OHIO RULE GUIDE New Business: 06/02/2015 Renewals: 07/02/2015

Transcription

1 OHIO RULE GUIDE New Business: 06/02/2015 Renewals: 07/02/2015 1

2 TABLE OF CONTENTS BENEFITS OF DAIRYLAND INSURANCE... 3 CONTACT INFORMATION... 4 MOTORCYCLE "QUICK QUOTE" HELP LINE... 5 DAIRYLAND PROGRAM DEFINITIONS... 6 TYPES OF MOTORCYCLES... 7 COVERAGE LIMITS... 8 ADDITIONAL COVERAGES OPTIONAL EQUIPMENT... 9 EXCURSION DIVERSION PHYSICAL DAMAGE PLUS ROADSIDE ASSISTANCE RENTAL REIMBURSEMENT REPLACEMENT COST BROAD FORM LIABILITY ENDORSEMENT GENERAL UNDERWRITING RULES CLASSIC AND GOLD PROGRAM QUALIFICATIONS DRIVING RECORD RULES RATING CLASSIFICATION VEHICLES ELIGIBLE TO BE WRITTEN FOREIGN/INTERNATIONAL DRIVER'S LICENSE CUSTOM AND ASSEMBLED MOTORCYCLES TRIKES VINTAGE CYCLES HIGH PERFORMANCE CYCLES LEASEHOLDERS DISCOUNTS MULTI-CYCLE DISCOUNT HOME OWNERSHIP DISCOUNT HOG MEMBER DISCOUNT MULTI-LINE DISCOUNT LOYALTY DISCOUNT RIDER GROUP DISCOUNT RIDER COURSE DISCOUNT FULL OWNERSHIP DISCOUNT WINTER DISCOUNT PRIOR INSURANCE DISCOUNT GENERAL PAYMENT INFORMATION - DIRECT BILL MINIMUM PREMIUM RULE PAYMENT PLANS FEES GENERAL PAYMENT INFORMATION - ELECTRONIC FUNDS TRANSFER MINIMUM PREMIUM RULE PAYMENT PLANS FEES EXISTING DIRECT BILL CHANGED TO EFT GENERAL POLICY RULES POLICY ISSUANCE RULES POLICY CHANGES SEVERE WEATHER BINDING AUTHORITY COMMISSIONS RENEWAL PROCEDURES CANCELLATION RULES USING OUR WEBSITE NEW CUSTOMERS POLICY MAINTENANCE ENDORSEMENTS POLICY STATUS AGENT / PRODUCER ADMINISTRATION OTHER SERVICES, SYSTEM MAINTENANCE, INFORMATION

3 BENEFITS OF DAIRYLAND INSURANCE Dairyland is a recognized leader in the insurance industry, rated A+ (superior) by the A.M. Best Company Competitive rates for a wide variety of operators and motorcycles Rewards for good operators with prior coverage Flexible payment plans Great commissions which are among the best in the industry 12 months of coverage for the price of only 9 months of premium 24-hour claims service Affordable comprehensive and collision rates for vintage motorcycles 30 years or older Wide variety of coverages such as: - Excursion Diversion - Physical Damage Plus - Roadside Assistance - Rental Reimbursement - Replacement Cost - Broad Form Liability Endorsement Money saving discounts: - Multi-Cycle - Home Ownership - HOG Member - Multi-Line - Loyalty - Rider Group - Rider Course Higher liability limits up to $250,000/500,000 Higher property damage limits up to $100,000 Up to $5,000 of optional equipment coverage at no cost Better rates for individuals who have full ownership of their motorcycle(s). Applies to Classic program only. (See complete program qualifications on page 12) 3

4 CONTACT INFORMATION Dairyland Cycle's Help Line Provides access to policy information and service such as policy endorsements and credit card payments Phone Fax Agency Sales Support For questions regarding commissions or bonus, contracts, change of agency address or phone number, new producer appointments and other general operational inquiries Phone Fax Motorcycle Claims New and existing claims Phone PO Box 8042 Stevens Point, WI Dairyland "Quick Quote" Line New business quotes Dairyland ( ) Hours of operation: 7am - 7pm CST, Monday through Friday *See page 5 for more information* Dairylandagents.com Web Support Assistance with questions regarding Hours of operation: 7am - 7pm CST, Monday through Friday After hours: supportcenter@sentry.com Payment Processing All payments except new business PO Box 8030 Stevens Point, WI Policy Service Any policy correspondence, policy changes, new business applications, etc. PO Box 8034 Stevens Point, WI policydocuments@dairylandcycle.com Typed signatures are not acceptable 4

5 MOTORCYCLE "QUICK QUOTE" HELP LINE Dairyland ( ) 7am - 7pm CST, Monday through Friday With our "Quick Quote" Help Line, it's easier than ever to quote motorcycle insurance. Use the "Quick Quote" Help Line for: Fast, accurate answers to your rating questions Assistance in preparing a new business quote When using the "Quick Quote" Help Line, please have the following information available: 1. Your 7-digit agent code. 2. Description of the motorcycle(s): Year Make Model name or number Vehicle Identification Number Engine size in cc s Total value of all optional equipment Mechanical alterations on the motorcycle(s), if any Lien or Lease holder information Garaging address 3. Operator's information: Age Marital status Social Security number Driving record Physical address, if different from garaging Years riding experience 4. Specific coverages the operator requires. 5. If any operators qualify for any applicable discounts. 5

