Utah FlexAuto 2.0 Product Manual. FlexAuto is a registered service mark of QBE Regional Companies (N.A.), Inc.

Transcription

1 Utah FlexAuto 2.0 Product Manual FlexAuto is a registered service mark of QBE Regional Companies (N.A.), Inc.! " # $ #

2 Utah Automobile 1 Program Placement Available Programs Insurance Bureau Score New Business Verification Application Claims History/MVRs Policy File Maintenance Prior Insurance Vehicle Information Classic Autos Corporate Owned Vehicles Eligibility Garaging Address Grey Market Vehicles Ineligible Vehicles Inspections Jointly Owned Vehicles Miscellaneous Type Vehicles Symbol Rated Vehicles Vehicle Use Exotic & Specialized Vehicles Liability Only Vehicles Living Away From Home Model Year Average Vehicle Age Driver Information Classifications Driver Averaging Driver Eligibility Financial Responsibility Filings Ineligible Drivers License Status Named Driver Exclusion Driving Record Assignment of Points Driving Record Surcharges Coverage Options Custom Parts and Equipment Increased Limits Liability Physical Damage Comprehensive & Collision Towing and Roadside Assistance Transportation Expense Auto Loan/Lease Coverage Excess Electronic Equipment Coverage Extended Non-Owned Liability Coverage Full Safety Glass Coverage Mexico Coverage QBE North America Companies 02/2017

3 Utah Automobile 2 Discounts Incident Free Good Student Discount Multi-Policy Discount Newer Vehicle Credit Paid In Full Discount Proactive Customer Professional Group Discount Student Away at School Employee Discount Miscellaneous Type Vehicles Antique Autos Classic Autos Golf Carts Motor homes Snowmobiles Trailers and Campers General Rules Billing Scorecard Factor Surcharge Cancellation Changes Policy Period Suspension of Coverage Waiver of Premium Whole Dollar Premium QBE North America Companies 05/2017

4 Utah Automobile 3 Program Placement Available Programs QBE s FlexAuto program provides coverage for the following Personal Auto vehicle types: Pick up Private passenger auto Sport utility vehicle (SUV) Van Miscellaneous Vehicles (not available if only unit on the policy) New Business The customer will be provided the best possible rate based on information obtained from various sources, including the application, insurance bureau score, driving record and loss history. Insurance Bureau Score An insurance bureau score (IBS) is ordered on the primary named insured for all new business quotes and submissions. If the insured and spouse, or domestic partner, legally recognized under Utah law, are listed as primary named insured and co-applicant the IBS will be ordered on both and both scores will be used. We order a score from LexisNexis utilizing the Attract 3.0 model. The IBS is automatically ordered. Simply follow the instructions in our quoting system. Please read the customer the short disclosure statement that appears on the screen. Be sure to include the applicant s full name, address and social security number to avoid inaccurate or unavailable IBS information. You will not receive any information contained in the customer s credit report; it is ordered, received and used exclusively by QBE through our rating system.

5 Utah Automobile 4 Verification Policy File Maintenance and Verification Please refer to the file retention guideline available on QBE s website. Application The signed application must be retained in the agent s file. Claims History/MVRs QBE uses LexisNexis Comprehensive Loss Underwriting Exchange (CLUE) reports and/or Motor Vehicle Reports (MVRs) and/or Explore Information Services to verify each driver s accident and violation history. For inforce policies we also use information from QBE s records, including insured questionnaires, to verify driver accident and violation information. Note: Full disclosure is essential in order to avoid premium conflicts or policy cancellation. Any unrevealed driving activity will be added to the driving record and the policy will be re-rated accordingly. Prior Insurance and Prior Coverage Limits Information about prior insurance and prior coverage limits is required. This information includes: Name of prior insurance carrier. Length of insurance coverage with prior carrier. Bodily Injury Limits on prior policy. Any days lapse in prior coverage. The information listed above will be verified through the use of a prior carrier report. The amount of time the named insured s coverage was in effect with the prior company has an impact on the amount charged for this policy.

6 Utah Automobile 5 Vehicle Information Vehicle Eligibility A FlexAuto policy may be written for a private passenger auto. The vehicle must be owned by an individual or by a husband and wife, or by domestic partners, legally recognized under Utah law, who are residents in the same household. A private passenger auto is a four-wheel motor vehicle, other than truck type, owned or leased under contract for a continuous period of at least six months. Note: Auto, as used in this product guide, refers to private passenger automobiles or those motor vehicles considered as private passenger autos. Ineligible Vehicles The following risks are not acceptable: Ambulances Buses Commercial auto types, such as but not limited to: step, panel and cut away vans, flatbed, stake beds, and dump trucks Corporate owned or leased vehicles. For exceptions to this please see the Corporate Owned Vehicle Endorsement described later in this section. Pickups and vans which have a Gross Vehicle Weight Rating of greater than 14,000 pounds, or any vehicle with a Gross Vehicle Weight Rating greater than 14,000 pounds for which a symbol is assigned by ISO. Day care vehicles Driving school vehicles Dune buggies, VW Baja or Kit Cars Fire, Police, Emergency and for-hire vehicles Hearse Motorcycles Rental automobiles Vehicles equipped with snow removal equipment Vehicles requiring state or federal motor carrier permits to operate A vehicle used: as a primary residence for racing or speed contests to carry persons or property for compensation or a fee (does not include share-the-expense car pool) for wholesale/retail delivery (includes pizza and newspaper delivery)

