FARMOWNERS AND FARM FIRE

Transcription

1 ITEM FARMOWNERS AND FARM FIRE TABLE OF CONTENTS NSFO PAGE Actual Cash Value Loss Settlement - Windstorm or Hail Losses to Roofs Actual Cash Value or Replacement Cost... 7 Added Animal Perils - Sheep Additional Living Costs and Loss of Rent Annual Policy Term... 8 Back Up of Sewers, Drains and Sump Systems Billing Procedures... 8 Borrowed, Rented or Leased Farm Machinery Cab Glass Cancellation or Reduction in Limits or Coverages... 8 Change/Restriction of Individual Policies... 8 Companion Policy Discount Construction Definitions... 8 Cosmetic Damage by Hail Coverages... 3 Deductibles - Property Coverage Definitions Applicable to Coverage G... 9 Eligibility... 2 Enhancement Endorsement Expanded Replacement Cost Coverage - Coverage A Extra Expense Farm Barns and Outbuildings - Heat Surcharge Farm Dwelling Plus Farm Equipment Cab Glass Farm Extra Expense Farm Fire Policy Forms... 7 Farm Fire Policy Program... 1 Farm Machinery, Equipment and Tools - Special Form Farm Operations Records Farm Outbuildings - Broad Perils Farm Outbuildings - Special Form Farm Personal Property - Peak Season Inventories Farm Plus Endorsement Farmowners Package Policy Program... 1 Farmowners Policy Forms... 7 Fire Protection Discounts Hay In The Open (Includes Hay, Fodder, Straw And Other Animal Bedding) Higher Limits on Certain Property Business Property Credit Card, Electronic Fund Transfer Card Or Access Device, Forgery, and Counterfeit Money 18 Electronic Devices Fire Department Service Charge Guns and Gun Accessories Increased Cost Ordinance or Law Money Motorized Vehicles Securities, Stamps, Letters of Credit Silverware, Goldware and Pewterware Unscheduled Jewelry, Watches and Furs Identity Theft Protection Inflation Guard... 8 Inland Marine Optional Coverage Installed Equipment Breakdown Coverage North Dakota New Business North Star Mutual Ins. Co. Renewals

2 ITEM FARMOWNERS AND FARM FIRE TABLE OF CONTENTS CONTINUED NSFO PAGE Liability Coverages... 1,3-5,7 Livestock Confinement Coverage Loss Due to By-Product From Production or Processing Products Exclusion Loss of Income (Livestock Operations) Mandatory Coverages - Farmowners... 3 Metal Roof Discount - Dwelling Mobile Homes Only - Additional Coverages Collision or Upset Coverage Consent to Move Mobile Home Replacement Cost Mobile Homes Secured Party's Interests - Additional Coverage Modified Replacement Cost - Residence New Home Discount (Coverage A) Non-Depreciation of Repairs (Coverages E & F) Operations Records Optional Inland Marine Coverages Optional Property Coverages Outbuildings - Broad Perils Outbuildings - Special Form Peak Season Inventories Personal Property - Increased, Decreased or Added Limits Personal Property - Special Form Policy Requirements - Minimum Limits... 5 Premium Discounts for Protective Devices Premium Modifications Property Perils Covered... 6 Rate Pages - Farm Base Premiums Dwellings - Farm Dwelling Plus Dwellings - Owner Occupied Dwellings - Tenant Occupied Farm Personal Property and Farm Buildings Mobile Homes Optional Endorsements Tenant Contents (Dwelling) Tenant Contents (Mobile Home) Rating Territories and Location of Risk Modifiers Refrigerated Food Products Refrigerated Milk Products Replacement Cost - Farm Outbuildings Replacement Cost - Irrigation Equipment Replacement Cost - Personal Property Roof Surface Replacement Cost Factor Solar Panel(s) Coverage Special Form - Personal Property (Coverage C) Special Form - Farm Machinery, Equipment and Tools Special Form - Farm Outbuildings Theft Coverage - Residence Under Construction Underground Service Line Coverage Underwriting Requirements... 3 Winter Perils - Livestock Wood Shingle Surcharge (Dwelling) Woodburning/Solid Fuel Surcharge North Dakota New Business North Star Mutual Ins. Co. Renewals

