INDEX General Instructions... MH-1 Basic Coverages and Limit of Liability... MH-1 Description of Coverage... MH-1 Deductible... MH-1 Application... MH-2 Binders... MH-2 Replacement Value Coverage C (H109)... MH-2 Optional Coverages and Increased Limits... MH-2-3 Liability Coverage... MH-3 Term and Payment of Premium... MH-3 Cancellation of Insurance... MH-3 Rating Methodology... MH-4 Manufactured Home Credits and Relativities... MH-5 Manufactured Home Coverage A Relativities... MH-6 Insurance Score... MH-7 Package Credit... MH-7 Protective Devices Credit... MH-7 Renewal (Persistency) Credit... MH-7 Tie Down Credit... MH-7-8 Special Credit... MH-8 Additional Coverages and Increased Limits... MH-8-9 Additional Liability Coverages and Increased Limits... MH-10-12 May 2005 Idaho Index-I
The Oregon Mutual Manufactured Home policy is designed to provide coverage for newer, excellent quality, owneroccupied manufactured homes. Careful selection of risks and emphasis on insurance to value are vitally important so that competitive pricing can be maintained for our mutual policyholders. GENERAL INSTRUCTIONS The general rules, rates and premiums contained in this manual govern the writing of the Manufactured Homeowner policy. The premium pages contain the basic premiums, rate charges and any applicable exceptions to the general rules. Credit for existing insurance is not allowed. Refer to the Property Underwriting Guidelines for eligibility requirements. For a listing of contract forms, refer to the Policy Service Section in the regular homeowner manual pages. BASIC COVERAGES AND LIMIT OF LIABILITY Coverage A Manufactured Home Minimum per premium page, MH-6 Coverage B Related Private Structures 10% of Coverage A Coverage C Unscheduled Personal Property 80% of Coverage A Coverage D Additional Living Expense 20% of Coverage A (Forms 1 and 3) Coverage L Comprehensive Personal Liability $100,000 each occurrence Coverage M Medical Payments to Others $1,000 each person $25,000 each accident Damage to Property of Others $1,000 each occurrence DESCRIPTION OF COVERAGE The Manufactured Homeowner Program was patterned as a module to our present regular Homeowner Policy. Items that pertain only to Manufactured Homes are included in this section. Refer to the homeowner contract for a complete description of loss settlement provisions. DEDUCTIBLE All Manufactured Homeowner forms contain a $500 (non-disappearing) loss Deductible Clause applicable to each loss under the policy, except loss under Coverage D Additional Living Expense, Fire Department Service Charge or Credit Card Liability and Depositors Forgery Coverage. To decrease or increase the deductible from the basic $500 deductible rate refer to the rate table, page MH-5: $250 Deductible - 116% of $500 basic premium deductible rate $1,000 Deductible - 15% credit $2,500 Deductible - 28% credit $5,000 Deductible - 40% credit Refer to rating methodology page MH-4 for the order of calculation. January 2006 Idaho MH-1
APPLICATION The Manufactured/Mobile Homeowner Acord application (ACORD-85) is designed to provide the necessary information for rating and policy issuance and must be completed in detail for all coverages desired. BINDERS Temporary binders must include year built and condition. The risk must meet Company eligibility requirements. The binder period may not exceed 30 days. REPLACEMENT VALUE COVERAGE C (H109) Replacement Value Coverage C is automatically included (in the base fire rate) for all homeowner polices and cannot be deleted. OPTIONAL COVERAGES AND INCREASED LIMITS Property Coverages 1. Coverage B Related Private Structures An additional amount of insurance may be written on a specific related private structure under Coverage B at the additional premium shown in the premium section of this manual. Attach H048 Related Private Structures. 2. Coverage C Unscheduled Personal Property This coverage may be increased in increments not less than $2,500 in accordance with the premium shown in the premium section of this manual. This coverage may not be decreased. 