CALIFORNIA AUTOMOBILE LIABILITY AND PHYSICAL DAMAGE INSURANCE

Transcription

1 CALIFORNIA AUTOMOBILE LIABILITY AND PHYSICAL DAMAGE INSURANCE Underwriting & Rating Manual OFFERED BY: Insurance Services, Inc. P. O. Box 5081 San Ramon, CA (925) (800) (925) FAX Website: Uwww.cencalins.comU EFFECTIVE: APRIL 1, 2007 Underwritten By: Delos Insurance Company

2 CenCal Insurance Services, Inc. Underwritten By DELOS INSURANCE COMPANY CALIFORNIA Automobile Liability and Physical Damage Program (Nation Safe Driver Program) RATE AND PRODUCT GUIDE SUBJECT TABLE OF CONTENTS PAGE NUMBER(S) I. FOCUS Overview.. 3 Eligibility 3 Coverages Offered. 3 II. III. IV. UNACCEPTABLE RISKS Unacceptable Risks.. 4 Unacceptable Vehicles Unacceptable Use of Vehicle 5 Unacceptable Drivers... 5 UNDERWRITING GUIDELINES Driving Record & Driving Experience.. 6 NEW BUSINESS New Business New Business Applications.. 7 Endorsements... 8 V. PAYMENT PLANS General. 8 Payment Plans.. 9 Service Charges. 9 VI. VII. VIII. GENERAL Policy Terms 9 Renewals.. 9 Vehicle Inspections.. 9 Financial Responsibility Filings Commission Coverages CANCELLATIONS/NONRENEWALS Cancellation. 12 Nonrenewal.. 12 ACCIDENTS AND VIOLATIONS General.. 13 Accidents Minor Violations 14 Major Violations 14 2

3 IX. DISCOUNTS, FACTORS AND SURCHARGES Good Driver Discount.. 14 Mature Driver Discount 15 Multi-Car Discount 15 Persistency Factor.. 15 X. RATING PROCEDURES General Information. 15 Deductible Options.. 16 Marital Status Point Count Factors.. 16 Point Class Reductions Physical Damage Rating.. 16 Surcharged Vehicles Y. CLAIM INFORMATION Claim Information X. CUSTOMER SERVICE INFORMATION Customer Service Information. 17 3

4 I. SUMMARY CenCal Insurance Services, Inc. Underwritten By DELOS INSURANCE COMPANY CALIFORNIA Automobile Liability and Physical Damage Program (Nation Safe Drivers Program) RATE AND PRODUCT GUIDE IMPORTANT NOTICE To the extent the operation of these rules would deny coverage to a Good Driver, as defined by law, these rules shall not apply. This program is offered only to members of the Nation Safe Drivers Roadside assistance group. This policy is a restrictive policy with many coverage limitations including but not limited to unlisted drivers please check the policy language for a full listing of coverage limitations and restrictions. ELIGIBILITY Vehicles used for pleasure and commuting use private passenger automobiles which are owned by or leased to the insured and garaged in California are eligible for this program. Vehicles with commercial usage are unacceptable and should be placed in a commercial auto program. COVERAGES OFFERED The following is a complete list of available coverage limits and deductibles offered at this time. Please see COVERAGES section for specifics regarding coverage combinations and requirements. Bodily Injury Liability Limits $15,000/$30,000 Medical Payments Limits (Coverage is excess over any other medical insurance or coverage) $500 Uninsured Motorist Protection Limits $15,000/$30,000 Rental Reimbursement Must carry Comprehensive and Collision Coverage. Transportation expense reimbursement for $20/day for up to 20 days Property Damage Liability Limits $5,000. $10,000. Comprehensive and Collision Subject to the following deductible options and limited to a maximum of $40,000 per loss on an ACV basis. Comprehensive and Collision Coverage must be sold together. $ 500 $ 1,000 Uninsured Motorist Property Damage Limit - $3,500 Collision Deductible Waiver Available for each of the Collision Deductible options offered Lienholder Deductibles Regardless of the deductible option selected, the following deductibles shall apply to the lienholder s interest. Comprehensive...$250 Collision...$250 Additional Equipment Coverage is provided at an additional cost for non-standard equipment items. Comprehensive and Collision coverage must also be carried. Maximum combined value - $

