GMRC MANUAL PAGE CHECKLIST

Transcription

1 FARM PERSONAL LIABILITY (GL-2) PAGE CHECKLIST MISSOURI GMRC MANUAL PAGE CHECKLIST This Manual Page Checklist displays the latest pages included in this section of your GMRC manual. NOTE: Always use the Edition Date to determine the latest page. If the pages in this section of your GMRC manual do not coincide with this listing, contact the Forms Distribution Department of GMRC for the necessary material to update your manual. New or revised pages are indicated with shading. PAGE NUMBER EDITION DATE PAGE NUMBER EDITION DATE (Forms Index) () -FI-1 thru -FI-2 07/14 -GR-1 07/14 -GR-2 01/14 (State Exceptions) -GR-3 thru -GR-12 07/14 -E-1 07/14 -GR-13 01/14 -GR-14 thru -GR-15 07/14 (Index) -GR-16 thru -GR-17 01/14 -i-1 thru -i-3 07/14 -GR-18 thru -GR-23 07/14 -GR-24 01/14 (State Rates) -R-1 01/14 -R-2 07/14 -R-3 01/14 -R-4 07/14 07/14 -PC-1 Page Checklist

2 FORMS INDEX Revised PART III MANDATORY / CONDITIONAL MANDATORY FORMS AND ENDORSEMENTS POLICY PROVISIONS GL Policy Provisions AMENDATORY ENDORSEMENTS CL FL FL OTHER MANDATORY FORMS GL GL GL GMA GMRC GMRC GMRC GMIL GMIL GMIL GL GL GL RC Amendatory Endorsement Amendatory Endorsement Amendatory Endorsement Custom Farming Employers Liability Farm Employees Office, Professional, Private School or Studio Occupancy Personal Injury Endorsement Fungi and Bacteria Endorsement Farm Implements All Material Transport Vehicle Annual Aggregate Endorsement Farm Liability Amendatory Oil or Gas Well Liability Exclusion Identity Theft Expense Coverage Exclusion for Punitive Damages, Lead and Asbestos Suit Against Us (Assessable companies) Suit Against Us (Non-assessable companies) Policy Jacket CONDITIONAL / MANDATORY ENDORSEMENTS / NOTICES Used by Reinsured Liability Companies for property and/or liability policies. Identifies mutual only. This jacket may not be used if any coverage is provided by GMRC. NOTE: The following Endorsements / Notices are Conditional Mandatory, see specific Rule for additional guidelines. RC 354 MO RC GL GMRC 1960 MO GMRC GMRC 2270RL RC Assessable Policy Terms Fair Credit Reporting Notice Limited Farm Pollution Limitation of Coverage Provided by Missouri Property and Casualty Insurance Guaranty Association Certified Acts of Terrorism Liability (Mandatory for AFD mutuals) Liability Exclusion for Certified Acts of Terrorism (RL mutuals only) Notice Offer of Coverage for Certified Acts of Terrorism, Disclosure of Premium, and Rejection Form (RL mutuals only) denotes change 07/14 -FI-1 Submit Application Forms Index

3 FORMS INDEX Revised GL GL GL GL GL GL GL GMRC GMRC GMRC GMRC GMRC GMA GMA GMA GMRC GMA GMRC PART IV OPTIONAL LIABILITY FORMS Additional Insured (Premises Liability) Additional Insureds (Broad Form) Additional Insureds and Additional Premises Additional Residences or Farms Rented to Others Business Activities Custom Farming Care Provider for Others Coverage Manuscript Endorsement Business Activities Endorsement Restrictive Livestock Endorsement Specific Activity or Location Exclusion Livestock Exclusion Non-Occupied Landlords Liability Hunting & Fishing Dog Restriction Owner Occupied Landlord s Liability Farm Premises and Operations Limited Liability Endorsement Additional Insured Power Company GMA Contract Grower Limited Liability Coverage Submit Contract Growers Limited Liability Coverage Application GMRC 2295A GMA Agricultural Custom Spraying (Limited Liability Coverage) Submit Agricultural Custom Spraying (Limited Liability Coverage) Application GMRC 2297A or GMRC 2297A RL GMA GMA GMIL GMIL GMIL GMIL GMIL GMIL GMIL GMIL GMIL GMIL GMIL GMIL GMIL GMIL GMIL GMIL GMIL GMIL GMRC GMRC 4809s GMRC GMRC GMRC GMRC GMRC Select Recreational Vehicle Limited Liability Coverage Additional Insured Limited (Wind Turbine/Cell Phone Tower) Waiver of Subrogation and Right of Contribution Additional Insured Primary and Non-Contributory Horse/Rodeo Business Exclusion Additional Insured (Limited) Special Event Additional Insured Other Residents of Your Household Race Track Exclusion Roadside Park/Campground Exclusion Shooting Range Exclusion Bulldozing/Excavation Exclusion Food Preparation/Processing Exclusion Sawmill Exclusion Rock Quarry/Gravel Pit Exclusion Manure Handling Exclusion Dog Breeding Exclusion Auctioneer Exclusion Beauty or Barber Shop Exclusion Liability Loss Assessment Coverage Increased Limits Horse Boarding Coverage Home Business Liability Coverage Part Home Business Liability Schedule Home Business Personal Injury And Advertising Injury Liability Endorsement Home Business Cosmetologists' Liability Endorsement Home Business Additional Insured Landlords Home Business Additional Insured Controlling Interests Home Business Additional Insured Lessor Of Leased Equipment denotes change 07/14 -FI-2 Submit Application Forms Index

