ALLEGANY CO-OP INSURANCE COMPANY MOBILE HOMEOWNERS UNDERWRITING/BINDING GUIDELINES

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1 ALLEGANY CO-OP INSURANCE COMPANY MOBILE HOMEOWNERS UNDERWRITING/BINDING GUIDELINES Binding Authority of Agents Mobile Homes that have been reviewed by agents of Allegany Co-Op and that do not fall under the list of either Unacceptable Exposures or that fall under the list of Exposures Requiring Prior Underwriting Approval may have coverage bound for the following maximum limits. Any limits exceeding these maximums must be submitted to the company on a Prior Company Approval basis. Replacement Cost Coverage (6 years or less in age) Coverage A $80,000. Coverage C $40,000. Liability Limits $300,000. Medical Payments $500. Actual Cash Value Coverage Coverage A $60,000. Coverage C $30,000. Liability Limits $300,000. Medical Payments $500. Properties Requiring Prior Company Approval Before Binding Coverage The following situations require underwriting review before binding Coverage so that disputes with regard to pricing or coverage acceptability Can be avoided. Without prior company approval the following may not Be bound. 1. Homes or prospective insured having been cancelled or Nonrenewed by another company or by Allegany Co-Op During the past 5 years. 2. Homes that are or will be unoccupied for extended periods Exceeding 3 months. 3. Homes that are currently for sale and are actively listed by the Insured or by real estate agents. 4. Homes with substandard maintenance. 5. Mobile Homes in connection with farm operations. 6. Homes where there has been a lapse in coverage for any period of time. 7. Homes where the insured is known to have poor premium payment history. ED. 11/01/2004 1

2 Unacceptable Risks See Underwriting Guidelines Accord Policy Applications Allegany Co-Op exclusively uses the ACORD Application format for all Mobile Homeowners submissions. The use of the ACORD format is an industry standard that will prepare the way for the day when we will be able to accept application transactions on line. We require a fully completed ACORD application that is signed both by the prospective insured and by the licensed agent. A clear photograph of all structures to be insured should be included. We will be unable to process or bind coverage where the application is unsigned or the information is not complete. Incomplete applications received without full information will be returned as unbound coverage. Allegany Co-op can insure mobile homes of varying ages and values under its mobile homeowners program. The company uses URB policy forms. These underwriting guidelines have been developed to assist the company s agents in selecting the types of mobile home properties that will be acceptable to the company. The knowledge of the company s underwriters gives an added advantage for mobile home properties located in the Upstate New York marketing territory. The competitive pricing approach on newer and higher valued mobile homes offers agents the opportunity to grow with the company in this product line. MOBILE HOME VALUES Establishing an Actual Cash Value for mobile homes can be an issue for either an agent or for the insurance company. Factors regarding the manufacturer, overall upkeep, maintenance and the age of the mobile home all play a part in establishing an appropriate insurable value. As a rule of thumb, the older the home the more important it is to look carefully at the home to gain an idea of the condition of the property. For homes in excess of 12 years of age, it is inadvisable to use the value shown on the previous policy, since manufactured homes of this age can rapidly depreciate in value. If the mobile home has been continuously insured in the same company for a number of years, the real possibility exist that the mobile home can become significantly over-insured. If you are in doubt, contact our company underwriting staff or local mobile home dealer to describe general upkeep, age and manufacturer in order to establish a value. RURAL PROPERTIES When insuring mobile homes, it is important to establish if a mobile homeowners policy is appropriate. Farms having a mobile home for the main dwelling require a Farmowners policy. The presence of farm animals, farm structures, and land either being operated in farming activities or rented to others for farming ED. 11/01/2004 2