7 Utah Automobile 6 Vehicle Information (continued) Low Speed Vehicles or Neighborhood Electric Vehicles (NEV). Vehicles with four wheels designed for use on public roads that have a top speed of 25 mph or less. Examples: GEM, Ford Think, or Microtrucks. Vehicles without a permanent garaging address in Utah (exception: student with vehicle at school with an alternate garaging address). Vehicles insured for Comprehensive and Collision coverages only. Vehicles leased or rented to other drivers by the insured. Vehicles which are regularly made available to unlisted drivers. Vehicles not registered in Utah. If vehicle has newly located to Utah, the vehicle must be registered in Utah within 30 days of the policy effective date. Salvage vehicles, or salvage title vehicles or Homemade vehicles. Vehicles not garaged in the state of Utah at least 10 months of every year. Exceptions: a) Student with vehicle at school with an alternate garaging address. b) Motorhomes - must be garaged in the state of Utah at least 6 months of every year. Exotic & Specialized Vehicles Exotic vehicles (i.e., Ferrari, Rolls-Royce, Bentley, Aston Martin, Lamborghini, Maybach, etc.) with low sales volume and MSRPs that far exceed the highest Price New value on the ISO symbol chart are generally not eligible and should be referred to Underwriting. Grey Market Vehicles Grey Market Vehicles have been manufactured outside the United States and do not meet U.S. emission and safety standards. Some grey market vehicles are not eligible for coverage because of this. Grey market vehicles that have been upgraded to meet U.S. emissions and safety standards may be rated using the same symbols as would be used for a comparable U.S. vehicle. Please contact underwriting if you have one of these vehicles. A copy of the vehicle registration is required to verify that the local jurisdiction s Department of Transportation safety requirements and Environmental Protection Agency emission standards are satisfied. Inspections It is expected that all vehicles are in good condition and that they are mechanically sound. Information about pre-existing damage must be included in the remarks section and photos of the vehicle must be kept in the agency file. An inspection may be requested at our discretion. Corporate Owned Vehicles This endorsement allows a private passenger vehicle that is titled in the name of a business to be written on a personal auto policy. The vehicle must be for personal use only or driving to and from work and the named insured must own the business. The guidelines for this endorsement are listed below: A private passenger auto owned by a corporation when the auto(s) is primarily operated by the corporate officer named in the declarations, or family members who are residents of the same household; The auto is a private passenger, station wagon, pickup or van type vehicles;

8 Utah Automobile 7 Vehicle Information (continued) Only the individual corporate officer is to be named on the declarations as named insured, not the corporation itself; Any auto operated by an employee of the corporation, other than the corporate officer named in the Declarations are not eligible; No more than four autos are owned or leased by corporations, co-partnerships or unincorporated associations; Jointly Owned Vehicles A FlexAuto Policy may be endorsed for eligible private passenger autos, and pickups and vans that are owned jointly by two or more: 1. Resident relatives other than husband and wife, or domestic partners, legally recognized under Utah law; or 2. Resident individuals; or 3. Non-Resident relatives, including non-resident husband and wife, or non-resident domestic partners, legally recognized under Utah law. Classic Autos A classic auto is a motor vehicle of the private passenger type, that is 10 or more years old and that may be used on a regular basis. Its value is significantly higher than the average value of other autos of the same make and model year. Classics are eligible for the same limits and coverages as other autos but classics must have Comprehensive coverage. Our limit of liability for a partial loss will be the lesser of the: a. actual cash value of the stolen or damaged property: or b. amount necessary to repair or replace the property; or c. maximum limit of liability shown in the Declarations. Our limit of liability for a total loss will be the amount shown for each Classic auto in the Declarations which is agreed to be the value of the covered auto. Miscellaneous Type Vehicles The following miscellaneous type vehicles may be eligible for coverage: Recreational Vehicles Antique autos, trailers (including camper bodies) and motor homes are eligible for coverage under our FlexAuto policy. Please refer to the Miscellaneous Vehicle section for more information. Off-Road Vehicles The following four-wheel vehicles, which are not licensed for use on public roads or highways, may be eligible for coverage under our FlexAuto Policy: Snowmobiles Golf Carts Please refer to the Miscellaneous Type Vehicle section for more information.