4 STATE EXCEPTIONS ADDITIONAL RULES RULE A1. GL-565 FARM POLLUTION ENDORSEMENT Limited Farm Pollution (Includes $1,000 Med Pay) Limits of Liability 50, , , ,000 1,000, When this optional endorsement is attached to ' Farm Personal Liability Policy (GL-2), the policy is amended to provide limited coverage for farm pollution, as follows: A. Spray Drift of Agricultural Chemicals is covered if caused by sudden and accidental spray drift when applied by or for any insured on any insured premises, except when applied by aircraft. B. Discharge, Dispersal, Spill, Release, or Escape of Agricultural Chemicals. Coverage is provided for BI or PD from the release, etc. of agri-chemicals resulting from or intended for use in normal and usual farming or agri-operations, including the cost of clean up, but only under the following conditions: NOTES: 1. Release, etc., must occur quickly and abruptly and be accidental; 2. Must not enter the atmosphere from aircraft, including loading or unloading of aircraft; 3. Release, etc., must not result from custom farming activities of any insured; 4. Must be reported to us in writing within 90 days of the occurrence; and 5. The operations which caused such release, etc., must not be in violation of any law. GL 565 must appear on the Declaration Page. 07/14 -E-1 denotes change State Exceptions

5 INDEX RULE NO. PAGE NO. PART I COVERAGE & DEFINITION TYPE 100. Introduction... -GR-1 A. General Information... -GR-1 B. Manual Structure... -GR Description of Mandatory Coverages... -GR-1 A. Principal Personal Liability Coverages... -GR-1 1. Liability Coverage L... -GR-1 e. Employers Liability (GL-76)... -GR-2 f. Fire Legal Liability... -GR-2 2. Medical Payments Coverage M... -GR-2 a. Medical Payments To Others (Coverage M)... -GR-2 b. Medical Payments To Farm Employees (GL-76)... -GR-2 B. Incidental Liability Coverages... -GR-2 1. Damage To Property of Others... -GR-2 2. Contracts and Agreements... -GR-2 3. Claims and Defense Costs... -GR-2 4. First Aid Expense... -GR-2 5. Motorized Vehicles... -GR-3 6. Watercraft... -GR-3 7. Business... -GR Minimum Liability Limits... -GR Underwriting (Eligible & Ineligible Risks)... -GR Insurable Interest... -GR-4 A. Named Insured... -GR-4 B. Additional Insured Limited Form (GL-70)... -GR-4 C. Additional Insured Broad Form (GL-71)... -GR-5 D. Additional Insured Broad Form, Resident of Household (GL-72)... -GR Reserved For Future Use... -GR-5 PART II DISCOUNTS, SURCHARGES, PREMIUM DETERMINATION, COUNTRY HOME OPTION 200. Discounts... -GR-5 A. Livestock Exclusion 20% Discount (GMRC 2229 )... -GR-5 B. Non-Occupied Landlords Liability 50% Discount (GMA 2233)... -GR-5 C. Owner-Occupied Landlords Liability 30% Discount (GMRC 2259 )... -GR-5 D. Farm Premises and Operations Limited Liability Endorsement 15% Discount (GMA 2271)... -GR Surcharge Program... -GR Premium Determination Rule... -GR Country Home Rating Option (Hobby Farm)... -GR Reserved For Future Use... -GR-7 07/14 -i-1 Index

6 INDEX RULE NO. PAGE NO. PART III MANDATORY/CONDITIONAL FORMS AND ENDORSEMENTS 300. GL-2 Policy Provisions... -GR FL 5107 and FL 5108 Amendatory Endorsements... -GR GL-75 Custom Farming... -GR GL-76 Employers Liability Farm Employees... -GR GL-80 Office, Professional, Private School or Studio Occupancy... -GR GMRC 1992 Fungi and Bacteria... -GR GMRC 2292 Farm Implements All Material Transport Vehicle... -GR GMRC 2273 Annual Aggregate Endorsement... -GR GMIL 4722 Identity Theft Expense Coverage... -GR GL-5890 Exclusion for Punitive Damages, Lead, and Asbestos... -GR GL-5891 Suit Against Us (Assessable Companies)... -GR GL-5892 Suit Against Us (Non-Assessable Companies)... -GR Reserved For Future Use... -GR RC 92 Policy Jacket... -GR GL Limited Farm Pollution Coverage... -GR GMRC 2269 Certified Acts of Terrorism Liability... -GR GMRC 2270 RL Liability Exclusion for Certified Acts of Terrorism... -GR RC 7010 Notice Offer of Coverage for Certified Acts of Terrorism, Disclosure of Premium, and Rejection Form... -GR RC 364 Fair Credit Reporting Notice... -GR Reserved For Future Use... -GR RC 354 MO Assessable Policy Terms Endorsement... -GR GMA 1945 Personal Injury Coverage... -GR GMA 3475 Farm Liability Amendatory... -GR GMIL 4618 Oil or Gas Well Liability Exclusion... -GR Reserved For Future Use... -GR-11 PART IV OPTIONAL LIABILITY ENDORSEMENTS 400. GL-70 Additional Insured (Premises Liability)... -GR GL-71 Additional Insureds (Broad Form)... -GR GL-72 Additional Insureds and Additional Residences... -GR GL-73 Additional Residences or Farm Rented to Others... -GR GL-74 Business Activities... -GR GL-75 Custom Farming... -GR GL-84 Care Provided for Others Coverage... -GR GMRC 911 Manuscript Policy Endorsement... -GR GMRC 1031 Business Activities Endorsement... -GR GMRC 1048 Restrictive Livestock Endorsement... -GR GMRC 1912 Specific Activity or Location Endorsement... -GR Reserved for Future Use... -GR GMRC 2229 Livestock Exclusion Endorsement... -GR-14 07/14 -i-2 Index