3. Additional Living Expense This coverage may be increased. The premiums are shown in the premium section of this manual. 4. Earthquake and Volcanic Eruption The policy may be extended to provide earthquake and volcanic eruption coverage at the additional premium shown in the premium section of this manual. Attach H057 - Earthquake and Volcanic Eruption. Earthquake coverage is not available for manufactured homes that are not bolted to a permanent foundation. 5. Glass Breakage of residence glass is covered, subject to the policy conditions and the deductible. The deductible may be reduced to $25 for the additional premium shown in the premium section. Glass Breakage - $25 Deductible - H135. 6. Money, Securities, and Jewelry These coverages may be increased at the premium shown in the premium section of this manual. Maximum Additional Coverage for money and securities is $500. Maximum additional amount for jewelry is $4,000. Increased Limits on Money, Securities, and Jewelry H265 MH-2 Idaho December 2004
OPTIONAL COVERAGES AND INCREASED LIMITS (Cont.) Property Coverages (Cont.) 7. Jewelry, Furs, and Watches The policy provides named perils coverage with a $2,500/$1,500 per item limit for loss by theft. Additional coverage may be provided by scheduling. 8. Secondary Residence Premises Liability This may be insured under the same policy as the primary dwelling, as an additional item, in accordance with the eligibility rules and the premium section of this manual. 9. Scheduled Personal Property Refer to the regular Homeowner Policy Program section of this manual for the description of coverage and eligibility. Scheduled Personal Property Endorsement H061 10. Miscellaneous Scheduled Property Refer to the regular Homeowner Policy section of this manual for the description of coverage and eligibility. Miscellaneous Scheduled Property H062, Computer Endorsement H059 Because of the broad coverage of most scheduled property forms, moral hazard is a most important underwriting consideration. For this reason, you should be personally acquainted with and ready to give your unqualified recommendation of the insured before binding the company. 11. Watercraft Coverage See liability section for watercraft liability premiums. Refer to the regular Homeowner Policy section of this manual for physical damage premiums, underwriting, and available coverage. LIABILITY COVERAGE Liability Coverage is described in the regular Homeowner Policy section of this manual. Please refer to that section for a description of coverages. TERM AND PAYMENT OF PREMIUM Premiums are stated for a term of one year. The Manufactured Homeowner is a continuous policy and will be continued in force by the payment of the required premium for each successive policy term, subject to the premiums, rules and forms then in effect. For available payment options, refer to the Oregon Mutual Group Billing Guide Section. CANCELLATION OF INSURANCE If insurance is cancelled or reduced at the request of the Company, or in the event of foreclosure of the mortgage on the insured real property, the earned premium shall be computed on a pro rata basis. If insurance is cancelled at the request of the Insured, the earned premium shall be computed on a pro rate basis using the standard pro rate calculations. December 2004 Idaho MH-3
RATING METHODOLOGY Forms-1 and 3 Manufactured/Mobile Home Rate Method Refer to the statewide rate pages to determine the base rate and relativities for: form type, Coverage- A, deductible, protection class, score, in/out of city, comprehensive personal liability credit, and glass breakage deductible. 1. Get the base statewide rate and multiply by the Form type relativity and round to the nearest five decimals. 2. Multiply the premium in step 1 by the Coverage A relativity and round to the nearest five decimals. 3. Multiply the premium in step 2 by the deductible relativity and round to the nearest five decimals. 4. Multiply the premium in step 3 by the protection status relativity and round to the nearest five decimals. 5. Multiply the premium in step 4 by the score relativity and round to the nearest five decimals. 