PERSONAL AUTO MANUAL

Transcription

1 PERSONAL AUTO MANUAL TABLE OF CONTENTS ITEM RULE # PA PAGE Antique Autos Application Procedure Artisan Rating Factor Auto Loan/Lease Coverage Campers (See Pickup Camper Bodies and Toppers) Cancellation/Nonrenewal Changes Classic Autos Classification Definitions Age, Sex and Marital Status Classifications (Of Operator) Use Classifications Classification Procedure Classification Changes Multi-Car Risks Primary Classification Secondary Classification Single Car Risks Coverages - Limits and Deductibles Base Rates Deductible Insurance Medical Payments Physical Damage for Vehicles Over 10 Years Old Split Liability Limits Uninsured Motorists and Underinsured Motorists Coverage Customizing Equipment Coverage Definitions Artisan Vehicles Farm Family Corporations and Partnerships Farm Truck Federal Government Employees Pickups and Vans Private Passenger Auto Discounts Accident Prevention Course Anti-Theft Companion Policy Good Student Household Mature Driver Multi-Car Passive Restraint Electric Autos Eligibility Personal Auto Policy Eligibility Vehicles and Drivers Employers Non-ownership Liability Excess Electronic Equipment Cov. & Tapes, Records, Disks & Other Media Cov Extended Non-Owned Coverage (Borrowed Or Rented Autos) Iowa (Ed. 007) New Business North Star Mutual Ins. Co. Renewals

2 PERSONAL AUTO MANUAL TABLE OF CONTENTS CONTINUED ITEM RULE # PA PAGE Farm Truck Rating Factor Table Financial Responsibility Filings Installment Premium Payment Option Insurance Score Loan/Lease Coverage Motor Homes Named Non-Owner Coverage Nonrenewal (See Cancellation/Nonrenewal) Optional Limits Transportation Expenses Coverage (Rental Expense Cov.) Pickup Camper Bodies and Toppers Policy Period and Continuation Premium Calculation Steps Premium Determination Premium Determination - Farm Trucks Pro-Rata Changes Questionable Applicants Rate Change Rates For Symbols Not Displayed Rating Factors and Statistical Codes Primary Classifications Secondary Classifications Rating Territories and Factors Rating Tier Selection And Factors Auto Discount Selection Guide Roadside Assistance Safe Driver Insurance Plan (SDIP) Administration of SDIP Combination Accidents and Convictions Definitions Driving Record Sub-Classification Multi-Car Risk Schedule of Endorsements Suspension Symbol Determination for Pickups, Vans, Farm Trucks and Unlisted Vehicles Towing and Labor Costs (See Roadside Assistance) Trailers Designed for Use with Private Passenger Autos Transportation Expenses Coverage Optional Limits (Rental Expense Cov.) Trusts as Additional Insureds Undesirable Vehicles Whole Dollar Premium Territory Definitions... T-1 T-4 Iowa (Ed. 007) New Business North Star Mutual Ins. Co. Renewals

3 A. C. PERSONAL AUTO MANUAL RULE 1 - PERSONAL AUTO POLICY - ELIGIBILITY A Personal Auto Policy will be used to provide coverage to private passenger autos, and motor vehicles considered as private passenger autos in RULE 2 if: 1. They are written on a specified auto basis; and 2. They are owned by an individual or by spouses who are residents in the same household. Both spouses who are residents in the same household may be listed as named insureds on the declarations page. B. A Personal Auto Policy will be used to provide coverage to private passenger autos, pickups, and vans that are owned jointly by two or more: 1. resident relatives other than spouses; or 2. resident individuals; or 3. non-resident relatives, including non-resident spouses; if: a. they are written on a specified auto basis; and b. the Joint Ownership Coverage endorsement is attached. A Personal Auto Policy will be used to provide coverage to motor homes if: 1. they are written on a specified vehicle basis; 2. they are owned by an individual, by spouses who are residents of the same household, or by two or more resident relatives; and 3. the Miscellaneous Type Vehicle Endorsement is attached. D. Private Passenger Autos owned by corporations, co-partnerships, or unincorporated associations are not eligible. Exception: Private Passenger Autos owned by farm family co-partnerships or farm family corporations principally garaged on a farm or ranch shall be classified and rated in accordance with RULES 3 and 4, provided that vehicle is not used in an occupation other than farming or ranching. E. A Personal Auto Policy will be used to provide coverage to farm trucks provided they meet the requirements in RULE 1, Paragraph A. and are not used to haul for others or for hire. F. NAMED NON-OWNER PP A Personal Auto Policy may be used to provide coverage to a named individual who does not own an auto. The named non-owner coverage endorsement must be attached. This coverage may be used for existing accounts only. Not to be used on new business. RULE 2 - DEFINITIONS A. 1. PRIVATE PASSENGER AUTO A private passenger auto is a four wheel motor vehicle, other than a truck type, owned or leased under contract for a continuous period of at least six months, and: a. not used as a public or livery conveyance for passengers; b. not rented to others; and c. not enrolled in a personal vehicle sharing program or being used in connection with such a sharing program. Iowa (Ed. 005) New Business North Star Mutual Ins. Co. PA - 1 Renewals