7 INDEX RULE NO. PAGE NO. PART IV OPTIONAL LIABILITY ENDORSEMENTS (Cont d) 413. GMA 2233 Non-Occupied Landlord s Liability Limitation... -GR GMA 2252 Hunting and Fishing Coverage... -GR GMA 2256 Dog Restriction... -GR GMRC 2259 Owner-Occupied Landlord s Liability Limitation... -GR GMA 2271 Farm Premises and Operations Limited Liability Endorsement... -GR GMRC 2293 Additional Insured Limited... -GR GMA 2295 Contract Grower Limited Liability Coverage... -GR GMA 2297 Agricultural Custom Spraying... -GR GMA 2332 Select Recreational Vehicle Endorsement... -GR GMIL 4744 Horse/Rodeo Business Exclusion... -GR GMIL 4749 Additional Insured (Limited) Special Event... -GR GMIL 4757 Race Track Exclusion... -GR GMIL 4758 Roadside Park/Campground Exclusion... -GR GMIL 4759 Shooting Range Exclusion... -GR GMIL 4760 Bulldozing/Excavation Exclusion... -GR GMIL 4761 Food Preparation/Processing Exclusion... -GR GMIL 4762 Sawmill Exclusion... -GR GMIL 4763 Rock Quarry/Gravel Pit Exclusion... -GR GMIL 4764 Manure Handling Exclusion... -GR GMIL 4766 Dog Breeding Exclusion... -GR GMIL 4767 Auctioneer Exclusion... -GR GMIL 4768 Beauty or Barber Shop Exclusion... -GR GMRC Home Business Endorsement... -GR GMIL 4752 Additional Insured Other Residents of Your Household... -GR GMIL 4772 Liability Loss Assessment Increased Limits... -GR GMIL 4777 Horse Boarding Coverage... -GR GMA 4300 Additional Insured Limited (Wind Turbine/Cell Phone Tower)... -GR GMIL 4629 Additional Insured Primary and Non-Contributory... -GR GMIL 4627 Waiver of Subrogation and Right of Contribution... -GR Reserved for Future Use... -GR-20 PART V / GMRC COMPARATIVE FORMS LIST Mandatory Forms GL-2... Conditional / Mandatory Forms... Optional Forms... -GR-21 -GR-22 -GR-22 07/14 -i-3 Index

8 PART I COVERAGE & DEFINITION TYPE RULES RULE 100. INTRODUCTION A. GENERAL INFORMATION The Farm Personal Liability () program provides coverage for liability arising out of an insured s personal acts and the insured premises, including farm premises and operations, as described below, using the forms and endorsements specified in this Manual. The basic premium provides coverage for up to 240 acres and includes the following: 1. 6 man-months of employee labor. Increased man months are available; refer to Liability Rate Schedule for rates. 2. $1,000 Medical Payments to Others and Farm Employees. 3. $500 for Damage To Property Of Others. 4. Liability coverage is provided for the first farm dwelling located on the insured farm premises (owner or non-owner occupied); this is included in the base rate. Coverage may be extended to additional dwellings; for a charge; refer to Liability Rate Schedule for rates. This Manual contains the rules and classifications governing the writing of a Farm Personal Liability policy under the following programs offered by Grinnell Mutual Reinsurance Company (GMRC): Reinsured Liability (RL) The policies are underwritten and issued by member mutuals that are permitted to write liability coverage. Coverages are subject to forms, rates, and rules filed on behalf of each Reinsured Liability mutual, and are 100% reinsured by GMRC. RULE 101. DESCRIPTION OF MANDATORY COVERAGES The following coverages are mandatory as these coverages are included in the base rate. The policy provisions should be consulted for exact contract terms and conditions. A. PRINCIPAL PERSONAL LIABILITY COVERAGES 1. LIABILITY COVERAGE L Provides coverage for all sums which the insured is legally obligated to pay as damages because of bodily injury or property damage arising out of an insured s premises, personal activities, or farming operation, including: a. Personal acts of insureds. b. The physical condition of the insured premises. c. The insured s farming operations, on and off the insured premises. Farming includes the ownership, maintenance, or use of the insured premises for the production of crops or the raising or care of livestock. It also includes the operation of roadside stands kept mainly for the sale of the insured s farm products. Farming does not include altering the characteristics of farm products through processing operations, or the butchering of livestock. d. Incidental business activities conducted on the insured premises, if gross receipts are $2,000, or less, in the current or prior calendar year (attach GL-80 to provide coverage up to $2,000 gross receipts; refer to Rule 304. if gross receipts exceed this amount). B. MANUAL STRUCTURE This manual includes the following sections: PART I Coverage & Definition Type Rules PART II Discounts, Surcharges, Premium Determination, Country Home Option PART III Mandatory/Conditional Mandatory Forms and Endorsements PART IV Optional Liability Endorsements PART V / GMRC Comparative Forms List 07/14 -GR-1 denotes change

9 RULE 101. DESCRIPTION OF MANDATORY COVERAGES (Cont d.) e. Employers Liability GL-76 must be attached to extend Coverage L to provide Employers Liability Coverage, subject to the limit stated in the Declarations, for same, as this coverage is included in the base rate and can not be rejected by the insured. Employee labor is included at no charge, up to 6 man months. Increased man months are available; refer to Liability Rate Schedule for rate. This endorsement provides liability protection with respect to the insured s Common Law obligation to farm employees, to provide a safe work environment and safe tools to work with, if Workers Compensation coverage is not required. There is no coverage under this part if Workers Compensation is required. f. Fire Legal Liability The limit stated in the Declarations for Coverage L applies to damage to property rented to, occupied by, used by, or in the care of an insured, when caused by fire, smoke, or explosion. 2. MEDICAL PAYMENTS COVERAGE M a. 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 personal activities, subject to the limit stated in the Declarations for Coverage M. Minimum limit is $1,000; increased limits are available. b. Medical Payments To Farm Employees GL-76 must be attached to extend Coverage M to provide Medical Payments To Farm Employees, as this coverage is included in the base rate and can not be rejected by the insured. The minimum limit ($1,000) is included at no additional charge; if the insured selects a higher limit for Coverage M Medical Payments To Others, the increased limit stated in the Declarations will also apply to Medical Payments To Farm Employees. There is a separate rate for increased limits for Medical Payments To Others and for Medical Payments To Farm Employees. c. Increased Limits Refer to Liability Rate Schedule for rates. B. INCIDENTAL LIABILITY COVERAGES Except for Claims and Defense Costs, these coverages do not increase the principal coverage limits. 1. Damage To Property Of Others Covers property of others damaged by an insured ($500 per occurrence limit). This coverage also applies to damage to non-owned motorized vehicles that are not subject to motor vehicle registration if only used to service premises or designed for recreational off-road use. Any payment under this part reduces the Coverage L limit. The exclusions applicable to Coverage L do not apply to this coverage, but there is no coverage for property: a. Owned by an insured; b. Owned by, rented to, or leased to another resident of the insured s household or the tenant of an insured; c. Caused intentionally by an insured age 13 or older; d. Resulting from: 1) Business activities of any insured; 2) Premises other than an insured premise; 3) Ownership, use, etc. of motorized vehicles, watercraft, and aircraft. 2. Contracts And Agreements Covers liability assumed by an insured under a written contract made before the loss, which occurs during the policy period, and relates to farming activities or the residence premises. This coverage does not apply to a contract in connection with business activities of an insured. 3. Claims And Defense Costs May be paid in addition to limits of liability. 4. First Aid Expense Incurred by the insured for first aid to persons covered for bodily injury. 01/14 -GR-2