9 Utah Automobile 8 Vehicle Information (continued) Symbol Rated Vehicles All Coverages We use ISO defined vehicle symbols, which are automatically generated by our quoting system. Please ensure that the Vehicle Identification Number (VIN) is correct since symbols will be assigned based on the VIN. Model year: The model year is determined by the auto s original manufacturer. If the vehicle is rebuilt or structurally altered, the model year of the chassis determines the model year of the vehicle. Vehicles 1981 and newer: After you enter vehicle information, the first ten digits of the VIN will be shown on the screen. Confirm that this number matches the VIN provided by the applicant to ensure an accurate quote. These vehicles may be rated by applying the Symbol or on a Stated Value basis when there is no Symbol available and older models: Choose the correct subtype and add the requested information in our quoting system and the correct symbol will automatically be assigned. Symbols Not Yet Assigned Unlisted new models: Complete the information requested in our quoting system. Contact underwriting and a company representative will assign the symbols and enter the proper vehicle symbol. Conversion Vans: Complete the information requested and original cost new in our quoting system. Contact underwriting for assistance in completing the quote/submit. Average Vehicle Age Factor The age of each vehicle on the policy will be determined for rating. Model Year Factor The original manufacturer assigns the model year used for rating. Garaging Address Rating is based on the ZIP Code where the vehicle is principally garaged. Our quoting system will automatically assign the proper territory and rating factor based on the ZIP Code that is entered. Living Away From Home: A student away from home with a vehicle is rated in the territory where the vehicle is garaged. Exception: Vehicles garaged out of state for more than six months of the year are not eligible for coverage, unless student is away at school and the parents are insured in Utah.

10 Utah Automobile 9 Vehicle Information (continued) Liability Only Vehicles Where a vehicle has neither Comprehensive nor Collision coverage a Liability Only Vehicle surcharge will be applied. This surcharge does not apply to Miscellaneous Vehicles. Vehicle Use Business Use A vehicle is considered used for business purposes if it is principally driven for business purposes other than driving to and from the principal place of work. Only vehicles classified as Private Passenger type may be rated as Business Use. a) Examples of acceptable business use: i) Vehicles used by real estate agents, insurance agents, lawyers, doctors, accountants, or other professionals who regularly visit multiple locations each day (excluding clergy who may be rated as Pleasure Use); ii) Vehicles used by salespersons or service representatives, or for customer-oriented home sales (e.g. Mary Kay, Tupperware); iii) Vehicles owned by the primary named insured and used by domestic employees (e.g. maid, chauffeurs). b) Unacceptable business use includes, but is not limited to: i) Pick-up or delivery of goods (e.g. newspaper, pizza) ii) Limousine or taxi services iii) Livery conveyance iv) Courier or escort services v) Vehicles greater than 1 ton. c) There can be up to 2 vehicles with Business use on the policy. Commute to Work Use means: (1) no Business Use, and (2) vehicles regularly used to and from work, regardless of the number of miles driven. Farm Use means an owned private passenger auto is principally garaged on a farm or ranch, and (1) it is not customarily used to go to and from work other than farming or ranching, or to drive to and from school, and (2) it is not customarily used in any occupation other than farming or ranching. Pleasure Use means: (1) no Business Use, (2) no Commute to Work Use, and (3) no Farm Use. Note: An auto driven part way to or from work or school, such as to a Park and Ride facility or train station, whether or not the auto is parked there during the day, will be rated as Commute to Work Use.

11 Utah Automobile 10 Driver Information Driver Eligibility Insured (Primary Named Insured) All policies must be issued in the name of the registered owner(s) of the insured vehicle, and the named insured and/or spouse, or domestic partner, legally recognized under Utah law, must own all insured vehicles. All drivers in the household must be insured on the policy and rated accordingly. All drivers and non-licensed individuals must be identified on the application. Ineligible Drivers The following drivers are ineligible for insurance: Drivers without current, valid driver s licenses; Drivers who are not permanent Utah residents; Named insureds with permanently suspended or revoked licenses; other drivers with suspended or revoked licenses unless the driver is excluded from coverage; Individuals who have been convicted of insurance fraud; Individuals employed in illegal enterprises or occupations; Drivers who have had a policy canceled by QBE due to loss experience or misrepresentation; Drivers who are professional entertainers or professional athletes; Drivers with more than one alcohol related violation or driving while impaired or DUI during the prior 35 months; Named insured(s) who does/do not have a financial interest in the vehicle, or does/do not have a verifiable address are ineligible; If the only drivers on the policy are under 18, the risk is ineligible. License Status/Types Eligible Operator Each operator must have a valid U.S. or Canadian drivers license. New residents (except military) must furnish QBE with a valid Utah State driver s license number within 30 days of application. Note: For applicants with a physical disability, the vehicle must be equipped with necessary mechanical controls. No surcharge is applied. Permit Rating An additional premium will not be charged for a driver who has a learner s permit, is single, under the age of 19, and a child of the primary named. However, all drivers with a learner s permit and all other non-licensed persons under age of 18 should be listed in our quoting system. Please notify QBE if and when these individuals do become licensed. Unverifiable Driver s License Any driver with a U.S. driver s license whose driving record cannot be verified by the licensing state s Motor Vehicle Department will be assessed a surcharge, please see the list of Driving Record Surcharges. The points will be removed if a valid Motor Vehicle Report (MVR), covering the experience period, is received within 30 days of the policy inception. Drivers with less than three years driving experience or who are18 years or younger will not be charged unverifiable driving record points.

