FARMOWNERS PROGRAM WEST VIRGINIA

Transcription

1 FARMOWNERS PROGRAM WEST VIRGINIA

2 FARMOWNERS PROGRAM LISTING OF FORMS AND ENDORSEMENTS WEST VIRGINIA FORMS FO Dwelling Coverage Basic Form FO Dwelling Coverage Broad Form FO Dwelling Coverage Special Form FO Dwelling Coverage Renters Form FO Farm Coverage FO Additional Policy Conditions and Property Coverage Terms GL Personal Liability Coverage (Farm) GL Commercial Liability Coverage (Farm Premises and Operations) MANDATORY ENDORSEMENTS CL Flood Coverage Notice West Virginia CL Coal Mine Subsidence Coverage Part Non Dwelling CL Coal Mine Subsidence Coverage Part - Dwelling FO Calendar Date or Time Failure Exclusion FO Exclusion of Motor Vehicles FO Limited Fungi, Wet or Dry Rot, or Bacteria Coverage (GL-2) FO Limited Fungi, Wet or Dry Rot, or Bacteria Coverage (GL-610) FO Virus or Bacteria Exclusion FO Amended Vandalism and Glass Breakage Exclusions GL Punitive Damage Exclusion GL Limited Coverage for Injury or Damage Arising From a Dog (GL-2) GL All-Terrain Vehicle Exclusion (GL-2) GL Limited Coverage for Injury or Damage Arising From a Dog (GL-610) GL All-Terrain Vehicle Exclusion (GL-610) GL Care Provided for Others A Business Activity GL Lead Liability Exclusion ML West Virginia Loss Payment Endorsement OTHER ENDORSEMENTS FO- CHG Change Endorsement FO Actual Cash Value FO Consent to Move Mobile Home FO Collision or Upset FO Secured Party s Interest Additional Coverage FO Incidental Property Coverages Higher Limits FO Additional Insureds FO Related Private Structures FO Earthquake FO Replacement Value FO Debris Removal FO Scheduled Personal Property FO- 61A 1.0 Scheduled Personal Property FO Coverage C Higher Limit of Liability on Certain Property FO Scheduled Glass FO Business Property Business Occupancy on the Insured Premises REV AAIS

3 FARMOWNERS PROGRAM LISTING OF FORMS AND ENDORSEMENTS WEST VIRGINIA FO Ordinance or Law FO Amendment of Vacancy or Unoccupancy FO Dwelling Under Construction Theft FO Computers FO Insurance By More Than One Company FO Water Damage Sewers, Drains, and Sumps FO Premises Alarm or Fire Protection System FO Ordinance or Law Farm Barns, Buildings, and Structures FO Schedule of Farm Personal Property Coverage F FO Schedule of Barns, Buildings, Structures, and Additional Farm Dwellings Coverage E FO Restriction of Individual Policies FO Sprinkler Leakage FO Weight of Ice, Snow, or Sleet FO Incidental Property Coverages Higher Limits FO Limited Perils Coverages E, F, and G FO Deductible Amounts FO Theft of Building Materials Farm barns, Buildings, and Structures FO H and F.F.A. Animals FO Suffocation of Livestock FO Debris Removal Coverages E and F FO Peak Season Inventory Farm Personal Property FO Earthquake Coverages E, F, and G FO Added Animal Perils FO Farm Machinery FO Property in Transit Coverages F and G FO Special Form Coverage Farm Barns, Buildings, and Structures FO Replacement Cost Provision For Well Pumps GL Personal Liability Coverage GL Additional Insured Persons or Organizations GL Additional Insured Partners or Co-owners GL Additional Insureds GL Additional Residences or Farms Rented to Others GL Business Activities GL Custom Farm Work GL Employer s Liability GL Office, Professional, Private School, or Studio Occupancy GL Personal Injury REV AAIS

4 OTHER ENDORSEMENTS FARMERS MUTUAL INSURANCE COMPANY FARMOWNERS PROGRAM LISTING OF FORMS AND ENDORSEMENTS WEST VIRGINIA GL Watercraft GL Snowmobile GL Care Provided For Others GL Supplemental Declarations GL Additional Insureds GL Exclusion of Products/Completed Work Coverage GL Farm Employers Liability Coverage (GL-610 Only) GL Personal and Advertising Injury Liability Coverage (GL-610 Only) GL Limited Liability Company (Farm Premises and Operations) ML Windstorm or Hail Deductible REV AAIS

5 FARMOWNERS PROGRAM UNDERWRITING RULES 1. Binding Authority A. Building, contents, additional living cost, outbuildings & barns within 100 feet. B. Maximum coverage A amount not to exceed $300,000 C. Maximum liability amount per occurrence $500,000 D. Premium payments on canceled policies cannot be accepted without prior approval from an underwriter. A signed statement of no loss is required to reinstate a policy. 2. Structure A. Foundation Form 1 Form 2 & 3 Pier with skirting/underpinning Continuous solid masonry B. Heating Form 1 Space heaters Form 2 Floor furnace & circulating heat acceptable up to $60,000 Form 3 Central heat (thermostatically controlled & vented in each room) 25 years old or less C. Roof Form 1 & 2 Shingle, Metal or Slate Form 3 Shingle or Metal 25 years old or less Rev. 5/14 FO-Und-1

6 D. Occupancy Form 1 & 2 Form 3 E. Plumbing Form 1 Form 2 & 3 One & two family acceptable One family only Galvanized Copper or Plastic F. Dwelling Dwellings under construction or complete renovation: Must be written under the dwelling fire program Owner occupied hybrid homes (mobile homes w/room additions): Must be written under the mobile home program. If they are tenant or seasonally occupied they must be written under the dwelling fire program. Townhomes: Acceptable if fire division separates each unit. The fire division can be a masonry wall of an approved dead air space. G. Electric Form 1 Fuse Form 2 Breaker Form 3 Breaker, 25 years old or less Rev. 5/14 FO-Und-2

