PERSONAL AUTO PROGRAM

PERSONAL AUTO PROGRAM Florida Independent Agents New 02/25/2013 Renewal 4/11/2013 TITAN INSURANCE UNDERWRITING GUIDE Victoria Select Insurance Company 1.800.888.8424 www.victoriainsurance.com 2013 THI Holdings (Delaware), Inc., All Rights Reserved. fl42geuwgd0213

QUICK REFERENCE GUIDE... 1-5 UNDERWRITING GUIDELINES Binding Authority...6 Severe Weather Binding Restriction...6 Commission...6 Unacceptable Risks...7 General Guidelines...10 Endorsements...10 Renewals...10 Cancellations...11 Underwriting Verification...11 SR-22 Filings...11 FR-44 Filings...11 Court Ordered Suspensions...11 Exclusions...12 Out of State Student/Military Personnel...12 Household Members...12 Tier Determination...13 TABLE OF CONTENTS COVERAGE DESCRIPTION & RULES - LIABILITY BI/PD Liability...15 Personal Injury Protection...15 Medical Payments Coverage...16 Uninsured/Underinsured Motorists Coverage (UM/UIM)...16 Non-Owner Coverage...17 COVERAGE DESCRIPTION & RULES - PHYSICAL DAMAGE Comprehensive & Collision Rules...18 Deductibles...19 Rental Reimbursement...19 Towing Reimbursement...19 Special Equipment...20 OEM Buyback...20 Accident Forgiveness Endorsement...20 DISCOUNTS...21 SURCHARGES... 23-24 VIOLATIONS/ACCIDENTS...25 DIRECT BILL GUIDELINES Program Payment Options...26 Methods of Payments...26 Rules...26 Fees...27 TITAN PLUS GUIDELINES Titan Plus Eligibility... 29 Discount/Surcharges... 30 Payment Options... 31 Fees... 31

CONTACT US General Office Hours Monday - Friday 8:00 a.m. - 9:00 p.m. EST Saturday 9:00 a.m. - 1:00 p.m. EST TECHNICAL SUPPORT Hours Monday - Friday 7:30 a.m. - 8:00 p.m. EDT PHONE NUMBERS Home Office...800-888-8424 Underwriting Service...800-888-8424 Automated Policy Inquiry...800-888-8424 IT Service Desk...866-678-2397 Technical Support email...e-tech@victoriainsurance.com (Include agency code and name) Report-A-Claim (Including After Hours/Holidays/Weekends)...800-926-3168 Claims Questions...800-951-1617 FAX NUMBERS Claims...800-297-2942 Endorsements...877-295-2923 Proof of Insurance or Homeownership...877-295-2923 QUICK REFERENCE GUIDE ADDRESSES Mail Payments Titan Insurance Group Without Remittance P.O. Box 6838 Stubs to: Cleveland, Ohio 44101-6838 Mail Claims to: Website Titan Insurance Group P.O. Box 93863 Cleveland, OH 44101-6838 www.victoriainsurance.com 1

HOW DO I RATE A Titan POLICY? OPTION ONE Go to www.victoriainsurance.com to use our internet rating engine. Log on, click New Business and select New Quote. To obtain IDs and passwords select log in, request a password on the website or contact Technical Support at 866-678-2397. OPTION TWO Call your comparative rating service and add Titan to your system today! We forward our rates to all major rating vendors. Please let us know if your vendor has not received them. OPTION THREE Call in for a quote. Call our Customer Service Unit directly at 800-888-8424. We are happy to give you a quote at any time. quick reference guide 2

SERVICE HIGHLIGHTS AGENCY AUTOMATION PACKAGE For fast and accurate rating, we offer through the web. Agents also have access to our on-line policy inquiry system available on our Agent Only website at www.victoriainsurance.com. Download capabilities are available to 9 agency management systems including Applied, Agency One, Pathfinder, Pioneer Plus, MI-Assist, Doris, AMS, SIS Semci and Agena. This service will help save your agency input time and will provide your agency with accurate and timely information. Both upload capabilities and daily or weekly fax reports are available. All business must be uploaded. Upload will save you time and money, and improve turnaround time. Customer Facts faxes will give you transaction and EFT information on all of your Titan policies to help you better manage your business. ACH COMMISSION SERVICE If you would like, Titan will automatically deposit your commission check directly into your account via the Automated Clearing House (ACH) system. Your commission dollars are guaranteed to be available by the 10th of every month (commission statements are also mailed by the 10th). To enroll in this free service, contact your Titan Marketing Representative, or call our Agent Supply Department at 800-940-7757,option 2, 4, for an ACH authorization form. quick reference guide PRE-ASSIGNED POLICY NUMBERS Because you can never predict just when you may need a policy number on the spot (for an SR-22 filing, etc.), you can call Titan for a pre-assigned number 24 hours a day, 365 days a year. Call 800-888-8424. ON-LINE POLICY INQUIRY Agents have access to our on-line policy inquiry system. This system provides up-to-date information regarding policy status, payments, coverage details, and all other policy related data. To get a user ID and password, go to www.victoriainsurance.com and click on Need a User Name under the login button. If you prefer, you can also call tech support at 866-678-2397. You and your insureds can also call in for an inquiry regarding policy status and billing information. This automated service is available 24 hours a day, 365 days a year. Call 800-888-8424. SR-22 & FR-44 FILINGS You never have to worry whether these required administrative steps are occurring in a proper and timely manner. We will handle them for your convenience. Please note that there is a $25 fully earned fee for the SR-22s. For policies that are uploaded, you have the ability to print pre-filled SR-22 filings directly through our Web. You simply need to check the box for the SR-22 on the Driver screen and select Yes when prompted to print the SR-22. Note: The application must be uploaded for the SR-22 to print. You also have the ability to reprint an SR-22 up to 5 days past the effective date of the policy. Please contact Titan Customer Service to endorse FR-44 filing onto the policy. We will charge one Filing fee for either SR-22 or FR-44 filing but not both. FR-44 filings require BI/PD limits equal to or greater than 100/300/50. 3

service highlights continued... REINSTATEMENT After a policy has cancelled for nonpayment of premium, there is a 30 day window in which payments of premium can still be accepted. The payment, if adequate, will automatically reinstate the policy, however, the policy will have a new effective and expiration date. The policy number will remain the same. Our website will provide you with a recommended amount and minimum amount due to reinstate the policy. These amounts are based on the policy as it existed prior to the cancellation. The recommended amount due is the preferred amount. If the minimum amount due is paid then another payment will be due within 14 days. After the payment is uploaded, the policy will be rerated based on the new business revision in effect at the time of the reinstatement. As a result the premium may change. A Reinstatement Declaration Page will be mailed to the appropriate parties. A Reinstatement fee and other fees (if applicable) apply. ELECTRONIC FUNDS TRANSFER Convenient and flexible for your customers Monthly automatic withdrawals (checking, savings, credit card) Flexibility of choosing the withdrawal date Enrolling the Customer into EFT First choose an EFT bill plan on the Web during the quoting process. Once you begin the application process, select complete on the EFT information drop down box. Choose the payment sweep date in the range of 17 to 31 days from the effective date of the policy. Next, enter the requested banking or credit card information before uploading the policy information and down payment. An authorization agreement will print out with the application. Please have the insured and the account holder sign this form and keep the original signed form in your file. A preliminary payment schedule specifying the amount and date of each sweep will print off with the application. A final payment schedule will be mailed to the insured after the policy has been issued. A revised payment schedule will be sent if there is a policy change that affects premium. No paper bills will be sent with the EFT payment plan. quick reference guide ENDORSEMENTS BY FAX, MAIL, PHONE OR ON-LINE Endorsements can be requested by mail, fax, phone or on-line. Simply use a standard Titan Endorsement form and drop it in the mail or fax it directly to our Underwriting Department at 877-295-2923. For additional details and information on phone-in endorsements, see page 10. Titan Insurance also offers internet endorsements on our website, www.victoriainsurance.com. Agents may receive a quote on an endorsement, as well as submitting an endorsement for immediate on-line processing. You will receive a confirmation at the time of submission, as well as a confirmation email. All changes done on-line will be reflected in the Policy Inquiry and billing section of our website. Agents may process the following endorsements on the internet: Add/Change/Delete/Replace a Vehicle Add/Change/Delete a Lienholder Add a Driver Change Address/Phone 4

