ILLINOIS PRIVATE PASSENGER AUTO. September 1, 2015 TABLE OF CONTENTS

Transcription

1 ILLINOIS PRIVATE PASSENGER AUTO September 1, 2015 TABLE OF CONTENTS 1. Definitions 2 2. Personal Automobile Policy-Eligibility Premium Determination 3 4. Classifications Driving Record Points Model Year/Age Groups for Comprehensive and Collision Coverages Miscellaneous Types Policy Periods Policy Changes Cancellations Reinstatement Policy-level Fee Optional Service Fees Payment Information 14 IL (10-15) Cornerstone National Insurance Company 1

2 ILLINOIS PRIVATE PASSENGER AUTO MANUAL 1. DEFINITIONS A. A private passenger automobile is a motor vehicle of the private passenger or station wagon type that is owned or leased under a long term contract and is neither used as a public or livery conveyance for passengers nor rented to others. B. A motor vehicle with a pickup body, a panel truck, or a van, owned by an individual or by spouses who are residents of the same household, not customarily used in the occupation, profession or business of the insured other than farming or ranching shall be classified and rated as a private passenger automobile. A motor vehicle used in the course of driving to and from work, which otherwise meets the eligibility requirements of this rule, shall be classified and rated as a private passenger automobile. C. Auto as used in the manual refers to a private passenger automobile or a vehicle considered as a private passenger automobile. 2. PERSONAL AUTOMOBILE POLICY - ELIGIBILITY A. A Personal Automobile Policy shall be used to afford coverage to an automobile as defined in Rule 1 which has four wheels and is owned or leased by an individual or by spouses who are residents in the same household and written on a specified car basis. B. A Personal Automobile Policy shall be used to afford coverage to an automobile which is owned jointly by two or more resident relatives other than spouses and written on a specified car basis. C. A Personal Automobile Policy shall be used to afford coverage to motor homes and travel trailers which are written on a specified vehicle basis and which are owned by an individual, by a spouses who are residents of the same household, or by two or more resident relatives. D. Currently approved ISO coverage forms and independently approved forms are used for this program. IL (10-15) Cornerstone National Insurance Company 2

3 3. PREMIUM DETERMINATION The Liability, Uninsured Motorist, Underinsured Motorist, Medical Payments, Comprehensive and Collision premiums shall be determined as follows: A. Refer to the Classifications Rule to determine the applicable Classification and Rating Factor. B. Model Year and Symbol Determination 1. Refer to the Model Year/Age Group Rule to determine the model year/age of the auto and refer to the current RAPA symbols for the appropriate symbol of the auto. When model year is used in rating and the rates for a model year are not displayed in the rate pages, use the rates shown for the latest model year. 2. If no Rating Symbol is shown in the current RAPA symbols, use the following procedure to determine an interim rating symbol. a. If the current RAPA symbols displays a rating symbol for the prior model year version of the same vehicle, use the prior model year s Rating Symbol for the new model year vehicle. b. If the current RAPA symbols do not display a rating symbol for the prior model year version of the same vehicle, for physical damage assign a symbol based on the price new of the current model year and Vehicle Attribute Symbol K. For liability, determine the two-character Symbol for the current model year by using RAPA Character One Symbol K and RAPA Character Two Symbol M. C. Determine the rating Territory from the territory definititons based on the county of principal garaging. D. The premium for each coverage is determined by multiplying the base rate by the appropriate rating factor(s). IL (10-15) Cornerstone National Insurance Company 3

4 4. CLASSIFICATIONS Refer to the State Rate Pages for the Driver and Secondary Rating Factors. A. Autos owned by an individual, or owned jointly by two or more resident relatives are classified as follows: 1. Classify the auto according to the age, sex and marital status of the operators and the eligibility of youthful operators for the Driver Training and/or Good Student classes. 2. Determine the applicable factor from the Rating Factor tables. The highest rated driver will be assigned to the highest rated automobile. B. Secondary Classification 1. Determine if the auto is: a. A single car, or b. Part of a multi-car risk 2. Refer to the Driver Rating Factors, to classify operators according to the provisions of the Plan. 3. Refer to the Secondary Rating Factor table to determine the appropriate factors to be used. C. Classification Changes 1. A policy shall not be changed mid-term because of the attained age of an operator of the auto. 2. A policy shall not be changed mid-term to affect an increase change in the Point Factors, but will be changed to reflect a decrease in the Point Factors. 3. A policy shall not be changed mid-term solely due to a change in symbol assignment based on a review of loss experience. D. Age, Sex and Marital Status Classifications 1. SEX means male or female IL (10-15) Cornerstone National Insurance Company 4