4 RULE 2 - DEFINITIONS (Continued) 2. PICKUPS AND VANS A pickup or van shall be considered a private passenger auto, if it: a. is owned by an individual or by spouses who are residents of the same household; b. has a Gross Vehicle Weight Rating of 10,000 lbs. or less; and c. is not used for the delivery or transportation of goods or materials unless such use is: 1) incidental to the insured s business of installing, maintaining or repairing furnishings or equipment as an Artisan (see definition of Artisan Vehicle below); or 2) for farming or ranching. 3. FEDERAL GOVERNMENT EMPLOYEES PP A pickup or van used in the business of the United States Government, by an employee of the Government, shall be considered a private passenger auto only if: a. it meets the conditions in 2.a., 2.b. and 2.c. above; and b. coverage is limited in accordance with the federal employees using autos in government business endorsement. 4. FARM FAMILY CORPORATIONS AND PARTNERSHIPS NSG-PA02 A motor vehicle owned by a farm family co-partnership or farm family corporation shall be considered a private passenger auto owned by two or more relatives who are residents of the same household if: a. it is principally garaged on a farm or ranch; and b. it otherwise meets the definitions in 1. and 2. above. 5. FARM TRUCK NSG-PA04 A farm truck is a truck type motor vehicle, including semi-tractors which is used for farming purposes, but which is not used for pleasure, commuting to work or hauling for hire. 6. ARTISAN VEHICLE An artisan vehicle is a pickup, van or SUV with a Gross Vehicle Weight Rating of 10,000 lbs. or less. The use must not be for the delivery or transportation of goods or materials unless such use is incidental to the insureds business of installing, maintaining or repairing furnishings or equipment. (i.e. carpenter, electrician, plumber, plasterer, or painter) B. AUTO as used in this manual refers to a private passenger auto or a vehicle considered as a private passenger auto. C. LIABILITY as used in this manual refers only to Bodily Injury and Property Damage Coverages. D. OTHER THAN COLLISION (OTC) COVERAGE as used in this manual refers to other than collision damage to a motor vehicle. E. OWNED as used in this manual includes an auto leased under contract for a continuous period of at least six months. If an auto lease contract requires the lessee to provide primary insurance for the lessor, attach the Additional Insured-Lessor endorsement PP F. GROSS VEHICLE WEIGHT RATING as used in this manual refers to the maximum loaded weight for which a single vehicle is designated, as specified by the manufacturer. Iowa (Ed. 005) New Business North Star Mutual Ins. Co. PA - 2 Renewals

5 RULE 3 - CLASSIFICATION DEFINITIONS A. USE CLASSIFICATIONS 1. BUSINESS USE means that the use of the auto is required by or customarily involved in the duties of the applicant or any other person customarily operating the auto, in an occupation, profession or business, other than going to or from the principal place of occupation, profession or business. 2. FARM USE means the auto is principally garaged on a farm or ranch, and: a. it is not customarily used in going to or from work other than farming or ranching; b. it is not customarily used in going to or from school; c. it is not customarily used in any occupation other than farming or ranching; and d. a substantial portion of the insured s income is derived from active farming or ranching. 3. PLEASURE USE means: a. no BUSINESS USE; and b. personal use including driving to or from work or school: 1) less than 3 road miles one way; or 2) 3 or more, but less than 15, road miles one way for not more than 2 days per week or not more than 2 weeks in any 5 week period. 4. WORK LESS THAN 15 MILES means: a. no BUSINESS USE; and b. personal use including driving to or from work or school: 1) 3 or more, but less than 15, road miles one way if such usage is more than 2 days per week or more than 2 weeks per 5 week period; or 2) 15 or more, but less than 30, road miles one way, for not more than 2 days per week or not more than 2 weeks in any 5 week period. 5. WORK 15 OR MORE BUT LESS THAN 30 MILES means: a. no BUSINESS USE; and b. personal use including driving to or from work or school: 1) 15 or more, but less than 30, road miles one way more than 2 days per week or more than 2 weeks in any 5 week period; or 2) 30 or more road miles one way for not more than 2 days per week or not more than 2 weeks in any 5 week period. 6. WORK 30 OR MORE MILES means: personal use including driving to or from work or school 30 or more road miles one way more than 2 days per week or more than 2 weeks in any 5 week period. 7. An auto driven part way to or from work or school, such as to a railroad or bus depot, whether or not the auto is parked at the depot during the day, shall be considered as driving to or from work or school. 8. An auto used by a member of the clergy shall not be considered as used for business or driven to and from work. Rate as pleasure use. LIABILITY COVERAGE ONLY 9. An auto used in the business of the U.S. Government by one of its employees may be classified and rated as PLEASURE USE, WORK LESS THAN 15 MILES or WORK 15 OR MORE MILES when the Federal Employees Using Autos In Government Business endorsement PP is used to limit coverage. Iowa (Ed. 002) New Business North Star Mutual Ins. Co. PA - 3 Renewals