service highlights continued... RESPONSIVE CLAIMS SERVICES Titan accepts new claim reports 24 hours a day, 7 days a week. Please encourage insureds / claimants to contact us directly at 800-926-3168. In the event of an emergency claims situation, our rapid response claims service is available after hours, including weekends and holidays. This emergency claims service can be reached by calling 800-926-3168. Experienced claims professionals will contact your insureds within 24 hours. On a daily basis we produce reports for claims opened and claims paid, which are sent to each agency. These reports include the insured s name, policy number, claim number, loss date and the handling adjuster. In addition, we produce a monthly summary report for opened and closed claims which is mailed to each agency. ELECTRONIC SUPPLIES Some of the most commonly used forms are available for printing directly from our Web rating software. Simply go to the Agent Center on our website, www.victoriainsurance.com. Under Documents, click on General to see the forms, fax covers and Underwriting Guidelines. HIGH SPEED CONNECTION To communicate at high speed connection with Titan (DSL, Cable, etc.), contact your Marketing Representative to get set up right away. quick reference guide VIN LOOKUP Our website will give you the option of looking up vehicles by simply entering the first 10 digits of the VIN number at the top of the vehicle screen. The vehicle information will automatically be filled in both the quote screen and the application screen. REWRITE OF PREVIOUSLY UPLOADED POLICIES Policies can be rewritten within 60 days of an insured s previous Titan policy cancellation (including midterm cancels and nonpays), with submission of a new downpayment. The old policy remains cancelled, and the insured is given a new policy number. There is a lapse in coverage between the cancel date of the old policy and the effective date of the new policy. With this program, you don t have to write a completely new application each time a policy lapses. Rather, you have the ability to retrieve all the policy information and upload the rewritten application by using the Rewrite function on the WEB. All policies will be underwritten using years driving experience, points as of the new effective date of coverage, and the rates that are in effect as the date of the re-write. MVR CHARGEBACK RULE This service is provided at no charge, providing 80% of the MVRs that are run by an agency during the month convert into applications. To count as a conversion, the individual on the MVR must be listed on an application submitted within 30 days of the MVR order date. However, if less than 80% of the MVRs convert into applications, we will charge back the cost of the MVRs ordered through the rating engine. Charge-back amounts are deducted from subsequent commission statements and a detailed report is provided for reconciliation purposes. The following is an example of the charge back calculations: If an agency runs 100 MVRs during a month, but only submits applications for 60 of them (60%). The charge back amount is the difference between the threshold (80%) and the percentage submitted (60%). In this case, the agency will be charged back for 20% of the MVRs that were run (80% - 60% = 20%). The ordering of MVRs on the web rating engine helps maximize agent ease-of-use. This feature also keeps write-backs down to a minimum, giving your agency more free time to spend on writing new business. 5

BINDING AUTHORITY/GENERAL PROCEDURES On business written pursuant to the provisions of F.S. 626.7451 (11), the company s managing general agent will charge a $25 policy fee. The policy fee is earned over the policy term. Any policies that decide to use of one of our several payment plans will be charged a $10 fee. This fee is fully earned and will be applied at new business and on the annual renewal of the policy. The General No-Credit product will be closed to new business and will become a renewal book only. Coverage on applications, renewal requests and endorsements will be bound as of the date and time requested, provided: 1. The envelope is postmarked within 3 business days or the binding authority period stated in your agency contract. 2. The application complies with the underwriting rules, regulations and rates of this manual. 3. The application is fully completed and signed by both the named insured and the agent. 4. The full downpayment and applicable fees are received with the application. 5. The application is not back-dated to cover an accident or loss which has already occurred. Titan does not authorize agents to enter into premium finance agreements relating to any Titan policy without prior written approval. NOTE: AGENTS DO NOT HAVE THE AUTHORITY TO ISSUE POLICIES, ENDORSEMENTS, CANCELLATIONS OR REIssues. Titan RESERVES THE RIGHT TO FINAL UNDERWRITING APPROVAL ON ALL SUBMITTED RISKS. SEVERE WEATHER RESTRICTION Physical damage (Collision or Comprehensive) coverage may not be bound on new business or added to or increased on an existing policy in counties where The National Weather Service has issued a hurricane, tornado, hailstorm or other severe weather watch or warning. UNDERWRITING GUIDELINES COMMISSION NEW - 10% RENEWAL - 10% Commissions are paid monthly, based on premium applied. These include downpayments and installment payments, less refunded premiums. 6

UNACCEPTABLE RISKS UNACCEPTABLE DRIVERS 1. Drivers that have had their licenses revoked or permanently suspended. 2. Drivers who do not possess or obtain a valid drivers license within 30 days of the inception date. 2. Any driver under the minimum state driving age, except those with a temporary permit/license. 3. Unlicensed drivers, except those regaining their license through a financial responsibility filing or those excluded from the policy. 4. Applicants who have had a policy canceled by Titan for loss experience or misrepresentation. 5. Applicants who have been convicted of insurance fraud. 6. Applicants involved in an illegal enterprise or occupation. 7. Applicants employed in occupations involving the use of an insured vehicle by drivers who are neither residents of the insured s household or dependents of the insured. 8. Any driver who is incapable of safely operating a motor vehicle. 9. Any driver who does not currently reside (or is stationed, if Military) and operate the vehicle(s) in the state of Florida at least 10 months a year. 10 Any driver/vehicle with an out-of-state mailing address (even with a Florida garaging address). UNACCEPTABLE POLICIES 1. Policies with two or more Artisan/Business use vehicles. Refer to Acceptable Business Use on page 23. 2. Policies listing vehicles from more than one household. 3. Policies where Estates, Receiverships, Corporations or Partnerships are listed as the named insured. 4. Policies where the number of vehicles exceeds the number of drivers by more than two (2). 5. No more than 1 Titan Private Passenger Auto policy may be purchased per named insured or household except for the following: a. The residents in the household are unrelated room mates. Guidelines: Policies in this house hold must have equal exclusions or the named insured for each policy must be listed as a driver on the roommate s policy if they are going to use their vehicle on a regular basis. b. Children in the household that own their own vehicles. Guidelines: If the child is a minor, a parent/guardian must be listed on the policy and cosign the application. 6. Policies where the titled vehicle owner(s) or lessees are not listed and rated on the application and policy issued. underwriting guidelines 7