6 DAIRYLAND PROGRAM DEFINITIONS "Age" is defined as the age attained on the last birthday prior to the effective date of the policy. "Assembled motorcycle" is a motorcycle that is primarily constructed of parts built and designed by major after-market manufacturers. "At-fault accident" is defined as any accident (including one-vehicle accidents) unless it is demonstrated that the accident involved the following: "Claim" is defined as: any accident, regardless of fault, resulting in paid damages or reserved damages or, an occurrence which results in paid damages or reserved damages over $500 under comprehensive coverage, except for towing and "act of nature" losses such as windstorm, earthquake, hail, explosion, tornado, cyclone, flood or water damage. "Classic Program" is our program that does not utilize insurance scoring. Only applies to renewal policies with anniversary dates prior to 11/15/07. "Comprehensive claim", for purpose of this rule only, is defined as an occurrence which results in paid damages or reserved damages over $500 under comprehensive coverage except for towing or 'act of nature' losses such as; windstorm, earthquake, hail, explosion, tornado, cyclone, flood or water damage. "Custom motorcycle" is a motorcycle that is built by a pre-approved builder and is specifically designed for an individual or enthusiast. "Eligible vehicle" is defined as any motorcycle we write as listed in the Vehicles Eligible to be Written in the General Underwriting Rules section of this guide. "Experience period" is defined as a number of years extending back from a specified date. vehicle was legally parked; or For new business the specified date is the effective date of vehicle was struck in rear while legally stopped for traffic or coverage. traffic control device; or For renewal business the specified date is the annual vehicle collided with a bird or animal; or anniversary date of the policy. accident involved a hit-and-run driver and reported to proper authorities within 24 hours; or "Factory standard" is the standard equipment on the accident in which judgment or reimbursement is obtained motorcycle, as defined by the manufacturer, and from other party, provided the Company makes no liability determined from the information included with the Vehicle payment on behalf of the insured. One vehicle accidents Identification Number (VIN). shall be considered at-fault accident; or applicant, owner, or other resident operator involved in an "Gold Program" is our program that utilizes insurance accident is (1) determined to be 50% or less negligent or (2) scoring. reimbursed for 50% or more of his/her damages by, or on behalf of, persons involved in the accident; or accident occurred in the course of employment by another "Household Transition Score" is based on the length of for the principle purpose of driving a motor vehicle; or time that has elapsed since the Named Insured last had accident occurred while carrying persons or property for motorcycle insurance in force. compensation; or Proof of prior insurance must be submitted to the Company. accident occurred in the course of employment in the Previous Dairyland motorcycle policies will qualify. collection, transportation or delivery of mail if the vehicle is Personnel returning from overseas duty government owned; or (government/military/private sector) will be given credit for accident occurred while driving an authorized emergency continuous insurance. No proof of overseas orders is vehicle; or required. accident occurred while driving a commercial motor vehicle; or "Major violations" are defined as: accident occurred in the course of employment with a Hit and Run federal, state or local government in a public works project Conviction under Implied Consent Law involving repair or maintenance of water, sewer or road Under influence/controlled substance systems. Operating vehicle while intoxicated Racing "CC's", or Cubic Centimeters, is the engine size Reckless driving displacement. Underage alcohol "Manufactured motorcycle" is a motorcycle that is constructed by the manufacturer using parts that are primarily designed for and/or built by that same manufacturer. "Married" includes any person who is a widow or widower, but does not include any person who is divorced, separated or not residing with their spouse. "Minor violations" are defined as any violation not considered a "major violation". "Not at-fault accident" is defined as any accident not considered an at-fault accident. "Operator in the household" is defined as any rider of any "eligible vehicle" who is a legal resident of the insured's household, or is a regular operator of the insured's "eligible vehicle", whether or not they have their own vehicle and insurance with us or another company. 6

7 TYPES OF MOTORCYCLES Since their inception in the early 1900 s, motorcycles have evolved from simple, motorized bicycles into highly-specialized machines, each with defining characteristics. Not sure what s out there? Use this at-a-glance guide to help you learn the basic motorcycles types. Standard These are the most versatile motorcycles available and are designed to be ridden on paved roads. They usually don t include fairings or windscreens. Cruiser With reclined seating, the rider s feet rest in a forward position comfortably as they cruise along. Most of these classically-styled motorcycles highlight their exposed engine and pipes. Touring Designed for long rides, these motorcycles feature comfortable backrests, fairings and windscreens. Some even come with navigation and a stereo system. In general, the body is bulkier than a standard motorcycle. Sport Touring A combination of a sport bike and a touring motorcycles, these motorcycles offer the comfort of a Touring, but are more streamlined in design, allowing additional ability to navigate twisty roads then stop on a dime. Sport Bike With a lightweight frame, these performance-driven motorcycles are built for responsive handling and quick braking. Most have fairings and windscreens. Trike As you might expect from its name, this motorcycle type has three wheels instead of two. Usually converted from a regular motorcycle, into a three-wheeler, trikes offer a stable ride with the added capacity for towing a small trailer behind. Dirt Bike Built for off-road activities, the lighter frame and minimal bodywork allow this type of motorcycle to hang as much air time as possible. Knobby, treaded tires provided added traction on uneven off-road surfaces. Dual Purpose This unique type of motorcycle is an upgrade to a regular dirt bike, adding the components needed to make it street-legal (horns, lights, turn signals). It can be used on paved roads as well as off-road. Scooter / Moped A commuter s best friend, this smaller motorcycle is easy to ride with no gears to shift. It s ideal for getting around town because of its excellent fuel economy. 7