6 RULE 3 - CLASSIFICATION DEFINITIONS (Continued) B. AGE, SEX AND MARITAL STATUS CLASSIFICATIONS 1. YOUTHFUL OPERATOR means an applicant or any other operator resident in the same household as the applicant, who customarily operates the auto, and is one of the following: a. YOUTHFUL UNMARRIED FEMALE OPERATOR - unmarried female age 24 and younger; b. YOUTHFUL MARRIED MALE OPERATOR - married male age 24 and younger; c. YOUTHFUL UNMARRIED MALE OPERATOR - unmarried male age 24 and younger who is not an owner or principal operator; or d. YOUTHFUL UNMARRIED MALE OWNER OR PRINCIPAL OPERATOR - unmarried male age 24 and younger who is an owner or principal operator. 2. OPERATORS AGE 50 AND OVER a. Subject to paragraphs b. and c. below, the Operator Age shall determine the primary classification. b. If all operators in the household are age 50 or over, the classes shall apply to all autos. c. If there are operators in the household under age 50: 1) Any youthful operator class shall apply in accordance with the youthful operator rules. 2) Autos principally operated by an adult under age 50 shall be rated at the All Other or Only Operator Female Age Classification (unless a youthful operator classification is applicable). 3. AGE means the age attained on the last birthday. 4. MARRIED means a married person living with his or her spouse and includes a person widowed, divorced or legally separated only if such person has custody of one or more resident children. 5. PRINCIPAL OPERATOR means: a. an individual whose operation of the auto constitutes 50% or more of its time or mileage use is considered a principal operator. b. each individual who does not qualify as a principal operator as defined in a. above but whose aggregate operation of all private passenger automobiles in the household equals 50% or more of the total time or mileage use of one insured automobile is considered a principal operator for one such automobile. c. if two or more unmarried males age 24 and younger do not individually qualify as principal operator but their combined use of the automobile constitutes 50% or more of its total time or mileage use, the automobile is considered as having a principal operator of the same age as the unmarried male age 24 and younger who is the most frequent operator. The same interpretation applies to situations involving two or more unmarried females age 24 and younger. d. When two or more vehicles are insured for a principal operator with a youthful driver class code, the youthful operator - principal driver factor will apply to the highest rated vehicle whether principally operated or not. The all other class factor will apply to the other vehicles insured. 6. RESIDENT means anyone residing in the same household. Exceptions: a. A person in active military service with the armed forces of the United States of America is not considered a resident in the applicant s household unless this person customarily operates the auto. This applies to military assignment after basic training. Iowa (Ed. 005) New Business North Star Mutual Ins. Co. PA - 4 Renewals

7 RULE 3 - CLASSIFICATION DEFINITIONS (Continued) b. If a YOUTHFUL UNMARRIED FEMALE OPERATOR is a student residing at an educational institution over 100 road miles from the address of the named insured shown on the declarations and does not have a car with her, she is rated under the All Other class on the highest rated vehicle. This does not apply to OTC only vehicles. c. If a YOUTHFUL UNMARRIED MALE OPERATOR is a student residing at an educational institution over 100 road miles from the address of the named insured shown on the declarations and does not have a car with him, he is rated as if he is MARRIED on the highest rated vehicle. This does not apply to OTC only vehicles. Note: For the purpose of Exception c., if the rating factor for a married youthful operator is greater than the factor for an unmarried youthful operator, use the lower factor and corresponding statistical code. RULE 4 - CLASSIFICATION PROCEDURE Refer to RULE 3 - CLASSIFICATION DEFINITIONS for definitions of terms used in this rule. A. Autos owned by an individual, or owned jointly by two or more relatives or resident individuals are classified as follows: 1. PRIMARY CLASSIFICATION a. Classify the auto according to the age, sex and marital status of the operators, the use of the auto and the eligibility of youthful operators Good Student classes; and b. Determine the applicable factor from the Primary Rating Factor tables. Note: The exposure increases considerably when a youthful driver is first learning to drive. It is therefore required that when a youthful driver can legally drive unsupervised he or she be added to the policy as a driver and the appropriate youthful driver classification be applied on the next renewal date. There are two separate factors for youthful drivers one factor for OTC coverage and one for all other coverage types. In the Primary Rating Factor tables, these are noted as Other/OTC. 2. SECONDARY CLASSIFICATION a. Determine if the auto is: 1) a single car; or 2) part of a multi-car risk. b. Refer to the Safe Driver Insurance Plan to classify operators according to the provisions of the Plan. c. Refer to the Secondary Rating Factor table to determine the appropriate factor to be added to, or subtracted from the Primary Rating Factor to determine the Total Rating Factor. 3. The applicable Youthful Operator Classifications shall be applied as follows: Determine the number of Youthful Operators and the Primary Rating Factor for each at the Pleasure Use Classification. a. If there are more cars than Youthful Operators, or an equal number of cars and Youthful Operators, assign operators to cars as follows: 1) Each principal Youthful Operator to the car principally operated; 2) Remaining Youthful Operators to remaining cars in the order of highest rated Youthful Operator to the car with the highest Total Base Premium without regard to the cars operated; and 3) Any remaining cars at the appropriate No Youthful Operator classification. 4) If an insured is provided with a company vehicle that vehicle will be considered as their primary auto and therefore that person should not be rated on a vehicle on the policy. Iowa (Ed. 004) New Business North Star Mutual Ins. Co. PA - 5 Renewals

