ALABAMA DP-1 DWELLING

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EFFECTIVE: 11/01/07 A Stock Insurance Company 8655 E Via De Ventura Scottsdale, AZ 85258-3321 (800) 535-13 33 (480) 483-8666 A.M.

risk. Some situations may arise that are outside the scope of this manual.

1 EFFECTIVE: 11/01/07 A Stock Insurance Company 8655 E Via De Ventura Scottsdale, AZ (800) (480) A.M. Best Rated A, Excellent ALABAMA DP-1 DWELLING UNDERWRITING GUIDELINES This manual is provided for your use as one of many decision-making tools in the acceptability of a risk. Some situations may arise that are outside the scope of this manual. In those circumstances, you should obtain as many facts about the risk as possible and contact your General Agent to discuss acceptability. This manual is not all-inclusive. Please use it as a guideline for acceptability and call your General Agent with any questions you have or risks you are uncertain about. G6013R0807

2 PROGRAM INDEX PROGRAM INDEX... 1 ELIGIBILITY AND COVERAGES... 2 PAGE GENERAL INFORMATION...3 DEFINITIONS...3 BINDING AUTHORITY...4 CALCULATION OF PREMIUM...4 TERRITORY DEFINITIONS...4 UNDERWRITING GUIDELINES:...5 DISCOUNTS/SURCHARGES...6 1

3 ELIGIBILITY AND COVERAGES ELIGIBILITY Market Policy Term DP-1 The dwelling program is for risks that are 1-4 Family Dwellings, which are owner occupied or rental. The dwelling must meet the underwriting rules as outlined in this manual. 12 months Minimum Value 25,000 Maximum Value 150,000 Occupancy Number of Families Owner, rental, seasonal vacant 1-4 family Protection Class Protection Class 1-10 Loss Settlement Condition of Dwelling Wiring Plumbing Heating Roof Actual Cash Value Home must be of sound structure. The home may be in need of paint or minor repair. No knob and tube wiring. 60 amp service is acceptable if a certificate from a licensed electrician stating the wiring is up to current code accompanies the application. Updates are not required. Updates are not required. Updates are not required. Prior Losses Submit if the applicant has had 2 or more property losses in the past 36 months or any single fire, theft or liability loss in the past 36 months. Previous Insurance If the applicant has had a lapse in coverage longer than 60 days, the risk must be submitted unbound. COVERAGES Other Structures Personal Property Fair Rental Value Additional Living Expense Limited Theft Coverage Radio & TV Antennas, Signs & Awning Coverage Vandalism and Malicious Mischief Personal & Premises Liability Medical Payments DP-1 (Rental risks only) (Owner occupied risks only) 2

4 GENERAL RULES ELIGIBLE RISKS AND REQUIREMENTS: One to four family dwellings which are owner occupied (primary/permanent or seasonal/secondary) or rental in nature. POLICY TERMS: A policy may be written for a twelve (12) month term only. EXPENSE CONSTANT: A $20 expense constant will be charged on all new and renewal policies. This fee will be fully earned. WHOLE DOLLAR PREMIUM ROUNDING: All policy and endorsement premiums will be a full dollar amount. For this purpose, an amount of fifty(50) cents or more will be rounded to the next whole dollar. MINIMUM PREMIUMS: A minimum written premium of $100 will apply for each new and renewal policy for non-vacant risks and $200 will apply for each new and renewal policy for vacant risks. CHANGES OR CANCELLATIONS: a. If the insurance is canceled or reduced at the request of the Company or the insured, the unearned premium will be computed on a pro-rata basis. b. If insurance is increased or reduced, the additional or unearned premium shall be computed on a pro-rata basis, subject to the minimum retained premium. DEFINITIONS SINGLE DWELLING DEFINITION: a. All dwellings or sections of dwellings which are accessible through unprotected openings shall be considered a single dwelling (including Hardy Plank). b. Dwellings which are separated by space shall be considered separate dwellings. c. Dwellings or sections of dwellings which are separated by an 8 inch masonry party wall which pierces or rise to the underside of the roof shall be considered separate dwellings. Communication between dwellings with independent walls or through party walls, must be protected by at least a Class A Fire Door installed in a masonry section. PROTECTION CLASSIFICATION CODES: Protection Class Code Protection Class Code PROTECTION INFORMATION: The ISO Protection Class listings in the Public Protection Classification manual apply to risks insured under the Dwelling Program policies. 1. The protection class indicated applies in a municipality or classified area where a single class of fire protection is available throughout. (8, 7, 6, etc.) 2. In a classified area where two or more classifications are shown (e.g., 6/9), the classification is determined as follows: DISTANCE TO FIRE STATION CLASS a. 5 road miles or less with a hydrant or ISO approved water source within 1,000 feet * *First protection class (e.g. 6/9. Use 6) b. 5 road miles or less with a hydrant or ISO approved water source beyond 1,000 feet 9 c. Over 5 road miles All Other properties are Class 10. CONSTRUCTION DEFINITIONS: a. Frame: Exterior walls of wood or other combustible construction, including wood ironclad, stucco on wood or plaster on combustible supports. b. Masonry: Exterior walls constructed of masonry materials such as adobe, brick, concrete, gypsum block, hollow concrete block, stone, tile or similar materials, and floors and roof of combustible construction. OCCUPANCY DEFINITIONS: Primary/Permanent: Dwelling owned by the named insured and occupied by the named insured on a primary/permanent basis. Rental: Dwelling owned by the named insured but occupied by others. The dwelling is rented to others for residential purposes. Seasonal/Secondary: Dwelling owned by the named insured and occupied by the named insured on an incidental basis. No occasional rentals are to be written. 3