7 3. Risk Criteria A. Mailed applications: completed with signatures, payment & photos of all insured structures. On line applications: all screens completed with payment information & photos. Signatures are to be retained in agent s office. B. When individuals are co-habitating, all individuals should be listed on the policy as named insured s. C. A handrail is required on all sets of steps &/or porches that are 4 or more risers high. In ground pools must be fenced & locked. Above ground pools must be enclosed with railing, gated & locked or fenced. D. Mortgagee s: No more than 2 per policy E. There must be a primary/owner occupied dwelling & there must be at least 5 acres & all insured buildings must be utilized in the farming operation & in good repair. F. Dwellings in estate must be written under the dwelling fire program 4. Wood Stove Guidelines A. Wood stoves vented into a metal UL approved triple or double wall insulated chimney acceptable. B. Wood stoves vented into a fireplace must have the vent pipe extended to the top of the chimney. C. Wood stoves vented into a chimney located on or within an external wall must be built from the ground up & have a tile or metal liner. D. A completed wood stove questionnaire & photo of the wood stove must accompany the application. Rev. 5/14 FO-Und-3

8 5. Unacceptable risks/exposures A. Dwellings using a wood stove or kerosene space heaters as sole source of heat. B. Vacant or unoccupied dwellings C. Mobile homes or hybrid dwellings D. Vicious dogs, including any dog that has bitten previously or any risk with a: Rottweiler, Pit Bull, Chow, Doberman Pinscher, German Shepherd, Akita or any mix of these. E. Trampolines, broken steps, missing handrails or unfenced pools. F. Applicants who have been canceled, non-renewed or declined by another company in the past 5 years. G. Applicants who have had a total loss or theft claim, check with underwriting H. Structures originally constructed for occupancies other than residential purposes I. We do not write student housing, farms which have landfills or gravel pits or Property that is seasonal or week-end type. J. K. Farms which operate businesses other than those incidental businesses (i.e. produce stands on a produce farm) written by us Rev. 5/14 FO-Und-4

9 FARMOWNERS MANUAL WEST VIRGINIA INDEX Additional Living Costs -- Increased Limit...33 Additional Interests...13 Aggregate Limits...11 Basic Limits... 8 Calculation of Premium...19 Cancellation...16 Changes in Limits...21 Commercial Liability... 7 Contributing Insurance...16 Coverage B Deletion...25 Coverage C Deletion...25 Increased Limit...30 Reduced Limit...30 Replacement Value...31 Coverages Dwelling... 3 Farm... 5 Liability... 7 Rules Page Debris Removal -- Expanded Dwelling...33 Farm...42 Deductibles...22 Definitions Construction...54 Territorial...TD-1 Typing...54 Eligibility... 1 REV 6.0 Index - i AAIS

10 FARMOWNERS MANUAL WEST VIRGINIA INDEX Farm Personal Liability Coverage - Deleted...27 Fire Protection...24 Inception Time...12 Incidental Coverages - Increased Limit Dwelling...34 Farm...42 Individual Risk Premium Modifications...53 Liability Coverage Options...43 Limited Perils...27 Livestock Additional Perils...40 Suffocation...40 Mobile Home Options...34 Modular Policy Format...12 Optional Coverages Dwelling...29 Farm...36 Liability...43 Perils Insured Against Dwelling... 4 Farm... 6 Policy Term...13 Policywriting Instructions...12 Preferred Mobile Homeowner... 2 Premium Determination...18 Premium Modifications...24 Principal Coverages Coverages A, B, C, and D... 3 Coverages E, F, and G... 5 Coverages L, M, and O... 7 Rules Page REV 6.0 Index - ii AAIS

11 FARMOWNERS MANUAL WEST VIRGINIA INDEX Program Description... 3 Property Coverage Options Dwelling...29 Farm...36 Protective Devices...24 Renewal Plan...13 Restriction of Coverage...15 Specially Rated Risks...17 Rules Page Territorial Definitions...TD-1 Tie-Down Credit...27 Transfer of Policy...15 Vacancy Permit...28 West Virginia Coal Mine Subsidence.Rates Page 25 REV 6.0 Index - iii AAIS

12 FARMOWNERS MANUAL RULE 1 -- ELIGIBILITY 1.1 Eligibility Requirements WEST VIRGINIA A policy that includes coverage for the principal farm residence with over 5 acres of ground and farm personal liability exposures may be issued to the owner of the farm when the following requirements are met: Number of Families -- The principal farm residence must contain facilities for housing no more than two families and no more than two roomers or boarders per family. If the principal farm residence is a mobile home, it must contain facilities for housing no more than one family and no more than two roomers or boarders per family. Residential Use -- Except for those incidental business occupancies that are permitted by this manual, the principal farm residence must be used exclusively for residential purposes. When a permitted incidental business occupancy exists, it must be declared and the appropriate premium charge must been made. Occupancy -- The principal farm residence must be either: -- occupied by the farmowner; -- occupied by a farm tenant if the farm is operated under the farmowner's direct management or under the terms of a management contract; or -- occupied by a co-owner of the farm if that co-owner has an equal or controlling financial interest in the farming venture and is primarily responsible for the farm operations. Refer to the company if a partnership or corporation is shown as the named insured on the declarations. When all other eligibility requirements have been met, a tenant farmowners policy may be issued to a tenant who occupies the principal farm residence and is engaged in the farming operation. REV 6.0 Rules - 1 AAIS