8 COVERAGE LIMITS Bodily Injury Guest Passenger Liability Property Damage Uninsured Motorist Bodily Injury Per Policy Limits 25/50 50/ / /500 25/50 50/ / /500 25,000 50, ,000 25/50 50/ / /500 Deductible Uninsured Motorist Property Damage 7, Medical Expense Comprehensive Collision , , , Up to $60,000 Actual Cash Value Up to $60,000 Actual Cash Value , ,000 8

9 ADDITIONAL COVERAGES CLASSIC GOLD OPTIONAL EQUIPMENT Included Included We define optional equipment as any equipment or accessories that are not factory standard. Factory standard equipment is the standard equipment on the motorcycle, as defined by the manufacturer, and determined from information included with the Vehicle Identification Number (VIN). It is important to notify us of all optional equipment if you are not certain of the optional equipment on the motorcycle, please contact your local dealership. Only the amount over the program inclusion amount will include a charge. Maximum acceptable value including all equipment is $60,000 per motorcycle. Maximum acceptable value for optional equipment cannot exceed $20,000 per motorcycle. Coverage for optional equipment exceeding the automatic coverage DOES NOT EXIST unless optional equipment is disclosed. Available when Comprehensive coverage is purchased. To determine value of optional equipment: Determine value of each specific piece of optional equipment that has been added on. Determine value of each specific piece of factory standard equipment that has been replaced with the optional equipment. Subtract value of factory standard equipment from value of optional equipment. Difference is the value of optional equipment. Example=original Harley-Davidson seat=$200; replaced with a Corbin seat=$350; list $150 as optional equipment value Up to $3,000 Additional limits are available for purchase. Up to $5,000 Additional limits are available for purchase. 9

10 CLASSIC GOLD EXCURSION DIVERSION Optional Included In the event of a covered Comprehensive or Collision loss, Dairyland provides up to $1,000 for loss or damage to any safety apparel whether being worn at the time of the loss or not. This coverage does not apply to theft of any apparel unless there is a total theft of the motorcycle. Safety apparel does not include helmets. (Refer to the Additional Benefits Collision and Comprehensive Insurance section of the policy for more information regarding coverage for helmets.) Available when Comprehensive coverage is purchased. For any covered loss that occurs more than 100 miles from principle place of residence: $400 maximum per occurrence, including up to: $100 per day temporary lodging $45 per day transportation $50 per day meals $400 for lost deposit (every attempt must be made to cancel the reservation) $300 towing or emergency road service For any covered loss that occurs more than 100 miles from principle place of residence: $500 maximum per occurrence, including up to: $125 per day temporary lodging $75 per day transportation $75 per day meals $500 for lost deposit (every attempt must be made to cancel the reservation) $300 towing or emergency road service PHYSICAL DAMAGE PLUS Optional Optional This coverage provides a guarantee to use only Genuine Manufacturer s Parts when repairing the motorcycle and to replace any accessories (if considered a total loss) without depreciation, when the accessories were purchased within the past 5 years. Accessory is defined as optional equipment or mechanical alterations attached to or made part of the cycle which is not standard equipment defined by the manufacturer. Not available for Vintage cycles. No discounts apply to this coverage. Available when Comprehensive and Collision coverage is purchased. Coverage does not apply if the motorcycle is a total loss. ROADSIDE ASSISTANCE Optional Optional Roadside Assistance provides 24-hour toll-free towing and roadside service when a covered motorcycle is disabled due to mechanical or electrical breakdown. Includes assistance for battery failure, flat tires, insufficient supply of fuel, oil, fluid or water, and lockout. Service provided only through our pre-authorized vendor. No discounts apply to this coverage. 10

11 CLASSIC GOLD RENTAL REIMBURSEMENT Optional Included We promise to pay up to $45 per day, to a maximum total payment of $1,350, for the necessary rental of a substitute vehicle while the motorcycle described in the policy declarations or its replacement is disabled as a result of a collision or comprehensive loss covered by this policy. Rental Reimbursement Insurance pays expenses that begin 24 hours after your motorcycle is disabled. It does not pay for any mileage charges. Available when Comprehensive coverage is purchased. REPLACEMENT COST Optional Optional This coverage provides the assurance of replacement cost excluding theft and larceny if the bike is considered a total loss. Bike must be purchased in the last 90 days. Bike must be previously untitled. Coverage is available for 3 years, based on the model year. Optional equipment is not covered. Available when Comprehensive and Collision coverage is purchased. Not available for Vintage cycles. BROAD FORM LIABILITY ENDORSEMENT Optional Optional Designed for the applicant who has three or more cycles and wishes to have them all insured. Dairyland will provide Liability Coverage only for all owned or non-owned cycles, for one premium charge. Coverage applies to the Named Insured only. No coverage exists for any permissive user, including family members. If Physical Damage Coverage is desired, each cycle must be insured separately for those coverages, including Liability. Liability refers to Bodily Injury, Guest Passenger and Property Damage. Uninsured Motorist Bodily Injury, Uninsured Motorist Property Damage and Medical Expense are available upon request. Any Anti-Theft, Loyalty or Rider Group Discount will not apply to policies with this endorsement. 11