UNACCEPTABLE RISKS continued... UNACCEPTABLE VEHICLES 1. Vehicles without a Florida garaging address. Refer to Out-of-State Vehicles/Students and Military Personnel for exceptions to this rule. See page 12. Any driver/vehicle with an out-of-state mailing address (even with a Florida garaging address). 2. Vehicles with a principle garaging location in the state of Michigan. 3. Vehicles with a load capacity over 1 ton. 4. Bajas, dune buggies, buses, mini-buses, camper vans, motor homes, ATV s, step vans or panel vans. 5. Custom built vehicles. 6. Vehicles not registered for street use. 7. Vehicles leased or rented to other drivers by the applicant. 8. Vehicles regularly available to non-listed driver(s). 9. Vehicles with less than four (4) wheels. 10. Vehicles used for: a. Racing. b. Emergency services. c. Livery, taxi or limousine service. These include but are not limited to, vehicles used to transport nursery or school children, migrant workers, hotel or motel guests, patients or members of a van pool. d. Retail or wholesale delivery. These include but are not limited to, vehicles used for delivery of magazines, newspapers, mail, pizza (or other food items), farm produce, courier/escort service. 11. Vehicles equipped with: a. Altered suspensions, including but not limited to, lift kits over four (4) inches. b. Snow plows. c. Cooking equipment or bathrooms. 12. The following vehicles are unacceptable for Physical Damage: a. Vehicles over 15 years old. b. Salvaged vehicles. c. Collector s items. d. Kit cars. e. Vehicles originally manufactured for foreign use. f. Reproduction models. g. Vehicles over $75,000 actual cash value. h. Daewoos underwriting guidelines 8

UNACCEPTABLE RISKS continued... UNACCEPTABLE VEHICLES for Rating Make Model Make Model Make Model Make Model Make Model Acura NSX Caterham All Models Hennessey All Models McClaren All Models Rootes All Models Alfa Romeo All Models Checker All Models Holden All Models Mercedes CL Class Roush All Models Benz Am Gen All Models Chevrolet Express All Models Mercedes CLS Class Ruf All Models Hudson G3500 Benz AMC All Models Chrysler Prowler Hummer H2 Mercedes G Class Saleen All Models Benz American All Models Citroen All Models Infinity QX56 Mercedes GL Class Seat All Models Benz ARO All Models Daewoo All Models Infinity FX50 Mercedes S Class Shelby All Models Benz Aston Martin All Models Daihatsu All Models Jaguar XF Mercedes SLR Simca All Models Benz Audi A8 DeLorean All Models Jaguar XJ Mercedes Sprinter Singer All Models Benz Audi R8 DeTomaso All Models Jaguar XK Morgan All Models Skoda All Models Audi S6 Dinan All Models Jensen All Models Morris All Models Spyker All Models Austin All Models Dodge Shelby Kit All Models Mosler All Models SSC All Models Austin Lada All Models All Models Sterling All Models All Models Dodge Viper Opel Healey Avanti All Models Duesenberg All Models Laforza All Models Packard All Models Steyr All Models Bentley All Models EV-1 All Models Lamborghini All Models Panhard All Models Studebaker All Models Berton All Models Excalibur All Models Lancer All Models Panoz All Models Stutz All Models BMW 6-series Ferrari All Models Lancia All Models Pantera All Models Sunbeam All Models BMW 7-series Fiat All Models Land Rover Range Rover Peugeot All Models Tatra All Models BMW M5 Ford GT Lexus LS Pininfarina All Models Tesla All Models BMW M6 Ford Econoline Lexus LS Hybrid Prowler Triumph All Models Plymouth G350 BMW X6 Ford E350 Lexus LX Porsche All Models Tucker All Models BMW Z8 GMC Yukon Denali Lexus SC Proton All Models TVR All Models Bricklin All Models GMC Savannah Lotus All Models All Models Vauxhall All Models Puma G3500 Bugatti All Models GMC Vandura All Models Willys All Models Maserati All Models Renault G3500 Cadillac Escalade GMC G3500 Maybach All Models Riley All Models Wolseley All Models Rolls Royce All Models ZAZ All Models underwriting guidelines 9

GENERAL GUIDELINES 1. All bills, new business declaration pages, endorsements, cancellations, reinstatements, renewals and new business policy packs will be mailed directly to the insured. The agent will receive copies of these items (except for bills). 2. The Company will forward copies of cancellation and reinstatement notices to the lienholder(s) and additional interest(s). The agent is required to send endorsement declarations to the lienholder(s) and additional interest(s). ENDORSEMENTS 1. All premium adjustments will be made at rates that were in effect at the time the policy or renewal was issued. 2. The premium will not be changed mid-term because of changes in driving record or driver age. 3. Additional drivers and vehicles are covered as of the date and time requested if the request is submitted within binding authority. 4. Replacement vehicles are covered provided the Company is notified within 30 calendar days of the insured s taking delivery. The coverages of the vehicle replaced will apply unless notified otherwise. 5. Additional vehicles are automatically covered for 30 calendar days after acquisition. To continue coverage for the additional vehicle, a request must be submitted within the 30 calendar days. 6. An endorsement form should be completed and submitted to the Company if there are any changes in driving habits, driver conditions or vehicle changes which serve to increase the risk of loss. 7. Additional premium for endorsements are spread over the remaining unbilled installments. If there are no remaining installments, a bill will be sent to the insured for the entire amount of the endorsement. FOR YOUR CONVENIENCE YOU MAY do all endorsements online. please KEEP IN MIND THAT ANY ENDORSEMENT REQUIRING A SIGNATURE, i.e., changing the named insured, must be faxed or mailed with signature. PHONE: 800-888-8424 FAX: 877-295-2923 underwriting guidelines RENEWALS 1. Direct bill payment plans can be changed at renewal provided Titan is notified 60 days in advance of the renewal effective date. 10

CANCELLATIONS 1. Policies cannot be cancelled during the first 60 days of the policy term except as follows: Insured s Request a. Total destruction of the vehicle b. Transfer of title to the vehicle c. The insured has purchased another policy covering the vehicle d. Issued premium differs from the application premium Company s Request a. NSF check b. Material Misrepresentation c. Failure by the insured to pay a difference in the issued premium d. Underwriting reasons 2. Cancellations by the company will be calculated on a pro-rata basis. 3. Cancellations requested by the insured must be submitted in writing and include the policy number and insured s signature. The refund will be calculated as the unearned pro-rata percentage x.90. Exception: If the policy is cancelled as a result of an additional premium caused by an incorrect premium set forth in the application, then the return premium shall be calculated on a pro-rata basis. 4. Return premiums are sent directly to the insured. 5. No policy will be flat cancelled except where material misrepresentation is discovered. UNDERWRITING VERIFICATION Titan uses Industry databases, such as MVR and CLUE, to verify applicant information. Applicant information includes name, address, date of birth, and drivers listed in the household. If applicant information cannot be validated using our databases, the policy will be set up for cancellation. The cancellation reason will be Unable to verify underwriting information. underwriting guidelines SR-22 FILINGS 1. SR-22s must be written in conjunction with Liability coverage or full coverage. (including BI Coverage) 2. Filings can be made for states in which Titan is currently operating. Call our underwriting department for approval. 3. There is a fully earned fee of $25 charged for each driver requiring an SR-22 filing. 4. SR-22 filings are not available for limits greater than 25/50/25. FR-44 FILINGS Please contact Titan Customer Servi ce to endorse FR-44 filing onto the policy. We will charge one Filing fee for either SR-22 or FR-44 filing but not both. FR-44 filings require BI/PD limits equal to or greater than 100/300/50. COURT ORDERED SUSPENSIONS (COS) 1. A 6 month paid-in-full non-cancelable policy is available to insureds to reinstate a driver s license suspended by court order because of failure to maintain required PIP and PD coverages. A standard SR-22 form with the following words typed on the form will be issued: SIX MONTHS, NON-CANCELABLE PER SECTION 627.7275, F.S.. 2. If your license has been suspended due to a DUI you are required to purchase a Non-Cancelled policy per H-19 amendment effective October 15, 2005. 3. The following non-cancelable provisions are effective when our underwriting is completed or thirty (30) days from the effective date of the policy, whichever comes first: a. The policy may not be canceled for any reason. b. No refund of premium will be allowed. c. If there is a change in the policy, a new non-cancelable policy must be obtained. If a new Titan noncancelable policy is purchased all premium remaining on old policy will be collected. d. Policy must be paid in cash, money order or agency check. 11

