PROGRESSIVE COMMERCIAL AUTO INSURANCE

PROGRESSIVE COMMERCIAL AUTO INSURANCE 1-877-776-2436 Internet users can also access this Product Guide at ForAgentsOnly.com WASHINGTON EFFECTIVE DATE MAY 2004

Progressive Commercial Auto Insurance W ASHINGTON PRODUCT GUIDE CONTENTS Effective May 2004 Contact Information...page 2 Phone Numbers - World Wide Web How To Use This Guide...page 2 Commission...page 2 Progressive s Commercial Auto Program...page 3 Quoting Commercial Auto...page 4 Underwriting Overview - Valid Proof of Prior Insurance - Ordering Financial Responsibility Information - Questions About Financial Responsibility Scores - Phone Quotes - Fleet Submissions Commercial Auto ProRater Rating Software...page 7 Point of Sale How To Do Business With Progressive...page 8 Binding Guidelines - Transmitting Payments - Acquired Business - Endorsements - Filings - Certificates of Insurance - Cancellation Requests Underwriting Acceptability...page 11 Prior Approval - Unacceptable Risks Body Type Guide...page 12 Make Listing - Body Type Images Business Type Guide...page 15 Coverages...page 16 Bodily Injury/Property Damage - Uninsured Motorists Bodily Injury and Underinsured Motorists - Physical Damage - Hired Auto and Employer s Non-Ownership Liability - Medical Payments - Personal Injury Protection - On-Hook Towing Liability - Garagekeeper s Legal Liability Discounts, Billing And Payment...page 20 Renewal Discount - Paid-in-Full Discount - Bill Plans - Policy Terms - Outside Premium Financing - Additional Insureds - Waiver of Subrogation - Payment Options Index...page 22 Form No. 3153 (05-04) WA 2004 Progressive Casualty Insurance Company. All Rights Reserved. 1

PROGRESSIVE COMMERCIAL AUTO CONTACT INFORMATION For All Agent Services 1-877-776-2436 Commercial Auto Fax 1-800-556-0014 Agent Supplies Fax 1-440-603-4044 Fleet Submissions (10-20 power units) Fax 1-888-609-3231 World Wide Web www.progressive.com Progressive s Agent-Dedicated Web Site www.foragentsonly.com To Download Acrobat Reader www.adobe.com Progressive Insurance Commercial Auto Division P.O. Box 94739 Cleveland, Ohio 44101 HOW TO USE THIS GUIDE The online version of this guide is provided in Portable Document Format (.pdf) and is intended to be viewed using Adobe Acrobat Reader. This is freeware that may be downloaded from Progressive s Web site or directly from Adobe (http://www.adobe.com). Simply click on a subject of interest to gain more information on the topic. Acrobat Reader also allows you to leaf through pages in order, conduct key word searches, enlarge areas of the screen and view the document as a whole. Paper copies of this guide may be printed off of ForAgentsOnly.com or requested from Progressive Agent Supplies at 1-877-776-2436. COMMISSION 10% on New Business and 8% on Renewals 2

PROGRESSIVE COMMERCIAL AUTO PROGRAM Progressive s Commercial Auto Product Features Expanded Use - Proof of prior insurance and financial responsibility underwriting applies to all body type use combinations. Upload - To have access to our financial responsibility product, agents need to upload applications. Customer service representatives are still available for phone quotes. More Payment Options - Eligible customers can choose an electronic funds transfer (EFT) option and lower their installment fees. Point of Sale - This ProRater enhancement enables your agency to verify consumer information by confirming the VIN and checking Financial Responsibility (FR) prior to upload. 3