10 RULE 101. DESCRIPTION OF MANDATORY COVERAGES (Cont d.) 5. Motorized Vehicles Provides on premises coverage for a motorized vehicle not subject to motor vehicle registration; or a recreational vehicle. Provides off-premises liability coverage for: a. A golf cart, while used for golfing; b. A utility trailer, boat trailer, camping trailer, or mobile home trailer while not attached to a motor vehicle; c. A motorized vehicle designed for use off public roads and used mainly to service the insured premises, including farm machinery; or d. A recreational vehicle which is not owned by an insured. 6. Watercraft Coverage is provided for bodily injury or property damage which results from the maintenance, use, loading, or unloading of: a. A watercraft while on the insured premises (owned or non-owned, regardless of the size of boat or motor); b. A watercraft which is not owned by or rented to an insured if the loss is caused by the activities of any insured (coverage applies regardless of the size of boat or motor); c. A watercraft which is owned by or rented to an insured if powered by an inboard or inboard/outboard motor which total 50 HP or less; or an outboard motor with 25 HP or less; d. A sailing vessel with or without auxiliary power which is owned by or rented to an insured if less than 26' long. 7. Business Covers liability arising out of the rental of: a. Part of the insured premises which are usually occupied by the named insured as a residence; b. Rental of other parts of the insured premises to a family unit consisting of not more than 2 roomers or boarders; or c. Rental of part of the insured premises for use as a private garage. Risk is ineligible if part of the insured premises is rented to others for use as a school, studio, or office; an OLT policy (GL-600) should be written. RULE 102. MINIMUM LIABILITY LIMITS Liability coverage is subject to the following minimum limits: Personal Liability Coverages Coverage L Liability GL-76 extends Coverage L to provide Liability To Farm Employees. The limit is stated once in the Declarations, but the Coverage L limit applies separately to Liability and to Liability To Farm Employees. Increased limits are available; refer to Liability Rate Schedule for rates. Coverage M Medical Payments To Others GL-76 extends Coverage M to provide Medical Payments To Farm Employees. The limit is stated once in the Declarations, but the Coverage M limit applies separately to Medical Payments To Others and Medical Payments To Farm Employees. Increased limits are available; refer to Liability Rate Schedule for rates. Damage To Property Of Others is provided under Incidental Liability Coverages. Increased limits are not available. Minimum Limit $100,000 per occurrence $1,000 each person $500 each occurrence 07/14 -GR-3 denotes change

11 RULE 103. UNDERWRITING A. ELIGIBLE RISKS To be eligible for a Farm Personal Liability Policy, the property must be in good condition and well maintained; a physical inspection of the property is recommended. Pursuant to RSMo(11)(f), an applicant is eligible and cannot be refused coverage solely because another company has refused to issue a policy or has cancelled or refused to renew an existing policy issued to the applicant, as named insured. Applicants or policyholders may not be required to divulge in a written application whether any insurer has cancelled or refused to renew any policy issued to them. B. INELIGIBLE RISKS Under no circumstances should coverage be bound if the following conditions exist: 1. Has had any of the following number of claims in the past 3 years: a. More than one (non-dog bite) liability claim; or b. A dog bite claim. 2. Owns any: a. Domesticated wildlife or dangerous animals; b. Staffordshire, Akita, Pit Bulls, Dobermans, Rottweilers, Chows, Wolf Hybrid, or Presa Canario; or c. Dog(s) that are mean or act in an aggressive manner. 3. Fails to properly maintain: a. Fences, if livestock are kept on the premises; or b. Farm equipment and machinery (e.g. guards are removed, no slow moving vehicle signs are displayed, and/or machinery has improper/inadequate lighting). 4. Condition of premises is poor (accumulation of trash and/or litter, including tall grass and weeds near the buildings); and/or dwellings/buildings are poorly maintained. 5. Custom farming and/or custom feeding activities if the gross receipts in the current or prior year exceed the amounts stated in Rule 405.; these risks can be submitted to Farm Casualty Underwriting for consideration. 6. Any insured engaged in underground excavation, trenching, bulldozing or similar earth moving activities. 7. Any insured engaged in boarding or training horses for others; giving horseback riding lessons; horseshoeing or similar activities which are not considered raising livestock for sale. 8. Any insured who owns any dangerous animals, such as bears, cougars, etc. 9. If part of the insured premises is rented for use as a school, studio, or office. An OLT policy (GL- 600) should be written. RULE 104. INSURABLE INTEREST It is important to identify all persons or organizations that need coverage, and the extent to which coverage should apply. If an individual or organization needs coverage they must be specifically listed in the Declarations as a named insured or additional insured (either limited or broad form). Only persons with an insurable interest in the property should be listed. The term et al or and others should never be used after the named insured in a policy containing liability insurance as we do not intend to provide coverage for any others who are not specifically listed by name and whose relationship to the risk isn t clearly understood. A single entity should be listed as named insured; other individuals or organizations must be listed as Additional Insureds (broad or limited) according to their relationship to the risk. A. NAMED INSURED Provides broad form liability coverage for the persons or organizations listed on the endorsement or in the Declarations. Coverage is extended to the spouse and other family members only if residing in the named insured s household. If the individual has other insurance that provides personal acts coverage, the Farm Liability policy must be limited to farm premises and operations liability coverage. B. ADDITIONAL INSURED (GL-70) Provides limited liability coverage (premises liability) for the individual or organization listed in the Declarations as Additional Insured Limited Form. The additional insured s interest must be described in the application. 07/14 -GR-4 denotes change

