNT (5% Credit) Vehicles that are totally enclosed by three walls and a garage door during the day and/or at night are eligible for this discount. Applies to Other Than Collision coverage. * E. PREMIER RISK DISCOUNT (5% Credit) A five percent credit applies to risks that meet the following policy level qualifications: 1) No operators under 25 years old 2) Multi-policy 3) Bodily Injury limits of 100/300 or greater 4) No at-fault accidents 5) Insurance score of 750 or higher * F. MATURE OPERATOR DISCOUNT (5% Credit) A five percent credit applies when all operators on the policy are 50 or over. 7/07 A-11

14 EXPERIENCE RATING PLAN A. DEFINITION OF A CHARGEABLE ACCIDENT A chargeable accident shall be any automobile accident in which any resident operator is substantially at fault while operating any personal automobile resulting in damage to any property, including his own, in excess of $1500 or in bodily injury or death. If another loss (regardless of amount of the loss) deemed substantially at fault or in bodily injury or death occurs within three years of the first forgiven loss, then both losses will be used for experience rating. Exceptions: 1) automobile lawfully parked (an automobile rolling from a parked position shall not be considered lawfully parked, but shall be considered as the operation of the last operator); or 2) applicant or other operator residing in the same household, or owner, reimbursed by, or on behalf of a person responsible for the accident or has judgment against such person; or 3) automobile of an applicant or other operator resident in the same household struck in rear by another vehicle and the applicant or other resident operator has not been convicted of a moving traffic violation in connection with the accident; or 4) operator of the other automobile involved in such accident was convicted of a moving traffic violation and the applicant or other operator resident in the same household was not convicted of a moving traffic violation in connection therewith; or * 5) automobile operated by applicant or other operator resident in the same household is damaged as a result of contact with a "hit -and-run driver", if applicant or other operator so reports the accident to proper authority within 24 hours or as soon as reasonably possible; or 6) accidents involving damage by contact with animals or fowl; or 7) accidents involving Physical Damage, limited to and caused by flying gravel, missiles, or falling objects; or 8) accidents occurring as a result of the operation of any automobile in response to any emergency if the operator at the time of the accident was responding to a call to duty as a paid or volunteer member of any Police or Fire Department, First Aid Squad, or any law enforcement agency. NOTE: This exception does not include an accident occurring after the emergency situation ceases or after the private passenger automobile ceases to be used in response to such emergency; or 9) Experience rating surcharge will be waived for a driver's FIRST substantially at-fault accident less than $3,000 when the driver has driven 5 consecutive years without a substantially at-fault accident on an FMIC auto policy immediately prior to the loss. B. DEFINITION OF AT-FAULT ACCIDENT A substantially at-fault accident is one in which the operator's action or inaction was more than 50% of the cause of the accident. C. ADMINISTRATIVE RULES 1) Absence of a moving traffic violation is not a factor in the determination of a chargeable accident. 2) Refund of Surcharged Premium - if a higher rate has been assigned as the result of an accident and it is subsequently learned that the accident falls under one of the exceptions enumerated in the rule, the company shall refund the increased portion of the premium generated by the accident to the insured. 3) The information necessary to assign the proper experience rate shall be determined from any one or combination of the following: a.) Company's own records; b.) Motor Vehicle records; c.) prior carrier information; or d.) An application signed by the applicant and producer. 4) An automobile replacing an existing one shall be subject to the same driving record points as the replaced vehicle, unless there has been a change in drivers. 10/08 A-12