6. Multiply the premium in step 5 by the In/Out of City relativity and round to the nearest five decimals. (If the manufactured home is located within the city limits it qualifies for In City rates. If the manufactured home is not located within the city limits the rating category is Out of City.) 7. If the manufactured home is a secondary residence, multiply the premium in step 6 by the comprehensive personal liability credit relativity, and round to the nearest five decimals. 8. If the glass breakage reduced deductible is requested, multiply the premium in step 7 by the glass breakage deductible relativity. 9. Round the premium from steps 1 through 8 to the nearest dollar. Stop here and store the premium (to be used to calculate all appropriate credit amounts). Multiply credits in the following order when applicable, rounding to the nearest five decimals with each multiplication: a. Multiply the previously calculated premium by the persistency relativity, if applicable, and round to the nearest five decimals. b. Multiply the previously calculated premium by the protective device relativity, if applicable, and round to the nearest five decimals. c. Multiply the previously calculated premium by the package credit, if applicable, and round to the nearest five decimals. d. Multiply the previously calculated premium by the age of home credit or adjustment, if applicable, and round to the nearest five decimals. e. Multiply the previously calculated premium by the Special Credit relativity, if applicable, and round to the nearest five decimals. f. Multiply the previously calculated premium by the Tie down credit relativity, if applicable. 10. Round the premium from steps 9a through 9f to the nearest dollar. Subtract this rounded premium from the stored amount in step 9, above, to get the total credit amount for the policy. 11. Add to step 10 all other optional coverages and their premiums (not specifically addressed in the rating method listed above) and total for the final premium. MH-4 Idaho September 2008
MANUFACTURED HOME CREDITS AND RELATIVITIES Eligibility guidelines for both Form 1 and Form 3 manufactured home policies are located within our Personal Lines Property Underwriting Guidelines. To calculate Form 1 rates, refer to manufactured home rating methodology explanation on page MH-4. Contact underwriting prior to binding Form 1 coverage. Manufactured Home Manufactured Home Manufactured Home Statewide Base Rate Form Relativities In/Out of City Relativities Base Rate $390.00 Form 1 0.900 In City 1.000 Form 3 1.000 Out of City 1.460 Manufactured Home Manufactured Home Manufactured Home Deductible Relativities Protection Relativities CPL Credit Relativities 250 1.16 Protected 1.000 Secondary Credit 0.90 500 (Base) 1.00 Partially Prot. 1.430 No Credit 1.00 1,000 0.85 *Unprotected 2.070 2,500 0.72 *Existing business only 5,000 0.60 Manufactured Home Glass Breakage $25 Ded. Policy Ded. Relativity Mfg Home Insurance Score Manufactured Home 250 1.050 Level Factor Protective Device Factor 500 1.075 14 0.750 Local Burglary 0.95 1,000 1.085 13 0.750 Control Station 0.95 2,500 1.160 12 1.000 Central Station 0.90 5,000 1.250 11 0.970 10 0.950 9 0.880 Manufactured Home 8 0.815 Persistency Relativities 7 0.770 Consecutive Yrs. Relativity 6 0.705 0-3 years 1.00 5 0.630 4 years 0.98 4 0.585 5 years 0.96 3 0.570 6 years 0.94 2 0.535 7 years 0.92 1 0.500 8 or more years 0.90 Manufactured Home Manufactured Home Package Factor Tie Down Factor Package 0.85 Over the Top 0.950 Frame & Over the Top 0.900 Mfg Home Special Credit Insured Age 55 and Over Value $60,000 & Over 0.95 Manufactured Home Age of Home Factor Age of Home Factor 0 0.75 5 1.00 1 0.80 6 1.05 2 0.85 7 1.10 3 0.90 8 and older 1.15 4 0.95 September 2008 Idaho MH-5
