FACILITY ASSOCIATION TABLE OF CONTENTS. Section G - Garage RULE 601: DEFINITIONS...2 EXCLUDED VEHICLES, USES AND COVERAGES...3

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1 FACILITY ASSOCIATION Section G - Garage RULE 601: DEFINITIONS...2 RULE 602: A. STAFF...2 B. ADVANCE PREMIUM...2 C. OWNED AUTOMOBILES...2 D. CUSTOMER AUTOMOBILES...2 E. AUTOMOBILE / VEHICLE...2 F. COURTESY CARS...2 G. PAYROLL...2 ADVANCE PREMIUM, RENEWAL PREMIUM AND AUDITS...2 RULE 603: GARAGE RISKS...2 A. AUTOMOBILE DEALER...2 B. REPAIR GARAGE...2 C. SERVICE STATION...2 D. STORAGE GARAGE...2 E. PARKING LOT...3 F. VALET PARKING...3 G. DRIVEAWAY SERVICES / DELIVERY SERVICES...3 H. TOWING OPERATIONS...3 TABLE OF CONTENTS RULE 604: EXCLUDED VEHICLES, USES AND COVERAGES...3 RULE 605: APPLICATIONS FOR INSURANCE...3 RULE 606: ENDORSEMENT FORMS...4 RULE 607: SPECIAL RATING PROVISIONS...4 A. AUTOMOBILE DEALERS...4 B. RISKS OTHER THAN DEALER...4 C. SERVICE STATIONS / STORAGE GARAGE / PARKING LOTS...4 D. VALET PARKING...4 E. ACCIDENTS...4 F. CONVICTIONS...4 G. CONVICTIONS AND ACCIDENTS...4 RULE 608: PREMIUM DETERMINATION...5 RULE 609: RULE 610: RULE 611: MINIMUM ADVANCE PREMIUM...5 TOW TRUCKS...5 A. TOW TRUCK OPERATIONS...5 B. TOW TRUCK INCIDENTAL TO GARAGE OPERATIONS...5 DRIVEAWAYS...6 RULE 612: COURTESY CARS...6 Northwest Territories, Nunavut, Yukon January 1991 G1

2 Section G - Garage FACILITY ASSOCIATION Rule 601: Definitions The following definitions are provided for your convenience. For complete definitions, see the standard policy provisions. A. Staff The number of persons employed by the operation, including all proprietors, active partners, executive officers and employees. A full-time employee as well as any employee provided with an automobile will be counted as one staff unit. Part-time employees and clerical staff will be counted as 1/2 a staff unit each, if not provided with an automobile. B. Advance Premium A premium that is based on an estimated exposure (number of persons employed) and is subject to retroactive adjustment at the end of the period of insurance in accordance with the actual exposure during that period. For an explanation of the procedure to be used, see Rule 602. C. Owned Automobiles Automobiles owned by, and registered in the name of, the Insured (the garage) and used in the business stated in the Application and/or for pleasure and/or held for sale or demonstration and/or sold but not delivered. Note: Automobiles leased to a garage MUST be insured using POL 1 written in the name of the Lessor with an END 5 attached. D. Customer Automobiles Automobiles owned by customers and in the Insured s care, custody or control. The Customer Automobiles coverages apply to the Insured s legal liability for loss of or damage to such automobiles. E. Automobile / Vehicle Automobile/Vehicle as defined in the relevant provincial legislation. F. Courtesy Cars Automobiles supplied to customers for their use while their own vehicles are being repaired or while they are awaiting delivery of a newly purchased or leased vehicle regardless of whether or not the customer is charged a fee. WARNING: Supplying automobiles to customers for a charge in other than the circumstances outlined above is considered renting or leasing of vehicles and is expressly excluded under the POL 4. G. Payroll Calculation of payroll for rating purposes is based on a number of staff units (see A. Staff). Each staff unit is calculated as $5,000 payroll per year. Additions to or subtractions from staff will be calculated pro-rata. Rule 602: Advance Premium, Renewal Premium and Audits In accordance with the policy form s General Provisions : 1. In accordance with the Policy Forms General Provisions, a Premium computation statement (Form P.C.S. No.1) is issued at the commencement of the policy period detailing the Advance Premium and Basis of Rating for each coverage. 2. Prior to the expiry of a Garage Policy, the Servicing Carrier will ask the Agent to have certain forms completed so as to update the information on record. Such a request will be made well in advance of the expiry date because of the need to issue the renewal policy before the insurance expires. The Renewal will not be issued unless and until the required forms, properly completed, have been returned. 