QUOTING COMMERCIAL AUTO The easiest way to write business is to use our ProRater rating software. You may quote, bind and upload applications for eligible risks of one to nine vehicles. Underwriting Overview Progressive Commercial Auto uses the following criteria in rate determination: Financial Responsibility Financial responsibility is based on a customer s bill-paying behavior and use of credit. Financial responsibility will not be ordered on corporations, partnerships, or fleets of 10+ power units. Prior Insurance Progressive looks at whether a commercial risk can provide proof of continuous prior insurance for at least one year. State or Federal Filings Policies requiring a state or federal filing (excluding SR-22) will be a factor in rating. Non Chargeable Incidents Non chargeable incidents (NCIs) will be used in conjunction with driver points to determine rates. NCIs are defined as not-at-fault accidents and accidents under any applicable threshold. Multiple NCIs are required before rating is affected. Valid Proof of Prior Insurance One of the elements used in rate determination is proof of prior insurance. Please encourage your customers to provide a declarations page that shows: The same named insured as is listed on the Progressive policy or 50% or more of the vehicles listed on the Progressive policy Continuous Bodily Injury coverage for at least one year Limits of Bodily Injury coverage Effective dates of coverage Ordering Financial Responsibility Information A policy eligible for financial responsibility (FR) cannot be uploaded if FR has not been ordered. Please be sure to read the customer the credit authorization that appears on the ProRater screen. Financial responsibility is required to get the best rate available on eligible risks. The premium range presented before credit ordering is for agent use only and should not be presented to applicant. 4

QUOTING COMMERCIAL AUTO Questions About Financial Responsibility Scores The credit bureau information Progressive uses is more than 99% accurate. Statistics show that only 2% of those who request copies of their credit reports dispute the findings. A customer suspecting credit report inaccuracies may obtain a copy of the report by calling the credit bureau. Agents may not request this information; only the customer may contact the credit bureau vendor. Progressive uses Experian, Equifax, or Trans Union as suppliers of financial responsibility information. See the ProRater App Entry screen for the credit vendor s contact information. 5

QUOTING COMMERCIAL AUTO Phone Quotes Receive a quote for risks of one to nine vehicles over the phone by calling 1-877-776-2436. Phone quotes are available 7:30 AM to midnight Monday through Friday, and 8:00 AM to 6:30 PM on Saturday and Sunday (Eastern Time). Fleet Submissions Fleet risks of 10-20 power units (up to 40 units total, including trailers) must be submitted in writing. A complete submission is one that contains: A completed application or ACORD application. A completed list of drivers including MVRs. Three-year loss runs from prior carrier(s). Stated Amounts (if Physical Damage Coverage is to be quoted). Fuel tax or Schedule B reports (if filings are required). Three-year financials (only on risks requiring Hired Auto, based on eligibility). Any additional information requested. Incomplete submissions will not be quoted. Submit fleet risks by fax (888-609-3231) or mail to address indicated on page 2. Note: Fleet quotes require 10 days to process from the date a complete submission is received. 6

Point of Sale COMMERCIAL AUTO PRORATER RATING SOFTWARE Ordering VIN reports prior to uploading helps you generate the most accurate quotes possible. That means fewer uprates, improved retention, and more satisfied customers! Here s how you can use ProRater Point of Sale to quote with confidence: STEP 1: ORDER FR AND VERIFY VIN This step is identical to the process currently used. Gather all the information you need to order FR, including name, address, date of birth, and social security number. Be sure to enter the actual policy effective date in ProRater. Tips on Ordering Financial Responsibility Be sure to include full name, home address (not business address, if different), and social security number of the individual (owner) to avoid inaccurate or unavailable financial responsibility information. (A customer has the right not to provide his/her social security number, but this may result in unconfirmed financial responsibility.) You will not receive any information contained in the customer s credit report; it is ordered, received and used exclusively by Progressive through its mainframe computer. Financial responsibility will not be ordered on corporations, partnerships or fleet accounts. Next, complete the vehicle screen by inputting the year, category, and VIN. If you don t have the VIN, make sure you complete all other fields on the vehicle screen. Finally, click on Order. While FR and VIN are being ordered you can continue with the quoting process. NOTE: Although you can quote without a VIN, you will not be able to upload until an acceptable VIN is provided. An acceptable VIN is a full 17-character VIN or a partial VIN that is sufficient to determine the year, make and model (usually requires the first ten characters, minimum). STEP 2: OBTAIN FULL DISCLOSURE Ask your customer about accidents and violations. Enter this information on the Fast Quote screen. After you have this information and FR is returned, you re ready to offer your customer a quote. STEP 3: GAIN INTENT TO BUY If the customer likes the Progressive quote and you have received intent to buy, proceed to the final step of the sales process. STEP 4: UPLOAD 7