5 2. AGE means the age attained on the last birthday. 3. MARRIED means spouses who are residents in the same household or parties who have entered into a civil union recognized under Illinois law who are residents of the same household. 4. RESIDENT means anyone residing in the same household. E. Driver Training F. Good Student The applicable Driver Training Rating Factor shall apply to liability, medical payments and collision for each Youth Operator under 21 years of age where satisfactory evidence is presented that such operator has successfully completed a driver education course. The applicable Good Student Rating Factor applies to liability, medical payments and collision provided: 1. The owner or operator is - a years of age, and b. A full time high school, college or university student. 2. A certified statement from a school official or report card is presented to the company on each anniversary date of the policy indicating that the student has met one of the following requirements during the immediately preceeding school semester: a. Maintains a B average or its equivalent. If the letter grading system can not be averaged then no grade below a B. b. When in a school maintaining a numerical grade, must have at least a 3 in a 4,3,2,1 point system or its equivalent. (1) Student is included in a Dean s List, Honor Roll or comparable list indicating scholastic achievement. A classification change resulting from a change in the scholastic standing of the student can not be affected between anniversary dates of the policy. IL (10-15) Cornerstone National Insurance Company 5

6 G. Rating Risks 1. Single Car Risks a. The highest rated individual will be rated on this risk. b. Multi-Car Risks (1) The highest rated individual will be rated on the highest rated vehicle, then the next highest rated individual will be rated on the next highest rated vehicle, etc. (2) If there are more vehicles than drivers, the extra vehicle(s) will be rated on the lowest rated individual on the policy as an occasional operator with no points surcharge. 2. Multi-Car Discount I. Pickups and Vans The applicable Multi-Car Rating Factor Applies if more than one private passenger auto is owned by an individual or owned jointly by two or more resident relatives or resident individuals and two or more autos are insured in the same company on the same policy for any of the following coverages: Liability, Medical Payments, Comprehensive and Collision. 1. Liability and Physical Damage: Rate as private passenger. For non-symbolled pickups, determine a symbol based on original cost new from the tables in the State Rate Pages. 2. When a pickup is used to transport a nonpermanently attached camper body, or to transport a camper body or cover with no facilities for cooking and sleeping: a. Add the cost of the camper body or cover to the cost of the pickup and determine a symbol from the tables of the Symbol and Identification Section. b. Rate according to paragraph a. 3. When a pickup is used to transport a permanently IL (10-15) Cornerstone National Insurance Company 6

7 attached camper body with facilities for cooking and sleeping, refer to the Motor Homes Section of the Miscellaneous Types Rule. J. Mature Operator Accident Prevention Course Discount 1. A 10% Mature Operator Accident Prevention Course Discount shall be applied to the premiums for Bodily Injury and Property Damage Liability (or Single Limit Liability) coverages, provided: a. The vehicle is classified and rated as a private passenger auto; and b. The principal operator of the vehicle is: (1) Is over age 55; and (2) Has successfully completed an approved motor vehicle accident prevention course within the most recent 36 months. Successful completion of an approved motor vehicle accident prevention course means the attendance at, and the participation in the entire course, and the satisfactory completion of the written examination required under 50 Ill. Admin. Code (a). An approved motor vehicle accident prevention course shall be either: (i) The National Safety Council's Defensive Driving Course; or (ii) A motor vehicle accident prevention course which is found by the Secretary of State to meet or exceed the standards of the National Safety Council's Defensive Driving Course's 8-hour classroom safety instruction program. 2. This discount shall apply: a. To new and renewal policies with effective dates within the 36-month period following the date of successful completion of the course. b. To new and renewal policies with effective dates within the 36-month period following the date of successful completion of the course. c. Only once to each such vehicle regardless of the number of operators who successfully completed the course. IL (10-15) Cornerstone National Insurance Company 7