EXCLUSIONS 1. All household members 15 years or older (including roommates) must be identified on the application and must be rated or excluded. 2. A spouse may be excluded. (A non-driving spouse must be excluded from the policy.) 3. The named insured cannot be excluded or deleted without canceling the policy. 4. Requests to exclude drivers from coverage must be signed by the named insured on the designated space located on the front of our auto application or the Driver Exclusion form. 5. In general, all title owners of a vehicle must be listed as drivers on the policy. If you have any questions, please call our Underwriting Department. See Unacceptable Policies #6. OUT-OF-STATE STUDENT/MILITARY PERSONNEL Out-of-state students vehicles should be rated using territory 999. There must be at least one vehicle on the policy garaged in Florida at least 10 months out of the year. Military personnel will be written as long as stationed in Florida at least 10 months out of the year. Use Florida garaging zip for rating period. household members All members of the household age 15 and older must be rated or excluded from the policy. underwriting guidelines 12

TIER DETERMINATION Titan uses a combination of underwriting criteria to develop a rate for your customer. These criteria include the following: PRIOR INSURANCE 1. Prior insurance means the named insured has proof of private passenger automobile liability insurance that verifies that the named insured or spouse had six (6) months of continuous liability coverage. Prior limits are those limits in force on the policy for a minimum of six (6) months. 2. Prior insurance criteria considers the number of lapse days and prior limits. 3. The software will print a fax cover sheet indicating proof of prior insurance is required to be sent in to Titan. 4. Acceptable proof consists of declarations page, renewal or cancellation notice that shows the expiration date and bodily injury limits with the name of the insured or spouse the same as the applicant. Policies with Titan will not be accepted as proof of prior. Prior Insurance (MILITARY EXCEPTION) 1. Active deployed military personnel that are returning home will be granted prior insurance without a lapse at state minimum limits (10/20/10) for determining the Underwriting Tier. 2. HOW TO SELECT MILITARY EXCEPTION: On the Underwriting - Quote page under prior insurance, select Military Exception. This will eliminate the other Proof of Prior questions. 3. Acceptable proof to validate the military exception include active military deployment papers will need to be submitted with the application. Failure to provide this information may result in a premium increase or policy cancellation. NON-CHARGEABLE INCIDENTS Includes comprehensive losses of $1,000 or more, UM/UIM losses, and not-at-fault accidents. underwriting guidelines FINANCIAL RESPONSIBILITY 1. Financial responsibility must be ordered for all applicants. 2. To order this information, simply follow the instructions on your quoting software. Please read the disclosure to the customer before ordering the score. 3. Include the full name, address and social security number of the applicant in order to obtain financial responsibility. An applicant has the right not to provide his/her social security number, but this may result in unconfirmed financial responsibility. 4. If a customer suspects inaccuracies in their credit information, they may request a credit report by calling or writing to the credit vendor. Please see the help section in the rating software for the credit vendor s address and telephone number. 5. Financial responsibility score determines credit tier as shown below: TIER Credit Tier Score Range 11 > 976 12 976 13 942 14 899 15 838 16 788 17 718 18 640 19 576 20 487 21 410 22 310 23 229 No-Hit 999 13

TIER DETERMINATION CONTINUED... RESIDENCY STATUS 1. Residency status criteria considers whether the named insured or spouse owns one of the following types of dwellings: a. House b. Townhome/condominium c. Mobile home. 2. If the named insured or spouse owns a home, townhome/condominium, or mobile home, proof is required in the form of a declarations page, mortgage payment coupon, or copy of property tax bill. This can be faxed along with the Proof of Prior Insurance. MULTI-CAR Considers whether there is more than one vehicle on the policy TIER DETERMINATION AT RENEWAL Customer s financial responsibility information will be updated every 24 months automatically or if requested by the insured. Policy will be retiered only if there is an improvement in the rate. Prior insurance information and non-chargeable incidents will only be updated if the policy meets the following criteria, and only if it places the policy in a lower rated tier. 1. No lapse in coverage 2. No claims 3. No NSF checks 4. No more than 2 late payments in the current term underwriting guidelines Financial Responsibility by Age An adjustment factor for age and insurance score. 14

LIABILITY BI / PD LIMITS Limits of BI/PD Liability must be the same for all vehicles on the same policy. AVAILABLE LIMiTS 10,000/20,000/10,000 10,000/20,000/25,000 25,000/50,000/10,000 25,000/50,000/25,000 50,000/100,000/25,000 50,000/100,000/50,000 100,000/300,000/50,000 100,000/300,000/100,000 100/300 limits are only available for policies with SR-22 or FR-44. Increased limits (250/500 or 300 CSL) are not available in ANY of the following situations: 1. Insureds without prior insurance coverage of at least 100/300. 2. Insureds with prior insurance with a lapse. 3. Policies with any driver 34 years or younger with DUI. 4. Policies with any driver with more that 1 accident. 5. Policies with more that 1 DUI for all drivers combined 6. Non-Owner policies personal injury protection (PIP) 1. Comprehensive and Collision may be written on a PIP/PD only policy subject to physical damage rules. 2. The selected PIP option must be the same on all vehicles of a multi-car policy. BASIC PIP- 1. Coverage provides 80% medical, 60% wage loss, and $5,000 death benefit. 2. The following deductibles are available: DEDUCTIBLE AMOUNT $ 0 250 500 1,000 COVERAGE DESCRIPTION & RULES - LIABILITY REDUCED PIP- Exclusion of Work Loss Benefit 1. Without coordination of Medical Expense Benefits. 2. Deductibles available: DEDUCTIBLE AMOUNT $ 0 250 500 1,000 15

LIABILITY CONTINUED... MEDICAL payments COVERAGE 1. The Medical Payments coverage limit is per person. 2. Coverage is available only when BI coverage is purchased. 3. Coverage must be provided on each vehicle of a multi-car risk at the same limit or it must be rejected for all vehicles. 4. If a PIP Deductible is chosen, then medical payments are not applicable. LIMITS $ 500 1,000 2,000 5,000 UNINSURED/UNDERINSURED MOTORISTS COVERAGE 1. UM/UIM limits may not exceed the limits of BI. 2. If UM/UIM limits are lower than BI limits, the insured must sign the acknowledgment on the application. 3. UM/UIM coverages must be provided on each car of a multi-car risk unless rejected for all cars. 4. UM/UIM coverages can only be written on policies providing BI/PD/PIP coverages or non-owner policies. 5. For Multi-Car policies, UM/UIM Coverage is available as both a stacked and an non-stacked coverage. 6. All single car policies must select non-stacked UM/UIM coverage. 7. If stacked or nonstacked Uninsured Motorist Coverage is not selected and rejection form is not signed, then UM/UIM will be issued at limits equal to those selected for BI. Multi-car policies will receive stacked UM Coverage at limits equal to those selected for BI. AVAILABLE LIMITS 10,000/20,000 25,000/50,000 50,000/100,000 100,000/300,000 Increased limits (250/500 or 300 CSL) are not available in ANY of the following situations: 1. Insureds without prior insurance coverage of at least 100/300. 2. Insureds with prior insurance with a lapse. 3. Policies with any driver 34 years or younger with DUI. 4. Policies with any driver with more that 1 accident. 5. Policies with more that 1 DUI for all drivers combined 6. Non-Owner policies COVERAGE DESCRIPTION & RULES - LIABILITY 16