12 RULE 104. INSURABLE INTEREST (Cont d.) C. ADDITIONAL INSURED (GL-71) Provides broad form liability coverage only for the person(s) or organization(s) listed on the endorsement or in the Declarations. Coverage is not extended to the spouse or any other resident relatives. If the individual has other insurance that provides personal acts coverage, the Farm Liability policy must be limited to farm premises and operations liability coverage. Organizations (Corporations, Partnerships, Trusts, or Estates) If not listed as a named insured, attach GL-71 to provide broad form coverage to avoid potential gaps in coverage (refer to example below) when the insured has a Personal Excess policy or obtains same at a later date. Example: Farm corporation is listed as Addtl Insd (Ltd) under GL-2 and under the PEP, and the insured is involved in a motor vehicle accident with a farm truck that s registered to the corporation and is insured under the Personal Auto Policy. The Personal Auto Policy will provide coverage as this truck is listed in the Declarations and we ll assume there are no applicable exclusions. Due to the fact the underlying policy provides limited liability coverage for the corporation, the Personal Excess Policy provides limited liability coverage and may not apply to the motor vehicle accident which occurred off the insured premises. To avoid this gap in coverage, broad form coverage should be provided for a farm corporation or other organization. D. ADDITIONAL INSUREDS AND ADDITIONAL RESIDENCES (GL-72) Provides broad form liability coverage for the individual(s) listed on the endorsement or in the Declarations only while they are a resident of the insured s household. Refer to Rule 402. for additional information. PART II DISCOUNTS, SURCHARGES, PREMIUM DETERMINATION, COUNTRY HOME OPTION RULE 200. DISCOUNTS A. Livestock Exclusion (GMRC 2229 ) This endorsement excludes coverage for bodily injury or property damage caused by livestock or poultry, owned by or in the care, custody or control of any insured person, except for livestock or poultry kept for pleasure, or for 4-H, FFA, or similar organizations. A 20% discount applies to the base rate. B. Non-Occupied Landlord's Liability Endorsement (GMA 2233) This endorsement provides farm premises and operations liability coverage, including Employer s Liability Coverage, for the farm property that is owned by the insured but has been relinquished to the control of a third party. The discount reflects the fact no coverage is provided for off-premises personal acts; or liability arising out of an insured s active participation in the farming operation; coverage is provided while performing routine maintenance. A 50% discount applies to the base rate. C. Owner-Occupied Landlord's Liability Endorsement (GMRC 2259 ) This endorsement covers personal acts, on and offpremises, and liability arising out of the farm premises and operations, including Employer s Liability Coverage, when the insured resides on-premises but has relinquished the farm operation to the control of a third party. The discount reflects the reduction in liability exposure due to the fact the insured warrants he is no longer actively involved in the farming operation. Coverage is provided while insured performs routine maintenance. A 30% discount applies to the base rate. RULE RESERVED FOR FUTURE USE 07/14 -GR-5

13 RULE 200. DISCOUNTS (Cont d.) D. Farm Premises and Operations Limited Liability Endorsement (GMA 2271) This endorsement should be used when the insured resides outside of the state of Missouri and owns and operates a farm operation that is primarily located within the state of Missouri which does not extend more than 50 miles from the border into any neighboring state. This endorsement provides liability coverage arising out of: 1. The insured premises. 2. Personal acts while an insured is on the farm premises. 3. Farm operations. Coverage is also provided for liability arising out of the non-business use of a farm implement (such as a parade or helping a neighbor). 4. Personal liability acts (except as indicated above) will be covered by the world wide personal acts coverage, which is provided by another policy, for that insured. A 15% discount applies to the base rate. RULE 201. SURCHARGE PROGRAM The intent of the Surcharge Program, which was implemented on January 1, 1977, is to apply a premium surcharge based on the number of liability claims experienced each year. By applying the surcharge to the policies with poor loss experience, we are able to stabilize the base premium level for those insureds with good loss experience. The Surcharge Program operates as described below: 1. Claims paid under Liability To Public and Liability To Farm Employees are accumulated and have a direct impact on the amount of surcharge assessed to a particular policy. 2. Claims that have been reported, but not paid, are not reflected in the surcharge program. 3. Medical Payments To Others and Medical Payments To Farm Employees do not accumulate towards the surcharge program. 4. A 50% surcharge will be applied on the renewal date following the second claim within the two year experience period. Each additional claim within the two-year period will increase the surcharge as indicated in the table. The policyholder returns to a surcharge free status on the renewal date following a two-year claim free period. No. of Claims Surcharge Level Amount % % % 07/14 -GR-6 denotes change