3. The Insurer, through any authorized representative and at all reasonable times, shall have access to the Insured s books and records for the purpose of determining any fact relating to the insurance. Rule 603: Garage Risks The Garage Automobile Policy (POL 4) may be issued only in respect of the Garage Risks defined below. A. Automobile Dealer Engaged in the business of selling automobiles. Any garage risk which is not principally engaged in the business of selling automobiles but sells automobiles as part of its operation will be classified as an automobile dealer. B. Repair Garage Principally engaged in the business of repairing and servicing automobiles and may include the operation of a service station. Any service station which performs major repairs (e.g. engine, transmissions and/or body repairs) must be classified as a repair garage. C. Service Station Engaged in the business of operating an automobile service station, providing any of the following services: refuelling automobiles (gasoline, diesel, propane) including self-service stations. selling parts and accessories. lubrication, filling, washing including automatic car wash. minor repairs (excluding e.g., engine, transmission and body repairs). D. Storage Garage Engaged in the business of operating a storage/parking garage; may include the parking, washing and cleaning of customers automobiles and the pick-up and/or delivery of the automobiles. G2 Northwest Territories, Nunavut, Yukon January 1991

3 FACILITY ASSOCIATION Section G - Garage Rule 603: Garage Risks (continued) E. Parking Lot Engaged in the business of operating an open-air parking lot; may include the parking, washing and cleaning of customers automobiles but not the pick-up and/or delivery of the automobiles. F. Valet Parking Engaged in the parking and storage of the automobiles of customers at (for example), hotels, restaurants and social events. G. Driveaway Services/Delivery Services Engaged in the pick-up and delivery of automobiles belonging to customers. With Driveaway Service, the Insured delivers vehicles carrying the owners plates. H. Towing Operations Engaged in the towing and road servicing of vehicles. This does not include tow trucks whose use is incidental to an existing garage operation. Rule 604: Excluded Vehicles, Uses and Coverages A. The Garage Policy s General Provisions 11 and 12 specify the vehicles and uses to which the policy does not apply. Listed hereunder are the most common examples; they must be insured by means of an POL 1 at the applicable Private Passenger, Commercial or other rates. a. Renting or leasing to others. b. Carriage of passengers or goods for compensation. c. Vehicles designed for transportation of other vehicles, but a tow truck shall not be deemed designed for such purposes. d. Vehicles designed and/or used for bulk transportation of petroleum products. e. Vehicles owned in connection with, or used for the purpose of any business not described in item 3 of the Application. f. Vehicles provided for the regular use of persons other than active partners and full-time employees. Note: This exclusion may be modified by the use of END 76 (Additional Insured). See section S of this Manual. b. The following endorsements are not available in respect of Facility Association business: END 74: Open Lot Pilferage Owned Automobiles; END 75: Open Lot Pilferage Customers Automobiles; END 77: Customers Automobiles Comprehensive...including Open Lot Pilferage. Rule 605: Applications for Insurance A fully completed Garage Policy Application Form (APP 4) is always required. The following points should particularly be noted: 1. The Applications must specify every location used for the business. 2. The Application must specify the type(s) of business (garage risks) operated by the Applicant. The policy will not apply to any undeclared businesses. 3. The Application must specify the number of full-time, part-time and clerical staff engaged in the business. 4. If Customers Automobiles Collision Coverage is purchased, the Application must specify. a. The required limit in respect of any one automobile, reflecting the value of the most expensive vehicle for which the Applicant will be responsible. b. The required deductible per any one occurrence. 5. If Customers Automobiles Specified Perils Coverage is purchased, the Application must specify, for each location: a. The maximum number of Customers Automobiles which may be on the premises at any one time. Note: There is a 100% co-insurance clause in the policy which causes the Insured to bear a proportionate amount of a loss if the specified number of automobiles is less than the actual number. b. The required Limit of Liability in respect of any one occurrence, reflecting the average value per automobile multiplied by the maximum number of automobiles. c. If the location is a building, the Agent must also ascertain and submit full details of the building s construction and fire protection and the various business activities conducted therein. B. In addition to the vehicles and uses excluded by the POL 4, the following coverages are not available on Facility Association policies: a. Coverage for owned vehicles except when rated as automobile dealers. In all other instances, END 71 (excluding owned automobiles) must be attached to the policy and owned automobiles must be insured by means of an POL 1) Northwest Territories, Nunavut, Yukon January 1991 G3