8 RULE 4 - CLASSIFICATION PROCEDURE (Continued) b. If there are more Youthful Operators than cars, assign Youthful Operators to cars as follows: 1) Select the Youthful Operators with the highest Pleasure Use rating factors equal to the number of cars. 2) Of those selected in paragraph 1), assign any principal operator to the cars they principally operate. 3) Of those remaining after principal operator assignment in paragraph 2), assign operators to cars in the order of highest rated Youthful Operator to the car with the highest Total Base Premium. After assigning Youthful Operators to cars on the basis of the primary Pleasure Use factors, each factor must be adjusted for the actual car use before determining and applying the Secondary Rating Factor. c. If the TOTAL BASE PREMIUM is the same for each car, the classification for any youthful operator who is not the principal operator of any of the autos is applied to the auto with the lowest rated use classification. TOTAL BASE PREMIUM is the sum of the base premiums for Bodily Injury and Property Damage Liability, Medical Payments, Other Than Collision (OTC) and Collision coverages that apply to the auto. 4. SINGLE CAR RISKS AND MULTI-CAR RISKS a. Single Car Risks If the number of youthful operators exceeds the number of autos, the Youthful Operator Classifications with the highest Primary Rating Factors apply. In determining such classifications, any Good Student qualification shall apply. b. Multi-Car Risks The applicable Multi-Car Rating Factor applies if more than one private passenger auto is owned by an individual or owned jointly by two or more resident relatives, and two or more such autos are insured in North Star for any of the following coverages: Bodily Injury Liability, Property Damage Liability, Medical Payments, Other Than Collision (OTC) or Collision insurance. The vehicle operators must be resident relatives of the insured's household. For purposes of this rule, a relative shall include the following persons: Spouse; Child, adopted child, stepchild or grandchild; Parent, stepparent or grandparent; Brother or stepbrother; or Sister or stepsister. Motor Homes, Farm Trucks, or trailers are not eligible for the Multi-Car discount and do not qualify other vehicles for the Multi-Car discount. B. CLASSIFICATION CHANGES Compute premium adjustments on a pro-rata basis when changes in Primary and Secondary Rating Classifications are made. This includes the addition or deletion of an operator during the policy term. Exceptions: 1. A policy shall not be changed mid-term because of the attained age of an operator of the auto. 2. A policy shall not be changed mid-term to affect a change in the Driving Record Sub-Classification. 3. A policy shall not be changed mid-term solely due to a change in symbol assignment based on a review of loss experience for vehicle series rating by the Insurance Services Office. Iowa (Ed. 003) New Business North Star Mutual Ins. Co. PA - 6 Renewals

9 RULE 5 - DISCOUNTS A. COMPANION POLICY DISCOUNT 1. The Companion Policy Discount allows an additional discount, (for Select, Preferred and Five Star rated vehicles) on the auto premium for those insureds who have their Homeowners, Mobile Homeowners or Farmowners Policy with North Star Mutual Insurance Company. Tenants forms must carry a minimum amount of $30,000 on Coverage C to qualify for the discount. Apply the discount to each coverage requested on the application. There may be some variance due to rounding procedures. The vehicle operators must be resident relatives of the insured's household or students enrolled in school full time, as defined by the school. Dwelling Fire and Farm Fire policies do not apply. 2. The discount amount will be as follows: a. 22% of liability premiums (BI, PD, UM, UIM, MP) b. 17% of the premium of all other coverages. 3. The discount shall continue for each subsequent auto renewal, provided the individual continues to maintain the qualifying policy with North Star Mutual Insurance Company. 4. On existing policies, the discount will only be applied at renewal. 5. Qualification for the Companion Policy Discount assumes that all personal autos of the insured are being written with North Star Mutual. 6. Show the qualifying policy number in the REMARKS section of the application. B. MULTI-CAR DISCOUNT The applicable Multi-Car Rating Factor applies if more than one eligible private passenger auto is owned and operated by an individual or by two or more resident relatives and the vehicles are insured on the same policy. Refer to the Secondary Classifications for application of the Rating Factors and Statistical Codes. C. HOUSEHOLD DISCOUNT The Household Discount applies when there is only one eligible private passenger rated auto insured on the policy and a resident relative insures one or more eligible private passenger rated auto(s) on a separate policy in our company. This discount provides a -.19 rating factor which is applied to the primary rating factor. The discount may also apply if the insured only has one vehicle on the policy and is supplied a company car or has a separate commercial auto policy. It may also apply to non-traditional couples both insuring their autos with North Star on separate policies. The Household Discount and the Multi-Car Discount may not apply simultaneously on the same policy. D. ANTI-THEFT DISCOUNT These discounts apply to Other Than Collision (OTC) Coverage only. To qualify, the vehicle must be equipped with: 1. a hood lock which can be released only from inside the vehicle; and 2. a device meeting the criteria of either paragraph a. or b. below: a. Alarm ONLY (Coverage Code 1) and Active Disabling Devices (Coverage Code 2) A 5% discount on Other Than Collision (OTC) Coverage will be provided on vehicles equipped with 1) alarm only devices which sound an audible alarm that can be heard at a distance of at least 300 feet for a minimum of three minutes, or 2) active disabling devices which disable the vehicle by making the fuel, ignition or starting system inoperative. A disabling device is categorized as active if a separate manual step IS required to engage the device. b. Passive Disabling Device (Coverage Code 3) A 15% discount on Other Than Collision (OTC) Coverage will be provided on vehicles equipped with passive disabling devices which disable the vehicle by making the fuel, ignition or starting system inoperative. A disabling device is categorized as passive if a separate manual step is NOT required to engage the device. If a vehicle is equipped with more than one qualifying device, only the single highest discount shall apply. Refer to Company for required evidence of installation of anti-theft devices meeting the above criteria prior to granting a discount. Iowa (Ed. 007) New Business North Star Mutual Ins. Co. PA - 7 Renewals