MANUFACTURED HOME POLICY MANUFACTURED HOME COVERAGE A RELATIVITIES Coverage A Coverage A Coverage A Coverage A Amount Factor Amount Factor Amount Factor Amount Factor 40,000 0.620 84,000 0.871 128,000 1.298 172,000 1.782 41,000 0.624 85,000 0.879 129,000 1.309 173,000 1.793 42,000 0.628 86,000 0.887 130,000 1.320 174,000 1.804 43,000 0.632 87,000 0.895 131,000 1.331 175,000 1.815 44,000 0.636 88,000 0.903 132,000 1.342 176,000 1.826 45,000 0.640 89,000 0.911 133,000 1.353 177,000 1.837 46,000 0.644 90,000 0.919 134,000 1.364 178,000 1.848 47,000 0.648 91,000 0.927 135,000 1.375 179,000 1.859 48,000 0.652 92,000 0.935 136,000 1.386 180,000 1.870 49,000 0.656 93,000 0.943 137,000 1.397 181,000 1.881 50,000 0.660 94,000 0.951 138,000 1.408 182,000 1.892 51,000 0.665 95,000 0.959 139,000 1.419 183,000 1.903 52,000 0.671 96,000 0.967 140,000 1.430 184,000 1.914 53,000 0.677 97,000 0.975 141,000 1.441 185,000 1.925 54,000 0.683 98,000 0.983 142,000 1.452 186,000 1.936 55,000 0.689 99,000 0.991 143,000 1.463 187,000 1.947 56,000 0.695 100,000 1.000 144,000 1.474 188,000 1.958 57,000 0.701 101,000 1.010 145,000 1.485 189,000 1.969 58,000 0.707 102,000 1.020 146,000 1.496 190,000 1.980 59,000 0.713 103,000 1.030 147,000 1.507 191,000 1.991 60,000 0.719 104,000 1.040 148,000 1.518 192,000 2.002 61,000 0.725 105,000 1.050 149,000 1.529 193,000 2.013 62,000 0.731 106,000 1.060 150,000 1.540 194,000 2.024 63,000 0.737 107,000 1.070 151,000 1.551 195,000 2.035 64,000 0.743 108,000 1.080 152,000 1.562 196,000 2.046 65,000 0.749 109,000 1.090 153,000 1.573 197,000 2.057 66,000 0.755 110,000 1.101 154,000 1.584 198,000 2.068 67,000 0.761 111,000 1.111 155,000 1.595 199,000 2.079 68,000 0.767 112,000 1.122 156,000 1.606 200,000 2.090 69,000 0.773 113,000 1.133 157,000 1.617 70,000 0.779 114,000 1.144 158,000 1.628 71,000 0.785 115,000 1.155 159,000 1.639 72,000 0.791 116,000 1.166 160,000 1.650 73,000 0.797 117,000 1.177 161,000 1.661 74,000 0.803 118,000 1.188 162,000 1.672 75,000 0.809 119,000 1.199 163,000 1.683 76,000 0.815 120,000 1.210 164,000 1.694 77,000 0.821 121,000 1.221 165,000 1.705 78,000 0.827 122,000 1.232 166,000 1.716 79,000 0.833 123,000 1.243 167,000 1.727 80,000 0.839 124,000 1.254 168,000 1.738 81,000 0.847 125,000 1.265 169,000 1.749 82,000 0.855 126,000 1.276 170,000 1.760 For each additional 83,000 0.863 127,000 1.287 171,000 1.771 $1,000 add 0.011 For Coverage A values over $150,000 contact underwriting prior to binding coverage. To rate policies above $200,000 multiply the number of incremental thousands above $200,000 by 0.011 and add the sum to the $200,000 Coverage A factor of 2.090 to obtain total factor. MH-6 Idaho December 2004
INSURANCE SCORE Policy premiums will include an adjustment for insurance score, based on the Fair-Isaac Assist 2.0 Homeowners 3/5 model-0802. There is no insurance score adjustment for miscellaneous optional coverages such as earthquake coverage, refrigerated food products, and scheduled personal property. The policyholder may request a new score in advance of the renewal if the current score was ordered no less than a year prior to the renewal date. The renewal premium will be adjusted accordingly to reflect the new score. If a consumer is charged higher premiums due to a disputed credit history that is later resolved, and the company is advised in writing of the resolution, the policy will be re-rated retroactive to the effective date of the current policy term. The consumer shall be charged the same premiums they would have been charged if accurate credit history was used to calculate an insurance score. The insurance score factors are found on page MH-5 and the rating methodology on page MH-4. PACKAGE CREDIT A Package Credit is available for insureds who also write their automobile coverage with Oregon Mutual Insurance Company or Western Protectors Insurance Company. In order to process the Package Credit we require the supporting auto policy number to be listed on the manufactured homeowner new business or change application(s). The auto policy must be in force to qualify for this credit and for retention of the credit at renewal. The credit amount will be listed on the Declaration page as included when applicable. See page MH-5 for factors. PROTECTIVE DEVICES CREDIT The following premium credits may be allowed for the installation of burglary and/or fire alarm system in the residence: 1. For an approved and properly maintained Central Station Burglary and/or Fire Alarm System a credit of 10%. 