CALIFORNIA UNDERWRITING & RATE MANUAL

Transcription

1 CALIFORNIA UNDERWRITING & RATE MANUAL Administered by: ACCESS GENERAL INSURANCE AGENCY OF CALIFORNIA, LLC CDI#0C21630 PO Box Atlanta, Georgia ACA RATER Edition 17 (9/01/14) 1

2 Customer Service Policy Status, Billing Inquiry, Payments, Endorsements, Commissions, Reports 24/7 Policy & Payment Access Broker Support Line Insured Customer Service Underwriting Fax Applications & Correspondence PO Box , Atlanta, GA Broker NSF Replacement Funds Attention NSF Department PO Box , Atlanta, GA Payments PO Box , Atlanta, GA Voids See Page 8 Claims New Loss & Claim Inquiry Fax Sales Fax ssc@access.com Effective for New and Renewal Business on September 1,

3 TABLE OF CONTENTS SECTION 1: GENERAL INFORMATION 4 MULTIPLE CAR DISCOUNT 13 COMMISSIONS 4 PERSISTENCY DISCOUNT 13 INSTALLMENT FEES 4 GOOD DRIVER DISCOUNT #1 13 PAYMENT TYPES 4 GOOD DRIVER DISCOUNT #2 13 PAYMENT OPTIONS 4 ANTI-LOCK BRAKES DISCOUNT 13 INSTANT ACCESS 5 ANTI-THEFT DEVICES DISCOUNT 13 REINSTATEMENTS 5 MATURE DRIVER DISCOUNT 13 RETURNED CHECKS 6 DECREASED PROPERTY DAMAGE LIMIT DISCOUNT 14 BINDING 6 OCCASIONAL VEHICLE DISCOUNT 14 APPLICATIONS 6 ACADEMIC DISCOUNT 14 SEVERE WEATHER RESTRICTIONS 7 NON-SMOKER DISCOUNT 14 SR-22 S 7 DAYTIME LIGHT DISCOUNT 14 POLICY ISSUANCE 8 NON-OWNER DISCOUNT 14 ENDORSEMENT GUIDELINES 8 DRIVER CLASSIFICATION 14 RENEWAL GUIDELINES 8 NON-OWNER GUIDELINES 14 CANCELLATION GUIDELINES 8 SYMBOLS 15 VOIDS 9 POLICY TERM 16 UNACCEPTABLE RISKS 9 WHOLE DOLLAR/ MINIMUM BILLING 16 POLICY FEES 10 ANNUAL MILEAGE REQUESTS 16 POINT SCHEDULE 17 SECTION 2: CLAIMS SERVICE 10 VIOLATIONS 18 FOREIGN DRIVER S LICENSE 19 SECTION 3: DEFINITION OF A PRIVATE MULTIPLE OPERATORS/MULTIPLE 11 PASSENGER AUTO VEHICLES RATING PROCEDURE 19 ARTISAN OR BUSINESS USE 19 SECTION 4: COVERAGES 11 UNACCEPTABLE VEHICLES 20 LIABILITY LIMITS 11 MEDICAL PAYMENTS 11 UNINSURED/UNDERINSURED MOTORISTS 11 PHYSICAL DAMAGE DEDUCTIBLES 12 RENTAL REIMBURSEMENT & TOWING 12 SECTION 5: RATING RULES 13 DISCOUNTS 13 Effective for New and Renewal Business on September 1,

4 Section 1: General Information 1.0 General Information All applications, coverage selection/rejections, waivers and other contractual items must be signed by the Named Insured or the person signing these should be authorized by the Named Insured. Documents should be retained in your office and also faxed to This also applies to subsequent policy changes. Any date and time reference reflects the date and time the transaction became effective in the garaging zip code provided to The Company. 1.1 Commissions Refer to the agreement for commission levels. A commission statement listing all transactions is rendered monthly and can be retrieved by logging into our website with the broker code and password and clicking on My Commissions. If the statement has a net balance due the Company, payment is due upon receipt. If net balance is due your agency, a check for the net balance will be included with the statement. THE COMPANY DOES NOT ALLOW DOUBLE BROKERED BUSINESS. ALL BUSINESS MUST BE PRODUCED BY YOUR AGENCY STAFF. DOUBLE BROKERING BUSINESS IS GROUNDS FOR IMMEDIATE TERMINATION OF YOUR AGENCY AGREEMENT. 1.2 Installment Fees An Installment Fee of $15 per installment will be applied to all installment payments. This charge will not apply to any payments made which did not require an additional billing process. For each installment subsequently billed, the service charge will be assessed. On Renewals, the charge will not apply to the initial payment. For each installment subsequently billed, the service charge will be assessed. 1.3 Payment Types Full Payment For those insureds who desire to pay the full premium in advance, select the full payment option and your trust account will be electronically swept for the full payment amount. Your commission will be credited to your account. Additional/return premiums will be billed/refunded directly to the insured. Direct Bill Our direct bill program offers the insured the convenience of a low down payment and easy installments. Please collect the required down payment for the selected payment option and do not deduct commission from the down payment. The down payment will be swept from the Broker s trust account within 72 hours of upload. If the Broker s check is returned as NSF, the policy is null and void. A Broker may request cancellation effective back to the inception date if the insured s down payment check is returned for insufficient funds. A copy of the front and back of the returned check is required. 1.4 Payment Options Automated Inquiry You can save time obtaining policy status and payment information by using our automated inquiry system. Dial and when your call is answered, you will be prompted to enter the insured's policy number from your touch tone phone. You may also inquire about policy status by using our website, Credit Card The Company will accept down payment and monthly installment payments via VISA, Discover or MASTERCARD for other than the full payment plan. Requirements include type of card, credit card number, expiration date, cardholder name, policy number and billing address. Effective for New and Renewal Business on September 1,