12 Utah Automobile 11 Driver Information (continued) License Status/Types (continued) International and Foreign Driver s Licenses A driver who has a valid foreign or international driver s license but not a valid U.S. or Canadian license will be assessed a surcharge, please see the list of Driving Record Surcharges. The driver will be expected to obtain an Utah driver s license before the end of the first policy term. Financial Responsibility Filings (SR-22) QBE will make SR-22 Financial Responsibility filings as needed when the policy is issued. For clients needing an immediate filing, please call customer service. Financial Responsibility filings are subject to the following rules: 1. A filing may be made only for the named insured or resident spouse, or domestic partner, legally recognized under Utah law. (Any exception to this rule requires prior approval.) The name on the filing must appear exactly as it reads on the driver s license. 2. All vehicles owned by the driver requiring the filing must be insured on the QBE policy. 3. Filings will not be provided for excluded drivers, non-residents, or unrelated individuals. Named Driver Exclusion Upon receiving prior underwriting approval, a FlexAuto policy may be issued with a Named Driver Exclusion Utah. If excluded, coverages under Part A Liability, Part B Medical and Part D Coverage For Damage To Your Auto, will not be provided while any vehicle described in the policy or any other vehicle to which the terms of the policy applies is being used, driven, operated or manipulated by or under the care, custody, or control of the excluded driver, with or without permission. A copy of the Named Driver Exclusion is available on the Personal Lines tab on our website. Classifications The classifications listed below do not apply to risks rated as Miscellaneous Type Vehicles. An auto owned by an individual or by two or more resident relatives is classified as follows: Primary Classification The vehicle is classified according to the age, gender, and marital status of the operators and the use of the vehicle. Age means the age attained on the last birthday.

13 Utah Automobile 12 Driver Information (continued) Classifications (continued) Driver Marital Status Single means a driver who is not legally married, including single, separated, or divorced. Married means a married person living with his or her spouse, a person who has been widowed or parties who have entered into a domestic partnership legally recognized under Utah law and who are residents of the same household. Resident means anyone residing in the same household. Youthful Operator means an applicant, or any other resident in the same household as the applicant, who customarily operates the auto, and who is under the age of 25. Classification Changes Premium adjustments are calculated on a pro-rata basis when changes in rating classifications are made. This includes the addition or deletion of an operator during the policy term. Exceptions: a. A policy will not be revised mid-term because age changes during the policy term. b. A policy will not be revised mid-term because of a change in the driving record. c. A policy will not be revised mid-term solely due to a change in symbol assignment. Driver Averaging Drivers are not assigned to vehicles. We will develop an average rating factor of all rated household members, including consideration of their driving incident history, and apply that factor to all of the vehicles on the policy. When there are more Private Passenger vehicles than drivers, an excess vehicle factor will be assigned to the extra vehicles.

14 Utah Automobile 13 Driving Record Chargeable Date We use the violation occurrence date to determine if points are to be charged. Experience Period The experience period will be the 35 month period immediately preceding the effective date of the application or renewal for consideration of the driving record activity. For the Incidents Underwriting Factor we will consider incident activity between 36 and 60 months At-Fault Accident definition including exceptions Points outlined in the point assignment table will be assigned for each automobile accident involving the applicant or any other household resident, while operating any private passenger auto, including motor homes, resulting in: (1) any bodily injury or death; or (2) damage to any property, including his or her own, in excess of $1,500. Exception: No points will be assigned for accidents incurred by an operator who is rated as a named insured or principal operator of an auto insured under a separate policy. Unlisted Driver At-Fault Accident Factor If the driver of an insured vehicle is not a listed driver on the policy, and that person is at-fault for an accident involving the insured vehicle a surcharge will be applied. An At-Fault Accident is defined above. Not-At-Fault Accidents At-Fault Accident Points will not be assigned for an accident described above if the insured demonstrates that the accident occurred under the following circumstances: a) The automobile was lawfully parked. A vehicle rolling from a parked position will not be considered lawfully parked and points will be charged to the driver who parked the car; b) The insured or other resident driver involved in an accident was fully reimbursed or entitled to full reimbursement by, or on behalf of, a person responsible for the accident; c) An auto of the insured or other driver in the same household was struck in the rear by another vehicle, and the insured or other resident driver has not been convicted of a moving traffic violation in connection with the accident. d) The operator of the other auto involved in the accident was convicted of a moving traffic violation and the insured or other driver in the same household was not convicted of a moving traffic violation in connection with the accident. e) The auto operated by an insured or other resident driver is damaged by "hit and run driver, if the accident was reported to the proper authority within 24 hours. f) Accidents involving damage by contact with animals or birds. g) Accidents involving physical damage, limited to and caused by flying gravel, missiles, or falling objects. h) Accidents occurring during the use of any auto in response to an emergency if the operator at the time of the accident was responding to a call to duty as 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 emergency situation ceases or after the private passenger auto ceases to be used in response to such emergency. i) The accident occurred as a result of the operation of an automobile under circumstances requiring licensing as a chauffeur. j) Insured or other driver residing in the same household, receives payment under Personal Injury Protection where such individual is not at fault. QBE North America Companies 05/2017