3 This manual section is used to write Farmowners policies and Farm Fire policies. A few parts of this section do not apply to both Farmowners and Farm Fire. These parts indicate if they apply to Farmowners or Farm Fire. The Farmowners policy is primarily for owner-occupied farms and provides both property and liability coverages. The Farm Fire policy is primarily for non-owner occupied farms (although owner occupied farms may be written) and provides only property coverage. FARMOWNERS PACKAGE POLICY PROGRAM The Farmowners Package Policy program has been designed to fill the property and liability coverage needs of both the Farmer and the Rancher. Farm Package Policies are not alike! The North Star Farmowners has several strong points summarized as follows: 1. The entire policy is on an easy read or simplified language policy basis. This makes everything much easier to read and to understand. 2. Personal property is automatically insured to 60% of the dwelling coverage (75% on Farm Dwelling Plus). Personal property usually at a residence other than the insured premises is limited to the greater of 10% of the Coverage C limit or $1, Additional living cost is covered for actual loss sustained in 12 months with no dollar limit. 4. $500 Fire Department Service Charge coverage is included in base policy without additional charge. 5. Coverage for death of livestock (excluding sheep) by collapse of buildings, accidental shooting, drowning and attack by dogs or wild animals is included without additional charge (when Basic Perils applies). 6. Provides Borrowed, Rented or Leased Farm Machinery and Equipment coverage up to $10,000 at no additional charge for Basic Perils. 7. The Damage to Property of Others coverage in the Farm Liability is included up to $1,000 and includes damage done by animals and damage to farm machinery in the insured s care, all without additional premium charge. Limits higher than $1,000 may be purchased (up to $10,000 limit). 8. Liability coverage for outboard motors 50 HP or less is automatically included without additional charge. 9. Fire, smoke or explosion legal liability coverage is automatically provided for damage to farm dwellings or outbuildings the insured uses or rents for up to the Farm Liability limits, without additional charge. 10. Farm Employee coverage for part time farm employees working 40 days or less per year is automatically included at no additional charge. A charge must be made for each farm employee that works (a) over 40 days, but less than 180 days per year; or (b) 180 days per year or more. 11. Limited Farm Pollution and Clean Up Coverage is provided - $10,000 (aggregate limit) for a discharge, dispersal, seepage, migration, spill, release or escape of agricultural chemicals, liquids and gases that occurs quickly and abruptly and is accidental. Optional (aggregate) limits of $25,000 or $50,000 may be purchased. 12. $100,000 (aggregate limit) for property damage caused by accidental spray drift of agricultural chemicals applied on the insured premises is also provided. FARM FIRE POLICY PROGRAM The Farm Fire Policy program has been designed to fill the property coverage needs of both the Farmer and the Rancher. Only farm properties are eligible. This could include small acreages not eligible for Homeowners or Mobile Homeowners policies or farms that do not meet the eligibility requirements of the Farmowners. Vacant, unused farm properties are not eligible. The North Star Farm Fire policy has several strong points summarized as follows: 1. The entire policy is on an "easy read" or simplified language policy basis. This makes everything much easier to read and to understand. 2. $500 Fire Department Service Charge coverage is included in base policy without additional charge. 3. Coverage for death of livestock (excluding sheep) by collapse of buildings, accidental shooting, drowning and attack by dogs or wild animals is included without additional charge (When Basic Perils applies). 4. Provides Borrowed, Rented or Leased Farm Machinery and Equipment coverage up to $10,000 at no additional charge for Basic Perils. The rates in this manual section include the Farmowners Package discount. Add 15% to the rates for a Farm Fire Policy which is not eligible for the package discount. North Dakota New Business North Star Mutual Ins. Co. NSFO - 1 Renewals

4 ELIGIBILITY 1. Eligibility - Farmowners: a. Owner-Occupant b. Tenant farm or ranch operator 2. Prohibited Risks: a. Farms where principal income is from custom farming or where custom work is in other than local area. b. Farms or ranches where horses are raised or trained for show purposes or for racing. c. Farms where principal purposes are supplying of commodities for manufacturing or processing by the insured for sale to others. d. Vacant or unused farm buildings. e. Poultry or poultry farms. (Confinement Type) f. Buildings with exposed urethane or styrene insulation. 3. Mobile homes will be insured on an actual cash value basis. Mobile homes may be written on a replacement cost basis - see the paragraph titled Mobile Homes Only - Additional Coverages, for requirements. Mobile homes must be permanently located with hookups to water, sewage disposal and electricity. When the mobile home is the primary residence of named insured, it must be in excellent condition, not over 25 years old, insured for at least $10,000 and written with sufficient supporting business. We will accept mobile homes with factory installed woodburning fireplaces. 4. Following is a list of Farm risks not to be bound and generally will not be written: a. Property which is generally below average physical condition. b. Risks cancelled or nonrenewed by other carriers. c. Risks which have sustained 2 OR MORE losses during the past 3 year period. Must be referred to Home Office underwriting. d. Homes which do not meet the following update requirements: 1) Electrical amp. 2) Plumbing - updated in last 40 years. 3) Heating - replaced in the last 30 years. 4) Roof - reshingled in the last 20 years. (Roof surfaces that are 15 years old or older may not be insured for replacement cost coverage.) e. Homes with roofs or siding of asbestos or slate. f. Risks where the insureds have a history of financial instability within the last 5 years. g. Risks with wild animals or pets that show aggressive or vicious tendencies. h. Risks with Dobermans, Rottweilers, Presa Canarios (also known as Canary Island Cattledog), Pit Bulls (including, but not limited to, American Pit Bull Terriers, American Staffordshire Terriers, or Staffordshire Bull Terriers), Chows or dogs with aggressive tendencies should not be submitted. i. Wall furnaces that are unvented. (They create problems due to fumes they generate.) j. Unusual risks including basement homes, log homes, earth homes, dome homes and homes with flat roofs. 5. Following is a list of WOODBURNING/SOLID FUEL EQUIPMENT RULES: a. Homemade woodburning and solid fuel units and barrel stoves are not acceptable. b. Woodburning or solid fuel equipment that shares a common flue with other heating appliances is not acceptable. All woodburning or solid fuel equipment must have its own separate flue, including add-on furnaces. c. Woodburning or solid fuel equipment that has not been professionally installed will be unacceptable. Exceptions to this will require a photo of the equipment and full details must be given to our underwriters if special consideration is to be given. d. Woodburning or solid fuel units with heat reclaiming devices connected to the stovepipe are not acceptable. e. Woodburning or solid fuel units in attached garages are not acceptable. f. Whenever a Farm application is submitted for property having woodburning or solid fuel equipment, our Solid Fuel Questionnaire, CF-624, must be completed and attached to the application. g. All stoves and chimneys must be UL approved. h. Mobile homes with factory installed woodburning fireplaces are acceptable. Mobile homes with any other type of woodburning or solid fuel equipment are not eligible for coverage. 6. Maximum limits available for dwellings are $900,000 if Protected, $750,000 if Partially Protected, and $700,000 if Unprotected. North Dakota New Business North Star Mutual Ins. Co. NSFO - 2 Renewals