12 GENERAL UNDERWRITING RULES CLASSIC AND GOLD PROGRAM QUALIFICATIONS 4 or less minor moving violations, 2 or less major violations, 2 or less at-fault accidents and 3 or less not at-fault accidents Classic program only applies to renewal policies with an anniversary date prior to 11/15/2007. DRIVING RECORD RULES Motor Vehicle Reports may be ordered on all rated operators. Use the experience period and combine the driving record for all operators in the household. Count all accidents (regardless of fault), all comprehensive losses (except towing and 'acts of nature'), and all major violations. All minors are counted for 36 months for program qualifications and rating. All majors are counted for 36 months for program qualifications and rating. All accidents are counted for 36 months for program qualifications and rating. Comprehensive claims are counted for 36 months for rating but not for program qualifications. When multiple major and minor violations occur on the same day, count the major(s). When multiple minors occur on the same day, count as one minor. All accidents and majors will be counted whether resulting from a single or multiple occurrences on the same day. - It will be assumed that all accidents on the driving record were at-fault unless a police report or written explanation is submitted to the contrary. See Definitions for complete description. Once a policy is issued, all accidents involving the Named Insured, spouse or other family member who is a resident of the same household will be counted. RATING CLASSIFICATION Each operator is rated on the motorcycle they customarily ride. In cases where the number of riders exceeds the number of motorcycles, the operator developing the highest premium will be rated on the motorcycle they customarily ride. VEHICLES ELIGIBLE TO BE WRITTEN A vehicle eligible to be written under a Dairyland motorcycle policy is any two wheeled or three wheeled motorcycle except for the following: the vehicle is not licensed for road use or is an offroad vehicle, including all-terrain vehicles (ATV's); the vehicle is manufactured solely for the purpose of off-road use; the vehicle is used in competitive events; the vehicle is used in law enforcement or in any type of security services; the vehicle is registered in the name of a corporation or business; the vehicle has been customized with one or more of the following: - the frame is materially altered from the original manufacturer's specifications; - the engine has been replaced with an engine not made by the manufacturer of the original motorcycle; - there is an extended front fork on the motorcycle; - the fuel delivery system has been altered to use nitrous oxide or similar performance enhancing compounds; the vehicle is considered an unapproved custom built motorcycle, either a one-of-a-kind design or limited production; the vehicle is a show bike; the vehicle is used for delivery; motorcycles not initially manufactured for sale in the United States and do not conform to Environmental Protection Agency or National Highway Traffic and Safety Administration standards; vehicles with an engine larger than 2500 cc's; vehicle with optional equipment exceeding $20,000; vehicle with a total value, including optional equipment, greater than $60,000; vehicle with an operator(s) or applicant(s) who has been convicted of insurance fraud; the vehicle has a salvage or rebuilt title and/or registration; the vehicle has a lien holder that is not a financial institution or an entity whose regular business is the financing of motor vehicles. General Underwriting Rules continued on next page. 12

13 FOREIGN/INTERNATIONAL DRIVER'S LICENSE Any operator who does not have a valid U.S. license, but has a valid foreign or international license, will be assessed a surcharge. After a U.S. license has been obtained and the information has been provided to the Company, the surcharge will be dropped as of the next renewal. CUSTOM AND ASSEMBLED MOTORCYCLES We categorize acceptable motorcycles into 3 categories: assembled, custom and manufactured. (See definitions) A current listing of all acceptable pre-approved custom motorcycles can be obtained at under Rate and Underwriting Guides. - The list is subject to revision at any time. The value of the motorcycle with optional equipment may not exceed $60,000. Custom cycles are rated upon vehicle value. TRIKES To qualify, a trike must be a motorcycle changed to a 3-wheeled vehicle with a trike conversion unit or kit. - Must have the original motorcycle manufacturer's engine. - No front fork modifications are acceptable. Any unit or kit that is made by an established trike conversion manufacturer and installed in their intended manner is acceptable. Writing a trike: - Quote using the original motorcycle manufacturer. - The cost of the conversion kit is covered under the Optional Equipment coverage. - Indicate in "Remarks" section of application that the motorcycle is a trike. VINTAGE CYCLES To qualify: - Minimum motorcycle age: 30 years - Maximum motorcycle value: $60,000 including all factory standard, optional equipment and mechanical alterations. Documents required with the application: - Two photos showing all sides of the motorcycle must be submitted to the Company. - Documentation verifying the motorcycle's value must be submitted to the Company such as: An appraisal from either a qualified motorcycle appraiser or a motorcycle dealer. Must be submitted on their company's letterhead and completed within the past 12 months. If purchased within the past 12 months of policy effective date, a copy of the bill of sale or cancelled check. - A Vintage Cycle Checklist must be submitted to the Company. Can be obtained at under the Supply Ordering section. Due to the special nature of this program, we reserve the right to decline coverage on any individual risk. Any loss settlement will be based on the lesser of: - The amount shown in the policy declarations based on the appraised value; or - The Actual Cash Value of the property at the time of loss; or - The actual cost to repair or replace damaged property, subject to a $250 deductible. HIGH PERFORMANCE CYCLES All operators must have at least two years of on-road motorcycle experience. LEASEHOLDERS When listing a leaseholder on a motorcycle, the leaseholder contract must be a minimum of 12 months. A leaseholder cannot be added in conjunction with a lien holder on the same vehicle. 13