3 purposes may make it necessary to use the farmowners product to adequately cover the exposures. The mobile homeowners policy does not contemplate coverage for farm barns as appurtenant structures under Coverage B. Farm barns are excluded from the Allegany Co-op mobile homeowners policy and they must be separately insured on an Allegany Co-op fire policy. UNACCEPTABLE EXPOSURES While Allegany Co-op can insure a wide range of mobile home values under its program, there are certain exposures that we are unable to accommodate. Other exposures require certain limitations in coverage as to perils insured against or by the use of increased deductibles. The following list of unacceptable exposures is provided in order for agents to save time and effort in their placement activities. 1. Mobile Homes with swimming pools. Most mobile homes with pools will have the above ground variety. Pools should be equipped with retractable locking ladders to prevent the tragedy of an infant drowning. If there is a pool, spend time with the client to discuss this critical safety issue. Make note on the application if the retractable locking ladder is installed and is used. 2. Mobile Homes with Wood Stoves. One of the realities of most manufactured housing is that it is compact in its design. Alterations in that design are difficult in the best of circumstances. Wood stoves that have been installed most often fail to achieve the correct clearances for safe installation. Allegany Co-op does not write mobile home units having wood burning stoves. 3. Skirting is Required. Allegany Co-op does write mobile homes that are permanently installed on continuous masonry foundation on the standard homeowners program. In order to qualify for the Mobile Homeowners program, mobile homes must have a properly installed and maintained skirting in order to protect the home from waterlines freezing and the added exposure to wind loss where no skirting is installed. 4. Mobile Homes with substandard maintenance. Where there is a question raised from a review of the photograph of the values insured, the company reserves the right to conduct an independent inspection of the property. These independent inspections can reveal conditions that would cause any insurer to decline coverage. Specific items of which to be aware are the following; a. poor housekeeping both interior and exterior; b. presence of deteriorated roof or of previous damage from water to ceilings and walls; c. evidence of electrical problems uncovered service entrance boxes, use of extension cords, temporary wiring, overfusing, or corrosion on electrical service boxes; ED. 11/01/2004 3

4 d. evidence of plumbing problems water damage from leaking or from incomplete repairs: e. lack of adequate exterior steps, handrails, unguarded decks or inadequately installed additions. 5. Properties which are for sale or are Unoccupied. Mobile homes that are for sale or are unoccupied cannot be considered for the Allegany Co-op Mobile Homeowners program. 6. Dogs, Breed and Dispositions. As agents visit properties, they can gain some idea of the disposition of any dogs kept by the owners. Any aggressive dogs encountered should be noted on the application. The breed of any dogs owned by the insured should also be shown. The following breeds can be aggressive and require special underwriting consideration. Usually these breeds will not be considered. a. Rotweiller b. Doberman c. Husky d. Pit Bull e. German Shepard f. Chow g. Akita Any dog can be aggressive and the training and discipline exercised by the owner is a factor as important as the breed of the dog. Allegany Co-op inspectors are required to note on reports any aggressive behavior exhibited by dogs without regard to the breed. The company reserves the right to decline or non-renew policies where aggressive dogs have been reported. The company requires a signed dog exclusion, excluding claims arising out of the ownership, care, or control of dogs in the household if the Underwriter makes an exception with regard to dog breeds and disposition. 7. TRAMPOLINES The injury potential that exists because of the popular trampoline is uninsurable. Allegany Co-op uses the Trampoline Exclusion on all of its homeowners policies. Please advise all of your clients that the Allegany homeowner policy will not respond to claims arising out of the presence or use of trampolines. 8. BANKRUPTCY Within the past 5 years. PERILS AND LIMITS As a general rule the company will insure mobile homes between 15 and 20 years on form ML-1. There are some exceptionally well maintained properties that can be considered for broader perils or for the age in excess of 20 years. Underwriting approval is needed for these situations. Please provide full description of the properties with adequate photographs. Generally mobile homes for which ML-2 or ML-3 perils are requested should not exceed 15 years at the time coverage is initially written. ED. 11/01/2004 4

5 The following minimum coverage amounts are required for each form. ML-1 $8,000 Coverage A ML-2 $10,000 Coverage A ML-3 $15,000 Coverage A ML-4 $7,000 Coverage C ED. 11/01/2004 5

6 Rule No. 1. ELIGIBILITY: ALLEGANY CO-OP INSURANCE COMPANY **MOBILEHOMEOWNERSPROGRAMSEASONAL MOBILEHOMEOWNERSPROGRAM** The Mobile Homeowners Policy Program contains rules, classifications, rates and premiums for writing property and liability insurance on 1 and 2 family owner-occupied mobile homes Tenant occupied mobile homes Mobile homes or Manufactured Homes that do not sit on permanent masonry foundation or slab. (Refer to Homeowners eligibility.) Optional property and liability endorsements or coverages are made available in the following manual section: OPTIONAL PROPERTY COVERAGES & ENDORSEMENTS OPTIONAL LIABILITY COVERAGES & ENDORSEMENTS 2. BASIC POLICY COVERAGE AND LIMITS: The Mobile Homeowners policy provides coverage and minimum limits of liability as follows: Section I Form Form Form Form Coverages ML-1 ML-2 ML-3 ML-4 1. Residence $ 8,000. $10,000. $15, Private10% of 10% of 10% of Structures Limit of Limit of Limit of Residence Residence Residence 3. Personal 50% of 50% of 50% of $7,000. Property Limit on Limit on Limit on Residence Residence Residence 4. Additional 10% of 20% of 20% 40% of Living Limit on Limit on Limit on Expense & Residence Residence Residence Loss of Rents **See Separate Rate Sheets Limit on Personal Property ED. 11/01/2004 1