5 II. UNACCEPTABLE RISKS UNACCEPTABLE AND REFER TO COMPANY RISKS Those risks listed as Refer to Company are subject to underwriter approval and are not to be submitted unless an underwriter has given prior approval. Risks listed as Unacceptable are never to be submitted. If you have any questions or doubts always contact underwriting prior to submitting any risk. UNACCEPTABLE RISKS IMPORTANT NOTICE To the extent the operation of these rules would deny coverage to a Good Driver, as defined by law, these rules shall not apply. 1. Any former policyholder who: A. Has an unpaid balance due, or B. Has had coverage canceled and rewritten and/or reinstated with a lapse more than two times (or has had three or more late payments), or C. Has had coverage canceled or nonrenewed because of losses or driving record. 2. Policies financed through an outside premium finance company are unacceptable. 3. Policies with Estates, Trusts, Receiverships, Corporations or Partnerships as the Named Insured. Policies listing vehicles that are not registered to the named insured, unless the vehicle is leased. 4. Policies listing vehicles from more than one household/residence on a single policy. 5. Risks without a garaging address. 6. Any rewrite of a prior policyholder must be pre-approved by Underwriting 7. Brokers, their employees and immediate family members are unacceptable. UNACCEPTABLE VEHICLES IMPORTANT NOTICE To the extent the operation of these rules would deny coverage to a Good Driver, as defined by law, these rules shall not apply. 1. This list may not be complete at all times. If you have any doubt, please check with your underwriter: Acura NSX Cobra Pantera Lotus Aston Martin Delorean Facel II Maserati Austin Cooper Dual Ghia Ferrari Mustang GT Avanti Eclipse Lamborghini Porsche (except 914) Bentley Escalade Lancia Scorpion Rolls Royce BMW M6 Lola Viper 2. Pickups and vans in excess of one (1) ton load capacity or any vehicle with a gross vehicle weight greater than 10,000 lbs. 3. Commercial vehicle types such as flatbed or stake-bed vehicles, step or panel vans, 12 or 15 passenger vans or similar vans designed or meant for commercial transportation and vehicles registered to a commercial entity. Any vehicle used to transport people, deliver any goods, materials, foods or services are always unacceptable. 4. Any vehicle not registered to and owned by the named insured, except leased vehicles and garaged in California at least 11 months of the year. All vehicles must be kept with the named insured or a listed driver at the address indicated. 5. All non-owned vehicles. 6. Motorcycles, Motor Homes, Travel Trailers and Pickup Campers. 7. Kit cars, classic and antique vehicles. 8. Baja or dune buggies. 5

6 9. Vehicles with more than $1,000 in pre-existing damage. 10. Vehicles not in safe mechanical condition. 11. Custom, rebuilt, altered, modified and specially built vehicles, any vehicle with altered suspension (raised or lowered from factory design) or vehicles with more than $500 of additional equipment. 12. Vehicles with a symbol value above 21 (1990 & newer models) or symbol 17 ( models) and all vehicles with a cost new above $40,000 for comprehensive and collision coverages. 13. Any vehicle with a current market value in excess of its ISO symbol value. 14. Any vehicle with Additional Equipment or accessories with a cost new over $ Any vehicle which is: Fifteen (15) years old or older with Physical Damage Coverage (producer photos required). Twenty-five (25) years old or older for liability coverages (producer photos required). UNACCEPTABLE USE OF VEHICLE IMPORTANT NOTICE To the extent the operation of these rules would deny coverage to a Good Driver, as defined by law, these rules shall not apply. 1. Commercial vehicles, vehicles registered to a business or corporation, vehicles used for livery or hauling, and vehicles which regularly transport clients/customers are ineligible. Any vehicle used commercially is unacceptable. Examples of ineligible occupations are courier services, and any food or newspaper delivery. 2. Vehicle used for racing or speed contests (professional or amateur). 3. Emergency or law enforcement (including volunteer status). 4. Mail/parcel post delivery, retail food and beverage delivery, and messengers or courier service. 5. News dealers, including newspaper delivery and distribution. 6. Any public or private livery transportation (limousines, taxis, buses or vanpools). 7. Transporting nursery or school children, transporting elder care or other medical patients for hire or business. 8. Short-term or long-term rentals. UNACCEPTABLE DRIVERS IMPORTANT NOTICE To the extent the operation of these rules would deny coverage to a Good Driver, as defined by law, these rules shall not apply. 1. Any driver with a suspended or revoked drivers license, unless an SR22 Filing in conjunction with the issuance of the policy will reinstate driving privileges. Drivers with licenses suspended/expired for more than two of the previous five years will be unacceptable. 2. Any driver with a felony narcotics or drug conviction involving a motor vehicle regardless of the citation date. 3. Any driver with a felony vehicular conviction, hit and run or vehicle theft cite is always unacceptable. 4. Any driver with two (2) or more at fault accidents in the past five (5) years. 5. Any driver with two (2) or more major violations in the past five (5) years or three (3) or more in the past 7 years. 6. Persons not physically in California at least 11 months of the year. 7. Any student or military personnel attending school or stationed outside of California. 8. Seventy (70) years of age or older. 9. Any driver who is suffering from epilepsy, narcolepsy or any other physical condition which can result in blackouts or seizures. 10. Any rewrite of a prior policyholder must be pre-approved by Underwriting. 11. A valid California license is requested; however international and Mexico licenses are acceptable. 6