14 DISCOUNTS MULTI-CYCLE DISCOUNT 25% Maximum of three cycles per policy. Only cycles owned by the Named Insured and resident spouse may be combined on a multicycle policy. This discount does not apply to Per Policy Uninsured/Underinsured Motorist Bodily Injury. HOME OWNERSHIP DISCOUNT 20% The insured must reside in the home and be a declared driver. Includes condominiums and townhouse, but excludes modular or mobile homes that are older than 15 years old. Modular or mobile homes that are 15 years old or newer do qualify for this discount. Proof must be submitted to the Company. - The insured s name and property address on the document showing ownership must be the same as the insured s name and mailing or garaging address on our policy. - Acceptable proof: Copy of Homeowner s Insurance policy declarations Property tax assessment Mortgage payment coupon Title of Mobile or Modular Home Tribal Agreements for Native American Reservations HOG MEMBER DISCOUNT 15% Insured must be a member of the Harley Owners Group. Proof must be submitted to the Company. This discount does not apply to Per Policy Uninsured/Underinsured Motorist Bodily Injury. MULTI-LINE DISCOUNT 5 OR 7% A 5% discount will be applied if the Named Insured has one additional personal lines insurance policy through any carrier within your agency or organization. A 7% discount will be applied if the Named Insured has two or more additional personal lines insurance policies through any carrier within your agency or organization. Proof does not need to be submitted to the Company, however, must be retained by the agent for audit purposes. LOYALTY DISCOUNT 7.5% OR 4% Automatically applied when a motorcycle replacement or addition is completed on a policy that has been in effect for 12 or more continuous months. - To qualify the replacement motorcycle must be newer. - If the vehicle age is between 0 and 1 year old as of the policy effective date, a 7.5% discount will apply. - If the vehicle age is between 2 and 4 years old as of the policy effective date, a 4% discount will apply. The 7.5% discount will reduce to 4% once applied for a full renewal term and expire upon the second full renewal term. The 4% discount will expire once applied for a full renewal term. This discount applies to Bodily Injury, Guest Passenger, Property Damage, Medical Expense, Comprehensive and Collision coverage. This discount does not apply to Per Policy Uninsured/Underinsured Motorist Bodily Injury. RIDER GROUP DISCOUNT 5% Insured must be a member of a motorcycle group recognized by Dairyland. A list of acceptable rider groups is found during the application process on If there is a question regarding rider group eligibility, please contact our Customer Service Department. This discount does not apply to Per Policy Uninsured/Underinsured Motorist Bodily Injury. Proof must be submitted to the Company. List is subject to change at any time. RIDER COURSE DISCOUNT 2% For those individuals who have taken a rider course specifically designed for motorcycle riders within the last 5 years such as: - Motorcycle Safety Foundation course - Advanced operator course - Military or police training courses - Other state certified motorcycle safety course within the past five years This discount does not apply to Per Policy Uninsured/Underinsured Motorist Bodily Injury. Proof does not need to be submitted to the Company, however, must be retained by the agent for audit purposes. Discounts continued on next page. 14

15 FULL OWNERSHIP DISCOUNT Individuals who have full ownership of their motorcycle will qualify for better rates. No lien or lease allowed. Applies to Classic program only. Automatically included when no lien or lease holder exists. Discount not listed on policy documents. WINTER DISCOUNT All policies are written at 9 times the monthly rate in recognition of the limited use during off-season months, except for the following coverages: - Excursion Diversion (including Vintage) - Physical Damage Plus - Roadside Assistance - Vintage Comprehensive and Collision - Vintage Rental Reimbursement PRIOR INSURANCE DISCOUNT Individuals who had prior motorcycle insurance ending within 60 days of the new business policy effective date will qualify for better rates. Proof must be submitted to the Company. - Acceptable proof: Policy Declarations or renewal notice Identification Card Letter of experience on company letterhead. - The insured s name on the document showing prior insurance must be the same as the Named Insured on our policy. - The proof must include the term of the prior policy. Prior Dairyland Cycle policies qualify for the discount. Proof is not required, but the prior policy number should be included in the application remarks. Personnel returning from overseas duty (government/military/private sector) will be given this discount if specified at new business. No proof of overseas orders required. Discount not listed on policy documents. * All discounts are applicable to all coverages except Physical Damage Plus and Roadside Assistance unless noted otherwise. * All discounts are applicable to the Classic and Gold program unless noted otherwise. 15