13 FARMOWNERS MANUAL WEST VIRGINIA Preferred Mobile Homeowner Program (Doublewide Mobile Homes) Refer to Rule Submit to Company Use Form FO-3 only and attach FO-15. At the option of the company, a farmowners policy can be issued to include commercial liability coverage in lieu of farm personal liability coverage, or liability coverage may be omitted altogether. Coverage for the principal farm residence may also be omitted at the option of the company. The eligibility of the following risks must be determined by the company: -- farms where business pursuits other than farming are conducted; -- farms where horses are raised, boarded, or maintained; -- vacant or unoccupied farms; -- farms that are operated to supply agricultural commodities for manufacturing or processing by the insured for sale to others; -- farms involving the retail sale of farm products or farms that permit the picking of fruits and vegetables by the public; and -- incorporated farms. 1.3 Photographs and Agent Certification Photographs are required for each covered building. A diagram or plat is also required, showing and properly identifying all buildings on the farm, whether covered or not, and indicating the location and size of each building and the distance in feet between all buildings. The photographs must be dated to show when they were taken. REV 6.0 Rules - 2 AAIS

14 FARMOWNERS MANUAL WEST VIRGINIA RULE 2 -- PROGRAM DESCRIPTION The following is a general description of the coverages provided by the farmowners policy forms. The policy forms state the complete conditions. This program has a $250 minimum premium. 2.1 Dwelling Coverages -- Property Policy Forms The following forms are used to provide the dwelling coverages for the principal farm residence: FO-1 Dwelling Coverage -- Basic Form FO-2 Dwelling Coverage -- Broad Form FO-3 Dwelling Coverage -- Special Form FO-4 Dwelling Coverage -- Renters Form Principal Coverages Forms FO-1, FO-2, and FO-3 provide the principal coverages described below. Form FO-4 includes only Coverage C and Coverage D. Coverage A -- Residence -- Coverage A covers the residence on the insured premises, including additions and built-in components. Coverage B -- Related Private Structures -- Coverage B covers unattached structures related to the residence, other than structures designed or used for farming or other business purposes. Coverage also applies to fences, driveways, sidewalks, and other permanently installed outdoor fixtures that are within 250 feet of the residence covered under Coverage A. Coverage C -- Personal Property -- Coverage C covers personal property, other than farm personal property, owned by or in the care of the insured. REV 6.0 Rules - 3 AAIS

15 FARMOWNERS MANUAL WEST VIRGINIA Coverage D -- Additional Living Costs and Loss of Rent -- Coverage D covers increased living costs and loss of rent or fair rental value that occur when an insured loss makes the insured premises unfit for use Perils Insured Against Forms FO-1 and FO-2 insure property covered under Coverages A, B, and C and the related costs covered under Coverage D against risks of direct physical loss by the perils indicated below. Perils Covered Form FO-1 Form FO-2 Fire or Lightning x x Windstorm or Hail x x Explosion x x Riot or Civil Commotion x x Aircraft x x Vehicles x x Smoke x x Sinkhole Collapse x x Volcanic Action x x Vandalism x x Theft x x Falling Objects x Weight of Ice, Snow, or Sleet x Sudden and Accidental Tearing Apart, Burning, or Bulging x Accidental Discharge of Liquids or Steam x Freezing x Sudden and Accidental Damage from Electrical Currents x Form FO-3 insures property covered under Coverages A and B and the related costs covered under Coverage D against all risks of direct physical loss, with certain exceptions. Property covered under Coverage C is insured against risks of direct physical loss by the perils shown for Form FO-2. REV 6.0 Rules - 4 AAIS

16 FARMOWNERS MANUAL Form FO-4 insures property covered under Coverage C, the insured s interest in building improvements & betterments and the related costs covered under Coverage D against risks of direct physical loss by the perils shown for Form FO Loss Settlement Provisions Actual cast value (ACV) loss settlement terms apply to buildings covered under forms FO-1 & FO-2 and the Preferred Mobile Homeowners Program When ACV loss settlement terms apply, the FO-15 endorsement will be attached. 2.2 Farm Coverage Property Policy form & Principal Coverage s Form FO-6 provides the principal coverage s described below. Coverage E Farm Barns, Buildings & Structures Coverage E covers additional farm dwellings, barns, portable buildings & structures, other farm buildings & structures & tenants improvements in farm buildings for which a limit is shown on the declarations page or a schedule. The limit show on the declarations or schedule for each covered item includes attached sheds & fixtures. However, silos are covered only when specifically listed on the declarations or schedule. Coverage F Scheduled Farm Personal Property Coverage F covers classes or items of farm personal property for which a limit is shown on the declarations page or a schedule. Rev 5/14 Rules - 5

17 FARMOWNERS MANUAL WEST VIRGINIA Coverage G -- Unscheduled Farm Personal Property -- Coverage G covers farm personal property on a blanket basis. The Coverage G limit must be shown on the declarations page Loss Settlement Provisions Coverage E -- Scheduled buildings and structures are covered on an actual cash value basis. Coverage F -- The coverage provided under Coverage F applies on an actual cash value basis. At the option of the company, the following classes of scheduled property are also subject to a coinsurance clause or a pro rata distribution clause: Machinery Not Described Grain Hay in Barns Hay in the Open Farm Products and Supplies Poultry Make an entry on the declarations page to activate the coinsurance or pro rata distribution clause. Also show the Coverage F coinsurance percentage on the declarations when the Coverage F coinsurance clause applies. Coverage G -- The coverage provided under Coverage G applies on an actual cash value basis Perils Insured Against Form FO-6 insures covered property against risks of direct physical loss caused by the following perils: Fire or Lightning Windstorm or Hail Explosion Riot or Civil Commotion Aircraft Vehicles Smoke Vandalism Theft Sinkhole Collapse Volcanic Action Earthquake (Livestock Only) Flood (Livestock Only) Collision Electrocution (Livestock Only) Loading or Unloading Accidents (Livestock Only) REV 6.0 Rules - 6 AAIS

