Government Employees Insurance Company Executive Summary Late Update 2/18/2010

Transcription

1 Government Employees Insurance Company Executive Summary Late Update 2/18/2010 Initial Filing May 18, 2009 Policy Changes Towing and Labor replaced by Mechanical Breakdown Insurance (Part 13) 5. Your Auto B. Any auto, except a motorcycle, while used as a temporary substitute, with the permission of the owner, while 6. Trailer means implement. The trailer must be pulled by your auto. Part 1. Added in middle of first paragraph: We will not pay for punitive or exemplary damages. Part 3. Added We will not pay for punitive or exemplary damages. The most we will pay to or for anyone injured in the following situations is $35,000 per person and $80,000 per accident or the limits you purchased, whichever is less: 3. Anyone injured while using an auto in any racing, speed, stunting or demolition contest or activity, whether or not prearranged or organized, or in practice Part 4. After first paragraph: Damages do not include compensation for any diminution of value claimed to result from the loss. And the following was added: The following are not covered: A. The United States of America or any of its agencies. B. Any person while using an auto in the course of his employment by the United States Government if the Federal Tort Claim Act requires the Attorney General of the United States to defend that person in any civil action or proceeding for bodily injury or property damage, whether or not the accident has been reported to the United States or the Attorney General. C. The Commonwealth of Massachusetts or any of its agencies. We will not pay for property damage which occurs: 3. In addition to the above exclusion for the business of selling, servicing, repairing or parking autos, while anyone is using a vehicle in the course of any business. This exclusion also applies to private passenger autos, pick-up trucks, vans, and similar vehicles used for delivery or transportation of goods or materials unless such use is incidental to your business of installing, maintaining or repairing furnishings or equipment. Part 5. also the same as exclusions as Part 4. A., B. and C listed above. We will not pay or defend: 4. For any liability assumed under any contract or agreement. 5. For punitive or exemplary damages. Part 5. also includes same language as Part 3. regarding racing, speed, stunting or demolition. Part 6. contains the following exclusions: 7. Any person, if such person s conduct contributed to his bodily injury under any of the following circumstances: a. causing bodily injury to himself intentionally; b. while committing a felony 8. The United States of America or any of its Agencies as an insured, a third party beneficiary or otherwise. Part 6. also includes the same language regarding speeding, etc. Part 7. The following language was added to end of the first paragraph: The cost to physically repair the auto is limited to the prevailing competitive price, which is the price we can secure from a competent repair facility conveniently located to you.

2 Unless you have purchased agreed amount coverage, actual cash value of the property will be determined at the time of the loss and may include an adjustment for depreciation/betterment and for the physical condition of the property. Part 7. also includes the same language regarding speeding, etc Part 8. includes the same language as Part 7. added to the end of the first paragraph and the same speeding, etc. language. Part 9. includes the same language as Part 7. added to the end of the first paragraph and the same speeding, etc. language. Transportation expense under Part 9 is $25 a day to a maximum of $750. Part 10. Rental Reimbursement (new name) includes the following paragraph at the end: Reimbursement for rental charges and transportation expenses shall end the earliest of when your auto has been: 1. Returned to you; 2. Repaired; 3. Replaced: or 4. If your auto is deemed by us to be a total loss, then seventy two (72) hours after we pay the applicable limit of liability under Part 7, Part 8 or Part 9. Part 11. Emergency Road Service (new name) If you have purchased Emergency Road Service, we will pay reasonable expenses you or a household member incur, or other person using your auto with your permission incurs, for: 1. mechanical labor up to one hour at the place of breakdown; 2. lockout services up to $100 per lockout if keys to the auto are lost, broken or accidentally locked in the auto; 3. if it will not run, towing to the nearest repair facility where the necessary repairs can be made; 4. towing it out if it is stuck on or immediately next to a public highway; 5. delivery of gas, oil, loaned battery, or change of tire. WE DO NOT PAY FOR THE COST OF THE GAS, OIL, LOANED BATTERY, OR TIRE(S).OBTAINING SERVICE UNDER THIS COVERAGE You may secure service under this amendment in the following manner: SIGN AND DRIVE The first method, called "sign and drive", features a toll-free number in which the insured calls a GEICO Emergency Road Service representative who will dispatch a service vendor. Upon verification of Emergency Road Service (ERS) coverage, reasonable and necessary charges for covered services provided will be automatically billed to the Company by the service vendor. The insured need only sign a receipt at the time of service which authorizes the Company to directly pay the service vendor. Any additional mileage, other fees not specifically addressed above, or lockout services in excess of $100 will be at the insured's expense. HIRED SERVICES The second method occurs when the insured does not use the sign and drive feature described above and hires services without prior approval from the Emergency Road Service (ERS) Department. Upon verification of Emergency Road Service (ERS) coverage, an insured will be reimbursed for covered services provided, up to a limit of $50. Lockout services are limited to $100. Requests for reimbursement must be accompanied by an original itemized receipt and must be submitted within three years of service. There will be a limit of one reimbursement per disablement. Part 12. Additional language: If you are injured while occupying your auto and have two or more Massachusetts auto policies which provide coverage at different limits, the