7 III. UNDERWRITING GUIDELINES Unless otherwise noted, guidelines apply to driving activity within the past three years. DRIVING RECORD GUIDES YEARS DRIVING EXPERIENCE NAMED INSURED MUST BE AT LEAST 20 YEARS OLD, (OTHER THAN GOOD DRIVER APPLICANTS). 0 3 years UNACCEPTABLE-unless California Good Driver. 4-5 years No more than two minor violations. Accident or major is unacceptable. ALL DRIVERS (INCLUDING NAMED INSURED) 6 8 No more than three (3) incidents of a combination of at fault accidents, major and minor violations. 9+ No more than four (4) incidents of a combination of minors, majors and at fault accidents. Note: Two (2) at-fault accidents or two (2) majors in the past five (5) years are UNACCEPTABLE. Risks having drivers with felony vehicular convictions, hit and run or vehicle theft cites are always unacceptable. Number of years of driving experience for qualification purposes is considered the number of verifiable continuous years that the driver has been licensed to drive in any jurisdiction. If a license is suspended or expired or otherwise invalid/unverifiable for one year or more the amount of driving experience will be adjusted accordingly. IV. New Business 1. CenCal Insurance Services, Inc., may accept risks which are in compliance with the underwriting guidelines and in which the application is fully completed and electronically transmitted with the appropriate premium (sweep) payment. All applications must contain the date and time of completion, current (within 30 days) Motor Vehicle report and be signed by both the APPLICANT AND THE PRODUCER. Producers are required to electronically transmit every application to us using the CenCal Interactive system. (The system will provide you with a complete application, all required forms /documents, and a confirmation of the date and time the application is transmitted.) The producer is required to have all pages completed and signed prior to the named insured leaving their office. Do not transmit an application to us where you did not obtain a completed application and all required paperwork (including down payment). Brokers utilizing the CenCal Interactive system must refer to the Records Maintenance Agreement for record retention. Coverage will become effective on the date and time captured within the system at the time of the transaction (real time). 2. No coverage is effective prior to the completion of the application, payment of premium and the effective date shown on the declaration page. 3. Do not submit coverage in excess of the limits shown in this rate guide. 4. Coverage will only be granted in accordance with the guidelines stated herein. 5. If coverage is to be effective at a later date, please indicate the date clearly and attach proper payment, made payable to Delos Insurance Company, plus fully earned policy fee. Policies can be made effective up to 30 days in advance. 7

8 6. Prior to requesting coverage, the broker must inspect all vehicles, regardless of coverage, and attest to having done so on the application. This is to verify: a. vehicle(s) being insured via confirmation of the correct VIN number; b. vehicles are not modified or altered or otherwise prohibited; c. presence of any existing damage; d. vehicle is roadworthy, that all lights are intact and glass is not cracked, causing impairment of visibility; e. presence of any special equipment. 7. Photos Required: a. Physical Damage Coverage: Two clear photos showing all four sides of the vehicle plus a completed vehicle inspection form with each submission. On brand new and previously unused vehicles, a sales contract showing retail delivery date within 24 hours of requested effective date may be submitted in lieu of photographs. b. Liability Coverage: Photographs are also required on all pickups, vans, and any acceptable salvaged vehicle, regardless of age or coverage. NOTE: Producer must warrant that all photographs, including digital, were taken at the time the application for said insurance coverage was requested. Photos must be immediately faxed ( (fax) or ed to CenCal Insurance Services at Info@cencalins.com NOTE: If the application is received in our office without photos or proof of insurable interest, the policy is subject to cancellation or rescission. B. New Business Applications and Policy Issuance In order for us to process your applications promptly and correctly, please be certain the following information is COMPLETE and LEGIBLE on the application: 1. All members in the household aged 14 years and over and all operators of the vehicle(s) and their correct driver's license number(s). Include a copy of the driver's license(s) for all drivers listed on the application. Note: This policy contains restrictions as to applicable coverage and limits for operators not named on the application. Please review the policy carefully! 2. All Drivers must hold a valid driver's license, unless they are active military personnel who hold a valid out of state license and are living in California. New residents in the State of California are required by the Department of Motor Vehicles to obtain a California license within ten (10) days of establishing residency. 3. Signed exclusions as appropriate. 1. You can exclude: a. A spouse, if not the sole registered owner of the insured automobile. b. A registered owner, as long as not the sole registered owner, who is not in our insured's household and who does not drive the vehicle. c. Other members in the household. 2. The named insured must sign the Driver Exclusion on the Delos application. 3. To delete an exclusion we require; a. A request signed by the named insured to add the excluded driver to the policy, and b. All the appropriate driver information. 4. Information concerning spouse even if not a licensed driver. 5. Complete vehicle identification number(s). 6. Coverages selected with premium amount. 7. Uninsured Motorist Bodily Injury and Uninsured Motorist Property Damage coverage waivers if appropriate. 8. Insured's work and home phone numbers. 9. Occupation, employer and work address. 10. Total estimated annual mileage and odometer reading. Annual Mileage Statement on application must be completed and signed. 11. The maximum number of vehicles per policy is limited to four (4). Use additional application for vehicle information. 8

