THE CINCINNATI INSURANCE COMPANY

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1 1. INSURANCE SCORING MESSAGES A. An Insurance Scoring Message will be secured for new and renewal business and used in conjunction with loss and violation history to determine eligibility for credits. 1. For new business, an insurance scoring message will be secured for all submissions. 2. For renewal business, an insurance scoring message will be secured every three years. At the written request of the Named Insured, an insurance scoring message will be ordered annually on accounts where adverse action resulted from a prior insurance scoring message. At the underwriter's discretion, an insurance scoring message may be ordered on any renewal policy with loss activity or in the reunderwriting of an entire book of business. 3. An insurance scoring message may also be ordered in the middle of a policy term when a Named Insured is added to a policy. B. Negative Factors 1. The following will not be considered a negative factor when reviewing credit history or evaluating credit scores: a. Credit inquiries not initiated by the consumer; b. Credit inquiries related to insurance coverage; c. Disputed information that is currently under investigation by the consumer-reporting agency, if so identified in the records of such agency; d. Collection Accounts with a medical industry code, if so identified on the records of the consumer-reporting agency; e. Multiple lender inquiries, if coded by the consumer lending agency on the consumer's credit report as being from the home mortgage industry and made within 30 days of one another, unless only one inquiry is considered; or f. Multiple lender inquiries, if coded by the consumer-reporting agency on the consumer's credit report as being from the automobile lending industry and made within 30 days of one another, unless only one inquiry is considered. 2. Unless in conflict with paragraph 1. above, consideration will be given to any applicant or insured who has an unfavorable credit score due to medical hardship, identity theft or no credit history at the applicant's or insured's written request. C. Refer to Rule 2.A. Preferred Risk Rating in the State Rate section of the manual for more detailed information on premium discounts and eligibility requirements. NORTH CAROLINA EDITION F (4/09) PA-E-1 PA

2 2. PREFERRED RISK RATING A. Policyholders with good driving records are eligible for discounts for Bodily Injury and Property Damage Liability, or Single Limit Liability, Medical Payments, No-Fault, Other Than Collision, and Collision premiums. Additional discounts are afforded for higher levels of Insurance Scores. B. Eligibility Requirements 1. In order to qualify for Preferred Risk Rating, the following criteria must be met within the past three years: a. Neither the named insured, a licensed driver who is a resident of the household, or any operator of the vehicle(s) has had an at-fault accident, where the amount of the claim payment exceeds $1,000; b. The risk has had no more than one loss resulting in claim payment excluding: (1) Towing and Labor; (2) Glass chip repairs to windshields; (3) Uninsured / Underinsured Motorists losses where the insured driver was not at-fault; (4) One not-at-fault loss; (5) Any not-at-fault Other Than Collision or Collision claims if the insured chooses to increase the deductible beyond the amount of the loss (that is, the sum of the amount paid by the Company and the previous deductible); and (6) Losses determined by Property Claims Services to be a Catastrophe loss. (7) An occurrence of a "loaned vehicle at-fault accident". c. There is no more than one moving violation for any member of the household (or operator) and no more than a total of three moving violations for all members of the household (or operators). 2. Major violations such as DUI, Recklessness, Hit-Skip, or Vehicular Homicide in the last five years are disqualified from receiving Preferred Risk Rating; 3. No operator in the household has had their license suspended or revoked in the last five years; and 4. The risk has an insurance scoring message of C1 through C10 or C12. NORTH CAROLINA EDITION F (4/09) PA-E-2 PA