8 3. The discount shall not apply to: a. Any motor vehicle whose principal operator has been convicted of violating any of the motor vehicle laws of the State of Illinois, until that operator shall have maintained a driving record free of accidents and moving violations for a continuous one-year period, in which case such driver shall be eligible for the discount for the remaining two years of the three-year period. b. Any motor vehicle whose principal operator has had his or her driver's license revoked or suspended for any reason by the Secretary of State within the previous 36 months. 4. This discount shall apply to the following miscellaneous type vehicles rated in accordance with Rule 19. Miscellaneous Types: a. Motor homes b. Any other miscellaneous type vehicle classified and rated as a private passenger auto. K. Risk Factor L. Transfer Discount This discount shall apply to multi-car policies if the number of insured autos equals the number of active rated drivers, or more drivers than autos. This discount shall apply to liability, medical payments and collision coverages. This discount shall apply when a policy is being rewritten from another auto company. This discount shall apply to Liability, Medical Payments, Other Than Collision, and Collision coverages. Proof of prior insurance must be submitted with the application and maintained with the agent. M. Vehicles Equipped With Anti-theft Devises 1. Eligibility These discounts apply to Comprehensive coverage only. To qualify, the vehicle must be equipped with: IL (10-15) Cornerstone National Insurance Company 8

9 a. A hood lock which can be released only from inside the vehicle, and b. A device meeting the criteria of either Paragraph A. or B. Refer to company for required evidence of installation of anti-theft devices meeting the following criteria prior to granting a discount. 2. Discount If a vehicle is equipped with more than one qualifying device, only the single highest following discount shall apply: a. Alarm-ONLY (Cov. Code 1) And Active Disabling Devices (Cov. Code 2) A 5% discount on Comprehensive Coverage shall be afforded on vehicles equipped with (1) alarm-only devices which sound an audible alarm that can be heard at a distance of at least 300 feet for a minimum of three minutes, or (2) active disabling devices which disable the vehicle by making the fuel, ignition or starting system inoperative. A disabling device is categorized as active if a separate manual step IS required to engage the device. b. Passive Disabling Devices (Cov. Code 3) A 15% discount on Comprehensive Coverage shall be afforded on vehicles equipped with passive disabling devices which disable the vehicle by making the fuel, ignition or starting system inoperative. A disabling device is categorized as passive if a separate manual step is NOT required to engage the device. 5. DRIVING RECORD POINTS A. Convictions Points shall be assigned for convictions during the experience period for motor vehicle violations of the applicant or any other currently resident operator. Points shall be assigned to the vehicle operator responsible for incurring the points. IL (10-15) Cornerstone National Insurance Company 9

10 1. 4 points shall be assigned for conviction of all Major Violations including Driving while intoxicated or under the influence of drugs, Failure to stop and report when involved in an accident, Homicide or assault arising out of the operation of a motor vehicle, Careless or reckless driving, Passing a school bus, Driving on a revoked, suspended or cancelled license, Drag Racing, Fleeing from police point shall be assigned for the first conviction of any other violation, not including parking or registration convictions points shall be assigned for each additional conviction referenced in 2 above. B. Accidents Points shall be assigned for each accident that occurred during the experience period, involving the applicant or any currently resident operator, while operating an auto. Points shall be assigned to the vehicle on which the operator responsible for incurring the points is rated points shall be assigned for each auto accident that results in: a. Bodily injury or death; or b. Total damage to all property including his or her own in excess of $1, Notwithstanding all other provisions of this rule, no point shall be charged as a result of a motor vehicle accident unless the accident was caused in whole or in part by the fault of the insured. C. Points Exceptions 1. No points shall be assigned for accidents incurred by an operator demonstrated to be a named insured or a principal operator of an auto insured under a separate policy; and 2. No points shall be assigned for accidents occurring under the following circumstances: a. Auto lawfully parked (if the parked vehicle rolls from the parked position then any such accident is charged to the person who parked the auto); or b. The applicant, owner or other resident operator is IL (10-15) Cornerstone National Insurance Company 10

11 reimbursed by, or on behalf of a person who is responsible for the accident or has judgment against such person; or c. Auto is struck in the rear by another vehicle and the applicant or other resident operator has not been convicted of a moving traffic violation in connection with this accident; or d. Operator of the other auto involved in the accident was convicted of a moving traffic violation and the applicant or resident operator was not convicted of a moving traffic violation in connection with the accident; or e. Auto operated by the applicant or any resident operator is struck by a hit-and-run vehicle, if the accident is reported to the proper authority within 24 hours by the applicant or resident operator; or f. Accidents involving damage by contact with animals or fowl; g. Accidents involving Physical Damage, limited to and caused by flying gravel, missiles, or falling objects; h. Accidents occurring when using auto in response to an emergency if the operator of the auto at the time of accident was a paid or volunteer member of a Police of Fire Department, First Aid Squad, or any law enforcement agency. This exception does not include an accident occurring after the auto ceases to be used in response to such emergency. i. Experience Period - The experience period shall be the three years immediately preceding the effective date of the policy. j. Accidents paid under Comprehensive coverage. 6. MODEL YEAR/AGE GROUPS FOR COMPREHENSIVE AND COLLISION COVERAGES A. Where Model Year is Used in Rating 1. The model year of the auto is the year assigned by the auto manufacturer. 2. Rebuilt or Structurally Altered Autos are not eligible for this program. 3. If the rates for a model year are not displayed in the Rate Pages, use the rates shown for the latest model year. B. Where Age is Used in Rating IL (10-15) Cornerstone National Insurance Company 11