9 12. The applicant and/or applicant's spouse must be the registered owner of all vehicles on the policy. To confirm insurable interest, include a copy of one of the following: Valid California vehicle registration; purchase contract/sales agreement; lien release showing applicant as registered owner; copy of the title endorsed by prior owner showing applicant as purchaser that is not more than 30 days old. 13. Any risk which includes an applicant with a physical handicap as defined in section of the CIC, must fully disclose the status of the impairment and provide confirmation that the vehicle to be insured has been modified to accommodate the nature of that impairment. ENDORSEMENTS 1. Changes in the form of increased (or additional) coverage, additional drivers or additional vehicles, must be made via FAX or for an immediate effective date; otherwise they will be processed effective the day after the postmark or our receipt date. 2. Requests for future date changes can be made by mail, provided that the postmark date precedes the requested effective date. 3. Requests to reduce or delete coverage must be signed by the insured. These changes will be made effective the document request date provided that it is postmarked within three (3) days of the request. Requests to increase (lower deductibles) or add physical damage coverage require 2 photos of the vehicle prior to submitting. 4. There will be a $7.00 ($5.60 FOR GOOD DRIVER APPLICANTS) processing fee on all premium changing endorsements, except for endorsements due to broker or company error. CHANGE OF VEHICLE The Company must be notified immediately of additional or replacement vehicle(s). No coverage is bound until received in writing and approved by the company. TERRITORY CHANGES 1. The company must be notified within thirty (30) days of a change in territory. Premium adjustments resulting from a change in territory will be made on a prorate basis. 2. The company must be notified immediately if the insured moves out of state the policy will be cancelled with appropriate notice sent. V. PAYMENT PLANS 1. New policies may be written for annual or semi-annual terms with monthly or quarterly installment options. 2. Premium payment requirements: a. Semi-Annual and Annual Bill payment terms must be submitted with gross premium, plus fully earned policy fees. b. Direct Bill Installment Plans require full gross down payment premium plus fully earned fees. c. For those policies submitted via CenCal Interactive, EFT/ACH payment sweeps from the producer s accounts for premium payments or premium down payments are mandatory. Payments will be swept from the producer account within 24 hours. 3. Policy Fees and Rate Factors are as follows: Policy Term Payment Type Term Factor Policy Fee Semi-Annual 16.7% Down 5 Pay (Monthly) Printed Rate $24.00 (non-good driver) $19.00 (good driver) Semi-Annual 50% Down 1 Pay (Quarterly) Printed Rate $24.00 (non-good driver) $19.00 (good driver) Semi-Annual Printed Rate (Agency Bill) Printed Rate $24.00 (non-good driver) $19.00 (good driver) Annual (Agency Bill) 2 X Printed Rate $24.00 (non-good driver) $19.00 (good driver) 9

10 4. a. Direct Bill Installment plan policies are subject to a $13.00 service charge on all subsequent installment billings. b. Those accounts that have opted for the ACH/EFT pay plan, the month s service fee charge will be reduced to $6.00 on all subsequent installment billings. 5. Miscellaneous Fraud Fee - $2.00 per Policy 6. Renewal Fee - $24.00 non-good driver, $19.00 good driver 7. Reinstatement Fee with Lapse - $15.00 non-good driver, $12.00 good driver 8. Endorsement Fee Premium changing endorsement only - $7.00 non-good driver, $5.60 good driver 9. Applicant/Insured Non-Sufficient Funds Fee - $20.00 a. The $20.00 NONSUFFICIENT FUNDS charge will be applied on all dishonored checks. When a down payment check is dishonored (whether paid to us or the broker) on a new business or renewal policy, we will issue a Notice of Rescission on the policy. On installments and renewal bills, we will issue a Notice of Cancellation effective the original cancellation or due date. If any unearned premium is due, the $20.00 NSF charge will be deducted from the amount due the insured. 11. All fees are fully earned immediately upon issuance of policy. D. Direct Bill Payment Procedures a. New business policies for which premium must be uprated will be issued at the correct premium. b. Return premium and additional premium adjustments for endorsements will be calculated and billed over the remaining payments. c. Endorsements that require an additional premium will require a deposit of 25% of the total additional premiums. The remaining balance will be spread over the remaining billing payments or the policy term. d. An installment/cancellation billing will be mailed to the insured prior to the expiration of coverage. Instruct the insured to mail premium payments directly to CenCal Insurance Services made payable to Delos Insurance Company as the policy will be continued with no lapse in coverage only if the envelope containing the premium payment is received by the cancellation date. Payments for less than the amount billed may not be accepted and will be returned to the insured. e. If a lapse in coverage occurs, an SR-26, if applicable, will be sent to the DMV and the lienholder, if any, will be notified. f. If the payment is received within 15 days after the cancellation date, coverage may be reinstated with a lapse. Reinstatements will be effective at 12:01 A.M. on the date received in our office. g. A new application must be completed if the policy lapses for more than 15 days. h. Each month, the producer will receive a complete accounting of all policy transactions, including credit for commission on policies newly written or renewed. GENERAL 1. The company directly bills installments to the insured. 2. Outside premium financing of policies is prohibited. 3. Additional premium endorsements will be billed by the Company in accordance with the payment plan controlling the policy. 4. The Company will waive Return Premium charges up to $2.00, unless the refund is specifically requested by the insured. 5. Please do not front money for insureds. VI. GENERAL POLICY TERMS All policies may be written for either a six (6) or twelve (12) month term. Policy terms can not be changed subsequent to the issuance of a new policy or after issuance of a renewal policy. RENEWALS Approximately thirty (30) days prior to the policy expiration date, a renewal offer will be sent to the insured and producer. The insured must postmark the total renewal down payment prior to the due date to maintain coverage 10