3 2. PREFERRED RISK RATING (Cont'd) C. Rating Levels Table Qualifications Silver Level Gold Level Platinum Level Number of Losses Number of At-Fault Accidents Number of Not-At-Fault Losses Number of Minor Violations Number of Major Violations / License Suspensions / Revocations One None None One None None One None None One per driver and no more than three per household One per driver and no more than three per household One per driver and no more than three per household None within the past five years None within the past five years None within the past five years Experience with CIC N/A N/A Gold Level for three years Available New / Renewal Business New and Renewal New and Renewal Renewal only 1. At-Fault Accidents To qualify for the Silver rating level, the total claims payment must be less than $1, Not At-Fault Losses a. A not-at-fault Other Than Collision or Collision claim is excluded if the insured chooses to increase the deductible in excess of the amount of the loss (that is, the sum of the amount paid by the Company and the previous deductible). b. Claims for Towing and Labor, glass chip repair of windshields, Uninsured / Underinsured Motorists and losses determined by Property Claims Services to be a Catastrophe loss are excluded. NORTH CAROLINA EDITION F (4/09) PA-E-3 PA

4 2. PREFERRED RISK RATING (Cont'd) 3. Major Violations Risks are not eligible for Preferred Risk Rating if any named insured, household member or any other operator has a major conviction in the last five years including: a. DUI; b. Recklessness; c. Leaving the scene of an accident; d. Hit-skip; e. Vehicular homicide; f. Driving under suspension; g. Drag racing; or h. Fleeing or eluding an officer. D. Loss of Eligibility 1. Silver Rating Level This rating level no longer applies if risks do not meet any of the qualification categories listed in the Rating Levels Table. 2. Gold and Platinum Rating Levels These rating levels no longer apply if risks in a three-year period incur: a. A second at-fault accident by a named insured, a licensed driver who is a resident of the household or any operator of the vehicle; b. More than two total claims paid excluding the types of losses shown above in part C.2. Not At-Fault Losses; c. Three or more minor violations for any one driver and four or more for all drivers collectively. d. An Insurance Scoring Message of C11. NORTH CAROLINA EDITION F (4/09) PA-E-4 PA

5 2. PREFERRED RISK RATING (Cont'd) E. Rating Procedure 1. Silver Rating Level Risks becoming ineligible for this rating level are subject to standard underwriting rules and rates. 2. Gold and Platinum Rating Levels a. Risks are subject to standard underwriting rules and rates when they become ineligible for Preferred Risk Rating due to the following: (1) Two claims due to at-fault accidents; (2) Violations; (3) Major convictions. b. Risks are ineligible for Preferred Risk Rating due to the following: (1) A third claim with no more than one at-fault accident; (2) An Insurance Scoring Message of C11; (3) Risks with an Insurance Scoring Message lower than a prior level are reassigned to the applicable level as indicated in the factors table. F. Reserved For Future Use. G. Factors The following table displays the applicable rating factors by Preferred Risk Rating Level: Rating Level Standard.00 Silver.95 Gold.88 Platinum.85 H. Application The above rating factors are applied on a per auto basis. NORTH CAROLINA EDITION F (4/09) PA-E-5 PA

6 3. CREDITS A. Insurance Scoring Message Credit The following table displays the applicable rating factors by Preferred Risk Rating Level and Insurance Scoring Message: Insurance Scoring Message Rating Level C1 C2 C3 C4 C5 C6 C7 C8 C9 C10 C11 C12 Standard Silver Gold Platinum Application The above rating factors are applied on a per auto basis. 2. Primary Classification Coding a. The following characters are utilized in the last digit of the Primary Classification Code: Silver Gold Platinum C11 No Credit S G P L 0 B. Homeowner-Auto Deviation Credit A 10% downward deviation will apply to all Liability and Physical Damage base premiums for personal auto risks written in conjunction with a Cincinnati Company Personal Homeowners Policy. C. Mature Driver Credit for Drivers A 5% credit will apply to the Bodily Injury Coverage, Property Damage Coverage, Medical Payment Coverage, Collision Coverage and Other Than Collision Coverage for drivers age 50-69, who are the principal operators of the vehicle. Note: This credit does not apply to policies written with the North Carolina Reinsurance Facility. NORTH CAROLINA EDITION F (4/09) PA-E-6 PA