TEXAS PRIVATE PASSENGER NON STANDARD AUTOMOBILE UNDERWRITING MANUAL Print Date: 9/6/2012-1 -
Table of Contents General Information... 3 General Rules... 3 Important General Notes... 3 Binding And Policy Issuance... 4 Electronic Application and Policy Issuance... 4 Other than Electronic Applications... 5 Policy Terms... 5 Policy Fees and Other Charges... 6 Policy Fees... 6 Billing / Service Fees... 7 Other Charges... 7 Payments... 7 Renewal Procedures... 7 Endorsements... 8 Notification... 9 Exclusion Of Driver... 9 Cancellations... 9 Reinstatements... 9 Prior Approval, Prohibited and Excluded Risks... 10 Risks Requiring Prior Approval / Additional Documentation... 10 Prohibited Risks... 10 Special Equipment... 11 Exclusions... 12 Financial Responsibility Filings... 13 Claim Guide... 13 Coverage Rules... 14 Rules For Liability Coverage... 14 Rules For Physical Damage Coverage... 14 Rules For Other Coverages... 14 Rating... 15 Other Rating Surcharges... 17 Special Rating... 17 Driver Classification... 17 Motor Vehicle Records (MVRs)... 18 Driver Point Schedule... 20 Print Date: 9/6/2012-2 -
General Information General Rules 1. Applications must be completed, clearly and accurately in their entirety and signed by the Applicant. The application is a representation of the facts it attaches to and becomes a part of the policy. Any errors and / or omissions may result in denial of coverage and the policy may be considered null and void. 2. Applications must be submitted through the online system. In the rare event that the online system is down or the producer is experiencing some temporary and provable technical difficulty, the producer must first call (ENTER NAME OF PROGRAM ADMIN- ISTRATOR) s Underwriting Department for prior approval before submitting any manual application, endorsement, or payment. All signed documents must be completed in their entirety. Any application or any other pre-printed form altered or incomplete in any way will be invalid and the submission will be returned unbound. 3. All transactions processed in the system by the producer are effective from the date and time that they are entered into the system ONLY. No exceptions. 4. Only private passenger-type vehicles, coverages and risks for which a premium rate appears in this guide will be written. 5. Four or more cars require additional policy(ies) to be issued. 6. If the Application contains the coverages of Comprehensive, Collision and / or UMPD, two (2) clear color photos must be attached to the application. If the photos are not submitted, the applicable coverages will be surcharged according to the Rate Guide, Rating Surcharge section. 7. The proper premium remittance must be attached to each Application. Important General Notes 1. Hurricane Restrictions - It is not permissible to bind this Company on any new business or to increase any outstanding liability within 100 miles of the garaging address of any area that is potentially impacted by the (NOAA) National Hurricane Center s three day forecast showing an approaching storm to specific areas. Areas can be found by looking up the Potential 3 day track on the NOAA website WWW.NAC.NOAA.GOV i. These restrictions will remain in force until the storm has passed and until 24 hours after the tropical depression/storm/hurricane watch or warnings go down, or you receive notification from the Company that the binding of business can resume. 2. Incomplete Applications - If an Application, which lacks information necessary to underwrite the risk is submitted, the Company shall return the Application, and no Coverage shall be afforded. 3. Named Non-Owner Policy - Not written. 4. Rounding of Premium - The premium for each Coverage will be rounded to the nearest whole dollar at the end of the calculation. Fifty cents ($.50) or more will be rounded to the next higher whole dollar. Print Date: 9/6/2012-3 -
Binding And Policy Issuance Binding authority rests solely with (ENTER NAME OF PROGRAM ADMINISTRATOR). The (ENTER NAME OF PROGRAM ADMINISTRATOR) on line system will bind and issue the policy, subject to (ENTER NAME OF PROGRAM ADMINISTRATOR) approval, if it is not on our list of exclusions, prohibited risks, or prohibited vehicles and provided the following conditions apply: Electronic Application and Policy Issuance 1. All questions must be answered in the electronic application. 2. A printed application must be signed by the applicant and the producer, where indicated. 3. Based on the responses to application questions, once the system binds the risk it will allow the producer to print all other forms necessary to complete policy issuance (i.e., Exclusion of Driver(s), Vehicle Inspection or Modification Form, etc.). These forms must also be completed and signed by the applicant. 4. Once the system binds the risk we will issue the Declarations Page, Policy Form and other applicable forms through our on line system. The producer can go into the system and do the following: B. Print the Declaration page, which shows the effective time and date of coverages as well as all pertinent information. Print all other applicable forms, e.g., ID cards, loss payee (if any), payment receipts, payment coupons, SR- 22, MVRs, etc. 5. File the SR-22, if necessary. Any forms which must be completed manually must immediately be faxed or mailed to (ENTER NAME OF PROGRAM ADMINISTRATOR) unless they have been digitally signed by the producer and applicant. 