HOW TO DO BUSINESS WITH PROGRESSIVE General Binding Guidelines Below are guidelines for any type of transaction, whether new business, endorsement, or cancellation. No agent may bind risks, limits or coverages outside the guidelines stated in this guide or on the ProRater software. Appropriate signatures and downpayments must be obtained when binding coverage or deleting coverage. ACORD applications are acceptable only for large fleets (10-20 power units). You may not backdate coverage. You may not permit a broker, subproducer or solicitor to bind Progressive on any risk. You may not bind coverage except through quoting on your ProRater software or by obtaining a quote from Progressive. Some risks you can quote on ProRater will be pended for underwriting approval prior to issuing the policy. Your software will tell you when underwriting approval is needed. Before binding a new business application, check to see if there has been a previous Progressive policy number. If so, check the Automated Policy Services System for any balance due, and submit the old balance due as a separate payment along with the new application. Always include the prior policy number on the application. Requests made by mail must be postmarked within 3 business days of binding coverage. NOTE: Applications not processed using the ProRater system may not reflect discounts provided by financial responsibility underwriting. Automated Policy Services System Payment Processing As a ProRater upload agent, you have the ability through the Automated Policy Services System to electronically transmit insureds payments, installments, and returned check information and to notify us when accepting payment on a policy pending cancellation. Automated inquiries and policy numbers are available by calling 1-877-776-2436. Acquired Business If you acquire a Progressive policyholder, either through an agent of record change or through the transfer or purchase of another agency's book of business, you must immediately obtain, from the prior agent or agency, all original signed applications (including exclusions and rejections of optional coverage) and all other records relating to that policy. Such records must be maintained in accordance with the terms of your Producer's Agreement and all applicable laws. If attempts to obtain records from the prior agency prove unsuccessful, then you must obtain signed forms directly from the policyholder. 8

HOW TO DO BUSINESS WITH PROGRESSIVE Endorsement Requests On new policies, it is not necessary to hold endorsement requests while waiting for the policy to be issued; just call them in. We do not suspend coverage. We will not remove driver points or change driver age mid-term. Adding filings to a policy requires reunderwriting which will likely result in rate or other changes. Down payments with endorsements are recommended but not required. If no down payment is submitted, the customer will be billed for the down payment, and the balance will be spread over the remaining installments. The down payment percentage will be the same as for new business. For policies that are financed through an outside premium finance company, the customer will be responsible for making additional premium payments. Filings Progressive will make the following types of filings on behalf of customers if the necessary information is provided and the risk is acceptable for coverage. We charge a fully earned filing fee of $50 on new business and $25 on renewals. Certified funds or money orders are required for down payments on new policies covering fleets of 10-20 power units that are requesting a filing other than an SR-22 filing. Filing Type SR-22 (For listed drivers only) State All commercially owned or operated vehicles must be listed and insured on our policy. ICC All commercially owned or operated vehicles must be listed and insured on our policy. Minimum Limits 25/50/10 or 100 CSL 300 CSL for vehicles 10,000 lbs. GVW or under. 750 CSL for vehicles 10,001 lbs. GVW and greater. 300 CSL for vehicles 10,000 lbs. GVW or under. 750 CSL for vehicles 10,001 lbs. GVW and greater. Please note that for filings requiring a 30-day notice of cancellation, we will continue to earn premium during this period, plus mailing time, regardless of the reason for cancellation. Presence of a state or federal filing will move a risk into a different rating classification, and result in substantially higher premiums. Discuss your customer s current and eventual needs while quoting in order to avoid uprates. 9