5 In the event the Company is unable to collect premium payment from VISA, Discover or MASTERCARD, the policy is subject to cancellation for non-payment of premium. The Company is deemed unable to collect payment when: 1. the issuing bank cancels or revokes the card; or 2. the policyholder has reached his/her credit limit; or 3. the issuing bank does not honor the premium payment, for whatever reason, upon the Company s request. Electronic Funds Transfer (EFT) This plan allows your customer to have monthly payments automatically withdrawn from his/her checking account with Electronic Funds Transfer (EFT). The direct bill installment fee described above will be added to each payment. The benefits of EFT monthly billing are: 1. no bill needs generation every month, and 2. it improves policy retention. NOTE: The first and subsequent installments will be withdrawn from a policyholder s personal account within 3 business days of the payment due date. Updated payment schedules and payment confirmations are sent via for EFT subscribers. EFT billing requires an acceptance of a disclosure which outlines the terms and conditions of the EFT program. This disclosure will be displayed on the enrollment screen when EFT is selected at new business and will also print on the Authorization Agreement. IMPORTANT NOTICE: Endorsements should be submitted online immediately so that a revised payment schedule can be issued promptly. Any change in the applicant or insured s banking information should be updated on the billing screen of our website at In the event that the Company is unable to collect premium payment from an EFT transaction, the policy is subject to cancellation for non-payment of premium. The Company is deemed unable to collect payment when: 1. the bank or other financial institution cancels or revokes the transaction; or 2. the policyholder has no funds available in the account; or 3. the bank or financial institution does not honor the premium payment, for whatever reason, upon the Company s request. Payments Payments may be mailed to the following address: PO Box , Atlanta, GA All payments will be applied to the insured s account on the date after postmark if mailed. Electronic payments will be applied to the insured s account on the date received by the Company. 1.5 Reserved for Future Use 1.6 Instant Access The Instant Access Plan permits a Broker to submit new business and endorsements directly through our own website: Applicants who select this plan will submit their down payment followed by bills generated approximately monthly for the remaining installments, based on the term of the policy. All documents generated at point of sale must be delivered to the insured. 1.7 Reinstatements If the payment is made after the cancellation date, the policy will be reinstated with a lapse in coverage. For payments made: By mail: Payment will be applied to the insured s account on the date after postmark; Electronically or by phone: Payment will be applied to the insured s account on the date received by the Company. The policy will be reinstated effective the date after the payment is received by the Company and a $10 fee will apply. Effective for New and Renewal Business on September 1,

6 Late Fee A $10 late fee will be assessed on each installment that is applied to the insured s account at least five (5) days after the due date indicated on the premium notice, or in the case of payments made in person, received by us or our broker at least five (5) days after the due date indicated. Payments will be applied to the insured s account on the date after postmark if mailed. Electronic payments will be applied to the insured s account on the date received by the Company. The fee is fully earned and non-refundable. Any payment received is applied to any outstanding fees first, then to the installment premium. 1.8 Returned Checks Insured Checks Payable to the Company If the insured s check is returned to us by the bank for non-sufficient funds (NSF): 1. New or Renewal down payment: if the policy has been in effect less than 60 days; coverage will be canceled flat; 2. Installment payment: coverage will be cancelled back to the prior cancellation date. There will be a $30 NSF fee applied to the policy. Insured's Check Payable to the Broker If you make payment on behalf of the insured with an agency check, you may request cancellation for nonpayment. Please provide a copy of the front and back of the cancelled check within the first 14 days. Agency Checks There will be a $30 NSF fee charged to the agency for any agency check returned by the bank. Repeated NSF occurrences will be grounds for termination of your agency agreement. 1.9 Reserved for Future Use 1.10 Binding New applications will be bound as of the time and date indicated if: Policy is uploaded electronically and the down payment sweep is successful. Application is complete and signed by applicant and broker prior to or on the effective date. Please fax the signed application within 3 business days to and retain the original in your office. If additional time is required, contact Underwriting for approval. Policies not electronically uploaded will be mailed back unbound. Risk is not shown as "unacceptable" per our underwriting rules. It involves a type of vehicle, coverage, and risk for which a premium rate appears in this guide. For policies providing Physical Damage coverage on Artisan or Business Risks, vehicle(s) must be inspected by the broker and pictures must accompany application. Vehicles must also be inspected by the broker if prior damage exists Applications Be sure that the applicant signs all portions of the application. If the applicant does not sign all portions of the application, this could cause up-rates, down-rates or cancellation of the policy. If the owner of the insured vehicle is a minor, a parent or legal guardian s name and signature must precede the owner s. Verify the VIN against the registration or plate in the auto. The Company uses a rating system which verifies vehicles and rates by VIN. If the VIN on the application is missing, incomplete or incorrect, it may result in a delay in processing, or incorrect rating or cancellation for unacceptability. Additional premium developed as a result of additional points from the MVR or rating errors will be billed immediately and due upon receipt. For a one month policy, additional premium will be included in the renewal offer. Uninsured/Underinsured Motorists Bodily Injury will be written at limits equal to Bodily Injury Liability limits unless the applicant chooses to reject Uninsured/Underinsured Motorists Bodily Injury Liability. If the applicant does not reject Uninsured/Underinsured Motorists Property Damage, the policy will be written with Uninsured/Underinsured Motorists Property Damage in the amount of: Effective for New and Renewal Business on September 1,