6. Provide a policy folder to the insured which includes: a. Policy jacket b. Policy form c. Declaration page with a copy of the signed application d. ID cards e. Exclusion of Driver(s), SR-22, etc. and any other documents necessary to complete policy issuance. 7. Coverage will not be effective prior to the date and time entered into the system. If the online system is not available at the time the customer is present, DO NOT enter the payment into the system later. Processing payments in this manner is strictly prohibited. (ENTER NAME OF PROGRAM ADMINISTRATOR) relies on the date and time of a processed transaction to verify coverage. Instead, to process these payments, record the date and time of payment receipt as customary and call (ENTER NAME OF PRO- GRAM ADMINISTRATOR) to register the date and time of payment. Mail the payment to (ENTER NAME OF PROGRAM ADMINISTRATOR) for payment processing. Print Date: 9/6/2012-4 -
Other than Electronic Applications (In the rare event that on-line application system is not available; the Producer will call (ENTER NAME OF PROGRAM ADMINISTRATOR) for approval prior to processing an application other than through the on-line system). 1. Approved comparative / proprietary applications are only permissible with prior approval on each transaction by the Underwriting Department during temporary technical difficulties. 2. When regular mail is postmarked by the U.S. Post Office (USPS), coverage will be effective no earlier than 12:01 AM following the postmark shown on the envelope transmitting the application. 3. When metered mail is used, coverage will be effective no earlier than the date received by (ENTER NAME OF PROGRAM ADMINISTRATOR). Policy Terms 1. Monthly: one month's premium plus the policy fee is sufficient to bind and issue. 2. Policy With a Term of Two (2) or Three (3) Months: multiply the term desired by the applicable monthly premium and add the policy fee. 3. Semi-annual Policy Paid in Full: multiply the developed premium of a six (6) month term by the Paid in Full Discount and add the policy fee. 4. Semi-annual Policy 25% Down, Four (4) Installment Payment Plan a. 100% of developed premium of six (6) month term. b. 25% down payment plus policy fee. c. The remaining premium is divided into four equal payments, rounded to the nearest dollar, plus policy fees and installment service charges. d. First installment payment due on or before the 30 th day from the inception date of coverage. e. Thereafter the remainder of installment payments due on 30-day intervals until paid in full. 5. Semi-annual Policy 33 1/3% Down, State Mandatory Optional Installment Payment Plan a. 100% of developed premium of six (6) month term. b. 33 1/3% down payment plus policy fee. c. The remainder of the premium is divided into four (4) equal amounts, rounded to the nearest dollar, plus the applicable policy fees and service charges d. The First Installment Payment is due on or before the 45th day from the inception date of Coverage. e. Thereafter, the remainder of the installment payments are due on 30-day intervals until paid in full. 6. Semi-annual Policy 20% Down, Five (5) Installment Payment Plan a. 100% of developed premium of six (6) month term. Print Date: 9/6/2012-5 -
b. 20% down payment plus policy fee. c. The remaining premium is divided into five (5) equal payments, rounded to the nearest dollar, plus policy fees and installment service charges. d. First installment payment due on or before the 25 th day from the inception date of coverage. e. Thereafter the remainder of installment payments due on 30-day intervals until paid in full. 7. Semi-annual Policy 17% Down, Five (5) Installment Payment Plan a. 100% of developed premium of six (6) month term. b. 17% down payment plus policy fee. The remaining premium is divided into five (5) equal payments, rounded to the nearest dollar, plus policy fees and installment service charges. c. First installment payment due on or before the 20 th day from the inception date of coverage. d. Thereafter the remainder of installment payments due on 30-day intervals until paid in full. 8. Semi-annual Policy 17% Down, Five (5) Installment Payment Plan, Recurring, Automatic Payments (Credit, Debit. or EFT Electronic Funds Transfer) a. 95% of developed premium of six (6) month term. b. 17% down payment plus policy fee. c. The remaining premium is divided into five (5) equal payments, rounded to the nearest dollar, plus policy fees and installment service charges. d. First installment payment is due on or before the 30 th day from the inception date of coverage. e. Thereafter, the remainder of the installment payments will be assessed to the account information on file on 30-day intervals until paid in full. f. If any policyholder's payment assessments/installment payments fail on 2 separate occasions, the recurring automatic payment policy term will not be available for the next renewal. The policyholder will need to make all payments on the next renewal on time and without a lapse to re-qualify for the recurring automatic payment policy term option. g. The renewal policy down payment will be assessed to the account information on file on the final day of existing policy unless notified in writing by the insured at least 10 days prior to the expiration of the policy. Policy Fees and Other Charges Policy Fees 1. Application Fees - An application fee will be charged with each new policy according to the schedule in the Rate Guide. Print Date: 9/6/2012-6 -
