SERFF Tracking #: MRTN State Tracking #: Company Tracking #: EQU-01-FRR-17

Transcription

1 SERFF Tracking #: MRTN State Tracking #: Company Tracking #: EQU-01-FRR-17 State: California Filing Company: Liberty Mutual Insurance Company TOI/Sub-TOI: 09.0 Inland Marine/ Animal Mortality Product Name: Initial Equine/Livestock Mortality Program Project Name/Number: Initial Equine / Livestock Mortality Program/EQU-01-FRR-17 Filing at a Glance Company: Product Name: State: TOI: Sub-TOI: Filing Type: Liberty Mutual Insurance Company Initial Equine/Livestock Mortality Program California 09.0 Inland Marine Animal Mortality New Program Date Submitted: 09/14/2017 SERFF Tr Num: SERFF Status: State Tr Num: State Status: Co Tr Num: Effective Date Requested (New): Effective Date Requested (Renewal): Author(s): Reviewer(s): MRTN Closed-Approved Approved EQU-01-FRR-17 11/01/2017 Disposition Date: 11/28/2017 Disposition Status: Effective Date (New): Effective Date (Renewal): Linda Rothwell, Brian Thomas Emily Wang (primary), Kam Fong Approved This filing was provided as part of The California Insurance ADVISOR or call PDF Pipeline for SERFF Tracking Number MRTN Generated 12/21/ :19 AM

2 SERFF Tracking #: MRTN State Tracking #: Company Tracking #: EQU-01-FRR-17 State: California Filing Company: Liberty Mutual Insurance Company TOI/Sub-TOI: 09.0 Inland Marine/ Animal Mortality Product Name: Initial Equine/Livestock Mortality Program Project Name/Number: Initial Equine / Livestock Mortality Program/EQU-01-FRR-17 General Information Project Name: Initial Equine / Livestock Mortality Program Project Number: EQU-01-FRR-17 Reference Organization: Reference Title: Filing Status Changed: 11/28/2017 Status of Filing in Domicile: Domicile Status Comments: Reference Number: Advisory Org. Circular: State Status Changed: 11/28/2017 Deemer Date: 12/05/2017 Created By: Linda Rothwell Corresponding Filing Tracking Number: Filing Description: Submitted By: Linda Rothwell Attached for your review is a Filing Authorization letter from Liberty Mutual Insurance Company (LMIC) (hereinafter referred to as the company) authorizing Martin & Company to submit this filing on their behalf. Please direct all correspondence regarding this filing to Martin & Company. Liberty Mutual Insurance Company (LMIC) is submitting for your review and approval their initial filing for their Equine Mortality and Livestock Mortality Insurance Programs. LMIC will utilize independent rates, rules, and forms for these programs. The Livestock Mortality Program provides coverage for animals other than horses and the Equine Mortality Program provides coverage for horses. The program description provides a list of coverages, minimum premiums and additional charges The company proposes an effective date of November 1, 2017, or upon your acknowledgement or approval of this filing. Please let us know if we can provide you with any additional information. Company and Contact Filing Contact Information Linda Rothwell, State Filing Analyst P.O. Box 70 Edgemont, PA LRothwell@martincompanyus.com [Phone] Filing Company Information (This filing was made by a third party - martinandcompany) Liberty Mutual Insurance Company CoCode: Berkeley Street Group Code: Boston, MA Group Name: (617) ext. [Phone] FEIN Number: State of Domicile: Massachusetts Company Type: P&C State ID Number: Filing Fees Fee Required? No Retaliatory? No Fee Explanation: State Specific Variance Requested? (Yes/No): NO PDF Pipeline for SERFF Tracking Number MRTN Generated 12/21/ :19 AM

3 SERFF Tracking #: MRTN State Tracking #: Company Tracking #: EQU-01-FRR-17 State: California Filing Company: Liberty Mutual Insurance Company TOI/Sub-TOI: 09.0 Inland Marine/ Animal Mortality Product Name: Initial Equine/Livestock Mortality Program Project Name/Number: Initial Equine / Livestock Mortality Program/EQU-01-FRR-17 Correspondence Summary Dispositions Status Created By Created On Date Submitted Approved Kam Fong 11/28/ /28/2017 Objection Letters and Response Letters Objection Letters Response Letters Status Created By Created On Date Submitted Responded By Created On Date Submitted Respond Emily Wang 11/15/ /15/2017 Linda Rothwell 11/15/ /16/2017 immediately Pending Emily Wang 10/25/ /25/2017 Linda Rothwell 11/08/ /08/2017 company response Pending company response Martha Zamudio 09/25/ /25/2017 Linda Rothwell 09/27/ /27/2017 Filing Notes Subject Note Type Created By Created On Date Submitted Extension Granted Note To Filer Emily Wang 11/08/ /08/2017 Request for extension Note To Reviewer Linda Rothwell 11/08/ /08/2017 PDF Pipeline for SERFF Tracking Number MRTN Generated 12/21/ :19 AM

4 SERFF Tracking #: MRTN State Tracking #: Company Tracking #: EQU-01-FRR-17 State: California Filing Company: Liberty Mutual Insurance Company TOI/Sub-TOI: 09.0 Inland Marine/ Animal Mortality Product Name: Initial Equine/Livestock Mortality Program Project Name/Number: Initial Equine / Livestock Mortality Program/EQU-01-FRR-17 Disposition Disposition Date: 11/28/2017 Effective Date (New): Effective Date (Renewal): Status: Approved Comment: Only the changes specifically indicated in the application set forth above, as it may have been amended, are approved. Nothing in this letter shall constitute approval of any other application, whether incorporated by reference, or filed prior or subsequent to the application set forth above. The insurer shall begin issuing policies pursuant to this approval within 90 days of the date of this approval, provided that the insurer is licensed in California to transact the line of insurance for which the approval is given. The insurer may implement this approval earlier if it is able to do so. Regardless of the implementation date, the insurer shall implement this approval with the same effective date for both new and renewal business and shall offer this product to all eligible applicants as of the implementation date. This approval shall continue to have full force and effect until such time as a subsequent change for the referenced lines or programs may be approved or ordered by the Insurance Commissioner. If any portion of the application or related documentation conflicts with California law, that portion is specifically not approved. This approval does not constitute an approval of underwriting guidelines nor the specific language, coverages, terms, covenants and conditions contained in any forms, or the forms themselves. Policy forms and underwriting guidelines included in this filing were reviewed only insofar as they relate to rates contained in this filing or currently on file with the California Department of Insurance. Any subsequent changes to underwriting guidelines or coverage, terms, covenants and conditions contained in any forms must be submitted with supporting documentation where those changes result in any rating impact. The Commissioner may at any time take any action allowed by law if he determines that any underwriting guidelines, forms or procedures for application of rates, or any other portions of the application conflict with any applicable laws or regulations. Rate data does NOT apply to filing. Schedule Schedule Item Schedule Item Status Public Access Supporting Document (revised) New Prior Approval Rate Application Yes Supporting Document New Prior Approval Rate Application Yes Supporting Document New Prior Approval Rate Application Yes Supporting Document Actuarial Memorandum Yes Supporting Document Authorization Letter Yes Supporting Document Rate Comparison Yes Aggregate Deductible Endorsement Yes Agreed Value Endorsement Yes Automatic Additions Extension Yes Barrenness And Prospective Foal Coverage Yes PDF Pipeline for SERFF Tracking Number MRTN Generated 12/21/ :19 AM

5 SERFF Tracking #: MRTN State Tracking #: Company Tracking #: EQU-01-FRR-17 State: California Filing Company: Liberty Mutual Insurance Company TOI/Sub-TOI: 09.0 Inland Marine/ Animal Mortality Product Name: Initial Equine/Livestock Mortality Program Project Name/Number: Initial Equine / Livestock Mortality Program/EQU-01-FRR-17 Schedule Schedule Item Schedule Item Status Public Access CID & Cerebellum Disease Exclusion Yes Continuous Coverage Endorsement Yes Coverage Territory Extension-Specified Territory And Yes Horses Emergency Colic Surgery Coverage Yes Emergency Life Saving Surgical Extension Yes Application for Equine Mortality & Limited Theft, Unlawful Yes Removal Insurance Equine Mortality And Limited Theft, Unlawful Removal Yes Coverage Policy Declaration of Health Yes Equine Mortality And Limited Theft, Unlawful Removal Yes Coverage Policy Declarations Equine Mortality And Limited Theft, Unlawful Removal Yes Coverage Policy Supplemental Declarations Exclusion-Specific Accident, Illness, Injury, Disease Or Yes Disability Exclusion of Terrorism Yes Limited Permanent Disability Endorsement Yes Mare Disability Endorsement Yes Medical/Surgical Coverage With Co-Payment Included Yes No Claims Bonus Endorsement Yes Permanent Disability Coverage Yes Private Horse Owner's Liability Endorsement Yes Profit Commission Endorsement Yes "Prospective Foal" Coverage Yes Schedule of Endorsements Yes Specific Endorsement Yes Specified Perils Endorsement Yes Stallion Availability Endorsement Yes Stallion First Breeding Season Endorsement Yes Stallion Infertility (Accident, Sickness And Disease) Yes PDF Pipeline for SERFF Tracking Number MRTN Generated 12/21/ :19 AM

6 SERFF Tracking #: MRTN State Tracking #: Company Tracking #: EQU-01-FRR-17 State: California Filing Company: Liberty Mutual Insurance Company TOI/Sub-TOI: 09.0 Inland Marine/ Animal Mortality Product Name: Initial Equine/Livestock Mortality Program Project Name/Number: Initial Equine / Livestock Mortality Program/EQU-01-FRR-17 Schedule Schedule Item Schedule Item Status Public Access Stallion Loss Of Income Extension Endorsement Yes Stallion Loss Of Income Extension Of Coverage Options Yes Surgical Coverage Endorsement Yes Twelve Months Extension Endorsement Yes Application for Livestock Mortality Insurance Yes Application for Livestock Mortality Insurance Cattle Yes Supplement Application for Livestock Mortality Insurance Canine Yes Supplement Application for Livestock Mortality Insurance Exotic Yes Animal Supplement Livestock Mortality Coverage Policy Declarations Yes Livestock Mortality Coverage Policy Supplemental Yes Declarations Schedule of Endorsements Yes Specified Perils Endorsement Yes Optional Perils Coverage Endorsement Yes Theft Coverage Endorsement Yes Specific Exclusion Endorsement Yes Aggregate Deductible Endorsement Yes Agreed Value Endorsement Yes Twelve Months Extension Yes Livestock Infertility Endorsement (Accident, Sickness & Yes Disease) Specific Endorsement Yes Coverage Territory Extension-Specified Territory And Yes Covered Animals Calf In Utero Coverage Extension Yes Sea Transit Extension (Including War) Yes Air Transit Extension (Including War) Yes Sea Transit Extension Yes Air Transit Extension Yes Road Transit Extension Yes PDF Pipeline for SERFF Tracking Number MRTN Generated 12/21/ :19 AM

7 SERFF Tracking #: MRTN State Tracking #: Company Tracking #: EQU-01-FRR-17 State: California Filing Company: Liberty Mutual Insurance Company TOI/Sub-TOI: 09.0 Inland Marine/ Animal Mortality Product Name: Initial Equine/Livestock Mortality Program Project Name/Number: Initial Equine / Livestock Mortality Program/EQU-01-FRR-17 Schedule Schedule Item Schedule Item Status Public Access Bull Permanent Disability Endorsement Yes Transit Deductible Endorsement Yes War Coverage Endorsement Yes Abortion Coverage Endorsement Yes Re-Testing Extension Endorsement Yes Exclusion Of Terrorism Yes Livestock Mortality Coverage Policy Yes Application for Frozen Semen and/or Frozen Embryos in Yes Storage Insurance Application for Frozen Semen and/or Frozen Embryos in Yes Transit Insurance Frozen Semen And/Or Frozen Embryos In Storage Yes Coverage Policy Declarations Frozen Semen And/Or Frozen Embryos In Storage Yes Coverage Policy Supplemental Declarations Frozen Semen And/Or Frozen Embryos In Transit Yes Coverage Policy Declarations Frozen Semen And/Or Frozen Embryos In Transit Yes Coverage Policy Supplemental Declarations Schedule of Endorsements Yes Limited Theft And Unlawful Removal Endorsement Yes Transit Deductible Endorsement Yes Specific Endorsement Yes Frozen Semen And/Or Frozen Embryos In Storage Yes Coverage Policy Frozen Semen And/Or Frozen Embryos In Transit Yes Coverage Policy Application for Equine Named Perils Insurance Yes Equine Named Perils Coverage Policy Declarations Yes Equine Named Perils Coverage Policy Supplemental Yes Declarations Schedule of Endorsements Yes Twelve Months Extension Endorsement Yes Additional Coverage-Colic Mortality Yes PDF Pipeline for SERFF Tracking Number MRTN Generated 12/21/ :19 AM

8 SERFF Tracking #: MRTN State Tracking #: Company Tracking #: EQU-01-FRR-17 State: California Filing Company: Liberty Mutual Insurance Company TOI/Sub-TOI: 09.0 Inland Marine/ Animal Mortality Product Name: Initial Equine/Livestock Mortality Program Project Name/Number: Initial Equine / Livestock Mortality Program/EQU-01-FRR-17 Schedule Schedule Item Schedule Item Status Public Access Emergency Colic Surgery Coverage Yes Additional Coverage-Accidental Injury Yes Specific Endorsement Yes Coverage Territory Extension-Specified Territory And Yes Horses Equine Named Perils Coverage Policy Yes California Amendatory Endorsement Yes Rate Livestock Mortality Coverage Program Rates and Rules Yes Rate Equine Mortality And Limited Theft, Unlawful Removal Coverage Policy Manual Rates and Rules Yes PDF Pipeline for SERFF Tracking Number MRTN Generated 12/21/ :19 AM

9 SERFF Tracking #: MRTN State Tracking #: Company Tracking #: EQU-01-FRR-17 State: California Filing Company: Liberty Mutual Insurance Company TOI/Sub-TOI: 09.0 Inland Marine/ Animal Mortality Product Name: Initial Equine/Livestock Mortality Program Project Name/Number: Initial Equine / Livestock Mortality Program/EQU-01-FRR-17 Objection Letter Objection Letter Status Respond immediately Objection Letter Date 11/15/2017 Submitted Date 11/15/2017 Respond By Date 11/15/2017 Dear Linda Rothwell, Introduction: Our records indicate that the deemer date for this filing is December 05, In order for us to complete our review, we request a waiver of the deemer. We ask that Liberty Mutual Insurance Company submits a SERFF note with the wording below to waive the deemer provisions: Regarding the above-referenced rate application, Liberty Mutual Insurance Company ("applicant") hereby waives all deemer provisions of California Insurance Code Section , specifically, the 60-day deemer and the 180-day deemer. If the applicant wishes to reactivate the deemer provisions, the applicant will make its request in writing to the Department of Insurance Rate Filing Bureau, Los Angeles, California. Upon reactivation, the 60-day deemer will resume five days after the Department's receipt of the applicant's request to reactivate the deemer, on day 40, and the 180-day deemer will resume five days after the Department's receipt of the applicant's request to reactivate the deemer, on day 62. Conclusion: Sincerely, Emily Wang PDF Pipeline for SERFF Tracking Number MRTN Generated 12/21/ :19 AM

10 SERFF Tracking #: MRTN State Tracking #: Company Tracking #: EQU-01-FRR-17 State: California Filing Company: Liberty Mutual Insurance Company TOI/Sub-TOI: 09.0 Inland Marine/ Animal Mortality Product Name: Initial Equine/Livestock Mortality Program Project Name/Number: Initial Equine / Livestock Mortality Program/EQU-01-FRR-17 Objection Letter Objection Letter Status Pending company response Objection Letter Date 10/25/2017 Submitted Date 10/25/2017 Respond By Date 11/08/2017 Dear Linda Rothwell, Introduction: 1)Please show derivations for all rates and factors that are different from Markel s rating plan. 2)Refer to Page 3.2 of the Rate Template Please reconcile the numbers in Cells C21, C24, C25, and C27. These numbers should come from Liberty Mutual Group s 2016 consolidated annual statement. Conclusion: Sincerely, Emily Wang PDF Pipeline for SERFF Tracking Number MRTN Generated 12/21/ :19 AM

11 SERFF Tracking #: MRTN State Tracking #: Company Tracking #: EQU-01-FRR-17 State: California Filing Company: Liberty Mutual Insurance Company TOI/Sub-TOI: 09.0 Inland Marine/ Animal Mortality Product Name: Initial Equine/Livestock Mortality Program Project Name/Number: Initial Equine / Livestock Mortality Program/EQU-01-FRR-17 Objection Letter Objection Letter Status Pending company response Objection Letter Date 09/25/2017 Submitted Date 09/25/2017 Respond By Date 09/27/2017 Dear Linda Rothwell, Introduction: Please provide us with the following: 1.- EXHIBIT 16 NEW PROGRAM Explain the source used to develop the rates for the new program (such as an affiliated company or unaffiliated company). For new programs that are based upon the loss costs of an advisory organization, indicate the edition date and the CDI file number of the loss costs that are adopted by the insurer. The most recently approved loss costs should be used, if not, explain the reason. Indicate whether the new program or a similar program has been written in any state by the insurer or an affiliated company; if the same or similar program has been written in California provide the CDI file number. Explain the reason for the new program development and the relationship and/or differences between the proposed rates, coverage, and underwriting requirements to any similar existing program(s). If the New program is created and is based partly on current or inactive program, data from that program, together wit the rate impact to the affected policyholders, must be identified on application page 2, insurer group filing. 2.- Submit the underwriting guidelines. Page 7 of our filing instructions reads: "Underwriting guidelines must be submitted in PDF (with searchable text) format with all rate filings, regardless of line of business. Underwriting guidelines are reviewed only insofar as they relate to rates contained in the filing or currently on file with the Department." Conclusion: Sincerely, Martha Zamudio PDF Pipeline for SERFF Tracking Number MRTN Generated 12/21/ :19 AM