7 The Collision Deductible Waiver, if the policy includes Collision coverage; or The Actual Cash Value of the vehicle or $3,500 (whichever is less), if the policy does not include Collision coverage. A copy of the Vehicle Registration must be retained for every vehicle listed on the application. Routine inquiries may be made during the policy term. Undisclosed household members revealed as a result of an inquiry will be handled as follows: Household member that meet the current underwriting guidelines will be added to the policy. Household members that do NOT meet the current underwriting guidelines will be excluded Driver Exclusion Guidelines The Company shall not be liable for damages, losses, expenses, or claims arising out of the operation or use of any automobile described in the policy while being driven or operated by an excluded driver. To exclude a driver, the Named Insured must sign and date the Named Excluded Operator form. The exclusion shall apply to subsequent renewals; to reinstatements, substitutions or transfers of the policy; and to the addition or subtraction of any vehicles covered until revoked by the Named Insured in writing. All drivers must be listed on the application and must be rated or excluded. All persons who live in the household, who are age 14 or older, must be listed on the application. Unlicensed persons who live in the household, who are age 15 or older, must be excluded. The Named Insured may be excluded. A spouse may be excluded. A driver may NOT be excluded if the policy is certified as Financial Responsibility (SR-22) for that driver. In the event a broker designates a risk bound which does not conform to our underwriting guidelines, The Company will seek reimbursement from the broker for any claims it must pay incident to the binder Reserved for Future Use 1.13 Severe Weather Restrictions Whenever the National Weather Service issues a tornado, hurricane, tropical storm or other severe weather watch or warning including fires of any type, within 100 miles of the location of the proposed risk, it is necessary that acceptance of coverage be limited as follows: 1. No policy may be written or bound as New Business. 2. No endorsement of existing policies may be requested which will have the effect of increasing the Company s exposure to loss (e.g., adding Comprehensive and Collision coverage). 3. Renewals of the Company s expiring policies may be written in the normal manner, provided there is no increase in exposure to the Company. 4. Normal binding authority will resume after the watch and / or warning is lifted by the National Weather Service, providing there is no imminent forecast of reoccurrence. For the 72-hour period following the National Weather Service lifting a watch or warning each automobile for which Physical Damage coverage is to be bound must be personally inspected by the broker. A Vehicle Inspection Report must be completed and comprehensive photos of the vehicle are required at the time the application is submitted (left-front and right-rear angles) SR-22 Filings A $20.00 charge ($16.00 for Prop103 Good Drivers ) will be assessed for providing an SR-22 filing. Bodily Injury and Property Damage are required when a SR-22 filing is requested. Contact our Underwriting Department regarding the issuance of Financial Responsibility filings in any state other than California (note that SR-22 s are not available for all states). The person requiring the filing may not be excluded from coverage. Effective for New and Renewal Business on September 1,

8 1.15 Policy Issuance New Business documents are to be provided to the applicant at point of sale by the broker. Renewals and Endorsements will be mailed directly to the insured and loss payee. You may also print policy documents at Endorsement Guidelines All endorsements must be submitted on-line at Faxed and mailed endorsements will not be processed. A copy of any endorsement that requires a signature must be faxed immediately to Endorsements will be effective the date after receipt by the Company unless the request is for a future effective date. There will be a $3 endorsement fee on all premium-generating endorsements Renewal Guidelines Prior to the expiration of the policy, the insured will receive a renewal offer. The insured can renew the policy by paying the full premium, or by paying the first installment. 1. A renewal payment notice will be sent to the insured at least thirty (30) days prior to the expiration of the policy and will include a fully earned policy fee. We encourage you and the insured to make renewal payments online. A separate check or money order must be attached to each renewal. There is no grace period!!! 2. Renewal payments that are received in the broker s office after the expiration date of the previous policy term will become effective on the date following the Post Office postmark on the envelope (if mailed) or if electronic, on the uploaded payment date with a lapse in coverage provided payment is received within 60 days of the effective date. 3. Renewal payments mailed directly by the insured to the Company on expired policies will become effective on the date following the Post Office postmark on the envelope provided the payment is acceptable and payment is received within 60 days of effective date. 4. For the purposes of non-renewal: a. The Company will adhere to the substantial increase in hazard guidelines set forth in the California Code of Regulations, If, at the time of the expiration of the insured s current policy, the insured is not eligible under our then current underwriting rules, and a substantial increase in the hazard insured against under California Code of Regulations is present, we will not renew the policy; b. The Company will not consider the insured s failure to renew their California driver s license in any non-renewal decision; and c. Suspension of an insured s California driver s license will not be considered automatic grounds for non-renewal Cancellation Guidelines If cancelled by the Company, the return premiums will be computed on a pro-rata basis. Policies cancelled due to non-payment of premium are considered to be Company requests. If cancelled by the insured or the insured s Power of Attorney, the return premium will be computed at short rate (90% of the pro-rata unearned premium), unless the Named Insured requests to cancel the policy because he/she has returned the vehicle to the dealership. Documentation from the dealership is required. The request must be made with 10 days of the effective date of the policy. We will pro-rate the cancellation from the date of request. Cancellation requests from an insured must include the return of the original policy or a signed Lost Policy Release form or the insured s written request. All cancellation requests must indicate reason for cancellation. Policies will be cancelled as of the date indicated provided the postmark is within 3 business days of the requested cancellation date. If a loss payee or other third party interest exists, the effective date of cancellation may be adjusted to comply with regulatory requirements. Flat cancellations will not be permitted except in the case of duplicate coverage or NSF designation of any down payment. Cancellation request for reason of duplicate coverage must be accompanied by a copy of the Declarations Page from the current carrier showing coverages and effective dates. Effective for New and Renewal Business on September 1,