11 and avoid a policy lapse. Subject to Company approval, policies may be renewed with lapse, subsequent to the receipt of the renewal payment, within the first twenty (20) days after the policy expiration date. VEHICLE INSPECTIONS We require a minimum of two vehicle photos (taken by the producer) in the following circumstances: 1. All vehicles with physical damage coverage. 2. Vehicles 25 years old or older regardless of coverage. 3. Requests to add physical damage coverage or lowering existing deductibles-photos always required. 4. All salvaged vehicles. Vehicles may be exempted from inspection when: The vehicle is a new and unused vehicle purchased or leased from a dealer, and we are provided with a copy of the bill of sale or purchase order or conditional sales contract (no more than 1 day old) that contains a full description of the vehicle, including all options and accessories, or a copy of the window sticker or dealer invoice showing manufacturer installed items. Handwritten sales contract is prohibited. FINANCIAL RESPONSIBILITY FILINGS There is a fully earned $20.00 fee per filing for each Financial Responsibility Filing. There is no commission paid on this fee. The Financial Responsibility Filing fee must be remitted Uin additionu to the down payment or total term premium. Filings may only be issued for California. The policy must carry Bodily Injury and Property Damage coverage. Owner s Filings may be issued for the named insured or spouse only. SR22 filings may be issued on non-owner policies for Named Insured Only. We must insure all vehicles registered to the named insured and spouse, and the person requiring the filing and their spouse. Filings will not be provided for any excluded drivers, non-residents or unrelated individuals. Broad Form filing will not be issued under this program. The original copy of the filing form goes to the insured or is sent directly to the DMV. Maintain one copy for your records and send one copy attached to the new business application. Please write the policy conversion number on the front of the application. COMMISSION Commissions are payable as set forth in the Delos Product Authorization Addendum, or by written notice from the Company. Please contact your Customer Service if you have any questions. COVERAGES GENERAL On multi-vehicle risks; Liability Limits, Medical Payment Limits and Uninsured Motorists Protection Limits UmustU be the same. BODILY INJURY AND PROPERTY DAMAGE LIABILITY The PD limit cannot exceed the BI aggregate limit. MEDICAL PAYMENTS COVERAGE Medical Payment Coverage is optional. NAMED NON-OWNER COVERAGE (Liability Coverage Only) 11

12 a. Named non-owner coverage is provided at.70 of the printed rate that applies to policies issued on an owned basis. b. Only one driver may be listed on each policy. c. Named non-owner coverage provides no coverage for permissive users or owned vehicles. (See non-owner supplemental application for additional restrictions.) Note: Delos Insurance Company cannot convert a non-owner s policy to an owner s policy. Therefore, a vehicle acquired by the insured cannot be added to an existing non-owner s policy. The existing non-owner s policy must be cancelled and a new application, including updated vehicle and driver information, must be submitted with all required premium and fees. UNINSURED MOTORIST COVERAGE BODILY INJURY UM coverage is optional. The UM limit cannot exceed the BI limit. UM can only be written on policies providing BI coverage. If UM coverage is not desired have the insured sign the appropriate Uninsured Motorist Coverage Waiver on the application. UNINSURED MOTORISTS - PROPERTY DAMAGE UMPD is optional. Available only if UM coverages apply to the policy and Comprehensive and Collision coverages are not on the vehicle. If UMPD coverage is not desired, have the insured sign the appropriate Agreement Deleting Uninsured Motorists Property Damage Coverage Waiver on the application. COLLISION DEDUCTIBLE WAIVER Collision Deductible Waiver (CDW) is optional. Available only if UM coverages apply on the policy and Comprehensive and Collision coverages apply to the vehicle. If CDW coverage is not desired, have the insured sign the appropriate Agreement Deleting Uninsured Motorists Collision Deductible Waiver on the application. PHYSICAL DAMAGE COVERAGE Comprehensive (CMP) and Collision (COL) coverages are optional. Comprehensive and Collision must be sold together. Physical damage coverage is not available for vehicles with no Lienholder unless one of the following applies: a. purchased from dealer within past 30 days (purchase order MUST accompany application), or, b. Copy of prior physical damage declarations showing expiration within 30 days of proposed effective date accompanies application. Regardless of the deductibles selected, the following deductibles will apply to the Lienholders interest: $250 Comprehensive and $250 Collision. All losses will be handled on an ACV basis subject to a limit of $40,000. RENTAL REIMBURSEMENT Rental Reimbursement is an optional coverage. To purchase this coverage, the insured must have Comprehensive and Collision coverage on the vehicle. Reimbursement is at $20 per day, for up to twenty (20) days. ADDITIONAL EQUIPMENT 12