5 BINDING AUTHORITY For coverage to begin as requested, the application must be fully completed, signed and mailed to the General Agent within 48 hours of the effective date, otherwise coverage is bound 12:01 A.M. the day received by the General Agent. No coverage may be bound or increased within 72 hours of the announcement of an impending disaster, i.e. hurricane, tropical storm, volcanic eruption, earthquake, flood, mudslide, brushfire, etc. A. No policy or coverage may be written or bound on New Business when any hurricane is within the areas of 65 degrees West and 100 degrees West Meridians and 15 degrees North and 37 degrees North Parallels. B. No policy or coverage may be written or bound on New Business when any tropical storm is within 75 degrees West and 100 degrees West Meridians and 20 degrees North and 37 degrees North Parallels. C. No endorsements to existing policies may be issued increasing the amounts of insurance on the Mobile Home, personal effects, cabanas, awnings, carports, or shelters while a hurricane or tropical storm is within the above quadrants. Renewals of expiring Standard Guaranty Insurance Company policies may be written providing there is no dramatic increase in coverage, such as higher amounts of insurance on the Mobile Home, personal effects, cabanas, carports, awnings, screen rooms, etc. When a hurricane or tropical storm is centered over a land mass headed in a direction away from the sea, and the wind velocity at the eye has been reduced to 60 miles per hour or less, all restrictions indicated herein are removed. It is expected that all producers will follow the spirit as well as the letter of this necessary underwriting procedure. PREMIUM CALCULATION PREMIUM CALCULATION: The Discounts that are percentage based (Example: 15%) will be totaled and the Charges that are percentage based will be totaled. After both criteria are totaled, the difference between the totals (Example: +15%, - 20% = -5%) will be applied to the appropriate premiums. The percentage Discounts and Charges will be calculated before the dollar (Example: $15) Discounts and Charges. (This includes any Deductible Options that the insured may select.) The Discounts and Charges will apply to the BASE PREMIUM. Base Premium is defined as the amounts of Coverage A (Dwelling), Coverage B (Other Structures), Coverage C (Personal Property), and Coverage D (Fair Rental Value) PLUS any increases in Coverages B, C & D. TERRITORY DEFINITIONS: TERRITORY DEFINITIONS Territory A: Remainder of State (Entire state except those counties shown in territories B & C). Territory B: Blount Calhoun Cherokee Clay Cleburne Colbert Cullman DeKalb Etowah Fayette Franklin Jackson Jefferson Lamar Lauderdale Lawrence Limestone Madison Marion Marshall Morgan Randolph St. Clair Talladega Walker Winston Territory C: Mobile and Baldwin Counties (Includes offshore islands). 4