5 UNDERWRITING REQUIREMENTS 1. A completed Farm application must be submitted including insured's social security number. Credit Bureau Reports often are a factor in determining acceptability of a risk. 2. A recent photograph is required for each building covered. 3. Hay, fodder, straw and other animal bedding in stacks, windrows or bales while in the open are covered for loss caused by only the perils of fire or lightning and are limited to $15,000 per stack. A stack means hay, fodder, straw or other animal bedding in one area separated by a clear space of 100 feet or more from any other hay, fodder, straw or other animal bedding in the open. The per stack limit may be increased to $20,000 for an additional premium. 4. Refer to the Property Coverage form (FP-1) for other Coverage E. Scheduled Farm Personal Property that may have special limits, special limitations, limited perils, property not covered and/or other limitations. 5. When writing unscheduled farm personal property, coverage must be written at 100% of inventory value. The 80% coinsurance clause of the policy will apply. A $50,000 minimum inventory is required to be written in this class. All items of farm machinery and miscellaneous equipment/tools valued at $2,500 or more must be listed on the unscheduled farm personal property inventory. In addition to the items listed, we also require a minimum of: a. 10% of the farm machinery and equipment inventory to cover tools, spare parts and miscellaneous equipment valued under $2,500; and b. 1% of the livestock inventory to cover veterinary supplies and other animal care items. Refer to the Property Coverage form (FP-1) for other Coverage F. Unscheduled Farm Personal Property that may have special limits, special limitations, limited perils, property not covered and/or other limitations. 6. All irrigation systems must be scheduled under Coverage E. Information required when writing a center pivot irrigation system must include the age, manufacturer, total span and legal description of its location. COVERAGES Coverage A - Residence Coverage C - Personal Property Coverage D - Additional Living Expense and Loss of Rent Coverage Coverage E - Scheduled Farm Personal Property Coverage F - Unscheduled Farm Personal Property Coverage G - Farm Barns, Buildings, and Structures MANDATORY COVERAGES - FARMOWNERS Property Coverages Coverage A - Residence Coverage C - Personal Property Coverage D - Additional Living Costs Liability Farm Personal Liability A base premium charge for Property and a base premium charge for Liability must be made. For Liability forms, rules, rates, and underwriting criteria refer to the Farm/Personal Liability section of the Agents Manual. FARM DWELLING PLUS - CF-1876 COVERAGES The Farm Dwelling Plus Endorsement (CF-1876) will be used together with the Property Coverage (FP-1), Personal Liability Coverage (Farm) (NS-710), and Personal Injury (FL-46). The additional coverages described below will be provided. 1. Covers the residence, personal property and additional living costs against risks of direct physical loss unless the loss is excluded. 2. Provides expanded replacement cost coverage to the dwelling not to exceed 125 percent of the Coverage A limit. 3. Replacement Value on personal property is an automatic coverage, subject to the limit shown on the Declarations for Coverage C (75% of Cov. A included). North Dakota New Business North Star Mutual Ins. Co. NSFO - 3 Renewals

6 FARM DWELLING PLUS - CF-1876 (Continued) 4. Refrigerated Food Products coverage is automatically included. This provides coverage, without special limit, for refrigerated foods lost due to interruption of electrical service or by mechanical or electrical breakdown of the refrigeration system. No deductible applies. 5. Locks and Garage Door Transmitter Replacement is automatically included. This provides coverage for the cost to replace locks on exterior doors of the insured dwelling and replace the garage door opener transmitter when the keys to those locks or the transmitter are lost or part of the covered theft loss. No deductible applies. 6. Personal Injury coverage is automatically included up to the Personal Liability limit. ELIGIBILITY AND UNDERWRITING REQUIREMENTS 1. A completed application must be submitted along with a recent photo and social security number. 2. Only 1 family owner-occupied dwellings used only for private residential purposes and with no more than 2 borders or roomers are eligible. 3. A policy may be issued to cover a dwelling in the course of construction provided the policy is issued only in the name of the intended owner-occupant of the dwelling and will be completed within approximately 6 months. Coverage must be written at 100% of expected completed value. 4. The Minimum limit available shall be $200, Maximum limits available are $900,000 if Protected, $750,000 if Partially Protected and $700,000 if Unprotected. 6. The dwelling must be insured for 100% of current replacement cost. Contents will also be on a replacement cost basis and cannot be written for less than 75% of Coverage A - Residence. 7. An addition to or remodeling of the dwelling which increases its value by $5,000 or more must be reported within 90 days of the start of the project. 8. A smoke detector should be placed on each floor. For dwellings with 3 levels, a minimum requirement is that smoke detectors be placed on at least 2 levels. 9. The Farm Dwelling Plus Program has been designed for dwellings 30 years old or less. Dwellings which meet all 4 of the following requirements shall also be considered eligible: a. Electrical Service must have been upgraded within the last 30 years, including new wiring, new receptacles, new circuit boxes and conduit in exposed areas. Such upgrading shall have been approved by a state electrical inspector. b. Plumbing must have been upgraded within the last 30 years, including new pipes. c. Heating System (furnace) must have been replaced within the last 30 years. d. Roof shingles must have been replaced within the last 20 years. (Roof surfaces that are 15 years old or older may not be insured for replacement cost coverage.) Dwellings over this age will be considered if they meet all four of the above requirements and a Preferred Dwelling Supplemental Application, CF-580, is completed. Once written on this policy, renewals under this plan will be considered for dwellings exceeding the above requirements age limits subject to property maintenance, updating and good loss experience. 10. Dwellings are not acceptable if they have older wood roofs, clay tile roofs or if they have asbestos slate roofs or siding. 11. Dwellings with masonry fireplaces that have a masonry/brick chimney and clay liner will be acceptable. Dwellings with UL approved fireplaces and UL approved metal chimneys are acceptable if they have been installed after January 1, Dwellings with any other type of woodburning equipment are not acceptable. North Dakota New Business North Star Mutual Ins. Co. NSFO - 4 Renewals