7 Section II Coverages 12. Personal Liability (ML-9) $25,000 Each Occurrence M. Medical Payments $500 Each Person The Basic Form (ML-1) insures against the following perils: Fire or Lightning Windstorm or Hail Explosion Riot or Civil Commotion Aircraft Vehicles Sudden and Accidental Damage from Smoke Vandalism Glass Breakage Theft Broad Form (ML-2), Special Form (ML-3), Tenants Form (ML-4), are also available, (see forms for perils that apply). Premium for all forms are shown in the Mobile Homeowners Premium Table. MANDATORY FORMS - The following forms are mandatory: Section I ML-20, PERILS SECTION (ML-1,2,3 or 4) Section II ML-9 PERSONAL LIABILITY SECTION 3. GENERAL RULES: 3- a CANCELLATION - If the insurance is canceled or reduced at the request of the company or the insured, the earned premium shall be computed on a pro-rata basis. 3-b CONTRIBUTING INSURANCE (ML-178) Coverage may be divided between two or more companies using the rates, rules, forms and endorsements of this manual. 3-d INTERPOLATION- To determine the premium for an amount of insurance between two amounts shown in the premium table, add the pro-rata premium for the difference between the nearest amounts shown to the premium for the lower amount. ED. 11/01/2004 2

8 3-e MAXIMUM & MINIMUM CHARGES - No additional premium shall be charged and no return premium shall be allowed when such additional or return premium is less than $ f RATE REVISIONS - Minimum Earned/Retained Policy Fee-$ The revised rates shall apply to all policies, endorsements and binders having inception dates on and subsequent to the effective date of revisions, except that renewals of policies having inception dates within 45 days after the date of announcement, may be written at the rates prevailing immediately prior to announcement of revisions 3-g RESTRICTION OF INDIVIDUAL POLICIES - If a policy would not be issued because of unusual exposures, the applicant may request a restriction of the policy at no reduction in the premium. The request, bearing the signature of the applicant shall be referred to the Company. 3-i WHOLE DOLLAR PREMIUM - 4. RATING: The premium for each exposure shall be rounded to the nearest whole dollar, separately for each coverage provided by the policy. A premium involving 50 cents or more shall be rounded to the next higher whole dollar. All premiums in this Manual are ANNUAL per $1000. of Insurance unless otherwise specified. 1 Determine the Basic Policy Premium based upon the amount of Coverage A or C. This basic premium shall reflect revised limits of Coverage C. 2 Modify the amount in 1 by premium credits or charges - Section I -- Property Coverages. 3 Apply deductible credits. 4 Add premiums for higher liability limits and optional liability coverages. 5 Add any other premiums for coverages that are written with this policy. ED. 11/01/2004 3

9 PROTECTION - 4-a PROTECTED - Building is located within 1000 feet of an approved fire hydrant and is within 5 road miles of a responding fire department. 4-b SEMI-PROTECTED - Building is located more than 1000 feet of an approved fire hydrant and is within 5 road miles of a responding fire department. 4-c UNPROTECTED - Building is located more than 5 miles of a responding fire department 4-d RESIDENCE REPLACEMENT COST/ACTUAL CASH VALUE The manual rates shall be used for replacement cost or actual cash value coverage. Loss settlement provisions are described in the General Policy Provisions (ML-20) (How Much We Pay for Loss or Claim) and in the Perils Section (ML-1,2,3,4). 5. OPTIONAL PROPERTY COVERAGES & ENDORSEMENTS: 5-a ADDITIONAL LIVING EXPENSE - Enter total amount of coverage on policy face. Coverage in excess of the amount provided shall be charged at the premium shown in the Premium Section of the manual. 5-b BUILDING ADDITIONS AND ALTERATIONS (ML-4 ONLY) (ML-51) Coverage in excess of the amount provided shall be charged at the premium shown in the Premium Section. 5-c CONSENT TO MOVE MOBILE HOME - (ML-25) Coverage may be provided when mobile home is moved from the described premises. The premium is shown in the Premium Section of the Manual. ED. 11/01/2004 4