2. For an approved and properly maintained alarm system that alerts the fire department or police department (Control Station) a credit of 5%. 3. For an approved and properly maintained local burglary alarm system, provided that the alarm system gong is located on the outside of the building a credit of 5%. See page MH-5 for factors. RENEWAL (PERSISTENCY) CREDIT A premium adjustment will be applied automatically, based on the number of consecutive years insured with the Oregon Mutual Insurance Group. The factors are on page MH-5. TIE DOWN CREDIT To qualify for the Over-the-Top Tie Down Credit, the tie down should consist of steel straps that wrap over the top of the unit, either over or underneath the siding. The steel straps are to be placed no more than ten feet apart and secured into a solid concrete foundation or to screw augers that are turned into the soil a minimum of four feet. January 2006 Idaho MH-7
TIE DOWN CREDIT (Cont.) To qualify for the Frame and Over-the-Top Tie Down Credit, the tie down must meet the requirement of the Over-the-Top Credit, above; plus have a frame or chassis tie down. See page MH-5 for the Tie Down factors. SPECIAL CREDIT This credit applies to the Coverage A rate for an insured who is 55 years or older and whose manufactured home is valued at $60,000 or more providing it is the primary residence. Refer to page MH-5 for factor. ADDITIONAL COVERAGES AND INCREASED LIMITS A. Extended Theft Included in Basic Premium. B. Credit Card Liability and Depositors Forgery Coverage ($1,000) Included in Basic Premium. This coverage cannot be increased. C. Fire Department Service Charge $2,000 limit included in basic premium. D. Personal Injury Liability Included in basic premium. E. Coverage B - Related Private Structures An additional amount of insurance may be written on a specific related private structure. 1. Increase - $1.80 per $1,000. 2. If rented to others - $2.70 per $1,000. 3. Incidental Farming Related Private Farm Structure (H049) - The policy may only be endorsed to provide coverage for related private farm structures if it first has and retains our Incidental Farming Liability Coverage H029 endorsement. This requirement is necessary due to policy language and elimination of exclusions referencing incidental farming and/or business exposures. Photographs and diagrams are required for all farm related structures. Existing renewals only. Increase - $5.00 per $1,000. F. Coverage C - Unscheduled Personal Property Minimum increase in Coverage C is $2,500. With replacement value coverage an increase in coverage C is figured from 80% of the Coverage A limit. On Premises - Increase $2.00 per $1,000 Away From Premises: 1. First $1,000 $12.00 2. Each additional $1,000 $ 9.00 Note: $9.00 minimum earned premium for this endorsement when cancelled separately. G. Coverage D - Additional Living Expense To increase coverage, charge $1.80 per $1,000 H. Replacement Value - Coverage C 1. Coverage C must be at least 80% of Coverage A - no decrease in Coverage C is allowed. 2. The Replacement Cost Contents Coverage premium is included in the base fire rate and cannot be deleted. MH-8 Idaho December 2004
ADDITIONAL COVERAGES AND INCREASED LIMITS (Cont.) I. Earthquake And Volcanic Eruption (10% Base Deductible) Refer to the regular Homeowner Policy Zip Code Territory pages to determine the applicable earthquake rating territory. Table 1 Rate per $1,000 of Coverage Territory Coverage A Coverage B Coverage C Coverage D 1 0.63 1.15 0.85 1.15 The following Table 2 or 3 multipliers are to be applied to the rates in Table 1 10 % BASE DEDUCTIBLE 15% OPTIONAL DEDUCTIBLE Table 2 Age Multipliers Table 3 Age Multipliers Year of Construction Manufactured Home Year of Construction Manufactured Home Pre 1936 0.772 Pre 1936 0.512 1936 1972 0.643 1936 1972 0.435 Post 1972 0.524 Post 1972 0.364 * Earthquake retrofitted structures will be rated as post 1972. J. Glass Breakage - $25.00 Deductible Forms 1 and 3 (See page MH-5 for factors.) K. Money, Securities and Jewelry (H265) Money (up to an