14 RULE 202. PREMIUM DETERMINATION RULE 1. Start with the package premium for the initial farm residence, with up to 240 acres. 2. Add charge for additional acreage, calculated as follows (round to the penny): a. If total acres are greater than 240 and less than 640, subtract 240 from the total and multiply the difference times the acre charge based on the limit of liability. Add to premium developed on Step 1. b. If total acres exceed 640, subtract 640 from the total and multiply the difference times the rate that applies to over 640 acres. Add to premiums developed in Step 1. and 2., above. 3. Add the increased limits rate for Medical Payments To Public and Medical Payments To Farm Employees, if any. 4. Add the increased limits rate for increased employee labor, if any. 5. Apply discounts, if any, to the total premium developed in Steps 1-4: a. 35% GMRC 2259 (Owner-Occupied Landlord s Liability) b. 50% GMA 2233 (Non-Occupied Landlord s Liability) c. 20% GMRC 2229 (Livestock Exclusion) d. 15% GMA 2271 (Farm Premises and Operations Limited Liability Endorsement) 6. Add other endorsement premium, if any. 7. Apply Experience Rating surcharge, if any. RULE 203. COUNTRY HOME RATING OPTION (for Hobby Farms) This program offers a reduced rate for farm liability coverage for the individual who lives on an acreage but whose primary source of income is not derived from farming. Contact your Farm Casualty Underwriter if the risk exceeds the following guidelines: 1. Number of acres exceeds Value of farm personal property exceeds $60, Dwelling is insured for less than $60,000. The following endorsements may not be attached to the policy if Country Home rates apply: End No. Title Discount GMA 2233 GMRC 2229 GMRC 2259 GMA 2271 Non-occupied Landlord s Limitation (Restricted to Farm Premises and Operations Only) 50% Livestock Exclusion Endorsement 20% Owner-Occupied Landlord s Endorsement Farm Premises and Operations Limited Liability Endorsement RULE RESERVED FOR FUTURE USE 35% 15% 07/14 -GR-7 denotes change

15 PART III MANDATORY/CONDITIONAL MANDATORY FORMS AND ENDORSEMENTS The following forms and endorsement are required to complete the policy; consult each endorsement for a detailed explanation of conditions and coverages. RULE 300. GL-2 POLICY PROVISIONS (Mandatory Endorsement) The Farm Personal Liability policy describes the coverage provided by the basic policy. RULE 301. FL 5107 (Part 2 Assessable) AND FL 5108 (Part 2 Non-Assessable) AMENDATORY ENDORSEMENTS (Mandatory Endorsement) These endorsements amend GL-2 and FL-1, 2, 3, 6, and 502 to comply with state regulations for MAMIC member mutuals. Cancel and Non-Renewal Notice Requirements (per MO Statute 380): Company Type 2A RL & 2NA RL Non Pay New Business 5 5 days for any reason Mid-Term Cancel 5 days for any reason Part II Assessable & Part II Non-Assessable Reinsured Liability coverage is written by the mutual. RULE 302. GL-75 CUSTOM FARMING (Mandatory Endorsement) Nonrenewal 5 days for any reason Attach this endorsement to provide coverage for Custom Farming or Custom Feeding at no charge, if gross receipts are $2,000, or less, in the current or prior calendar year. The following information must be typed on the endorsement: Description: CUSTOM FARMING Estimated Receipts: $2000 per year Rate per $100 of Receipts: Leave Blank Advance Premium: INCLUDED This endorsement may be used to provide coverage when gross receipts are more than $2,000. Refer to Rule 405. RULE 303. GL-76 EMPLOYERS LIABILITY FARM EMPLOYEES (Mandatory Endorsement) Attach this endorsement to extend Coverage L and M to provide: 1. Employer s Liability (subject to the limit stated in the Declarations for Coverage L); and 2. Employee Medical Payments (subject to the limit stated in the Declarations for Coverage M) up to 6 man months of Employee Labor is included. Increased man-months are available; refer to Liability Rate Schedule for rate. RULE 304. GL-80 OFFICE, PROFESSIONAL, PRIVATE SCHOOL OR STUDIO OCCUPANCY (Mandatory Endorsement) Attach this endorsement to provide coverage for an incidental business activity at no charge, if gross receipts are $2,000 or less in the current or prior calendar year. GMRC 1031 may be used if gross receipts exceed $2,000. Refer to Rule 408. for additional information. The following information must be typed on the endorsement: 1. Description of Business: Bodily injury and Property damage coverage is provided for incidental business activities if the gross receipts are $2,000 or less in the current or prior calendar year. 2. Address: Insert the address of the insured premises, as described in the Declarations RULE 305. GMRC 1992 FUNGI AND BACTERIA ENDORSEMENT (Mandatory Endorsement) This endorsement limits coverage to $50,000 for bodily injury and property damage arising out of fungi. This limit is the most that will be paid per occurrence and per policy year. 07/14 -GR-8 denotes change

16 RULE 306. GMRC 2292 FARM IMPLEMENTS ALL MATERIAL TRANSPORT VEHICLE (Mandatory Endorsement) This endorsement adds a definition for farm implement and clarifies a farm implement includes a recreational vehicle or an all material transport vehicle while used for farming purposes. 1. AMTs If an all material transport vehicle is used primarily for farming, liability coverage applies whether unit is being used on or off-premises, including occasional off-premises use for recreational purposes. If the AMT is used primarily for recreational purposes, there is no off-premises liability coverage unless the unit is specifically insured under a Select Recreational Vehicle endorsement. 2. RVs Off-premises coverage is not provided (except while used for farming) unless specifically insured under a Select Recreational Vehicle endorsement. RULE 307. GMRC 2273 ANNUAL AGGREGATE ENDORSEMENT (Mandatory Endorsement) This endorsement adds an annual aggregate which is two times the limit stated in the Declarations for Coverage L. RULE 308. GMIL 4722 IDENTITY THEFT EXPENSE COVERAGE (Mandatory Endorsement) This endorsement provides coverage for expenses incurred as a direct result of identity theft, subject to a $15,000 limit and a $250 deductible. RULE 309. GL-5890 EXCLUSION FOR PUNITIVE DAMAGES, LEAD, AND ASBESTOS (Mandatory Endorsement) Replaces the Punitive Damage Exclusion, GL ; and the Lead Liability Exclusion, ML-223; and adds exclusion for bodily injury and property damage arising out of asbestos. RULE 310. GL-5891 SUIT AGAINST US (Assessable Companies) (Mandatory Endorsement) Amends the time limit for Suit Against Company to 12 months when the liability coverage is written by an assessable mutual. Note: If the liability coverage is written by GMRC, the time limit for Suit Against Company is ten (10) years. RULE 311. GL-5892 SUIT AGAINST US (Non-Assessable Companies) (Mandatory Endorsement) This endorsement amends the time limit for Suit Against Company to 10 years. RULE 312. RESERVED FOR FUTURE USE RULE 313. RC 92 POLICY JACKET (Mandatory) This jacket, which is available from GMRC s Forms Distribution Department and can be customized for each mutual. The mutual is identified as the insurer and annual meeting information is stated on the jacket; reference to GMRC is omitted. This jacket can be used for property only policies by all mutuals; and for liability policies by mutuals who write their own liability coverage. 07/14 -GR-9 denotes change