12 SERFF Tracking #: MRTN State Tracking #: Company Tracking #: EQU-01-FRR-17 State: California Filing Company: Liberty Mutual Insurance Company TOI/Sub-TOI: 09.0 Inland Marine/ Animal Mortality Product Name: Initial Equine/Livestock Mortality Program Project Name/Number: Initial Equine / Livestock Mortality Program/EQU-01-FRR-17 Response Letter Response Letter Status Submitted to State Response Letter Date 11/15/2017 Submitted Date 11/16/2017 Dear Emily Wang, Introduction: This is in response to your Objection Letter dated today's date. Response 1 Comments: Regarding the above-referenced rate application, Liberty Mutual Insurance Company ("applicant") hereby waives all deemer provisions of California Insurance Code Section , specifically, the 60-day deemer and the 180-day deemer. If the applicant wishes to reactivate the deemer provisions, the applicant will make its request in writing to the Department of Insurance Rate Filing Bureau, Los Angeles, California. Upon reactivation, the 60-day deemer will resume five days after the Department's receipt of the applicant's request to reactivate the deemer, on day 40, and the 180-day deemer will resume five days after the Department's receipt of the applicant's request to reactivate the deemer, on day 62. Changed Items: No Supporting Documents changed. No Schedule items changed. No Rate/Rule Schedule items changed. Conclusion: Thank you for your continued review. Sincerely, Linda Rothwell Martin & Company Sincerely, Linda Rothwell PDF Pipeline for SERFF Tracking Number MRTN Generated 12/21/ :19 AM

13 SERFF Tracking #: MRTN State Tracking #: Company Tracking #: EQU-01-FRR-17 State: California Filing Company: Liberty Mutual Insurance Company TOI/Sub-TOI: 09.0 Inland Marine/ Animal Mortality Product Name: Initial Equine/Livestock Mortality Program Project Name/Number: Initial Equine / Livestock Mortality Program/EQU-01-FRR-17 Response Letter Response Letter Status Submitted to State Response Letter Date 11/08/2017 Submitted Date 11/08/2017 Dear Emily Wang, Introduction: This is in response to your Objection Letter dated 10/25/2017. Response 1 Comments: 1. A Rate Comparison is attached. 2. The Rate Template has been revised accordingly. Changed Items: PDF Pipeline for SERFF Tracking Number MRTN Generated 12/21/ :19 AM

14 SERFF Tracking #: MRTN State Tracking #: Company Tracking #: EQU-01-FRR-17 State: California Filing Company: Liberty Mutual Insurance Company TOI/Sub-TOI: 09.0 Inland Marine/ Animal Mortality Product Name: Initial Equine/Livestock Mortality Program Project Name/Number: Initial Equine / Livestock Mortality Program/EQU-01-FRR-17 Supporting Document Schedule Item Changes Satisfied - Item: New Prior Approval Rate Application Comments: PriorAppRateAPL_Ed LMIC Equine final xlsm PriorAppRateAPL_Ed LMIC Equine final pdf Attachment(s): CA Exhitits 16 revised.pdf Copy of PriorAppRateTl_Ed LMIC Equine Revised.xlsm Exhibit 18.pdf Copy of PriorAppRateTl_Ed LMIC Equine Revised.pdf Previous Version Satisfied - Item: New Prior Approval Rate Application Comments: Copy of PriorAppRateTl_Ed LMIC Equine.xlsm PriorAppRateTl_Ed LMIC Equine.pdf Attachment(s): PriorAppRateAPL_Ed LMIC Equine final xlsm PriorAppRateAPL_Ed LMIC Equine final pdf CA Exhitits 16 revised.pdf Exhibit 18.pdf Previous Version Satisfied - Item: New Prior Approval Rate Application Comments: Copy of PriorAppRateTl_Ed LMIC Equine.xlsm PriorAppRateTl_Ed LMIC Equine.pdf Attachment(s): PriorAppRateAPL_Ed LMIC Equine final xlsm PriorAppRateAPL_Ed LMIC Equine final pdf CA Exhitits pdf PDF Pipeline for SERFF Tracking Number MRTN Generated 12/21/ :19 AM

15 SERFF Tracking #: MRTN State Tracking #: Company Tracking #: EQU-01-FRR-17 State: California Filing Company: Liberty Mutual Insurance Company TOI/Sub-TOI: 09.0 Inland Marine/ Animal Mortality Product Name: Initial Equine/Livestock Mortality Program Project Name/Number: Initial Equine / Livestock Mortality Program/EQU-01-FRR-17 Supporting Document Schedule Item Changes Satisfied - Item: New Prior Approval Rate Application Comments: PriorAppRateAPL_Ed LMIC Equine final xlsm PriorAppRateAPL_Ed LMIC Equine final pdf Attachment(s): CA Exhitits 16 revised.pdf Copy of PriorAppRateTl_Ed LMIC Equine Revised.xlsm Exhibit 18.pdf Copy of PriorAppRateTl_Ed LMIC Equine Revised.pdf Previous Version Satisfied - Item: New Prior Approval Rate Application Comments: Copy of PriorAppRateTl_Ed LMIC Equine.xlsm PriorAppRateTl_Ed LMIC Equine.pdf Attachment(s): PriorAppRateAPL_Ed LMIC Equine final xlsm PriorAppRateAPL_Ed LMIC Equine final pdf CA Exhitits 16 revised.pdf Exhibit 18.pdf Previous Version Satisfied - Item: New Prior Approval Rate Application Comments: Copy of PriorAppRateTl_Ed LMIC Equine.xlsm PriorAppRateTl_Ed LMIC Equine.pdf Attachment(s): PriorAppRateAPL_Ed LMIC Equine final xlsm PriorAppRateAPL_Ed LMIC Equine final pdf CA Exhitits pdf Satisfied - Item: Comments: Attachment(s): Rate Comparison LIU Equine Mortality Rate Comparison CA.pdf No Schedule items changed. No Rate/Rule Schedule items changed. Conclusion: PDF Pipeline for SERFF Tracking Number MRTN Generated 12/21/ :19 AM

16 SERFF Tracking #: MRTN State Tracking #: Company Tracking #: EQU-01-FRR-17 State: California Filing Company: Liberty Mutual Insurance Company TOI/Sub-TOI: 09.0 Inland Marine/ Animal Mortality Product Name: Initial Equine/Livestock Mortality Program Project Name/Number: Initial Equine / Livestock Mortality Program/EQU-01-FRR-17 Please do not hesitate to contact me if anything further is required. Sincerely, Linda Rothwell Martin & Company Sincerely, Linda Rothwell PDF Pipeline for SERFF Tracking Number MRTN Generated 12/21/ :19 AM

17 SERFF Tracking #: MRTN State Tracking #: Company Tracking #: EQU-01-FRR-17 State: California Filing Company: Liberty Mutual Insurance Company TOI/Sub-TOI: 09.0 Inland Marine/ Animal Mortality Product Name: Initial Equine/Livestock Mortality Program Project Name/Number: Initial Equine / Livestock Mortality Program/EQU-01-FRR-17 Response Letter Response Letter Status Submitted to State Response Letter Date 09/27/2017 Submitted Date 09/27/2017 Dear Emily Wang, Introduction: This is in response to your Objection Letter dated 9/25/2017. Response 1 Comments: 1) Please see the attached revised Exhibit 16. The proposed program is based on rates filed and approved in California by Markel Insurance Company. 2) The Company's Underwriting Guidelines are attached. Changed Items: Supporting Document Schedule Item Changes Satisfied - Item: New Prior Approval Rate Application Comments: Copy of PriorAppRateTl_Ed LMIC Equine.xlsm PriorAppRateTl_Ed LMIC Equine.pdf Attachment(s): PriorAppRateAPL_Ed LMIC Equine final xlsm PriorAppRateAPL_Ed LMIC Equine final pdf CA Exhitits 16 revised.pdf Exhibit 18.pdf Previous Version Satisfied - Item: New Prior Approval Rate Application Comments: Copy of PriorAppRateTl_Ed LMIC Equine.xlsm PriorAppRateTl_Ed LMIC Equine.pdf Attachment(s): PriorAppRateAPL_Ed LMIC Equine final xlsm PriorAppRateAPL_Ed LMIC Equine final pdf CA Exhitits pdf No Schedule items changed. PDF Pipeline for SERFF Tracking Number MRTN Generated 12/21/ :19 AM

18 SERFF Tracking #: MRTN State Tracking #: Company Tracking #: EQU-01-FRR-17 State: California Filing Company: Liberty Mutual Insurance Company TOI/Sub-TOI: 09.0 Inland Marine/ Animal Mortality Product Name: Initial Equine/Livestock Mortality Program Project Name/Number: Initial Equine / Livestock Mortality Program/EQU-01-FRR-17 No Rate/Rule Schedule items changed. Conclusion: Please do not hesitate to contact me if anything further is required. Sincerely, Linda Rothwell Martin & Company Sincerely, Linda Rothwell PDF Pipeline for SERFF Tracking Number MRTN Generated 12/21/ :19 AM

19 SERFF Tracking #: MRTN State Tracking #: Company Tracking #: EQU-01-FRR-17 State: California Filing Company: Liberty Mutual Insurance Company TOI/Sub-TOI: 09.0 Inland Marine/ Animal Mortality Product Name: Initial Equine/Livestock Mortality Program Project Name/Number: Initial Equine / Livestock Mortality Program/EQU-01-FRR-17 Note To Filer Created By: Emily Wang on 11/08/ :35 PM Last Edited By: Emily Wang Submitted On: 11/08/ :35 PM Subject: Extension Granted Comments: Please respond to the 10/25/2017 objection by 11/10/2017. PDF Pipeline for SERFF Tracking Number MRTN Generated 12/21/ :19 AM

20 SERFF Tracking #: MRTN State Tracking #: Company Tracking #: EQU-01-FRR-17 State: California Filing Company: Liberty Mutual Insurance Company TOI/Sub-TOI: 09.0 Inland Marine/ Animal Mortality Product Name: Initial Equine/Livestock Mortality Program Project Name/Number: Initial Equine / Livestock Mortality Program/EQU-01-FRR-17 Note To Reviewer Created By: Linda Rothwell on 11/08/ :11 PM Last Edited By: Linda Rothwell Submitted On: 11/08/ :13 PM Subject: Request for extension Comments: May we have until Friday, 11/10 to respond? Thank you. Linda Rothwell Martin & Company PDF Pipeline for SERFF Tracking Number MRTN Generated 12/21/ :19 AM

21 SERFF Tracking #: MRTN State Tracking #: Company Tracking #: EQU-01-FRR-17 State: California Filing Company: Liberty Mutual Insurance Company TOI/Sub-TOI: 09.0 Inland Marine/ Animal Mortality Product Name: Initial Equine/Livestock Mortality Program Project Name/Number: Initial Equine / Livestock Mortality Program/EQU-01-FRR-17 Schedule Item Schedule Item No. Status Name 1 Aggregate Deductible Endorsement 2 Agreed Value Endorsement 3 Automatic Additions Extension 4 Barrenness And Prospective Foal Coverage 5 CID & Cerebellum Disease Exclusion 6 Continuous Coverage Endorsement 7 Coverage Territory Extension-Specified Territory And Horses 8 Emergency Colic Surgery Coverage 9 Emergency Life Saving Surgical Extension 10 Application for Equine Mortality & Limited Theft, Unlawful Removal Insurance 11 Equine Mortality And Limited Theft, Unlawful Removal Coverage Policy Edition Action Specific Readability Number Date Type Action Data Score Attachments EQU-E END New Aggregate Deductible Endorsement.pdf EQU-E END New Agreed Value Endorsement.pdf EQU-E END New Automatic Additions Endorsement.pdf EQU-E END New Barrenness and Prospective Foal Coverage Endorsement.pdf EQU-E END New Cid and Cerebellum Disease Exclusion.pdf EQU-E END New Continuous Coverage Endorsement.pdf EQU-E END New Coverage Territory Extension Endorsement.pdf EQU-E END New Emergency Colic Surgery.pdf EQU-E END New Emergency Life Saving Surgery.pdf EQU-A ABE New EQU-A Equine Mortality Application.pdf EQU-P PCF New Equine Mortality Coverage Policy.pdf PDF Pipeline for SERFF Tracking Number MRTN Generated 12/21/ :19 AM

22 SERFF Tracking #: MRTN State Tracking #: Company Tracking #: EQU-01-FRR-17 State: California Filing Company: Liberty Mutual Insurance Company TOI/Sub-TOI: 09.0 Inland Marine/ Animal Mortality Product Name: Initial Equine/Livestock Mortality Program Project Name/Number: Initial Equine / Livestock Mortality Program/EQU-01-FRR-17 Item Schedule Item Edition No. Status Name Number Date Type Action Data Score Attachments 12 Declaration of Health EQU-DOH 0817 OTH New Equine Mortality Declaration of Health.pdf 13 Equine Mortality And Limited Theft, Unlawful Removal Coverage Policy Declarations 14 Equine Mortality And Limited Theft, Unlawful Removal Coverage Policy Supplemental Declarations 15 Exclusion-Specific Accident, Illness, Injury, Disease Or Disability Action Specific Readability EQU-D DEC New Equine Mortality Declarations.pdf EQU-D DEC New Equine Mortality Supplemental Schedule.pdf EQU-E END New Exclusion - Specific Accident, Illness, Injury, Disease or Disability.pdf 16 Exclusion of Terrorism EQU-E END New Exclusion of Terrorism.pdf 17 Limited Permanent Disability Endorsement 18 Mare Disability Endorsement 19 Medical/Surgical Coverage With Co- Payment Included 20 No Claims Bonus Endorsement 21 Permanent Disability Coverage 22 Private Horse Owner's Liability Endorsement EQU-E END New Limited Permanent Disability Endorsement.pdf EQU-E END New Mare Disability Endorsement.pdf EQU-E END New Medical-Surgical Endorsement with Co-Payment Included.pdf EQU-E END New No Claims Bonus Endorsement.pdf EQU-E END New Permanent Disability Coverage Endorsement.pdf EQU-E END New Private Horse Owner's Liability Endorsement.pdf PDF Pipeline for SERFF Tracking Number MRTN Generated 12/21/ :19 AM

23 SERFF Tracking #: MRTN State Tracking #: Company Tracking #: EQU-01-FRR-17 State: California Filing Company: Liberty Mutual Insurance Company TOI/Sub-TOI: 09.0 Inland Marine/ Animal Mortality Product Name: Initial Equine/Livestock Mortality Program Project Name/Number: Initial Equine / Livestock Mortality Program/EQU-01-FRR-17 Item Schedule Item Edition No. Status Name Number Date Type Action Data Score Attachments 23 Profit Commission EQU-E END New Profit Endorsement Commission Endorsement.pdf 24 "Prospective Foal" EQU-E END New Prospective Foal Coverage Coverage Endorsement.pdf 25 Schedule of EQU-D DEC New Schedule of Endorsements Endorsements.pd f 26 Specific Endorsement EQU-E END New Specific Endorsement.pdf 27 Specified Perils EQU-E END New Specified Perils Endorsement Endorsement.pdf 28 Stallion Availability Endorsement 29 Stallion First Breeding Season Endorsement 30 Stallion Infertility (Accident, Sickness And Disease) 31 Stallion Loss Of Income Extension Endorsement 32 Stallion Loss Of Income Extension Of Coverage Options 33 Surgical Coverage Endorsement Action Specific Readability EQU-E END New Stallion Availability Endorsement.pdf EQU-E END New Stallion First Breeding Season Infertility Endorsement.pdf EQU-E END New Stallion Infertility (Accident, Sickness and Disease) Endorsement.pdf EQU-E END New Stallion Loss of Income Extension Endorsement.pdf EQU-E END New Stallion Loss of Income Extension of Coverage Options.pdf EQU-E END New Surgical Coverage Endorsement.pdf PDF Pipeline for SERFF Tracking Number MRTN Generated 12/21/ :19 AM

24 SERFF Tracking #: MRTN State Tracking #: Company Tracking #: EQU-01-FRR-17 State: California Filing Company: Liberty Mutual Insurance Company TOI/Sub-TOI: 09.0 Inland Marine/ Animal Mortality Product Name: Initial Equine/Livestock Mortality Program Project Name/Number: Initial Equine / Livestock Mortality Program/EQU-01-FRR-17 Item Schedule Item No. Status Name 34 Twelve Months Extension Endorsement 35 Application for Livestock Mortality Insurance 36 Application for Livestock Mortality Insurance Cattle Supplement 37 Application for Livestock Edition Action Specific Readability Number Date Type Action Data Score Attachments EQU-E END New Twelve Months Extension Endorsement.pdf EQULM- A001 EQULM- A002 EQULM- Mortality Insurance Canine A003 Supplement 38 Application for Livestock Mortality Insurance Exotic Animal Supplement 39 Livestock Mortality Coverage Policy Declarations 40 Livestock Mortality Coverage Policy Supplemental Declarations 41 Schedule of Endorsements 42 Specified Perils Endorsement EQULM- A004 EQULM- D001 EQULM- D002 EQULM- D005 EQULM- E ABE New Livestock Mortality Application-rev- EQULM-A rev pdf 0817 ABE New EQULM-A Cattle Supplement.pdf 0817 ABE New EQULM-A Canine Supplement.pdf 0817 ABE New EQULM-A Exotic Supplement.pdf 0817 DEC New EQULM-D Livestock Mortality Policy Declarations.pdf 0817 DEC New EQULM-D Livestock Mortality Policy Supplemental Schedule.pdf 0817 DEC New EQULM-D Schedule of Endorsements.pd f 0817 END New EQULM-E SPECIFIED PERILS ENDORSEMENT.pdf PDF Pipeline for SERFF Tracking Number MRTN Generated 12/21/ :19 AM