HOW TO DO BUSINESS WITH PROGRESSIVE Certificates of Insurance You can request Certificates of Insurance on behalf of your Progressive policyholders by calling 1-877- 776-2436 or by faxing your request to Progressive Commercial Auto at 1-800-556-0014. Please note: We issue symbol 7 type policies unless symbol 8 or 9 is approved. We do not provide symbol 1 coverage. We do not send notice of cancellation to the certificate holder. Cancellation Requests To request cancellation, please call us at 1-877-776-2436, after obtaining the required insured signature for your file. We will not cancel policies with state or ICC filings earlier than 35 days after our receipt of the insured s request. Progressive will cancel flat (provided there is no filing) only if the request to cancel is received prior to the policy s effective date, or if we receive proof of duplicate coverage at the same or higher limits within 30 days. Customer s Request The policy s cancel effective date may not Calculate pro rata be earlier than the date of the phone call or the date of the postmark of the request. Company s Request We will provide the required notice of Calculate pro rata cancellation. Nonpayment of Nonpayment cancel requests from outside Calculate pro rata Premium premium finance companies will be honored if we have received a copy of the outside premium finance agreement, including power of attorney. We provide cancel notices to additional insureds, loss payees, and outside premium finance companies (provided we have been notified of the presence of the OPF). We do not send notices to certificate holders. 10

UNDERWRITING ACCEPTABILITY GUIDELINES The following risks are unacceptable and may not be bound: Business Category Businesses that lease or rent vehicles without drivers (car rental company, truckers that lease their power units to an unlisted third-party) Businesses that provide tours in vehicles (sightseeing tours, jeep tours) Businesses that haul coal more than 30 days per calendar year. Church-owned school or daycare where the vehicle is used to transport children to and from school Contractors who work out of state more than 90 days Door-to-door sales, when the number of people occupying the vehicle is greater than one Embassies For-hire debris removal For-hire Livery (limos, taxicabs, black cars, contract medical transportation, para-transit, tour buses, etc.) For-hire hauling of steel in its raw form (iron, coils, beams, rolls, etc.) Home heating oil Towing operators that derive more than 25% of their revenue from repossession Truck driving schools Any business that engages in the transportation of prisoners, reform school students, migrant or temporary workers Well drillers Vehicle Types 3-wheelers, 4-wheelers, All-Terrain Vehicles (ATV) Double decker buses Dune buggies or kit cars Emergency vehicles (including ambulances, fire trucks and any other vehicle equipped w/a siren) Exhibition vehicles (big foot, monster trucks, race cars, etc.) Golf carts Pinzgauer/military vehicle Trailer-only policies Vehicles where the permanently attached equipment exceeds the value of the vehicle to which it is attached (see Stated Amount guidelines) Vehicles or cargo requiring a placard Vehicles not licensed for the road Wheelchair buses Vehicle Use Personal use on private passenger autos, pickups, vans and horse or utility trailers if the policy lists an individual as the Named Insured Vehicles used by diplomats or embassies Vehicles used as a primary living facility Vehicles used to haul hazardous or explosive materials (vehicle requires a placard) Vehicles used in For-hire debris removal Vehicles garaged out of state more than 90 days Towing operators that derive more than 25% of their revenue from repossession Vehicles or cargo with a placard Vehicles open to the public (carnival rides, mammogram van, bookmobile, bloodmobile, construction/contract trailers, party buses, etc.) Church-owned school or daycare where the vehicle is used to transport children to and from school Vehicles used in door-to-door sales, when the number of people occupying the vehicle is greater than one Coverages Hired or Non-Owned coverage on certain risks (e.g., pizza delivery, for-hire trucking, courier risks, etc.) Liability coverage for any vehicles hauling garbage or trash Liability coverage for tractor-trailer combos traveling beyond a 300-mile radius Liability coverage for vehicles used to haul steel in its raw form (iron, coils, beams, rolls, etc.) Liability or Physical Damage coverages for risks that haul coal more than 30 days per calendar year Other Canadian filings Canadian mailing addresses Cargo with a placard Dealer/transport license plates Driver with a diplomatic license Permanently attached equipment that exceeds the value of the vehicle to which it is attached (see Stated Amount guidelines) Risks w/ over 20 power units or over 40 units total Trailer-only policies Unattached mobile equipment (power shovels, cranes, rollers, forklifts, off-road vehicles) Vehicles not licensed for the road 11