4 Section G - Garage FACILITY ASSOCIATION Rule 605: Applications For Insurance (continued) 6. For Risks rated as Automobile Dealers Only In respect of Owned Automobiles Comprehensive/Specified Perils Coverages, the Application must specify: a. That the premium is computed on a co-insurance basis. This causes the insured to bear a proportionate amount of a loss if the selected Limit of Liability is not at least 80% of the actual cash value of his automobiles. No other computation basis is acceptable on Facility Association business. b. If the location is a building, the Agent must also ascertain and submit full details of the building s construction and fire protection and the various business activities conducted therein. c. The type of coverage ( sub-section ) required for each location and the required Limit of Liability and deductible in respect of all vehicles involved in any one occurrence. Notes: 1. The deductible does not apply to Fire or to Theft of the entire automobile unless END 79 (Fire and Theft Deductible) is issued. 2. Where a location includes both a building and a lot, values must be specified for each. d. The number of dealer plates and the plate numbers. Rule 606: Endorsement Forms The following endorsements are available on Facility Association Garage Risks: a. END 70: Named Chauffeur Basis: See page S8. b. END 71: Excluding Owned Automobiles: This endorsement is required on all Garage risks other than those rated as Automobiles Dealers. c. END 72: Multiple Alteration: Use as required. d. END 73: Excluding Financed Automobiles: Use as required by risks rated as automobile dealers. e. END 76: Additional Insured: See page S8. f. END 78: Reduction of Coverage as respects Operation By Named Persons: Use as required. g. END 79: Fire and Theft Deductible: See page S8. k. END 80: Physical Damage to Specified Owned Vehicles: Available only on risks rated as Auto Dealers. Use as required. Rule 607: Special Rating Provisions a. Automobile Dealers Only automobile dealers and risks rated as automobile dealers do not require the use of END 71. Rating is based on payroll, defined by number of staff units and any dealer plates. See Rule 608. b. Risks Other Than Those Rated As Automobile Dealers In all other cases an END 71 must be attached to the policy; owned automobiles must be insured by means of an POL 1. The garage rating is based on payroll defined by number of staff units. c. Service Stations/Storage Garage/Parking Lots If a service station is operated in conjunction with a storage garage or parking lot, use the Third Party Liability Premium from the Service Station rates, and the Customers Automobiles Collision Premium from the Storage Garage/Parking Lot rates. If a Storage Garage is operated in conjunction with a Parking Lot, use the higher of the applicable rates in each section. d. Valet Parking Full particulars of the risk must be submitted to the Servicing Carrier. The base premium is that applicable to a Storage Garage. e. Accidents A surcharge of 10% for each at-fault accident up to 5 accidents and 20% for each at-fault accident after the fifth will be applied to Liability, Owned Automobiles Collision and Legal Liability for customers automobiles. Accidents will be considered if they occurred within the 36 months preceding the effective date. f. Convictions Additional charges shall be assessed in respect of traffic offence convictions (as described in Rule 25) that were imposed on owners and drivers during the 36 months immediately preceding the commencement of the period of insurance. The conviction records of all persons who are owners or drivers shall be considered to establish which develops the highest additional charge percentage in accordance with Rule 25. g. Convictions and Accidents Convictions and accidents shall be used only once in the determination of the premium for vehicles/garages insured with the same Servicing Carrier. G4 Northwest Territories, Nunavut, Yukon November 1993