10 5-d COVERAGES - OTHER PROGRAMS - It is permissible to attach any filed form offering supplemental coverage not included in this section. The appropriate rates are to be used. 5-e CREDIT CARD, FORGERY AND COUNTERFEIT MONEY (ML-57) Coverage for Credit Card, Forgery and Counterfeit Money may be increased at the premiums shown in the Premium Section of the manual. 5-f DEBRIS REMOVAL EXTENSION (ML-366) Coverage may be extended at the premium shown in the Premium Section of the manual. 5-g DEDUCTIBLES - Forms used in conjunction with the premiums shown in this manual contemplate a two hundred fifty ($250.00) deductible. All perils loss deductible clause applying per occurrence. This deductible can be increased or reduced by applying the rate credits or surcharges as shown in the Premium Section of the manual 5-h DEMOLITION AND DEBRIS REMOVAL - Demolition, debris removal, demolition time element, contingent liability from the operation of building laws or increased cost of construction coverages may be added to the policy subject to the rates, rules, forms and endorsements filed by or on behalf of the Company. 5-i EARTHQUAKE - (ML-54) Earthquake coverage may be written at the premiums shown in the Premium Section of the manual. Include increased Coverage B or C when calculating premium. 5-k HIGHER LIMIT OF LIABILITY ON CERTAIN PROPERTY - (ML-65H) Certain property that have limitations may be increased at the premiums shown in the Premium Section of the manual. 5-l HOMEOWNERS EXTRA COV (ML-148), INCREASED COV (ML-147), ED. 11/01/2004 5

11 5-m INCREASED AMOUNT OF COVERAGE C 5-m-1 INCREASED LIMITS - The Coverage C limit of liability may be increased at the premiums shown in the Premium Section of the manual. 5-m-2 INCREASED LIMIT AWAY FROM PREMISE - (ML-66) The Coverage C limit of liability for personal property away from premises may be increased at the additional premiums shown in the Premium Section of the manual. 5-o MONEY & SECURITIES - (ML-65H) Increased limits on money and securities may be written at the premiums shown in the Premium Section of the manual. 5-p MOTORIZED VEHICLES - (ML-65H) Motorized Vehicles used to service the insured premises or to assist the handicapped may be written at the premiums shown in the Premium Section of the manual. 5-q OTHER RESIDENCE COVERAGE - (ML-67) Coverage may be provided at the additional premiums files by or on behalf of the Company. 5-r OUTSIDE ANTENNA - (MR-82) Increased limits on outside antennas may be written at the premiums shown in the Premium Section of the manual. 5-t PRIVATE STRUCTURES - 5-t-1 INCREASED LIMITS - (ML-48) Increased limits may be written on a specific private structure at the premiums shown in the Premium Section of the manual. 5-t-2 RENTED TO OTHERS - (ML-40) Coverage may be written on a specific private structure held for rental at the premiums shown in the Premium Section of the manual. ED. 11/01/2004 6

12 5-t-3 AWAY FROM THE INSURED PREMISES - (ML-89) Coverage may be written on a specific private structure away from the insured premise at the premiums shown in the Premium Section of the manual. 5-u PROTECTIVE DEVICE CREDIT - (ML-216) Premium credits may be allowed for the installation of approved and properly maintained alarm and/or sprinkler systems in a residence as shown in the Premium Section of the manual. 5-v REDUCED AMOUNT ON COVERAGE C - The limit of liability for Coverage C may be reduced to no less than 40% of the limit for Coverage A at the credit shown in the Premium Section of the manual. 5-x REPLACEMENT VALUE - PERSONAL PROPERTY - (ML-55) Personal Property may be insured for replacement value at the charges shown in the Premium Section of the manual. 5-y RESIDENCE RENTAL THEFT - (ML-58) Coverage for theft while the premise is rented to others may be added at the additional premium shown in the Premium Section of the manual. 5-aa SEASONAL MOBILE HOMEOWNERS - Seasonal Mobile Homeowners may be written with the same underwriting as a regular mobile home. All seasonal mobile homeowners must have ML-416 (Seasonal Homeowners Endorsement) signed and attached to policy. All seasonal Mobile Homeowners are mandatory $250 deductible. 5-bb SILVERWARE, GOLDWARE & PEWTERWARE COVERAGE (ML-65H) Coverage for silverware, goldware and pewterware may be increased at the premiums shown in the Premium Section of the manual. 5-cc TRIP COLLISION - (ML-26) Coverage may be provided against loss caused by collision or upset at the premiums shown in the Premium Section of the manual. ED. 11/01/2004 7