3 policy with the higher limits will pay. If there are two or more policies which provide coverage at the same limits, we will only pay our proportionate share. Part 12 also includes the speeding, etc. language and the punitive and exemplary damages language. General Provisions and Exclusions 3. Additional Costs We Will Pay. Replaced B. Interest that accrues after judgment is entered in any suit we defend. We will not pay interest that accrues after we have offered to pay up to the limits you selected. with: B. Interest calculated on that part of a judgment that is within our limit of liability and accruing after judgment, and until we pay, offer to pay, or deposit in court, the amount due under this coverage. 8. We Do Not Pay for Nuclear Losses, War Losses, or Terrorism 21. Assignment With respect Collision (Part 7), Limited Collision (Part 8) and Comprehensive (Part 9) an assignment of interest under this policy will not bind us without our consent. Any non-conforming assignment shall be void and invalid. Moreover, the assignee shall acquire no rights under this contract and we shall not recognize any such assignment. This limitation upon assignment shall not affect our right to subrogation under this contract. Cancellation and Renewal The following sections were changed or added: We can cancel 3. There is a suspension or revocation during the policy period of the operator s license or motor vehicle registration of you or any other person residing in the same household as you and who usually operates a motor vehicle insured under the policy. 4. You fail to comply with a request for a motor vehicle safety inspection test for a vehicle that was previously totaled in a prior accident. 5. Your failure to complete and furnish us with a renewal application on a form prescribed by the Commissioner at least 30 days before the expiration of the previous policy period. If the driver s license or auto registration of anyone residing in your household who usually operates your auto has been under suspension or revocation during the policy period, we may suspend coverage for that person under any of the Optional Insurance Parts of the policy. We may also reduce the limits for that person under Bodily Injury Caused By An Uninsured Auto and Damage to Someone Else s Property (Parts 3 and 4) to the minimum limits we are required to sell. We can cancel Emergency Road Service (Part 11) for reasons other than those listed above if we do so within the first 90 days of the policy period. We can cancel, for reasons other than those listed above if we do so within the first 90 days of the policy period, coverage limits which are higher than the limits we are required by law to sell you and any coverage designed to reduce the deductibles set by law. Automatic Termination The following sentence has been removed from 3.: In this case, the policy will terminate 30 days from the date of transfer of title. ADDITIONAL NOTES ABOUT GEICO FILING: Online Application asks for sex and marital status Additional Driver History Questionnaire asks for date of birth, sex and marital status Business Use Questionnaire asks for date of birth and age of other drivers Driver License Information asks for date of birth and marital status

4 RULES Rule G-02. Determination of Rating Territory All Coverages Territories appear to be MAIP/2008 AIB Territories Vehicles garaged out-of-state but registered in MA will use the rating territory of registration address. Rule G-03. Policy Period Term Rules GEICO offers 6 or 12 month policy. Rates in manual are for 12 month policy. Rule G-04. Installment Payments GEICO offers seven different payment plans for six month policies. GEICO offers 1, 4, 6, 9, 12 and 12 payment plans for 12 month policies. Rule G-05. Cancellations and Changes All cancellations and changes are pro-rata. Rule G-06. Suspension of Coverage All coverages except Comprehensive can be suspended. Liability may not be suspended for risks for which a certified financial responsibility filing is in effect. (Will GEICO report this to RMV so that plates are revoked?) Rule PPA-01. Definition All Coverages A private passenger automobile is: A. a motor vehicle of the private passenger type that is not used as a public or livery conveyance for passengers nor rented to others pursuant to the terms of a motor vehicle rental agreement; or B. utility vehicle of the pick-up, panel or van body type with a gross vehicle weight of 15,000 pounds or less, that is not used as a public or livery conveyance for passengers, but rather is used for personal and family pleasure, commuting and/or business purposes. A utility vehicle that is customarily used for wholesale or retail delivery or commercial transportation of property is excluded from the private passenger automobile definition. PPA-02. Premium Determination spells out how rates are determined. Rounding is to nearest whole penny. PPA-03 Classifications A. Driver Level 1. Operator Class uses MAIP/AIB classifications 2. Driver Definitions i. Rated Driver any licensed driver listed on a policy who is not classified as cancelled, excluded, deceased, deployed, having other insurance, or having a learner s permit. Ii. Years Experience The number of years licensed in U.S. and Canada. Other foreign driving experience will be accepted if the company is provided with a certified English language translation of the vehicle operator report from the applicable country. B. Vehicle Definitions 1. Use of the Automobile a. Pleasure/Farm Use not used in business or commuting b. Commuting Use not used for business and is driven to and from work c. Business Use required or involved in the duties of the applicant or any customary operator in his occupation, profession or business other than commuting. GEICO uses its own vehicle classification symbol by body, style, make and model year and vehicle cost symbol. C. Policy Definition 1. Liability & Physical Damage Policy at lease one vehicle carries collision