17 RULE 314. GL LIMITED FARM POLLUTION COVERAGE (Conditional/Mandatory Endorsement) This endorsement may be treated as an optional premium bearing endorsement but can also be treated as a mandatory endorsement, as described below. When GL- 565 is attached to the policy, Coverage L is extended to provide coverage for bodily injury or property damage arising out of spray drift of agricultural chemicals and discharge, dispersal, spill, release, or escape of Agricultural Chemicals. The maximum limit is $300,000; a $500 deductible applies. Refer to the State Exception page for GL-565, for rate. Processing instructions: 1. The Policy Year Aggregate Limit must be stated on the endorsement or in the Declarations. This limit applies per occurrence and is the most that will be paid in a policy year. 2. If this endorsement is treated as a mandatory non-premium bearing endorsement: a. $25,000 is the maximum limit that can be included at no charge. b. This limit must be stated on the endorsement or in the Declarations, same as stated in paragraph 1., above. c. If increased limits are purchased, the Policy Year Aggregate Limit stated on the endorsement or in the Declarations may not exceed $300,000. RULE 315. GMRC 2269 CERTIFIED ACTS OF TERRORISM LIABILITY (Terrorism Risk Insurance Act (TRIA) Forms for GL 2 & GL 610) (Conditional/Mandatory Endorsement) This endorsement must be sent to the insured annually. 1. This is a mandatory, non-premium bearing endorsement if the liability coverage is written by GMRC. 2. If the liability coverage is written by the mutual this endorsement may be attached to the policy as a mandatory, non-premium bearing endorsement or as an optional, premium bearing endorsement. a. If treated as a mandatory, non-premium bearing endorsement, the only future action required is to send a copy of this endorsement to the insured annually. b. If treated as an optional, premium bearing endorsement, a Disclosure Notice (RC 7010) must be sent to the insured which gives the insured the option to accept or reject this coverage. If the coverage is accepted, GMRC 2269 must be attached; attach GMRC 2270 RL if the coverage is rejected. RULE 316. GMRC 2270 RL LIABILITY EXCLUSION FOR CERTIFIED ACTS OF TERRORISM (Conditional/Mandatory Endorsement) This is mandatory if insured rejects GMRC 2269, as described above. Once rejected, GMRC 2270 RL remains on the policy until TRIA is revised (you do not have to offer GMRC 2269 with subsequent renewal or anniversaries). RULE 317. RC 7010 NOTICE OFFER OF COVERAGE FOR CERTIFIED ACTS OF TERRORISM, DISCLOSURE OF PREMIUM, AND REJECTION FORM (Conditional/Mandatory Endorsement) This is a mandatory notice that must be mailed with new business and annually thereafter, with anniversary and renewal policies if the mutual is charging for GMRC 2269 and the insured previously accepted GMRC If insured wants to reject GMRC 2269, the Rejection Form included on RC 7010 must be completed and returned to the mutual. If GMRC 2269 is rejected, the mutual is not obligated to offer this coverage again. RULE 318. RC 364 FAIR CREDIT REPORTING NOTICE (Conditional/Mandatory Notice) This notice is required per the Fair Credit Act, and must be sent to an insured if an adverse underwriting action is taken based on any consumer reports or information received from a third party vendor (such as claims or MVR information obtained from Choice Point). An adverse underwriting action has been determined by the courts to include not giving the best rate or coverage available; adding a claim or underwriting surcharge, or any other action that adversely affects the policyholder. This notice is not required if the information that prompted the action was provided by the applicant/insured or was part of that insured s policy or claims history with your mutual. 07/14 -GR-10

18 RULE RESERVED FOR FUTURE USE RULE 321. RC 354 MO ASSESSABLE POLICY TERMS ENDORSEMENT (Assessable Mutuals) (Conditional/Mandatory Endorsement) Notifies the insured the policy is assessable. CL-5000 may be used to comply with this requirement or the Assessable policy disclosure may be stated on page 1 of the policy jacket. RULE 322. GMA 1945 PERSONAL INJURY COVERAGE (Mandatory Endorsement) This endorsement extends Coverage L, Personal Liability, to include personal injury, meaning bodily harm, shock, or mental anguish which arises out of false arrest, detention or imprisonment; malicious prosecution, libel, slander, defamation of character, or invasion of privacy; or wrongful eviction or wrongful entry. RULE 323. GMA 3475 FARM LIABILITY AMENDATORY (Mandatory Endorsement) The purpose of this endorsement is to extend liability coverage to apply to the off-premises use of a utility or farm tractor, by a permissive operator, for non-business purposes, such as when tractor is being used in parades, or on display, etc. RULE 324. GMIL 4618 OIL OR GAS WELL LIABILITY EXCLUSION (Mandatory Endorsement) Clarifies there is no coverage for injury or damages arising out of oil or gas wells with respect to pollution liability, contractual liability, or any claim of common law or statutory nuisance or trespass. RULE RESERVED FOR FUTURE USE PART IV OPTIONAL LIABILITY ENDORSEMENTS RULE 400. GL-70 ADDITIONAL INSURED (Premises Liability) Coverage applies only with respect to the described premises, including the necessary and incidental operations of the premises. RULE 401. GL-71 ADDITIONAL INSUREDS (Broad Form) The definition of insured includes the persons or organizations listed on the endorsement, as their interest appears. Coverage applies: 1. Separately to the non-partnership operations, activities, and property of each partner; and 2. Collectively to the partnership and all partners, with respect to partnership operations, activities, and property. RULE 402. GL-72 ADDITIONAL INSUREDS AND ADDITIONAL RESIDENCES Extends liability coverage to: 1. Resident of insured s household who needs broad form coverage and is not a relative. 2. Additional Residence Maintained by Insured (seasonal dwelling/cabin); Town Residence Occupied by Insured. RULE 403. GL-73 ADDITIONAL RESIDENCES OR FARM RENTED TO OTHERS Extends liability to a rental property. Maximum of 20 separate buildings. Risk is ineligible if smoke detectors are not installed in accordance with applicable state regulations; and/or dwellings contain more than four rental units are not eligible. 07/14 -GR-11 denotes change