13 Unless scheduled on the policy with a separate premium charge, certain types of equipment are either excluded from coverage or have limitations as to value placed upon both Comprehensive and Collision coverages. All acceptable Additional Equipment must be permanently attached to the insured vehicle. Any of the following items, their accessories or antennas is excluded unless: You include them in the application, or Tell us when they were added to the insured vehicle, and A premium is charged for them. 1. Awnings, cabanas; 2. Camper shells and custom enclosures for pickup trucks; 3. Chrome, alloy or magnesium wheels; 4. Citizens band or two-way mobile radios; 5. Custom bodywork; 6. Custom chroming; 7. Custom paint; 8. Custom wide-tread tires or racing slicks; 9. Scanning monitor devices; 10. Telephones and television sets; 11. Van conversion and interiors; 12. Tool boxes, storage bins and racks; 13. Bed liners. UNLESS DESCRIBED IN FULL AND THE PROPER PREMIUM IS APPLIED, THE ABOVE REFERENCED ITEMS WILL NOT BE COVERED. Rating Procedure: 1. Determine the value of the equipment. 2. Rate based on $6 per $100 of original value subject to all the available discounts. 3. Describe all items in full. 4. Maximum total equipment with a value in excess of $500 is unacceptable. VII. UCANCELLATIONS/NONRENEWALSU CANCELLATION GENERAL 1. No flat cancellations, except situations of duplicate coverage. Proof of duplicate coverage must be submitted with the request and the coverages, drivers, and vehicles must match exactly. Otherwise, coverage will be canceled from the postmark on the request. 2. Cancellations at the insured s request must be in writing. The effective dates of the cancellation may not be earlier than the postmark date on the request. 3. Cancellations at the Company s request will be prorated. 4. Cancellations for policies not accepted by the insured because of broker or Company error will be canceled prorated. 5. Cancellations because of total loss will be done only upon the receipt of the insured s signed request and will be processed effective the day after the loss. 6. New Business Down and Renewal Down Payments paid for with a dishonored payment will result in the coverage being rescinded and subject to the NSF Fee. Installment payments paid with a dishonored payment will lead to policy cancellation effective the original cancellation or due date. NONRENEWAL GENERAL If a condition exists on the policy for which a nonrenewal notice is indicated, this notice will be issued at least 30 days prior to the policy expiration. 13

14 MOVE OUT OF STATE When insured moves to another state during the policy period, we prefer to have the insured replace his policy with a company licensed in that state. We offer prorated cancellation in these cases. If our policy cannot be replaced mid-term, we will send a midterm cancellation or nonrenewal notice. VIII. ACCIDENTS AND VIOLATIONS GENERAL MVR s are ordered on every risk. Please encourage the applicant to fully disclose his or her driving record to avoid premium adjustments or cancellation/rescission. Use conviction date for rating purposes. Use the highest point charge for multiple point charges arising out of one occurrence. Point counts may differ from Section of the Vehicle Code. When determining point counts for the application of the Good Driver discount, points are assigned in accordance with Section of the Vehicle Code. ACCIDENTS Documentation must be provided that accidents are non-chargeable or non-injury. This documentation shall consist of a police report, a written statement from the other party s insurance carrier, from the applicant s previous insurance carrier, or similar legal document verifying that the applicant was not at fault. Signed statements (including police counter reports) or letters from the applicant s attorney are not acceptable. The applicant s declaration, under penalty of perjury, attesting to his or her accident history will be considered as acceptable proof. If it is later discovered that the declaration contains a fraudulent or material misrepresentation, the policy may be cancelled pursuant to California Insurance Code sections 661 and c (1), and we may take any other action authorized by law including possible denial of any pending claim. Accidents Points First at fault accident 3 Each additional accident 5 ACCIDENTS WHICH ARE NOT CHARGED Accidents will not be considered chargeable if the applicant demonstrates the following: 1. Applicant s automobile was lawfully parked. 2. Judgment or reimbursement was obtained from the responsible party. 3. Operator was struck in the rear and not convicted of a moving traffic violation. 4. Operator was struck by a hit-and-run driver and such accident was reported to the proper authorities within 24 hours. 5. Operator was not convicted of a moving traffic violation in connection with the accident and the operator of the other vehicle involved in such accident was convicted of a moving traffic violation. 6. Operator was finally adjudicated not to be liable by a court of competent jurisdiction. 7. Accidents involving Physical Damage limited to and caused by flying gravel, missiles, falling objects or by contact with animals or fowl. 8. Operator at the time of the accident was on duty as a paid or volunteer member of any Police or Fire Department, First Aid Squad, or any Law Enforcement Agency. 9. Accidents occurring while operating a bus for any local transit system. 14