7 FARM DWELLING PLUS - CF-1876 (Continued) 12. Following is a list of Farm Dwelling Plus risks not to be bound and generally will not be written: a. Property that is in generally below average physical condition. This program is designed for risks of a better class in all respects. This will require careful original risk selection and continuous monitoring by the agent. b. Risks cancelled or nonrenewed by other carriers. c. Risks which have sustained 2 OR MORE losses during the past 3 year period. d. Dwelling risks which were not originally designed for dwelling purposes. (e.g., a mercantile building converted to a dwelling. e. Trailer homes, Mobile Homes, Double wide Mobile Homes, Converted Mobile Homes or House Trailers whether permanently located with attached leans or not. These are specifically excluded for Farm Dwelling Plus coverage. f. Dwellings without a central heating system (other than all-electric homes). g. Unusual risks including basement homes, log homes, earth homes, dome homes, and homes with flat roofs. h. Risks where insureds have a history of financial instability within the last 5 years. i. Risks with wild animals or pets that show aggressive or vicious tendencies. j. Risks with Dobermans, Rottweilers, Pit Bulls (including, but not limited to, American Pit Bull Terriers, American Staffordshire Terriers, or Staffordshire Bull Terriers), Chows or dogs with aggressive tendencies should not be submitted. k. Do not submit risks with trampolines or swimming pools, unless prior approval has been received from a North Star underwriter. POLICY REQUIREMENTS - MINIMUM LIMITS The minimum limits for a Farm Policy are as follows: Property Coverages Basic Perils Broad Perils Special Form Farm Dwelling Plus Tenant's Policy Residence (Dwelling) $25,000 $40,000 $50,000 $200,000 N/A Residence (Mobile Home) $10,000 $12,000 $15,000 N/A N/A Personal Property 60% of limit 60% of limit 60% of limit 75% of limit N/A (Owner Occupied Residence) on residence on residence on residence on residence Personal Property $0 $0 $0 N/A $8,000 (Tenant Occupied Residence) Additional Living Costs (Owner Occupied Residence and Tenant's Policy) Actual Loss Sustained in 12 Months for All Forms Additional Living Costs $0 $0 $0 N/A N/A (Tenant Occupied Residence) Farm Personal Property Farm Barns, Buildings & Structures Open - When writing unscheduled we require coverage be written at 100% of inventory value - total inventory is subject to a minimum of $50,000. Open Secondary Locations-Coverage A Minimum Limits 1 or 2 family dwellings: $25,000 Mobile Home: $10,000 Liability Coverages - Refer to the Farm/Personal Liability section of the Agents Manual Farm Personal Liability (Farmowners only) Personal Liability Medical Payments to Others Damage to Property of Others $50,000 each occurrence $ 1,000 each person $ 1,000 each occurrence Commercial Liability Coverages (Farm Premises and Operations) (Farm Fire only) Bodily Injury and Property Damage $50,000 each occurrence North Dakota New Business North Star Mutual Ins. Co. NSFO - 5 Renewals

8 PROPERTY PERILS COVERED The Property Coverage form describes 4 levels of coverage - Limited, Basic, Broad and Special. The level of coverage that applies to each item listed on our declarations will be shown opposite the item. Limited Perils Fire or Lightning Windstorm or Hail Explosion Riot or Civil Commotion Aircraft Basic Perils All perils listed for Limited Perils, plus: Vandalism or Malicious Mischief Collision Theft Vehicles Sudden and Accidental Damage from Smoke Sinkhole Collapse Volcanic Eruption Electrocution of Livestock Additional Perils Applying to Livestock (accidental shooting, drowning, attack by dogs or wild animals, collapse of a building) Broad Perils All perils listed for Basic Perils, plus: Falling Objects Weight of Ice, Snow or Sleet Sudden and Accidental Tearing Apart, Cracking, Burning or Bulging of a Heat or Air Conditioning System or Water Heater Accidental Discharge or Overflow of Liquids or Steam Freezing of a Plumbing, Heating or Air Conditioning System or Domestic Appliance Sudden and Accidental Damage From Artificially Generated Electrical Currents Special Form - Covers the risk of direct physical loss unless the loss is limited or excluded. Glass or Safety Glazing Material is an Incidental Property Coverage and only applies to dwellings insured for Basic, Broad, or Special. Collapse of a Residence is an Incidental Property Coverage and only applies to dwellings insured for Broad or Special. These lists contain the title of the perils. Refer to the Property Coverage form for the complete wording of these perils. North Dakota New Business North Star Mutual Ins. Co. NSFO - 6 Renewals