13 5-dd UNSCHEDULED JEWELRY, WATCHES & FURS - (ML-65H) The total limit on unscheduled jewelry, watches and furs may be increased at the additional premium shown in the Premium Section of the manual. 5-ff VENDORS SINGLE INTEREST - 5-ff-1 REGULAR COVERAGE - (ML-27) Collision, upset, conversion, embezzlement or secretion may be provided to cover the interest of lienholder at the additional premium shown in the Premium Section of the manual. 5-gg ADDED WATER DAMAGES COVERAGE- (ML-72) Coverage may be provided for direct loss to property caused by the backup of water at the premium shown in the Premium Section of the manual. (Ed 7/1/08) 6. OPTIONAL LIABILITY COVERAGE & ENDORSEMENTS: All mandatory or optional Section II Coverages must be written at the same limit. 6-a DESCRIBED RESIDENCE PREMISES - 1 OR 2 FAMILY - Personal Liability and Medical Payments limits of liability may be increased at the premiums shown in the Premium Section of the manual. 6-b ADDITIONAL RESIDENCE PREMISES - 6-b-1 Additional Residence Premises - Occupied by the insured may be covered at the premiums shown in the Premium Section of the manual. 6-b-2 Additional Residence Premises - Rented to others may be covered at the premiums shown in the Premium Section of the manual. (ML-70A) 6-c RESIDENCE EMPLOYEES - Additional premiums for each employee in excess of two are shown in the Premium Section of the manual. ED. 11/01/2004 8

14 6-d BUSINESS PURSUITS - (ML-71) Coverage may be provided for the liability of an Insured arising out of business activities, other than a business of which he is sole owner or partner, at the additional premiums shown in the Premium Section of the manual. Classify as shown below, and apply the charges to each person insured. Classifications: 6-d-1 Clerical Office Employees - Engaged wholly in office work and having no other duty in or about the employer s premises. 6-d-2 Salespersons, Collectors or Messengers - No installation, demonstration or service operations. 6-d-3 Salespersons, Collectors or Messengers - including installation, demonstration or service operations. 6-d-4 Teachers - Athletic, laboratory, manual training, and swimming instruction, excluding liability for corporal punishment of pupils 6-d-5 Teachers - Not otherwise classified, excluding liability for corporal punishment of pupils. Occupations not classified - Refer to Company. 6-e CREDIT FOR ELIMINATION OF SECTION II - Section II may be deleted from the policy or endorsement covering additional residence if the primary policy provides Section II coverage for such residences at the premium credit shown in the Premium Section of the manual. 6-f FARMERS COMPREHENSIVE PERSONAL LIABILITY - (ML-10) (Form ML-10 replaces Mandatory Form ML-9) Farm liability exposures on or away from the residence premises location may be covered at the additional premiums shown in the Premium Section of the manual. The following may not be covered: 1. Farms where the principal purpose is to supply commodities for manufacturing or processing by the Insured for sale to others. 2. Farms where the principal purpose is the raising and using of horses for racing purposes. 3. Incorporated farms. Charges must be made for the initial farm exposure and each additional farm premises, if they exist. ED. 11/01/2004 9

15 6-f-1 6-f-2 6-f-3 6-f-4 6-f-5 Initial Farm Exposure. This includes: 1. The principal farm premises, which is the largest parcel of farm land with out-building(s) whether owned and operated by the insured or rented to others; and 2. All farm land without out-buildings used in conjunction with the above, including any vacant farm land. Any other dwellings located on the farm shall be rated as additional residence premises. Each additional Farm premise - this includes any additional farm with out-building(s), whether owned and operated by the insured or rented to others, and all vacant farm land used in conjunction with it. Any dwellings located on the farm shall be rated as additional residence premises. Farm Employees - Coverage may be provided to include liability and medical payments for farm employees of any insured for injuries sustained during the course of their employment. (ML-311) Farm Employees employed in violation of the law may be specifically excluded. (ML-319) Animal Collision - Coverage may be provided at the additional premium shown in the Premium Section of the manual. 6-g OFFICE, PROFESSIONAL, PRIVATE SCHOOL OR STUDIO OCCUPANCY- Incidental office, professional, private school or studio occupancies are permitted provided: 1. The premises are occupied principally for residential purposes and 2. There is no other business conducted on the premises. At the additional premium show in the Premium Section of the manual, coverage may be provided for the liability of an insured arising from: 6-g-1 An office, professional, private school or studio occupancy in the home or in a separate structure on the premises. The limit of Coverage C shall be not less than 60% of the Coverage A limit. (ML-42) 6-g-2 Professional instruction, given by the Insured, in the home. The Insured employs no assistants and the home has not been altered to accommodate the occupancy. (ML-42) ED. 11/01/