18 FARMOWNERS MANUAL 2.3 Liability Coverage WEST VIRGINIA Personal Liability Coverage (Farm) Form GL-2 covers liability exposures that arise out of the insured premises and the personal activities of the insured. It includes the principal coverages described below: Coverage L -- Liability -- Coverage L pays on behalf of the insured for damages due to bodily injury or property damage caused by an occurrence that involves the insured premises and related operations or the insured's personal activities. Coverage M -- Medical Payments to Others -- Coverage M pays medical expenses incurred by persons who are not insureds if bodily injury occurs in connection with the insured premises or the insured's activities Commercial Liability Coverage (Farm Premises and Operations) Form GL-610 covers the commercial liability exposures that arise out of farming activities on the insured premises and related operations. It includes the principal coverages described below. Coverage for the personal liability exposures of individuals can be provided by a separate policy; or at the option of the company, Form GL-610 can be extended by endorsement to cover the personal liability of specific individuals. Coverage L -- Bodily Injury Liability, Property Damage Liability -- Coverage L pays on behalf of the insured for damages due to bodily injury or property damage caused by an occurrence that involves the insured premises or related operations. Coverage M -- Medical Payments -- Coverage M pays medical expenses incurred by persons who are not insureds if bodily injury occurs in connection with the insured premises or related operations. REV 6.0 Rules - 7 AAIS

19 FARMOWNERS MANUAL WEST VIRGINIA Coverage O -- Fire Legal Liability -- Coverage O pays for property damage liability to buildings, including attached fixtures, which are rented or loaned to an insured if the damage is caused by fire and the insured is legally liable for the fire damage Other Liability Coverage Parts "THIS RULE DOES NOT APPLY" 2.4 Basic Limits Dwelling Coverage -- Property The following basic limits apply to the property coverages provided by the farmowners policy: Principal Forms Coverages FO-1, 2, and 3 Form FO-4 Coverage A FO-1 $ 25,000 FO-2 $ 35,000 FO-3 $ 50,000 Coverage B Coverage C 10% of limit on residence 50% of limit on residence $6,000 Coverage D 20% of limit 20% of limit on on residence personal property Show the limits for Coverages A, B, C, and D on the declarations. REV 6.0 Rules - 8 AAIS

20 FARMOWNERS MANUAL WEST VIRGINIA Farm Personal Liability Coverage The following basic limits apply to the farm personal liability coverage provided by the farmowners policy: Principal Coverages Coverage L Coverage M Form GL-2 $50,000 Each Occurrence $1,000 Per Person*** *** Payments under Coverage M are also subject to a Per Accident Limit of $25,000. Show the Per Accident Limit on the declarations. Higher Each Occurrence and Per Person limits are available. Use the rating information shown in this manual. Show the limits for Coverages L and M on the declarations. REV 6.0 Rules - 9 AAIS

21 FARMOWNERS MANUAL WEST VIRGINIA Commercial Liability Coverage A combined single limit applies to the sum of all losses payable for each occurrence under the commercial liability coverage provided by the farmowners policy: Principal Coverages Coverage L Coverage M* Coverage O** Form GL-610 $50,000 Each Occurrence * Subject to the Each Occurrence Limit, the Per Person Limit for Coverage M is $1,000 with a $25,000 per Accident Limit. ** Subject to the Each Occurrence Limit, the Fire Legal Liability Limit for Coverage O is $50,000. Higher Each Occurrence and Per Person limits are available. Use the rating information shown in this manual. The Coverage O limit can be increased at the option of the company. Use the rating information provided by the company. Show the limits for Coverages L, M, and O on the declarations. REV 6.0 Rules - 10 AAIS

22 FARMOWNERS MANUAL WEST VIRGINIA 2.5 Aggregate Limits -- Commercial Liability Coverage The commercial liability coverage provided by Form GL-610 is subject to the General Aggregate Limit and the Products/Completed Work Hazard Aggregate Limit described below General Aggregate The General Aggregate Limit is the most that will be paid during a 12-month policy period for all damages under Coverage L, except damages due to bodily injury or property damage included in the products/completed work hazard; all medical expenses under Coverage M; and all damages under Coverage O. The General Aggregate Limit is Equal to Twice the Each Occurrence Limit. Show the General Aggregate Limit on the declarations Products/Completed Work Hazard Aggregate The Products/Completed Work Hazard Aggregate Limit is the most that will be paid during a 12-month policy period for damages due to bodily injury or property damage included in the products/completed work hazard. The Products/Completed Work Hazard Aggregate Limit is Equal to Twice the Each Occurrence Limit. Show the Products/Completed Work Hazard Aggregate Limit on the declarations. REV 6.0 Rules - 11 AAIS

23 FARMOWNERS MANUAL WEST VIRGINIA RULE 3 -- POLICYWRITING INSTRUCTIONS 3.1 Modular Policy Format A farmowners package policy (property and liability coverage) consists of the following modular sections: Coverage Part Dwelling Coverage Farm Coverage Additional Conditions and Property Coverage Terms Personal Liability Coverage or Commercial Liability Coverage Optional Endorsements State Amendatory Endorsements Declarations and Schedules Form Number FO-1, FO-2, FO-3, or FO-4 FO-6 FO-20 GL-2 or GL-610 Refer to Forms and Endorsements Listing 3.2 Endorsements Information called for as entries on endorsements can be shown on the declarations page or a supplemental schedule instead. 3.3 Inception Time The policy may be issued to take effect at 12:01 A.M. instead of 12 noon on the inception date at no additional premium. Show the inception time on the declarations page. REV 6.0 Rules - 12 AAIS