9 ACTUAL CASH VALUE OR REPLACEMENT COST Dwellings written with the Farm Dwelling Plus Endorsement, and their Household Personal Property, are automatically written with replacement cost coverage. The dwelling must be written at 100% of its full replacement cost. Other Dwellings can be written on an actual cash value basis or a replacement cost basis. To be on a replacement cost basis the dwelling must be written from 90% to 100% of the full replacement cost of the dwelling. The only exception to this is where the amount of insurance, meaning market value, is less than 90% of the replacement cost of the dwelling, by using endorsement FP see the paragraph titled Modified Replacement Cost - Residence. To be on an actual cash value basis the dwelling must be written for 100% of its actual cash value. Other Household Personal Property is written on an actual cash value basis. Household Personal Property can be written on a replacement cost basis if written from 90% to 100% of the full replacement cost of the personal property - see the paragraph titled Replacement Cost - Personal Property. Mobile Homes are written on an actual cash value basis. Mobile homes can be changed from an actual cash value basis to a replacement cost basis on owner occupied mobile homes up to 20 years of age or tenant occupied mobile homes up to 15 years of age if they are in excellent condition. Coverage must be written from 90% to 100% of the full replacement cost of the mobile home. Replacement cost coverage may not be allowed or may be removed depending on the condition and upkeep of the mobile home. - see the paragraph titled Additional Coverages - Mobile Homes Only. Farm Personal Property is only written on an actual cash value basis. Farm Barns, Buildings and Structures are written on an actual cash value basis. Outbuildings can be written on a replacement cost basis if written from 80% to 100% of the full replacement cost of the building - see the paragraph titled Replacement Cost - Farm Outbuildings. FARMOWNERS POLICY FORMS A Farmowners package policy (property and liability coverage) consists of the following modular sections: Coverage Part Form Number Farm Dwelling Plus Property Coverage... FP-1,CF-1876, FL-46 Dwelling Property Coverage... FP-1 Farm Property Coverage... FP-1 Personal Liability Coverage (Farm)... NS-710 State Amendatory Endorsements... FP-131 Declarations and Schedules Policy Jacket Other forms and/or endorsements may be attached depending on optional coverages purchased. FARM FIRE POLICY FORMS A Farm Fire policy (property coverage) consists of the following modular sections: Coverage Part Form Number Dwelling Property Coverage... FP-1 Farm Property Coverage... FP-1 State Amendatory Endorsements... FP-131 Declarations and Schedules Policy Jacket Other forms and/or endorsements may be attached depending on optional coverages purchased. North Dakota New Business North Star Mutual Ins. Co. NSFO - 7 Renewals

10 INFLATION GUARD The Inflation Guard Provision is mandatory in the North Star Mutual Farm Program for Coverage A and Coverage C when a dwelling/mobile home is written on a replacement cost basis. These 2 coverages will automatically be updated annually based on changing dwelling and mobile home construction cost factors. The residence must be insured to at least 90% (100% for Farm Dwelling Plus) of its full Replacement Cost and the Application must be completed and photograph of residence attached. The Inflation Guard Provision is mandatory in the North Star Mutual Farm Program for farm buildings when they are written on a replacement cost basis. The building coverage limit will automatically be updated annually based on changing building construction cost factors. The building must be insured to at least 80% of its full Replacement Cost and the Application must be completed and photograph of building attached. Inflation Guard does not apply unless a building is written with Replacement Cost Coverage. CHANGE/RESTRICTION OF INDIVIDUAL POLICIES If a policy must be changed or restricted to be eligible for issuance, a restriction of the policy will be made on the declarations page. ANNUAL POLICY TERM The policy will be written for a term of 1 year. The policy will be automatically renewed each year with an updated declarations page. A completed renewal application along with new photos and a listing of the unscheduled farm personal property inventory is required at the end of 5 years. The policy will be subject to the premiums, rules and forms in effect at the time of renewal. Policyholders will initially receive copies of all forms. Upon renewal they will receive an updated declarations and forms that are new or revised. Policyholders may receive all policy forms upon request a statement notifying the insured of this will be on each annual declarations. BILLING PROCEDURES See the Billing Information section of the Agents Manual. CANCELLATION OR REDUCTION IN LIMITS OR COVERAGES It is not permissible to cancel any of the mandatory coverages unless the entire policy is cancelled. If the policy or non-mandatory coverages are cancelled or the amount of insurance is reduced, compute the amount of any return premium on a pro rata basis. CONSTRUCTION DEFINITIONS Frame Masonry A dwelling with walls of frame, or metal-sheathed or stuccoed frame construction, or with walls of metal or metal lath and plaster on combustible supports. A dwelling with walls of masonry or masonry veneered construction. Mixed A dwelling shall be classed as frame construction when the wall area of frame construction Construction (including gables) exceeds 33-1/3% of the total wall area. North Dakota New Business North Star Mutual Ins. Co. NSFO - 8 Renewals

11 DEFINITIONS APPLICABLE TO COVERAGE G Metal Buildings - A base building charge applies to this class plus a rate per $100 of coverage - see rate pages. Conventional metal pole buildings fall into this category. Both the walls and roof must be metal and of original construction. The framework may be either wood or steel. (An older frame outbuilding covered with metal is not original construction and belongs in the Barns, Outbuildings and Other Structures class). Steel Bins This class can be used to insure Grain Storage Bins as well as the grain elevator legs and auger complexes between bins. We encourage you to specify the leg and the auger complex, so that there is no question in the event of loss. This class does not include Grain Drying Bins (Grain Drying Bins is a separate rate class.). Hoop Buildings Hoop buildings can only be insured for Basic Perils. Barns, Outbuildings and Other Structures (excluding silos) Silos: Type 1 - A base building charge applies to this class plus a rate per $100 of coverage - see rate pages. a. Building must be in good physical condition, and so certified by the agent after careful inspection. b. Buildings must be written at 80% of their actual cash value. c. Not over 1 story high. d. Foundation under all exterior walls must be continuous and of mortared masonry or concrete construction. Buildings framed on poles of minimum 6 inch diameter at ground line, set a minimum of 4 feet below ground level may be considered as satisfying this requirement when the poles have been pressure treated with wood preservative. e. Building must be fully enclosed with no open sheds attached. f. No hay, fodder, straw or other animal bedding storage. g. No exposed urethane or styrene insulation. h. Building must be fully utilized in the farming operation. i. Type 1 buildings written for less than $2,000 shall be classified as Type 3. Type 2 - A base building charge applies to this class plus a rate per $100 of coverage - see rate pages. a. Building must be in good physical condition, and so certified by the agent after careful inspection. b. Buildings must be written at 80% of their actual cash value. c. Foundation under all exterior walls must be continuous and of mortared masonry or concrete construction. Buildings framed on poles of minimum 6 inch diameter at ground line, set a minimum of 4 feet below ground level may be considered as satisfying this requirement when the poles have been pressure treated with wood preservative. d. No exposed urethane or styrene insulation. e. Building must be fully utilized in the farming operation. f. Type 2 building written for less than $2,000 shall be classified as Type 3. Type 3 a. Portable Buildings and Structures. b. Buildings or bins occupied or constructed for grain grinding, seed grain drying, alfalfa or hay chopping, private greenhouses. c. All other buildings not eligible for Type 1 or Type 2 classification. Type 1 - A base building charge applies to this class plus a rate per $100 of coverage - see rate pages. All steel construction with integral roof, foundation and walls with unloading from the bottom. Type 1 silos written for less than $5,000 shall be classified as Type 2. Type 2 - A base building charge applies to this class plus a rate per $100 of coverage - see rate pages. Silos not qualifying for Type 1. North Dakota New Business North Star Mutual Ins. Co. NSFO - 9 Renewals