LIABILITY CONTINUED... NON-OWNER COVERAGE 1. Non-Owner coverage may be written when an insured needs Liability coverage for the personal operation of a vehicle NOT owned by the insured or a person living in the same household as the insured. 2. Coverage applies ONLY to the named insured and non-owned vehicles. There is no coverage for a spouse or any other person. Permissive use is not included. 3. Coverage applies ONLY to private passenger automobiles. 4. Coverage does not apply to insureds who use vehicles in the course of business (i.e., auto salesmen or dealership employees). 5. BI/PD Liability, Medical Payments, UM/UIM and increased limits are available. 6. Discounts are available. 7. SR-22 s are available. The fully earned SR-22 fee will apply. 8. A vehicle can be added to a non-owner policy by completing the appropriate policy change request form. Coverage will apply to the owned vehicle provided the named insured notifies us within 30 days after the date of acquisition. The non-owner policy will then be converted to an auto policy. Normal binding authority applies. 9. To quote a non-owner policy, simply skip the vehicle screen on our rating software and select Non-Owner on the Policy Info screen. 10. Non-owner policies are not available for policies with FR-44s or Bodily Injury limits greater than 10,000 per person and 20,000 per occurrence (10/20). COVERAGE DESCRIPTION & RULES - LIABILITY 17

PHYSICAL DAMAGE COMPREHENSIVE AND COLLISION RULES 1. The model year of the vehicle is that assigned by the manufacturer. Vehicles over 20 years old are unacceptable for comprehensive and collision. 2. Comprehensive and Collision coverages are based on actual cash value and include equipment which is NOT considered Additional Equipment. (See Additional Equipment on pg. 17). 3. Vehicles of a multi-car risk may have different deductibles. 4. The agent must inspect and complete a vehicle inspection form on all vehicles before binding Comprehensive and Collision coverages. 5. Comprehensive deductible does not apply to windshield losses. 6. Physical damage inspections are required by Florida Statute 627.744 effective October 1, 1990 in the following counties only: Broward, Dade, Duval, Hillsborough, Orange, Palm Beach, and Pinellas. A. Florida Statute 627.744 prescribes the new requirements for pre-insurance vehicle inspections. No private passenger vehicle policy providing physical damage coverage, including collision or comprehensive coverage, may be issued in Florida unless the insurer has inspected the vehicle according to this statute. If the company does not receive the required physical damage inspection form within 30 days, coverage will be suspended and reinstated only upon receipt in our office of the inspection form. B. The physical damage inspection requirement does not apply to: 1) A NEW motor vehicle purchased from a licensed auto dealership, if we are provided with ONE of the following: a. A bill of sale of buyer s order which contains a full description of the motor vehicle, including all options and accessories. b. A copy of the title which establishes transfer of ownership from the dealer to the customer AND a copy of the window sticker OR the dealer invoice showing the itemized options and equipment and the total retail price of the vehicle. For the purpose of 1.) a. & b. above, the physical damage coverage on such motor vehicles shall not be suspended during the term of the policy due to applicant s failure to provide the required documents. However, payment of a claim shall be conditioned upon receipt by us of such documents, and no physical damage loss occurring after the effective date of coverage shall be payable until the documents are provided to us. 2) A new policy for a policyholder who has been insured for three years or longer, without interruption, under a private passenger motor vehicle policy which provides physical damage coverage, issued by the same company. 3) A temporary substitute vehicle. 4) Vehicles leased for less than six months. 5) Vehicles ten years or older. 6) Any renewal policy. C. Agency Inspection Method 1) For new business, complete the FLORIDA MOTOR VEHICLE PREINSURANCE INSPECTION FORM and submit with application for coverage, together with required downpayment. 2) For additionally acquired and/or replacement vehicles requesting physical damage, inspections are required within seven days of the date we receive the change request. COVERAGE DESCRIPTION & RULES - PHYSICAL DAMAGE 18

PHYSICAL DAMAGE CONTinued... DEDUCTIBLES 1. Vehicles of a multi-car risk may have different deductibles. 2. All Comprehensive and Collision deductible combinations are valid. (Except: $1,000 Collision deductible must be purchased with a minimum $500 Comprehensive deductible.) 3. Comprehensive premium is subject to a minimum of $15 per 6-month term and $30 per annual term. AVAILABLE DEDUCTIBLES $100 $250 $500 $750 $1,000 Double Deductible: When selected, deductible will double if loss occurs during the first 45 days of the policy inception. At renewal, the Double Deductible should convert to the corresponding non-decreasing deductible option. AVAILABLE DOUBLE DEDUCTIBLES $100 DD $250 DD $500 DD $750 DD $1,000 DD Loss of Use (RENTAL REIMBURSEMENT) COVERAGE 1. May only be offered in conjunction with Physical Damage. 2. This coverage may only be written at policy inception or added at renewal. 3. Loss of Use coverage reimburses up to the maximum limit when a vehicle must be rented due to a covered Comprehensive or Collision loss to an insured vehicle. However, this coverage does not apply when there is a total theft of the vehicle. (In the event of a covered loss, Liability and Physical Damage on an insured car extends to a rented car, if it is a temporary substitute car.) LIMIT PER DAY MAXIMUM LIMIT $20 $600 $30 $900 TOWING REIMBURSEMENT COVERAGE 1. May only be offered in conjunction with Physical Damage. 2. This coverage may only be written at policy inception or added at renewal. 3. Towing Reimbursement Coverage is applicable when the insured vehicle must be towed due to a disablement. AVAILABLE LIMITS PER MAXIMUM DISABLEMENT LIMITS $50 $100 $75 $150 COVERAGE DESCRIPTION & RULES - PHYSICAL DAMAGE 19