15 Utah Automobile 14 Driving Record (continued) Assignment of Driving Record Points 1) To determine if the accident or violation took place in the chargeable period, use the occurrence date (loss date is used for accidents). 2) If an occurrence results in multiple violations or accidents, the driving incident points for that occurrence will be based on the violation or accident with the highest point charge. Enter all violations/accidents; the rating logic will properly assign them. Driving Record Surcharges Please enter all moving violations and accident information for each driver. Our quoting system will automatically assign applicable points. Points will be applied in the rating of the policy, both at inception and at each renewal. Points are assigned to the driver as follows: Driving Record Point assignment Points Classification / Incident Description 1 st 2nd & Occurrence Subsequent ACCIDENTS (Dollar values represent all paid losses at time of assessment) At-fault Accident up to $1, At-fault Accident $1,501 to $3, At-fault Accident $3,001 to $10, At-fault Accident $10,001 to $50, At-fault Accident greater than $50, Not At-Fault Accidents (Including Uninsured Motorists) 0 0 VIOLATION GROUPS Alcohol-Related Violations 3 4 Foreign Driver s License 6 6 Incidents Nonchargeable (Comprehensive Claims) 0 0 Major Speeding Violations (Speeding 20+ mph over speed 3 4 limit) Major Violations (Drv while Susp, Reckless Drv, etc.) 4 5 Minor Violations (Improper Turn, Failure to Yield, etc.) 1 3 Non-Moving Violations (License, Safety Violations) 0 3 Speeding Violations (Speeding <20 mph over speed limit) 1 3 Unverifiable Driving Record 6 6 We will not charge any points for non-moving violations, non-chargeable incidents or not at-fault accidents. QBE North America Companies 05/2017

16 Utah Automobile 15 Coverage Options Liability Coverage Chart of available coverages and limits for all Programs. Coverage Bodily Injury Liability Limits (split limits) (in thousands) Property Damage Liability Limits (split limits) Combined Single Limits of Liability Personal Injury Protection Available Limits $ 50/ / /500 $ 25,000 50, , ,000 $ 100, , ,000 $3,000 Medical Expenses $250 Work Loss Per Week $5,000 Medical Expenses $300 Work Loss Per Week $10,000 Medical Expenses $350 Work Loss Per Week Description QBE s minimum limit is $50,000 per person/$100,000 per accident for Bodily Injury and $25,000 Property Damage per accident. Higher limits are available. All vehicles on one policy must have the same limits. Combined Single Limits (CSL) is a single limit of liability that applies to Bodily Injury and Property Damage with no per person or Property Damage sub-limit. Uninsured and Underinsured Motorist are not included in CSL but may be purchased separately. All vehicles on one policy must have the same limits. Any motor vehicle, except a motorcycle or a trailer, which is required to be registered in Utah and is rated in accordance with this manual will be provided Liability and Personal Injury Protection as prescribed in the Utah No-Fault Law. Exclusion of Loss of Income Benefit: Every insurer providing PIP coverage to a named insured shall make available to such named insured the option to exclude the loss of income benefit, provided that named insured states in writing that: a) within 31 days of applying for PIP coverage, or 31 days prior to the renewal of PIP coverage, neither the named insured nor the spouse of the named insured received any earned income from regular employment; and b) for at least 180 days from the date PIP coverage becomes effective neither the named insured nor the spouse of the named insured will receive earned income from regular employment. The Personal Injury Protection premium will be reduced accordingly. Use Notice and Waiver of Loss of Income Benefit form. QBE North America Companies 05/2017

17 Utah Automobile 16 Coverage Options (continued) Liability Coverage (continued) Excess Medical Payments Coverage $ 3,000 5,000 10,000 Uninsured Motorist Bodily Injury (UMBI) Liability Limits (split limits) (in thousands) $ 50/ / /500 Medical Payments (Med Pay) limits apply to each person, for each accident. If coverage is selected, all vehicles on one policy must have the same Med Pay limits. Uninsured Motorist Bodily Injury Coverage must be provided for every motor vehicle registered or principally garaged in Utah and at limits equal to the lesser of: (1) The single limit bodily injury liability or split limit bodily injury liability limits in the policy; or (2) The maximum uninsured motorists limits made available by QBE. Exceptions: The named insured may: (1) Reject such coverage; or (2) Select lower limits, but not less than the financial responsibility limits. Such rejection of coverage or selection of lower limits must be in writing on a form provided by QBE which discloses the additional premium required to purchase Uninsured Motorist Coverage at the lesser of: (1) The single limit bodily injury liability or split limit bodily injury liability limits in the policy; or (2) The maximum uninsured motorist limits made available by QBE. The form must also provide an explanation of the purpose of Uninsured Motorist Coverage. Note: The minimum limits we offer for Uninsured Motorist Bodily Injury Liability is Split Limit of $50,000/$100,000 or Single Limit of $100,000. Note: If this form of insurance is purchased, it must apply to all vehicles on the policy. Subsequent renewal policies issued by the same insurer need not provide the rejected coverage or increased limits unless the named insured requests such coverage in writing. QBE North America Companies 05/2017