9 If the payment is made after the cancellation date, the policy will be reinstated with a lapse in coverage Voids When voiding an application, us at CAUW@access.com on the same day uploaded or fax to with void marked across the first page of the application and the barcode marked out. Any request to void an application received after this period will be cancelled, not voided. All fees charged will be fully earned, in addition to any premium that is earned during the time that coverage has been provided Unacceptable Risks NOTE: These provisions do not apply if any driver on the policy qualifies as a Good Driver, as defined in 10 CCR and the vehicles insured are Private Passenger type, as defined in the California Insurance Code 660. The Company reserves the right to make final underwriting decisions on all new business applications and endorsements adding new drivers or vehicles. The following is a general list of risks not written; however, a combination of factors may cause some applications to be unacceptable even though not specified below: Operators: With more than twenty (20) points. With any felony convictions or a history of criminal activity. With two (2) or more operating while intoxicated (DUI) convictions. With more than two (2) at-fault accidents within 36 months immediately preceding the effective date of the policy. Who have never been licensed. Who are under the minimum age for state licensing. Who have been convicted of insurance fraud. Who have a permanently revoked license, unless that operator is excluded from coverage. Who are over 75 years of age (unless accompanied by a physician s statement that the driver is capable and medically certified to drive). Vehicles: That are used for commercial use including, but not limited to, emergency, livery or taxi service; transporting daycare, nursery or school children, migrant workers, or hotel/motel guests; retail or wholesale delivery, including magazines, newspapers, food; and delivery, mail delivery and escort service; or vehicles transporting any hazardous material. That are owned by a business or are otherwise not eligible for a Personal Auto Policy. That are customized with equipment that does not comply with rule 4.8. That are imported and were not manufactured for sale in the U.S. (e.g. Gray Market Cars). That are considered hot rods, assembled from kits, rebuilt, used for racing, primarily off-road use, or structurally altered or modified. This includes dune buggies, dragsters, racers, kit cars, and vehicles with fewer than four wheels. That are limited production and/or exotic specialty vehicles. That are principally garaged outside California. That are over 40 years old. That have a ¾ ton and greater payload capacity or a gross vehicle weight of 7,500 pounds and greater. That are garaged away from the residences a substantial part of the time (30 days or more) without prior approval. That are equipped with a fifth wheel travel trailer. This does not include dualie trucks that fall within symbol rules. Coverage: Will not be provided for any vehicle not found in the ISO Symbol Identification Manual. No Physical Damage only policies. Physical Damage will not be written for automobiles, vans, pickups, SUVs and panel trucks that exceed Symbol 17 for 1989 & Prior years, Symbol 23 for 1990 to 2010 model years and Symbol 53 for 2011 & Later years or whose Actual Cash Value exceeds $50,000. Effective for New and Renewal Business on September 1,

10 Comprehensive and Collision must be written together. Comprehensive without Collision or Collision without Comprehensive is unacceptable. Physical Damage on vehicle over 20 years of age Policy Fees A Policy Fee will apply to all New Business and Renewal policies. The Policy Fee will not apply to any policy which is cancelled and subsequently reinstated if the fee has already been paid. For 12 month terms, the Policy Fee will be: $60 Non Good Driver policies $48 Good Driver policies with Liability and Physical Damage (20% discount) $45 Good Driver policies with Liability only (25% discount) For 6 month terms, the Policy Fee will be: $40 Non Good Driver policies $32 Good Driver policies with Liability and Physical Damage (20% discount) $30 Good Driver policies with Liability only (25% discount) For 3 month terms, the Policy Fee will be: $20 Non Good Driver policies $16 Good Driver policies with Liability and Physical Damage (20% discount) $15 Good Driver policies with Liability only (25% discount) For 1 month terms, the Policy Fee will be: $15 Non Good Driver Policies $12 Good Driver policies with Liability and Physical Damage (20% discount) $11 Good Driver policies with Liability only (25% discount) Additionally, a Fraud Fee, as mandated by the State of California, will apply to each term: Prior to July 1, 2014, $1.80 annualized will be assessed per vehicle. After July 1, 2014, $1.75 annualized will be assessed per vehicle, per quarter. Section 2: Claims Service ACCESS IS COMMITTED TO PROVIDING EXCELLENT CLAIMS SERVICE FOR YOU AND THE POLICYHOLDER. WE HAVE DEVELOPED A NETWORK OF DEDICATED SPECIALTY AUTO CLAIMS SERVICE CENTERS. Claims service centers are staffed with Company trained professional adjusters to provide excellent claims service with 24/7 loss reporting. Making sure that the policyholder reports all accidents and losses (regardless of fault) to the Company immediately is the first step in providing excellent claims service. We recommend that the policyholder telephone all claims directly to the Claims Department. The claims service center will also take telephone loss reports from brokers, claimants and other involved parties. Upon receipt of the loss, the Company will immediately assign it to an authorized Company adjuster to begin the investigation process. If necessary, you may FAX the loss report to our toll free number listed below. Please avoid mailing loss reports, as this may cause delay in providing prompt claims service. We have made claims reporting a simple process: Effective for New and Renewal Business on September 1,

