TO ALL CONNECTICUT AGENTS

Transcription

1 September 28, 2015 TO ALL CONNECTICUT AGENTS NEW OFFERINGS IN OUR HOMEOWNER PROGRAM We are excited to bring some new offerings to our Homeowner program making it even more competitive while offering you solutions to some common problems. All of these offerings are available effective 10/1/15. Enhanced Personal Property (NLC-77CT) This form broadens the perils insured against for contents from named peril coverage to coverage for direct physical loss, subject to applicable exclusions. Underwriting conditions include Base deductible on the policy must be at least $500 Available on HO 3 form new and renewal. Is not available on risks with the Home Operated Business coverage. Premium charge will be 20% of the base premium We are introducing 2 additional Homeowner endorsements that cannot be bound without prior underwriting approval and customer sign-off. They may be used at the discretion of an underwriter as a tool to allow some flexibility to retain an existing account that meets our guidelines in all other aspects. Copies of the endorsements are available on our website. Since these represent coverage exclusions or limitations, please contact your underwriter for further information and the required acknowledgement forms. Other Structure Exclusion Endorsement (NLC-80) This form can be used to exclude a specific Other Structure from Section I property coverages. Canine Liability Exclusion Endorsement (NLC-81) This form will be used on a very limited basis to exclude liability coverage for a specifically named dog. It is not routinely intended to be used for risks with a prohibited breed of dog or a dog with a prior bite history. Since all of these are new endorsements, you will need to modify your agency management systems to accommodate these new selections when they show up in your download. If not they will error and you will have to deal with them manually. Actual copies of the endorsements are available on our website. If you have any questions about these changes please feel free to give your underwriter, marketing representative or me a call. Thanks for doing business with NLC! Sincerely, George W. Francis, AU Vice President Marketing

2 CONNECTICUT HOMEOWNERS MANUAL CHECKING SLIP THESE CHANGES ARE APPLICABLE TO ALL POLICIES WRITTEN ON OR AFTER OCTOBER 1, 2015 Revised Pages Page 12 Page 46 Page 50 Page 52 Page 54 SEE NEXT PAGE FOR COMPANY PAGES CURRENTLY IN EFFECT Connecticut Homeowners -1- Checking Slip

3 CONNECTICUT HOMEOWNERS MANUAL COMPANY PAGES CURRENTLY IN EFFECT Page 1 Dec 1, 2014 Page 29 Sept 1, 2015 Page 2 June 1, 2014 Page 30 Aug 1, 2013 Page 3 Dec 1, 2014 Page 31 Aug 1, 2013 Page 4 Dec 1, 2014 Page 32 Aug 1, 2013 Page 5 Dec 1, 2014 Page 33 Sept 1, 2015 Page 6 Sept 1, 2015 Page 34 Sept 1, 2015 Page 7 Sept 1, 2015 Page 35 Apr 1, 2010 Page 8 Sept 1, 2015 Page 36 June 1, 2000 Page 9 Apr 1, 2009 Page 37 Oct 1, 2013 Page 10 Sept 1, 2015 Page 38 May 1, 2008 Page 11 Aug 1, 2013 Page 39 Aug 1, 2013 Page 12 Oct 1, 2015 Page 40 Aug 1, 2013 Page 13 Aug 1, 2013 Page 41 Aug 1, 2013 Page 14 Sept 1, 2015 Page 42 Aug 1, 2013 Page 15 Sept 1, 2015 Page 43 Aug 1, 2013 Page 16 Sept 1, 2015 Page 44 Aug 1, 2013 Page 17 Sept 1, 2015 Page 45 Aug 1, 2013 Page 18 Sept 1, 2015 Page 46 Oct 1, 2015 Page 19 Sept 1, 2015 Page 47 Sept 1, 2015 Page 20 Sept 1, 2015 Page 48 Sept 1, 2015 Page 21 Sept 1, 2015 Page 49 July 1, 2004 Page 22 Sept 1, 2015 Page 50 Oct 1, 2015 Page 23 Sept 1, 2015 Page 51 Sept 1, 2015 Page 24 Sept 1, 2015 Page 52 Oct 1, 2015 Page 25 Sept 1, 2015 Page 53 Sept 1, 2015 Page 26 Aug 1, 2013 Page 54 Oct 1, 2015 Page 27 Aug 1, 2013 Direct Bill 1 Feb 1, 2009 Page 28 Aug 1, 2013 Direct Bill 2 Feb 1, 2009 Connecticut Homeowners -2- Checking Slip