24 FARMOWNERS MANUAL 3.4 Policy Term WEST VIRGINIA Annual Rating information for annual policies is shown in this manual Three-Year Prepaid "THIS RULE DOES NOT APPLY" Three-Year Deferred "THIS RULE DOES NOT APPLY" Less Than One Year A policy may be written for a term of less than one year in order to maintain common anniversary dates with other policies. Prorate the annual premium Renewal Plan "THIS RULE DOES NOT APPLY" 3.5 Additional Interests The farmowners policy can be endorsed to cover the interests of coowners, farm partners, farm corporations, executors, administrators, trustees, or beneficiaries in the farm premises and operations or the interests of other residents of the insured premises. REV 6.0 Rules - 13 AAIS

25 WV FARMOWNERS MANUAL PROPERTY INTERESTS (Interests in Coverage s & Premises Liability forms FO-1, 2 & 3) The property coverage provided by the farmowners policy can be endorsed to cover the insurable interests of others in the covered property. ENDORSEMENT FO-41 Make entries to show the location of the premises, the names & addresses of the additional insured s & the extent of their interest FARM PERSONAL LIABILITY INTERESTS When the farmowners policy includes farm personal liability coverage, liability coverage for additional interests can be provided as follows: Not occupying a residence on the farm premises- The policy can be endorsed at no additional premium charge to cover the premises related liability exposures of additional insured s who do not occupy a residence on the farm. ENDORSEMENT GL-70 Make entries to show the location of the premises, the names & addresses of the additional insured s & the extent of their interests Occupying a separate residence on the farm premises- The policy can be endorsed to cover both the personal liability exposures of co-owners or partners who reside in a separate residence on the farm, as well as their interest in the farm premises & operations. Use the rating information in this manual to determine the personal liability charge for each additional partner or co-owner. ENDORSEMENT GL-71 Make entries to show the location of the premises, the names & addresses of the additional insured s & the extent of their interests Rev 1/12 Rules-14 AAIS

26 WV FARMOWNERS MANUAL Other residents of the named insured s household- The policy can be endorsed to provide personal liability coverage for other residents of the named insured s household who are not related to the named insured & who would not otherwise be covered as an insured under the policy. Use the rating information shown in this manual. ENDORSEMENT GL-72 Make entries to show the names of the additional insureds Commercial Liability Interests When the farmowners policy includes commercial liability coverage, the policy can be endorsed to cover the premises-related liability exposures of co-owners, controlling interests, mortgagees, assignees & receivers ENDORSEMENT GL-108 Make entries to show the policy number, names of the additional insureds & the location of the premises 3.6 Transfer or Assignment The policy cannot be endorsed to effect: --transfer to another location with the same state; or --assignment from one insured to another in the event of transfer of title of the property 3.7 Restriction of Coverage If a policy would not be issued because of unusual exposures, the applicant may request a restriction of coverage at no reduction in premium. The request, signed by the applicant, must be referred to the company ENDORSEMENT FO-304 Describe the restrictions that apply Rev 1/12 Rules-15 AAIS

27 FARMOWNERS MANUAL WEST VIRGINIA 3.8 Cancellation or Reductions in Limits or Coverages If the policy is canceled or the limits are reduced, the amount of any return premium due is calculated on a pro rata basis. 3.9 Extension of Coverage A -- No Private Structures -- Forms FO- 1, FO-2, and FO-3 "THIS RULE DOES NOT APPLY" 3.10 Contributing Insurance Coverage under the property section of the policy can be divided between two or more companies. -- All policies must contain the same deductible. -- All additional limits and coverages that apply to the property coverages must be divided between the companies. Coverage for scheduled personal property may be shared at the option of the companies. -- All liability coverage must be assumed entirely by one of the companies. Subtract the farm personal liability credit from the total premium and divide the remaining premium between the companies. -- All policies must include the policy number and company names and must identify the company providing the liability coverage. Attach Endorsement FO-178 and make the necessary entries. REV 6.0 Rules - 16 AAIS

28 FARMOWNERS MANUAL 3.11 Specially Rated Risks WEST VIRGINIA "THIS RULE DOES NOT APPLY" REV 6.0 Rules - 17 AAIS

29 FARMOWNERS MANUAL WEST VIRGINIA RULE 4 -- PREMIUM DETERMINATION The basic policy rating information shown in this manual contemplates coverage for the principal farm residence and farm personal liability exposures. Unless farm personal liability coverage is deleted, coverage for the following exposures is required if they exist. Use the rating information shown in this manual. -- All additional or secondary residence premises where the named insured or spouse maintains a residence or farm. -- All domestic employees of the named insured or spouse not covered or not required to be covered by Workers' Compensation Insurance. A charge is required for each domestic employee in excess of two. -- Incidental office, professional, private school, or studio occupancies by the named insured on residential premises of the named insured. -- Total farm acreage in excess of 160 acres. -- Each separate set of farm buildings. The initial farm exposure includes: -- The initial farm premises; -- All additional farm premises without buildings maintained by the named insured or spouse which are operated in conjunction with the initial farm premises. Rate other dwellings located on the initial farm premises as additional residence premises. REV 6.0 Rules - 18 AAIS