5 2. Liability Only does not qualify as Liability & Physical Damage Policy 3. Driver Count number of rated drivers 4. Vehicle Count number of vehicles listed D. Assignment of Operators The following are the guidelines for the assignment of an operator to an automobile: 1. Unless otherwise noted, the driver who primarily operates the vehicle will be assigned to that vehicle. 2. Drivers with a Learners Permit will not be evaluated for Assignment of Operators to Automobiles. 3. For the purpose of this section, inexperienced operator is defined as a driver with less than 6 years of experience. 4. An individual in active military service with the Armed Forces of the U.S.A. who is deployed shall not be considered a driver of the automobile unless such individual customarily drives the automobile. 5. An inexperienced driver who is absent from the household while attending a recognized college or educational institution more than 100 miles by road from the location where the automobile is principally garaged or kept will not be rated as a driver of the automobile unless they customarily drive the automobile. 6. When a vehicle is used by both an experienced and an inexperienced operator, the inexperienced operator will be assigned to that vehicle if that is the vehicle the inexperienced driver primarily operates 7. When there are more vehicles than drivers on a policy, the vehicles over and above the number of operators will be rated with no merit point and: a. If there is a Rated Driver aged 65+ with 6 or more years experience on the policy, Operator Class 15 will apply to the excess Vehicle; or b. If no Rated Drivers on the policy are aged 65+ and have 6 or more years of experience, Operator Class 10 will apply to the excess Vehicle. 8. The vehicle will be rated with the merit points from the operator assigned to that vehicle. Merit points for unassigned Rated Drivers are assigned to the car they operate the most. These merit points are added to the points from the assigned driver. Rule PPA-04. Rating Plan (merit rating) 5-year experience period 6 if earliest year is clean Major and Minor accidents are defined the same as 2006 Plan Major Violations include: Driving to Endanger or Reckless Driving; Leaving Scene of Accident after Property Damage or Personal Injury and Death; Liquor and Narcotics, operating under the influence; Liquor and Narcotics, operating under the influence of and reckless operation causing serious injury; Operating after Revocation of License; Operating after Suspension of Drivers License; Refusing to Stop for Officer; Vehicular Homicide; Manslaughter (only if by Motor Vehicle). Out-of-State Major Incidents: Operating under the influence of Liquor and/or narcotics; Vehicular Homicide. Additional Incidents (on or after 10/28/2005: OUI while License Suspended for OUI; Child Endangerment While OUI; Manslaughter while OUI. Additional Incidents (after 1/1/2006): Permit unlicensed suspended operator of motor vehicle; Permit operation without ignition interlock; operate without ignition interlock; tamper with ignition interlock; bypass ignition interlock for another. All other traffic convictions are minor violations. GEICO s merit rating plan also includes the following: Convictions include those violations for which the applicant or any Rated Driver of the vehicle has been convicted or paid a fine. Convictions also include violations for which there have

6 been a forfeiture of bail or collateral, a plea of nolo contendere, or a prayer for judgment continued. Merit Point Calculation follows the 2006 Plan. C. The company will use the following sources of information to assign proper factors: the company s own records, motor vehicle records, applicant s statements or insured s statements on self-reporting forms, C.L.U.E., and current carrier. Discounts include: Good Student, 65+, Multi-Car, Military, Sponsored Marketing Group Pricing Track, Associate, Multi-Line, Marketing Partnership, Ant-Theft, and New Vehicle. Rule PPA-P-01. Risk Tier uses following characteristics: cancellation notices, convictions, current insurance status, days quoted in advance of current policy expiration, lending losses (accident while operated by unlisted driver), length of current residence, negligent accidents, non-negligent accidents, number of drivers, number of drivers added, number of vehicles, number of vehicles added, prior limits of liability, reissues, suspensions, theft/vandalism claims, years insured with current insurer, years licensed, and years with GEICO. November 12, 2009 New Business December 17, 2009 Renewal Business Filing 09SEP Overall Rate Impact 0% Risk Tier Factors Nine new factors added. Initial Rate Filing was not available from the DOI on 5/5/08...just the groups May 18, 2009 Initial Filing Filing 09MAR Overall Rate Impact 0% Group Filing November 12, 2009 New Business December 17, 2009 Renewal Business Filing 09SEP Overall Rate Impact 0% Risk Tier Factors Nine new factors added. December 13, 2009 New & Renewal Business (Multiple Filings) Filing # 09OCT Overall Rate Impact 0% Installment Payment Plan Filing # 09OCT Overall Rate Impact 0% Revision to Installment Payment Plan February 15, 2010 New Business March 30, 2010 Renewal Business Filing # 09DEC24268 Overall Rate Impact 0% Introduction to Tier Rating for Rental Reimbursement Coverage April 22, 2010 New Business & May 31, 2010 Renewal Business Filing # Overall Rate Impact 0% Adopted the ISO s Physical Damage Symbol Expansion for 2011 and later model years.