4 The NLC Homeowner program has been designed for one and two family owner occupied dwellings that are owned by individuals and not corporations. It is priced competitively and with credits, additional coverages and optional endorsements, it allows you to customize the coverage to your insured s needs. Most risks meeting the eligibility guidelines noted below will be acceptable to NLC. However, no underwriting guidelines can be all inclusive. Some risks have a combination of underwriting factors which are not possible to define by rules, yet strongly suggest a greater than average chance of loss. Therefore, there will be some risks which appear to meet all stated rules which will not be acceptable, just as there will be risks which may fail one or more underwriting criteria, but can be considered upon request. By working together, we can develop a book of business which will contribute to long term, mutual profitability. We will periodically review the quality of your new business submissions pointing out any trends that may lead to unprofitable results. Should it be necessary, we will work out a plan of action with you to correct any unprofitable trends. We require a completed application signed by both a producer licensed with NLC Insurance Companies and the applicant. On our website, we provide you with access to Marshall & Swift/Boeckh RCT product to help you determine the appropriate Coverage A values for your applicants. We expect that you will use this tool for all new business submissions. Insured must disclose all material information requested by the Company prior to the policy being issued or renewed. The company may refuse to renew coverage if the named insured fails to complete and return an acceptable renewal or supplemental underwriting questionnaire. Interior or exterior inspections may be conducted on risks insured with NLC. Refusal of an inspection may result in cancellation or nonrenewal. The New Business Homeowner Program Guidelines listed below are the basis for which risks are declined prior to issuance and for cancellations within the first 60 days of coverage. For cancellations of policies that have been in effect for more than 60 days, the reason for cancellation must be based on upon the following specific reasons listed in the policy contract: Substantial change in the risk since the policy was issued; Material misrepresentation of the fact, if known, would have caused the policy not to be issued; or Nonpayment of premium. If the return premium is not refunded with the notice of cancellation or when the policy is returned, the company will refund the premium within a reasonable time period after the date of cancellation takes effect. The Renewal Business Homeowners Program Guidelines listed below are the basis for which risks will be nonrenewed. NEW BUSINESS AND RENEWAL BUSINESS HOMEOWNER PROGRAM GUIDELINES (These Eligibility Guidelines supersede previously filed guidelines.) Risk Characteristic Number of Families Guidelines / Notes: One and two family owner occupied dwellings are eligible. For three and four family owner occupied dwellings pre-inspection and approval by the Company is required prior to binding coverage. Multi-family dwellings must be built as such. No converted dwellings or garages are acceptable (new business only). Connecticut Homeowners -1- December 1, 2014

5 Risk Guidelines / Notes: Characteristic Occupancy Residences with a business run on premises, including farming operations, are not eligible unless the business qualifies to be written under one of NLC s home operated business endorsements. No more than 2 unrelated people may reside per dwelling unit. Residences must be used solely for residential purposes. Residences used as boarding houses (i.e. bed and breakfast or rooming house) are ineligible. No student housing is allowed. No daycare conducted on premises. Residences that are vacant, under renovation or rehabilitation are not eligible. Residences that are listed For Sale are not eligible (new business only). For a dwelling that is a duplex, NLC must insure the entire dwelling or the dwelling must have a fire wall which extends through the roof at least 18 inches between the units. General Condition Personal trust (non-realty trusts) may be eligible based on verification that the grantor of the trust will be the named insured on the policy. Characteristics No more than two mortgagees are allowed. of the Property Dwellings must be well constructed, well maintained with a pride of ownership. Risks that are not adequately maintained are not eligible. Multi-family residences must have two separate and remote acceptable means of egress from each unit. Unacceptable means of egress include but are not limited to rope ladders and metal ladders bolted to the dwelling. Row houses are not acceptable (new business only). Homes on the historic registry or with extensive interior or exterior period details such as rare or one-of-a-kind stained glass windows, moldings, flooring, windows or other antique features are not eligible. Dwellings built on stilts, pilings unless newly constructed or reconstructed on architecturally engineered pilings, sand dunes or on unsatisfactory landfill are not eligible. Residences must be on a paved road, accessible to fire trucks and visible from other residences year round. Dwellings with excessive clutter and debris inside or outside to such a degree which would increase the risk of loss are not acceptable. Mobile homes, manufactured homes, log homes, EIFS construction, homes constructed with exterior asphalt shingles or asbestos siding or any other risk with unique construction are not eligible. Residences within 50 feet of an unacceptable exposure are not eligible. Dwellings would only be considered unacceptable if the adjacent exposures present objectively identifiable hazards which significantly increase the risk of loss to the insured property. All dwellings on the same deeded lot must be insured with us and meet eligibility requirements. Major System Component Update Requirements All dwellings must meet the Major System Component Update requirements below regardless of age of construction. An acceptable Supplemental Risk Assessment Questionnaire should be obtained at the time of application for homes older than 50 years and must be available upon request for Company review. In some cases, photos may also be requested. All dwellings built prior to 1900 and two family dwellings built prior to 1950 require prior underwriting approval before binding coverage. To be considered, submit an acceptable Supplemental Risk Assessment Questionnaire and photos to underwriting for review. In addition to meeting all update requirements, homes built prior to 1900 must have been completely gutted and reconstructed by a licensed contractor using modern day construction methods and materials. (new business only) HEATING Central heat is required. No space heaters of any kind are allowed. Connecticut Homeowners -2- June 1, 2014