6 DP-1 UNDERWRITING GUIDELINES UNACCEPTABLE RISKS DO NOT BIND, DO NOT SUBMIT 1. Applicants that have been convicted of arson or insurance fraud. 2. Homes without permanently installed water, electricity, and sewage utility services. 3. Homes with existing structural damage. 4. Homes that are in foreclosure. 5. Homes with more than 4 individual family units. 6. Homes with liquid fuel-powered space heaters or heat reclaiming devices. 7. Homes where the primary source of heat is a permanently installed space heater or a wood, coal or pellet-burning device. 8. Homes that have knob and tube wiring or electrical service with less than 100 amps. 9. Homes or structures used to store flammables or explosive materials. 10. Homes under construction or major renovation. 11. Homes next to any burned out or abandoned building. 12. Risks where the brush clearance is less than 100 feet from the home. 13. Mobile homes, earth homes, straw built homes, apartments, townhomes or condominiums. (Duplexes, Triplexes, and Fourplexes are okay). 14. Townhomes/Rowhomes built prior to Homes with more than 2 lien holders. Two lien holders are acceptable if one is a financial institution. 16. Homes with childcare, homecare, lodging, auto repair or chemical processing conducted on the premises. 17. Homes located in areas that are subject to floods and mudslides. RISKS TO BE WRITTEN WITH NO LIABILITY COVERAGE 1. Any premises with a swimming pool or spa that does not have a four-foot fence with a self-latching gate or an automatic pool cover. 2. Any premises with a trampoline. 3. Homes without permanently installed steps at all entrances, including decks and patios. 4. Homes with steps or porches, over 2 feet in height, that do not have a railing. 5. Applicants who own, keep or shelter any of the following breeds: Akitas, Anatolian Shepherds, Chows, Dobermans, Pit Bulls, Rottweilers, Wolf or Wolf Hybrids, any mix Rottweilers, Wolf or Wolf Hybrids, any mix of these breeds, any animal with a previous bite history or any exotic (snakes, monkeys, etc.) animals. 6. Owner occupied risks in the name of a corporation. SUBMIT RISKS TO GENERAL AGENT DO NOT BIND 1. Applicants that have had 2 or more property losses in the past 36 months, or any single fire, liability, or flood loss in the past 36 months. If yes, give date of loss, describe the loss and the amount paid to repair the damage. 2. Applicants that have had a homeowners/dwelling policy cancelled or non-renewed for underwriting reasons (except age of home) during the past 36 months. 3. Applicants that have filed for bankruptcy in the past 36 months. 4. Applicants that have been delinquent in mortgage payments in the past 12 months. 5. Applicants who are unemployed. (Retirees with guaranteed income and disabled persons with a consistent income are considered employed.) 6. Homes with un-repaired damage or existing non-structural damage. 7. Applicants that have been uninsured for more than 60 days immediately prior to the requested effective date. (Does not apply to a new purchase). 8. Any premises with a dock, pier or boathouse. (Photos must be included.) 9. Homes with more than 2 unrelated owners. 10. Homes attached to, occupied as, or converted from a commercial risk. 11. Homes that have an open foundation or are built on stilts. Photos must be included. 12. Homes equipped with a supplemental heating device that was not installed by a licensed contractor. Photos and the Woodstove Inspection Report must be included. 13. Homes within 1,500 feet of a river or creek, or homes on an island or in a Special Flood Hazard Area. 14. Homes with multiple horses, livestock or farm animals on the premises. 15. Any premises with 5 or more acres. 16. Homes with business or farming activities conducted on the premises. 17. Other Structures that exceed 100% of the value of the home or $25,000 whichever is greater. 18. Personal Property that exceeds 100% of the value of the home or $25,000 whichever is greater. 5

7 DISCOUNTS/SURCHARGES DEDUCTIBLE OPTIONS: The discount/surcharge is applied to the BASE PREMIUM which includes a $500 All Other Perils/$1,000 Windstorm/2% Named Storm deductible. DEDUCTIBLE DISCOUNT/SURCHARGE $250 All Other/$1,000 Wind...Surcharge: 5% $500 All Other/$1,000 Wind...Base: Included $1,000 All Other...Discount: 5% $2,500 All Other...Discount: 15% PROTECTIVE DEVICES DISCOUNTS: A discount will apply if the home has smoke alarms, dead bolt locks and a fire extinguisher. Discount:...5% A discount will apply if the home has an active Central Station Fire Alarm System. Discount:...5% BANKRUPTCY SURCHARGE: This surcharge must be applied if the applicant has filed any bankruptcy in the last 36 months...15% CLAIMS SURCHARGE: This surcharge must be applied if the applicant has had claims (paid losses) in the last 36 months. Weather claims will not be considered. No. of Claims Surcharge 2 Claims 10% 3 Claims 25% SUPPLEMENTAL HEATING SURCHARGE:... 5% A surcharge will apply to all homes equipped with a wood, coal or pellet stove or heater, or any other supplemental heating system. This does not apply to a masonry fireplace. MULTIPLE FAMILY SURCHARGE: 3 or 4 family Surcharge:...20% A surcharge must be applied if the home is a multiple family dwelling (example: duplex) SEASONAL SURCHARGE:... 5% A surcharge must be applied if the home is used on a seasonal basis. RENTAL SURCHARGE:... 5% A surcharge must be applied if the home is a rental. AGE OF HOME CREDIT: Age of Home 0-7 Years...15% 8-15 Years...10% Years...5% LOSS FREE/RENEWAL CREDIT: A discount will apply if the insured has been loss free for the last 12 or 24 months with Standard Guaranty and the policy renews with Standard Guaranty or if the agent has written the risk for the last 12 or 24 months and has been loss free. Year One:...5% Year Two:...10% WINDSTORM AND HAIL EXCLUSION CREDIT:...50% A credit of 50% is applied to the BASE PREMIUM. Credit INSURED AGE 50+ CREDIT:... 10% TOWNHOME/ROWHOME SURCHARGE: 3 or 4 Units... 10% 5 or more... 25% 7

New Hampshire Dwelling Program

EFFECTIVE: 03/01/11 NEW American Reliable Insurance Company New Hampshire Dwelling Program SURPLUS LINE MANAGERS, INC., CMGA A Minuteman SERVICE Company P.O. Box 490 Goffstown, NH 03045-0490 LOCAL 603-497-1778