15 5) When an automobile is deleted from the policy and has a higher number of driving record points than a remaining vehicle, the driving record points applicable to the deleted car shall be reassigned, unless the driver(s) with the points does not drive the remaining vehicle. 6) Any adjustment to assigned driving record points shall be made only at inception and upon each subsequent term. This rule shall not apply to the addition or deletion of drivers. Their driving record points shall be assigned or eliminated effective the date they are added to or deleted from the policy. 7) If more than one violation is received at the same time for the same occurrence, only the one which results in the higher number of driving record points shall be assigned. 8) In the case of a violation resulting from an accident, points will be assessed for an at-fault accident or violation, whichever is greater. D. EXPERIENCE PERIOD The experience period shall be the 2, 3 or 5 years immediately preceding the effective date of the policy, as displayed on Page A-14 and Page A-15. E. EXPERIENCE RATING POINTS Points shall be assigned in accordance with the computation formula for motor vehicle violations and/or substantially at-fault chargeable accidents, which the applicant or any operator of the vehicle currently a resident in the same household has received, during the previous two, three or five year period from the effective date of the policy. Points will be accumulated on a per driver basis and surcharged on the vehicle driven by each driver. If there is more than one driver per vehicle, the total points for all drivers of that vehicle will be combined. F. VEHICLES COVERED The experience rating plan applies to all vehicles rated as personal autos and motor homes licensed for road use, insured under a Fremont Insurance Automobile policy. G. COVERAGES AFFECTED All premiums are subject to experience rating factors except: 1) Mandatory MCCA and other statutory fees. 2) Mini-Tort 3) Uninsured Motorists 4) Other Than Collision 5) Towing and Labor 6) Underinsured Motorist 7) Extended Transportation Expenses 8) Audio, Visual & Data Electronic Equipment 9) Tapes, Records, Discs and Other Media H. ACCIDENT SURCHARGE POINTS (PAST 3 YEARS) First chargeable at-fault accident 3 Second and subsequent chargeable at-fault accidents 4 I. VIOLATION SURCHARGE POINTS OFFENSES TO BE SURCHARGED EIGHT PTS FOR FIVE YEARS Operated Under Influence of liquor Unlawful bodily alcohol content (BAC) Combined operated under influence of liquor/unlawful BAC Operated under influence or while impaired by liquor causing death Operated under influence or while impaired by liquor causing serious injury Operated under influence of controlled substance 7/07 A-13

16 Combined operated under liquor and controlled substance Operated under influence or while impaired by controlled substance causing death Operated under influence or while impaired by controlled substance causing serious injury CDL Manu/Distrib controlled substance Operated while impaired by liquor Operated while impaired by controlled substance Combined operated while impaired by liquor and controlled substance Operated commercial motor vehicle with BAC Person under 21 with BAC Preliminary Breath Test Refusal in CMV Preliminary Breath Test Refusal in Non-CMV Allowed Person under influence alcohol/controlled substance to operate Person under 21 refused Preliminary breath test Operated under influence or while impaired by controlled substance causing death Failed to stop and identify after property damage accident Felony Failed to stop and identify after property damage accident Misdemeanor Gave false information personal injury accident Failed to stop and identify after property damage accident Gave false information property damage accident Failed to provide information or render aid after an accident Fleeing and alluding officer misdemeanor Reckless Driving Drag Racing Any felony violation not otherwise classified J. VIOLATION SURCHARGE POINTS PAST TWO YEARS OFFENSE POINTS Drove left of center 2 Disobey traffic control device 2 Failure to signal and/or observe 2 Failure to stop leaving alley/private drive 2 Failure to yield 2 Following too close 2 Improper crossing/divided highway 2 Unlawful rider on motorcycle 2 Improper lane use 2 Improper operation- emergency vehicle 2 Improper turn 2 Interfere with fire apparatus 2 Obstructed vision or control 2 Prohibited turn 2 Speed-violation by 10 mph or less 2 Violation of basic speed law 2 Disobey stop sign 3 Disobey traffic signal 3 Speed-violation mph 3 Failure to stop for school bus 3 Improper passing 3 Speed-violation in excess of 15 mph 4 Careless driving 5 Any misdemeanor OR violation 6 7/07 A-14