6 Risk Characteristic Guidelines / Notes: Secondary heating sources (wood stoves, pellet stoves etc) may be acceptable when properly installed. (See Wood Stove guidelines below). No more than two stoves allowed per risk. Furnaces should have been replaced within the last 25 years. Furnaces should be cleaned yearly or have an annual service contract. If the unit is older, approval may be considered depending on the condition of the unit. To be considered, forward a statement from a professional heating or service contractor verifying that the unit is in good working order along with verification of an annual service contract to underwriting for review. PLUMBING Copper, CPVC, PVC or PEX pipes are acceptable. No galvanized or lead pipes or known leaks are allowed. If the dwelling is over 30 years old, the plumbing must be updated with evidence of regular replacement and maintenance of fixtures, faucets, under sink and appliance fittings. Connections to appliances such as washing machine hoses or water connections to refrigerators should be regularly replaced if showing signs of wear and tear. Water heaters should be new within the last 10 years. There should be no signs of leaking. ELECTRICAL The electrical system must be updated within the last 30 years. No fuses are allowed. A minimum of 100 amp service with circuit breakers per unit is required. All remnants of knob and tube, aluminum wiring or fuses must be removed. No Federal Pacific Circuit Breakers or Stab Lok circuit breakers. Risks with RINSCO Magnetrip or Pushmatic Bulldog Electric panels and/or circuit breakers are not eligible. ROOF Roof must be in good condition without evidence of moss, mold, lichen and broken, lifting, curling or missing shingles or tiles. Asphalt shingle roofs must have been replaced within the last 20 years. Metal roofs must have been replaced within the last 25 years without evidence of rust or other signs of wear and tear. Slate or tile roofs must be properly maintained and meet other condition standards. Roofs with patchwork repairs are unacceptable. Trees limbs, branches or bushes should not be touching the house or overhanging the roof, eaves or fascia. Flat, rolled or rubber roofs are not acceptable. Copper roofs are not acceptable. Asbestos shingles are not acceptable. Other Hazards Central station burglar/fire alarms are required for homes in PC 1-8 at Coverage A value of $650,000 and above and for homes in PC 9 at Coverage A value of $500,000 and above. Dwellings located in Flood Zones A or V must have flood insurance. Risks with increased hazard factors such as, but not limited to underground tanks, exterior oil tanks, trampolines, spiral staircases, tree houses or skateboard ramps are not eligible. Dwellings must be well maintained with no storage of hazardous materials or constructed with asbestos materials such as flooring, siding or insulation. Dwellings under construction must meet the requirements for Theft In Or To a Dwelling Under Construction coverage. Risks that have pools with diving boards or slides are not eligible. In-ground swimming pools must have an approved fence with self-latching or locking gate and restricted access when not in use. Connecticut Homeowners -3- December 1, 2014

7 Risk Characteristic Loss History* Payment History Prior Carrier Coastal Underwriting Criteria Criminal Activities Guidelines / Notes: Above ground swimming pools must also have restricted access from yard when not in use including, self-latching or locking gate, ladders with locking mechanisms that can be raised or removable ladders. All swimming pools and hot tubs must also meet any state/city building or safety codes. If there are firearms or ammunition on the insured premises, they must be stored in a locked container and restricted from access to children and/or visitors. The company uses a 5 year loss experience period to determine eligibility. No losses that can be attributed to negligence on behalf of the insured. No prior loss where the risk to loss has not been mitigated. No prior liability loss unless the cause of loss has been mitigated and/or has not been attributed to negligence of the insured. No prior unrepaired damage. No frequency of claims or history of similar type claims. No open losses (new business only). Losses on the covered property from prior owners are acceptable if the risk has been mitigated No risks with more than one loss. No loss within the first 60 days of the policy. (new business only) No prior undisclosed losses. No more than three non payments in one term and no more than seven non payments in the last three terms. New business where the insurance obtained from the prior carrier was obtained solely at the insistence of a mortgagee, written in the FAIR Plan, or written with a non-standard carrier is unacceptable. If the prior carrier cancelled or nonrenewed the prior policy then a copy of the cancellation or nonrenewal notice must be submitted so the company can determine if the reason for the prior cancellation or nonrenewal would make coverage unacceptable based on these guidelines. Must have previous insurance with no lapse in coverage. Dwellings purchased under recent foreclosure or previously bank owned are not eligible. (new business only) See separate Coastal Guideline page for eligibility. No history of criminal activities or felonious crimes or other related criminal actions associated to an insured or to the insured location. Animals Risks with losses due to an animal will not be eligible. Animals must be restrained, up to date with required vaccinations and not allowed to roam freely. No more than 3 dogs of any breed per location. No more than 2 horses on premises and must be for personal use only. No riding lessons, showing or boarding of horses. Up to 2 head of livestock acceptable and must be for personal use only. No more than 3 domestic pets per location. Prohibited Dogs List Risks with the following types of pets and animals are not eligible for any of our Tier Programs : American Bull Dog, Akita, Belgian Malinois, Bull Mastiff or Mastiff, Chow, Doberman Pinscher, German Shepherd, Great Dane, Husky-all varieties, Malamute, Pit Bull Terrier, Rottweiler, Spitz, St. Bernard, Staffordshire Bull Terrier, Wolf Dogs, or any mix of the above. The list is not inclusive and breeds of dogs with similar characteristics or with biting history are not eligible. Risks with the following types of pets and animals are acceptable with an acceptable canine questionnaire and prior underwriter approval: Airedale, Boxer, Dalmatian, Giant Schnauzer, and Kerry Blue Terrier. Connecticut Homeowners -4- December 1, 2014