2. Renewal Fees - A renewal fee will be charged with each renewal policy term according to the schedule in the Rate Guide Billing / Service Fees 1. A service charge will be applied to each installment paid according to the schedule in the Rate Guide. 2. Early Payoff - If a policyholder pays off the premium and policy fees due early, then the service charge(s) for the remaining installments will not be charged Other Charges 1. Non-Sufficient Funds (NSF) Fees - If the Company receives a NSF check, a fee for the amount indicated in the Rate Guide will be charged. 2. Reinstatement Fees - A reinstatement fee for the amount indicated in the Rate Guide will be charged for 2 nd and subsequent reinstatements due to non-payment cancellations. 3. Financial Responsibility Filing Fees - All SR-22 / SR-26 policies will be charged a filing fee. Payments 1. Make payments to: (ENTER NAME AND PAYMENT ADDRESS OF PROGRAM AD- MINISTRATOR). 2. If a bank does not honor the premium remittance, no coverage will be considered bound, and coverage will be considered null and void. 3. If the MVR discloses additional surcharge, the policy will be endorsed and premium will be adjusted to the correct premiums. If the additional premium due from the endorsement is not timely paid, the policy will be cancelled for non-payment of premiums. 4. If payment is not received by (ENTER NAME OF PROGRAM ADMINISTRATOR), on or before the effective date of termination stated on the termination notice, and a reinstatement is approved, the policy will be reinstated with a lapse of coverage. 5. Online payments will not be effective prior to the date and time entered into the system. If the online system is not available at the time the customer is present, DO NOT enter the payment into the system later. Processing payments in this manner is strictly prohibited. (ENTER NAME OF PROGRAM ADMINISTRATOR) relies on the date and time of a processed transaction to verify coverage. Instead, to process these payments, record the date and time of payment receipt as customary and the Producer is to call (ENTER NAME OF PROGRAM ADMINISTRATOR) to register the date and time of payment and then mail the payment to (ENTER NAME OF PROGRAM ADMINISTRATOR) for processing. Renewal Procedures 1. Recurring Automatic Payment Policy Terms a. A direct premium billing notice indicating the renewal policy term's down payment and installment amounts and payment schedule will be sent to the Insured and Print Date: 9/6/2012-7 -
the Producer at least thirty (30) days prior to the expiration of the policy. The payment amounts and schedule will include the appropriate fees. b. Unless informed in writing by the Insured at least ten (10) days prior to the expiration of the policy, the down payment amount will be automatically assessed to the account information on file and the policy will be renewed 2. All Other Policy Terms a. A direct premium billing notice will be sent to the Insured and the Producer at least fifteen (15) days prior to the expiration of the Policy. Each direct bill payment notice will include the appropriate fee. b. Payment must be received by (ENTER NAME OF PROGRAM ADMINISTRA- TOR) by the due date. There is no grace period. c. Payment options include: Endorsements i. Check or money order attached to the payment stub or submitted to the producer. ii. One (1) time credit or debit card, or EFT information, provided: 1. On the payment stub 2. Over the phone to a(n) (ENTER NAME OF PROGRAM ADMINIS- TRATOR) representative 3. At the Producer's office 4. Online (if available) iii. An Additional Fee may apply to credit card, debit card and EFT payments charged by a third party Direct Bill vendor. 1. All information required by the system must be completed relating to a specific endorsement to an existing policy, e.g., exclusion of driver(s),, vehicle inspection / modification form, adding, deleting, or changing cars, drivers, loss payee, name, address, marital status, etc. 2. Endorsement forms which must be completed and signed and, if applicable, ID cards, amended payment coupons, loss payee, payment receipts, etc., should be printed by the producer. Any forms which must be completed manually should be immediately mailed or faxed to (ENTER NAME OF PROGRAM ADMINISTRATOR) unless they have been digitally signed by the producer or applicant, as applicable. The SR-22 should be filed if necessary. All other forms are the Insured's copies. 3. All documents which cannot be attached to the policy file electronically supporting endorsement transactions, e.g., copies of registrations for adding cars, bill of sales, marriage certificates, etc., should be faxed.. 4. Online endorsements will not be effective prior to the date and time entered into the system. If the online system is not available at the time the customer is present, DO NOT enter the endorsement into the system later. Processing endorsements in this manner is strictly prohibited. (ENTER NAME OF PROGRAM ADMINISTRATOR) and its Company rely on the date and time of a processed transaction to verify coverage. Print Date: 9/6/2012-8 -