11 Have insureds telephone all loss reports directly to the toll free number listed below immediately after a loss has occurred for prompt claim handling. Claims Toll-Free Number Claims FAX Number It is important to remind the policyholder that he/she should never delay reporting a loss pending receipt of a police report or other claim information. Coordination of this information and investigation is best accomplished directly between the adjuster and the policyholder. By having the insured telephone all claims directly to us, you will be able to take advantage of dedicated Company resources which will relieve you of the many time-consuming details of claim handling. By allowing our trained staff to immediately handle the claim, we hope to better serve you and exceed policyholder expectations. If at any time you have suggestions on how we can further improve our commitment of excellent claims service, please let us know. Claims P.O. Box Atlanta, GA Section 3: Definition of a Private Passenger Auto Private Passenger Automobile: any four wheel private passenger automobile. This includes vehicles of the pickup, panel, van and truck type with under a 3/4 ton load capacity or a gross vehicle weight under 7,500 pounds, used for pleasure, driving to and from work, business or artisan, and/or farm use. Driving to and from work may include transportation of the insured s tools, equipment and incidental supplies to and from a job location provided the vehicle is principally parked at the job location for the majority of the working day. The Company will not accept a vehicle ordinarily not suited for public roads. Section 4: Coverages 4.1 Liability Limits Bodily Injury: Property Damage: $15,000 per person/ $30,000 per accident $5,000 per accident $10,000 per accident $100,000 per person/ $300,000 per accident $50,000 per accident Vehicles on multi-car policies must carry the same liability limits. 4.2 Medical Payments Medical Payments coverage is offered with the following limits: $500 $1, Uninsured/Underinsured Motorists Uninsured/Underinsured Bodily Injury: Uninsured/Underinsured Property Damage: $15,000 per person/ $30,000 per accident $3,500 per accident 1. The Named Insured may reject Uninsured/Underinsured Motorists Bodily Injury and Uninsured/Underinsured Motorists Property Damage. If a signed rejection is not received: a. Uninsured/Underinsured Motorists Bodily Injury will be written at limits equal to the Bodily Injury Liability limits of the policy; and Effective for New and Renewal Business on September 1,

12 b. Uninsured/Underinsured Motorists Property Damage will be written in an amount equal to: i. The Collision Deductible Waiver (if Collision is purchased); or ii. The lesser of ACV or $3,500 (if Collision is not purchased). 2. Uninsured/Underinsured Motorists Bodily Injury is not available for limits higher than the Bodily Injury Liability limits of the policy. 3. Uninsured/Underinsured Motorists Property Damage is available only if Uninsured Motorists Bodily Injury coverage is purchased. 4. If coverage is provided on a multi-car policy, it must be purchased at the same limits at the same time for every car. 4.4 Physical Damage Deductibles The following deductible options are available: Comprehensive: Collision: $250 $250 $500 $500 $1,00 $1,00 $1,500 $1,500 $2,000 $2,000 NOTE: Comprehensive and Collision coverages must be written together. If the driver is a Proposition 103 Good Driver, Collision and Comprehensive coverage may be written separately. Multiple vehicle policies may carry different deductibles on different vehicles. A Vehicle Inspection Report must be completed and comprehensive photos of the vehicle are required at the time the application is submitted (left-front and right-rear angles). 4.5 Reserved for Future Use 4.6 Rental Reimbursement & Towing This coverage may be written only when Comprehensive and Collision coverages are also afforded and, if elected, must be provided on every vehicle with Comprehensive and Collision coverage. Rental Reimbursement coverage limits are $25.00 per day up to a maximum of $250 per disablement in any 12 month period. Coverage is further extended for Towing & Labor, with a coverage limit of $100 per disablement. 4.7 Reserved for Future Use 4.8 Reserved for Future Use 4.9 Reserved for Future Use 4.10 Reserved for Future Use 4.11 Reserved for Future Use 4.12 Reserved for Future Use Effective for New and Renewal Business on September 1,