25 SERFF Tracking #: MRTN State Tracking #: Company Tracking #: EQU-01-FRR-17 State: California Filing Company: Liberty Mutual Insurance Company TOI/Sub-TOI: 09.0 Inland Marine/ Animal Mortality Product Name: Initial Equine/Livestock Mortality Program Project Name/Number: Initial Equine / Livestock Mortality Program/EQU-01-FRR-17 Item Schedule Item No. Status Name 43 Optional Perils Coverage Endorsement 44 Theft Coverage Endorsement 45 Specific Exclusion Endorsement 46 Aggregate Deductible Endorsement 47 Agreed Value Endorsement Number EQULM- E002 EQULM- E003 EQULM- E004 EQULM- E005 EQULM- E Twelve Months Extension EQULM- E Livestock Infertility Endorsement (Accident, Sickness & Disease) EQULM- E014 Edition Action Specific Readability Date Type Action Data Score Attachments 0817 END New EQULM-E OPTIONAL PERILS COVERAGE ENDORSEMENT.pdf 0817 END New EQULM-E THEFT COVERAGE ENDORSEMENT.pdf 0817 END New EQULM-E SPECIFIC EXCLUSION ENDORSEMENT.pdf 0817 END New EQULM-E AGGREGATE DEDUCTIBLE ENDORSEMENT.pdf 0817 END New EQULM-E Agreed Value Endorsement.pdf 0817 END New EQULM-E TWELVE MONTHS EXTENSION.pdf 0817 END New EQULM-E LIVESTOCK INFERTILITY ENDORSEMENT (ACCIDENT,SIC KNESS,DISEAS E).pdf PDF Pipeline for SERFF Tracking Number MRTN Generated 12/21/ :19 AM

26 SERFF Tracking #: MRTN State Tracking #: Company Tracking #: EQU-01-FRR-17 State: California Filing Company: Liberty Mutual Insurance Company TOI/Sub-TOI: 09.0 Inland Marine/ Animal Mortality Product Name: Initial Equine/Livestock Mortality Program Project Name/Number: Initial Equine / Livestock Mortality Program/EQU-01-FRR-17 Item Schedule Item No. Status Name Number 50 Specific Endorsement EQULM- E Coverage Territory Extension-Specified Territory And Covered Animals 52 Calf In Utero Coverage Extension 53 Sea Transit Extension (Including War) 54 Air Transit Extension (Including War) EQULM- E016 EQULM- E019 EQULM- E020 EQULM- E Sea Transit Extension EQULM- E Air Transit Extension EQULM- E023 Edition Action Specific Readability Date Type Action Data Score Attachments 0817 END New EQULM-E SPECIFIC ENDORSEMENT.pdf 0817 END New EQULM-E COVERAGE TERRITORY EXTENSIONûSP ECIFIEDTERRIT ORY ANDCOVEREDA NIMALS.pdf 0817 END New EQULM-E CALF IN UTERO COVERAGE EXTENSION.pdf 0817 END New EQULM-E SEA TRANSIT EXTENSION (INCLUDING WAR).pdf 0817 END New EQULM-E AIR TRANSIT EXTENSION (INCLUDING WAR).pdf 0817 END New EQULM-E SEA TRANSIT EXTENSION.pdf 0817 END New EQULM-E AIR TRANSIT EXTENSION.pdf PDF Pipeline for SERFF Tracking Number MRTN Generated 12/21/ :19 AM

27 SERFF Tracking #: MRTN State Tracking #: Company Tracking #: EQU-01-FRR-17 State: California Filing Company: Liberty Mutual Insurance Company TOI/Sub-TOI: 09.0 Inland Marine/ Animal Mortality Product Name: Initial Equine/Livestock Mortality Program Project Name/Number: Initial Equine / Livestock Mortality Program/EQU-01-FRR-17 Item Schedule Item No. Status Name Number 57 Road Transit Extension EQULM- E Bull Permanent Disability Endorsement 59 Transit Deductible Endorsement 60 War Coverage Endorsement 61 Abortion Coverage Endorsement 62 Re-Testing Extension Endorsement EQULM- E025 EQULM- E026 EQULM- E027 EQULM- E028 EQULM- E Exclusion Of Terrorism EQULM- E Livestock Mortality Coverage Policy EQULM- P001 Edition Action Specific Readability Date Type Action Data Score Attachments 0817 END New EQULM-E ROAD TRANSIT EXTENSION.pdf 0817 END New EQULM-E BULL PERMANENT DISABILITY.pdf 0817 END New EQULM-E TRANSIT DEDUCTIBLE ENDORSEMENT.pdf 0817 END New EQULM-E WAR COVERAGE ENDORSEMENT.pdf 0817 END New EQULM-E ABORTION COVERAGE ENDORSEMENT.pdf 0817 END New EQULM-E RE- TESTING EXTENSION ENDORSEMENT.pdf 0817 END New EQULM-E EXCLUSION OF TERRORISM.pdf 0817 PCF New EQULM-P Livestock Mortality Coverage Policy.pdf PDF Pipeline for SERFF Tracking Number MRTN Generated 12/21/ :19 AM

28 SERFF Tracking #: MRTN State Tracking #: Company Tracking #: EQU-01-FRR-17 State: California Filing Company: Liberty Mutual Insurance Company TOI/Sub-TOI: 09.0 Inland Marine/ Animal Mortality Product Name: Initial Equine/Livestock Mortality Program Project Name/Number: Initial Equine / Livestock Mortality Program/EQU-01-FRR-17 Item Schedule Item No. Status Name 65 Application for Frozen Semen and/or Frozen Embryos in Storage Insurance 66 Application for Frozen Semen and/or Frozen Embryos in Transit Insurance 67 Frozen Semen And/Or Frozen Embryos In Storage Coverage Policy Declarations 68 Frozen Semen And/Or Frozen Embryos In Storage Coverage Policy Supplemental Declarations Number EQUFE- A001 EQUFE- A002 EQUFE- D001 EQUFE- D Frozen Semen And/Or EQUFE- Frozen Embryos In Transit D003 Coverage Policy Declarations 70 Frozen Semen And/Or EQUFE- Frozen Embryos In Transit D004 Coverage Policy Supplemental Declarations Edition Action Specific Readability Date Type Action Data Score Attachments 0817 ABE New EQUFE-A Frozen Semen And-Or Frozen Embryos in Storage Application.pdf 0817 ABE New EQUFE-A Frozen Semen And-Or Frozen Embryos in Transit Application.pdf 0817 DEC New EQUFE-D Frozen Semen and-or Frozen Embryos in Storage Policy Declarations.pdf 0817 DEC New EQUFE-D Frozen Semen and-or Embryos in Storage Supplemental Declarations.pdf 0817 DEC New EQUFE-D Frozen Semen and-or Frozen Embryos in Transit Policy Declarations.pdf 0817 DEC New EQUFE-D Frozen Semen and-or Frozen Embryos in Transit Supplemental Declarations.pdf PDF Pipeline for SERFF Tracking Number MRTN Generated 12/21/ :19 AM

29 SERFF Tracking #: MRTN State Tracking #: Company Tracking #: EQU-01-FRR-17 State: California Filing Company: Liberty Mutual Insurance Company TOI/Sub-TOI: 09.0 Inland Marine/ Animal Mortality Product Name: Initial Equine/Livestock Mortality Program Project Name/Number: Initial Equine / Livestock Mortality Program/EQU-01-FRR-17 Item Schedule Item No. Status Name 71 Schedule of Endorsements 72 Limited Theft And Unlawful Removal Endorsement 73 Transit Deductible Endorsement Number EQUFE- D005 EQUFE- E003 EQUFE- E Specific Endorsement EQUFE- E Frozen Semen And/Or Frozen Embryos In Storage Coverage Policy EQUFE- P Frozen Semen And/Or EQUFE- Frozen Embryos In Transit P002 Coverage Policy 77 Application for Equine Named Perils Insurance 78 Equine Named Perils Coverage Policy Declarations EQUNP- A001 EQUNP- D001 Edition Action Specific Readability Date Type Action Data Score Attachments 0817 DEC New EQUFE-D Schedule of Endorsements.pd f 0817 END New EQUFE-E LIMITED THEFT UNLAWFUL REMOVAL.pdf 0817 END New EQUFE-E TRANSIT DEDUCTIBLE ENDORSEMENT.pdf 0817 END New EQUFE-E SPECIFIC ENDORSEMENT.pdf 0817 PCF New EQUFE-P Frozen Semen And Or Frozen Embryos In Storage Coverage Policy.pdf 0817 PCF New EQUFE-P Frozen Semen And Or Frozen Embryos In Transit Coverage Policy.pdf 0817 ABE New EQUNP-A Equine Named Perils Application.pdf 0817 DEC New EQUNP-D Equine Named Perils Declarations.pdf PDF Pipeline for SERFF Tracking Number MRTN Generated 12/21/ :19 AM

30 SERFF Tracking #: MRTN State Tracking #: Company Tracking #: EQU-01-FRR-17 State: California Filing Company: Liberty Mutual Insurance Company TOI/Sub-TOI: 09.0 Inland Marine/ Animal Mortality Product Name: Initial Equine/Livestock Mortality Program Project Name/Number: Initial Equine / Livestock Mortality Program/EQU-01-FRR-17 Item Schedule Item No. Status Name 79 Equine Named Perils Coverage Policy Supplemental Declarations 80 Schedule of Endorsements 81 Twelve Months Extension Endorsement 82 Additional Coverage-Colic Mortality 83 Emergency Colic Surgery Coverage 84 Additional Coverage- Accidental Injury Number EQUNP- D002 EQUNP- D005 EQUNP- E008 EQUNP- E009 EQUNP- E010 EQUNP- E Specific Endorsement EQUNP- E Coverage Territory Extension-Specified Territory And Horses EQUNP- E016 Edition Action Specific Readability Date Type Action Data Score Attachments 0817 DEC New EQUNP-D Equine Named Perils Supplemental Schedule.pdf 0817 DEC New EQUNP-D Schedule of Endorsements.pd f 0817 END New EQUNP-E Twelve Months Extension Endorsement.pdf 0817 END New EQUNP-E Colic Mortality.pdf 0817 END New EQUNP-E Emergency Colic Surgery Coverage.pdf 0817 END New EQUNP-E Accidental Injury.pdf 0817 END New EQUNP-E Specific Endorsement.pdf 0817 END New EQUNP-E COVERAGE TERRITORY EXTENSION û SPECIFIED TERRITORY AND HORSES.pdf PDF Pipeline for SERFF Tracking Number MRTN Generated 12/21/ :19 AM

31 SERFF Tracking #: MRTN State Tracking #: Company Tracking #: EQU-01-FRR-17 State: California Filing Company: Liberty Mutual Insurance Company TOI/Sub-TOI: 09.0 Inland Marine/ Animal Mortality Product Name: Initial Equine/Livestock Mortality Program Project Name/Number: Initial Equine / Livestock Mortality Program/EQU-01-FRR-17 Item Schedule Item No. Status Name 87 Equine Named Perils Coverage Policy 88 California Amendatory Endorsement Number EQUNP- P001 EQU-E039- CA Edition Action Specific Readability Date Type Action Data Score Attachments 0817 PCF New EQUNP-P Equine Named Perils Coverage Policy.pdf 0817 END New CALIFORNIA STATE AMENDATORY ENDORSEMENT.pdf Type Legend: ABE Application/Binder/Enrollment ADV Advertising BND Bond CER Certificate CNR Canc/NonRen Notice DEC Declarations/Schedule DSC Disclosure/Notice END Endorsement/Amendment/Conditions ERS Election/Rejection/Supplemental Applications OTH Other PDF Pipeline for SERFF Tracking Number MRTN Generated 12/21/ :19 AM

32 SERFF Tracking #: MRTN State Tracking #: Company Tracking #: EQU-01-FRR-17 State: California Filing Company: Liberty Mutual Insurance Company TOI/Sub-TOI: 09.0 Inland Marine/ Animal Mortality Product Name: Initial Equine/Livestock Mortality Program Project Name/Number: Initial Equine / Livestock Mortality Program/EQU-01-FRR-17 Rate Information Rate data does NOT apply to filing. PDF Pipeline for SERFF Tracking Number MRTN Generated 12/21/ :19 AM

33 SERFF Tracking #: MRTN State Tracking #: Company Tracking #: EQU-01-FRR-17 State: California Filing Company: Liberty Mutual Insurance Company TOI/Sub-TOI: 09.0 Inland Marine/ Animal Mortality Product Name: Initial Equine/Livestock Mortality Program Project Name/Number: Initial Equine / Livestock Mortality Program/EQU-01-FRR-17 Rate/Rule Schedule Item Schedule Item No. Status Exhibit Name Rule # or Page # Rate Action 1 Livestock Mortality Coverage LMIC-EQULM-TOC 08/17, New Program Rates and Rules LMIC-EQULM /17 2 Equine Mortality And Limited LMIC-EM-TOC 08/17, LMIC- New Theft, Unlawful Removal EM /17 Coverage Policy Manual Rates and Rules Previous State Filing Number Attachments Livestock Mortality Rates 0817_ Final (002).pdf LIU Equine Mortality Rates 0817 _Final (002).pdf PDF Pipeline for SERFF Tracking Number MRTN Generated 12/21/ :19 AM

34 LIBERTY MUTUAL INSURANCE COMPANY LIVESTOCK MORTALITY COVERAGE PROGRAM TABLE OF CONTENTS Program Description Base Rates Base Rates continued Premium Modification Plan LMIC-EQULM-1 LMIC-EQULM-2 LMIC-EQULM-3 LMIC-EQULM-4 LMIC-EQULM -TOC 08/17

35 LIBERTY MUTUAL INSURANCE COMPANY LIVESTOCK MORTALITY COVERAGE PROGRAM Program Description The following is a general description of coverages, minimum premiums, and additional charges for the Livestock Mortality Program. A. Liberty Mutual Insurance Company will utilize independent rates, rules, and forms for this program. Full mortality coverage for animals other than horses is provided using the Livestock Mortality Coverage, EQULM-P001. Rates are based on the breed, age and use of the animal and are computed based on the indicated percentage of the value of the animal. These percentages are shown on page LMIC-EQULM-2. B. If full Mortality Coverage is not desired, coverage may be written on a specified peril basis using the Specified Perils Endorsement, EQULM-E001. Rates for Specified Perils are shown on page LMIC-EQULM-3. C. Coverage is also available for frozen animal semen and/or embryos. Coverage for the storage of frozen animal semen and/or embryos is available using the Frozen Semen or Embryos in Storage Coverage, EQUFE-P001. Coverage for the transport of frozen animal semen and/or embryos is available using the Frozen Semen or Embryos in Transit Coverage, EQUFE-P002. Rates for Frozen Semen or Embryos in Storage are shown on page LMIC- EQULM-3. D. Rates for the optional attachment of Livestock Infertility (Accident, Sickness, Disease) Endorsement, EQULM- E014, and Calf-In-Utero Extension Endorsement, EQULM-E019, are shown on page LMIC-EQULM-3. E. Rates for the optional attachment of Twelve Month Extension Endorsement, EQULM-E008, Coverage Territory Extension Specified Territory and Animals, EQULM-E016, are shown on page LMIC-EQULM-3. F. The Livestock Mortality Premium Modification Plan may be found on page LMIC-EQULM-4. G. A policy writing minimum premium applies to this coverage for each annual period. 1. For livestock the minimum premium is $ For frozen semen and/or embryos the minimum premium is $50 H. The annual policy premium may be paid in installments. There will be no additional charges or service fees when an insured elects to use an installment plan to pay the policy premium. I. Policy Cancellations - Pro Rata Calculation Retain the Policy Writing Minimum Premium when return premium is not calculated using the pro rata criteria below or cancelled at the insured s request at less than pro rata, except when a policy is cancelled as of the inception date. Compute return premium pro rata and round to the next higher whole dollar when a policy is cancelled: 1. At the Company's request; 2. And rewritten in the same company or company group; 3. After the first year for a prepaid policy written for a term of more than one year. LMIC-EQULM-1 08/17

36 LIBERTY MUTUAL INSURANCE COMPANY LIVESTOCK MORTALITY COVERAGE PROGRAM Base Rates 1. The premium charge for full mortality coverage is determined by applying the appropriate percentage from the following table to the value of the animal. The rates shown below are applicable for animals up to $10,000 insured value. Cattle Rates (all Breeds) Class Use Sex Age Annual Rate 1 Month Rate 3 Month Rate 6 Month Rate Beef Any Any 14 days through 49 days 10.0% 4.0% 6.0% 6.7% Any Any 50 days through 90 days 8.0% 3.2% 4.8% 5.3% Any Bull 91 days through6 Years 6.0% 2.4% 3.6% 4.0% Any Bull 7 years 7.0% 2.8% 4.2% 4.7% Any Bull 8 years 8.0% 3.2% 4.8% 5.3% Any Female 91 days through 7 years 6.0% 2.4% 3.6% 4.0% Any Female 8 years 7.0% 2.8% 4.2% 4.7% Any Female 9 years 8.0% 3.2% 4.8% 5.3% Dairy Any Any 14 days through 49 days 12.0% 4.8% 7.2% 8.0% Any Any 50 days through90 days 10.0% 4.0% 6.0% 6.7% Any Bull 91 days through 6 years 6.0% 2.4% 3.6% 4.0% Any Bull 7 years 7.0% 2.8% 4.2% 4.7% Any Bull 8 years 8.0% 3.2% 4.8% 5.3% Any Female 91 days through 5 years 8.0% 3.2% % Any Female 6 years 9.0% 3.6% 5.4% 6.0% Any Female 7 years 10.0% 4.0% 6.0% 6.7% For Policies with six head of cattle or more, apply a 1% discount to the cattle premium. Other Breeds Breed Use Sex Age Rate Dogs Any Any 120 days to 7 years 8.75% Dogs Whelping Female 120 days to 7 years 10.25% Pigs Any Any 90 days to 3 years 12.0% Sheep Any Any 90 days to 3 years 15.0% Goats Any Any 90 days to 3 years 15.0% Alpaca/Llama (domestic) Any Any 24 hours to 30 days 7.5% Alpaca/Llama (domestic) Any Any 31 days to 90 days 6.0% Alpaca/Llama (domestic) Any Any 91 days to 11 years 4.0% Alpaca/Llama (domestic) Any Any 12 years 4.5% Alpaca/Llama (domestic) Any Any 13 years 5.5% Alpaca/Llama (domestic) Any Any 14 years 6.5% Alpaca/Llama (imported) Any Any 24 hours to 30 days 7.5% Alpaca/Llama (imported) Any Any 31 days to 90 days 6.0% Alpaca/Llama (imported) Any Any 91 days to 11 years 4.0% Alpaca/Llama (imported) Any Any 12 years 5.5% Alpaca/Llama (imported) Any Any 13 years 6.5% Alpaca/Llama (imported) Any Any 14 years 7.5% LMIC-EQULM-2 08/17