Notification The Company must be notified in writing of adding a car or changing a car within 10 days following the date of delivery of the car to be added or to be replaced. Until the Policy is officially endorsed or we are informed otherwise by the insured in writing, the changed or added vehicle will have liability coverages (BI and PD) only. Exclusion Of Driver A completed Exclusion of Named Driver form (515A exclusion form) must be signed and dated by the Insured. The exclusion is required on each person fourteen (14) years of age and older residing with the applicant, if not rated as a driver of the vehicle(s). Cancellations 1. No flat cancellation will be allowed after the inception date of a policy, without referral to (ENTER NAME OF PROGRAM ADMINISTRATOR). All cancellation requests must indicate the reason for cancellation. 2. The Named Insured or their producer may cancel a policy by supplying one of the following: a. a surrender of the original policy; b. a written request, signed by the insured, stating when thereafter the cancellation becomes effective; c. a signed "Lost Policy Release." The effective date of cancellation will not be earlier than the date the above information is received by (ENTER NAME OF PROGRAM ADMINISTRATOR). 3. The Company may cancel a policy on 10 days' notice for the following reasons: a. Within 60 days of the effective date for any reason b. For non-payment of premium c. If the insured submits a fraudulent claim d. If the insured's driver's license is suspended or revoked e. Under the Applicable Circumstances listed by the Texas Insurance Code Article. 4. If there is a Loss Payee on the policy, (ENTER NAME OF PROGRAM ADMINISTRA- TOR) will issue a direct Notice of Cancellation unless the Loss Payee releases our Company from liability by written statement or surrendering its Loss Payee's copy of the policy. Reinstatements 1. Policies may be reinstated, if approved, as follows: a. By payment of premium due if policy was cancelled for non-payment b. By submittal of requested information (valid Texas drivers license, signed exclusion form, etc.) with appropriate payment. Print Date: 9/6/2012-9 -
2. The effective date of reinstatement will be no earlier than 12:01 a.m. the date following the post office post-marked date if mailed or, if processed online, the time and date shown on the system generated Reinstatement Form 3. 2nd and subsequent reinstatements due to non-payment cancellations will be charged a fee as listed in the Rate Guide. 4. No reinstatements will be made after 30 days, unless required by law. A new policy would need to be issued subject to eligibility requirements along with all applicable fees. 5. Reinstatements made within 30 days must include a no known loss letter signed by the insured. Prior Approval, Prohibited and Excluded Risks Risks Requiring Prior Approval / Additional Documentation 1. Any person with a condition that may affect their ability to operate a motor vehicle must submit a physician statement signed by a licensed physician stating that he/she is capable of safely operating a motor vehicle. 2. Foreign exchange students or foreign business persons residing temporarily in this state. 3. All risks where rated operator has ten (10) or more penalty points. 4. Any vehicle more than twenty (20) years old. 6. Any driver without a valid U.S. Driver's License must provide one of the following: a. A valid United States of America Military I.D. b. A foreign or International Driver s License, Matricula Consular (MCAS - Consular Identification Card), a non-u.s. Photo Voter Registration Card. or passport from North, Central, or South America. Subject to 15% surcharge see Rating Guide. c. Similar forms of I.D. from other countries will NOT be accepted. d. An "Expired" Texas Driver's License due to no Social Security Number. Suspended or Revoked licenses are NOT acceptable. Prohibited Risks Applicable to all coverages 1. Liability: All model year vehicles older than thirty-five (35) years unless multi car policy; however, require prior approval. 2. Physical Damage: a. All model year vehicles older than twenty (20) years. 3. Vehicles with a cost new of over $35,000 or rated higher than: a. Symbol forty-one (41) for 2011 and later model years; or b. Symbol 20, if the 1990-2010 ISO Symbol Structure applies; or c. Symbol 16, if the pre-1990 ISO Symbol Structure applies. 4. The following vehicles are prohibited for all model years: Print Date: 9/6/2012-10 -