13 Section 5: Rating Rules 5.1 Discounts MULTIPLE CAR DISCOUNT Applies to all vehicles of a multiple vehicle policy. This discount applies to all Bodily Injury, Property Damage, Medical Payments, Uninsured/Underinsured Motorists, Comprehensive and Collision coverages. This is a policy level discount. Multi-Car Rules: 1. A maximum of four vehicles per policy. 2. Only vehicles owned by the Named Insured and Resident Spouse may be combined on a multi-car policy. 3. All vehicles must have the same coverages and limits, with the exception of Physical Damage which may vary by vehicle. 4. Any earned Good Driver premium discount applies to all vehicles on the policy. Also, any vehicles are subject to the loss of discounts in the event of At-Fault Accidents. PERSISTENCY DISCOUNT At policy renewal, a persistency discount may be applied by the Company for the current named insured for Bodily Injury, Property Damage, Medical Payments, Uninsured/Underinsured Motorists, Comprehensive and Collision coverages. A persistency discount may also be applied when issuing a separate new automobile policy for a person who is not the named insured on the policy, but is otherwise currently insured. The Company will not apply a persistency discount for a new policy issued to an individual unless that individual is currently insured (under an Access Insurance Company policy). The Company will not apply a persistency discount at any time when based in whole or in part upon automobile insurance coverage provided by a nonaffiliated insurer. GOOD DRIVER DISCOUNT #1 For each driver qualifying for Good Driver status under 10 CCR , this discount applies to Bodily Injury, Property Damage, Medical Payments, Uninsured/Underinsured Motorists, Collision Deductible Waiver, Comprehensive, Collision, and Rental Reimbursement & Towing coverages. Good Drivers must be licensed in any jurisdiction for the three years preceding the effective or renewal date of the policy, and must not have had a conviction of more than one DMV violation point, per the California Vehicle Code 12810, during this time. The Good Driver Discount may be applied to foreign drivers who provide proof they qualify for this discount. GOOD DRIVER DISCOUNT #2 Applies to Bodily Injury, Property Damage, Medical Payments, Uninsured/Underinsured Motorists, Collision Deductible Waiver, Comprehensive, and Collision coverages. Drivers must have the Good Driver Discount #1 to qualify but must also have had no at-fault accidents or violations for the most recent 60 months. The Good Driver Discount may be applied to foreign drivers who provide proof they qualify for this discount. ANTI-LOCK BRAKES 5% Applies to Bodily Injury, Property Damage, and Collision premiums if the vehicle is equipped with anti-lock brakes. This is a vehicle level discount. ANTI-THEFT DEVICES 15% Applies to Comprehensive premiums if the vehicle is equipped with an alarm, active or passive disabling antitheft device. Evidence of installation must accompany any request for the discount if not standard on the vehicle. Evidence of installation includes a receipt or a signed statement from the installer. This is a vehicle level discount. MATURE DRIVER DISCOUNT 5% Applies to Bodily Injury, Property Damage, Medical Payments, Uninsured/Underinsured Motorists, Comprehensive and Collision coverages for each driver age 55 or older that has successfully completed a Mature Driver Improvement Course approved by the California Department of Motor Vehicles. The discount does not apply or may be discontinued if during the three years following the course completion date: The principal operator has been involved in an at-fault auto accident, or Effective for New and Renewal Business on September 1,

14 The principal operator has been convicted of a violation of Division 11 of the California Vehicle Code, except Chapter 9 of that division, or of a traffic related offense involving alcohol or narcotics. The discount also does not apply if the insured enrolls in and successfully completes an approved course pursuant to court order. The discount applies only to a mature driver related vehicle. A copy of the certificate must accompany the application. DECREASED PROPERTY DAMAGE LIMIT DISCOUNT - 3% Applies to Bodily Injury and Property Damage coverages for reducing the Property Damage Liability limit to $5,000. OCCASIONAL VEHICLE DISCOUNT 5% Applies to Bodily Injury, Property Damage, Medical Payments, Uninsured/Underinsured Motorists, Comprehensive and Collision coverages if pleasure use is selected as the vehicle use. ACADEMIC DISCOUNT 2.5% Applies to Bodily Injury, Property Damage, Medical Payments, Uninsured/Underinsured Motorists, Comprehensive and Collision coverages if the Named Insured is currently enrolled in school and has a B average or 3.0 average or better. NON-SMOKER DISCOUNT 5% Applies to Bodily Injury, Property Damage, Medical Payments, Uninsured/Underinsured Motorists, Comprehensive and Collision coverages if the Named Insured is a non-smoker. This is a driver level discount. DAYTIME RUNNING LIGHT DISCOUNT 5% Applies to Comprehensive and Collision coverages on New Business. Insured s vehicle must have daytime running lights to qualify. Upon Renewal, the policy will be issued with the discount remaining at the original issuing level. This is a vehicle level discount. NON-OWNER DISCOUNT -10% Applies to Bodily Injury, Property Damage, Medical Payments, Uninsured/Underinsured Motorists (BI only) coverages if the policy is a non-owner policy. This is a driver level discount. 5.2 Driver Classification Driver Classification is determined from the age, gender, marital status, driving record, and vehicle use (including annual vehicle mileage) of the operator(s). Driver Classification age is based on the age of the operator(s) at the time of the application. We will not adjust Driver Classification for those operators having a birthday after the effective date of the policy. Only legally married drivers or registered Domestic Partners will be rated as married. Drivers who are single, divorced, widowed or separated will be rated as single. Drivers who are married but have not listed or excluded their spouse will be rated as single. 5.3 Non-Owner A Non-Owner policy provides liability protection to an individual who neither owns a vehicle, nor has access to any personal use vehicle on a regular basis, including vehicle owned by household members. Coverage does not apply to any vehicle owned by the insured, spouse or member of the household. Coverage applies only to a Named Insured listed on the Declarations Page and does not extend to household members. Bodily Injury, Property Damage, Medical Payments, and Uninsured/Underinsured Motorists are the only coverages available. Physical Damage coverage is not available. Business/Artisan Use is unacceptable. SR-22 filings are acceptable. Only the Liability limit of 15/30/5 is acceptable. Commercial use is unacceptable. There is no coverage while driving an employer s vehicle. Driver Classification factors will be based on Age, Gender and Marital Status. Vehicle Model Year Factor will be 1.10 for Bodily Injury and Property Damage. No more than one driver will be permitted on a non-owned vehicle. Effective for New and Renewal Business on September 1,