30 FARMOWNERS MANUAL WEST VIRGINIA Each additional farm includes any additional farm location with outbuildings, whether owned and operated by the insured or rented to others, and all vacant farm land used in conjunction with it. Rate other dwellings located on the additional farm as additional residence premises. 4.1 Calculation of Premium Dwelling and Farm Personal Liability Coverages Step 1 -- Determine the basic policy premium based on the amount of Coverage A or Coverage C, as applicable. Use the rating information for mobile homes if the principal farm residence is a mobile home. Step 2 -- Adjust the premium determined in Step 1 to reflect the elimination of or revised limits for Coverages B or C. Step 3 -- If Form GL-2 is not used to provide farm personal liability coverage or if the limit that applies to farm personal liability coverage is reduced, subtract the appropriate credit from the result of Step 2. Step 4 -- Multiply the result of Step 3 by the deductible factor. Step 5 -- Multiply the result of Step 4 by any premium modification factors that apply. Step 6 -- Multiply the result of Step 5 by the factors for any other mandatory or optional coverages that apply. Step 7 -- Add the result of Step 6 to the premiums or charges for any other mandatory or optional coverages that apply. REV 6.0 Rules - 19 AAIS

31 FARMOWNERS MANUAL WEST VIRGINIA Farm Coverages If the deductible option, premium modifications, or coverage options vary by item or class of property, calculate the premium for each item or class separately. Step 1 -- Multiply the blanket limit and/or the amount of insurance for each scheduled item by the appropriate rate. Step 2 -- Multiply the result of Step 1 by the deductible factor. Step 3 -- Multiply the result of Step 2 by any premium modification factors that apply. Step 4 -- Multiply the result of Step 3 by the factors for any other mandatory or optional coverages that apply. Step 5 -- Add the result of Step 4 to the premiums or charges for any other mandatory or optional coverages that apply Commercial Liability Coverage -- Form GL-610 Use rating information provided by the company if commercial liability coverage is provided by a form other than GL-610. Step 1 -- Determine the commercial liability premium based on the Coverage L limit and the initial farm acreage. Step 2 -- If the limit that applies to farm commercial liability coverage is reduced, subtract the appropriate credit from the result of Step 1. Step Add premiums or charges for any other mandatory or optional coverages that apply. REV 6.0 Rules - 20 AAIS

32 FARMOWNERS MANUAL WEST VIRGINIA Supplemental Insurance Contracts Determine the premium for other applicable coverages written by endorsement to this policy which are not otherwise provided for in this manual. Classify and rate such coverages in accordance with the company manual for other lines of insurance Total Farmowners Policy Premium The total farmowners policy premium is determined by adding the amounts calculated in Rules 4.1.1, 4.1.2, 4.1.3, and Changes in Limits or Addition of Coverages Policy limits may be increased or coverages added during the policy term. Compute the additional premium on a pro rata basis using the same forms, endorsements, and rating information in effect when the current policy premiums were calculated. REV 6.0 Rules - 21 AAIS

33 FARMOWNERS MANUAL RULE 5 -- DEDUCTIBLES WEST VIRGINIA A deductible amount is subtracted from all covered property losses, except the Incidental Property Coverages provided for Emergency Removal, Fire Department Service Charge, and if applicable, Refrigerated Food Spoilage, Extra Expense, Signs, Glass Breakage in Cabs, and Farm Operations Record Expense. The deductible amount is subtracted only once per occurrence at each location, regardless of the number of covered items affected. 5.1 Flat Deductibles -- All Perils/All Coverages The policy may be issued with a single deductible amount that applies to all perils and all coverages that are subject to the deductible provision. The following flat deductible options are available: Deductible Amount $ 500 1,000 2,500 5,000 Use the factors shown in this manual to adjust the premium and show the deductible amount on the declarations page. REV 4/03 Rules - 22 AAIS

34 FARMOWNERS MANUAL 5.2 Split Deductible Amounts WEST VIRGINIA The policy may be issued with a split deductible. This means the deductible option selected for property covered under Coverages A, B, and C differs from that selected for property covered under Coverages E, F, and G. When an occurrence affects two or more items at the same location with different deductible amounts, only the highest deductible applies. Apply the deductible factors shown in this manual for the selected options. Attach Endorsement FO-342 and make entries to show the deductible amount for each coverage. REV 6.0 Rules - 23 AAIS

35 FARMOWNERS MANUAL WEST VIRGINIA RULE 6 -- PREMIUM MODIFICATIONS 6.1 Protective Devices Use the protective device factors shown in this manual to adjust the premium for the installation of the following approved and properly maintained alarm and/or sprinkler systems: -- Central Station Burglary and/or Fire Alarms -- Fire Department and/or Police Department Alarms -- Local Alarms -- Including smoke and/or gas detection -- Sprinkler Systems Attach Endorsement FO Fire Protection The location of the building(s) determines its fire protection classification as defined below: Protected Partially Protected Unprotected Building is located within 1,000 feet of a fire hydrant and within five road miles of a responding fire department. Building is located over 1,000 feet from a fire hydrant but within five road miles of a responding fire department. All others. REV 6.0 Rules - 24 AAIS

36 FARMOWNERS MANUAL WEST VIRGINIA 6.3 Building Construction [Coverage A and (B if FO-48 Applies)] "THIS RULE DOES NOT APPLY" 6.4 Deletion of Coverage B -- Forms FO-1, FO-2, and FO-3 Coverage B -- Related Private Structures can be deleted unless Endorsement FO-151 is attached to extend the Coverage A limit. Use the factor shown in this manual to adjust the premium. Make an entry on the declarations page to show that Coverage B does not apply. 6.5 Deletion of Coverage C -- Forms FO-1, FO-2, and FO-3 Coverage C -- Personal Property can be deleted when the policy is issued to cover the farmowner who does not occupy the principal farm residence. Use the factor shown in this manual to adjust the premium. Make an entry on the declarations page to show that Coverage C does not apply. 6.6 Modified Replacement Cost Coverage -- Forms FO-2 and FO-3 (Does Not Apply to Mobile Homes) "THIS RULE DOES NOT APPLY" REV 6.0 Rules - 25 AAIS