All Model Years Alfa-Romeo Spider Veloce Pontiac Firebird (VS, GT) BMW sports cars Porsche all models Chevrolet Camaro Z28, IROC Toyota Celica, MR2, Supra Chevrolet Corvette All models High performance type foreign sports cars Dodge Stealth All cars with aluminum or fiberglass bodies Ford Mustang GT, Mach 1, Cobra Any vehicle with an ISO symbol of H or 2, S or 3, P or 4 Hummers All high performance type sports cars Jaguar XJ8, XJR, XK8, XKR Police Interceptor/Performance Packages Lexus IS 300 & IS 300 sports cars All Supercharged and SS Models Mazda RX-7, MX-6, RX-8, Miata Mercedes all sports cars Mitsubishi Starion, Eclipse, CSR, 3000 GT Nissan Pulsar Nissan Z-series (e.g., 300ZX, 350 ZX) In most cases, the on-line system will prevent the user from issuing a policy or endorsement including these vehicles. However, if it is required, for some reason, to accept the vehicle temporarily, then a surcharge, as listed in the Rate Guide, is applicable to all Coverages and cars listed under "PROHIBITED RISKS". These policies will subsequently be set up for non-renewal unless the vehicle is removed from the policy. Special Equipment No equipment or item(s) listed below will be covered unless additional surcharge premium is paid as follows: 1. *Level 1 Surcharge on Developed Comprehensive and Collision Premiums according to the rate Guide: a. * 4 Wheel Drive b. Heated, E-Z Cool, HUD (heads-up display), rain sensor, non-standard windshields c. Tinted glass d. Special bumpers or running boards e. Pick-up bed covers, cap tops, tool boxes, liners and custom rails f. Headache Racks, roll bars, brush guards, bug shields and window visors 2. *Level 2 Surcharge on Developed Comprehensive and Collision Premiums according to the Rate Guide: a. ** All Convertibles b. All custom wheels including factory and after market aluminum, wire, magnesium and custom tires c. Custom paint, murals, decals or graphics d. Custom spoilers and front, rear and side custom body panels, and ground effects including side exhaust pipes / headers e. Non-standard radios, satellite tuners, CD players, MP3 players, DVD players, speakers, amplifiers, and other sound reproducing equipment; BUT limited to $1,500 maximum value Print Date: 9/6/2012-11 -
Exclusions f. Special carpeting, seating (including seat warmers and coolers) and upholstery and furniture, which costs when new, in excess of $500; BUT, limited to $1,500 maximum value g. Special edition models (including, but not limited to, Harley Davidson, King Ranch, Eddie Bauer, Denali, etc.) h. "Special Packages" whose suggested retail price, when new, is $500 or more i. GPS/Navigation Systems * Maximum surcharge applicable to any vehicle is the Level 2 Surcharge, regardless of how many Equipment / Accessory items indicated. ** SURCHARGE CANNOT BE REJECTED 1. Vehicles making regular and frequent trips beyond a fifty (50) mile radius. 2. Trucks hauling gasoline, fuel oil, liquefied petroleum, gas or explosives. 3. Taxicabs and public and private livery cars. 4. Ambulances, police, fire department, or any emergency vehicles 5. Mail and / or newspapers, collections or delivery vehicles. 6. All vehicles identified in the Prohibited Risks. 7. All vehicles used for business or Commercial purposes. 8. Driver training cars or racing vehicles. 9. Vehicles more than thirty-five (35) years old, except as 2nd or 3rd car on a single policy; however, requires prior approval. 10. Vehicles garaged away from the residence a substantial part of the time. 11. Unlicensed drivers (except those regaining licenses under an SR-22 filing or possessing an approved foreign or International Driver s License or Matricula Consular - MCAS - Consular Identification Card) 12. Drivers with 3 or more moving violations. 13. Pick-ups or vans with a load capacity over 3/4 ton. 14. Flatbed trucks or any vehicle equipped with a power / manual winch or fifth-wheel conversions. 15. Gray Market Vehicles. 16. Drivers under age eighteen (18) as a Named Insured. 17. Operators seventy (70) years of age or older, for new business, without a recent affirmative physicians statement. 18. * Drivers with a Driving Under the Influence of Alcohol (DUIA), Driving Under the Influence of Drugs (DUD), or a Driver Under the Influence of Narcotics (DUIN). 19. Vehicles used for transporting school children, migrant workers, hotel / motel guests, or church parishioners. Print Date: 9/6/2012-12 -
20. Vehicles registered or titled in a company name. 21. Altered vehicles (hot rods), vehicles equipped or enhanced with nitro methane or other accelerant, dune buggies, motorcycles, scooters, motor homes or kit cars. 22. Vehicles manufactured overseas that are not built to U.S. pollution and safety requirements. 23. Entertainers, celebrities and / or professional athletes. 24. Students attending school outside of the state of Texas. 25. Drivers charged with a felony hit and run in the last thirty-six (36) months. 26. * Drivers charged with 2 or more at-fault accidents in the last thirty-six (36) months. A surcharge, as listed in the Rate Guide, is applicable to all coverages and all cars listed under "Exclusions" when added to an in-force policy or a new policy that, upon reexamination, is determined to be in this class. * If, due to statute, rule or regulation, we are required to add a driver subject to an asterisked classification to an in-force policy, the policy must be non-renewed at anniversary. Financial Responsibility Filings 1. The producer, on behalf of (ENTER NAME OF PROGRAM ADMINISTRATOR), will file the SR-22 with the appropriate fee. 2. The person requiring the filing must be the Named Insured on the policy. 