15 Drivers with foreign licenses may have a non-owner policy. If the insured purchases a vehicle, he/she must notify the Company within 10 days of purchase. The vehicle will be added to the current policy and the non-owner classification will be removed. 5.4 Symbols Use ISO RAPA Symbols for Rating. RAPA Veh Symbol First Character RAPA Veh Symbol First Character RAPA COMP Veh Symbol First Character Relativity RAPA COLL Veh Symbol First Character Relativity A 0-12, B 12,501-13, C 13,751-15, D 15,001-17, E 17,501-18, F 18,751-20, G 20,001-22, H 22,001-24, J 24,001-30, K 30,001-33, L 33,001-36, M 36,001-45, N 45,001-80, P 80,001 and above (a) (b) (a) For Comprehensive Coverage, add to the Character N relativity for each $10,000 or fraction of $10,000 above $80,000. (b) For Collision Coverage, add to the Character N relativity for each $10,000 or fraction of $10,000 above $80,000. RAPA Veh Symbol 2nd Character RAPA COMP Veh Symbol 2nd Character Relativity RAPA COLL Veh Symbol 2nd Character Relativity A B C D E F G H J K Effective for New and Renewal Business on September 1,

16 L M N P R T U V W X Y Z Policy Term Policies may be issued for one, three, six, or twelve-month terms. The base term is a six (6) month term. 5.6 Whole Dollar and Minimum Billing Rule The minimum coverage premium is $6 semi-annual term for each coverage. For all other terms, please multiply the $6 by the associated term factor by coverage. Premiums shall be rounded up to the next highest dollar. 5.7 Annual Mileage Requirement At new business point-of-sale, the insured must estimate and self-certify vehicle mileage for the twelve months following policy inception. The mileage information provided by the insured is a part of the premium calculation. If the information is found to be incomplete, inaccurate, or otherwise unverifiable, a default annual mileage of 9,999 will be used for the premium calculation. Each renewal offer will include a section for the insured to verify and/or update the annual mileage. The verification must be returned to the Company. If the mileage verification is not signed and returned to the Company, the renewal premium will be based on the mileage information from the previous renewal term. Failure to remit the mileage verification consecutively for a 36 month period will result in the use of a default mileage of 9,999 for the premium calculation. Effective for New and Renewal Business on September 1,

17 5.8 Point Schedule Chargeable Period The experience period for convictions and accidents is the 36-month period prior to the policy inception date. Violations charged by the DMV will be charged under this program. In determining violations counted, use the California Vehicle Code Violations used in the Negligent Operator count list published by the California Department of Motor Vehicles as the guideline: use the conviction date, not the occurrence date, to determine if the accident, serious traffic infraction or non-criminal traffic infraction falls within the chargeable period. If multiple violations occur from the same incident and the same date, only the violation with the highest point count will be charged. Multiple violations in different incidents will be charged on the same date. If a violation occurs with an accident, both will be charged. Convictions Refer to the driving record of the principal driver and each additional operator to determine the convictions of each operator. For this purpose, use the California Department of Motor Vehicles public record of traffic violations. Out-of-state convictions count the same as in-state convictions, provided the violation would have resulted in a point assignment, had it occurred in California. The Company will not accept drivers with more than ten conviction points in the experience period. Minor violations occurring while driving an employer s vehicle for compensation may not be chargeable and should be identified on the application. A letter on Company letterhead from the employer, signed by the owner or manager, or the employee s written declaration is required in order not to charge for employment related minor violations. This exception does not apply to major traffic violations or accidents. Regardless of whether or not the following occurred during the hours of employment, the following violations preclude qualification for a Good Driver discount: Vehicular Homicide/Assault/Manslaughter (California Penal Code 191.5,192.5(a)). All violations of this type occurring after will be retained for 10 years for purposes of qualifying for Good Driver status. Failure to stop at the scene of an accident (California Vehicle Code 20001,20002). Reckless driving (California Vehicle Code 23103). Driving under the influence of any alcoholic beverage and/or a blood alcohol level of.08 percent or more (if under age 21, 0.05 percent or more per California Vehicle Code 23140), driving under the influence of any drug, or any combination of the two (California Vehicle Code 23152, 23153). All DUI s occurring after will be retained for 10 years for purposes of qualifying for Good Driver status. Driving with a suspended or revoked driver s license (California Vehicle Code 14601, , , , ). Accidents All chargeable accidents involving Bodily Injury are assigned two points. All chargeable accidents involving Property Damage only are assigned one point. For accidents occurring prior to December 11, 2011, an accident is chargeable if the driver was at least 51% responsible for the accident and: The accident resulted in bodily injury or death; or The accident resulted in damage (Property Damage or Collision) exceeding $750. For accidents occurring on or after December 11, 2011, an accident is chargeable if the driver was at least 51% responsible for the accident and: The accident resulted in bodily injury or death; or The accident resulted in damage (Property Damage or Collision) exceeding $1,000. An accident is not chargeable if: The vehicle was lawfully parked at the time of the accident. A vehicle rolling from a parked position shall not be considered to be lawfully parked, but shall be considered as in the operation of the last operator; Effective for New and Renewal Business on September 1,