18 Utah Automobile 17 Coverage Options (continued) Liability Coverage (continued) Underinsured Motorist Bodily Injury Liability (UIMBI) Limits (split limits) (in thousands) Uninsured Motorist Bodily Injury Liability (UM BI) Limits (combined single limit) Underinsured Motorist Bodily Injury Liability (UIM BI) Limits (combined single limit) Uninsured Motorist Property Damage (UMPD) Limits $ 50/ / /500 $ 100, , ,000 $ 100, , ,000 This form of insurance must be provided on every FlexAuto liability policy insuring the owner of a motor vehicle registered or principally garaged in Utah and at limits equal to the lesser of: (1) The single limit bodily injury liability or split limit bodily injury liability limits in the policy; or (2) The maximum underinsured motorist limits made available by QBE. Exceptions: The named insured may: (1) Reject such coverage; or (2) Select lower limits, but not less than the financial responsibility limits. Note: The minimum limits we offer for Underinsured Motorist Bodily Injury Liability is Split Limit of $50,000/$100,000 or Single Limit of $100,000. Note: If this form of insurance is purchased, it must apply to all vehicles on the policy. Subsequent renewal policies issued by the same insurer need not provide the rejected coverage or increased limits unless the named insured requests such coverage in writing. UM BI Combined Single Limits (CSL) is a single limit of liability that applies to UM BI with no per person sub-limit. UM BI CSL is only available a corresponding CSL Liability limit. UIM BI Combined Single Limits (CSL) is a single limit of liability that applies to UIM BI with no per person sub-limit. UIM BI CSL is only available a corresponding CSL Liability limit. $ 3,500 Uninsured Motorist Property Damage Coverage will be offered to every FlexAuto liability policy delivered to the owner of a motor vehicle registered or principally garaged in Utah to which collision coverage is not afforded. Uninsured Motorist Bodily Injury must be carried if Uninsured Motorist Property Damage is to be provided. Limit: (1)The limit for Uninsured Motorists Property Damage Coverage is $3,500 or the covered vehicle s actual cash value, whichever is less. Compensation for loss of use of the motor vehicle is not included. (2)Uninsured Motorists Property Damage Coverage is subject to a $250 deductible. QBE North America Companies 05/2017

19 Utah Automobile 18 Coverage Options (continued) Physical Damage Coverage Comprehensive and Collision Coverage Comprehensive as used in this manual refers to Other Than Collision damage to a motor vehicle. Collision is not offered without Comprehensive. Physical Damage Comprehensive Deductibles Collision Deductibles Deductible Options $ 250 $ 500 $ 750 $1000 $1500 $2500 $ 500 $ 750 $1000 $1500 $2500 overage Options (continued)overage Options (continued) The number of vehicles on the policy with Physical Damage coverage is counted, and based on the number of vehicles with the coverage, a rating factor is applied. Optional Physical Damage Coverage Descriptions Auto Loan/Lease Coverage Auto Loan/Lease coverage is available for private passenger autos, pickups, SUVs or vans on which the insured has a loan through a financial institution or a lease agreement. In the event of a total loss, coverage would be provided for the outstanding indebtedness between the loan or lease agreement and the actual cash value. Comprehensive and Collision coverage must apply to the vehicle. Excess Electronic Equipment Coverage This coverage may only be written in conjunction with Comprehensive coverage. Electronic equipment that reproduces, receives, or transmits audio, visual or data signals which is permanently installed by the original vehicle manufacturer in the vehicle at the time of loss, is automatically covered under the policy, without an additional premium charge. QBE North America Companies 05/2017

20 Utah Automobile 19 Coverage Options (continued) Such equipment includes, but is not limited to: a. Radios and stereos; b. Tape decks; c. Compact disk systems; d. Navigation systems; e. Internet access systems; f. Personal computers; g. Video entertainment systems; h. Telephones; i. Televisions; j. Two-way mobile radios; k. Scanners, or citizen band radios. However, electronic equipment that is not installed by the original automobile manufacturer, and is permanently installed in the vehicle is subject to a sublimit of $1,000. This sublimit may be increased. Higher limits are available up to a maximum of $5,000. Note: Coverage is Not Provided on an agreed value basis. This amount shown in the Schedule or in the Declarations is not necessarily the amount paid at the time of loss or damage for the described property. Please refer to the policy, any attached endorsements and Declarations for complete information on the coverage and limits provided. Custom Parts And Equipment Increased limits This option for increased limits is available if the auto, pickup or van is insured for Comprehensive and Collision coverage. The policy provides up to $1000 for coverage for parts, equipment, devices, accessories, paint decals, finish and enhancements, that are not installed by or available from the original vehicle manufacturer or original new car dealer. The policy limit may be increased for all such custom parts, equipment, devices, etc. Custom parts or equipment does not include electronic equipment and accessories designed for the reproduction of sound. Some examples of custom parts or equipment are: a) components of a van that has been modified to assist or accommodate the handicapped; or b) custom wheels and paint jobs. Higher limits are available up to a maximum of $20,000. Note: Coverage is Not Provided on an agreed value basis. This amount shown in the Schedule or in the Declarations is not necessarily the amount paid at the time of loss or damage for the described property. Please refer to the policy, any attached endorsements and Declarations for complete information on the coverage and limits provided.