PHYSICAL DAMAGE CONTinued... SPECIAL (additional) EQUIPMENT COVERAGE Special equipment is considered to be any non-original equipment (from the) manufacturer (non-oem) item or feature. 1. Special equipment is subject to a $50 deductible and is not covered unless specifically listed on the application or the Special Equipment Endorsement form and the proper premium paid. 2. The following items and their accessories are considered special equipment: a. Special or custom paint finishes. b. Permanently installed stereo or other equipment that is designed for the recording and/or reproduction of sound which has an actual cash value in excess of $750, or citizen band radio(s) including any accessories and antennas or radio receivers. c. A pick-up cover, cap or shell, awning or cabana. d. Any ornamental or protective accessories which may include shields, bras, engine accessories, racing slicks, oversized or special tires, special wheels, or special wheel covers. e. Any equipment which changes the use or appearance of the interior of the insured car which may include swivel chairs, appliances, furniture, special carpeting, bars, panelling. f. Any equipment which mechanically or structurally changes the insured car, or results in an increase in performance or change in appearance. 3. Coverage is not available for the following items or their accessories: telephones, radar detectors, two-way mobile radios, scanning monitor receivers, television. RANGE OF COVERAGES Equipment Cost - New $ 0-100 101-200 201-500 501-1,000 1,001-1,500 1,501-2,000 2,001-2,500 OEM BUYBACK ENDORSEMENT This may be purchased when an insured wants to guarantee the use of OEM (Original Equipment Manufacturer) parts when repairing their vehicle. An additional surcharge will be applied for this option. This option is available on Comprehensive and Collision coverages. If this endorsement is not purchased, non-oem parts may be used in the repair of the insured s vehicle. The insured must sign the signature block on the application when they purchase this endorsement. ACCIDENT FORGIVENESS ENDORSEMENT 1. When selected the first at-fault accident that occurs on the policy will not be used to determine the renewal rate. a. The endorsement can be selected at New Business or Renewal. b. Mid-term changes are not allowed, including adding or removing this feature. 2. If the endorsement is removed from the policy, then any previously waived at fault accident would be considered chargeable effective the date the endorsement was removed. 3. At renewal, any additional at-fault accidents that appear as having occurred after the original inception date at New Business should be charged, only the first at fault accident will be waived at the policy level. a. The first waived at-fault accident would continue to be waived for the duration of the experience period (35 months) as long as the Accident Forgiveness endorsement is maintained on the policy. 4. At fault accidents occurring in subsequent policy terms would not be eligible for waiving until the waived at fault accident has expired. 5. The Accident Forgiveness endorsement will remain on the policy at time of reinstatement. 6. When selected, Accident Forgiveness will appear on the Quote, Declaration Page and Application. COVERAGE DESCRIPTION & RULES - PHYSICAL DAMAGE 20

PROGRAM DISCOUNTS MULTI-CAR DISCOUNT Varies Applies when there is more than one vehicle on the policy. Discount is included in tier placement. HOME OWNER DISCOUNT Varies Applies when named insured or spouse owns a: 1. house 2. townhouse 3. condominium 4. mobile home (10 years or newer) Discount is included in tier placement. Acceptable proof consists of declaration page, mortgage payment coupon, or copy of a recent property tax bill. PAID-IN-FULL DISCOUNT Varies Customer pays 100% of the quoted premium with the application. ANTI-LOCK DISCOUNT 5% Applies to vehicles which are certified to have anti-lock brakes. Applies to BI, PD, PIP, MP, Collision PROGRAM DISCOUNTS ANTI-THEFT DISCOUNT 10% Applies to each vehicle equipped with: a. a hood lock which can be released only from inside the vehicle b. an active or passive device which disables the vehicle s fuel, ignition or starting mechanisms or an alarm only device which sounds an audible alarm that can be heard at a distance of at least 300 feet for a minimum of three minutes. c. a vehicle recovery system device which is an electronic unit in a vehicle that is activated after the vehicle is stolen. When activated the device provides information to law enforcement officials or another public or private entity regarding the vehicle s location. The system provides for the routine delivery of the information to the appropriate law enforcement entity to assist in the recovery of the vehicle.. Device must be factory installed. Proof of installation must be submitted with application. Applies to Comprehensive coverage. AIR BAG DISCOUNT Full Front - 2% A 2% discount applies to vehicles equipped with full front seat airbags that meet federal or appropriate equivalent standards. Driver s side only - 2% A 2% discount applies to vehicles equipped with driver s side only airbags that meet federal or appropriate equivalent standards. Applies to MP, PIP SENIOR OPERATOR MOTOR VEHICLE ACCIDENT PREVENTION COURSE DISCOUNT 5% Applies to only drivers 55 and older. Insured must submit a copy of the certificate indicating the state-approved course has been successfully completed. Applies for 36 months from the date the course was completed provided the driver s record remains clean. Applies to BI, PD, MP, PIP, Comp and Collision coverages. NON-OWNER DISCOUNT 35% Applies to non-owner policies. Applies to BI, PD, MP, UM. 21

PROGRAM DISCOUNTS CONTINUED... ACCIDENT FREE DISCOUNT* 5% To qualify for the Accident Free Discount, driver must meet all of the following requirements: Driver cannot have an at-fault accident and no Major Violations for the past 5 years. Must have prior insurance with no lapse. The primary named insured on policy must be 21 years old or older. For New Business, the experience period is defined as the five years immediately preceding the effective date of the policy. For Renewals, the experience period is defined as the five years immediately preceding the renewal effective date. MILITARY DISCOUNT 5% A person qualifies for the military discount when: a. The active service member, retired service member, or spouse is rated on the policy. b. Acceptable proof must be maintained in the agents file. Applies to BI, PD, MP, PIP, COMP & COLL. PROGRAM DISCOUNTS 22

PROGRAM DISCOUNTS CONTINUED... GOOD STUDENT DISCOUNT Varies Discount applies to drivers age 24 and under, unmarried and are enrolled as a full-time student in: high school academic courses in a college or university vocational technical school Annually, the company is furnished a Report Card or statement certified by a school official indicating that the student has met one of the following requirements for the immediately preceding school semester or quarter (or comparable period): Ranked among the upper 20 percent of the class scholastically. In schools using letter grades, had a grade average of B or its equivalent or, if the system of letter grading cannot be averaged, no grade is below B. In schools using numerical grade point, such as 4, 3, 2, and 1 point, had an average of at least three points for all subjects combined. Was included in Dean s List, Honor Roll, or comparable list indicating scholastic achievement. If the owner or operator is age 24 and under and unmarried and a full time graduate student in a college or university, the Good Student classification is applicable without the requirement for certification. The Good Student Discount can be added mid-term. It will not be removed until renewal if the company is notified the student fails to meet the criteria for a good student. Students who are enrolled in a home study program must satisfy the scholastic requirements by submitting evidence that they ranked in the upper 20% of one of the following national standardized test, administered within the past twelve months; evidence of ranking must be supplied to the company each subsequent 12 months. (Manually enforced rule). PSAT (Preliminary Scholastic Aptitude Test) PLAN (Preliminary American College Test) SAT-1 (Scholastic Aptitude Test ACT (American College Test) Iowa Test of Basic Skills California Achievement Test Stanford Achievement Test, Tenth Edition Peabody Individual Achievement Test PROGRAM DISCOUNTS ADVANCE QUOTE DISCOUNT 5% This discount applies to policies that are quoted on our rating systemmore than seven (7) days before the new business effective date. The named insured or spouse must have prior insurance with no lapse in coverage. Proof of prior insurance is required. The discount continues to apply at renewal, provided there is no lapse in coverage. Applies to BI, PD, MP, PIP, UM, COMP & COLL 23