18 The vehicle was struck in the rear by another vehicle and the driver was not convicted of a moving traffic violation in connection with the accident; The driver was not convicted of a moving traffic violation and the operator of another vehicle involved in the accident was convicted of a moving violation; The driver s vehicle was damaged as a result of contact with a vehicle operated by a hit-and-run operator of another vehicle and the accident was reported to legal authorities within a reasonable time after the accident; The accident resulted from contact with animals, birds, or falling objects; The accident was a single vehicle accident that was principally caused by a hazardous condition of which a driver, in the exercise of reasonable care, would not have noticed (e.g. black ice ) or in the exercise of reasonable care, could not have avoided (e.g. child running into the street). It shall be conclusively presumed that a driver is not principally at-fault for an accident if the provisions of 10 CCR apply. An accident in which reimbursement was obtained from another party, providing the Company makes no liability payment on behalf on the insured. Must be verified by the previous carrier. The applicant, owner or resident operator who was involved in an accident, was Determined to be less than 51% negligent, or Reimbursed for 51% or more of his or her damage by or on behalf of person involved in accident. Acceptable proof of not-at-fault : A police report indicating less than 51% negligence. A letter from the claims department. A copy of claims draft payable to the insured. A signed letter stating that the insured was not at-fault and there is no other evidence (such as a C.L.U.E. report) that the accident was the insured s fault. Note: The insured can contact the Company and we will provide them with a form to sign that states he/she was not-at-fault in the accident under the penalty of perjury. Good Driver Discount Eligibility: To maintain Good Driver Discount eligibility, for the three years preceding the effective or renewal date of the policy, a driver must not have had a conviction of more than one DMV violation point, per the California Vehicle Code For accidents, the following point charges will apply: One point for each accident where: The operator is found to be principally at-fault ; and For accidents occurring prior to December 11, 2011: the accident resulted only in damage to property, with total damage in excess of $750. For accidents occurring on or after December 11, 2011: the accident resulted only in damage to property, with total damage in excess of $1,000. Two points for each accident where: The operator is found to be principally at-fault ; and The accident resulted in bodily injury or death. 5.9 Violations Assign two points for the following violations: Speeding 100 MPH or over Felony/Homicide/Manslaughter/Assault Careless/Reckless/Negligent/Inattentive Driving Explosive/Hazardous Material Violations Racing/Speed Contest Driving With a Revoked/Suspended License Evading/Fleeing Police Hit and Run Wrong Way on a Divided Highway DUI/Drugs/Control Substance/ Refused Test/Impaired Driving Assign one point for the following violations: Defective Brakes/Equipment/Light Violation Failure to Yield/Right of Way/Stop/Obey Police Officer/ Traffic Signals Effective for New and Renewal Business on September 1,

19 Improper Location/Lane Change/Backing/Stopping/Starting/Passing/Turning All Speeding 99 MPH and Under Failure to Use Child Safety Restraints All other Minor Violations 5.10 Reserved for Future Use 5.11 Foreign Driver s Licenses The Company accepts drivers holding a valid driver s license from any foreign jurisdiction. A copy of the foreign driver s license must be submitted to the Company and maintained as a part of the policy file. Any applicant who has held a foreign driver s license outside of the United States within the past 5 years must, at their own expense, provide the Company with a copy of their driving record. Please contact the agency which issued the foreign driver s license for instructions on obtaining the applicant s driving record. If valid copies of the foreign driver s license and driving record are not received by the Company within 60 days of the application, the driver will be re-rated as unverifiable. Please note: International Driving Permits/Driver s Licenses are not recognized by the State of California, nor are they accepted by the Company as proof of a valid driver s license Reserved for Future Use 5.13 Reserved for Future Use 5.14 Reserved for Future Use 5.15 Multiple Operators/ Multiple Vehicles Rating Procedure For a multi-car policy with more vehicles than operators (MCTO), the excess vehicle(s) shall be rated with the lowest rating factors on the policy used to rate the other drivers. The Driver Class Factor assigned to the undesignated driver(s) on the excess vehicle(s) will be based on the Multi-Car Discount (-.099), the Years Licensed/Gender and Marital Status Factor (-.1.09), the Conviction Factor (-.125), and the Accident Factor (-.001). The discounts and surcharges used will reflect those used on the other drivers on the policy Reserved for Future Use 5.17 Artisan or Business Use Surcharge A 20% Artisan and Business Use surcharge applies to Bodily Injury, Property Damage, Medical Payments, Comprehensive and Collision coverages for all cars, pick-ups, mini and full size vans, and utility vehicles (under a 3/4 ton load capacity or a gross vehicle weight under 7,500 pounds) used as artisan vehicles to carry tools and equipment to a job site or used in his or her business or occupation, providing that the usage is acceptable. Any delivery usage, including but not limited to pizza, food, and newspapers are unacceptable. Any vehicles used to transport person(s) or properties for a fee are unacceptable. The guidelines for Artisan and Business Usage are: A. Vehicle must be registered to the Named Insured (not to a corporation or business) and be operated by the Named Insured and listed family members only. The Named Insured may be self-employed. B. Vehicle must, on average, visit no more than (5) job sites per day, within a 50-mile radius. C. Vehicle must not carry equipment in excess of 500 pounds. D. Vehicle must not have a custom truck body or flat bed. E. Vehicle may have a toolbox; however, tools and equipment are not covered. F. Vehicle may have signage indicating insured s name and type of business, (e.g. Smith s Landscaping). All Artisan and Business Use risks (including Liability Only) must be submitted with two (2) photos and a copy of the registration. No more than two (2) Artisan or Business Use risks are allowed per policy. Effective for New and Renewal Business on September 1,