37 LIBERTY MUTUAL INSURANCE COMPANY LIVESTOCK MORTALITY COVERAGE PROGRAM Base Rates Con t 2. The annual premium charge for specified peril mortality coverage is determined by applying a percentage of 1.00% of the insured value, for animals identified above. Additional coverage may be provided by attaching the Optional Perils Coverage Endorsement, EQULM-E002. The charge to provide this coverage will be 0.25% of the insured value. 3. Theft Coverage may be provided by attaching endorsement EQULM-E003, Theft Coverage Endorsement, for a charge of 0.25% of the insured value. 4. Calf-In-Utero Coverage Endorsement, EQULM-E019, is available per the following rate table: Calves with Additional Coverage through Rate per value 49 days after birth 13.0% 183 days after birth 17.5% 365 days after birth 21.0% 5. The premium charge when providing coverage for the storage of frozen animal semen and/or embryos is determined by applying a percentage of 1.00% up to $10,000 per tank. This charge is applicable to the storage of frozen animal semen and/or embryos up to 60 days. 6. Coverage for livestock infertility may be provided by attaching endorsement EQULM-E014, Livestock Infertility (Accident, Sickness, Disease) Endorsement. Coverage may be made available for male Alpacas/Llamas fourteen years of age and younger. The charge to provide this coverage will be 1% per $100 of insured value. 7. Individual risk situations may be submitted to the Company for rating. The Company will maintain a file, available upon request, including details of any factors used in determining the rate for any individual risk situation. Individual risk situations include, but are not limited to: A. Deductible insurance (aggregate and each and every loss) when the total amount insured is at least $100,000 or at least 10 animals. B. Coverage for unborn fetus and other fertility and/or breeding exposures, including the Abortion Coverage Endorsement, EQULM-E028. C. Livestock in transit. D. Exotic animals not identified above. This includes animals whose breed is listed above, where the animal s age and/or value may not qualify it for the class rate. E. Frozen semen or embryos in transit, including the use of the Frozen Semen and/or Frozen Embryos in Transit Coverage, EQUFE-P Twelve Month Extension Endorsement, EQULM-E008, is available for a charge of $0.15 per $100 insured. 9. Coverage Territory Extension Specified Territory and Covered Animals, EQULM-E016, provides coverage for animals in transit while outside of the USA and Canada is available for an additional charge of 0.00% to 2.0% of the animal s value. The charge will be determined based upon destination (for example: transit between USA/Canada and Western Europe: 0.5%, USA/Canada and Far East: 1.0%, USA/Canada and Middle East: 1.5%, USA/Canada and South America: 2.0%) LMIC-EQULM-3 08/17

38 LIBERTY MUTUAL INSURANCE COMPANY LIVESTOCK MORTALITY COVERAGE PROGRAM Premium Modification Plan A premium modification may be applied to the individual account s otherwise chargeable premium in accordance with the following table, subject to a maximum credit or debit of 25%, to reflect such characteristics of the risks as not reflected in its experience. Range of Modification Risk Characteristics Credit Debit Loss Experience No Loss in last 3 years Not more than one loss in last 3 years and that loss less than $2,500 5% 2.5% 0% 0% Total Losses in last 3 years exceed $10,000 and/or any single loss greater than $5,000 0% 5% Total Losses in last 3 years exceed $25,000 0% 10% Prior Health History 20% 20% Care & Maintenance of Animals Shown in rodeo events 5% 20% Stabled in open pasture 5% 10% Regular worming program 0% 10% Regular inoculation program 0% 10% Video monitors 3% 3% Care & Maintenance of Facilities Age & Condition of Buildings 5% 5% Condition or type of stabling and/or fencing 5% 5% Management Number of years experience of management 25% 10% Six or more coverage animals (other than cattle) 15% 0% Prior Insurance Coverage by any carrier 10% 0% Available Surgical Facility Distance in miles from stable location 5% 5% Animals regular veterinarian on staff 5% 5% Emergency transportation availability 5% 5% Animal Transportation Number of times animal transported 5% 15% Distance animal transported 5% 15% No travel required for breeding (artificial insemination) 10% 5% LMIC-EQULM-4 08/17

39 LIBERTY MUTUAL INSURANCE COMPANY LIVESTOCK MORTALITY COVERAGE PROGRAM

40 LIBERTY MUTUAL INSURANCE COMPANY EQUINE MORTALITY AND LIMITED THEFT, UNLAWFUL REMOVAL COVERAGE POLICY FORM TABLE OF CONTENTS Program Description Base Rates Thoroughbreds Racing & Breeding Stock Base Rates Standardbreds Racing & Breeding Stock Base Rates Quarterhorses Racing Stock Base Rates Show/Performance/Pleasure/Breeding Horses Additional Coverages Additional Coverages Continued Additional Coverages Continued Additional Coverages Continued Policy Experience Rating Plan Premium Modification Plan LMIC-EM-1 LMIC-EM-2 LMIC-EM-3 LMIC-EM-3 LMIC-EM-4 LMIC-EM-5 LMIC-EM-6 LMIC-EM-7 LMIC-EM-8 LMIC-EM-9 LMIC-EM-10 LMIC-EM-TOC 08/17

41 LIBERTY MUTUAL INSURANCE COMPANY EQUINE MORTALITY AND LIMITED THEFT, UNLAWFUL REMOVAL COVERAGE POLICY FORM Program Description The following is a general description of coverages, minimum premiums, and additional charges for the Equine Mortality Program. A. Liberty Mutual Insurance Company will utilize independent rates, rules, and forms for this program. Full mortality coverage is provided using the Equine Mortality And Limited Theft, Unlawful Removal Coverage Policy, EQU-P001. Rates are based on the breed, age and use of the horse and are computed based on the indicated percentage of the value of the horse. Specified Peril coverage may be provided using the Specified Perils Endorsement, EQU-E001. These percentages are shown on page LMIC-EM-2. B. If full Mortality Coverage is not desired, coverage may be written on a specified peril basis using the Equine Named Perils Coverage, EQUNP-P001. Rates for specified perils are shown on page LMIC-EM-2. C. Rates for Additional Coverage(s) including Permanent Disability, Surgical Extension, etc. are shown on page LMIC-EM-5, LMIC- E M-6, LMIC-EM-7., and LMIC-EM-8. D. The Equine Mortality Premium Modification Plan may be found on page LMIC-EM-10. E. A $200 policy writing minimum premium applies to this coverage for each annual period. F. The annual policy premium may be paid in installments. There will be no additional charges or service fees when an insured elects to use an installment plan to pay the policy premium. G. Policy Cancellations - Pro Rata Calculation Retain the Policy Writing Minimum Premium when return premium is not calculated using the pro rata criteria below, except when a policy is cancelled as of the inception date. Compute return premium pro rata and round to the next higher whole dollar when a policy is cancelled: 1. At the Company's request 2. And rewritten in the same company or company group. 3. After the first year for a prepaid policy written for a term of more than one year. LMIC-EM-1 08/17

42 LIBERTY MUTUAL INSURANCE COMPANY EQUINE MORTALITY AND LIMITED THEFT, UNLAWFUL REMOVAL COVERAGE POLICY FORM Base Rates The following percentages are applied to the value of the horse in order to determine the appropriate premium. 1. Named/Specified Perils A. Horses used for racing and/or race breeding: 1)All Named Perils 1.00% 2)Excluding Coverage at the Track 0.60% B. Horses used for other than racing and/or race breeding stock: 0.60% 2. Full Mortality A. Thoroughbreds Racing & Breeding Stock 1) Foals up to One Year a) 24 hours through 30 days 5.50% b)31 days through 90 days 4.50% c) 91 days through September % d)october 1 through December % 2) Yearlings (One Year olds) a) January 1 through October % b) November 1 through December % 3) Older than One Year Use Sex Age Value Rate Racing Colts/Fillies 2 through 6 years Up to $50, % Racing Colts/Fillies 2 through 6 years $50,000 and over 4.95% Racing Colts/Fillies 7 through 8 years Any 7.50% Racing Gelding 2 through 3 years Up to $50, % Racing Gelding 2 through 3 years $50,000 and over 4.95% Racing Gelding 4 through 5 years Any 6.50% Racing Gelding 6 through 8 years Any 7.50% Breeding Stallions/Mares 2 through 14 years Any 3.25% Breeding Stallions/Mares 15 years Any 5.90% Breeding Stallions/Mares 16 years Any 8.40% Breeding Stallions/Mares 17 years Any 10.9% Breeding Stallions/Mares 18 years Any 13.4% LMIC-EM-2 08/17

43 LIBERTY MUTUAL INSURANCE COMPANY EQUINE MORTALITY AND LIMITED THEFT, UNLAWFUL REMOVAL COVERAGE POLICY FORM Base Rates, Continued B. Standardbreds Racing & Breeding Stock 1) Foals up to One Year a)24 hours through 7days 5.95% b)8 days through 30 days 5.50% c) 31 days through 90 days 5.00% d)91 days through September % e) October 1 through December % 2) Yearlings (One Year olds) a) January 1 through November % b) December 1 through December % 3) Older than One Year Use Sex Age Value Rate Racing Colts/Fillies Any Any 3.60% Racing Geldings 2 through 3 years Any 3.60% Racing Geldings 4 through 5 years Any 4.00% Racing Geldings 6 through 8 years Any 4.75% Breeding Stallions/Mares 2 through 14 years Any 3.00% Breeding Stallions/Mares 15 years Any 5.90% Breeding Stallions/Mares 16 years Any 8.40% Breeding Stallions/Mares 17 years Any 10.9% Breeding Stallions/Mares 18 years Any 13.4% 4)A stable discount is to be applied to the Standardbred horse premium for those who insure a minimum of five horses with the company at one time. The discount is based upon the total insured value as follows: a) Less than $250,000 of total insured values 0.0% b)$250,000 though $500,000 of total insured values 5.0% c) Over $500,000 of total insured values 10.0% C. Quarterhorses Racing Stock includes Appendix Quarterhorse, Quarterhorse, Paint, Appaloosa breeds reared/trained for racing 1) Foals up to One Year a)24 hours through 7days 5.95% b)8 days through 30 days 5.50% c) 31 days through 90 days 5.00% d)91 days through September % e) October 1 through December % 2) Yearlings (One Year olds) a) January 1 through October % b) November 1 through December % 3) Older than One Year Use Sex Age Value Rate Racing Colts/Fillies 2 through 7 years Under $25, % Racing Colts/Fillies 2 through 7 years $25,000 and over 7.00% Racing Geldings 2 through 7 years Any 8.00% LMIC-EM-3 08/17

44 LIBERTY MUTUAL INSURANCE COMPANY EQUINE MORTALITY AND LIMITED THEFT, UNLAWFUL REMOVAL COVERAGE POLICY FORM Base Rates, Continued D. All other Breeds 1. Foals a. Halter Show & Halter Breeding Stock i. 24 hours through 30 days 12.0% ii. 31 days through 90 days 10.0% b. All other (except miniature and draft horses) i. 24 hours through 30 days 6.0% ii. 31 through 90 days 5.0% 2. Show/Performance/Pleasure/Breeding Horses Age Breed Use Value Over 90 days thru 1 year Over 1 year thru 7 years over 7 years thru 15 years Over 15 years thru 16 years Over 16 years thru 17 years Over 17 years thru 18 years Miniature Solely for Driving Any 10.00% 3.50% 3.50% 7.00% 9.00% 11.00% Miniature Excluding horses uses solely for Driving Any 10.00% 4.50% 4.50% 7.00% 9.00% 11.00% Draft Any Any 10.00% 4.50% 4.50% 7.00% 9.00% 11.00% Arabian, Arabian Cross, National Show Horse American Saddlebred Morgan Horses Tennessee Walking Horses Tennessee Walking Horses Tennessee Walking Horses Excluding horses used Solely for Endurance, Polo, Reining, Racing Steeplechase,or Hurdle Excluding horses used solely for Polo or Reining Excluding horses used solely for Polo or Reining Solely for Padded Show Any 2.85% 2.85% 2.85% 5.00% 7.00% 9.00% Any 3.00% 3.00% 3.00% 5.00% 7.00% 9.00% Any 3.00% 3.00% 3.00% 5.00% 7.00% 9.00% Any 4.50% 4.50% 4.50% 6.00% 8.00% 10.00% Excluding Horses used $50,000 solely for Padded Show or less 4.00% 4.00% 4.00% 6.00% 8.00% 10.00% Excluding Horses used Over solely for Padded Show $50, % 4.50% 4.50% 6.00% 8.00% 10.00% Paso Fino Excluding horses used solely for Polo or Reining Any 5.00% 5.00% 5.00% 7.00% 9.00% 11.00% Any Solely for Polo Any 4.50% 4.50% 4.50% 6.00% 8.00% 10.00% Any Solely for Reining Any 3.00% 3.00% 3.00% 5.00% 7.00% 9.00% Not Otherwise Classified Solely for Endurance Any 4.00% 4.00% 4.00% 6.00% 8.00% 10.00% Not Otherwise Classified Solely for Dressage Any 3.00% 3.00% 3.00% 5.00% 7.00% 9.00% Ponies Not Otherwise Classified Not Otherwise Classified Not Otherwise Classified Not Otherwise Classified Not Otherwise Classified Not Otherwise Classified Not Otherwise Classified Solely for Hunter and/or Jumper Solely for Hunter and/or Jumper Solely for Eventing Any 3.00% 3.00% 3.00% 5.00% 7.00% 9.00% Any 3.50% 3.50% 3.50% 5.00% 7.00% 9.00% Any 4.25% 4.25% 4.25% 6.00% 8.00% 10.00% Solely for Halter Show or Halter Show Breed Stock Any 7.00% 7.00% 7.00% 10.00% 14.00% 18.00% Solely for Racking $50,000 or less 4.00% 4.00% 4.00% 6.00% 8.00% 10.00% Solely for Racking Over $50, % 4.50% 4.50% 6.00% 8.00% 10.00% Barrel/Roping/Rodeo Any 3.50% 3.50% 3.50% 5.00% 7.00% 9.00% Not Otherwise Classified Any 3.25% 3.25% 3.25% 5.00% 7.00% 9.00% LMIC-EM-4 08/17

45 Base Rates, Continued 3. Horses used for Racing LIBERTY MUTUAL INSURANCE COMPANY EQUINE MORTALITY AND LIMITED THEFT, UNLAWFUL REMOVAL COVERAGE POLICY FORM Breed Use Value Sex Age - Over 1 year thru 7 years Arabian, Arabian Cross, Used Solely for Racing, National Show Horse Steeplechase or Hurdle Any Any 4.95% Used Solely for Any Steeplechase and/or Any Any 7.5% Hurdle 4. Over age Horses Full mortality coverage is available for horses over 18 years in age. The rate for this coverage will be the charge for a horse Over 17 years thru 18 years plus an additional 3% of the horse s insured value for each year the horse is over the age of 18. Additional Coverages The following additional coverages may be added to full mortality coverage for the rate shown below. 1. Permanent Disability Coverage Endorsement, EQU-E025, is available for the following additional charge. Recovery Percentage Rate 60% 3.85% 75% 4.95% 2. Limited Permanent Disability Endorsement, EQU-E024, is available for the following additional charge. Recovery Percentage Rate 60% 2.0% 3. Surgical Endorsement, EQU-E012, is available for Show/Performance/Pleasure/Breeding horses between 30 days through 18 years of age, subject to a $50 deductible per claim. Limit of Insurance Rate 1/1/ /31/2017 Rate 1/1/ /31/2018 Rate 1/1/ /31/2019 Rate 1/1/ /31/2020 First $5,000 $205 $215 $225 $236 Each additional $1,000 $13 $14 $15 $16 The charge will increase 5% over the prior year s charge for each calendar year following 12/31/2020. LMIC-EM-5 08/17

46 Additional Coverages, Continued LIBERTY MUTUAL INSURANCE COMPANY EQUINE MORTALITY AND LIMITED THEFT, UNLAWFUL REMOVAL COVERAGE POLICY FORM 4. Medical / Surgical Coverage With Copayment Included Endorsement, EQU-E013, is available for Show/Performance/Pleasure/Breeding horses between the ages of 30 days through 18 years. Various co-pays are available for this coverage, where the insurer pays only the selected percentage of each loss, after the application of the deductible. Apply the corresponding factor to the coverage rate if this option is desired. Percentage of Each Loss Paid Factor 80% % % % 0.75 Various deductibles per claim are available for this coverage. To determine the coverage premium multiply the basic coverage rate by the applicable factor. Deductible Factors Deductible Factor Deductible Factor $ $ $ $ $ $ $ $1, The following charges are per $100 of insurance, which contemplate full co-pay (100%) and a $150 deductible per claim. Coverage for limits of insurance in excess of $5,000 is not to be modified by deductible factors. The charge for medical/surgical coverage will increase 5% over the prior year s charge for each calendar year following 12/31/2020. Limit of Insurance Rate per $100 of value 1/1/ /31/2017 Rate per $100 of value 1/1/ /31/2018 Rate per $100 of value 1/1/ /31/2019 Rate per $100 of value 1/1/ /31/2020 $5,000 or less $10.25 $10.76 $11.30 $11.87 Amount exceeding $5,000 $3.25 $3.41 $3.58 $ Continuous Coverage Endorsement, EQU-E009, available for no additional premium for eligible. Horses between the ages of 24 hours through 15 years are considered eligible, unless they have a pre-existing physical condition. Horses with preexisting physical conditions may be eligible, but will be individually evaluated to determine the severity of the condition. 6. Twelve Month Extension Endorsement, EQU-E008, is available for horses up to 18 years old. This coverage is provided to horses of any breed for no additional charge when attached to the Equine Mortality Coverage. This coverage is available to be attached to the Equine Named Perils Coverage, for an additional charge of $0.15 per $100 insured. For horses 14 years and older the rating basis will be reduced to reflect the coverage provided by the endorsement. 7. Coverage for elective surgery is available for an additional charge of % of the horse s value. The charge will be determined based upon the complexity of the surgery (for example: minor surgery: 1%, moderate surgery: 2%, major surgery: 3%). 8. Coverage Territory Extension Specified Territory and Horses, EQU- E016, provides coverage for horses in transit while outside of the USA and Canada is available for an additional charge of 0.00% to 2.0% of the horse s value. The charge will be determined based upon destination (for example: transit between USA/Canada and Western Europe: 0.5%, USA/Canada and Far East: 1.0%, USA/Canada and Middle East: 1.5%, USA/Canada and South America: 2.0%) LMIC-EM-6 08/17