12 RATING TERRITORIES and LOCATION OF RISK MODIFIERS (LORM) (Dwellings, Mobile Homes, Scheduled and Unscheduled Farm Personal Property and Farm Barns, Buildings, and Structures only) LORM TERR DESCRIPTION 1.00 TERR. 1 Counties of Barnes, Benson, Bottineau, Burleigh, Cass, Cavalier, Dickey, Eddy, Emmons, Foster, Grand Forks, Griggs, Kidder, LaMoure, Logan, McHenry, McIntosh, Nelson, Pembina, Pierce, Ramsey, Ransom, Richland, Rolette, Sargent, Sheridan, Steele, Stutsman, Towner, Traill, Walsh, and Wells 1.20 TERR. 2 Counties of Adams, Bowman, Grant, Hettinger, McLean, Mercer, Morton, Oliver, Renville, Sioux, Slope, and Ward 1.22 TERR. 3 Counties of Billings, Burke, Divide, Dunn, Golden Valley, McKenzie, Mountrail, Stark, and Williams PREMIUM MODIFICATIONS DEDUCTIBLES - PROPERTY COVERAGE A flat $1,000 deductible applies (unless an optional deductible is written) to all property losses in all property forms except: 1. the Incidental Property Coverages provided for Emergency Removal, Fire Department Service Charge, Credit Card, Electronic Fund Transfer Card Or Access Device, Forgery, and Counterfeit Money; 2. an optional property coverage that states a specific deductible is applicable; 3. an optional property coverage that states a deductible does not apply; or 4. an Inland Marine form. Inland Marine forms have their own deductible. See the Inland Marine Manual Section. The deductible amount is subtracted only once per occurrence regardless of the number of covered items affected. The policy may be issued with a single deductible amount that applies to all perils and all coverages that are subject to the deductible provision. Multiply the premiums by the appropriate factor in the Optional Deductible chart below. Split Deductible Option The policy may be issued with a split deductible. This means the deductible option selected for property covered under Coverages A, C and D differs from that selected for property covered under Coverages E, F, and G. When an occurrence affects 2 or more items with different deductible amounts, only the highest deductible applies. Multiply the premiums by the appropriate factor in the Optional Deductible chart below. Common Loss Deductible In the event that a covered loss occurs as a result of one occurrence to property covered under more than one policy insured with North Star Mutual, only the highest applicable deductible will apply, regardless of the number of covered property items damaged or destroyed. This provision will not apply: 1. to property rented to others for a fee when that property is insured on a separate policy than the insured s owner-occupied property, 2. if the total loss is less than the highest deductible, or 3. if it is in the insured s benefit that separate deductibles be applied. Attach Endorsement CF-2162 North Dakota New Business North Star Mutual Ins. Co. NSFO - 10 Renewals

13 PREMIUM MODIFICATIONS (Continued) OPTIONAL DEDUCTIBLES - ALL PERILS - (Base Deductible is $1,000) Deductible Factor , (Base) 1, , , , , , FARM BARNS AND OUTBUILDINGS - HEAT SURCHARGE Charges apply to building. 1. Gas or Electric: For gas or electric brooders and heating stoves or gas or portable electric heating devices of any description (other than electric lights or heat bulbs). 2. Wood, coal or oil burning brooders or heating stoves. Charges for the above are not cumulative. If more than 1 charge is applicable the higher charge will be used. NOTE: No charge if heated by permanently installed warm air furnace, hot water or steam heating plant set on an incombustible base and venting to standard chimney built from the ground and with no other type of heating device in the building. Charge per $100 insurance. Electric or Gas $.09 Other.18 FIRE PROTECTION DISCOUNTS (Dwelling/Mobile Home Premium) The Base Premiums are for unprotected areas. Risks located in areas designated as Partially Protected or Protected, as defined below, are eligible for the premium discount shown. Fire Protection Definitions: Protected Dwelling/Mobile Home is located within 1,000 feet of a fire hydrant and within 5 road miles of a responding fire department. Reduce Base Policy Premium (dwelling/mobile home premium) 15%. Partially Dwelling/Mobile Home is located over 1,000 feet from a fire hydrant, but is within 5 road miles of Protected a responding fire department. Reduce Base Policy Premium (dwelling/mobile home premium) 5%. Unprotected All others. IDENTITY THEFT PROTECTION Farmowners Policies only - This protection consists of: 1. Identity Theft Recovery Service An advocacy service is provided through our partnership with CyberScout. This fully case-managed expert service takes care of victims problems by leading them through the restoration process, including notifying the appropriate authorities, dealing with governmental agencies, credit collection agencies, credit bureaus, and credit grantors until the crisis is resolved. They even follow-up months later to ensure success. 2. Disaster Document Recovery CyberScout also assists disaster victims rebuild their original means of identification, as well as recreate other crucial personal and financial documents or help them with emergency authentication if they are impacted by disasters, such as hurricanes, tornados, earthquakes, including acts of terrorism, as well as home fires and floods - regardless of whether an identity theft occurred. Should an identity theft occur as a consequence of such a disaster, their advocate is there to protect and rebuild their identity. North Dakota New Business North Star Mutual Ins. Co. NSFO - 11 Renewals