37 FARMOWNERS MANUAL WEST VIRGINIA 6.7 Repair Cost Coverage -- Forms FO-2 and FO-3 (Does Not Apply to Mobile Homes) "THIS RULE DOES NOT APPLY" 6.8 Actual Cash Value Coverage -- Forms FO-1, FO-2, and FO-3 (Does Not Apply to Mobile Homes) "THIS RULE DOES NOT APPLY" 6.9 Replacement Cost Coverage for Mobile Homes -- Forms FO-2 and FO-3 "THIS RULE DOES NOT APPLY" REV 6.0 Rules - 26 AAIS

38 FARMOWNERS MANUAL 6.10 Limited Perils -- Form FO-6 WEST VIRGINIA The coverage provided for selected farm buildings and farm personal property under Coverages E, F, and G can be limited to risks of direct physical loss caused by specific perils. Use the limited perils factors shown in this manual to adjust the premium. When more than one peril is selected, use the sum of the factors for all selected perils to adjust the premium. Attach Endorsement FO-340 and describe the property subject to the limited perils coverage. Make entries to show which perils apply Deletion of Farm Personal Liability Coverage Use the credit shown in this manual to adjust the premium for the deletion of farm personal liability coverage when: -- farm personal liability coverage is omitted and replaced by commercial liability coverage; -- coverage under the property section of the policy is divided between two or more companies as permitted under the Contributing Insurance rule; or -- coverage for farm personal liability is not provided by the company. Make an entry on the declarations to show that farm personal liability coverage does not apply. The credit for the deletion of farm personal liability coverage also applies to the premium developed for an additional or secondary farm location if coverage for an additional residence premises occupied by the insured has been added to the policy that covers the primary location Tie-Down Credit The tie-down factor shown in this manual can be used to adjust the premium when covered structures are tied down. Refer to the company for tie-down specifications and eligibility for the tie-down credit. REV 6.0 Rules - 27 AAIS

39 FARMOWNERS MANUAL 6.13 Vacancy Permit WEST VIRGINIA The penalty that applies to buildings and their contents at a vacant or unoccupied locations can be waived for a specified period of time. Use the factor shown in this manual to adjust the premium. Attach Endorsement FO-75 and describe the vacant or unoccupied location. Make an entry to show the period permitted for vacancy or unoccupancy. REV 6.0 Rules - 28 AAIS

40 FARMOWNERS MANUAL WEST VIRGINIA RULE 7 -- PROPERTY COVERAGE OPTIONS -- DWELLING The optional property coverages described in this rule can be added when Form FO-1, FO-2, FO-3, or FO-4 is used to provide coverage for the principal farm residence. 7.1 Earthquake Coverage for direct physical loss caused by earthquake can be added for property covered under Coverages A, B, and C. The limit for this coverage must be the same as the Coverage A limit. If the limits that apply to property covered under Coverages B or C have been increased or if the Coverage D limit has been increased, increase the earthquake premium accordingly. A special deductible provision applies. Use the rating information shown in this manual. Attach Endorsement FO-54. If coverage is provided for exterior masonry veneer, make an entry to show that the masonry veneer exclusion does not apply. 7.2 Water Damage -- Sewers, Drains, and Sumps Coverage for direct physical loss caused by water that backs up through sewers or drains or overflows from a sump can be added for property covered under Coverages A, B, and C. Coverage for such loss is limited to $5,000; a $500 deductible applies. Use the rating information shown in this manual. Attach Endorsement FO Sprinkler Leakage When a premium credit has been allowed for the installation of an approved and properly maintained sprinkler system, coverage can be added for direct physical loss to property covered under Coverages A, B, or C resulting from the accidental leakage of the sprinkler system. Use the rating information shown in this manual. Attach Endorsement FO-307 and describe the covered property. Make entries to show the limits that apply. REV 4/03 Rules - 29 AAIS

41 WV FARMOWNERS MANUAL 7.4 Automatic adjustment of limits THIS RULE DOES NOT APPLY 7.5 Dwelling under construction-theft Coverage can be provided for theft or attempted theft in or to a residence being built or a newly Constructed residence before it is occupied. Coverage also applies to theft of materials & supplies used in construction of residence. Use the rating information shown in this manual. Attach Endorsement FO-125 & make entries to show the effective date of the coverage & the limit that applies. 7.6 Private Structures-Increased limits for specific structures An additional amount of insurance can be provided for specific private structures that are covered under Coverage B. Use the rating information shown in this manual. Attach Endorsement FO-48 & describe the covered structures. Make an entry to show the additional amount of coverage that applies to each structure. 7.7 Personal property Increased limit The coverage C limit can be increased. Use the rating information shown in this manual. Show the Coverage C limit on the declarations page Reduced limit THIS RULE DOES NOT APPLY Rev 11/11 Rules-30 AAIS

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69 FARMOWNERS MANUAL WEST VIRGINIA TERRITORIAL DEFINITIONS County Territory Barbour 136 Berkeley 136 Boone 134 Braxton 136 Brooke 135 Cabell except City of Huntington 133 City of Huntington 132 Calhoun 136 Clay 136 Doddridge 136 Fayette 291 Gilmer 136 Grant 136 Greenbrier 136 Hampshire 136 Hancock 135 Hardy 136 Harrison 136 REV 6.0 TD - 1 AAIS