47 Additional Coverages, Continued LIBERTY MUTUAL INSURANCE COMPANY EQUINE MORTALITY AND LIMITED THEFT, UNLAWFUL REMOVAL COVERAGE POLICY FORM 9. Stallion Infertility Endorsement (Accident, Sickness, & Disease), EQU-E014, is available for horses 18 years old or younger for the following additional charge of the insured value. Breed Use Age Sex Charge Thoroughbred & Standardbred Racing Five years and younger Colt 0.25% Thoroughbred & Standardbred Breeding Stock Not Otherwise Classified Not Otherwise Classified 0.35% Not Otherwise Classified Not Otherwise Classified Not Otherwise Classified Not Otherwise Classified 0.50% 10. Emergency Colic Surgery Endorsement, EQU-E0010, is provided at a limit of $5,000 for no additional charge for all eligible horses. Horses between the ages of 30 days through 18 years are considered eligible, unless they have a prior history of colic. Horses with a prior history of colic may be eligible, but will be individually evaluated to determine the severity of the condition. Coverage may also be provided at a limit of $10,000 for an additional charge of $150. This coverage can be attached to the Equine Mortality Coverage. 11. Regardless of the limit of insurance provided for automatic additions, there is no additional charge when using the Automatic Additions Extension, EQU-E Emergency Life Saving Surgical Endorsement, EQU-E011, is available at a limit of $10,000 for an additional charge of $150, with no applicable deductible. 13. Private Horse Owners Liability Endorsement, EQU-E038, is available on a per horse basis for the following additional premiums: Each Occurrence Limit Annual Aggregate Limit Premium per horse $500,000 $1,500,000 $65 $1,000,000 $3,000,000 $95 The following additional coverages may be added to Equine Named Perils Coverage, EQUNP-P001, for the rate shown below. 14. Accidental Injury Endorsement, EQUNP-E011, is available for horses 24 hours through 19 years of age, excluding yearlings, racehorses or horses in race training, for the following additional charge of the insured value: Age Sex Charge 24 hours through 89 days Any 1.00% 90 days through 19 years Any 0.60% 15. Colic Mortality Extension Endorsement, EQUNP-E009, is available for horses 30 days through 15 years of age, for an additional premium of 0.60% per $100 of insured value. 16. Emergency Colic Surgery Extension Endorsement, EQUNP-E010, is available at a limit of $5,000 for an additional charge of $150. LMIC-EM-7 08/17

48 LIBERTY MUTUAL INSURANCE COMPANY EQUINE MORTALITY AND LIMITED THEFT, UNLAWFUL REMOVAL COVERAGE POLICY FORM Additional Coverages, Continued 17. Prospective Foal Coverage Endorsement, EQUNP-E019, is available for broodmares who are 42 days in foal per the following schedule: Mares up to and including 9 years of age at time of covering with no blemishes: Last Service Date of Mare Rate to 7 days after birth Rate to 45 days after birth 42 days - 59 days 15.50% 16.50% 60 days - 89 days 15.25% 16.25% 90 days days 14.75% 15.75% 120 days days 14.00% 15.00% 150 days days 13.25% 14.25% 180 days days 12.50% 13.50% 210 days days 11.75% 12.75% 240 days days 11.00% 12.00% 270 days or more 10.25% 11.25% Overage Mares Age of Mare Additional Premium years 0.50% 14 years 3.00% 15 years 5.00% 16 years 7.00% 90 Day Extension Clause: +0.25% 18. Accredited Professional Association Credit A credit of up to 10% will be applied to the policy premium for all members of an accredited professional association providing assistance to its members in areas such as loss control, safety procedures and business management. The credit will be applied to all accounts that have received certification from an approved accreditation process. The percentage credit is based on the extent and criteria of the certification required for the accreditation. LMIC-EM-8 08/17

49 LIBERTY MUTUAL INSURANCE COMPANY EQUINE MORTALITY AND LIMITED THEFT, UNLAWFUL REMOVAL COVERAGE POLICY FORM Policy Experience Plan 1. To be eligible for the Policy Experience Plan, an insured must meet all of the following criteria: a. The annual total insured value may not be less than $500,000. b. Full Mortality coverage is provided. 2. The application of the Policy Experience Plan is optional and may be used only upon election by the insured and acceptance by the insurance carrier. 3. Either the Profit Commission Endorsement, EQU-E032 or the No Claims Bonus Endorsement, EQU-E030 will be attached to those policies when the insured and insurance carrier agree that the risk is to be experience rated. 4. The premium adjustment is to be calculated as follows: a. The policy premium is calculated at the beginning of the policy year based upon the standard rating rules found within the Equine Mortality program. Policy endorsements will also be rated using the standard rating rules. b. Only one experience adjustment is to be made. c. Determine the actual reported losses and allocated loss adjustment expenses. The losses will be evaluated within one month of the policy expiration date. d. The expected losses and allocated loss adjustment expenses will be determined by multiplying the annual premium by the company s permissible loss ratio of e. All insured s experience is given a credibility factor. The credibility factor will be selected from a range of 5% to 20%, based upon the total insured value and the endorsement attached to the policy. f. An experience premium adjustment will be made: i. To policies using endorsement EQU-E030 only if the insured has not incurred any actual losses and allocated loss adjustment expenses. ii. To policies using endorsement EQU-E032 if the expected losses and allocated loss adjustment expenses are higher than the insured s actual losses and allocated loss adjustment expenses. g. To determine the applicable experience premium adjustment multiply the selected credibility factor by the difference between the expected losses and allocated loss adjustment expenses and the insured s actual losses and allocated loss adjustment expenses. LMIC-EM-9 08/17

50 LIBERTY MUTUAL INSURANCE COMPANY EQUINE MORTALITY AND LIMITED THEFT, UNLAWFUL REMOVAL COVERAGE POLICY FORM Individual Risk Situations Individual risk situations may be submitted to the Company for rating. The Company will maintain a file, available upon request, including details of any factors used in determining the rate for any individual risk situation. Individual risk situations include, but are not limited to: Deductible insurance (aggregate) when the total amount insured is at least $100,000. Coverage for fertility and/or breeding exposures. Insured values greater than $500,000. Premium Modification Plan A premium modification may be applied to the individual account s otherwise chargeable premium in accordance with the following table, subject to a maximum credit or debit of 25%, to reflect such characteristics of the risks as not reflected in its experience. Range of Modification Risk Characteristics Loss Experience & Prior Health History Credit 20% Debit 20% Care & Maintenance of Horses Shown in rodeo events 5% 20% Stabled in open pasture 5% 10% Regular worming program 0% 10% Regular inoculation program 0% 10% Video monitors 3% 3% Care & Maintenance of Facilities Age & Condition of Buildings 5% 5% Condition or type of stabling and/or fencing 5% 5% Management Number of years experience of management 10% 10% Available Surgical Facility Distance in miles from stable location 5% 5% Horses regular veterinarian on staff 5% 5% Emergency transportation availability 5% 5% Horse Transportation Number of times horse transported 5% 15% Distance horse transported 5% 15% No travel required for breeding (artificial insemination) 10% 5% LMIC-EM-10 08/17

51 SERFF Tracking #: MRTN State Tracking #: Company Tracking #: EQU-01-FRR-17 State: California Filing Company: Liberty Mutual Insurance Company TOI/Sub-TOI: 09.0 Inland Marine/ Animal Mortality Product Name: Initial Equine/Livestock Mortality Program Project Name/Number: Initial Equine / Livestock Mortality Program/EQU-01-FRR-17 Supporting Document Schedules Satisfied - Item: Comments: Attachment(s): Item Status: Status Date: Satisfied - Item: Comments: Attachment(s): Item Status: Status Date: Satisfied - Item: Comments: Attachment(s): Item Status: Status Date: Satisfied - Item: Comments: Attachment(s): Item Status: Status Date: New Prior Approval Rate Application PriorAppRateAPL_Ed LMIC Equine final xlsm PriorAppRateAPL_Ed LMIC Equine final pdf CA Exhitits 16 revised.pdf Copy of PriorAppRateTl_Ed LMIC Equine Revised.xlsm Exhibit 18.pdf Copy of PriorAppRateTl_Ed LMIC Equine Revised.pdf Actuarial Memorandum LMIC Equine Memorandum CA.pdf Authorization Letter A third party authorization letter is attached. MC Authorization Letter - LMIC Letterhead -2017TM (002).pdf Rate Comparison LIU Equine Mortality Rate Comparison CA.pdf PDF Pipeline for SERFF Tracking Number MRTN Generated 12/21/ :19 AM

52 Instructions for Completing the Prior Approval Rate Application Note: For information on populating the application in its entirety, including the Prior Approval Rate Application, Prior Approval Rate Template and Standard Exhibits Template, refer to the complete Prior Approval Rate Filing Instructions posted in PDF format on the CDI website, below: 1) Enter general filing characteristics associated with this application as well as company-specific information on the "1.General" page. Areas of insurer input are generally identified with blue font text and/or light blue outlined boxes. If this filing contains group data, select the appropriate indicator on the "1.General" page. The "2.Group" page will automatically unhide to allow for the identification of each company to which this filing applies. 2) Enter the type of filing to which this application applies. Complete all exhibits and Prior Approval Rate Application pages required for the designated type of filing on the "3.Filing Type" page, in addition to the Prior Approval Rate Template and Standard Exhibits Template, where applicable. Refer to the Prior Approval Filing Instructions for more information. 3) On the "6.Program Detail" page, provide premium, loss and DCCE information for the entire line of business as shown in your company's Annual Statement as well as for each separate program that comprises your company's line of business. Programs with less than $25M in premium each can be combined into one entry. The total of all programs must reconcile to the total Annual Statement line of business for each year provided. Click the "Add 5 Programs" button if additional programs are required. If filing to be submitted is a group filing, populate the page with group data. 4) If this filing includes a variance request, select the appropriate indicator on the "1.General" page. The "11.Variance Request" page will automatically unhide to allow for the identification and impact of each variance being requested. Final decisions regarding variances will be made by the CDI and/or administrative hearing. 10/24/2016 Edition Prior Approval Rate Application

53 State of California Company: Liberty Mutual Insurance Company Department of Insurance (CDI) Line: Inland Marine PRIOR APPROVAL RATE APPLICATION FOR PROPERTY & LIABILITY LINES GENERAL INFORMATION Completed by: Linda Rothwell Date: 09/14/17 Your File #: EQU-01-FRR-17 (15 Character Maximum) Filing Characteristics DEPARTMENT USE ONLY Does this filing include a variance request? (Page 11 hidden) CDI File #: If yes, SERFF #: Is this a variance request submitted after the prior approval application to which it applies? Provide the applicable CDI File #: Filed Date: Compliance Date: Public Notice Date: Does this file contain group data? If yes, complete Page 2. (Page 2 hidden) Deemer Date: Is this a specialty filing? Intake Analyst: Line Type: Bureau/Senior: General Line : Group Filing?: Yes No Subline: Equine & Livestock Mortality X-Reference #: Program: Equine & Livestock Mortality Filing Type: Rate Rule Provide the most recent applicable CDI file # in this line, subline and/or program: New Program Variance % Change: Company Information Company Name: Group Name: Liberty Mutual Insurance Company Liberty Mutual Insurance Company NAIC Company Code: NAIC Group Code: 0111 Organized under the laws of the State of: Massachusetts Home Office: Contact Name/Title: 175 Berkely Street, Boston, MA Linda Rothwell / Senior State Filing Analyst Toll Free Phone #: Fax #: Address: Mailing Address: lrothwell@martincompanyus.com PO Box 70, Edgemont, PA I declare under penalty of perjury under the laws of the State of California, that the information filed is true, complete, and correct, and that price optimization methods or models have not been used in the development of the final rates for any segment of the filed rating plan. s/ Linda Rothwell Authorized Signature Date of Filing Telephone # Refer to CDI website below for the most current rate template and prior approval factors: September 14, /24/2016 Edition Prior Approval Rate Application Page 1

54 State of California Company: Liberty Mutual Insurance Company Department of Insurance (CDI) Line: Inland Marine FILING TYPE The purpose of this filing is (check all that apply): Type of Filing Required Documentation 1,2,3 New Program (Includes adoption of advisory organization loss costs, forms and rules.) Pages 1 through 4, 8 through 10 & 12, Exhibit 16 plus Prior Approval Rate Template Rates (Includes adoption of advisory organization loss costs.) Rate increase Rate decrease Revenue-neutral change (zero percent overall impact) Pages 1 through 8 & 12, Exhibits 1-17 & 20, plus Prior Approval Rate Template Pages 1 through 8 & 12, Exhibits 1-17 & 20, plus Prior Approval Rate Template Pages 1 through 8 & 12, Exhibits 1-17 & 20, plus Prior Approval Rate Template Variance Request Filed together with the prior approval application to which it applies. Page 11, Exhibit 13 plus Prior Approval Rate Template Filed after the prior approval application to which it applies. Pages 1 through 4, 11 & 12, Exhibit 13 plus Prior Approval Rate Template Coverage s (Includes adoption of advisory organization forms.) With rate impact Pages 1 through 9 & 12, Exhibits 1-17 & 20 plus Prior Approval Rate Template Without rate impact Pages 1 through 4, 9 & 12 Rules and Underwriting Guidelines With rate impact Without rate impact (Includes adoption of advisory organization rules.) Pages 1 through 8, 10 & 12, Exhibits 1-18 & 20 plus Prior Approval Rate Template Pages 1 through 4, 10 & 12 plus Exhibit 18 1 Page numbers refer to pages of the Prior Approval Rate Application. Where Exhibits 5, 7 and 8 are required, applications must also include a completed Standard Exhibits Template. Exhibit 21 must be included for all Specialty filing applications. 2 All Private Passenger Automobile class plans must be filed separately from the Prior Approval Rate Applications. 3 Page 6 of the Prior Approval Rate Application is required solely for insurers submitting filings for a subset of their Homeowners Multiple Peril line. 10/24/2016 Edition Prior Approval Rate Application Page 3

55 State of California Company: Liberty Mutual Insurance Company Department of Insurance (CDI) Line: Inland Marine IMPACT OF PROPOSED CHANGES Proposed Overall Rate Change: 0.0% Proposed Earned Premium Per Exposure: $1, Proposed Effective Date: 11/01/17 Coverage/ 1 Indicated % Change Proposed % Change Adjusted Earned Premium 2,3 Projected Earned Premium 3 (1) Equine Mortality 0.0% 0.0% $250,000 $250,000 (2) Livestock Mortality 0.0% 0.0% $200,000 $200,000 (3) Named Perils 0.0% 0.0% $50,000 $50,000 (4) Frozen Semen and/or Embryos 0.0% 0.0% $10,000 $10,000 (5) $0 (6) $0 (7) $0 (8) $0 (9) $0 (10) $0 Total 0.0% 0.0% $510,000 $510,000 1 Commercial Auto Liability and Physical Damage must be combined in one application, with separate Rate Calculation pages in the Prior Approval Rate Template for liability and physical damage coverages. 2 Adjusted earned premium is the historical earned premium for the most recent year adjusted to the current rate level and trended to the average earned date of the proposed rating period. These figures should reconcile to the Prior Approval Rate Template. 3 Total earned premium must include all income derived from miscellaneous fees and other charges. 10/24/2016 Edition Prior Approval Rate Application Page 4

56 State of California Company: Liberty Mutual Insurance Company Department of Insurance (CDI) Line: Inland Marine RECONCILIATION OF DIRECT EARNED PREMIUM DATA Annual Statement Statutory Page 14 Calendar Year Data Coverage//Program 1 Latest CDI Filing # 2 2nd Prior Calendar Year 1st Prior Calendar Year Most Recent Calendar Year #VALUE! #VALUE! YYYY (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) Total Statutory Page 14 Difference Explain any differences: 1 This exhibit requires insurers to itemize each program until all data is reconciled to the corresponding annual statement line of insurance. 2 For residual market data, a filing number is not required. 10/24/2016 Edition Prior Approval Rate Application Page 5

57 State of California Company: Liberty Mutual Insurance Company Department of Insurance (CDI) Line: Inland Marine ANNUAL STATEMENT LINE - Inland Marine Year Written Premium Earned Premium Incurred Loss IL% DCCE DCCE% IL+DCCE IL+DCCE % (1) YYYY #DIV/0! 0 #DIV/0! 0 #DIV/0! (2) #VALUE! #DIV/0! 0 #DIV/0! 0 #DIV/0! (3) #VALUE! #DIV/0! 0 #DIV/0! 0 #DIV/0! (4) 3 Yr Avg #DIV/0! 0 #DIV/0! 0 #DIV/0! #VALUE! Note: Programs with less than $25M in premium each can be combined into one entry. Note: Ratios are weighted averages. Dollars are arithmetic averages. Total - All Programs Year Written Premium Earned Premium Incurred Loss IL% DCCE DCCE% IL+DCCE IL+DCCE % (5) YYYY #DIV/0! 0 #DIV/0! 0 #DIV/0! (6) #VALUE! #DIV/0! 0 #DIV/0! 0 #DIV/0! (7) #VALUE! #DIV/0! 0 #DIV/0! 0 #DIV/0! (8) 3 Yr Avg #DIV/0! 0 #DIV/0! 0 #DIV/0! Difference #DIV/0! - #DIV/0! - #DIV/0! (specify program) Year Written Premium Earned Premium Incurred Loss IL% DCCE DCCE% IL+DCCE IL+DCCE % YYYY #DIV/0! 0 #DIV/0! 0 #DIV/0! #VALUE! #DIV/0! 0 #DIV/0! 0 #DIV/0! #VALUE! #DIV/0! 0 #DIV/0! 0 #DIV/0! 3 Yr Avg #DIV/0! 0 #DIV/0! 0 #DIV/0! (specify program) Year Written Premium Earned Premium Incurred Loss IL% DCCE DCCE% IL+DCCE IL+DCCE % YYYY #DIV/0! 0 #DIV/0! 0 #DIV/0! #VALUE! #DIV/0! 0 #DIV/0! 0 #DIV/0! #VALUE! #DIV/0! 0 #DIV/0! 0 #DIV/0! 3 Yr Avg #DIV/0! 0 #DIV/0! 0 #DIV/0! (specify program) Year Written Premium Earned Premium Incurred Loss IL% DCCE DCCE% IL+DCCE IL+DCCE % YYYY #DIV/0! 0 #DIV/0! 0 #DIV/0! #VALUE! #DIV/0! 0 #DIV/0! 0 #DIV/0! #VALUE! #DIV/0! 0 #DIV/0! 0 #DIV/0! 3 Yr Avg #DIV/0! 0 #DIV/0! 0 #DIV/0! (specify program) Year Written Premium Earned Premium Incurred Loss IL% DCCE DCCE% IL+DCCE IL+DCCE % YYYY #DIV/0! 0 #DIV/0! 0 #DIV/0! #VALUE! #DIV/0! 0 #DIV/0! 0 #DIV/0! #VALUE! #DIV/0! 0 #DIV/0! 0 #DIV/0! 3 Yr Avg #DIV/0! 0 #DIV/0! 0 #DIV/0! (specify program) Year Written Premium Earned Premium Incurred Loss IL% DCCE DCCE% IL+DCCE IL+DCCE % YYYY #DIV/0! 0 #DIV/0! 0 #DIV/0! #VALUE! #DIV/0! 0 #DIV/0! 0 #DIV/0! #VALUE! #DIV/0! 0 #DIV/0! 0 #DIV/0! 3 Yr Avg #DIV/0! 0 #DIV/0! 0 #DIV/0! 10/24/2016 Edition Prior Approval Rate Application Page 6