3. the minimum policy term for an SR-22 filing is six (6) months and the policy must be paid in full. 4. A fee, as listed in the Rate Guide, will be charged on all policies issued with an SR-22. 5. (ENTER NAME OF PROGRAM ADMINISTRATOR) will file SR26s at expiration or cancellation. Claim Guide The Company desires to provide prompt and fair claims service. To do this, the following procedures must be followed: 1. In the event of an accident, no matter how minor, the Insured must notify (ENTER NAME OF PROGRAM ADMINISTRATOR) immediately. Report all claims to: (ENTER NAME AND ADDRESS OF PROGRAM ADMINISTRATOR) 2. No repairs or replacements are authorized without Company approval. To do so is a violation of the policy and could result in a denial of the claim. Print Date: 9/6/2012-13 -
Coverage Rules Rules For Liability Coverage 1. All liability limits must be the same on all vehicles insured on a multi-car policy. 2. Liability coverage, while driving a non-owned automobile, applies only to Covered Persons as defined in the policy. 3. Available limits for Liability Coverage (Bodily Injury / Property Damage) are as follows: Coverage Per Person Per Accident Bodily Injury (BI) 30,000 60,000 Property Damage (PD) 25,000 Rules For Physical Damage Coverage 1. Available deductibles: $100, $250, $500, $1000. 2. Comprehensive and Collision must be written together. 3. CB Radios and non-factory communication equipment are Not Written. 4. Minimum $500 deductible for comprehensive and collision on all vehicles subject to Special Equipment Level 2 surcharge per the Rate Guide. 5. Coverage is not available for vehicle(s) older than twenty (20) years. 6. No physical damage coverage written without liability coverage. 7. No vehicles with a cost new of over $35,000 or rated higher than: a. Symbol forty-one (41) for 2011 and later model years; or b. Symbol 20, if the 1990-2010 ISO Symbol Structure applies; or c. Symbol 16, if the pre-1990 ISO Symbol Structure applies. 8. Symbol & Age group: refer to the ISO Manual; the Vehicle Series Rating Symbols (generally 1st column) are used. Every October 1st, the age of the vehicle moves up by one (1) year Rules For Other Coverages 1. Included Coverage - Uninsured Motorist (UM) (unless rejected in writing) a. The Insured will be charged for Uninsured Motorist coverages until the properly signed rejections are received. Rejection of coverage(s) cannot be effective before the post office postmark date. A new UM rejection is required when a vehicle is added to an existing policy or a coverage is added to a vehicle already on the policy. b. No Uninsured Motorist Coverage is written without Bodily Injury (BI) and Property Damage (PD). c. Unless the Insured signs the rejection on the Application, Uninsured Motorist Coverage will be issued at limits equal to the limits of liability. Print Date: 9/6/2012-14 -
d. Uninsured Motorist Bodily Injury (UMBI) may be selected separately from Uninsured Motorist Property Damage (UMPD). e. When selecting Uninsured Motorist Property Damage (UMPD) without Collision (COLL) coverage, a surcharge, as listed in the Rate Guide, will apply. f. Liability coverage, while driving a non-owned automobile, applies only to Covered Persons as defined in the Policy. g. Limits: Coverage Per Person Per Accident Bodily Injury (UMBI) 30,000 60,000 Property Damage (UMPD) 25,000 2. Optional Coverage - Medical Payments (Med Pay) Limit - $500 per person 3. Included Coverage - Personal Injury Protection (PIP) (unless rejected in writing) a. The Insured will be charged for Personal Injury Protection coverages until the properly signed rejections are received. b. Rejection of coverage(s) cannot be effective before the post office postmark date. c. A new PIP rejection is needed when a vehicle is added to an existing policy or a coverage is added to a vehicle already on the policy. d. Limit - $2,500 per person 4. Optional Coverage - Towing & Labor Cost a. No Towing Coverage will be afforded on vehicles more than 5 years old on new applications b. Vehicle must have physical damage coverage. c. Limit Per Disablement (Two Options) - $50 or $75 5. Optional Coverage - Rental Reimbursement Rating a. Covered vehicle must have physical damage coverage to be eligible for rental reimbursement. b. Limits (Two Options): $20 per day / $600 per loss; or $40 per day / $1,200 per loss Rating Discounts The following discounts are available, applying only to the coverages indicated, according to the schedules listed in the Rate Guide: 1. Paid in Full Discount Applies to all coverages on a policy with a six (6) month paid in full policy term, but is excluded from the maximum discount calculation. 2. Multi-car Discount Print Date: 9/6/2012-15 -