8 Risk Guidelines / Notes: Characteristic Other Prohibited Aggressive or exotic or unusual animals such as ferrets, raccoons, skunks, snakes, pot belly pigs or other non-domestic animals. Animals Wood Stoves/Solid Risks with woodstoves located in PC 9 or 10 are not eligible unless the dwelling has a central fire alarm. (new business only) Fuel Burning Wood stoves must be professionally installed and inspected by the Fire Marshall or similar Devices type official. No more than two stoves per risk. The stove must be UL approved and adhere to all clearance standards. Barrel or homemade stoves are not eligible. The stove must be maintained and cleaned on a regular basis. Combustibles cannot be stored within proximity of the stove. A woodstove questionnaire must be completed. The woodstove flue cannot be vented into any other heating source. The woodstove must not be the primary heat source. Exterior wood burning furnaces are not eligible. Kerosene stoves or heaters, propane stoves, gas on gas stoves or any other auxiliary heaters are not acceptable. Non-vented stoves are not eligible. Woodstove in outbuildings, garages or multi-family dwellings with non-owner occupied units are not eligible. Secondary/ Seasonal Seasonal homes are defined as those that are not occupied or accessible throughout the year and/or are unoccupied for periods of 3 or more consecutive months. Secondary/Seasonal dwellings are eligible only if the primary residence is written with NLC group of companies. No binding authority is available on these risks. Dwellings must not be held for weekly or monthly type rentals. Proper controls in place to prevent losses due to lack of heat, failure of mechanical systems, etc. during periods of unoccupancy (e.g. draining pipes, low temperature sensor systems, water sensor system). Watercraft Houseboats and pontoon boats are not eligible. Boats over 20 years old are not eligible. Jets skis and wave runner boats are not eligible. Maximum hull coverage cannot exceed $30,000. Boats over 26 feet are not eligible. Maximum speed is 30 MPH. * NLC Insurance Companies will not cancel, decline or nonrenew a homeowners policy based solely on the following: claim inquiries made on a policy; a claim filed with no loss payment; a claim filed with a loss payment of less than $500; or any loss incurred as a result of a catastrophic event as declared by a nationally recognized catastrophe loss index provider. There may be other factors in selected cases to warrant termination of a risk in our Underwriting judgment. We reserve the right to make exceptions when justified. Confirmation to Law: If any provision of these guidelines should be in conflict with the Connecticut Law or Insurance Department regulations, that provision will be void but the remainder of the guidelines shall remain in effect. Connecticut Homeowners -5- December 1, 2014

9 Tier 0 HOMEOWNERS PROGRAM 1. Single family primary residences only. 2. Forms HO 00 03, HO and HO available only. 3. Dwellings built within the last 50 years. 4. Credit Based Insurance Scores must be 700 or greater. 5. No dogs or farm animals. 6. Coverage A must be 100% of the replacement cost. 7. Minimum Dwelling Limit is $175, New business submissions must have no claims* in the last 3 years. One property claim* < $2,500 is acceptable for this tier. 9. Renewals must not have more than one claim* in the last 5 years. 10. Risks must be in above average condition. 11. No more than one non-payment in the prior term and no more than 3 non-payments in the past 3 terms. 12. Refer to Coastal Guidelines for tier placement of risks within specified distance to the coast. Tier 1 HOMEOWNERS PROGRAM 1. Single family primary residences only. 2. Forms HO 00 03, HO and HO available only. 3. Dwellings built within the last 60 years. 4. Credit Based Insurance Scores must be 700 or greater. 5. No farm animals. 6. Coverage A must be 100% of the replacement cost. 7. Minimum Dwelling Limit is $175, New business submissions must have no claims* in the last 3 years. One property claim* < $2,500 is acceptable for this tier. 9. Renewals must not have more than one claim* in the last 5 years. 10. Risks must be in above average condition. 11. No more than 2 non-payments in the prior term and no more than 3 non-payments in the past 3 terms. 12. Refer to Coastal Guidelines for tier placement of risks within specified distance to the coast. Tier 2 HOMEOWNERS PROGRAM 1. Single family primary residences only. 2. Forms HO 00 03, HO 00 04, & HO available only. 3. Dwellings built within the last 70 years. 4. Coverage A must be 100% of the replacement cost. 5. Minimum Dwelling Limit is $150, New business submissions with no claims* in the last 3 years are acceptable. One property claim* < $2,500 is acceptable for this tier. 7. Renewals must not have more than one claim* in the last 3 years and no more than 2 claims* in the past 5 years. 8. Risks must be in above average condition. 9. No more than 2 non-payments in the prior term and no more than 4 non-payments in the past 3 terms. 10. Refer to Coastal Guidelines for tier placement of risks within specified distance to the coast. Connecticut Homeowners -6- September 1, 2015