15 10. The accident was a solo vehicle accident that was principally caused by a hazardous condition of which the driver, in the exercise of reasonable care, would not have noticed (i.e. black ice ). 11. Accidents determined to be 50% or less at fault. Note: The burden of proof is on the applicant. ACCIDENT THRESHOLD Accidents in which the total amount of damage is $500 or under will not be charged. For accidents on or after 1/1/03 the threshold will be $750. MINOR VIOLATIONS Minor violations may be charged zero (0), one (1) or two (2) points depending on the nature of the offense. Please refer to the Vehicle Code Violations section of this manual for a comprehensive list of point surcharges. Note: The company does charge two (2) points for some minor moving violations. For the purposes of qualifying for the Good Driver Discount the assigned point value for the first minor moving violation will not preclude the application of the discount. VIOLATIONS WHICH ARE NOT CHARGED 1. The operator at the time of the violation was on duty as a paid or volunteer member of any Police or Fire Department, First Aid Squad or any Law Enforcement Agency. 2. All minor moving violations occurring in commercial vehicles. 3. In receipt of a traffic citation which was dismissed. No more than one per 18 month period will be removed. Note: The burden of proof is on the applicant. MAJOR VIOLATIONS 1. All alcoholic violations involving the use of a motor vehicle. 2. Reckless Driving/Speed contest. 3. All violations involving the use of drugs or narcotics while using a motor vehicle. 4. Speeding in excess of 100 m.p.h. 5. Evading a peace officer. 6. Driving the wrong way on a divided highway. Major Violation Points First major violation 3 Each additional major violation 6 IX. DISCOUNTS AND SURCHARGES GOOD DRIVER DISCOUNT - 20% A discount of 20% on premiums charged will be given to drivers qualifying as a good driver. To qualify as a good driver, a driver must: 1. Have been licensed to drive a motor vehicle for the previous three years, and 2. During the previous three years has not: A. Had more than one violation point count *as determined by section of the Vehicle code. In determining the violation point count, the driver of a motor vehicle involved in an accident which resulted only in damage to property shall receive one violation point, in addition to any other violation points which may be imposed for the accident. B. Had more than one dismissal pursuant to Section of the Vehicle Code. C. Been convicted of Section of the Vehicle Code. 15

16 D. Been the driver of a motor vehicle involved in an accident which resulted in the bodily injury or death of any person and was principally at fault. 3. During the period commencing on January 1, 1999, or the date 10 years prior to the date of application for the issuance or renewal of the Good Driver Discount policy, whichever is later, and ending on the date of the application for the issuance or renewal of the Good Driver Discount policy, he or she has not been convicted of a violation of Section 23140, 23152, or of the Vehicle Code, a felony violation of Section or 23566, or former section or section and 192 of the Penal Code. The company does charge two (2) points for some minor moving violations. However, for the purpose of qualifying for the Good Driver Discount, regardless of the assigned point value, the first minor moving violation or dismissal will not preclude the application of this discount. The discount will not apply to additional vehicles if all drivers on the policy are not Good Drivers. MATURE DRIVER DISCOUNT - 5% A 5% discount on Bodily Injury and Property Damage premiums for drivers age 55 and over who meet the following requirements: 1. A driver improvement certificate issued by a DMV certified school is submitted. 2. The discount will be effective the date it is received by the Company and will apply for up to three years from the completion date of the course. 3. This discount will be discontinued at renewal if the insured has a chargeable accident. 4. If two or more drivers are assigned to a vehicle, all drivers must qualify for the discount. 5. This discount does not apply if the insured took the course pursuant to a court order. 6. The course must be taken every three years to continue eligibility for the insurance discount. MULTI-CAR DISCOUNT A discount applies to coverages if two or more private passenger vehicles are covered with like coverages on the same policy. To be eligible for the multi-car discount, all vehicles must be garaged at the same address and registered to the insured or insured s resident spouse. The discount will only apply to those coverages that are on more than one car. PERSISTENCY FACTOR A factor will be applied to all coverages based on the length of time the insured has had continuous liability insurance with DELOS Insurance Company. X. RATING PROCEDURES GENERAL INFORMATION Manual rating factors are available upon broker s request. To obtain detailed rating factors and algorithm, please contact our Underwriting Department. The applicant s estimate for annual mileage will be accepted. Vehicles not provided with an estimated annual mileage will be rated at annual miles or the mileage previously provided until estimated annual miles is obtained from the insured. Vehicles will be rated with the highest rated vehicle on the highest rated driver first until all drivers and vehicles are assigned (in other words vehicles will be rated in the manner that will generate the highest driver to vehicle premium combination). Unassigned vehicles will be rated at the Single Male - 8 years experience with 0 points rate. DEDUCTIBLE OPTIONS Comprehensive and Collision must be sold together with selected deductibles no more than one level apart. MARITAL STATUS All divorced, separated, widowed and common law people will be rated as single. Inability of married persons to live together because of military service does not deny them the married classification. 16