19 RULE 404. GL-74 BUSINESS ACTIVITIES This endorsement provides limited coverage for liability arising out of the insured s employment, when employer doesn t have employee liability insurance or has an insurance policy with inadequate limits. This endorsement affords protection when the employee is held separately or jointly liable for damages arising out of his/her employment and is sued individually or jointly with the employer. This endorsement cannot be written for the proprietor of a business. Refer to Liability Rate Schedule for rates, which are based on the type of employment. RULE 405. GL-75 CUSTOM FARMING A. Attach this endorsement to provide coverage for Custom Farming if the gross receipts exceed $2,000 in the current or prior calendar year. The type of custom farming activity must be shown in the Declarations, along with gross receipts. Refer to Liability Rate Schedule for rates. Underwriting : Risk is eligible if gross receipts do not exceed $150,000. B. GL-75 is also used for Custom Feeding which provides bodily injury and property damage protection for claims arising from the activities of care or raising of livestock or poultry by any insured person in accordance with a written or oral agreement. Underwriting : No coverage is provided with respect to injury or death of the livestock that are in the insured s care, custody, and control as part of his custom feeding operation. Risk is eligible regardless of the amount of total gross receipts. If this is a new venture, the risk should be rated on the estimated gross receipts. It is important the insured does NOT understate gross receipts. RULE 406. GL-84 CARE PROVIDED FOR OTHERS COVERAGE Extends liability coverage to a day care business located on the insured premises. The number of children must not exceed six at anytime. RULE 407. GMRC 911 MANUSCRIPT POLICY ENDORSEMENT Used to address unique situations. Requires Home Office approval; contact your Farm Casualty Underwriter for assistance. RULE 408. GMRC 1031 BUSINESS ACTIVITIES ENDORSEMENT A. GENERAL INFORMATION To a varying degree, many farmers engage in activities which can not be defined as farming such as snow removal, machinery repair, and seed corn sales, etc. The farmer needs liability protection for such activities to round out a full and complete program of protection. The farmer could purchase a General Liability policy for such business activities but frequently the activity requires only a small portion of the farmers time and contributes only marginally to the annual income. Consequently the farmer finds the minimum premium of the General Liability policy too costly. The Incidental Business Activities endorsement can be added to waive the business exclusion and extend Coverage L and Coverage M to the business described in the endorsement, when it is incidental in nature, as described above. Caution is advised when using this endorsement, as the coverage provided (and rates) are based on the premise that the activity is minor in comparison to the insured s overall family income. If the activity exceeds the Underwriting it should be insured separately under a General Liability policy. 07/14 -GR-12 denotes change

20 RULE 408. GMRC 1031 BUSINESS ACTIVITIES ENDORSEMENT (Cont d.) B. UNDERWRITING 1. Gross receipts and/or gross commissions from the described business may not exceed $40,000 in the current or past calendar year. 2. Business activity must be incidental in nature (it should not be the insured s primary source of income); and 3. Business has no employees. Business is ineligible if the insured employs hired help in the activity (regardless of income). A General Liability policy must be written and Workers Compensation insurance provided, as the Farm Personal Liability policy does not cover employers liability for these activities. Therefore, the Workers Compensation Exclusions stated in the policy apply to any such employees. 4. If insured/applicant is engaged in an incidental business (such as bee keeping, storage of property of others and/or open air markets, etc.), which is not listed as an eligible activity but meets the rules outlined above, it may qualify for coverage under Incidental Retail/Service N.O.C. Contact your Farm Casualty Underwriter for approval prior to binding coverage. C. ELIGIBLE ACTIVITIES 1. Antique Shop 2. Appliance Repair Shop 3. Bait Shop 4. Beauty or Barber Shop 5. Building(s) owned by insured and leased to 3rd party for commercial purposes (lessor s risk only) 6. Cabinet Shop/Handcraft Shop 7. Carpentry Odd Jobs 8. Custom Corn Shelling 9. Farm Product Salesman 10. Farm Tractor Use Off Premises for Snow Removal, Plowing Gardens, etc. 11. Incidental Retail/Service N.O.C. 12. Landscaping (excludes tree trimming, bulldozing, and excavations) 13. Licensed Product Sales such as Mary Kay, Avon, and Pampered Chef 14. Office/ Studio such as Insurance Office, Real Estate Office, and Music/Tutoring Lessons (see Rule 304.) 15. Off-Premises Limited Activity Use of Power Appliances for Hire 16. Refreshment Stands (Not Restaurants) 17. Sewing/Upholstery Shop 18. Shearing Sheep 19. Taxidermy D. INELIGIBLE ACTIVITIES 1. Appraisers (home appraisals and/or inspections) 2. Archery or gun ranges, including skeet or trap shooting 3. Auctioneers 4. Bulldozing, backhoe, or grading 5. Camp grounds and/or picnic grounds 6. Corn mazes open to the public 7. Custom spraying 8. Custom farming and/or custom feeding activities 9. Dance studios or exercise classes 10. Dog kennels, includes ownership or use of dogs for breeding purposes and boarding of dogs 11. Equestrian business activities, meaning commercial activities involving horse boarding, racing stables, breeding, livery, lessons, hoof trimming and/or shoeing, rental or riding of horses for hire, and hayrides 12. Fishing for charge 13. Food processing, food preparation, and other food sales such as: Canned meats Catering Custom butchering Homemade jams, jellies, pie/cakes, etc. 01/14 -GR-13 denotes change