10 Tier 3 HOMEOWNERS PROGRAM 1. Single family primary residences only. 2. Forms HO 00 03, HO 00 04, & HO available only. 3. Dwellings built within the last 100 years. 4. Coverage A must be 100% of the replacement cost. 5. Minimum Dwelling Limit is $100, New business submissions with one claim* less than $5,000 in the last 3 years are acceptable. 7. Renewals must not have more than one claim* in the last 3 years and no more than 2 claims* in the past 5 years. 8. Risks must be in at least average condition. 9. No more than 2 non-payments in the prior term and no more than 5 non-payments in the past three terms. 10. Refer to Coastal Guidelines for tier placement of risks within specified distance to the coast. Tier 4 HOMEOWNERS PROGRAM 1. One to two family primary residences and single family secondary/seasonal residences. 2. Forms HO 00 02, HO 00 03, HO and HO available only. 3. Coverage A must be at least 80% of the replacement cost. 4. Minimum Dwelling Limit is $100, New business submissions with one claim* in the last 3 years are acceptable. 6. Renewals must not have more than 2 claims in the last 3 years and no more than 3 claims* in the past 5 years. 7. Risks must be in average condition. 8. No more than 2 non-payments in the prior term and no more than 6 non-payments in the past three terms. 9. Refer to Coastal Guidelines for tier placement of risks within specified distance to the coast. Tier 5 HOMEOWNERS PROGRAM 1. One to four family primary residences and single family secondary/seasonal residences. 2. Forms HO 00 02, HO 00 03, HO and HO available (HO renewals only). 3. Coverage A must be at least 80% of the replacement cost. If Coverage A is less than 80% of the replacement cost, NLC-20CT endorsement is required. 4. New business submissions must have no more than 1 claim* in the last 3 years. Two claims* <$5,000 is acceptable for this tier. 5. Renewals must not have more than 2 claims in the last 3 years and no more than 3 claims* in the past 5 years. 6. Risk must be in average condition. 7. No more than 3 non-payments in the prior term and no more than 6 non-payments in the past three terms. 8. Refer to Coastal Guidelines for tier placement of risks within specified distance to the coast. Tier 6 HOMEOWNERS PROGRAM 1. Policies that do not meet the criteria for Tiers 0 through 5 above are eligible for this tier on an exception basis. 2. One to four family primary residences and single family secondary/seasonal residences. 3. Forms HO 00 02, HO 00 03, HO and HO available (HO renewals only). 4. Coverage A must be at least 80% of the replacement cost. If Coverage A is less than 80% of the replacement cost, NLC-20CT endorsement is required. 5. No more than 3 non-payments in the prior term and no more than 7 non-payments in the past three terms. 6. Renewals must not have more than 3 claims* in the last 5 years. 7. Refer to Coastal Guidelines for tier placement of risks within specified distance to the coast. * The following claims will not be considered in the above tier determination: claims where there is no loss payment; claims inquiries made on the policy; claims caused by any catastrophic event; and claims where the total amount paid is less than $500. Connecticut Homeowners -7- September 1, 2015

11 COASTAL GUIDELINES (HO3 policies only) New Business New business that is less than 2600 feet from the coast will be subject to a 5% Hurricane Deductible and eligible for Tier 6 only. New risks located 2600 feet to one mile of the shore in New Haven, Middlesex and New London counties will be subject to a 2% Hurricane Deductible. New risks located 2600 feet to one mile in Middlesex and New London counties will be eligible in Tier 5 only. Additionally, new business policies in Middlesex and New London counties that are between one and three miles from the shore will be subject to a 2% Hurricane Deductible. Renewal Business (Renewals with an original effective date prior to October 1, 2014) Risks that meet NLC Coastal Mitigation Requirements require no special underwriting handling. Risks that do not meet NLC Coastal Mitigation Requirements are subject to the following underwriting requirements: Distance to shore Underwriting Categories Fairfield County New Haven County New London & Middlesex Counties 0 to 249 Feet TIERING Tier 6 Tier 6 Tier 6 DEDUCTIBLE 5% Hurricane Ded. 5% Hurricane Ded. 5% Hurricane Ded. 250 to 2599 Feet TIERING Tier 6 Tier 6 Tier 6 DEDUCTIBLE 2% Hurricane Ded. 5% Hurricane Ded. 5% Hurricane Ded Feet to < 1 TIERING Any Tier Any Tier Tier 5 Mile DEDUCTIBLE No Requirement 2% Hurricane Ded. 2% Hurricane Ded. 1 Mile to < 2 Miles TIERING Any Tier Any Tier Any Tier DEDUCTIBLE No Requirement No Requirement 2% Hurricane Ded. 2 Miles and More TIERING Any Tier Any Tier Any Tier DEDUCTIBLE No Requirement No Requirement No Requirement NLC Coastal Mitigation Requirements (Renewals with an original effective date prior to October 1, 2014) Risks that have the following characteristics meet NLC coastal mitigation requirements: Dwellings located in Flood Zones A or V must have flood insurance. The dwelling must be able to have all exposed glass covered with storm shutters cut to fit over all window and door openings. Plywood shutters must be made of plywood that is pre-cut, in good condition and stored onsite in an accessible, dry and secure location on the property. Anchorage hardware for plywood shutters must be pre-installed on all window and door openings. Other types of shutters are acceptable as long as they meet ASTM E 1886, ASTM E 1996, TAS 201, TAS 202 or TAS 203 standards. Roof shingles, supports and decking that can withstand sustained wind speeds of 120 MPH. NLC will require verification of these mitigation factors. Verification includes receipts, photos or a statement from a licensed contractor. Connecticut Homeowners -8- September 1, 2015