16 6-g-3 An office, professional, private school or studio occupancy in an additional residence premises occupied by the Insured, other than the described home. (ML-43) Space in the described or additional dwellings let to a person other than an Insured shall not be deemed business property while used by that person as an office, professional school, private school or studio. The policy may be so endorsed at no charge. 6-h OUTBOARD MOTORS AND WATERCRAFT - (ML-75) Coverage may be provided for watercraft not covered by the policy at the premiums shown in the Premium Section of the manual. 1. When two or more outboard motors are regularly used together with any single watercraft owned by the Insured, the horsepower of all such outboards shall be accumulated for rating purposes. 2. Sailboats 26 to 40 feet inclusive equipped with auxiliary power are classed as inboard motor boats. 6-i PERSONAL INJURY - (ML-46) Coverage may be provided for the Named Insured s legal liability resulting from the false arrest, libel, slander or invasion of privacy of another at the additional premiums shown in the Premium Section of the manual. 6-j PRIVATE STRUCTURES - RENTED TO OTHERS - (ML-40) When coverage under Section I is provided for private structures rented to others, apply the additional premiums shown in the Premium Section of the manual. 6-k WATERBED LIABILITY - (ML-209) Coverage may be provided for Waterbed Liability at the premiums shown in the Premium Section of the manual. 6-l WORKERS COMPENSATION - CERTAIN RESIDENCE EMPLOYEES Premium for Workers Compensation - Certain Residence Employees must be included for 1,2,3 or 4 family owner-occupied dwellings. Premiums are shown in the Premium Section of the manual. Coverage is included in form ML-9 and ML-10. ED. 11/01/

17 SPECIAL NOTE: This coverage and charge do not apply to ML-4 Tenants Policy. 6-m RENEWAL RETENTION CREDIT Credit is provided to each policy that renews without lapse of coverage once the coverage has been in place with Allegany Co-op Insurance Company for three years. After the initial 3-year qualifying period the renewal credit will be applied as long as coverage is continued without lapse or rewrite. 6-n REPLACEMENT COST PROVISION-(ML-374) Coverage may be provided on a residence less than 8 years old, on a replacement cost basis. This requires 100% insurance to value and a $20,000 minimum Coverage A limit. Rating is shown in the Premium Section of the manual. Ed. 10/01/07 ED. 11/01/

18 RESERVED ED. 11/01/

19 PREMIUM SECTION OPTIONAL COVERAGES ANNUAL PREMIUMS PROPERTY COVERAGES SECTION I Rule No. MAXIMUM AMOUNT OF RATE PER ADD'L INSURANCE AMOUNT AMOUNT 5-a ADDITIONAL LIVING EXPENSE $1,000 $3.00 NONE (COVERAGE D) 5-b BUILDING ADDITIONS & ALTERATIONS-(ML-4) ONLY $1,000 $4.00 NONE (ML-51) 5-c CONSENT TO MOVE MOBLE HOME (ML-25) $10.00 PER POLICY 5-e CREDIT CARDS, FORGERY AND COUNTERFEIT MONEY (ML-57) LIMIT OF LIABILITY RATE $2,500 $5.00 $5,000 $6.00 $7,500 $7.00 $10,000 $ f DEBRIS REMOVAL EXTENSIONS (ML-366) $15. PER RESIDENCE 1- COVERED DEBRIS PRECENTAGE INCREASE 10% $3.00 NONE EXCESS COVERAGE $1,000 $3.00 NONE 2- TREE/EXTENSION $1,000 $5.00 NONE 5-g DEDUCTIBLES DEDUCTIBLE OPTIONS CREDIT/DEBITS $100 12% SURCHARGE $250 STANDARD $500 5% CREDIT $1,000 10% CREDIT $250 THEFT DEDUCTIBLE (CREDIT FROM $100 DEDUCTIBLE) 5% 15 ED. 11/01/2004

20 Rule No. MAXIMUM AMOUNT OF RATE PER ADD'L INSURANCE AMOUNT AMOUNT 5-i EARTHQUAKE (ML-54) ML-1,2,3,5 $1, NONE ML-4 $1, NONE 5-k HIGHER LIMITS ON CERTAIN PROPERTY (ML-65H) APPLY APPROPRIATE CHARGES 5-l HOMEOWNERS EXTRA COVERAGE (ML-148) $22.00 PER POLICY INCREASED COVERAGE (ML-147) INCLUDED 5-m-1 INCREASED LIMIT (COVERAGE C) 5-m-2-2 INCREASED LIMIT (COVERAGE C) (ML-2,3,4 &5) (ML-66 AWAY FROM PREMISES) $1,000 $2.00 NONE $1,000 $12.00 NONE 5-o MONEY & SECURITIES (ML-65H) MONEY SECURITIES ML-1 $100 $4.00 $400 ML-3,3,4 $100 $6.00 $400 ML-1 $100 $3.00 $500 ML-2,3,4 $100 $4.00 $ ED. 11/01/2004