10 RULE 5 - DISCOUNTS (Continued) E. PASSIVE RESTRAINT DISCOUNT The following discounts apply to Medical Payments Coverage ONLY. To qualify, the private passenger auto must be equipped with a factory installed automatic occupant restraint conforming to the federal crash protection requirements, and meeting the criteria of either paragraph 1. or 2. below: 1. 20% discount will be provided when the restraint is installed in the driver-side-only position % discount will be provided when the restraints are installed in both front outboard seat positions. F. ACCIDENT PREVENTION COURSE DISCOUNT (Defensive Driver) 1. A 5% Motor Vehicle Accident Prevention Course Discount shall be applied to the premiums for Bodily Injury Liability, Property Damage Liability, Medical Payments and Collision coverages provided the principal operator of the motor vehicle has a completion certificate certifying that he or she has successfully completed an accident prevention course approved by the Superintendent of the State Highway Patrol. To be eligible for the discount, a principal operator who was age 50 or older when he or she completed the course must have a completion certificate dated within the most recent 36 months. (ATTACH PHOTOCOPY OF CERTIFICATE to application or request for discount.) 2. The discount applies as follows: a. to new and renewal policies with inception dates within the 36-month period following the course completion date if the principal operator was age 50 or older when he or she completed the course. b. only to the motor vehicle principally operated by the insured with the course completion certificate. c. only once to each such motor vehicle regardless of the number of operators with course completion certificates. 3. The discount shall not apply if the operator who completed the course: a. is eligible for a Driver Training Classification according to the Personal Auto Manual; or b. has been assigned one or more points under the Safe Driver Insurance Plan as a result of accidents or convictions. Current Business - The Accident Prevention Course Discount will be continued only if a new certificate is sent to the Home Office. The Home Office will send a notice to the agent approximately 90 days prior to the renewal date, stating that a new Accident Prevention Course Certificate is required. It is then the agent s responsibility to forward the new certificate to the Home Office prior to the renewal notice being issued. This means that we must receive it no later than 45 days prior to the renewal date. Midterm class changes to apply the Accident Prevention Course Discount will be processed using the current date. Back dating the effective date is not permitted. G. GOOD STUDENT DISCOUNT The applicable Good Student Classification in the Primary Classification Rating Table applies provided: 1. The owner or operator is a full time high school, college or university student. A full time student means a student enrolled in school full time, as defined by the school. 2. A certified statement from a school official is presented to the Company on each annual anniversary date of the policy indicating that the student has met one of the following requirements during the immediately preceding school semester: a. is in the upper 20% of his/her class scholastically; b. maintains a B average, or its equivalent. If the letter grading system cannot be averaged, then no grade can be below B ; c. when in a school maintaining a numerical grade, must have at least a 3 in a 4, 3, 2, 1 point system or its equivalent; or d. student is included in a Dean s List, Honor Roll or comparable list indicating scholastic achievement. Iowa (Ed. 004) New Business North Star Mutual Ins. Co. PA - 8 Renewals

11 RULE 5 - DISCOUNTS (Continued) 3. The Good Student discount will stay in effect through age 24 even if the owner or operator is no longer a full-time student if the owner/operator graduated from Vocational School, College, or University and was eligible during the last semester attended. Current Business - The Good Student Discount will be continued only if a new certificate is sent to the Home Office annually. The Home Office will send a notice to the agent approximately 90 days prior to the renewal date, stating that a new Good Student Certificate is required. It is then the agent s responsibility to forward the new certificate to the Home Office prior to the renewal notice being issued. This means that we must receive it no later than 45 days prior to the renewal date. Midterm class changes to apply the Good Student Discount will be processed using the current date. Back dating the effective date is not permitted. H. MATURE DRIVER DISCOUNT Any driver in the age group receives the best rating factors available. Generally, the discount is 15% as compared to younger age groups. RULE 6 - SAFE DRIVER INSURANCE PLAN (SDIP) A. DEFINITIONS 1. DRIVING RECORD POINTS a. Convictions Points shall be assigned for convictions during the experience period for motor vehicle violations of the applicant or any other current resident operator as follows: 1) One-half point is assigned for conviction of any moving traffic violation by any driver under the age of 30 which is not assigned under one of the following paragraphs (This is limited to the first two convictions during the experience period). 2) One point shall be assigned for the conviction of any moving traffic violation resulting in: a) suspension or revocation of an operator's license; b) the filing of evidence of financial responsibility under any Financial Responsibility Law required as of the effective date of the policy; or c) the third and successive convictions not qualifying under paragraphs one and four of this section by a driver under age 30. 3) Two points shall be assigned for: a) the accumulation of points under a State Point System or a series of convictions requiring the filing of evidence of Financial Responsibility under any Financial Responsibility Law as of the effective date of the policy; or b) conviction of reckless driving. 4) Three points are assigned for conviction of: a) driving while intoxicated or under the influence of drugs; b) failure to stop and report when involved in an accident; c) homicide or assault arising out of the operation of a motor vehicle; d) driving while license is suspended or revoked; or e) driving a motor vehicle at an excessive rate of speed and/or in a reckless manner where an injury to person or damage to property results. 5) Minor Traffic Violations Exception The first two speeding citations within a 12-month period for not more than 10 miles per hour in excess of legal speed zones that are equal to or greater than 35 miles per hour and not greater than 55 miles per hour shall not be counted as moving violations. Iowa (Ed. 003) New Business North Star Mutual Ins. Co. PA - 9 Renewals