17 OTHER VIOLATIONS All other violations not listed, which fall between Sections and of the Michigan Motor Vehicle Code, will be assigned the same points as designated on the MVR. Civil infractions will be surcharged only two years. Other violations will be surcharged for three years. Number of Points Rating Factor or more per point OPTIONAL COVERAGES A. OTHER THAN COLLISION (COMPREHENSIVE) COVERAGE ONLY If an insured has a motor vehicle not driven or moved upon a highway, he may request Other Than Collision coverage only, on the vehicle. Suspension of all other coverages must be for a minimum of 60 days. B. OPTIONAL COLLISION COVERAGES (must have comprehensive coverage to purchase) 1) The option to purchase Standard Collision coverage must be offered. We will pay collision damages to the covered auto regardless of who is responsible for the accident. Insured must pay the deductible amount shown in the Declarations for each accident. 2) The option to purchase Broadened Collision Coverage must be offered. We will pay the collision damages to the covered auto regardless of who is responsible for the accident. However, if the operator of the covered auto was more than 50% the cause of the accident, insured must pay the deductible amount shown in the Declarations for each accident. 3) The option to purchase Limited Collision Coverage must be offered. We will pay for collision damage when the operator of the covered auto was not more than 50% the cause of the accident. Insured will not have to pay a deductible amount. If the operator of the covered auto was more than 50% of the cause of the accident, we will not pay for collision damages. * C. EXTENDED TRANSPORTATION EXPENSES (Rental Reimbursement) Premiums are shown on the Territorial Premium Pages. This coverage may be written only for private passenger autos insured for Other Than Collision coverage. 7/07 A-15

18 D. LOAN/LEASE GAP COVERAGE ENDORSEMENT (PP0335) 1) A policy providing Other Than Collision and Collision coverage on a personal automobile, pickup or van may be extended to provide coverage, in the event of a total loss for the greater of: a. the unpaid amount due on the lease or loan of the covered auto, or b. the actual cash value of the auto. The endorsement must be requested within 60 days of the inception date of coverage for the vehicle or currently on Auto Policy being rewritten to Fremont. 2) Coverage under the endorsement applies only in the event of a premature termination of the lease or loan due to an actual or constructive total loss covered under Other Than Collision or Collision coverages. Refer to endorsement for coverage limitations. 3) Coverage is only available on the loan/lease of a new automobile. A new automobile as used in this rule is an automobile that has not been previously titled by the state. 4) Rating: a. Charge 10% of the premium developed for Other Than Collision, after application of the deductible credit or debit factor and anti-theft discount if applicable. Subject to $4.00 minimum premium; and b. Charge 10% of the premium developed for Collision after application of the deductible credit or debit factor. Subject to $6.00 minimum premium. Not applicable to Limited Collision. E. UNINSURED MOTORISTS COVERAGE Bodily Injury Limits are optional. Concurrent limits are required on all units. Refer to territory page for available limits and premiums. F. UNDERINSURED MOTORISTS COVERAGE Bodily Injury Limits are optional. Concurrent limits are required on all units. Refer to territory page for available limits and premiums. G. ROADSIDE ASSISTANCE Refer to territory page for available limits and premiums. * H. FULL GLASS COVERAGE ENDORSEMENT (PA-FG) The Other Than Collision deductible does not apply when this endorsement is added to the policy. The premium charge is $ I. EXTENDED NON-OWNED COVERAGE ENDORSEMENT (PP0353) 1) Eligibility The following insureds under a Personal Auto Policy (PAP) may choose to extend coverage under the PAP: a. An insured named in the PAP; b. The spouse if a resident of the same household; and c. A resident relative. 2) Coverages The basic PAP provides the coverages required in Michigan (Personal Injury Protection, Property Protection Insurance, and residual liability coverages), as well as any optional coverages selected by the insured (for example, Uninsured Motorists Coverage). PAP insureds may extend the basic PAP to cover certain liability exposures not covered under the basic PAP. Under the liability section of the PAP, liability coverage is not provided for certain exposures, such as an auto furnished for regular use, or a public or livery conveyance auto, etc. By choosing liability coverage under the extended non-owned coverage endorsement, the liability coverage afforded under the basic PAP may be extended to cover these exposures. An individual who chooses to extend liability coverage under the extended non-owned coverage endorsement shall also be provided with the following coverage options: 4/12 A-16