12 COASTAL GUIDELINES (CONTINUED) Banding - The following coastal banding charges apply to HO - 1, 2 & 3 Distance from coast Fairfield County New Haven County Middlesex County New London County <1000 feet feet feet 1mile >1mile 2 miles >2miles 3 miles >3miles 4 miles >4miles 5 miles >5miles 6 miles >6miles 7miles >7miles 8 miles >8miles 9 miles >9 miles 10 miles >10 miles Banding - The following coastal banding charges apply to HO 4 & 6 Distance from coast Fairfield County New Haven County Middlesex County New London County <1000 feet feet feet 1mile >1mile 2 miles >2miles 3 miles >3miles 4 miles >4miles 5 miles >5miles 6 miles >6miles 7miles >7miles 8 miles >8miles 9 miles >9 miles 10 miles >10 miles Connecticut Homeowners -9- April 1, 2009

13 HOMEOWNERS CAPACITY Maximum Principal Residence that is > one mile from the coast $700,000 New Business Principal Residence that is > one mile from the coast $900,000 Renewal Business Principal residence that meets coastal guidelines: Middlesex & New London counties < 1 mile from the shore $400,000 Fairfield & New Haven counties <2600 feet from the shore $400,000 Dwellings Under Construction $400,000 Secondary/Seasonal Residence $250,000 If over 3 miles from a fire department or over 200 feet $250,000 from the road and not visible from adjacent properties Personal Liability $500,000 Medical Payments $ 5,000 New Business Only Minimum 1 4 Family Dwelling $100,000 Seasonal Dwelling $ 50,000 INLAND MARINE CAPACITY Maximum Jewelry - Women's Single Item $ 30,000 Jewelry - Men's Single Item $ 20,000 All Other Single Items $ 30,000 Total Combined Schedules $ 150,000 BINDING AUTHORITY Agents may bind coverage if the risk meets the underwriting requirements of this manual as outlined in the agency s agreement with NLC. Coverage may not be bound or an application submitted for business to be effective 90 or more days from the current date. Connecticut Homeowners -10- September 1, 2015

14 FORMS AND COVERAGES Section I Coverages available- Coverage A - Dwelling Coverage B - Other Structures Coverage C - Unscheduled Personal Property Coverage D - Loss of Use Section II Coverages available- Coverage E - Personal Liability Coverage F - Medical Payments To Others Forms available- HO HO HO HO HO Basic Form Not Available for New Business Broad Form Special Form Contents Broad Form Condominium Unit Owners Form SECTION I MINIMUM COVERAGE LIMITS PROVIDED One and Two Family Dwellings HO HO HO HO HO Coverage A $50,000 $50,000 $50,000 nil nil Coverage B 10% of A 10% of A 10% of A nil nil Coverage C 50% of A 50% of A 50% of A $6,000 $6,000 Coverage D 10% of A 20% of A 20% of A 20% of C 40% of C Connecticut Homeowners -11- August 1, 2013

15 HOW TO RATE HOMEOWNERS PROCEDURE 1. The Basic Premium for HO-1, HO-2 and HO-3 is calculated as follows: Determine the base rate from the rate pages. Multiply the base rate by the Coverage A Factor. Multiply the result by the Tier Factor, Experience Rating Modifier, Form Factor, NLC-77CT Factor if applicable, Protection Class Factor, Masonry Credit Factor, Credit Score Factor, Account Credit Factor, and Coastal Banding Charge. Round to the nearest dollar at each calculation. 2. The Basic Premium for HO-4 and HO-6 is calculated as follows: Determine the base rate from the rate pages. Multiply the base rate by the Coverage C Key Factor. Multiply the result by the Tier Factor, Experience Rating Modifier, Protection Class Factor, Masonry Credit Factor, Credit Score Factor, Account Credit Factor and Coastal Banding Charge. For HO-6 only, multiply the result by the Owner Occupied Condominium Charge. Round to the nearest dollar at each calculation. 3. Determine the premium for the optional liability limits from the rate pages. Multiply the result by the Tier Factor and the Experience Rating Modifier. Round to the nearest dollar at each calculation. 4. Determine the premium for the optional coverages from the rate pages. If the optional coverage premium is calculated from the Basic Premium, apply the rating factor to the Basic Premium calculated in Step 1 or Step 2. If the premium is a flat charge, no adjustment is needed. All other optional coverage, determine the premiums from the rate pages. Multiply the premium by the Tier Factor and the Experience Rating Modifier. Round to the nearest dollar at each calculation. 5. Determine the deductible credits according to the premium credit rules in the rate page. Round to the nearest dollar. 6. If applicable, determine the Protective Devices credit, the Windstorm Mitigation Credit and Group Discount from the Basic Premium Round to the nearest dollar. 7. If applicable, apply the Secondary Home Credit to the sum of the premiums and credits determined through Step For HO-1, HO2, and HO3, apply the Age of Home Credit if applicable to the sum of the premiums and credits calculated through Step 7. Round to the nearest dollar. 9. For HO6, apply the Condominium Association Credit if applicable to the sum of the premiums and credit calculated through Step 7. Round to the nearest dollar. 10. Determine the premium for Scheduled Personal Property using the rate pages. Multiply the result by the Tier Factor and Experience Rating Modifier. Round to the nearest dollar at each calculation. 11. Total policy premium is the sum of the premiums and credits calculated through Step 10, subject to a minimum premium per policy of $125. Transition Modification Acquisition This rule only applies when writing select business from a non-new London County Mutual Insurance Company into New London County Mutual Insurance Company s rating program as part of a merger, acquisition, renewal rights or agent book transfer transactions. The initial premium will be determined by first comparing the policyholder s former company s expiring premium with the premium determined by this manual. We will honor the expiring premium from the prior carrier for all policies within 20% of the calculated premium determined by this manual. All policies with an expiring premium that is not within 20% of the calculated premium determined by this manual will have a maximum adjustment factor of 20% applied to their calculated premium. The adjustment factor will be moved 0.07 points closer to unity (1.00) on each annual renewal until all policy premiums are determined by this manual without adjustment. All premiums determined by this Transition Modification Acquisition rule are subject to the minimum premium per policy of $125. Connecticut Homeowners -12- October 1, 2015