5 FACILITY ASSOCIATION Section G - Garage Rule 608: Premium Determination 1. Ensure the risk qualifies as a garage risk (Rule 603). 2. Establish the type of garage risk (Rule 603). 3. Establish the Payroll (Rule 601:A, 601:G). 4. Establish the number of dealer plates. 5. Refer to Rule 607 for any applicable special rating provisions. 6. Third Party Liability, Accident Benefits a. All Risks Other Than Those Rated as Automobile Dealers For each coverage, refer to the Schedule of Rates and apply the indicated rate to each $1,000 of payroll. To the calculated premium apply the appropriate factor for the required limit. Round the result (the Advance Premium) to the nearest whole dollar. b. Risks Rated as Automobile Dealers (includes Owned Automobiles Collision) i. For each coverage, refer to the Schedule of Rates and apply the indicated rate to each $1,000 of payroll. ii. For each dealer plate in excess of the number of full staff units, apply a 07/0 premium for Third Party Liability and Accident Benefits (use $200,000 Limits). iii. Add the results of i) and ii) together and apply the appropriate factor for the required limit. Round the result (the Advance Premium) to the nearest whole dollar. 7. Owned Automobile Collision (available only on risks rated as Automobile Dealers) i. Refer to Schedule of Rates and apply the indicated rate to each $1,000 of payroll. ii. For each dealer plate in excess of the number of full staff units, apply a 07/0 premium for Collision ($250 deductible, R.G.8). iii. Add the results of i) and ii) and apply the appropriate factor for the required deductible. Round the result (the Advance Premium) to the nearest dollar. 8. Uninsured Motorist Coverage This coverage is provided without additional charge when a premium is charged for Third Party Liability insurance. 9. Owned Automobiles Comprehensive/Specified Perils See the rating instructions on rate page Customers Automobiles Collision Refer to the Schedule of Rates and apply the indicated rate to each $1,000 of payroll. To the calculated premium apply the appropriate factors for the required limit and deductibles. Round the result (the Advance Premium) to the nearest whole dollar. 11. Customers Automobiles Specified Perils See the rating instructions on rate page 1. Northwest Territories, Nunavut, Yukon November 1993 Rule 609: Minimum Advance Premium The minimum advance premium and the minimum annual retained premium is that applicable to a payroll of $5,000. Rule 610: Tow Trucks A. Tow Truck Operations Tow Truck operations must always be written on a POL 1, in conjunction with an POL 4. The POL 4 is essential to provide proper coverage for liability to customers automobiles. The POL 4 application/policy face must specify that the policy applies only to the towing operation. Note: No END 27 will be issued on a tow truck. The coverages normally provided by an END 27 are more appropriately provided under POL 4. END 71 (excluding owned automobiles) must be attached. Rating 1. POL 1 Use class % surcharge in respect of all coverages. 2. POL 4 Use the rates applicable to a storage garage. B. Tow Trucks Incidental to Garage Operations 1. Risks Rated As Auto Dealers For risks rated as auto dealers, coverage for tow trucks will be included on the POL 4. However, a charge will be made for each tow truck for each coverage based on Class %. This charge will be in addition to the developed premium for the auto dealer. 2. Risks Other Than Those Rated As Auto Dealers For any other garage risks, any owned tow trucks must be covered on a POL 1. POL 1 rating: If the tow truck s use is incidental to the operation of a Service Station, use Class 43 for each tow trucks. If the tow truck s use is incidental to any other nondealer garage operation, use Class %. G5

6 Section G - Garage FACILITY ASSOCIATION Rule 611: Drive-Aways Drive-Aways (see definition under Rule 603) are to be insured using an POL 4 with an END 71 (excluding owned automobiles) attached. Any owned automobiles are to be insured on a separate POL 1. The Application must show the types of vehicles which will be delivered, the number of full and part-time employees, the number of full and part-time drivers, the number of locations and the number of dealer plates. Delivery Services (see definition under Rule 603) are to be insured using an POL 6. Any owned automobiles must be insured on a separate POL 1. The application must show the types of vehicles which will be delivered, the number of full and part-time employees, the number of full and part-time drivers and the number of locations. Rating Submit full details to the Servicing Carrier. Rule 612: Courtesy Cars See Rule 601 for definition of Courtesy Cars. A. Automobile Dealers If Courtesy Cars are owned by an Automobile Dealer or a risk rated as an Automobile Dealer, full details must be supplied on a Schedule of Vehicles. A premium based on a 07/0 rating plus a 50% surcharge will be charged for each Courtesy Car. This charge will be in addition to the developed premium for the auto dealer. B. Risks Other Than Automobiles Dealers For risks other than Automobile Dealers, Courtesy Cars must be insured by means of an POL 1. The charge for Courtesy Cars is an 07/0 premium + a 50% surcharge. G6 Northwest Territories, Nunavut, Yukon January 1991