16 GENERAL PAYMENT INFORMATION - DIRECT BILL MINIMUM PREMIUM RULE New Business and Renewals - $95.00 The minimum amount acceptable with an application or renewal payment. The minimum premium will be fully earned unless cancelled at the option of the Company. However, the minimum premium rule will apply to cancellations for nonpayment of premium. NEW BUSINESS FLEXIBLE ANNUAL PAYMENT PLANS Plan Total Premium Down Payment Installments Full Pay N/A 100% N/A 3 Pay* $ % 30% 6 Pay* $ % 15% * First installment is due at 60 days, subsequent installments are due every 30 days. * Approximately 15 days prior to the policy effective date of each month, an installment bill will be sent to the insured advising of the dollar amount and due date. * INSTALLMENT FEES A $5.00 fee will be added to each installment billing for those insureds on a direct bill pay plan. LATE FEES A $5.00 late fee will be assessed on each installment that is postmarked after the due date indicated on the premium notice. If payments are made in person, the payment must be received on or before the due date indicated on the premium notice. The fee is fully earned and non-refundable. Any payment received is applied to any outstanding late fees first, then to the premium. Failure to pay late fees will result in policy cancellation for non-payment. ENDORSEMENT PAY PLANS Full Pay Plan - If the endorsement occurs within the first 5 months of the policy term and results in additional premium greater than $150, the balance will be billed in three equal installments. Otherwise, the balance will be supplementally billed in full. 3 or 6 Pay Plan - Policies that are on a 3 or 6 pay plan with one or more installments remaining will have the balance spread among the remaining installments. If no installments remain, the additional premium will be supplementally billed in full. PAYMENT METHODS New Business and Endorsement Premium - Payment may be submitted using cash, check or money order *(to be withdrawn from agent sweep account). - Payment can also be made by insured credit card (VISA, MasterCard or Discover ). * For questions regarding your sweep account, call All other payments may be made by: - Completing the credit card authorization form on the back of billing notices - Phone ( ) - Western Union Quick Collect. - Online at my.dairylandinsurance.com Insureds can make a one-time payment or enroll in our online payment services to schedule a payment. 16

17 GENERAL PAYMENT INFORMATION - ELECTRONIC FUNDS TRANSFER MINIMUM PREMIUM RULE New Business and Renewals - $95.00 The minimum amount acceptable with an application or renewal payment. The minimum premium will be fully earned unless cancelled at the option of the Company. However, the minimum premium rule will apply to cancellations for nonpayment of premium. FLEXIBLE ANNUAL PAYMENT PLANS Plan Total Premium Down Payment Installments Full Pay N/A 100% N/A Monthly* $ % 8.33% * Approximately 15 days prior to the first deduction, a deduction schedule will be sent to the insured advising of the dollar amount and the dates the deductions will be drawn. * The deductions will be drawn on the policy effective date of each month, unless the insured has requested an alternate deduction date. Note: Alternate deduction dates vary, please contact Customer Service for the dates that are available. * If the policy effective date is the 29 th, 30 th or 31 st of the month and an alternate deduction date is not requested, the deduction date will default to the 1 st of the following month. ENDORSEMENT PAY PLANS Full Pay Plan - If the endorsement occurs within the first 5 months of the policy term and results in additional premium greater than $150, the balance will be deducted in three equal installments. Approximately 15 days prior to the first deduction, a schedule will be sent to the insured advising of the amount and the dates the additional monthly deductions will be drawn. - If the endorsement is not within the first 5 months of the policy term or results in additional premium less than $150, the insured will receive a supplemental deduction notice advising of the amount and the date the balance will be deducted in full. Monthly Pay Plan - Policies that are on a monthly plan with one or more installments remaining will have the balance spread among the remaining installments. A schedule of deductions will be mailed to the insured approximately 15 days prior to the first adjusted installment. If no installments remain, the insured will receive a supplemental deduction notice advising of the amount and the date the balance will be deducted in full. * INSTALLMENT FEES A $3.00 fee will be added to each installment billing for those insureds on an EFT pay plan. EXISTING DIRECT BILL CHANGED TO EFT EFT can be added within the first 60 days of a policy term. When requesting the EFT monthly payment plan an alternate deduction date can be selected. Note: Alternate deduction dates vary, please contact Customer Service for the dates that are available. PAYMENT METHODS New Business - Down payment must be submitted using cash, check or money order *(to be withdrawn from agent sweep account). - Payment can also be made by insured credit card (VISA, MasterCard or Discover ). * For questions regarding your sweep account, call The initial payment on the EFT payment plan cannot be electronically deducted from the insured s bank account. If funds are not available in the bank account, the policy will be removed from Electronic Funds Transfer payment method and a cancellation notice will be billed directly to the Named Insured. 17