58 State of California Company: Liberty Mutual Insurance Company Department of Insurance (CDI) Line: Inland Marine 10/24/2016 Edition Prior Approval Rate Application Page 6

59 State of California Company: Liberty Mutual Insurance Company Department of Insurance (CDI) Line: Inland Marine ADDITIONAL CALENDAR YEAR DATA REQUIRED BY STATUTE Refer to CIC , CIC and CIC 1864 for more information. Line Type of Data Most Recent Calendar Year (0) Calendar Year YYYY (1) Number of claims outstanding at beginning of year (2) Number of claims during the year (3) Number of claims closed during the year (4) Number of claims outstanding at year's end [ (1) + (2) - (3) ] 0 (5) Unearned Premiums (6) Dollar amount of claims paid (7) Net loss reserves for outstanding claims excluding claims incurred but not reported (case reserves) (8) Net loss reserves for claims incurred but not reported (IBNR) (9) Losses incurred as a percentage of premiums earned, including IBNR (10) Net investment gain or loss and other income or gain or loss allocated to the line (11) Net income before federal and foreign income taxes [ (10) + (15) ] $0 (12) Total number of policies in force on the last day of the reporting period (13) Total number of policies canceled (14) Total number of policies non-renewed (15) Net underwriting gain or loss ( = CY earned premiums less CY incurred loss less CY incurred expense ) (16) Separate allocations of expenses for: (17) (a) commissions and brokerage expense (18) (b) other acquisition costs (19) (c) general office expenses (20) (d) taxes, licenses and fees (21) (e) loss adjustment expense (DCCE & AOE) (22) (f) other expenses 10/24/2016 Edition Prior Approval Rate Application Page 7

60 State of California Company: Liberty Mutual Insurance Company Department of Insurance (CDI) Line: Inland Marine MISCELLANEOUS FEES AND OTHER CHARGES Check all fees that apply and identify the amount charged for each transaction. If no fees apply to this program, check here: Miscellaneous Fees New Business Renewal Business Policy Fee Installment Fee (Fixed $) Endorsement Fee Inspection Fee Cancellation Fee Reinstatement Fee Late Fee SR-22 Other Fees (specify below) Fee 1 Fee 2 Fee 3 Fee 4 Ancillary Income New Business Renewal Business Installment Finance Charge (APR %) Non-Sufficient Funds (NSF) Fee Membership Dues Premium Finance Revenues Other Fees (specify below) Fee 1 Fee 2 Fee 3 Fee 4 Use Exhibit 6 if additional space is needed to explain fees not listed above. 10/24/2016 Edition Prior Approval Rate Application Page 8

61 State of California Company: Liberty Mutual Insurance Company Department of Insurance (CDI) Line: Inland Marine FORMS (1) (2) (3) (4) (5) (6) (7) (8) (9) Applicable Source of Coverage Change Reflects Coverage Change Includes Factor or Charge # Title Type Source CDI File # 1 Category Restriction? 2 Broadening? Rate Impact? % Impact ($, % or Description) Proposed EQU-E AGGREGATE DEDUCTIBLE ENDORSEMENT Y N N Proposed EQU-E AGREED VALUE ENDORSEMENT N Y N Proposed EQU-E AUTOMATIC ADDITIONS EXTENSION N N N Proposed EQU-E BARRENNESS & PROSPECTIVE FOAL COVERAGE N Y N Proposed EQU-E CID & CEREBELLUM DISEASE EXCLUSION Y N N Proposed EQU-E CONTINUOUS COVERAGE ENDORSEMENT N Y N Proposed EQU-E COVERAGE TERRITORY EXTENSION-SPECIFIED TERRITORY AND HORSES N Y Y 0.00 to 2.0% Proposed EQU-E EMERGENCY COLIC SURGERY COVERAGE N Y Y $10,000 / $150 Proposed EQU-E EMERGENCY LIFE SAVING SURGICAL EXTENSION N Y Y $10,0000 / $150 Proposed EQU-A (10) Proposed EQU-P (11) APPLICATION FOR EQUINE MORTALITY & LIMITED THEFT, UNLAWFUL REMOVAL INSUANCE EQUINE MORTALITY AND LIMITED THEFT, UNLAWFUL REMOVAL COVERAGE POLICY FORM N N N N N N Proposed EQU-DOH 0817 DECLARATION OF HEALTH N N N (12) Proposed EQU-D (13) Proposed EQU-D (14) Proposed EQU-E (15) EQUINE MORTALITY AND LIMITED THEFT, UNLAWFUL REMOVAL COVERAGE POLICY DECLARATIONS EQUINE MORTALITY AND LIMITED THEFT, UNLAWFUL REMOVAL COVERAGE POLICY SUPPLEMENTAL DECLARATIONS EXCLUSION-SPECIFIC ACCIDENT, ILLNESS, INJURY, DISEASE OR DISABILITY N N N N N N Y N N Proposed EQU-E EXCLUSION OF TERRORISM Y N N (16) Proposed EQU-E LIMITED PERMANENT DISABILITY ENDORSEMENT N Y Y 2% (17) Proposed EQU MARE DISABILITY ENDORSEMENT N Y N (18) MEDICAL/SURGICAL COVERAGE WITH CO-PAYMENT Proposed EQU-E (19) INCLUDED N Y Y varies Proposed EQU-E NO CLAIMS BONUS ENDORSEMENT N Y N (20) 10/24/2016 Edition Prior Approval Rate Application Page 9.1

62 State of California Company: Liberty Mutual Insurance Company Department of Insurance (CDI) Line: Inland Marine FORMS Applicable Source of Coverage Change Reflects Coverage Change Includes Factor or Charge # Title Type Source CDI File # 1 Category Restriction? 2 Broadening? Rate Impact? % Impact ($, % or Description) Proposed (21) EQU-E PERMANENT DISABILITY COVERAGE N Y Y varies Proposed EQU-E PRIVATE HORSE OWNER'S LIABILITY ENDORSEMENT N Y Y varies (22) Proposed EQU-E PROFIT COMMISSION ENDORSEMENT N Y N (23) Proposed EQU-E "PROSPECTIVE FOAL" COVERAGE N Y Y varies (24) Proposed EQU-D SCHEDULE OF ENDORSEMENTS N N N (25) Proposed EQU-E SPECIFIC ENDORSEMENT N N N (26) Proposed EQU-E SPECIFIED PERILS ENDORSEMENT Y N N (27) Proposed EQU-E STALLION AVAILABILITY ENDORSEMENT N Y N (28) Proposed EQU-E STALLION FIRST BREEDING SEASON ENDORSEMENT N Y N (29) STALLION INFERTILITY (ACCIDENT, SICKNESS AND Proposed EQU-E (30) DISEASE) N Y Y varies STALLION LOSS OF INCOME EXTENSION Proposed EQU-E (31) ENDORSEMENT N Y N STALLION LOSS OF INCOME EXTENSION OF COVERAGE Proposed EQU-E (32) OPTIONS N Y N Proposed EQU-E SURGICAL COVERAGE ENDORSEMENT N Y Y Varies (33) Proposed EQU-E TWELVE MONTHS EXTENSION ENDORSEMENT N Y Y $0.15 per $100 (34) Proposed (35) EQULM-A APPLICATION FOR LIVESTOCK MORTALITY INSURANCE N N N APPLICATION FOR LIVESTOCK MORTALITY INSURANCE Proposed EQULM-A (36) CATTLE SUPPLEMENT N N N APPLICATION FOR LIVESTOCK MORTALITY INSURANCE Proposed EQULM-A (37) CANINE SUPPLEMENT N N N APPLICATION FOR LIVESTOCK MORTALITY INSURANCE Proposed EQULM-A (38) EXOTIC ANIMAL SUPPLEMENT N N N LIVESTOCK MORTALITY COVERAGE POLICY Proposed EQULM-D (39) DECLARATIONS N N N LIVESTOCK MORTALITY COVERAGE POLICY Proposed EQULM-D (40) SUPPLEMENTAL DECLARATIONS N N N 10/24/2016 Edition Prior Approval Rate Application Page 9.2

63 State of California Company: Liberty Mutual Insurance Company Department of Insurance (CDI) Line: Inland Marine FORMS Applicable Source of Coverage Change Reflects Coverage Change Includes Factor or Charge # Title Type Source CDI File # 1 Category Restriction? 2 Broadening? Rate Impact? % Impact ($, % or Description) Proposed EQULM-D SCHEDULE OF ENDORSEMENTS N N N (41) Proposed EQULM-E SPECIFIED PERILS ENDORSEMENT Y N N (42) Proposed EQULM-E OPTIONAL PERILS COVERAGE ENDORSEMENT N Y Y 0.25% of insured value (43) Proposed EQULM-E THEFT COVERAGE ENDORSEMENT N Y Y 0.25% of insured value (44) Proposed EQULM-E SPECIFIC EXCLUSION ENDORSEMENT Y N N (45) Proposed EQULM-E AGGREGATE DEDUCTIBLE ENDORSEMENT Y N N (46) Proposed EQULM-E AGREED VALUE ENDORSEMENT N Y N (47) Proposed EQULM-E TWELVE MONTHS EXTENSION N Y Y $0.15 per $100 insured (48) LIVESTOCK INFERTILITY ENDORSEMENT (ACCIDENT, Proposed EQULM-E N Y Y 1% per $100 of insured value (49) SICKNESS & DISEASE) Proposed EQULM-E SPECIFIC ENDORSEMENT N N N (50) COVERAGE TERRITORY EXTENSION-SPECIFIED Proposed EQULM-E N Y Y 0.00% to 2.0% (51) TERRITORY AND COVERED ANIMALS Proposed EQULM-E CALF IN UTERO COVERAGE EXTENSION N Y Y varies (52) Proposed EQULM-E SEA TRANSIT EXTENSION (INCLUDING WAR) N Y N (53) Proposed EQULM-E AIR TRANSIT EXTENSION (INCLUDING WAR) N Y N (54) Proposed EQULM-E SEA TRANSIT EXTENSION N Y N (55) Proposed EQULM-E AIR TRANSIT EXTENSION N Y N (56) Proposed EQULM-E ROAD TRANSIT EXTENSION N Y N (57) Proposed EQULM-E BULL PERMANENT DISABILITY ENDORSEMENT N Y N (58) Proposed EQULM-E TRANSIT DEDUCTIBLE ENDORSEMENT Y N N (59) Proposed EQULM-E WAR COVERAGE ENDORSEMENT N Y N (60) 10/24/2016 Edition Prior Approval Rate Application Page 9.3

64 State of California Company: Liberty Mutual Insurance Company Department of Insurance (CDI) Line: Inland Marine FORMS Proposed EQUFE-D (70) Applicable Source of Coverage Change Reflects Coverage Change Includes Factor or Charge # Title Type Source CDI File # 1 Category Restriction? 2 Broadening? Rate Impact? % Impact ($, % or Description) Proposed EQULM-E ABORTION COVERAGE ENDORSEMENT N Y N (61) Proposed EQULM-E RE-TESTING EXTENSION ENDORSEMENT N Y N (62) Proposed EQULM-E EXCLUSION OF TERRORISM Y N N (63) Proposed EQULM-P LIVESTOCK MORTALITY COVERAGE POLICY FORM N N N (64) APPLICATION FOR FROZEN SEMEN AND/OR FROZEN Proposed EQUFE-A (65) EMBRYOS IN STORAGE INSURANCE N N N APPLICATION FOR FROZEN SEMEN AND/OR FROZEN Proposed EQUFE-A (66) EMBRYOS IN TRANSIT INSURANCE N N N FROZEN SEMEN AND/OR FROZEN EMBRYOS IN Proposed EQUFE-D (67) STORAGE COVERAGE POLICY DECLARATIONS N N N FROZEN SEMEN AND/OR FROZEN EMBRYOS IN Proposed EQUFE-D STORAGE COVERAGE POLICY SUPPLEMENTAL N N N (68) DECLARATIONS FROZEN SEMEN AND/OR FROZEN EMBRYOS IN TRANSIT Proposed EQUFE-D (69) COVERAGE POLICY DECLARATIONS N N N FROZEN SEMEN AND/OR FROZEN EMBRYOS IN TRANSIT COVERAGE POLICY SUPPLEMENTAL DECLARATIONS N N N Proposed EQUFE-D SCHEDULE OF ENDORSEMENTS N N N (71) LIMITED THEFT AND UNLAWFUL REMOVAL Proposed EQUFE-E (72) ENDORSEMENT N Y N Proposed EQUFE-E TRANSIT DEDUCTIBLE ENDORSEMENT Y N N (73) Proposed EQUFE-E SPECIFIC ENDORSEMENT N N N (74) FROZEN SEMEN AND/OR FROZEN EMBRYOS IN Proposed EQUFE-P (75) STORAGE COVERAGE POLICY FORM N N N FROZEN SEMEN AND/OR FROZEN EMBRYOS IN TRANSIT Proposed EQUFE-P (76) COVERAGE POLICY FORM N N N Proposed (77) EQUNP-A APPLICATION FOR EQUINE NAMED PERILS INSURANCE N N N EQUINE NAMED PERILS COVERAGE POLICY Proposed EQUNP-D (78) DECLARATIONS N N N EQUINE NAMED PERILS COVERAGE POLICY Proposed EQUNP-D (79) SUPPLEMENTAL DECLARATIONS N N N Proposed EQUNP-D SCHEDULE OF ENDORSEMENTS N N N (80) 10/24/2016 Edition Prior Approval Rate Application Page 9.4

65 State of California Company: Liberty Mutual Insurance Company Department of Insurance (CDI) Line: Inland Marine FORMS Applicable Source of Coverage Change Reflects Coverage Change Includes Factor or Charge # Title Type Source CDI File # 1 Category Restriction? 2 Broadening? Rate Impact? % Impact ($, % or Description) Proposed EQUNP-E TWELVE MONTHS EXTENSION ENDORSEMENT N Y N (81) Proposed EQUNP-E ADDITIONAL COVERAGE-COLIC MORTALITY N Y Y 0.60 % per $100 (82) Proposed EQUNP-E EMERGENCY COLIC SURGERY COVERAGE N Y Y $5,000 / $150 (83) Proposed EQUNP-E ADDITIONAL COVERAGE-ACCIDENTAL INJURY N Y Y varies (84) Proposed EQUNP-E SPECIFIC ENDORSEMENT N N N (85) COVERAGE TERRITORY EXTENSION-SPECIFIED Proposed EQUNP-E N Y N (86) TERRITORY AND HORSES Proposed EQUNP-P EQUINE NAMED PERILS COVERAGE POLICY FORM N N N (87) Proposed EQUNP-E039-CA 0817 CALIFORNIA AMENDATORY ENDORSEMENT N N N (88) Proposed (89) Proposed (90) 1 If Source selected is ISO or Other Advisory Organization, provide the CDI File # of applicable filing from which the form is being adopted. If Source selected is Company and Category is Replacement, provide the CDI File # under which current form is approved. 2 s that restrict, exclude or delete coverage require consideration of a rate offset/credit. Provide the amount of prior losses incurred associated with the impacted coverage, if any. Legend of Response Codes Type Code Source Code Category Code (1) Application (1) Insurance Services Organization (ISO) (1) New, mandatory (5) Withdrawn, mandatory (2) Endorsement (2) Other Advisory Organization (2) New, optional (6) Withdrawn, optional (3) Policy (3) Company (3) Replacement, mandatory (4) Other (Describe in filing memorandum) (4) Other (Describe in filing memorandum) (4) Replacement, optional 10/24/2016 Edition Prior Approval Rate Application Page 9.5

66 State of California Company: Liberty Mutual Insurance Company Department of Insurance (CDI) Line: Inland Marine RULES AND UNDERWRITING GUIDELINES Insurers submitting a rule change filing must provide the information identified below. Complete Exhibit 18 as necessary to fulfill this requirement. Check all that apply: (1) Introducing a new rule(s) (2) Revising an existing rule(s) (3) Adopting an approved Advisory Organization (AO) rule(s) (4) Withdrawing an approved rule(s) (5) Introducing or revising an underwriting guideline(s) 1 If (1), (2) or (5) above is checked, provide the following: (a) The purpose for the rule or underwriting guideline or an explanation for revising an existing rule or underwriting guideline (Exhibit 18) (b) A copy of the current and proposed manual page corresponding to the rule or underwriting guideline (c) The proposed charge for the rule, and justification of the charge including the rate or premium development method (Exhibit 18) (d) The rate impact of the rule or underwriting guideline on the current book of business, with corresponding calculation of that impact (Exhibit 18) (e) Advise if the rule is: (i) Optional (ii) Mandatory If (3) above is checked, specify the approved CDI File #(s) of the AO rule: If (4) above is checked, provide the following: (a) An explanation for the withdrawal of the rule (Exhibit 18) (b) A copy of the current and proposed manual page corresponding to the withdrawn rule (c) The rate impact of withdrawing the rule on the current book of business, with corresponding calculation of that impact (Exhibit 18) For all rule and underwriting guideline changes, provide any additional comments necessary to adequately explain the rule change (Exhibit 18). 1 Underwriting guidelines included in this filing are reviewed only insofar as they relate to rates contained in this filing or currently on file with the California Department of Insurance. 10/24/2016 Edition Prior Approval Rate Application Page 10