17 In certain cases, objective evidence may be required to substantiate marital status. POINT COUNT FACTORS In determining point count charges: 1. We order MVRs, loss history reports and undisclosed driver reports on every risk. Please encourage the applicant to fully disclose his or her driving record to avoid premium adjustments or cancellation. We use the most current thirty-six (36) months of driving history. Use conviction date for rating purposes. 2. All accidents are chargeable unless proof of non-fault is furnished. 3. Use the highest point charge for multiple charges arising out of one occurrence. 4. We will charge for commercial vehicle accidents and major violations, but no other minor commercial vehicle violations if submitted with the employer s statement that they occurred while on company business. 5. We charge for all violations and accidents arising out of the use of a motorcycle, RV or motor home. POINT CLASS REDUCTION A policy will not be reclassified and re-rated for point charges expiring during the term of the policy. Rewrites for this purpose are not allowed. PHYSICAL DAMAGE RATING Use the standard ISO Manual Symbols 1. If Physical Damage coverage is to be written, use the ISO Symbol Manual to determine the correct symbol. 2. If the vehicle has existing damage, we require two photos of the vehicle (right/front and left/rear). 3. To determine the symbols for pickups and vans not listed in the ISO Symbol Manual, apply the FOB list price to the tables below. Be sure to include the price of all optional equipment. Please use the tables below for either foreign or domestic models. Symbols for Non ISO Symbolized Pickups and Vans 1981 thru 1989 Models 1990 and Later Models Original Cost Original Cost Sym Original Cost Sym Original Cost Sym New Sym New New New $ 0-2, $17,501-20, $ 0-6,500 1 $22,001-24, $ 2,101-2,750 3 $20,001-24, $ 6,501-8,000 2 $24,001-26, $ 2,751-3,700 4 $24,001-28, $ 8,001-9,000 3 $26,001-28, $ 3,701-5,000 5 $28,001-33, $ 9,001-10,000 4 $28,001-30, $ 5,001-6,500 6 $33,001-38, $10,001-11,250 5 $30,001-33, $ 6,501-8,000 7 $38,001-46, $11,251-12,500 6 $33,001-36, $ 8,001-10,000 8 $46,001-55, $12,501-13,750 7 $36,001-40, $10,001-12, $55,001-65, $13,751-15,000 8 $40,001-45, $12,501-15, $65,001 & above 21 $15,001-16, $45,001-50, $15,501-17, $16,251-17, $50,001-60, $17,501-18, $60,001-70, $18,751-20, $70,001-80, $20,001-22, $80,001 & above 27 SURCHARGED VEHICLES The following is a list of vehicles that will have their physical damage premiums surcharged by the listed factor. Vehicle Factor Vehicle Factor Salvaged 1.50 Excalibur 2.00 Grey Market 1.50 Ferrari 2.00 Acura NSX 2.00 Lamborghini 2.00 Austin Cooper 2.00 Lancia 2.00 Avanti 2.00 Lola

18 Bentley 2.00 Lotus 2.00 BMW M Maserati 2.00 Cobra 2.00 Pantera 2.00 Cord 2.00 Porsche (except 914) 1.50 Corvette 1.50 Rolls Royce 2.00 DeLorean 2.00 Viper 2.00 Dual Ghia 2.00 Kit, Modified, or Specialty Vehicles 1.50 All Pickups and SUV s will be surcharged 5% on all coverages. Y. CLAIM INFORMATION All loss reports must be immediately sent directly to: Blackhawk Claims Service, Inc. P. O. Box 6027 Concord, CA Telephone: (925) (800) F AX: (925) Information concerning the status of a claim may be obtained directly from Blackhawk Claims Service, Inc. Z. CUSTOMER SERVICE INFORMATION CenCal Insurance Services, Inc. P. O. Box 5081 San Ramon, CA CenCal Website: Telephone: (925) (800) FAX: (925)