14 PREMIUM MODIFICATIONS (Continued) IDENTITY THEFT PROTECTION (Continued) 3. Identity Fraud Expense Coverage Coverage of $5,000 is provided, at no additional cost, for expenses incurred by an insured as the direct result of identity fraud. Identity fraud occurs when an individual s personal identifying information is used without his or her permission to purchase goods or services, obtain credit, borrow money, or otherwise violate federal, state, or local law. A $100 deductible applies to Identity Fraud Expense coverage. Coverage is provided for expenses resulting from identity fraud that occurs at any time prior to the end of the policy period and is discovered by the insured during the policy period or during the one-year period that follows. In the event that the insured obtains replacement identity fraud expense coverage, the one-year extended discovery period terminates as of the date the replacement coverage takes effect. Covered expenses include: Costs for obtaining, reproducing, notarizing, or sending affidavits or other pertinent documents; Costs for telephone calls; Research fees; Lost earnings, not to exceed a maximum of $250 per day, per insured, or a total of $5,000 for lost earnings of all insureds; Loan application fees for reapplying for a loan; and Attorney fees to defend lawsuits, remove criminal or civil judgments, or challenge information provided in a consumer credit report. Optional higher limits of Identity Fraud Expense Coverage may be purchased If a higher limit is purchased, the total limit that applies to Identity Fraud Expense Coverage will be shown on the Declarations: Amount of Increase Total Limit Additional Premium $ 5,000 $10,000 $ ,000 15, ,000 20, ,000 25, NEW HOME DISCOUNT (Coverage A) A new dwelling or mobile home may be eligible for a premium discount as shown in the table below. For the purpose of this rule, a dwelling is considered new if it has been completed and occupied within the last 14 calendar years and a mobile home is considered new if it has been completed and the "model year" is within the last 10 calendar years. The discount shall apply only to the base dwelling or mobile home premium (must adjust for the following if applicable: revised limits of Coverage C and a selection of a deductible). It shall not apply to optional coverages or higher limits on certain property. Premium Discount Table Dwelling Mobile Home Year of Construction or Model Year Discount Discount Current Calendar Year 28% 20% 1 Year Preceding Current Calendar Year 26% 18% 2 Years Preceding Current Calendar Year 24% 16% 3 Years Preceding Current Calendar Year 22% 14% 4 Years Preceding Current Calendar Year 20% 12% 5 Years Preceding Current Calendar Year 18% 10% 6 Years Preceding Current Calendar Year 16% 8% 7 Years Preceding Current Calendar Year 14% 6% 8 Years Preceding Current Calendar Year 12% 4% 9 Years Preceding Current Calendar Year 10% 2% 10 Years Preceding Current Calendar Year 8% 0% 11 Years Preceding Current Calendar Year 6% 0% 12 Years Preceding Current Calendar Year 4% 0% 13 Years Preceding Current Calendar Year 2% 0% North Dakota New Business North Star Mutual Ins. Co. NSFO - 12 Renewals

15 PREMIUM MODIFICATIONS (Continued) COMPANION POLICY DISCOUNT Farmowners policies are eligible for a 10% discount if the insured's Personal Auto Insurance is written through North Star. This discount will apply to the entire premium (property, liability, & inland marine, if applicable). WOOD SHINGLE SURCHARGE (Dwelling) All dwellings with risks that have wood shingles will be surcharged 20%. This surcharge would apply to the Base Premium. PREMIUM DISCOUNTS FOR PROTECTIVE DEVICES - ML-216 The following premium discounts will be allowed for the installation of a burglar alarm, fire alarm or automatic sprinkler system in the dwelling. Systems must be UL approved and maintained in good working condition. 1. Central Station Burglary and/or Fire Alarm System - a discount of 5%. 2. Alarm system that alerts the Fire Department or Police Department - a discount of 3%. 3. Burglary and/or Fire Local Alarm System - a discount of 2%. (For the purposes of this rule, a Fire Local Alarm System shall include smoke, heat or gas detectors.) This discount is not available when items 1. or 2. apply. (This discount does not apply to Farm Dwelling Plus dwellings since the discount is already reflected in the Farm Dwelling Plus premium). 4. Automatic Sprinkler System with sprinklers in all areas including bathrooms, attics and attached structures - a discount of 3%. 5. Automatic Sprinkler System with sprinklers not in all areas - a discount of 2%. These discounts apply to the base dwelling or mobile home premium (must adjust for the following if applicable: revised limits of Coverage C and a selection of a higher deductible). It shall not apply to optional coverages or higher limits of Property or Liability coverages. Maximum discount allowed is 8%. WOODBURNING/SOLID FUEL SURCHARGE All Farm policies with dwellings that have woodburning equipment (except seasonal dwellings or dwellings with a masonry fireplace with either a masonry/brick chimney or a metal chimney purchased after 1986 that withstands up to 2100 degree temperatures) or solid fuel burning equipment (corn, wood pellets, etc.) will be surcharged $45.00 per year. A masonry fireplace with insert is a fireplace that was originally built as a masonry fireplace and later had an insert installed - this will take the surcharge. Mobile homes with factory installed woodburning fireplaces are acceptable and will be surcharged $45.00 per year. Mobile homes with any other type of wood heating equipment are not eligible for coverage. INSTALLED EQUIPMENT BREAKDOWN COVERAGE NS-0420 Installed Equipment Breakdown covers mechanical and electrical breakdown of installed equipment in an insured farm dwelling or farm outbuilding. Covered equipment includes: equipment designed and built to operate under internal pressure or vacuum, other than weight of contents, communication and computer equipment and other electrical or mechanical equipment. Self-propelled mobile farm equipment, wagons, trailers and implements are not covered; however, GPS, auto steer systems and crop monitors are covered as Transportable Electrical Equipment. The policy deductible applies subject to a minimum of $500. Coverage limits are as follows: Coverage A, C & D... $50,000 Coverage E, F &G... Limit of insured item Computers (in Dwelling or Outbuilding)... Limit of Coverage C or G Farm Income/Extra Expense/Loss of Rents... Limit stated on Declarations Utility Interruption (12 hour waiting period)... Follows Farm Extra Expense limit Transportable Electrical Equipment... $25,000 This coverage will be included at a rate of per $100 of the total insurable values of Coverages A, C, D, E, F and G on the Farmowners and Farm Fire policies. However, if the insured does not want this coverage it can be removed by written request. Contact underwriting for acceptability and rating of risks with power generating equipment producing over 1,000 kw or those risks with 3 or more Equipment Breakdown losses in a 3 year period. North Dakota New Business North Star Mutual Ins. Co. NSFO - 13 Renewals