12 1. Age is determined as follows: Age Group Definition 0 Autos of current model year * 1 Autos of first preceding year 2 Autos of second preceding year 3 Autos of third preceding year 4 Autos of fourth preceding year 5 Autos of the fifth preceding year 6 All other autos *The current model year as used in this section, changes effective October 1 of each calendar year regardless of the actual introduction of the makes and models. 7. MISCELLANEOUS TYPES A. Trailers Designed for Use With Private Passenger Autos Liability, Uninsured and Underinsured Motorist and Medical Payments A Personal Auto Policy affording liability, uninsured motorist, underinsured motorist and medical payments coverage provides coverage for trailers without additional premium charge and without specific description of the trailer if designed for use with a private passenger auto, pickup, panel truck or van. Physical Damage 8. POLICY PERIODS Trailers are to be insured as separate items with separate premiums shown for each unit. The deductible applies separately to each unit. Use Motor Home rates for Comprehensive and Collision coverages. All Personal Policies are issued on a 6 month basis. 9. POLICY CHANGES A. All changes requiring premium adjustments shall be computed pro rata. B. Minimal Premium Adjustment IL (10-15) Cornerstone National Insurance Company 12

13 10. CANCELLATIONS 1. If an outstanding policy is amended and results in a minimal premium adjustment, of less than $5.00, the amount may be waived, except that the actual return premium shall be returned at the request of the insured. The insured must be notified that a return premium is available. 2. Companies need not refund premium less than $5.00 if the insured requests the following: a. Cancellation of coverage b. Reduction of limits of liability c. Increase in deductible except that actual return premium shall be returned at the request of the insured. 3. If the limits of liability are increased because of a change in the limits prescribed under any financial responsibility law, the additional premium charge shall be the actual difference in premium charges. A. Cornerstone (CNIC) uses a Billing Date Calculation for non-pay situations.the effective date of cancellation is based on the date that premium payments are due. B. Legal notice of cancellation will be issued by CNIC prior to the cancellation date. A reinstatement fee of $25.00 is included on the bill. Lienholders are notified at this time. Payment must be received by CNIC prior to the cancellation effective date. If the agent accepts payment prior to the cancel date, the agent will be required to call and notify CNIC in order to prevent cancellation. No payments will be accepted after the cancellation effective date. All cancellations will be computed on a pro-rata basis. C. If an insufficient funds check is applied to a policy that was pending to cancel for non-pay, the policy is automatically cancelled effective the date given on the cancel notice. D. CNIC will not flat cancel any policy, unless proof is shown, at the time of the request, that the insured is covered elsewhere. E. Cancellations may be made by the company as follows: 1. New Business Cancellation may be effected by the Company only for any IL (10-15) Cornerstone National Insurance Company 13

14 11. REINSTATEMENT of the reasons enumerated in the policy conditions unless notice of cancellation has been issued within 60 days of the effective date of the policy. 2. Renewal Business Cancellation may be effected by the company only for any of the reasons enumerated in the policy conditions. A. Reinstatement will be issued the day after certified payment has been applied or 15 days after a personal check has been applied with no lapse in coverage. B. If payment is received in our office after a legal notice has been mailed and the policy is reinstated, CNIC will charge a $25.00 reinstatement fee. 12. POLICY-LEVEL FEE CNIC charges a $25.00 policy fee for all new and renewal policies. The Policy-Level Fee will be pro-rata refunded should the policy terminate midterm. 13. OPTIONAL SERVICE FEES A. Installment Fee - CNIC collects a $9.00 fully earned installment fee. B. Late Fee CNIC collects a $10.00 fully earned late fee when an installment is paid after the due date. C. Reinstatement Fee - CNIC collects a $25.00 fully earned fee to reinstate a policy that is in cancellation for non-payment of premium. D. NSF Check Fee - CNIC charges a $25.00 fully earned fee for an Insuficient Funds payment. E. Endorsement Fee CNIC charges a $5.00 fully earned fee for every Endorsement processed. 14. PAYMENT INFORMATION Policyholders may choose to pay in full, quarterly or monthly. IL (10-15) Cornerstone National Insurance Company 14