SURCHARGES BUSINESS/ARTISAN USE SURCHARGE 25% Acceptable Business Use, Includes, but is not limited to: 1. There is only one vehicle in this category on the policy (refer to page 7 - Unacceptable Policies); 2. Vehicles used by sales or service representatives, or for consumer oriented direct home sales (e.g., Avon, Mary Kay, Tupperware); 3. Vehicles used by real estate or insurance agents, lawyers, doctors, accountants or other professionals visiting multiple locations on a daily basis; 4. Vehicles owned by the insured and used by domestic employees (e.g., maids, chauffeurs); 5. Vehicle used in a business for occasional errands. 6. Vehicles owned or leased by a partnership or corporation are acceptable ONLY when all of the following conditions are met: a. The vehicle is ordinarily operated by the named insured or a resident relative for pleasure or commuting; b. All operators are household members and listed on the policy; c. No logo s or advertising are painted on or attached to the vehicle in any way; d. The vehicle is not used by an Artisan (see definition of Artisan Use below); and e. No more than four such vehicles are owned or leased by the partnership or corporation. Corporations or Partnerships cannot be listed as a named insured, but may be listed as an additional interest. SURCHARGES Unacceptable Business Use, Includes, but is not limited to: 1. Pick-up or delivery of goods (including, but not limited to, newspaper, pizza, or other food items), limousine or taxi services, and livery conveyance, including not-for-hire livery, (see also Unacceptable Risks on page 7). 2. Vehicles with logos or advertising on them. 3. Vehicles with a load capacity over 1 ton. Applies to BI, PD, PIP, MP, Comp and Collision Acceptable Artisan Use Vehicles used to transport tools or other materials by the insured in a trade or business are acceptable if all of the following conditions are met: 1. There is only one vehicle in this category on the policy; 2. The insured visits no more than two job sites per day; 3. The vehicle is owned or leased by an individual, not a corporation or partnership; 4. The vehicle is operated solely by the named insured or other resident relatives; 5. The vehicle is not used to transport explosives, chemicals, flammable materials, or more than 500 pounds of supplies or equipment; and 6. Vehicles with a load capacity of 1 ton or less. 7. Vehicles with ladder racks or supply storage racks above the roof or bed of a truck or van are unacceptable. INEXPERIENCED DRIVER SURCHARGE 40% or 25% Any driver 19 years of age and older possessing a U.S. driver s license for 1 year or less. The surcharge is 25% if the International/ Foreign Surcharge is being removed from the policy. The surchage is 40% otherwise. The surcharge will be removed upon the request of the insured after the driver has accumulated more than one year of driving experience or will automatically rolloff the driver has been on the inforce policy for 35 months. Applies to BI, PD, PIP, MP, Comp and Collision INTERNATIONAL/FOREIGN DRIVER SURCHARGE 25% Any driver who has a valid international or foreign driver s license but not a valid U.S. license. The surcharge will be removed once a valid U.S. license is obtained. Inexperienced Driver Surcharge may apply. Applies to BI, PD, PIP, MP, Comp and Collision 24

SURCHARGES continued... PRIOR INSURANCE LAPSE SURCHARGE 5% Applies at the time of rewrite for lapse up to 60 days if the policy is in a prior insurance- no lapse tier. The surcharge will be removed after 6 months of continuous coverage at the time of renewal. Applies to BI, PD, PIP, MP, Comp and Collision, UM/UIM OEM BUYBACK SURCHARGE 6% COMP / 9% COLL Applies to any vehicle on the policy with Physical Damage coverage if the OEM buyback endorsement is elected for the policy. NON-RESIDENT SURCHARGE 20% Applies to the policy if there is any out-of-state driver. 1. Students and military that are not in the state of Florida. 2. Minimum liability limits of 25/50 are required. 3. At least one vehicle on the policy must be garaged in Florida. 4. If the vehicle is garaged outside of Florida, use rating territory 999. Applies to BI, PD, MEDPAY/PIP, COMP, COLL, UM/UIM SURCHARGES EXCLUDED DRIVER SURCHARGE 10% Applies to all vehicles on a policy when an excluded driver is listed. Driver exclusions are not allowed on PIP/PD only policies. Does not apply to a driver that is disabled and not licensed to drive. Applies to BI, PD, PIP, MP, UM/UIM UNVERIFIABLE DRIVING HISTORY Applies to any rated driver whose driving record cannot be verified. Applies to BI, PD, MP, PIP, COMP & COLL. VARIES 25

DRIVER VIOLATION & ACCIDENT RULES RULES 1. Drivers who are separated, divorced or widowed should be rated as single, 2. Each driver is rated on convictions and accidents during the preceding 35 months. Commercial convictions and accidents are chargeable. 3. When multiple convictions occur in a single day (including multiple convictions resulting from a single occurrence), apply only one conviction (the most serious), based on the following ranking. Conviction Rank of Seriousness* Major 1 At-Fault Accident 2 DWI 3 Minor 4 Speeding 5 * 1 is the most serious and 5 is the least serious. 4. Use the occurrence date for all infractions. 5. Out-of-state convictions and accidents are chargeable. 6. Surcharges are made based upon information contained on the application and MVR. 7. All accidents are considered at-fault unless proof of no-fault is furnished with the application; a police report, a letter from the prior company or proof of another company s payment is acceptable. If the accident is not at-fault, please provide details or we will charge for it.. 8. If all MINOR or SPEED Violations occurred in the previous 18 months, the oldest violation will be waived. If there have been 2 or more MINOR or SPEED Violations in the past 35 months, the 2 oldest violations will be waived All SPEED Violations exceeding the lawful speed limit by 16 MPH or more will be charged. VIOLATIONS/ACCIDENTS AT-FAULT ACCIDENTS Surcharges are not based on points. Surcharges apply based on the number of occurrences and the time since each occurrence. DRIVING WHILE INTOXICATED Driving while intoxicated or under the influence of drugs, or failure to submit to a chemical test. MAJOR VIOLATIONS AD Illegal possession of Alcohol/Drugs AP False Accident Report/Perjury DR Drag Racing (including speed contests and exhibitions) DS Driving while Susp/Revoked/Cancelled FO Fleeing or Eluding FS Fail to Stop & Report Accident HR Leaving the scene RD Reckless Driving SX Speeding > 30 mph over Posted UU Unlawful Use/Display of License VF Felony W/motor vehicle VH Hom/Asst W/ mot vehicle MINOR VIOLATIONS All moving violations not considered major violations, driving while intoxicated violations, or speed violations. SPEED VIOLATIONS All moving violations that include the words speed or speeding in the description of the violation, unless listed under a different violation classification. 26

TERM down pay- MENT IF THE REMITTANCE STUB IS MISSING, MAIL PAYMENTS TO: Titan Insurance Group P O Box 6838 Cleveland, OH 44101-6838 PAYMENT OPTIONS install- MENTS RENEWAL PAY PLAN 6 Paid-In-Full N/A Paid-In-Full 6 50% 1 @ 50% 50% Down, 1 install 6 40% EFT 5 @ 12% 16.7% Down, 5 installs EFT 6 33% 4 @ 16.75% 20% Down, 5 installs 6 33.33% 5 @ 13.33% 16.7% Down, 5 installs 6 20% EFT 5 @ 16% 16.7% Down, 5 Installs EFT * All policies without BI Coverage are required to pay in full at new business and renewal * Payment plans are being offered in compliance with Section 627.7295 F.S. DIRECT BILL GUIDELINES METHODS OF PAYMENTS Initial down payment Visa and MasterCard down payments on uploaded policies are available on our website, www. VictoriaInsurance.com. Remember to complete the credit card authorization form and retain in your files. The authorization form MUST be signed by the credit card holder. Installments and renewal payments a. Credit card: The installment or renewal payment may be made directly at the Agent s office using the credit card feature on our website, www.victoriainsurance.com. The insured may also make a Visa or MasterCard payment by calling our Customer Service Department at 1-800-888-8424 and follow the prompts. b. Telecheck: Agents and insureds can call in with a check to make a payment. Call 1-800-888-8424. This service is provided at no fee. c. Electronic Funds Transfer: If the applicant wishes to have his/her monthly payment and any renewals thereafter automatically deducted from his/her checking account or charged to his/her credit card, select the EFT payment plan. RULES 1. The full downpayment must be included with the application. Checks should be made payable to Titan. 2. On renewals, a new direct bill payment plan can be selected provided Titan is notified at least 60 days prior to renewal. 3. Do not front money for your insureds. We will not accept premium financing for direct bill policies. 4. EFT bill plans are not available at the time of rewrite. 27