16 CONNECTICUT PREMIUM GROUPS COUNTY A,B,C TOWNS D & E TOWNS F TOWN FAIRFIELD HARTFORD LITCHFIELD MIDDLESEX NEW HAVEN NEW LONDON TOLLAND WINDHAM CITIES BRIDGEPORT 44 DANBURY 45 HARTFORD 46 NEW HAVEN 47 NORWALK 48 STAMFORD 49 WATERBURY 50 Fire Protection Classes ISO s Fire Protection Classes along with territory codes are the basis for determining which premium groups to use for rating. Many towns have what are referred to as split classes. For example, the city of Norwich, CT is 4/9. ISO suggests that risks in the city that are within 1,000 feet of a hydrant take the 4(B) classification and risks over 1,000 feet take the 9(E) classification. NLC feels that the quality of firefighting and the capacity for transporting water in most fire departments is adequate to protect small structures including most residential dwellings whether or not they are within 1,000 feet of a hydrant. Therefore, as long as risks are located within 5 miles of a fire department, NLC will use the lower protection class for rating. This will apply to all towns that have the split classes. Risks that are located over 5 miles from a fire department should use the 10(F) classification. Connecticut Homeowners -13- August 1, 2013

17 CREDIT SCORE FACTORS The following factors apply to the base premium of all new business with the following Credit Scores: Credit Score Factor 840 and Over < No Hit/Thin Score 1.00 Never scored 1.07 On an individual risk basis we will make reevaluations to insured s credit score on renewal as requested. Insureds who qualify for an Extraordinary Life Circumstances exception will be rated with a factor from the above chart that corresponds to the average insurance score as determined by NLC. Connecticut Homeowners -14- September 1, 2015

18 BASE RATES AND FACTORS Premium Group HO-3 Base Rates at $500 Deductible - Frame Construction Base Rate Premium Group Base Rate 20 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $445 REFER TO THE COASTAL SURCHARGE TABLE IF APPROPRIATE FORM FACTORS MASONRY CREDIT FACTORS FORM FACTOR Protection Class Factor HO A 0.85 HO B 0.85 HO C 0.85 D 0.83 E 0.83 F 0.83 TIER FACTORS PROTECTION CLASS FACTORS TIER FACTOR Construction Type TIER Protection Class Frame Masonry TIER A TIER B TIER C TIER D TIER E TIER F Connecticut Homeowners -15- September 1, 2015

19 COVERAGE A FACTORS HO-1, 2 &3 Coverage A Factor Coverage A Factor Coverage A Factor $50, $90, $130, $51, $91, $131, $52, $92, $132, $53, $93, $133, $54, $94, $134, $55, $95, $135, $56, $96, $136, $57, $97, $137, $58, $98, $138, $59, $99, $139, $60, $100, $140, $61, $101, $141, $62, $102, $142, $63, $103, $143, $64, $104, $144, $65, $105, $145, $66, $106, $146, $67, $107, $147, $68, $108, $148, $69, $109, $149, $70, $110, $150, $71, $111, $151, $72, $112, $152, $73, $113, $153, $74, $114, $154, $75, $115, $155, $76, $116, $156, $77, $117, $157, $78, $118, $158, $79, $119, $159, $80, $120, $160, $81, $121, $161, $82, $122, $162, $83, $123, $163, $84, $124, $164, $85, $125, $165, $86, $126, $166, $87, $127, $167, $88, $128, $168, $89, $129, $169, Connecticut Homeowners -16- September 1, 2015