19 a. Property Protection Insurance coverage. b. Collision and Other Than Collision coverages. c. Broadened Collision Coverage or Limited Collision Coverage. d. Property Damage Liability Coverage Buy-Back. 3) Rating a. Bodily Injury and Property Damage Liability Coverages: (1) When no Primary Liability insurance is in effect on the auto, charge the premiums that would apply as if the insured owned the auto being covered, using the premium determination procedures set forth in the Personal Auto Section of this manual. (2) When there is Primary Liability insurance in effect on the auto, charge the premiums per person of $2.00 residual bodily injury and $1.00 residual property damage (20/40/10 limits). b. Property Protection Insurance coverage: Charge the premiums that would apply as if the named individual owned the auto being covered, using the premium determination procedures set forth in the Personal Auto Section of this manual. c. Collision, Other Than Collision, and Limited Collision coverages: Charge the premiums that would apply as if the insured owned the auto being covered, using the premium determination procedures set forth in the Personal Auto Section of this manual. Determine the model year and the symbol to be used as follows; (1) If the insured is purchasing this coverage for a specific vehicle, use the model year and the symbol of that vehicle to determine the applicable base rates. (2) If the insured purchasing this coverage has no specified vehicle furnished for his/her regular use, use the rate shown for a symbol 11 vehicle for the current model year. d. Broadened Collision coverage and Property Damage Liability Coverage Buyback: (Mini-tort) Charge the premiums developed in accordance with the provisions of Rules in the Personal Auto Section of this manual. * J. LIMITED PROPERTY DAMAGE LIABILITY - MINI TORT This coverage may be purchased for a $1,000 limit. Refer to territory page for premiums. K. CUSTOMIZING EQUIPMENT COVERAGE ENDORSEMENT (FM 0307) Coverage may be added for customization added to a van or pick-up when Other Than Collision and/or Collision is also afforded. The endorsement provides coverage for carpeting, furniture, awnings, etc. Premium charge is $5.00 per $1000. L. ADDITIONAL INSURED LESSOR (PP-0519) Coverage may be added to provide protection for the leaseholder s interest. There is no charge for this endorsement. M. ADDITIONAL INSURED OTHER (FM-0319) Coverage may be added to provide liability protection for an entity other than a leaseholder that shares an interest with the named insured on a specified vehicle. There is no charge for this endorsement. This endorsement may not be used to provide liability protection for any business. N. SATELLITE RECEIVING AND TRANSMITTING DEVICE THEFT COVERAGE (FM-SRT) Provides coverage up to $500 for theft of satellite devices such as GPS or XM Radio that are not permanently installed in the dash. Private passenger auto must be insured for Other Than Collision in order to obtain this coverage. Theft must occur from visible, forced entry to the vehicle and a police report must be filed. The premium charge is $10.00 on a per vehicle basis. 10/12 A-17

20 * O. FIRST ACCIDENT OR MINOR VIOLATION FORGIVENESS (FM-ACC) For the first at-fault accident or minor two point violation in any three year experience period, the surcharge is forgiven. Endorsement must be present prior to the at-fault accident or minor violation in order for surcharge not to apply. State insurance eligibility points will still apply. The charge is $10.00 for each motor vehicle on the policy. * P. VEHICLE ENHANCED PHYSICAL DAMAGE COVERAGE (FM-PAEC) This endorsement enhances and adds to the physical damage coverages provided in the policy. Coverages are: Amends Other Than Collision to any cause except upset or collision Amends New Vehicle Replacement from 90 days to 1 year Increases automobile emergency limit to $100 Increases personal property coverage to $500 Increases transportation expense from theft to $30 day to a maximum of $900 Adds $250 if keys stolen for key system replacement Adds Rental Automobile Gap coverage Adds Trip Interruption coverage up to $100 per night, $500 per occurrence Adds Air Bag Replacement coverage for deployment when not caused by other than collision or collision loss Adds Collision Deductible Waiver when both parties involved in an accident are with Fremont Insurance Company The charge is $15.00 on a per vehicle basis. PICKUP CAMPER BODIES AND CAB TOPS If coverage for Collision is provided to the pickup, a limit of $500 is extended to an owned camper body or a cab top, at no additional premium while mounted upon, attached to or in transit with the pickup. Refer to the policy for coverage provisions. Refer to Auto Miscellaneous Page (last page in Rates section) for camper bodies or cab tops in excess of $500. TRAILERS UTILITY, CAMPING OR HORSE If coverage for Collision is provided on the policy, a limit of $500 is extended at no additional premium to a trailer. Refer to Auto Miscellaneous Page (last page in Rates section) for trailers in excess of $500. Note: We will provide coverage for awnings, cabanas or equipment designed to create additional living facilities. Add the value of such equipment to the value of the trailer. Refer to the policy for coverage provisions. 4/10 A-17A