21 Rule No. AMOUNT OF INSUR RATE PER AD ANCE MAXIMUM D'L OUNT 5-p MOTORIZED VEHICLE (ML-65H) $1,000 $5.00 NONE 5-r OUTSIDE ANTENNA (MR-82) $1,000 $20.00 NONE 5-t PRIVATE STRUCTURES - 5-t-1 INCREASED LIMIT PRIVATE STRUCTURES (ML-48) $1,000 $3.00 NONE 5-t-2 INCREASED LIMIT PRIVATE STRUCTURES-RENTED TO OTHER $1,000 $4.00 NONE (ML-40) 5-t-3 INCREASE LIMIT-AWAY FROM INSURED PREMISES (ML-89) $1,000 $3.00 NONE 5-u PROTECTIVE DEVICE CREDIT (ML-216) CREDIT - CENTRAL STATION BURGLARY AND/OR FIRE ALARM SYSTEM MUST HAVE WRITTEN CERTIFICATE 10% - SMOKE DETECTOR 2% - FIRE EXTINGUISHER 2% - SPRINKLER SYSTEMS 3% - ML-RODS 5% 5-v REDUCED AMOUNT (COVERAGE C) $1.00 CREDIT PER $1,000 5-w MOBILE HOME PARK CREDIT 10% CREDIT FROM BASE 5-z NEW HOME CREDITS 1-6 YEARS OF AGE 15% CREDIT FROM BASE 7-12 YEARS OF AGE 10% CREIDT FROM BASE 17 ED. 11/01/2004

22 Rule No. MAXIMUM AMOUNT OF RATE PER ADD'L INSURANCE AMOUNT AMOUNT 5-x REPLACEMENT VALUE-PERSONAL PROPERTY (ML-55) ML-1,2,3 INCREASE LIMIT OF COVERAGE C TO 70% OF COVERAGE A AND INCREASE BASIC POLICY PREMIUM BY 20%. MINIMUM ADDITIONAL CHARGE $20.00 ML-4 INCREASE BASIC POLICY PREMIUM BY 20% MINIMUM ADDITIONAL CHARGE $ y RESIDENCE RENTAL THEFT (ML-58) $12.00 PER POLICY 5-aa SEASONAL MOBILE HOMEOWNERS SEE RATE SHEETS 5-ag SILVERWARE, GOLDWARE & PEWTEREARE (ML-65H) Up to $2,000 Add'l $1,000 $2.50 NONE Over $2,000 $1,000 $5.00 NONE 5-cc TRIP COLLISION (ML-26) $15.00 PER POLICY 5-dd 5-ff UNSCHEDULED JEWELRY, WATCHES & FURS (ML-65H) $500 Limit per Article $1,000 $18.00 NONE VENDORS SINGLE INTEREST 5-ff-1 REGULAR COVERAGE (ML-27) $10.00 PER POLICY 5-gg ADDED WATER DAMAGES COVERAGE (ML-72) $10.00 PER $1,000 Ed 7/1/08 18 ED. 11/01/2004

23 PREMIUM SECTION OPTIONAL COVERAGES ANNUAL PREMIUMS LIABILITY COVRAGES SECTION II LIMIT* MED PAYMENT ADD FOR EACH ADD'L $500 Rule No. 6-a DESCRIBED RESIDENCE PREMISES 1 OR 2 FAMILY (ML-9) b ADDITIONAL RESIDENCE PREMISES 6-b-1 OCCUPIED BY INSURED b-2 RENTED TO OTHERS 1 FAMILY (ML-70A) FAMILY c RESIDENCE EMPLOYEES d BUSINESS PURSUITS (ML-71) 6-d d d d d *LIABILITY/MED PAYMENT 1 - $25,000/ $50,000/ $100,000/ $200,000/ $300,000/ $500,000/ $1,000,000/ ED. 11/01/2004