12 RULE 6 - SAFE DRIVER INSURANCE PLAN (SDIP) (Continued) b. Accidents Points shall be assigned for each accident that occurred during the experience period, involving the insured or operator of the vehicle, who is 50% or more at fault. 1) One-half point is assigned for each auto accident that results in total amount paid under Bodily Injury, Property Damage, Medical Payments and Collision less than $2,000 for occurrences prior to or less than $2,500 for occurrences on or after ) One point is assigned for each auto accident that results in: a) total amount paid under Bodily Injury, Property Damage, Medical Payments and Collision of $2,000 or more for occurrences prior to or $2,500 or more for occurrences on or after ; or b) a loss experienced under the Other Than Collision (OTC) Coverage portion of the policy under the following conditions: A vehicle falling through the ice of any body of water; An at fault accident in which the loss would normally be paid under Collision Coverage, but glass breakage is paid under the OTC Coverage; 3) One point is assigned if, during the experience period there were two or more accidents each of which resulted in payment but have not been assigned a point under 2) above. 4) Chargeable losses resulting from the operation of a farm truck, motor home, artisan vehicle or an antique auto are subject to the provisions of the Safe Driver Insurance Plan. Exceptions: 1) No points are assigned for accidents incurred by an operator demonstrated to be a named insured or a principal operator of an auto insured under a separate policy in this Company. In this situation the points will be assigned to the policy on which the operator is a named insured or principal operator. 2) No points are assigned for accidents occurring under the following circumstances: a) auto lawfully parked (if the parked vehicle rolls from the parked position then any such accident is charged to the person who parked the auto); b) the applicant, owner or other resident operator involved in an accident is (1) determined to be 50% or less negligent; or (2) reimbursed for 50% or more of his or her damages by, or on behalf of persons involved in the accident; c) auto is struck in the rear by another vehicle and the applicant or other resident operator has not been convicted of a moving traffic violation in connection with this accident; d) operator of the other auto involved in the accident was convicted of a moving traffic violation and the applicant or resident operator was not convicted of a moving traffic violation in connection with the accident; e) auto operated by the applicant or any resident operator is struck by a hit-and-run vehicle, if the accident is reported to the proper authority within 24 hours by the applicant or resident operator; f) accidents involving damage by contact with animals or fowl; g) accidents involving Physical Damage, limited to and caused by flying gravel, missiles, or falling objects; or h) accidents occurring when using auto in response to an emergency if the operator of the auto at the time of accident was a paid or volunteer member of any Police or Fire Department, First Aid Squad, or any law enforcement agency. This exception does not include an accident occurring after the auto ceases to be used in response to such emergency. Iowa (Ed. 003) New Business North Star Mutual Ins. Co. PA - 10 Renewals

13 RULE 6 - SAFE DRIVER INSURANCE PLAN (SDIP) (Continued) c. One point is assigned if, during the experience period there was one-half point assigned under convictions and one-half point assigned under accidents. d. Refund of Surcharged Premium If a point has been assigned for an accident and it is later determined that the accident falls under one of the exceptions in this rule, North Star shall refund to the insured the increased portion of the premium generated by the accident. 2. EXPERIENCE PERIOD The experience period shall be the three years immediately preceding the date of application or the preparation of the renewal. Acceptability will be based on all prior years with greater emphasis being placed on the most recent three years. A one month grace period may apply, which takes into consideration accidents or convictions within 30 days of dropping off. B. DRIVING RECORD SUB-CLASSIFICATION The driving record sub-classification shall be determined from the number of Driving Record Points accumulated during the 3 year experience period as follows: C. MULTI-CAR RISK 1. SINGLE CAR Number of Driving Record Points Driving Record Sub-Classification or more 4 Points attributable to each driver shall be compiled separately and the total of all drivers shall determine the surcharge for that vehicle. 2. TWO CAR RISK The Driving Record Sub-Classification, as determined above, shall apply to each auto as shown under the Multi-Car Section in the Secondary Table. 3. THREE OR MORE CAR RISK Any points developed under SDIP are assigned to the two cars with the highest Total Base Premiums. The remaining autos are rated at Sub-Class O. TOTAL BASE PREMIUM is the sum of the base premium for Bodily Injury and Property Damage Liability; Medical Payments; Other Than Collision (OTC); and Collision Coverages that apply to the auto. D. COMBINATION ACCIDENTS AND CONVICTIONS If a conviction and a chargeable accident result from the same occurrence, only the conviction or the accident developing the highest number of points shall be counted and the resulting rating points shall be used in determining the surcharge. Iowa (Ed. 002) New Business North Star Mutual Ins. Co. PA - 11 Renewals

14 RULE 6 - SAFE DRIVER INSURANCE PLAN (SDIP) (Continued) E. ADMINISTRATION OF SDIP 1. NEW BUSINESS a. Initial information necessary to assign the proper Driving Record Sub-Classification shall be obtained from an application signed personally by the applicant. b. The signature of the applicant on all applications received from an agent shall be certified by such agent. 2. RENEWAL BUSINESS Information necessary to assign proper renewal Driving Record Sub-Classification shall be determined from any one or combination of the following: a. Company s own records; b. Motor Vehicle records; or c. An application signed by the applicant and producer. RULE 7 - PREMIUM DETERMINATION Bodily Injury and Property Damage Liability; Medical Payments, Other Than Collision (OTC) and Collision premiums are determined as follows: A. Refer to the AUTO DISCOUNT SELECTION GUIDE to determine the eligibility requirements for the Select rate. If additional criteria are met, the Preferred or Five Star discounts may be applicable. B. Refer to the Rating Factors and Statistical Codes Rule to determine the applicable Classification, Rating Factor and Statistical Code. C. Refer to the ISO Symbol and Identification Manual for the appropriate symbol of the auto. When model year is used in rating and the rates for a model year are not displayed in the rate pages, use the rates shown for the latest model year. Refer to chart shown in RULE 10 for determination of symbols on pickups, vans, farm trucks and unlisted vehicles. D. Refer to Territory Definitions to determine the territorial schedule code number for the location where the auto is principally garaged. Note: When a risk is statutorily required to have, or is eligible for, a coverage that is not available in the territory of principal garaging, use the registration address to determine the territory for that coverage. E. Refer to Rule 9.A. to determine base rates for the desired coverage. F. For Stated Amount Coverage multiply the rate by the limit of liability to determine the Base Premium. G. The premium for each coverage is determined by multiplying the base rate by the appropriate rating factors. (See RULE 8 - PREMIUM CALCULATION STEPS) H. Apply the Undesirable Vehicle Surcharge if applicable. Refer to RULE 41. I. When a surcharge is applicable under the Certified Risk - Financial Responsibility Laws Rule, the surcharge is to be applied as outlined in RULE 6 - SAFE DRIVER INSURANCE PLAN (SDIP). Iowa (Ed. 002) New Business North Star Mutual Ins. Co. PA - 12 Renewals