18 GENERAL POLICY RULES POLICY ISSUANCE RULES A policy is issued promptly based on the application submitted. Agents have immediate binding authority in accordance with the rules contained in this guide. Once payment is received, coverage is bound as of the date and time both the applicant and the agent sign the application. - If coverage is to be effective at a later date, the application must clearly be marked as to the exact later date. The application must be submitted electronically within 72 hours after binding. Three vehicles may be combined on a single policy. Vintage cycles may not be combined with nonvintage cycles on the same policy. It is the agent's responsibility to obtain all required signatures and maintain these original documents. You are required to retain these signed documents, as well as any other documents used to support applicable discounts which we don t require to be submitted to us, for as long as the policy is in force and a minimum period of eight (8) years thereafter or required by state mandates. This is very important for the following reasons: - The Company will, at its discretion, audit the agent's files to verify that signatures are in place and all required documents are being retained. - From time to time it will become necessary for the claims department to verify coverages, rejections and effective date and time. Payment for the total premium or down payment must be transmitted. This payment must at least meet the $95 minimum premium requirement. All applications, coverage selection/rejections, waivers and other contractual items must be signed by the Named Insured or the person signing these must have the express authority of the Named Insured. This also applies to subsequent policy changes. No outside premium financing accepted. POLICY CHANGES Policy changes can be made electronically at or by calling the Dairyland Cycle Help Line. If the endorsement is submitted electronically, the agent is to obtain all required signatures and retain these original documents. - Use Policy Change Request Form A for name changes and cancellations, which can be obtained at under the "Supply Ordering" section. Changes will be effective no earlier than 72 hours prior to the date the endorsement is phoned in. SEVERE WEATHER BINDING AUTHORITY When the National Weather Service has issued a severe weather "warning" in an agent's area, binding authority will be suspended except for writing liability only policies. Agents are prohibited from increasing coverages on existing policies, which includes lowering deductibles. Reinstatements or rewrites are not to be bound if the policy includes any physical damage coverages. Binding suspensions will remain in effect until severe weather has passed and an "all clear" signal has been broadcast by the National Weather Service or binding authority has been reinstated by the Company. COMMISSIONS New Business: 12% Renewals/Rewrites: 10% General Policy Rules continued on next page. 18

19 RENEWAL PROCEDURES Dairyland automatically rerates policies for each renewal. Direct Bill Payment Plan - Approximately 30 days prior to expiration, a renewal offer is mailed to the Named Insured with a copy to the agent. The insured is instructed to pay the premium directly to the Company. EFT Payment Plan - Approximately 30 days prior to expiration, a deduction notice is mailed to the Named Insured. The first deduction will be drawn from the insured s account on the policy renewal date, unless the insured has requested an alternate deduction date. Premiums not received by the due date will result in the following: - Approximately 8 days after the due date, a cancellation notice is sent to the insured with a copy to the agent if the premium has not been received. - If premium is received and postmarked by the cancellation date, the policy is renewed without a lapse in coverage. - Lapse notices are sent to the lien or lease holder and any financial responsibility filings are cancelled. If the renewal premium is postmarked within 60 days of the cancellation date, coverage will be reinstated with a lapse. The new effective date will be 12:01 a.m. on the date after the postmark on the envelope containing the payment. If coverage is to be bound earlier, the agent must sign and indicate the date and time coverage was bound (binding rules apply). A new application is required and new business premium rules are applicable for securing coverage after 60 days following the expiration date. CANCELLATION RULES When the insured wishes to cancel the policy, or any coverages, we must have the request in writing, signed by the insured. The cancellation will be effective no earlier than 72 hours prior to the date of postmark of the cancellation request. In the event of a total loss, all coverage continues until a signed request to cancel the policy is received from the insured. In some cases, a cancellation notice may be initiated by the Underwriting Department and will be cancelled pro-rata. Cancellation of an annual term policy may incur a substantial penalty. No flat cancellations. If a policy is cancelled by the Company, or cancelled by the insured because the vehicle was sold, involved in an accident resulting in a total loss, or the insured is deceased, compute on a pro-rata basis any premium owed or premium to be returned using the policy premium including the winter discount (referred to as the discount premium). If a policy is cancelled for non-payment, the winter discount will no longer apply to the policy. Re-compute the premium without the winter discount applied. This is the nondiscounted premium. Using this nondiscounted premium compute on a pro-rata basis any premium to be refunded or premium owed for the policy period through the cancellation date. If a policy is cancelled by the insured for any other reason than those listed above, the winter discount will no longer apply to the policy. Recompute the premium without the winter discount applied. This is the non-discounted premium. Using the non-discounted premium, return any premium to be refunded at 90% of the pro-rata unearned premium owed on a prorata basis for the policy period through the cancellation date. 19

20 USING OUR WEBSITE Select Business Network to log in. If problems logging in, please call LINKS ON THE MAIN MENU NEW CUSTOMERS QUOTE PROCESS - Prepare a New Business quote Position cursor over link to select which product to quote Quote number is displayed at the top of screen Enter applicable data on each screen. Required fields are displayed in red. Errors will prevent you from navigating to the next screen. Authorization to use credit history places the policy in the Gold Program, when applicable. Agent must receive insured's authorization to use insurance scoring before quoting in Gold Program. Electing to not authorize the use of credit history places the policy in the Classic Program. Selecting Home at the bottom of the screen will save the information that has been entered. Select Convert to Application button to convert quote to a policy. - Note: If the motorcycle has or could possibly have a lien or lease holder, name and address do not need to be entered for a quote, but yes for lien or lease holder should be selected since a lien or lease holder could affect premium. The lien or lease holder name and address needs to be entered once the quote is converted to an application. QUOTE / APP RETRIEVAL - Pull previously prepared quotes & applications done by phone or web Select Convert to Application on Summary screen to convert quote to a policy Search by Quote Number, Name or Agent/Producer Number REPRINT APP DOCUMENTS - Reprint applications that have been submitted via the web Enter policy number Select document to print or select Print All button to print all documents listed 20