24 Rule No. LIMIT* MED PAYMENT ADD FOR EACH ADD'L $500 6-e CREDIT FOR ELIMINATION OF SECTION II CREDIT $ f 6-f-1 FARMERS COMPREHENSIVE PERSONAL LIABILITY (ML-10) INITIAL FARM EXPOSURE ACRES ACRES OVER 500 ACRES f-2 EACH ADDITIONAL FARM PREMISES ACRES ACRES OVER 500 ACRES f-3 FARM EMPLOYEES RATE PER $100 OF PAYROLL MINIMUM PREMIUM PER POLICY (ML-311)(ML-319) f-5 ANIMAL COLLISION - $400 LIMIT PER ANIMAL (ML-337) ESTIMATE NO. OF HEAD PREMIUM $ $ $ ,000 $40.00 *LIABILITY/MED PAYMENT 1 - $25,000/ $50,000/ $100,000/ $200,000/ $300,000/ $500,000/ $1,000,000/ ED. 11/01/2004

25 6-g Rule No. LIMIT* OFFICE PERSONAL, PRIVATE SCHOOL OR STUDIO MED PAYMENT ADD FOR EACH ADD'L $500 6-g-1 ON PREMISES (ML-42) g-2 INSTRUCTION ONLY (ML-42) g-3 OFF PREMISES (ML-43) jh OUTBOARD MOTORS AND WATERCRAFT (ML-75) EACH OUTBOARD MOTOR OVER 50 HP INBOARD OR INBOARD- OUTBOARD MOTORBOATS AND SAILBOATS UNDER 16HP LESS THAN 26 FEET TO 40 FT OVER 40 FT MPH LESS THAN 26 FEET TO 40 FT OVER 40 FT OVER 30 MPH LESS THAN 26 FEET TO 40 FEET SAILBOATS-NO AUXILIARY POWER 26 TO 40 FEET *LIABILITY/MED PAYMENT 1 - $25,000/ $50,000/ $100,000/ $200,000/ $300,000/ $500,000/ $1,000,000/ ED. 11/01/2004

26 Rule No. LIMIT* MED PAYMENT ADD FOR EACH ADD'L $500 6-i PERSONAL INJURY (ML-46) DOES NOT INCLUDE MEDICAL PAYMENTS 6-j PRIVATE STRUCTURES -RENTED OT OTHERS (WHEN ML-40 INCLUDED) ML-70A 1 FAMILY FAMILY k WATERBED LIABILITY (ML-209) 6-l WORKERS COMPENSATION CERTAIN RESIDENCE EMPLOYEES INCLUDED 6-m RENEWAL RETENTION CREDIT 10% CREDIT 6-n REPLACEMENT COST PROVISION (ML-374) $10.00 Flat Charge *LIABILITY/MED PAYMENT 1 - $25,000/ $50,000/ $100,000/ $200,000/ $300,000/ $500,000/ $1,000,000/ ED. 11/01/2004

27 PROTECTED SEMI-PROTECTED ALLEGANY CO-OP INSURANCE COMPANY SEASONAL MOBILE HOMEOWNER RATES $250 DEDUCTIBLE ACTUAL CASH VALUE AMOUNT OF INSURANCE $7,000 ML-1 ML-2 ML-3 ML-4 76 $8, $9, $10, $11, $12, $13, $14, $15, $16, $17, $18, $19, $20, $21, $22, $23, $24, $25, $26, $27, $28, $29, $30, $31, $32, $33, $34, $35, $36, $37, $38, $39, $40, EACH ADD'L $1,000 ADD SUBJECT TO UNDERWRITING ML-1 ON 1-20 YEAR OLD MOBILE HOMES ML-2, 3 & 4 AGE OF MOBILE HOME MAY NOT EXCEED 15 YEARS AT TIME OF WRITING ALL POLICIES ARE SUBJECT TO A MINIMUM EARNED OR RETAINED POLICY FEE OF $ ED. 11/01/2004

28 PROTECTED SEMI-PROTECTED ALLEGANY CO-OP INSURANCE COMPANY MOBILE HOMEOWNERS RATES $250 DEDUCTIBLE ACTUAL CASH VALUE AMOUNT OF INSURANCE ML-1 ML-2 ML-3 ML-4 $7, $8, $9, $10, $11, $12, $13, $14, $15, $16, $17, $18, $19, $20, $21, $22, $23, $24, $25, $26, $27, $28, $29, $30, $31, $32, $33, $34, $35, $36, $37, $38, $39, $40, EACH ADD'L $1,000 ADD SUBJECT TO UNDERWRITING ML-1 ON 1-20 YEAR OLD MOBILE HOMES ML-2, 3 & 4 AGE OF MOBILE HOME MAY NOT EXCEED 15 YEARS AT TIME OF WRITING ALL POLICIES ARE SUBJECT TO A MINIMUM EARNED OR RETAINED POLICY FEE OF $ ED. 11/01/2004