15 RULE 8 - PREMIUM CALCULATION STEPS After each calculation, round to the nearest whole dollar. If a particular rating item is not applicable for a particular coverage or vehicle, go to the next step. BI/PD Liability Medical Payments Coverages Uninsured / Underinsured Other Than Motorists Collision Ext. Trans. Exp., Excess Electrical Equip. Calculation Steps Collision Base Rate x Rating Tier Factor x x N/A x X N/A x Territory Factor x x x x x N/A x Model Year/Symbol Relativity N/A N/A N/A x X N/A x Limit Factor x x x N/A N/A N/A x Deductible Factor N/A N/A N/A x X N/A x Accident Prevention Course Discount x x N/A N/A x N/A x Driver Class Factor (Primary +/- Secondary) x x N/A x x N/A x Anti-Theft Discount N/A N/A N/A x N/A N/A x Passive Restraints N/A x N/A N/A N/A N/A x Insurance Score Factor x x x x x x x Companion Policy Discount x x x x x x = Premium = = = = = = Iowa (Ed. 004) New Business North Star Mutual Ins. Co. PA - 13 Renewals

16 C. RULE 9 - COVERAGES - LIMITS AND DEDUCTIBLES A. BASE RATES Bodily Injury (25/50) Property Damage (25,000) Other Than Collision* ($100 Ded) Medical Payments (2,000) Uninsured Motorist (25/50) Underinsured Motorist (25/50) Collision** Coverage ($250 Ded) Base Rate *For vehicles 2006 & Prior, multiply the base OTC rate by a factor of **For vehicles 2006 & Prior, multiply the base Collision rate by a factor of Use ISO s 2017 Base Model Year and Symbol Relativities to calculate physical damage premiums. B. SPLIT LIABILITY LIMITS B.I. Limits (000) Factor P.D. Limits Factor 25/ , / , / , / **250, / **500/ ** Do Not Bind Coverage. Refer to the Home Office for eligibility. To write maximum limits, the risk should be without any accidents or violations in the past three years. Asset protection is the primary factor in high limit consideration. MEDICAL PAYMENTS Listed below are the available limits. Multiply the base rate by the limit factor shown: Limit Factor 2, , , , Iowa (Ed. 014) New Business North Star Mutual Ins. Co. PA - 14 Renewals

17 RULE 9 - COVERAGES - LIMITS AND DEDUCTIBLES (Continued) D. UNINSURED MOTORISTS AND UNDERINSURED MOTORISTS COVERAGE PP 04 60, PP OWNERS Uninsured and Underinsured Motorists Coverage must be provided at limits equal to the state financial responsibility limits unless rejected by the named insured(s) in writing. Use Iowa Uninsured Motorists Coverage (non-stacked) PP and Iowa Underinsured Motorists Coverage (non-stacked) PP If the named insured(s) elects Uninsured and Underinsured Motorists Coverages, the coverages must be the same limits and must apply to all autos registered or principally garaged in Iowa under the policy. The Iowa Insurance Division requires that we advise the applicant that UM/UIM coverage does not cover vehicle damage. Use Iowa Auto Supplement ACORD 62 IA. a. Exceptions (1) The named insured has the right to reject either Uninsured Motorists Coverage, Underinsured Motorists Coverage, or both by signed written rejection. If there is more than one named insured shown in the Declarations, each named insured must reject the coverage in writing. Use Iowa Auto Supplement ACORD 61 IA. (2) Subsequent renewal policies issued by the same insurer need not provide the rejected coverage. b. Basic Limits are 25/50. Refer to Rule 9.A. for base rates. c. Increased Limits The insured must be offered limits equal to but not greater than the Bodily Injury Liability limits carried. The insured may choose lower limits, but not less than the base limit shown above. For increased limits, multiply the base rate by the following factors: Limit (000) Uninsured Motorist Factor Underinsured Motorist Factor 25/ / / / / / d. This coverage is non-stacking from one vehicle to another. e. Rates for multi-car risks are on a per car basis. Apply these rates to each car including the first car. f. The premiums shall not be subject to modification under the provisions of any rating plan or other manual rule (except the Companion Policy Discount and Insurance Score). 2. NON-OWNERS If a named non-owned policy is extended to provide Uninsured and Underinsured Motorists Coverage, the rate for such extension of coverage shall be the same as owned autos. E. PHYSICAL DAMAGE COVERAGE FOR VEHICLES TEN MODEL YEARS OLD AND OLDER Physical damage coverage on vehicles 10 through 19 model years of age may be written with the following minimum deductibles: Other Than Collision (OTC)... $100 Collision... $250 Do not bind physical damage coverage on vehicles 20 model years old or older. Additional consideration may be secured from the Home Office on farm trucks and vehicles eligible for stated amount coverage. Two color photographs from opposite diagonal corners are required for vehicles that are 19 model years old or older. (Vehicle age changes on October 1st of each year). Iowa (Ed. 007) New Business North Star Mutual Ins. Co. PA - 15 Renewals