21 Utah Automobile 20 Coverage Options (continued) Transportation Expense $30 per day/$900 maximum (Included in Comprehensive Premium) Higher Options Available $50 per day/$1,500 maximum Towing And Roadside Assistance This optional coverage pays for all reasonable expenses each time a covered auto, other than a motor home, is disabled. It may only be written when Comprehensive coverage is also provided. Limit Per Vehicle $300 per disablement For motor homes, Towing and Roadside Assistance coverage is available for an additional premium. This coverage pays up to $400 for reasonable expenses each time a covered motor home is disabled. This coverage may be written only when Comprehensive coverage is provided. Other Coverage Options Extended Non-Owned Liability Coverage Liability and Medical Payments coverage is provided for use of any non-owned auto by the insured named in the policy, the spouse if a resident of the same household, or a resident relative who is furnished an auto for regular use. Extended Non-Owner coverage is not available to persons employed by a garage. The following options are available to the Named Insured or relative living in the same household: No underlying insurance for Named Insured and relative; Underlying insurance for Named insured; Underlying insurance for relative. Please provide complete information regarding: The company name and policy number for the underlying policy covering the Named Insured or relative; The type of vehicle the insured usually drives; Usage of vehicle; All drivers in household. QBE North America Companies 02/2017

22 Utah Automobile 21 Discounts Defensive Driver Discount This discount applies if the qualified driver is the rated driver of the vehicle and the following conditions are met: a. the principal operator of the vehicle is age 55 or older; b. has a completion certificate, dated within the most recent 36 months, certifying that he or she has successfully completed a motor vehicle accident prevention course approved by the Idaho Transportation Department; and c. during the most recent 36 months has not been: (1) involved in an at-fault accident, or (2) convicted of, pleaded guilty or nolo contendere to, a moving traffic violation for which points may be assigned against the insured s drivers license. This discount will apply: a. to new and renewal policies with inception dates within the 24 month period following the course completion date. b. only to the vehicle principally operated by the insured with the course completion certificate; and c. only once to each such vehicle regardless of the number of operators with course completion certificates. This discount does not apply if the insured is taking the course as a penalty, imposed by a court or other governmental entity, resulting from a moving traffic violation. Incident Free Factor When a driver is at least 17 years old and has been without an incident, as defined above, for more than 12 months the Incident Free Factor will be applied to the rated driver s rate. Good Student Discount A. The applicable Good Student Classification applies provided: 1. The owner or operator is: a. at least 15 years of age and under 25 years of age; and b. a full-time high school student, community college student, four year college or university student; or c. a graduate of an accredited community college or four year college or university in the United States or Canada. 2. A copy of a grade report or a certified statement from a school official is presented to QBE indicating that the student has met at least one of the following requirements during the immediately preceding school semester or quarter: a. is in the upper 20% of his/her class scholastically; or b. maintains a B average, or its equivalent. If the letter grading system cannot be averaged, then no grade can be below B ; or c. when in 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; or e. showing a degree has been conferred upon the insured from an accredited community college or four year college or university; or

23 Utah Automobile 22 Discounts (continued) B. Continued eligibility for this classification is based upon the following: 1. The owner or operator receiving the good student discount classification provides continued proof of eligibility, upon request from QBE, by providing a certified statement as outlined in part A.2. above. 2. Once an insured or operator has provided proof of eligibility as a college graduate, no further proof is needed. 3. The driver does not require an SR-22. Note: The discount is removed on the renewal after the insured reaches age 25. Multi-Policy Discount A Multi-Policy Discount is applied if the primary named insured or the resident spouse, or resident domestic partner legally recognized under Utah law, of the primary named insured is also a primary named insured on a homeowners, condo, renters or Umbrella policy written with us, or affiliates of our parent company QBE Americas, Inc. The discount does not apply to minors residing in the parent s household unless the parent is listed on the policy as a Primary Named Insured. Newer Vehicle Credit A newer vehicle credit may be applied to the most current model year vehicles on the policy, provided the vehicle is less than three (3) model years old, as determined by QBE and based on the rating date and the QBE vehicle age threshold date. The discount will automatically be removed after the appropriate amount of time. The discount is available on the following vehicle types: Auto/Pickup/SUV/Van. The discount will apply to only Collision and Comprehensive coverage options. Paid In Full A discount will be applied when the policy premium is paid in full at the beginning of the policy term. The discount will not apply when a policy lapses and is reinstated. The discount will be removed if the payment is returned for non-sufficient funds. Proactive Customer This discount is applied when the initial quote is started eight days or more in advance of the prior policy end date and there has not been a lapse in coverage. The primary named insured must be 19 or older. It is considered a quote after we have ordered the insurance bureau score. If the quote becomes older than 90 days before it is issued as a policy, we will reorder the insurance bureau score and the time period for Proactive will restart effective the date of the insurance bureau score. This Discount will drop off the policy after three policy renewals. This discount will not apply if the policy has been re-written, prior carrier is a QBE company and a rewrite status has been applied. QBE North America Companies 05/2017