Applies to all common coverages of bodily injury (BI), property damage (PD), comprehensive (COMP) and collision (COLL) if two or more vehicles are registered to the Named Insured, covered on the same policy 3. Renewal Merit Driver Discount Applies incrementally to bodily injury (BI), property damage (PD), comprehensive (COMP) and collision (COLL) coverages at 6 months, 12 months and 24 months, provided: a. Named Insured and all drivers have had no claims, accidents, suspensions, revocations of their driver's license, tickets or violations in the preceding twelve (12) month period. b. If the Policy is disqualified for the renewal credit, the Named Insured and all listed drivers on the policy must be claim, accident, suspension, revocation, ticket and violation free for twelve (12) consecutive months to re-qualify. 4. Good Student Discount Applies incrementally to a 3.0 (B) average and better or a 3.5 average and better on a 4.0 scale to bodily injury (BI), property damage (PD), comprehensive (COMP) and collision (COLL) if: a. A full time student at an accredited academic institution of higher learning; and b. Proof is submitted of the academic achievement record for the preceding academic semester or quarter. and; c. On the "Dean's List" or "Honor Roll" or the driver submits proof of an academic achievement record for the preceding academic semester or quarter or comparable segment which indicates the driver ranks scholastically in the upper 20% of their class or has at least a "B" average d. Under the age of twenty-three (23) but sixteen (16) or older. 5. Safe Vehicle Discount Applies only to comprehensive (COMP) and collision (COLL) coverages if the vehicles qualify and a properly completed form, together with two (2) clear color photos of the vehicle(s) are submitted with the application or endorsement. a. Producer must inspect the vehicle(s), complete a Vehicle Inspection Form for each vehicle, and submit two (2) clear color photos for each vehicle with the application or endorsement. b. If physical damage and UMPD coverages are to be added by endorsement, the online system should be used to process the endorsement, if possible or an Endorsement Request Form together with the completed Vehicle Inspection Form and two (2) clear color photos submitted. c. If, after completing the inspection, the producer determines the vehicle(s) do not qualify for the discount, the reason should be stated on the Vehicle Inspection Form and the discount will not be applied. d. If the Vehicle Inspection Form is not submitted within ten days of policy inception, the Safe Vehicle Discount will be removed. Print Date: 9/6/2012-16 -
6. Transfer Discount Applies incrementally to bodily injury (BI), property damage (PD), comprehensive (COMP) and collision (COLL) coverages for the first six months, second six months, and second year, provided: a. The renewals are transferred from any other Company and underwritten by (ENTER NAME OF PROGRAM ADMINISTRATOR). b. A transfer discount will be applied if a copy of the expiring policy is attached to the application and submitted within 15 days of the expiration date of the expiring policy. c. Once the policy has been issued, no transfer discount will be allowed. d. The discount applies provided there are no accidents, major violations, or cumulative minor violations resulting in 3 points or more during the 12 months preceding the effective date of the policy. e. Level 1: First six months; Level 2: Second six months; Level 3: Second year. 7. Maximum Discount Maximum discounts, as listed in the Rate Guide, apply to both liability (BI and PD) and physical damage (COMP and COLL) coverages. Other Rating Surcharges A surcharge, according to the Rate Guide, will be applied to Coverage(s) as indicated in the following circumstances: 1. Mileage Surcharge Will be applied to bodily injury (BI), property damage (PD), comprehensive (COMP) and collision (COLL) coverages per vehicle driven twenty (20) miles or more, one way to work. Special Rating 1. For those drivers providing acceptable United States of America Military I.D., no additional points or surcharges will apply. 2. For those drivers providing acceptable I.D. as noted in Section Risks Requiring Prior Approval, a non-u.s. driver s license surcharge of 15% will apply. Driver Classification Driver Age Male Female Single Married Single Married 16-17 S01 M01 F01 W01 18 S02 M02 F02 W02 19-21 S03 M03 F03 W03 22-23 S04 M04 F04 W04 24-25 S05 M05 F05 W05 26-29 S06 M06 F06 W06 30-33 S07 M07 F07 W07 34-36 S08 M08 F08 W08 37-40 S09 M09 F09 W09 41-43 S10 M10 F10 W10 Print Date: 9/6/2012-17 -