67 State of California Company: Liberty Mutual Insurance Company Department of Insurance (CDI) Line: Inland Marine Use this checklist to assemble a complete application: FILING CHECKLIST Prior Approval Rate Application Supporting Exhibits General Information, Page 1 Exhibit 1 - Filing History Insurer Group Information, Page 2 Exhibit 2 - Rate Level History Filing Type, Page 3 Exhibit 3 - Policy Term Distribution Proposed Impact, Page 4 Reconciliation of Direct Earned Premium to Statutory Data, Page 5 Homeowners Detail (if applicable), Page 6 Additional Calendar Year Data Required by Statute, Page 7 Exhibit 4 - Premium Adjustment Factor Exhibit 5 - Premium Trend Factor 3 Exhibit 6 - Miscellaneous Fees and Other Charges Exhibit 7 - Loss and Defense & Cost Containment Expense (DCCE) Development Factors 3 Miscellaneous Fees and Other Charges, Page 8 Exhibit 8 - Loss and DCCE Trend 3 s, Page 9 Exhibit 9 - Catastrophe Adjustment Rules and Underwriting Guidelines, Page 10 Exhibit 10 - Credibility Adjustment Variance Request, Page 11 Exhibit 11 - Ancillary Income Filing Checklist, Page 12 Exhibit 12 - Reinsurance Premium and Recoverables Filing Memorandum Exhibit 13 - Variance Request Prior Approval Rate Template 1 Exhibit 14 - Rate Distribution Standard Exhibits Template 1 Exhibit 15 - Rate Classification Relativities Printed Rate and Rule Manual Pages 1 Underwriting Guidelines 1 s 1,2 Exhibit 16 - New Program Exhibit 17 - Super Group Corporate Structure Verification (PPA only) Exhibit 18 - Rules and Underwriting Guidelines Copies of Reinsurance Agreements 1 Exhibit 19 - Supplemental Information 1 See Prior Approval Rate Filing Instructions. 2 Attach all independent forms and list all advisory organization forms. 3 Provide Standard Exhibits Template for these exhibits. Exhibit 20 - Customer Dislocation Exhibit 21 - Insurer's Ratemaking Calculations for Specialty Filings 10/24/2016 Edition Prior Approval Rate Application Page 12

68 Exhibit 16 Liberty Mutual Insurance Company Equine and Livestock Mortality Program California New Program Program is based on rates from the following companies programs: Markel Insurance Company (Equine Mortality): SERFF Tracking Number: MRKB State Tracking Number: Markel Insurance Company (Equine Mortality): SERFF Tracking Number: MRKB State Tracking Number: List of States Where Program is Curently Filed/Approved AL, IN, NE, NM, NC, UT Prepared By: Arnie Rippener, ACAS Martin & Company

69

70 Instructions for Completing the Prior Approval Rate Template For Property & Liability Lines Note: For information on populating the application in its entirety, including the Prior Approval Rate Application, Prior Approval Rate Template and Standard Exhibits Template, refer to the complete Prior Approval Rate Filing Instructions posted in PDF format on the CDI website, below: 1) A rate change calculation page (i.e., '7.iRate Change Calculation) is required for each coverage (e.g., BI, PD, MP, UM, COLL, COMP, etc.), form (e.g., HO-3, HO-4, HO-6, etc.) or program (e.g., Auto Dealers, Garagekeepers, Truckers/Motor Carriers, etc.) for which a rate change is being requested. For each filing submitted, download a new Application and Rate Template - do not "recycle" a template from a previously approved filing. 2) Areas of insurer input are generally identified with blue font text and/or light blue outlined boxes. 3) 4) In addition to identifying the coverage, forms or programs included in this Prior Approval Rate Template, enter the insurer information common to all coverages in the "1.General" page, including Company Name; Line Type (Personal or Commercial); General Line; Marketing System Distribution (percentage of each system used, totaling 100%); Prior Effective Date (of current rates); Proposed Effective Date (of proposed new rates); Data Aggregation Method used (accident year, report year, policy year); Most Recent Year of Experience Data; and Request for Variance, if applicable. Also indicate if this application reflects a new program. Enter data from the insurer's Combined Annual Statement into unshaded boxes in pages 3 and 4 to generate Yield, Federal Income Tax on Investment Income and Excluded Expense Ratio for the insurer group. Asset yield percentages are linked to an internal California Department of Insurance file. To ensure the latest yield/ror information is used, go to Data menu in the Excel ribbon, click "Edit Links" and then click "Open Source." 5) For the i th coverage, form or program, enter data into unshaded boxes of the '6.iRatemaking Data' page only. Enter numerical data only. For inapplicable fields, enter 0 for dollar ($) or percentage (%) fields and 1.00 for factors. For coverages, forms or programs requiring more than three years of data, click the "Expand to show six years" button. 6) 7) 8) 9) On each '6.iRatemaking Data' page, rows for data associated with variance requests related to the efficiency standard are hidden unless that request is indicated on the '1.General' page. Enter variance data, if supported by a Variance Request. Final decisions regarding variances will be made by the CDI and/or administrative hearing. On each '6.iRatemaking Data' page, rows for reinsurance data associated with lines of business for which recognition of reinsurance is allowable (Earthquake and certain Medical Malpractice) are hidden unless those lines are selected on the '1.General' page. If applicable, enter all requested reinsurance information. For results regarding the ith coverage, form or program, refer to the '7.iRate Change Calculation' page. Hyperlinks are available at the bottom of the '6.iRatemaking Data' page and the corresponding '7.iRate Change Calculation' page for each coverage, form or program for convenient navigation between those pages. If filing Advisory Organization Loss Costs with a Loss Cost Multiplier, refer to specific Instructions for Completing the LCM Template, to the right. 10) Refer to the complete Prior Approval Rate Filing Instructions for additional information. 05/08/2017 Edition Prior Approval Rate Template

71 Instructions for Completing the Loss Cost Multiplier Calculation Within the Prior Approval Rate Template 1) A separate LCM Calculation page is available for every coverage, form or program for which a Prior Approval Rate Template is submitted. The LCM Calculation pages are hidden unless the appropriate box on the "1.General" page is selected. 2) For the ith coverage, form or program, enter data into unshaded boxes of the '8.iLCM Calculation' page only. Areas of insurer input are generally identified with blue font text and/or light blue outlined boxes. 3) For new program filings, enter the following data: the CDI file number associated with the approved advisory organization filing supporting the loss costs to be adopted; the AOE or LAE load as filed by the advisory organization; and the basis of that AOE or LAE load. 4) For existing program filings, enter the following data: the CDI file number associated with the advisory organization filing supporting the company s currently used loss costs; the current company LCM; the CDI file number(s) associated with all changes to advisory organization loss costs since the filing underlying the company s currently used loss costs, separated by commas; and the cumulative percent change in loss costs identified by those CDI file number(s), both as originally filed and as adjusted for the company's distribution. 5) Refer to the complete Prior Approval Rate Filing Instructions for additional information. 05/08/2017 Edition Prior Approval Rate Template

72 State of California Company: Liberty Mutual Insurance Company Department of Insurance (CDI) Line: Inland Marine PRIOR APPROVAL RATE TEMPLATE FOR PROPERTY & LIABILITY LINES GENERAL INFORMATION Completed by: Linda Rothwell Date: 9/1/2017 CDI File # (Department Use Only) : Company Name: Liberty Mutual Insurance Company Marketing System Distribution: %Captive %Direct %Independent 100.0% Line Type: General Line : Proposed Effective Date (new rates): 11/1/2017 New Program: LCM Calculation(s) Included: (LCM Calculation(s) is(are) hidden unless this box is checked.) Data Aggregation: Most Recent Year of Experience Data Ending: (Enter in YYYYQ format.) Enter name of each coverage/form/program for which a rate change is being requested in the cells below. Otherwise, leave blank. Detailed Line Description(s) Coverage//Program Proposed % Impact Prior Effective Date (current rates) 2 Equine Mortality 0.0% N/A 2 LIvestock Mortality 0.0% N/A 2 Named Perils 0.0% N/A 2 Embryo 0.0% N/A Variance Request: Does the Ratemaking Data include a Request(s) for Variance? Variance #: If yes, is Variance #3 requested for any coverage? 05/08/2017 Edition Prior Approval Rate Template Page 1

73 State of California Company: Liberty Mutual Insurance Company Department of Insurance (CDI) Line: Inland Marine CDI File # (Department Use Only): PRIOR APPROVAL RATE TEMPLATE FOR PROPERTY & LIABILITY LINES SUMMARY Coverage//Program Projected Annual Premium ($) Minimum Permitted Earned Premium ($) Maximum Permitted Earned Premium ($) Change at Minimum % Change at Maximum % Proposed % Equine Mortality 300, , , % 0.2% 0.0% LIvestock Mortality 10,000 7,757 10, % 0.2% 0.0% Named Perils 5,000 3,878 5, % 0.2% 0.0% Embryo % 0.2% 0.0% Combined 315, , , % 0.2% 0.0% Combined Total Earned Exposures for Latest Year: 140 Coverage//Program Average Earned Premium $ per Exposure Projected Minimum Permitted Maximum Permitted Proposed Projected Earned Exposures Equine Mortality 3, , , , LIvestock Mortality Named Perils Embryo Combined 2, , , , Coverage//Program Projected Annual Premium ($) Projected Annual Projected Annual Ultimate Loss & DCCE Ultimate Loss & DCCE ($) Ratio Equine Mortality 300, , % LIvestock Mortality 10,000 6, % Named Perils 5,000 3, % Embryo % Combined 315, , % 05/08/2017 Edition Prior Approval Rate Template Page 2

74 State of California Company: Liberty Mutual Insurance Company Department of Insurance (CDI) Line: Inland Marine CDI File # (Department Use Only): PROJECTED YIELD AND FEDERAL INCOME TAX RATE ON INVESTMENT INCOME Short-Term Assets Intermediate-Term Assets Long-Term Assets Line Description 1 Year or Less Over 1 Year thru 5 Years Over 5 Years thru 10 Years Over 10 Years thru 20 Years Over 20 Years 1.7 U.S. Governments 2,485,979,565 2,830,972, ,270, ,989,492 66,446, All Other Governments 245,875, ,488, ,303,384 38,444,822 81,139, States, Territories and Possessions 416,780, ,746, ,090, ,862, , Political Subdivisions 536,736, ,794,176 2,064,234, ,204, ,980, Special Revenue and Assessment Obligations 573,754,965 1,983,544,908 3,611,499,632 1,292,012, ,316, Industrial and Miscellaneous 971,899,813 8,612,729,281 7,175,525, ,465, ,083, Hybrid Securities Parent, Subsidiaries and Affiliates Source: Schedule D, Part 1A, Section 1 of the insurer group's most recent consolidated (combined) statutory Annual Statement. Short-Term Assets Intermediate-Term Assets Long-Term Assets 1 Year or Less Over 1 Year thru 10 Years Over 10 Years (1) Government Bonds (Sum of Lines 1.7 & 2.7) 2,731,855,512 4,674,035, ,020,325 (2) Other Taxable Bonds (Sum of Lines 6.7, 7.7, 8.7 and one-half 1,258,777,296 18,585,776,610 1,278,713,434 of Line 5.7) (3) Tax-Exempt Bonds (Sum of Lines 3.7, 4.7 and one-half of Line 5.7) 1,240,394,714 6,201,387,813 2,116,576,105 (Note: CCR refers to bond asset classes of "Credit Tenant Loans" and "Public Utilities" that are no longer recorded in the NAIC Annual Statement Schedule D, Part 1A, Section 1. Assets included in "Other Taxable Bonds" conform to the current NAIC Annual Statement Blank.) 05/08/2017 Edition Prior Approval Rate Template Page 3.1

75 State of California Company: Liberty Mutual Insurance Company Department of Insurance (CDI) Line: Inland Marine CDI File # (Department Use Only): PROJECTED YIELD AND FEDERAL INCOME TAX RATE ON INVESTMENT INCOME (1) U.S. Government Bonds Invested Assets 1 (continued) ly Available Yield 2 Return on Invested Assets Federal Income Tax Rate Federal Income Taxes [1] [2] [3] = [1] * [2] [4] [5) = [3] * [4] (i) Short-Term 2,731,855, % 28,866, % 10,103,312 (ii) Intermediate-Term 4,674,035, % 105,477, % 36,917,087 (iii) Long-Term 445,020, % 11,466, % 4,013,342 (2) Other Taxable Bonds (i) Short-Term 1,258,777, % 15,776, % 5,521,836 (ii) Intermediate-Term 18,585,776, % 540,241, % 189,084,587 (iii) Long-Term 1,278,713, % 47,316, % 16,560,819 (3) Tax-Exempt Bonds (i) Short-Term 1,240,394, % 10,105, % 530,517 (ii) Intermediate-Term 6,201,387, % 132,001, % 6,930,069 (iii) Long-Term 2,116,576, % 65,342, % 3,430,464 (4) Common Stock 3,711,129,785 (i) Dividends 2.2% 80,875, % 11,464,108 (ii) Capital Gains 7.6% 283,062, % 96,524,343 (5) Preferred Stock Dividends 331,317, % 16,289, % 2,308,973 (6) Mortgage Loans 1,570,813, % 58,125, % 20,343,855 (7) Real Estate 318,690, % 12,131, % 4,246,024 (8) Cash 689,443, % 7,285, % 2,549,794 (9) Other 12,542,130,823 (i) Dividends 2.2% 273,326, % 38,744,087 (ii) Capital Gains 7.6% 956,638, % 326,213,581 (10) Total Gross Invested Assets 57,696,063,789 2,644,328, % 775,486,798 (11) Investment Expense 3 146,590, % 51,306,569 (12) Total Net Invested Assets 57,696,063,789 2,497,738, ,180,230 Federal Income Tax: Line (12); column [5]/column (13) 29.0% [3] Projected Yield on Invested Assets: Line (12), (14) 4.3% column [3]/column [1] Most Recent Calendar Year (15) Loss Reserves 4 28,588,361,894 (16) Loss Adjustment Expense Reserves 4 5,901,816,004 (17) Unearned Premium Reserves 4 13,859,446,601 (18) Surplus as Regards to Policyholders 4 19,582,014,182 (19) Total Reserves and Surplus 67,931,638,681 (20) Projected Yield adjusted to Reserve and Surplus Base: Line (14), column [2]*Line (12), column [1]/Line (19), column [1] 1 Source for Column [1], Lines (4) through (9): Page 2 (Assets) of the insurer group's most recent consolidated (combined) statutory Annual Statement. - Line (8) Cash: Page 2 (Assets) Line 5, cash only; cash equivalents and short-term investments are included in Schedule D. - Line (9) Other: Page 2 (Assets) Sum of Lines 6, 8, 9 and ly available yields are defined in CCR Latest values are posted at: Month/Year (Yield): October Source: Page 11, Line 25 of the insurer group's most recent consolidated statutory Annual Statement. Entered as a positive expense. 4 Source for Column [1], Lines (15) through (18): Page 3 (Liabilities, Surplus and Other Funds) of the insurer group's most recent consolidated statutory Annual Statement, Lines 1, 3, 9 and 37, respectively. 3.7% 05/08/2017 Edition Prior Approval Rate Template Page 3.2

76 State of California Company: Liberty Mutual Insurance Company Department of Insurance (CDI) Line: Inland Marine CDI File # (Department Use Only): EXCLUDED EXPENSE RATIO Countrywide Insurer Group Data 2nd Prior Calendar Year 1st Prior Calendar Year Most Recent Calendar Year Countrywide direct earned premium for lines of business subject to Proposition 103 ($): 29,952,305,000 26,711,602,000 27,787,031,746 Countrywide direct earned premium for lines of business not subject to Proposition 103 ($): 2,910,927,000 2,680,514,000 2,569,125,478 Total countrywide direct earned premium ($): 32,863,232,000 29,392,116,000 30,356,157,224 (Note: Total must reconcile to the countrywide direct earned premium in the Insurance Expense Exhibit, Part 3 for the insurer group.) Check box if the excluded expenses entered in this page are derived on a countrywide, group basis CCR (b): Executive Compensation 2nd Prior Calendar Year 1st Prior Calendar Year Most Recent Calendar Year Cash & Salary Bonus Cash & Salary Bonus Cash & Salary Bonus 1st Highest Paid 1,000,000 6,730,442 1,136,538 8,114,746 1,186,731 8,905,013 2nd Highest Paid 825,000 3,345, ,269 3,370, ,962 3,551,830 3rd Highest Paid 810,000 3,514, ,269 3,232, ,000 3,209,363 4th Highest Paid 775,000 2,898, ,269 2,716, ,885 2,654,482 5th Highest Paid 700,000 1,641, ,000 1,711, ,923 3,388,088 2nd Prior Calendar Year 1st Prior Calendar Year Most Recent Calendar Year Maximum Maximum Maximum Excessive Amount Excessive Amount Permissible Permissible Permissible Excessive Amount 1st Highest Paid 2,040,076 5,690,366 1,947,403 7,303,881 1,978,863 8,112,881 2nd Highest Paid 1,019,741 3,150, ,792 3,233, ,383 3,404,409 3rd Highest Paid 940,182 3,384, ,943 3,161, ,615 3,020,748 4th Highest Paid 761,689 2,911, ,096 2,778, ,500 2,840,867 5th Highest Paid 644,399 1,697, ,651 1,791, ,072 2,916,939 Total Excessive 16,834,024 18,268,865 20,295,844 CCR (f): Institutional Advertising 2nd Prior Calendar Year 1st Prior Calendar Year Most Recent Calendar Year Institutional Non-Institutional Institutional Non-Institutional Institutional Non-Institutional Total Advertising 1 32,538, ,276,951 18,028, ,214,342 9,837, ,928,214 1 Note: For each calendar year, the sum of Institutional and Non-Institutional advertising expenses must reconcile to the total advertising expenses reported in the Insurance Expense Exhibit, Part 1, Line 4 for the insurer group. 05/08/2017 Edition Prior Approval Rate Template Page 4.1