FEES NON-EFT INSTALLMENT FEES will be charged for each installment, a rate of interest not to exceed 18% simple interest per year on the unpaid balance, up to a cap of $10.00... Varies EFT INSTALLMENT FEE will be charged for each installment, a rate of interest not to exceed 18% simple interest per year on the unpaid balance, up to a cap of $5.00... Varies NSF FEE will be charged when an insured s check is returned for non-sufficient funds... $ 15 SR-22 FEE will be charged for any new filing... $ 15 Late Fee will be charged for payments received after the due date with a 2 day grace period... $ 5 PAY PLAN SET UP FEE paid at the time of application, for those selecting a pay plan... $ 10 POLICY FEE will be earned over the policy term... $ 25 Reinstatement/Rewrite Fee will be charged for all reinstatements... $ 15 FEES NOTE: ALL FEES ARE FULLY EARNED unless indicated otherwise 28

TITAN Plus Product TITAN PLUS FL Titan Plus IA 4/2012

Titan Plus Guidelines Titan Plus Eligibility Several additional variables are used to determine if the insured is eligible for our Titan Plus Product: Components Major Violations (M class), DUIs (DI class) or Suspensions/ Cancellations/Expirations (0-60 Months) At-Fault Accidents (0-35 Months) Minor Violations (N class) or Speeding Violations classed as (SP) (0-35 Months) Combination of Accidents/Violations (0-35 Months) Comprehensive Losses >$1,000 (applies at policy level) (Experience period is the 35 months immediately preceding policy effective date) Towing & Labor Losses (Experience period is the 35 months immediately preceding policy effective date) Age Driving Experience Proof of Prior Insurance SR22/FR-44 Driver's License Credit Re-tiering BI Coverage Titan Plus Product 0 major violations per driver/per policy. Suspensions/Cancellations/Expirations will be determined based on the last reinstate date. 1 DUI will be allowed per policy if the driver has no other violations during the most recent 35 month period - all drivers will be evaluated No more than 1 per driver. 0 AF if Clean DUI No more than 2 violations per driver. If Clean DUI, 0 minor (N class) and 0 speeds (SP class) 2 MINOR or SPEED and 0 AF per driver. If Clean DUI, no combinations are allowed. No more than 2 per policy AND no more than 1 total theft per policy (a total theft is defined as a COMP claim with more than $5000 paid out), 3 if 3 or more vehicles No more than 2 per policy per year. Per year is defined as a twelve month period starting with the policy effective date. No restriction other than years driving experience. Named Insured must have three years driving experience in the US unless a rated parent or spouse has the required driving experience. If named insured has 3 years driving experience, policy is eligible for Titan Plus. If not, then a rated parent or spouse must have the three years driving experience in order to qualify. Proof of continuous coverage for at least 6 months required. Titan/Victoria policies do not qualify as prior insurance. Prior insurance must include BI coverage, PD/PIP only not accepted. None at POS - Not permitted at new business. Note: Clean DUI exception. Valid and Active US License Required (No International Drivers are allowed at New Business). Credit must be ordered to qualify. There will be no automatic re-tiering from Titan Plus to Titan General, or Titan General to Titan Plus, at the time of renewal or reinstatement. PIP/PD policies are not accepted. titan plus GUIDELINES REWRITE OF PREVIOUSLY UPLOADED POLICIES Does not apply. Rewrites are not available for the Titan Plus product. SR-22 FILINGS SR-22s are not permitted at New Business for the Titan Plus product. As an accommodation, SR-22s can be added mid-term or at renewal for Titan Plus, however the full SR-22 fee of $25 will be charged at that time. UNACCEPTABLE DRIVERS Criteria are the same as the Titan Core product (see page 6) except as noted below. 1. Drivers must possess a valid U.S. driver s license or a valid Military I.D. 2. Unlicensed drivers, except those excluded from the policy. FL Titan Plus IA 4/2012 30

UNACCEPTABLE POLICIES Criteria are the same as the Titan Core product (see page 6). UNACCEPTABLE VEHICLES Criteria are the same as the Titan Core product (see pages 7 and 8). PROGRAM DISCOUNTS Same as the Titan Core product (see pages 21-23) except as noted below. ACCIDENT FREE DISCOUNT 10% 1. To qualify for the Accident Free Discount, driver must meet all of the following requirements: a. Driver cannot have an at-fault accident and no Major Violations for the past 5 years. b. Must have prior insurance with no lapse. c. The primary named insured on policy must 21 years old or older. 2. For New Business, the experience period is defined as the five years immediately preceding the effective date of the policy. 3. For Renewals, the experience period is defined as the five years immediately preceding the renewal effective date. SURCHARGES Same as the Titan Core product (see pages 24 and 25) except as noted below. titan plus GUIDELINES PRIOR INSURANCE LAPSE SURCHARGE Policies without at least 6 months of continuous prior liability coverage are not eligible for the Titan Plus product. INTERNATIONAL/FOREIGN DRIVER SURCHARGE 25% Any International/Foreign driver who does not have a valid U.S. license. The surcharge will be removed once a valid U.S. license is obtained. After removal of the surcharge the Inexperienced Driver Surcharge may apply. Inexperienced Driver Surcharge 25% Any driver 19 years of age, or older, possessing a U.S. driver s license for 1 year or less. If the driver previously had the International/Foreign Driver Surcharge, the surcharge will equal the International/Foreign Driver Surcharge. The surcharge will be removed upon the request of the insured after the driver has accumulated more than one year of driving experience or will automatically roll off the driver has been on the inforce policy for 35 months. FL Titan Plus IA 4/2012 31

TITAN PLUS BILL AND FEE GUIDELINES titan plus PAYMENT OPTIONS TERM DOWN PAY INSTALLMENTS RENEWAL PAY PLAN 6 Paid-In-Full N/A Paid-In-Full 6 50% 1 @ 50% 50% Down, 1 Install 6 40% EFT 5 @ 12% 16.7% Down, 5 installs EFT 6 33.33% 5 @ 13.33% 16.7% Down, 5 Installs 6 33% 4 @ 16.75% 20% Down, 5 Installs 6 20% EFT 5 @ 16% 16.7% Down, 5 Installs EFT 6 33% 4 @ 16.75% 20% Down, 5 Installs * All policies without BI Coverage are required to pay in full at new business and renewal * Payment plans are being offered in compliance with Section 627.7295 F.S. TITAN PLUS FEES NON-EFT INSTALLMENT FEES will be charged for each installment, a rate of interest not to exceed 18% simple interest per year on the unpaid balance, up to a cap of $5.00... Varies EFT INSTALLMENT FEE will be charged for each installment, a rate of interest not to exceed 18% simple interest per year on the unpaid balance, up to a cap of $3.00... Varies LATE FEE will be charged for payments received after the due date with a 5 day grace period... $10 REINSTATEMENT/REWRITE FEE will be charged for all Reinstatements... $20 NSF FEE will be charged when an insured s check is returned for non-sufficient funds... $30 SR-22 FEE will be charged for any new filing... $25 PAYMENT PLAN SET UP FEE paid at the time of application, for those selecting a pay plan... $10 POLICY FEE will be earned over the policy term....$20 titan plus GUIDELINES FL Titan Plus IA 4/2012 32