18 RULE 9 - COVERAGES - LIMITS AND DEDUCTIBLES (Continued) F. DEDUCTIBLE INSURANCE 1. DEDUCTIBLE LIABILITY INSURANCE Deductible Liability Insurance is not available for vehicles classified and rated according to the rules of this manual. 2. OTHER THAN COLLISION (OTC) DEDUCTIBLE FACTORS $ACV Deductible - Multiply the base OTC rate by $ 50 Deductible - Multiply the base OTC rate by $ 100 Deductible - Multiply the base OTC rate by $ 200 Deductible - Multiply the base OTC rate by $ 250 Deductible - Multiply the base OTC rate by $ 500 Deductible - Multiply the base OTC rate by $ 1,000 Deductible - Multiply the base OTC rate by $ 1,500 Deductible - Multiply the base OTC rate by $ 2,000 Deductible - Multiply the base OTC rate by $ 2,500 Deductible - Multiply the base OTC rate by COLLISION DEDUCTIBLE FACTORS $ 100 Deductible - Multiply the base Collision rate by $ 200 Deductible - Multiply the base Collision rate by $ 250 Deductible - Multiply the base Collision rate by $ 500 Deductible - Multiply the base Collision rate by $ 1,000 Deductible - Multiply the base Collision rate by $ 1,500 Deductible - Multiply the base Collision rate by $ 2,000 Deductible - Multiply the base Collision rate by $ 2,500 Deductible - Multiply the base Collision rate by COMMON LOSS DEDUCTIBLE CF-2163 a. In the event that a covered loss occurs to more than one covered auto resulting from the same collision or other than collision, only the highest applicable deductible will apply. b. In the event that a covered loss occurs as a result of one occurrence to property covered under more than one policy insured with North Star Mutual, only the highest applicable deductible will apply, regardless of the number of covered property items damaged or destroyed. The applicable North Star Mutual policies to which this provision applies are: (1) Homeowners; (2) Farmowners; (3) Personal Automobile; (4) Commercial Automobile (applies only to vehicles indicated on the Commercial Automobile declarations as Farm Use ); (5) Mobile-Homeowners; and (6) Inland Marine. This provision will not apply: (1) to property rented to others for a fee when that property is insured on a separate policy than the insured s owner-occupied property; (2) if the total loss is less than the highest deductible; or (3) if it is in the insured s benefit that separate deductibles be applied. Iowa (Ed. 004) New Business North Star Mutual Ins. Co. PA - 16 Renewals

19 RULE 10 - SYMBOL DETERMINATION FOR PICKUPS, VANS, FARM TRUCKS AND UNLISTED VEHICLES If the symbol for that particular vehicle is not shown in the symbol section, the physical damage premiums are based on LIST PRICE NEW and are assigned a symbol as follows: (For use with 2011 and subsequent Model Year vehicles) Symbol List Price New Symbol List Price New 01 $1 - $3, $35,001 - $36, $3,001 - $5, $36,001 - $37, $5,501 - $8, $37,001 - $38, $8,001 - $9, $38,001 - $39, $9,001 - $10, $39,001 - $40, $10,001 - $11, $40,001 - $41, $11,001 - $12, $41,251 - $42, $12,001 - $13, $42,501 - $43, $13,001 - $14, $43,751 - $45, $14,001 - $15, $45,001 - $46, $15,001 - $15, $46,251 - $47, $15,626 - $16, $47,501 - $48, $16,251 - $16, $48,751 - $50, $16,876 - $17, $50,001 - $52, $17,501 - $18, $52,501 - $55, $18,126 - $18, $55,001 - $57, $18,751 - $19, $57,501 - $60, $19,376 - $20, $60,001 - $65, $20,001 - $20, $65,001 - $70, $20,626 - $21, $70,001 - $75, $21,251 - $21, $75,001 - $80, $21,876 - $22, $80,001 - $85, $22,501 - $23, $85,001 - $90, $23,126 - $23, $90,001 - $95, $23,751 - $24, $95,001 - $100, $24,376 - $25, $100,001 - $110, $25,001 - $25, $110,001 - $120, $25,626 - $26, $120,001 - $130, $26,251 - $26, $130,001 - $140, $26,876 - $27, $140,001 - $150, $27,501 - $28, $28,126 - $28, Rating Symbol Only* 34 $28,751 - $29, Rating Symbol Only* 35 $29,376 - $30, Rating Symbol Only* 36 $30,001 - $31, Rating Symbol Only* 37 $31,001 - $32, Rating Symbol Only* 38 $32,001 - $33, $33,001 - $34, $150,001 and above** 40 $34,001 - $35,000 *Not for use in assigning price new symbols. These are Rating Symbols only. They have no corresponding price ranges and will therefore not be used as Price New Symbols. Vehicles can only be assigned these Rating Symbols via experience-based modification. **Vehicles assigned Symbol 98 will not be subject to symbol modification. Vehicles assigned Symbol 98 will be priced via Rule 11. Iowa (Ed. 003) New Business North Star Mutual Ins. Co. PA - 17 Renewals