24 Utah Automobile 23 Discounts (continued) Professional Group Discount A. A named insured, spouse or domestic partner legally recognized under Utah law, who is working full time in one of the professional groups listed below may be eligible for a Professional Group Discount. The discount is automatically applied to the final premium for all coverages. B. Eligible Groups: 1. Engineering and Architecture Below are examples of qualifying occupations: Aerospace Engineer Engineering Assistant/Technician Architect Management of Engineering Technical Staff Chemical Engineer Mechanical Engineer Drafter Structural Engineer 2. Science Below are examples of qualifying occupations: Biochemist Mathematician Chemist Statistician Criminologist 3. Health Care Below are examples of qualifying occupations: Chiropractor Optometrist Dentist Orthodontist Health Care Administrator Pharmacist Licensed Practical Nurse Physician s Assistant Medical Doctor/Physician Psychiatrist/Psychologist Medical or Dental Technician Registered Nurse 4. Legal Below are examples of qualifying occupations: Attorney/Lawyer Judge 5. Technology Below are examples of qualifying occupations: Computer Scientist Project Manager Designer Tech/Indust/Engineer Software Analyst or Engineer Management of Technical Staff Systems Security Military Officer Technical Writer Network Engineer/Administrator Urban/Regional Planner Programmer Webmaster/Website Designer

25 Utah Automobile 24 Discounts (continued) 6. Education Insured must be a currently employed, full-time, educator or on the support staff of a public or private K-12 school or accredited college. Below are examples of qualifying occupations: Audiologist Teacher Dean School Counselor Librarian School Custodian Principal School Psychologist Professor School Speech Therapist All eligible insureds must be employees of the educational district or private school. Employees of independent contractors are not eligible. An example is a bus driver employed by Laidlaw Transit or other similar organization. Eligible colleges include accredited public and private four year colleges and community colleges. Also, the staff of career schools and colleges of technology, that are accredited by the Accrediting Commission of Career Schools and Colleges are eligible. Eligibility does not extend to part-time employees, volunteers or home school teachers. Also, staff of schools not accredited by one of the associations outlined above, are not eligible. Examples may include beauty schools, broadcasting schools and Montessori schools. C. Eligibility Rules 1. Insured must be an employed full-time or member in good standing of the profession. 2. The discount applies to the policy of the professional. 3. All current underwriting rules for our Auto program apply. There are no special underwriting rules for the Professional Group Discount. 4. Because the discount applies only to the professional s policy, new policies created for other household members are issued without the discount. The discount is not applicable when: a. A member of the household moves away and he or she is issued a separate policy. b. A new policy for anyone other than the professional is issued. Note: We do not non-renew when an insured is no longer eligible for the discount. Either the discount is removed, or a new, non-discounted policy is issued. D. Premium Determination 1. The discount will be applied to the auto policy premium and all additional premiums. 2. Only one Professional Group Discount may be applied to an individual s policy.

26 Utah Automobile 25 Discounts (continued) Student Away at School A youthful driver under age 25, who is a child of the named insured, will be given a discount if the following conditions are met: a. The student resides at an educational institution over 100 road miles from the auto s place of principal garaging: and b. The student does not have regular access to a covered vehicle while away at school. Employee Discount An employee or retiree of QBE the Americas who is qualified to purchase an auto policy is eligible for an Employee Discount. The discount is a flat deviation from QBE s base rates. Eligibility Rules 1. The insured must be a current employee or a retiree of QBE the Americas. 2. The discount applies to the policy of the employee or retiree. All autos on the policy receive the discount. 3. All current underwriting rules for QBE Personal Auto coverage apply. There are no special underwriting rules for the Employee Discount.

27 Utah Automobile 26 Miscellaneous Vehicles Antique Automobiles An antique automobile is a private passenger type vehicle 25 or more years old that has been restored, maintained or preserved. It is used on a limited basis for use in exhibitions, club activities, parades or other similar functions. Antiques are eligible for the same limits and coverages as other autos but Antiques must have Comprehensive coverage. Our limit of liability for a partial loss will be the lesser of the: a. Actual cash value of the stolen or damaged property: or b. Amount necessary to repair or replace the property; or c. Maximum limit of liability shown in the Declarations. Our limit of liability for a total loss will be the amount shown for each Antique auto in the Declarations which is agreed to be the value of the covered auto. Trailers and Campers We offer coverage for utility trailers, recreational trailers and horse trailers that are designed to be towed by and used with a private passenger automobile, pickup, SUV or van. We also offer coverage for Mounted Campers with this vehicle type. Coverage is not provided for a trailer or camper: a. Used for business purposes with other than a private passenger auto or owned pickup or van b. When no auto is owned by the insured; c. Located for use as a residence premises. Trailers and campers must be insured as separate items with separate premiums shown for each. The deductible applies separately to each trailer or camper. The following deductible options are available for trailers: Comprehensive: $50, and $100 Collision: $100, $200, and $250 Recreational Trailers are defined as non-self propelled recreational units equipped with living quarters (including cooking, dining, plumbing, and/or refrigeration facilities). To be eligible for coverage, the insured must maintain a separate and permanent residence other than the recreational trailer. Recreational trailers used as secondary residences are not eligible for coverage under a Personal Auto Policy. Note: Coverage is not provided on an agreed value basis. The amount shown in the Declarations is not necessarily the amount paid at the time of loss or damage for the described property. Please refer to the policy, any attached endorsements and the Declarations for complete information about the coverages and limits provided. Covered Property Coverage Coverage is extended to cover awnings and cabanas, or equipment designed to create additional living facilities, at no additional charge when physical damage coverage is provided on the recreational trailer. The value of these items must be added to the value of the recreational trailer to develop the total amount of insurance. The same deductible applies.