16 PREMIUM MODIFICATIONS (Continued) ROOF SURFACE REPLACEMENT COST FACTOR As roof surfaces age they become more susceptible to damage by windstorm and hail. To maintain replacement cost coverage, a charge will be made on dwellings with asphalt shingles 16 years old and older. For steel or asphalt roofs under 5 years old, a credit will be applied. The roof surface age is determined by the difference between the current calendar year and the year the roof surface was installed. For example, calendar year is 2012 and the roof surface was installed in 1995, the roof surface age would be 17 years. When a dwelling has multiple roof surface ages the oldest roof surface age will be used to determine the applicable factor. This charge is not applicable when Actual Cash Value Loss Settlement Windstorm or Hail Losses to Roofs (CF- 1545) or Cosmetic Damage Exclusion (CF-2065) applies. Roof Surface Age Asphalt Steel Roof Surface Age Asphalt Steel New to 15 Years Year Years Years Years Years Years Years Years Years and Older METAL ROOF DISCOUNT (Cosmetic Damage Exclusion applies) CF-2065 Dwellings Dwellings are eligible for a 10% discount when the dwelling has a metal roof surface. This discount is optional and when taken, form CF-2065 Cosmetic Damage Exclusion is added to the dwelling. North Dakota New Business North Star Mutual Ins. Co. NSFO - 14 Renewals

17 OPTIONAL PROPERTY COVERAGES (See Rate Pages for Premium Charges) ADDED ANIMAL PERILS - SHEEP - FP-356 Coverage for death of sheep by accidental shooting, drowning, attack by dogs or wild animals, and collapse of buildings may be provided at an additional premium. For the acceptability of this coverage, refer each case to Home Office Underwriting. ADDITIONAL LIVING COSTS AND LOSS OF RENT When writing an owner-occupied residence or a tenants contents policy, Additional Living Costs and Loss of Rent coverage is provided for the actual loss sustained in 12 months. When writing a tenant-occupied residence no Additional Living Costs or Loss of Rent coverage is provided. This coverage can be purchased. BACK UP OF SEWERS, DRAINS AND SUMP SYSTEMS - FP-208 (This is not Flood Insurance) For an additional premium, coverage for direct loss to covered property caused by water or matter present in the water which enters the residence through sewers, drains and sump systems may be added. This coverage does not apply to coverage D. This coverage is only available when writing Broad Perils or Special Form. The policy deductible amount and terms apply to this coverage. NOTE: An agent cannot bind coverage. Coverage does not become effective until 15 days after the effective date shown on the Declarations issued for this coverage. (applies if the coverage is new or to any increase of limit). The following underwriting eligibility criteria must be met when writing sewer back-up limits of $10,000 or more: 1. No previous sewer back-up claims in the past 5 years. 2. There must be a sump pump with a battery back-up and/or a generator on site. The generator can be automatic or portable. BORROWED, RENTED OR LEASED FARM MACHINERY The policy provides up to $10,000 ($25,000 if Farm Plus Endorsement purchased) Basic Form coverage for direct physical loss from the Basic Perils to farm machinery and equipment that is rented, borrowed, or leased from others (please refer to Insurance Under More Than One Policy in the FP-1) at no additional charge. The amount of coverage for this is shown on the Declarations. The amount of coverage can be increased by applying the rate from the rate page to the amount of the increase. Special Form When special form is written for this coverage, a premium must be charged for the $10,000 coverage that is included [(Special Rate Basic Rate) x (10,000/100)]. If a higher limit is written, the special form rate shown on the rate page applies to the increased limit. If the Farm Plus Endorsement has been purchased, Special Form can be added for [(Special Rate Basic Rate) x ($25,000/$100)]. Examples: Assume the $1,000 deductible rates for this coverage are Basic Perils - $0.32 and Special Form - $0.46. To add Special Form to the $10,000 included, the premium calculation is [($0.46 -$.32) X ($10,000/$100)] = $ To add Special Form and increase the coverage to a total of $18,000, the premium calculation is [($ $0.32) X ($10,000/$100)] = $14.00 plus ($0.46 X $8,000/$100)] = $37.00 for a total charge of $ North Dakota New Business North Star Mutual Ins. Co. NSFO - 15 Renewals