BODY TYPE GUIDE Make Listing Body types for most vehicle makes and models are available in our ProRater rating software. The following list includes those vehicle makes whose body types are not available via ProRater. Please call Progressive at 1-877-776-2436 to obtain the correct body type for any of the below vehicle makes, or to get a body type for any make not listed here or in our Commercial Auto software. Passenger Vehicles Aston Martin Austin Avanti Bentley Bertone Checker Citroen DeLorean Excalibur Ferrari Lamborghini Lancia Lotus Maserati MG Opel Rolls-Royce Rover Shelby Skoda Sterling Triumph TVR Trucks ARO Bering Bluebird Chance Clement Crane Carrier Crown Coach Diamond Duplex Giant Gillig Grumm Hendrickson Hummer (AM General) Ikarus John Deere Kodia Kovatch Laforza Lodal Marmon Ottawa Peter Pirsch Pierce Prevost Savage Scania Seagrave Spartan Motors SUTPHEN TET Thomas TMC Utilimaster Van Hool Workhorse Zeiligson 12

CARS, VANS, SUVs AND PICKUPS BODY TYPE GUIDE CAR CARGO/COMPACT VAN HEARSE LIMOUSINE MINI VAN PASSENGER VAN PICKUP SPORT UTILITY VEHICLE Pickups equipped with a hydraulic lift should be rated as dump trucks. TRUCKS * * AGRICULTURAL TRUCK BOX/STRAIGHT TRUCK CAR CARRIER CATERING TRUCK CEMENT MIXER DELIVERY VAN DUMP TRUCK FLATBED TRUCK REFRIGERATED TRUCK STAKE BODY TRUCK TANK TRUCK TOW TRUCK Fire and Theft with CAC Coverage is provided, rather than Comprehensive Coverage, on these vehicles. TRUCK TRACTOR 13

BODY TYPE GUIDE BUSES AND MOTOR HOMES BUS MOTOR HOME TRAILERS AUTO HAULER BOTTOM DUMP TRAILER BULK COMMODITY TRAILER DRY FREIGHT TRAILER DUMP-BODY TRAILER OR TRANSFER BOX FLATBED TRAILER GOOSENECK TRAILER HORSE TRAILER LIVESTOCK TRAILER LOGGING TRAILER LOW-BOY TRAILER POLE TRAILER REFRIGERATED DRY FREIGHT TRAILER TANK TRAILER TILT TRAILER UTILITY TRAILER UNIDENTIFIED TRAILER Fire and Theft with CAC Coverage is provided, rather than Comprehensive Coverage, on these vehicles. 14

BUSINESS TYPE GUIDE A key piece of information used in the rating of risks is the type of business. Be sure to choose the most appropriate business type in order to accurately rate your customer. Contractor-Tradesman/Construction Services Tradesman earning income by performing repair, improvement, installation or maintenance services at residential or commercial locations including new construction sites. Courier Services (Letter/Package/Documents) Business earning income by completing the delivery of letters, packages or documents for a fee. Courtesy Passenger Transportation Business earning income through a service to their customers. Passengers are transported as a courtesy and are incidental to the way the business earns a profit. Transporting of passengers is not done on a for-hire basis. Dirt, Sand, and Gravel Business earning income by transporting dirt, sand, gravel, or asphalt on a for-hire basis. Farming, Ranching, Fisheries, Nurseries Business earning income by raising livestock or agricultural production. Food Services Business earning income by providing and selling prepared food. Vehicles used to support business by delivering prepared food, picking up supplies, running errands, etc. Landscaping/Snowplowing/Firewood Business earning income by providing landscaping or snowplowing services to residential and/or commercial properties. Can also earn income by delivering or selling firewood. Logging, Log Transport, and Sawmills Business earning income working in the logging industry or operating a sawmill. Non-Business Applicant using vehicle for personal use only; no income is earned. Services Business earning income by providing services or selling goods. Vehicles used to support business by delivering goods, picking up supplies, running errands, etc. Towing and Service Stations Business earning income by towing or providing roadside repair of disabled vehicles, operating a repair facility, or providing some repossession work. Trucking and Transport Business earning income by transporting raw materials, goods or equipment. Wholesale Manufacturing Business manufactures or produces goods and distributes product to retailers; insured sells goods in large quantities to retailers. 15