Driver Age Male Female 44-50 S11 M11 F11 W11 51-53 S12 M12 F12 W12 54-60 S13 M13 F13 W13 61-65 S14 M14 F14 W14 66-69 S15 M15 F15 W15 70+ S16 M16 F16 W16 1. The highest rated driver will be assigned to the highest rated vehicle, the second highest rated driver to the second highest rated vehicle, etc. The highest rated driver is the operator whose age, sex, marital status and points develop the highest premium. 2. If there are more vehicles than drivers, each additional vehicle will be rated to the lowest rated driver's age, sex and marital status at zero points. 3. No driver fifteen (15) years of age or under is acceptable and each requires a signed Exclusion Form. 4. Married means Named Insured, whether primary or occasional driver, and spouse must reside in the same household. Married persons not living with his / her spouse rate as a single person. Common-law marriage rates as a married person. An operator who is living with a spouse is classified as married. 5. Age refers to the age attained on the driver's last birthday before inception of policy. If a driver has a birth date within (30) days after policy inception, the higher age will be used for rating purposes. Motor Vehicle Records (MVRs) a. The company will order MVR s at random in order to ensure accurate rating. There are a number of benefits for the producer to order MVRs prior to policy issuance, e.g., i. MVR point(s) will be automatically assigned and incorporated in the online rating system. ii. When questions arise, we can review the MVR together,. iii. Accurate rating at the time of issuance will avoid cancellations. 2. Assignment of Driving Violations Through The Online System: a. For each driver, the applicable violation and / or accident description should be selected from the list. Use the conviction date for the purposes of assigning violations. b. The only violations to be used are those occurring during the past thirty-six (36) months ending three (3) months immediately preceding the effective date of the application for a new policy, the effective date of the endorsement to add a driver or the anniversary date for a renewal policy. c. If a single occurrence results in more than one CONVICTION, the applicant will only be charged for the CONVICTION with the highest point value. Print Date: 9/6/2012-18 -
d. If an AT-FAULT ACCIDENT and a CONVICTION results from the same occurrence, the applicant will be charged for the accident only. EXCEPTION: If an AT- FAULT ACCIDENT occurs in connection with a DWI or DUI conviction, BOTH the accident and the conviction will be charged. e. The system will automatically calculate the points for each driver. f. All accidents shall be considered chargeable unless proof is furnished that the applicant was not at-fault. Insured single vehicle accidents will be considered atfault. Proof shall be established by a police report or written statement from the other party's insurer or the applicant's previous insurer demonstrating that the: i. Accident resulted in less than $1000 of TOTAL Property Damage; or ii. Accident involved only the coverages of Medical Payments or Personal Injury Protection; or Vehicle was legally parked; or iii. Vehicle was unattended; or iv. Reason for recovery was prevented solely due to Governmental Immunity; or v. Vehicle was struck in the rear while legally stopped for a traffic control device; or vi. Other party involved in the accident was charged with a moving violation and the applicant was not charged with a moving violation; or vii. Vehicle collided with a bird or animal; or viii. Accident involved a hit-and-run driver and was reported to proper authorities within twenty-four (24) hours; or ix. Accident involved flying gravel or falling missiles; or x. Accident was on premises owned or leased by the applicant; or xi. Accident is one in which a judgment or reimbursement is obtained from the other party, providing the company makes no liability payment on behalf of the Insured; or xii. Insured Driver was clearly not at-fault. Print Date: 9/6/2012-19 -
Driver Point Schedule Points Cause First Ea. Add l. At-Fault Accidents (At Least $1,000 Property Damage) Not 1 Previous 36 Months (Ending 3 Months Prior To Inception Date) Eligible* Major Convictions DUIA, DUID, DUIN Driving Under the Influence of Alcohol, Drugs or Narcotics Not Eligible Major Convictions Felony Hit and Run (Previous 36 Months) Not Eligible Major Convictions All Other Involuntary Manslaughter 3 3 All Other Convictions Driving While License is Suspended Driving without a Valid Driver's License in effect (see below for non-u.s. license) Other Point Charges See Special Rating Unverifiable Driving Record (unless non-u.s. driver s license surcharge applied). A surcharge of four (4) points will be assessed on any driver whose driving record (MVR) cannot be verified by the Motor vehicle Department of any state (not including drivers under the age of 19) We will also order MVRs from any Canadian Province. The points will be removed if (ENTER NAME OF PROGRAM ADMINISTRATOR) receives an Exclusion of Named driver endorsement or a valid MVR in English (covering the complete chargeable period) within 30 days of policy inception or if the applicant can produce a photocopy of a valid Texas driver s license issued to the applicant. Non-chargeable Violations* Headlight/Tail-Light Violations Improper or No Tag Defective Muffler or Horn Unnecessary Noise Improper Parking Negligent Collision Ticket (only when shown in conjunction with an accident) 2 4 N/A 2 4 N/A Once a Policy is issued, all AT-FAULT ACCIDENTS involving the Named Insured, spouse or other family member who is a resident of the household and any other permissive user, will be chargeable. * A surcharge, as listed in the Rate Guide, is applicable to all coverages and all cars when added to an in-force policy or a new policy that, upon reexamination, is determined to be in this class. Print Date: 9/6/2012-20 -