21 POLICY MAINTENANCE MAKE A PAYMENT - Upload a payment using agency EFT or insured credit/debit card. Select Policy Number Inquiry under the Policy Status menu for current billing information. Only available if a billing notice has been issued to the customer Enter policy number or search by insured's name Enter data fields Select one of the payment options if they are going to be paying the displayed amount, otherwise if payment is different, enter in Amount Submitted field Amount Submitted - Amount the insured is paying Check Number - If payment method is check, enter insured's check number Transaction Processed By - Agent's name or initials Insured Payment Method - Select option Print ID Card - Gives the option of printing ID card after payment is successfully submitted Includes Endorsement Cash - Only select Yes if payment is being applied for an endorsement that is to follow. Do not select if endorsement has already been processed. Submit payment ACCOUNT HISTORY - Lists bills, paid notices, claims notices, endorsement credits and payment adjustments Enter policy number or search by insured's name Select Retrieve Transactions CREATE NSF ENTRY - Allows electronic submission of a non-sufficient fund check Enter policy number or search by insured's name Highlight the corresponding paid notice for the NSF check Select NSF Enter all data fields NSF Amount - The amount of the check NSF Fee Amount - The amount the bank charged the agency Reason Code - Select option Check Number - Insured's check number Processed By - Agent's name or initials - A copy of the front and back of the check and proof of bank fees need to be faxed to the Company at A fax cover sheet will be available to print after submitting NSF entry 21

22 ENDORSEMENTS - Allows endorsing of a policy via web Enter policy number or search by insured's name Enter applicable data on each screen Select Next to be continue to next screen Any errors on the screen will be displayed in red. Errors will prevent you from navigating to the next screen. Quote amount will be displayed on the Summary screen Select Rate All Endorsements, found at the top of the screen, to quote the endorsements If not electronically submitting changes after the quote, select Cancel All Endorsements, found at the top of the screen. Select Submit All Endorsements, found at the top of the screen, to process the quoted endorsements on the policy. - Note: When adding a lien or lease holder to a policy, make sure to enter the correct information. Even if a lien or lease holder is questionable, indicate yes for lien or lease holder since a lien or lease holder could affect the premium. - Endorsements that can be processed via web ELIGIBLE ENDORSEMENTS Change mailing address Change marital status of existing drivers Add driver including violations Add, delete and replace vehicles Add, delete and replace lien or lease holder information Add, delete and replace garaging information Add, delete and replace coverages Print policy documents Endorsement payments REPRINT ENDORSEMENT DOCUMENTS - Reprint endorsement confirmation up to 2 weeks after submission Only available for endorsements processed online TEMPORARY ID CARD REPRINT - Prints temporary ID cards Only available if policy is in active status INELIGIBLE ENDORSEMENTS Cross policies (insured has 4 or more motorcycles insured) Cancelled or policies pending cancellation Change from owner's to broad form or vintage policy or vice versa Add or remove driver or vehicle discounts Remove drivers Trike addition and/or modification Recreational vehicle policies Change Named Insured s name Transfer policy to another state Agent of record changes Adding a fourth motorcycle to the policy POLICY STATUS POLICY NUMBER INQUIRY - Allows a search by policy number to view current details of a policy Provides links to other policy functions such as payments and endorsements POLICY NAME SEARCH - Allows a search by the insured's name to view current details of the policy Provides links to other policy functions such as payments and endorsements 22

23 AGENT / PRODUCER ADMINISTRATION ADD / CHANGE BANK INFORMATION - Allows changes to an agency's banking information used for agent EFT's Sweep will occur 72 hours after submission CUSTOMER NOTICE ACTIVITY REPORT - List of all customer transactions such as billing notices, cancellations, non-renewals, claims notices, paid notices, reactivations, etc. Enter start and end date of range in which data is being searched Enter agent number Select Print to print document or select Print Preview to view the document TRANSACTION HISTORY REPORT - List of all uploaded payment transactions with multiple sorting options Enter start and end date of range in which data is being searched Allows search of all transactions in the last 120 days, by last name, policy number and state, or agent/producer number EFT TRANSACTION HISTORY RETRIEVAL - Lists all payments uploaded through agency's EFT account Data is stored for up to 90 days after the transaction date OTHER SERVICES VEHICLE SYMBOL LOOKUP - Search for automobile symbols with year, make and vehicle identification number CYCLE MODEL GROUP / SYMBOL LOOKUP - Search for motorcycle symbols with year, make and vehicle identification number SUPPLY ORDERING - Order and print documents online MERCHANDISE CATALOG - Purchase Sentry/Dairyland merchandise online RULE AND UNDERWRITING GUIDES - View and print Rule Guides and Underwriting Rules SYSTEM MAINTENANCE CHANGE YOUR PASSWORD - Enter current password, new password and confirmation of new password (changed immediately) LOGOUT - This task must be performed before exiting INFORMATION MESSAGES - Displays the most current information and announcements CONTACT US - Displays contact information for Dairyland Insurance 23