COVERAGES Bodily Injury/Property Damage Coverage (BI/PD) Available Limits: 25/50/10 100 CSL 50/100/25 300 CSL 100/300/50 500 CSL 250/500/100 750 CSL 1000 CSL Note: If applicant needs a filing, see the Filings rules on page 9. Rules: The BI/PD limits must be the same for all vehicles on the policy. We will not write multiple policies for the same named insured. Limits of 750 CSL and 1,000 CSL are not available if any driver does not meet our qualifications based on driving record. Underinsured Motorists Coverage Available UIM BI Limits: 25/50 100/100 50/100 300/300 100/300 500/500 250/500 750/750 1000/1000 UIM BI Rules: Can only be written in conjunction with BI/PD. Limits cannot exceed BI limits. Limits may be lower than BI limits, or coverage may be rejected entirely, provided the customer signs the appropriate block on the application. Limits must be the same for each vehicle of a multi-vehicle risk. Is available on power driven vehicles only. Available UIM PD Limits: 10,000 50,000 300,000 750,000 25,000 100,000 500,000 1,000,000 UIM PD Rules: Can only be written when UIM BI has been purchased. Limits cannot exceed PD limits. Limits may be lower than PD limits, or coverage can be rejected entirely, provided the insured signs the appropriate block on the application. Includes a $100 deductible. Exception: In the case of a hit-and-run accident, the deductible is $300. Limits must be the same on all eligible vehicles of a multi-vehicle policy. 16

COVERAGES Physical Damage Coverage Available Deductibles: 100 500 2,500 250 1,000 5,000 We write Collision and either Comprehensive or Fire and Theft with Combined Additional Coverages. Please note that the limit of liability and rate are based on the vehicle s stated amount (not cost new). This method more accurately captures the value of vehicles which have been modified with additional equipment. We urge you to review the value of insured vehicles and modify stated amounts annually. Progressive does not automatically depreciate stated amounts. Rules: Stated amount is current value of a vehicle, including permanently attached custom parts and equipment. Vehicles with custom parts or equipment valued at more than 50% of the vehicle s total value (vehicle plus equipment) are unacceptable for physical damage coverage. The customer is responsible for determining the appropriate amount of coverage. In the event of a loss, our policy pays the lesser of the stated amount, actual cash value, or cost of repair. Listing a vehicle s stated amount at less than 90% of its actual cash value will result in the customer sharing in the cost of repair in addition to the deductible. The following table is provided as a reference for estimating stated amount (Progressive takes no responsibility for determining the correct value): Model Year % of Cost New Model Year % of Cost New 1 Year (Current) 100% 4 Years 75% 2 Years 90% 5 Years 65% 3 Years 80% Over 5 Years 60% A minimum value of $5,000 will apply for rating purposes. This minimum does not apply to trailers. Trucks with a stated amount over $150,000 must be submitted for approval. Private passenger type vehicles with a stated amount over $100,000 must be submitted for approval. Comprehensive coverage is not available for all vehicle types. Fire and Theft with Combined Additional Coverages (specified perils) will be written where Comprehensive is not available. Comprehensive or Fire and Theft with Combined Additional Coverages can be purchased without Collision coverage, as long as BI/PD is also purchased. Physical Damage Only policies can be written. 17