70 FARMOWNERS MANUAL WEST VIRGINIA County Territory Jackson 135 Jefferson 136 Kanawha except City of Charleston 131 City of Charleston 130 Lewis 136 Lincoln 134 Logan 134 McDowell 134 Marion 136 Marshall 135 Mason 135 Mercer 134 Mineral 136 Mingo 134 Monongalia 136 Monroe 292 Morgan 136 Nicholas 136 Ohio 135 Pendleton 136 REV 6.0 TD - 2 AAIS

71 FARMOWNERS MANUAL WEST VIRGINIA County Territory Pleasants 135 Pocahontas 136 Preston 136 Putnam 135 Raleigh 134 Randolph 136 Ritchie 136 Roane 136 Summers 292 Taylor 136 Tucker 136 Tyler 135 Upshur 136 Wayne except City of Huntington 133 City of Huntington 132 Webster 136 Wetzel 135 Wirt 136 Wood 135 Wyoming 134 REV 6.0 TD - 3 AAIS

72 FARMOWNERS MANUAL WEST VIRGINIA "RESERVED FOR FUTURE USE" REV 6.0 TD - 4 AAIS

73 WEST VIRGINIA FARMOWNERS MANUAL PROTECTED - FRAME $500 DEDUCTIBLE DWELLING COVERAGE TYPE 1 TYPE II TYPE III A FO-1 FO-2 FO-3 FO-1 FO-2 FO-1 25, , , , , , , , , , , , , , , , , , , , , , ,033 1, , ,093 1, , ,012 1,033 1,153 1, , ,011 1,064 1,087 1,213 1, , ,061 1,117 1,140 1,273 1,282 Each Add'l 10, FMIC REV 01/2005 RATING INFORMATION - 1 AAIS

74 WEST VIRGINIA FARMOWNERS MANUAL PARTIALLY PROTECTED - FRAME $500 DEDUCTIBLE DWELLING COVERAGE TYPE 1 TYPE II TYPE III A FO-1 FO-2 FO-3 FO-1 FO-2 FO-1 25, , , , , , , , , , , , , , , , , , , ,045 1, , ,001 1,118 1, , ,046 1,068 1,193 1, , ,054 1,111 1,133 1,265 1, , ,116 1,175 1,198 1,339 1, ,000 1,053 1,176 1,240 1,263 1,411 1, ,000 1,109 1,238 1,304 1,330 1,486 1, ,000 1,164 1,299 1,368 1,398 1,559 1,571 Each Add'l 10, FMIC REV 01/2005 RATING INFORMATION - 2 AAIS

75 WEST VIRGINIA FARMOWNERS MANUAL UNPROTECTED - FRAME $500 DEDUCTIBLE DWELLING COVERAGE TYPE 1 TYPE II TYPE III A FO-1 FO-2 FO-3 FO-1 FO-2 FO-1 25, , , , , ,000 55, , , , , , , , , , , ,073 1, , ,038 1,095 1,116 1,246 1, ,000 1,069 1,193 1,257 1,282 1,432 1, ,000 1,150 1,283 1,352 1,379 1,540 1, ,000 1,231 1,373 1,447 1,476 1,647 1, ,000 1,310 1,464 1,542 1,572 1,756 1, ,000 1,392 1,553 1,636 1,672 1,863 1, ,000 1,472 1,643 1,731 1,766 1,972 1, ,000 1,553 1,734 1,827 1,863 2,080 2, ,000 1,634 1,824 1,922 1,961 2,188 2, ,000 1,715 1,914 2,017 2,058 2,296 2,315 Each Add'l 10, FMIC REV 01/2005 RATING INFORMATION - 3 AAIS

76 WEST VIRGINIA FARMOWNERS MANUAL PROTECTED - MASONRY $500 DEDUCTIBLE DWELLING COVERAGE TYPE 1 TYPE II TYPE III A FO-1 FO-2 FO-3 FO-1 FO-2 FO-1 25, , , , , , , , , , , , , , , , , , , , , , , , , ,009 1, , ,061 1,070 Each Add'l 10, FMIC REV 01/2005 RATING INFORMATION - 4 AAIS

77 WEST VIRGINIA FARMOWNERS MANUAL PARTIALLY PROTECTED - MASONRY $500 DEDUCTIBLE DWELLING COVERAGE TYPE 1 TYPE II TYPE III A FO-1 FO-2 FO-3 FO-1 FO-2 FO-1 25, , , , , , , , , , , , , , , , , , , , , , , , ,053 1, , ,111 1, , ,027 1,049 1,168 1, , ,023 1,077 1,100 1,226 1,238 Each Add'l 10, FMIC REV 01/2005 RATING INFORMATION - 5 AAIS

78 WEST VIRGINIA FARMOWNERS MANUAL UNPROTECTED - MASONRY $500 DEDUCTIBLE DWELLING COVERAGE TYPE 1 TYPE II TYPE III A FO-1 FO-2 FO-3 FO-1 FO-2 FO-1 25, , , , , , , , , , , , , , , , , , ,003 1, , ,078 1, , ,012 1,033 1,154 1, , ,025 1,078 1,101 1,226 1, , ,088 1,143 1,168 1,305 1, ,000 1,030 1,151 1,211 1,237 1,382 1, ,000 1,086 1,215 1,278 1,303 1,457 1, ,000 1,142 1,278 1,343 1,370 1,534 1, ,000 1,199 1,341 1,410 1,440 1,609 1,619 Each Add'l 10, FMIC REV 01/2005 RATING INFORMATION - 6 AAIS