77 State of California Company: Liberty Mutual Insurance Company Department of Insurance (CDI) Line: Inland Marine CDI File # (Department Use Only): EXCLUDED EXPENSE RATIO (continued) Countrywide Insurer Group Data Check box if the excluded expenses entered in this page are derived on a countrywide, group basis 2nd Prior Calendar Year 1st Prior Calendar Year Most Recent Calendar Year CCR (a): Political contribution and lobbying 3,231,167 3,488,780 4,916,211 CCR (b): Excessive Executive Compensation (Page 4.1) 16,834,024 18,268,865 20,295,844 CCR (c): Bad faith judgments and associated DCCE 3,385, CCR (d): All costs for unsuccessful defense of discrimination claims CCR (e): Fines and penalties 2,139,763 1,367, ,791 CCR (f): Institutional advertising expenses (Page 4.1) 32,538,230 18,028,892 9,837,042 CCR (g): Excessive payments to affiliates Total Excluded Expenses 58,128,722 41,153,863 35,660,888 Excluded Expense Ratio 0.2% 0.1% 0.1% Three-Year Average Excluded Expense Ratio 0.1% 05/08/2017 Edition Prior Approval Rate Template Page 4.2

78 State of California Company: Liberty Mutual Insurance Company Department of Insurance (CDI) Line: Inland Marine CDI File #: FINAL ADJUSTED CDI PARAMETERS Efficiency Standard Marketing System Distribution 0.0% 0.0% 100.0% Detailed Line Description Line Code Coverage/ Captive Direct Independent Weighted Average Variance Adjustment Final Adjusted Excluded Efficiency Expense Ratio Standard Inland Marine 9 Equine Mortality 29.0% 31.6% 29.0% 29.0% 0.0% 0.1% 28.9% Inland Marine 9 LIvestock Mortality 29.0% 31.6% 29.0% 29.0% 0.0% 0.1% 28.9% Inland Marine 9 Named Perils 29.0% 31.6% 29.0% 29.0% 0.0% 0.1% 28.9% Inland Marine 9 Embryo 29.0% 31.6% 29.0% 29.0% 0.0% 0.1% 28.9% Reserves Ratio Leverage Factor (Variance 3 not applied) Yields Through October 2017 Detailed Line Description Line Code Coverage/ Unearned Premium Reserves Loss Reserves Raw Factor Variance Adjustment Final Adjusted Leverage Factor Yield 3.7% Inland Marine 9 Equine Mortality Inland Marine 9 LIvestock Mortality Inland Marine 9 Named Perils Inland Marine 9 Embryo FIT 29.0% Risk Free Rate of Return 1.8% 05/08/2017 Edition Prior Approval Rate Template Page 5

79 State of California Company: Liberty Mutual Insurance Company Department of Insurance (CDI) Line: Inland Marine CDI File # (Department Use Only): RATEMAKING DATA Completed by: Linda Rothwell Variance #(s): Date Completed: 9/1/2017 Detailed Line Description: Coverage: Inland Marine Equine Mortality Line Description Source 2nd Prior Year Ending 1st Prior Year Ending Most Recent Year Ending (0) Year Projected 1 New Program 2 (1) California Direct Written Premium 300,000 (2) California Direct Earned Premium 300,000 (3) Premium Adjustment Factor Exh 4 (4) Premium Trend Factor 1 Exh 5 (5) Miscellaneous Fees and Flat Charges not included in Line (2) Exh 6 0 (6) Earned Exposure Units 100 (7) Historic Losses 181,200 (8) Historic Defense and Cost Containment Expense (DCCE) 16,489 (9) Loss Development Factor Exh 7 (10) DCCE Development Factor Exh 7 (11) Loss Trend Factor 1 Exh 8 (12) DCCE Trend Factor 1 Exh 8 (13) Catastrophe Adjustment Factor Exh 9 (14) Credibility for Losses & DCCE Exh 10 (15) Ancillary Income Exh 11 0 Lines link directly to pages 3 and 4 of the rate template. (16) Excluded Expense Ratio Pg % Projected Federal Income Tax Rate (17) on Investment Income Pg % (18) Projected Yield Pg % 1 The Projected column should reflect the annual trend expressed as a percentage for premium, loss and DCCE trends, and credibility. 2 Refer to Section III.C. of the Prior Approval Rate Filing Instructions for New Program requirements. 05/08/2017 Edition Prior Approval Rate Template Page 6.1

80 State of California Company: Liberty Mutual Insurance Company Department of Insurance (CDI) Line: Inland Marine CDI File # (Department Use Only): RATEMAKING DATA Completed by: Linda Rothwell Variance #(s): Date Completed: 9/1/2017 Detailed Line Description: Coverage: Inland Marine LIvestock Mortality Line Description Source 2nd Prior Year Ending 1st Prior Year Ending Most Recent Year Ending (0) Year Projected 1 New Program 2 (1) California Direct Written Premium 10,000 (2) California Direct Earned Premium 10,000 (3) Premium Adjustment Factor Exh 4 (4) Premium Trend Factor 1 Exh 5 (5) Miscellaneous Fees and Flat Charges not included in Line (2) Exh 6 0 (6) Earned Exposure Units 25 (7) Historic Losses 6,040 (8) Historic Defense and Cost Containment Expense (DCCE) 550 (9) Loss Development Factor Exh 7 (10) DCCE Development Factor Exh 7 (11) Loss Trend Factor 1 Exh 8 (12) DCCE Trend Factor 1 Exh 8 (13) Catastrophe Adjustment Factor Exh 9 (14) Credibility for Losses & DCCE Exh 10 (15) Ancillary Income Exh 11 0 Lines link directly to pages 3 and 4 of the rate template. (16) Excluded Expense Ratio Pg % Projected Federal Income Tax Rate (17) on Investment Income Pg % (18) Projected Yield Pg % 1 The Projected column should reflect the annual trend expressed as a percentage for premium, loss and DCCE trends, and credibility. 2 Refer to Section III.C. of the Prior Approval Rate Filing Instructions for New Program requirements. 05/08/2017 Edition Prior Approval Rate Template Page 6.2

81 State of California Company: Liberty Mutual Insurance Company Department of Insurance (CDI) Line: Inland Marine CDI File # (Department Use Only): RATEMAKING DATA Completed by: Linda Rothwell Variance #(s): Date Completed: 9/1/2017 Detailed Line Description: Coverage: Inland Marine Named Perils Line Description Source 2nd Prior Year Ending 1st Prior Year Ending Most Recent Year Ending (0) Year Projected 1 New Program 2 (1) California Direct Written Premium 5,000 (2) California Direct Earned Premium 5,000 (3) Premium Adjustment Factor Exh 4 (4) Premium Trend Factor 1 Exh 5 (5) Miscellaneous Fees and Flat Charges not included in Line (2) Exh 6 0 (6) Earned Exposure Units 10 (7) Historic Losses 3,020 (8) Historic Defense and Cost Containment Expense (DCCE) 275 (9) Loss Development Factor Exh 7 (10) DCCE Development Factor Exh 7 (11) Loss Trend Factor 1 Exh 8 (12) DCCE Trend Factor 1 Exh 8 (13) Catastrophe Adjustment Factor Exh 9 (14) Credibility for Losses & DCCE Exh 10 (15) Ancillary Income Exh 11 0 Lines link directly to pages 3 and 4 of the rate template. (16) Excluded Expense Ratio Pg % Projected Federal Income Tax Rate (17) on Investment Income Pg % (18) Projected Yield Pg % 1 The Projected column should reflect the annual trend expressed as a percentage for premium, loss and DCCE trends, and credibility. 2 Refer to Section III.C. of the Prior Approval Rate Filing Instructions for New Program requirements. 05/08/2017 Edition Prior Approval Rate Template Page 6.3

82 State of California Company: Liberty Mutual Insurance Company Department of Insurance (CDI) Line: Inland Marine CDI File # (Department Use Only): RATEMAKING DATA Completed by: Linda Rothwell Variance #(s): Date Completed: 9/1/2017 Detailed Line Description: Coverage: Inland Marine Embryo Line Description Source 2nd Prior Year Ending 1st Prior Year Ending Most Recent Year Ending (0) Year Projected 1 New Program 2 (1) California Direct Written Premium 500 (2) California Direct Earned Premium 500 (3) Premium Adjustment Factor Exh 4 (4) Premium Trend Factor 1 Exh 5 (5) Miscellaneous Fees and Flat Charges not included in Line (2) Exh 6 0 (6) Earned Exposure Units 5 (7) Historic Losses 302 (8) Historic Defense and Cost Containment Expense (DCCE) 27 (9) Loss Development Factor Exh 7 (10) DCCE Development Factor Exh 7 (11) Loss Trend Factor 1 Exh 8 (12) DCCE Trend Factor 1 Exh 8 (13) Catastrophe Adjustment Factor Exh 9 (14) Credibility for Losses & DCCE Exh 10 (15) Ancillary Income Exh 11 0 Lines link directly to pages 3 and 4 of the rate template. (16) Excluded Expense Ratio Pg % Projected Federal Income Tax Rate (17) on Investment Income Pg % (18) Projected Yield Pg % 1 The Projected column should reflect the annual trend expressed as a percentage for premium, loss and DCCE trends, and credibility. 2 Refer to Section III.C. of the Prior Approval Rate Filing Instructions for New Program requirements. 05/08/2017 Edition Prior Approval Rate Template Page 6.4

83 State of California Company: Liberty Mutual Insurance Company Department of Insurance (CDI) Line: Inland Marine CDI File # (Department Use Only): VARIANCE - NONE RATE CHANGE CALCULATION Completed by: Linda Rothwell Date Completed: 9/1/2017 Prior Effective Date: N/A Proposed Effective Date: 11/1/2017 Detailed Line Description: Inland Marine Coverage: Equine Mortality Data Provided by Filer Projected Prem_Written 300,000 Prem_Earned 300,000 Prem_Adj Prem_Trend 0.0% Misc_Fees 0 Exposures_Earned 100 Losses 181,200 DCCE 16,489 Loss_Devt DCCE_Devt Loss_Trend 0.0% DCCE_Trend 0.0% CAT_Adj Anc_Income 0 Credibility 100.0% ExpRatio_Excluded 0.1% FIT_Inv 29.0% Yield 3.7% CDI Parameters FIT_UW 35.0% EffStd_Final Data as of: % LevFact_Final Data as of: PremTaxRate 2.4% SurplusRatio 0.89 ResRatio_UPR Data as of: ResRatio_Loss Data as of: ROR_RiskFree Data as of: October % ROR_Min -6.0% ROR_Max 7.8% Calculations Prem_Adjusted 300,000 Losses_Adjusted 181,200 DCCE_Adjusted 16,489 LossDCCERatio_Adjusted 65.9% TCRLP_perExp 3, LossDCCE_perExp 1, CompLossDCCE_perExp 1, CredLoss_perExp 1, Anc_Inc_perExp 0.00 InvInc_Fixed 1.0% InvInc_Variable 4.7% Net_AnnualTrend 0.0% Comp_Trend 0.0% Max_Profit 10.7% Min_Profit -8.3% UW_Profit 5.4% Min_Denom 0.84 Max_Denom 0.65 Min_Premium $2, Max_Premium $3, CHANGE_AT_MIN -22.4% CHANGE_AT_MAX 0.2% 05/08/2017 Edition Prior Approval Rate Template Page 7.1

84 State of California Company: Liberty Mutual Insurance Company Department of Insurance (CDI) Line: Inland Marine CDI File # (Department Use Only): VARIANCE - NONE RATE CHANGE CALCULATION Completed by: Linda Rothwell Date Completed: 9/1/2017 Prior Effective Date: N/A Proposed Effective Date: 11/1/2017 Detailed Line Description: Inland Marine Coverage: LIvestock Mortality Data Provided by Filer Projected Prem_Written 10,000 Prem_Earned 10,000 Prem_Adj Prem_Trend 0.0% Misc_Fees 0 Exposures_Earned 25 Losses 6,040 DCCE 550 Loss_Devt DCCE_Devt Loss_Trend 0.0% DCCE_Trend 0.0% CAT_Adj Anc_Income 0 Credibility 100.0% ExpRatio_Excluded 0.1% FIT_Inv 29.0% Yield 3.7% CDI Parameters FIT_UW 35.0% EffStd_Final Data as of: % LevFact_Final Data as of: PremTaxRate 2.4% SurplusRatio 0.89 ResRatio_UPR Data as of: ResRatio_Loss Data as of: ROR_RiskFree Data as of: October % ROR_Min -6.0% ROR_Max 7.8% Calculations Prem_Adjusted 10,000 Losses_Adjusted 6,040 DCCE_Adjusted 550 LossDCCERatio_Adjusted 65.9% TCRLP_perExp LossDCCE_perExp CompLossDCCE_perExp CredLoss_perExp Anc_Inc_perExp 0.00 InvInc_Fixed 1.0% InvInc_Variable 4.7% Net_AnnualTrend 0.0% Comp_Trend 0.0% Max_Profit 10.7% Min_Profit -8.3% UW_Profit 5.4% Min_Denom 0.84 Max_Denom 0.65 Min_Premium $ Max_Premium $ CHANGE_AT_MIN -22.4% CHANGE_AT_MAX 0.2% 05/08/2017 Edition Prior Approval Rate Template Page 7.2

85 State of California Company: Liberty Mutual Insurance Company Department of Insurance (CDI) Line: Inland Marine CDI File # (Department Use Only): VARIANCE - NONE RATE CHANGE CALCULATION Completed by: Linda Rothwell Date Completed: 9/1/2017 Prior Effective Date: N/A Proposed Effective Date: 11/1/2017 Detailed Line Description: Inland Marine Coverage: Named Perils Data Provided by Filer Projected Prem_Written 5,000 Prem_Earned 5,000 Prem_Adj Prem_Trend 0.0% Misc_Fees 0 Exposures_Earned 10 Losses 3,020 DCCE 275 Loss_Devt DCCE_Devt Loss_Trend 0.0% DCCE_Trend 0.0% CAT_Adj Anc_Income 0 Credibility 100.0% ExpRatio_Excluded 0.1% FIT_Inv 29.0% Yield 3.7% CDI Parameters FIT_UW 35.0% EffStd_Final Data as of: % LevFact_Final Data as of: PremTaxRate 2.4% SurplusRatio 0.89 ResRatio_UPR Data as of: ResRatio_Loss Data as of: ROR_RiskFree Data as of: October % ROR_Min -6.0% ROR_Max 7.8% Calculations Prem_Adjusted 5,000 Losses_Adjusted 3,020 DCCE_Adjusted 275 LossDCCERatio_Adjusted 65.9% TCRLP_perExp LossDCCE_perExp CompLossDCCE_perExp CredLoss_perExp Anc_Inc_perExp 0.00 InvInc_Fixed 1.0% InvInc_Variable 4.7% Net_AnnualTrend 0.0% Comp_Trend 0.0% Max_Profit 10.7% Min_Profit -8.3% UW_Profit 5.4% Min_Denom 0.84 Max_Denom 0.65 Min_Premium $ Max_Premium $ CHANGE_AT_MIN -22.4% CHANGE_AT_MAX 0.2% 05/08/2017 Edition Prior Approval Rate Template Page 7.3

86 State of California Company: Liberty Mutual Insurance Company Department of Insurance (CDI) Line: Inland Marine CDI File # (Department Use Only): VARIANCE - NONE RATE CHANGE CALCULATION Completed by: Linda Rothwell Date Completed: 9/1/2017 Prior Effective Date: N/A Proposed Effective Date: 11/1/2017 Detailed Line Description: Inland Marine Coverage: Embryo Data Provided by Filer Projected Prem_Written 500 Prem_Earned 500 Prem_Adj Prem_Trend 0.0% Misc_Fees 0 Exposures_Earned 5 Losses 302 DCCE 27 Loss_Devt DCCE_Devt Loss_Trend 0.0% DCCE_Trend 0.0% CAT_Adj Anc_Income 0 Credibility 100.0% ExpRatio_Excluded 0.1% FIT_Inv 29.0% Yield 3.7% CDI Parameters FIT_UW 35.0% EffStd_Final Data as of: % LevFact_Final Data as of: PremTaxRate 2.4% SurplusRatio 0.89 ResRatio_UPR Data as of: ResRatio_Loss Data as of: ROR_RiskFree Data as of: October % ROR_Min -6.0% ROR_Max 7.8% Calculations Prem_Adjusted 500 Losses_Adjusted 302 DCCE_Adjusted 27 LossDCCERatio_Adjusted 65.9% TCRLP_perExp LossDCCE_perExp CompLossDCCE_perExp CredLoss_perExp Anc_Inc_perExp 0.00 InvInc_Fixed 1.0% InvInc_Variable 4.7% Net_AnnualTrend 0.0% Comp_Trend 0.0% Max_Profit 10.7% Min_Profit -8.3% UW_Profit 5.4% Min_Denom 0.84 Max_Denom 0.65 Min_Premium $77.57 Max_Premium $ CHANGE_AT_MIN -22.4% CHANGE_AT_MAX 0.2% 05/08/2017 Edition Prior Approval Rate Template Page 7.4

87 Liberty Mutual Insurance Company Equine/Livestock Insurance Program ACTUARIAL MEMORANDUM Liberty Mutual Insurance Company ( the company ) is submitting this new program filing for its Equine and Livestock Mortality coverage in the State of California. This program and associated products are part of Inland Marine for Annual Statement reporting purposes. The program offers the following products: 1) Equine Mortality (full coverage) 2) Equine Mortality (named perils) 3) Livestock Mortality (full coverage) 4) Livestock Mortality (named perils) 5) Frozen Embryos et al. The company will be utilizing the attached rate manual. The program structure and format, as well as the majority of the rating factors developed in the manual, are based primarily on those of Markel Insurance Company. Countrywide expense data based on the Liberty Mutual Group Annual Statement was used to calculate the underwriting profit provision as well as other expense provisions.

88