COVERAGES Hired Auto and Employer s Non-Ownership Liability Coverages These coverages are available separately. Some business types may require prior approval. Limits must match BI/PD. Trucking or courier risks requiring hired or non-owned coverage must be submitted for approval. These coverages are not available for pizza delivery or similar risks. Vehicles hired for more than 30 days per year must be covered as scheduled vehicles on the policy. Medical Payments Coverage This coverage is optional. Available Limits: 500 1,000 2,000 5,000 10,000 Rules: Is available on power driven vehicles only. Can only be written in conjunction with BI/PD or Non-Truck. Limits must be the same on all covered vehicles of a multi-vehicle risk. Cannot be written in conjunction with Personal Injury Protection. Personal Injury Protection (PIP) Coverage Available Limits: 10,000 35,000 Rules: Can only be written in conjunction with BI/PD. Limits must be the same on all eligible vehicles of a multi-vehicle policy. Coverage can be rejected provided the insured signs the appropriate block on the application. Cannot be written in conjunction with Medical Payments. 18

COVERAGES On-Hook Towing Liability Coverage This coverage protects the named insured in the event of liability for damage to vehicles being towed and in his custody. The coverage is provided on a collision and specified perils basis, and does not include premises, transmission damage, or contents. Coverage applies to autos, trucks and motor homes in tow. Coverage will not apply to mobile homes or owned vehicles. This coverage is not the same as Cargo Coverage. Available Limits: 15,000 25,000 50,000 100,000 Available Deductibles: 500 1,000 Rules: This coverage is only available on tow trucks, car carriers, and dually pickups with fifth wheel. If any vehicle has this coverage, all towing vehicles must have coverage. Limits must be the same for all eligible vehicles. This coverage cannot be purchased unless BI/PD is also purchased. Call for approval on $100,000 limit. Garagekeeper s Legal Liability Coverage This coverage protects the named insured in the event of liability for damage to vehicles while at the insured s location for servicing, repairing, parking or storage. The coverage is provided on a collision and specified perils basis. This coverage is not the same as Garage Liability. Available Limits: 25,000 50,000 100,000 Deductible: A deductible of $500 per vehicle, maximum $2,500 per occurrence will apply. Rules: A premium is developed for each covered location. This coverage cannot be purchased unless On-Hook Towing and BI/PD are also purchased. Call for approval on $100,000 limit. 19

DISCOUNTS, BILLING AND PAYMENT Discounts Please take advantage of the following discounts whenever your customer qualifies! Unless otherwise noted, discounts are applied to all coverages except Underinsured Motorists Coverage. Renewal Discount Policies in force with Progressive at least 12 months will receive a renewal discount. Paid-In-Full Discount Policies which are paid in full will receive this discount. The entire premium must be submitted with the application. Policies financed through an outside premium finance company are not eligible to receive this discount. Bill Plans We offer many new billing plans. Please review the bill plan table below and choose the option that best meets your customers needs. Six Month Terms Pay Plan Downpayment % # Installments Installment % Installment Due Dates Paid-In-Full* 100% 0 N/A N/A 2-Pay 50% 1 50% Quarterly 3-Pay 40% 2 30% Every 30 Days 5-Pay EFT 20% 4 20% Every 30 Days Annual Terms Pay Plan Downpayment % # Installments Installment % Installment Due Dates Paid-In-Full* 100% 0 N/A N/A 4-Pay 25% 3 25% Quarterly 10-Pay 25% 9 1 @ 8.6%, 8 @ 8.3% Day 35, then every 30 Days 11-Pay EFT 17% 10 8.3% Every 30 Days NOTE: A $5 fee per installment will be charged on all installment options except the EFT options, which charge $1 per installment. Fee does not apply to the downpayment. A $5 late fee will apply on the non-eft options when the minimum amount due is not paid or payment is postmarked more than five days after the premium due date. Please note that there will be a $15 service charge for any payment returned for nonsufficient funds. *A 5% Paid-In-Full Discount applies. Policy Terms Progressive offers six and 12 month terms. Outside Premium Finance Company (OPF) We will accept outside premium financing provided we receive a signed copy of the finance agreement, including power of attorney, and the premium finance company draft for the entire policy premium. The agent is responsible for any earned premium if the finance company stops payment on its draft because of improper handling by the agent or nonsufficient funds to cover the insured s check. 20