20 COVERAGE A FACTORS HO-1, 2 &3 Coverage A Factor Coverage A Factor Coverage A Factor $170, $210, $250, $171, $211, $251, $172, $212, $252, $173, $213, $253, $174, $214, $254, $175, $215, $255, $176, $216, $256, $177, $217, $257, $178, $218, $258, $179, $219, $259, $180, $220, $260, $181, $221, $261, $182, $222, $262, $183, $223, $263, $184, $224, $264, $185, $225, $265, $186, $226, $266, $187, $227, $267, $188, $228, $268, $189, $229, $269, $190, $230, $270, $191, $231, $271, $192, $232, $272, $193, $233, $273, $194, $234, $274, $195, $235, $275, $196, $236, $276, $197, $237, $277, $198, $238, $278, $199, $239, $279, $200, $240, $280, $201, $241, $281, $202, $242, $282, $203, $243, $283, $204, $244, $284, $205, $245, $285, $206, $246, $286, $207, $247, $287, $208, $248, $288, $209, $249, $289, Connecticut Homeowners -17- September 1, 2015

21 COVERAGE A FACTORS HO-1, 2 &3 Coverage A Factor Coverage A Factor Coverage A Factor $290, $330, $370, $291, $331, $371, $292, $332, $372, $293, $333, $373, $294, $334, $374, $295, $335, $375, $296, $336, $376, $297, $337, $377, $298, $338, $378, $299, $339, $379, $300, $340, $380, $301, $341, $381, $302, $342, $382, $303, $343, $383, $304, $344, $384, $305, $345, $385, $306, $346, $386, $307, $347, $387, $308, $348, $388, $309, $349, $389, $310, $350, $390, $311, $351, $391, $312, $352, $392, $313, $353, $393, $314, $354, $394, $315, $355, $395, $316, $356, $396, $317, $357, $397, $318, $358, $398, $319, $359, $399, $320, $360, $400, $321, $361, $401, $322, $362, $402, $323, $363, $403, $324, $364, $404, $325, $365, $405, $326, $366, $406, $327, $367, $407, $328, $368, $408, $329, $369, $409, Connecticut Homeowners -18- September 1, 2015

22 COVERAGE A FACTORS HO-1, 2 &3 Coverage A Factor Coverage A Factor Coverage A Factor $410, $450, $490, $411, $451, $491, $412, $452, $492, $413, $453, $493, $414, $454, $494, $415, $455, $495, $416, $456, $496, $417, $457, $497, $418, $458, $498, $419, $459, $499, $420, $460, $500, $421, $461, $501, $422, $462, $502, $423, $463, $503, $424, $464, $504, $425, $465, $505, $426, $466, $506, $427, $467, $507, $428, $468, $508, $429, $469, $509, $430, $470, $510, $431, $471, $511, $432, $472, $512, $433, $473, $513, $434, $474, $514, $435, $475, $515, $436, $476, $516, $437, $477, $517, $438, $478, $518, $439, $479, $519, $440, $480, $520, $441, $481, $521, $442, $482, $522, $443, $483, $523, $444, $484, $524, $445, $485, $525, $446, $486, $526, $447, $487, $527, $448, $488, $528, $449, $489, $529, Connecticut Homeowners -19- September 1, 2015

23 COVERAGE A FACTORS HO-1, 2 &3 Coverage A Factor Coverage A Factor Coverage A Factor $530, $570, $610, $531, $571, $611, $532, $572, $612, $533, $573, $613, $534, $574, $614, $535, $575, $615, $536, $576, $616, $537, $577, $617, $538, $578, $618, $539, $579, $619, $540, $580, $620, $541, $581, $621, $542, $582, $622, $543, $583, $623, $544, $584, $624, $545, $585, $625, $546, $586, $626, $547, $587, $627, $548, $588, $628, $549, $589, $629, $550, $590, $630, $551, $591, $631, $552, $592, $632, $553, $593, $633, $554, $594, $634, $555, $595, $635, $556, $596, $636, $557, $597, $637, $558, $598, $638, $559, $599, $639, $560, $600, $640, $561, $601, $641, $562, $602, $642, $563, $603, $643, $564, $604, $644, $565, $605, $645, $566, $606, $646, $567, $607, $647, $568, $608, $648, $569, $609, $649, Connecticut Homeowners -20- September 1, 2015

24 COVERAGE A FACTORS HO-1, 2 &3 Coverage A Factor Coverage A Factor Coverage A Factor $650, $690, $730, $651, $691, $731, $652, $692, $732, $653, $693, $733, $654, $694, $734, $655, $695, $735, $656, $696, $736, $657, $697, $737, $658, $698, $738, $659, $699, $739, $660, $700, $740, $661, $701, $741, $662, $702, $742, $663, $703, $743, $664, $704, $744, $665, $705, $745, $666, $706, $746, $667, $707, $747, $668, $708, $748, $669, $709, $749, $670, $710, $750, $671, $711, $751, $672, $712, $752, $673, $713, $753, $674, $714, $754, $675, $715, $755, $676, $716, $756, $677, $717, $757, $678, $718, $758, $679, $719, $759, $680, $720, $760, $681, $721, $761, $682, $722, $762, $683, $723, $763, $684, $724, $764, $685, $725, $765, $686, $726, $766, $687, $727, $767, $688, $728, $768, $689, $729, $769, Connecticut Homeowners -21- September 1, 2015