additional $500) Securities (up to an additional $500) Jewelry (up to an additional $4,000) L. Silverware Increased limit to $10,000 - $18.00 M. Refrigerated Food Products $500 Limit of Coverage - $10.00 $5.00 / $100 of coverage $4.00 / $100 of coverage $0.70 / $100 of coverage N. Homeowners Association Loss Assessment (H050) (Excluding Earthquake and Volcanic Eruption) When the policy is extended to cover loss assessment for which an insured may be liable, charge $1.00 per $1,000 of coverage ($5,000 minimum limit). O. Homeowners Association Loss Assessment With Earthquake and Volcanic Eruption (H053) This coverage is only available for policies with the H050 endorsement. When the policy covers loss assessment resulting from loss by earthquake or volcanic eruption, the limit of liability for this coverage shall be based on the homeowner s proportionate interest in the total value of all collectively owned buildings and structures of the association. For frame construction the rate is $0.075 per $100 of insurance. P. Scheduled and Misc. Scheduled Personal Property (H061 and H062) Coverage may be provided against risks of accidental direct physical loss, with certain exceptions, on scheduled personal property at the premiums shown in the regular homeowner section of this manual. Our Scheduled Property Application must be completed and forwarded. December 2004 Idaho MH-9
ADDITIONAL LIABILITY COVERAGES AND INCREASED LIMITS Credit for deletion of Liability: When homeowners coverage is provided on the primary and secondary residence premises under separate policies in this company, the liability may be deleted on the secondary premises and the premium for the secondary shall be reduced 10% (refer to the rating methodology page MH-4 for the order of calculation). Liability coverage for the secondary residence must then be endorsed to the primary policy at the appropriate charge. Med 100M 300M 500M Personal Injury Included in Basic Coverage Required Coverage Personal Liability, Including * 1 Family Main Dwelling 1,000 included 9 14 2,000 6 11 17 5,000 15 20 25 Additional Premises - 1 or 2 Family 1,000 6 8 9 Dwelling Occupied by Insured 2,000 7 9 10 5,000 10 12 13 Additional Acreage With or Without 1,000 8 11 12 Buildings 2,000 9 12 13 5,000 12 15 16 MH-10 Idaho January 2006
ADDITIONAL LIABILITY COVERAGES AND INCREASED LIMITS (Cont.) Business Liability Med 100M 300M 500M Incidental Business Occupancy 1,000 15 19 22 2,000 20 24 27 5,000 34 38 41 Business Pursuits Liability (Classify and apply each charge separately for each person insured) A. Salesmen, collectors or 1,000 5 6 7 messenger, including installation, demonstration, or servicing 2,000 6 7 8 operations. 5,000 9 10 11 B. Teachers, athletic, laboratory, 1,000 9 11 12 manual training and swimming instruction - excluding liability for 2,000 10 12 13 corporal punishment 5,000 13 15 16 C. Teachers - liability for corporal 1,000 4 6 7 punishment of pupils. Additional premium for this 2,000 5 7 8 coverage to be added to premium 5,000 8 10 11 classification B. Occupations Not Otherwise Classified - Refer to Company Farm Land or Farm Premises Rented to Others 500 Acres or Less 1,000 18 21 23 2,000 19 22 24 5,000 22 25 27 Over 500 Acres 1,000 27 31 34 Incidental Farming (renewals only) Snowmobile 2,000 28 32 35 5,000 31 35 38 1,000 26 30 34 2,000 28 32 36 5,000 31 35 39 Per Machine 1,000 22 27 32 2,000 23 29 35 5,000 26 32 38 December 2004 Idaho MH-11
ADDITIONAL LIABILITY COVERAGES AND INCREASED LIMITS (Cont.) WATERCRAFT LIABILITY Each Outboard Motor * Med 100M 300M 500M 25 HP and Under Included in Basic Coverage Over 25 HP 1,000 15 19 21 2,000 17 21 23 5,000 26 30 32 Inboard or Inboard / Outboard Motor Boats and Sailboats ** Under 16 MPH 1,000 16 21 23 Less Than 26 Feet 2,000 18 23 24 5,000 27 32 33 16 to 40 MPH 1,000 33 44 49 Less Than 26 Feet 2,000 35 46 51 5,000 44 55 60 * Where two or more outboard motors are regularly used together in connection with any single watercraft owned by the Insured, the horsepower of all such outboards shall be accumulated for rating purposes. MH-12 Idaho December 2004