HOMEOWNER UNDERWRITING GUIDELINES GEORGIA

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Miranda Hall
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1 Note: Per Georgia Statute, Southern Trust reserves the right to send notice of cancellation for any reason during the first 60 days of the policy period. Eligibility Requirements MONOLINE HOMEOWNER REQUIREMENTS Minimum Coverage Limit Coverage A $200,000 Maximum Age 30 Years Minimum Deductible Amount $2,500 PACKAGE HOMEOWNER REQUIREMENTS Minimum Coverage Limit Coverage A $150,000 Maximum Age Without Renovations 30 years Maximum Age With Renovations Homes which are completely refurbished (including wiring, plumbing, heating, roofing, inner walls gutted, etc.) may be eligible subject to prior underwriting approval. MONOLINE & PACKAGE HOMEOWNER REQUIREMENTS Policy Forms Available HO 3 Insurance to Value 100% of replacement cost (Homes with more than 25% disparity between replacement cost and market value are not eligible). Maximum Binding Authority Coverage A $400,000 Liability $500,000 Occupancy Owner occupied 1 or 2 family dwelling, which is used for residential purposes. Loss History No more than 1 partial loss within the prior 3 years unless defined as ineligible and no more than 2 losses in five years for insured and property. Property Updates Wiring, plumbing, heating system, and roof must be up to date and in compliance with current building codes. Maximum roof age is 20 years. If over 15 years, ACV roof endorsement required and $2500 Wind/Hail deductible. A roof with significant wear as evidenced by aged or multiple lifted or missing shingles or a roof that presents an increased risk of loss by collapse due to sagging is not eligible. Property Conditions Foundation must be enclosed. The Dwelling must have a Handrail for all steps (if 3 or more steps). Evidence of ongoing maintenance to property. Fences, gates, doors, and windows must be in good working condition. Yard must be free of debris and potential liability hazards, including, but not limited to: Refrigerators, inoperative automobiles, flammable materials, piles of refuse, tall grass, tree branches over structures, skateboard and bicycle ramps, and unfenced hot tubs or swimming pools. Wood/Coal Stove (a fireplace insert Used as supplemental heating system; is not considered a wood/coal stove) Professionally installed to manufacturer s specifications with appropriate clearances; Properly maintained, including but not limited to regular chimney cleaning; U.L. approved; and Photo and Supplemental Application submitted. Dwelling Under Construction Coverage A amount must be 100% of completed value. Completion is expected within 6 months after the policy effective date. Intended owner occupant must be listed as named insured. HG 1 (GA)

2 Eligibility Requirements (continued) Liability Exposures Trampoline The yard must be completely fenced and the trampoline must be enclosed with an attached safety net, or use the ST endorsement to exclude the exposure from coverage. A photograph of the trampoline must be submitted to Secondary/Seasonal Dwelling Insurance History Prior Coverage Pool underwriting. The yard must be completely fenced. If the pool is equipped with a diving board, the maximum acceptable board height from the water is 3.28 feet (1 meter); the minimum acceptable depth of pool below the board is 8.5 feet (2.59 meters) or the pool exposure may be excluded from coverage using endorsement ST All eligibility requirements for primary residence apply. If Southern Trust does not insure primary residence, refer to underwriting prior to binding coverage. Homes with prior cancellations, declinations and non renewals must be referred to underwriting prior to binding coverage. Prior continuous coverage with no lapse is required Animals Dwelling Types Farms Heating and Air Conditioning Insurance History Loss Activity Mobile Homes, Trailer Homes, House Trailers, Modular Homes and Log Homes Property Conditions Public Figures Roofing/Siding Seasonal/Secondary Dwelling Scheduled Property Ineligible Risks Property with livestock (e.g., horses, cattle, hogs, etc.), nondomesticated animal(s) kept on premises. Domesticated animal(s) kept on premises that has bitten or has exhibited aggressive behavior. The following dog breeds are not eligible for coverage; Akita, Chow, Doberman, German Shepherd, Great Dane, Huskies, Malamute, Pit Bull, Presa Canario, Rottweiler, St. Bernard and all Wolf hybrids. Farm properties, vacant dwellings, mobile homes, bed & breakfasts, group homes, any isolated or inaccessible residence. Not eligible. Homes without central heat and air. Homes with prior cancellations, declinations and non renewals. Prior water damage loss for insured location during the 5 prior years. Insured with prior fire damage loss. Titled or deeded as a mobile home, trailer home, house trailer, whether or not set on blocks, permanent foundation, or otherwise made stationary. Dwellings that are poorly maintained or show evidence of poor housekeeping practices. Do not bind. Please contact Underwriting to obtain prior approval. Homes with asbestos siding or roofing. Homes with aluminum siding. Homes with roof over 20 years old. Located in a state that Southern Trust is not currently licensed in and actively writing business. Non owner occupied. Multiple family dwelling Exceeding $15,000 of total value. HG 2 (GA)

3 Synthetic Stucco Uninsured Recreational Vehicle Vacant Dwelling Ineligible Risks (continued) Buildings constructed with synthetic stucco products, such as EIFS or similar products; only eligible if year of construction is 1997 or newer. Not eligible if any prior water losses. Jet Ski, 4 Wheeler, Go Cart, etc. Dwelling is vacant, unoccupied or for sale. Binding Requirements Binding Requirements Completed application. Appraisals and Alarm Certificates. Replacement Cost Estimator is required to determine Coverage A Value. Inspections Inspection Practices Southern Trust inspects 100% of new business risks. Therefore, photos are not required to be sent to home office. A producer or agent must conduct a complete visual inspection of the dwelling. Application Coastal Property General Procedures Submit through Southern Trust website or mail. Refer to Underwriting prior to binding homes located in the following counties: Bryan, Camden, Chatham, Effingham, Glynn, Liberty and McIntosh. Binding Authority Severe Weather Alerts Severe Weather Procedures We will not honor additional or extended coverage on property risks bound as new business or endorsed on existing policies in any area where a hailstorm, hurricane, tropical storm, tornado, flood or wildfire watch, warning or occurrence is in effect at the time of binding. Information on severe weather warnings or watches can be obtained at The National Weather Service s website at DO NOT WAIT TO BE CONTACTED BY THE HOME OFFICE. WHEN THE NATIONAL WEATHER SERVICE ANNOUNCES A HAILSTORM, HURRICANE, TROPICAL STORM, TORNADO, FLOOD OR WILDFIRE WATCH OR WARNING, STOP WRITING ANY COVERAGE IMMEDIATELY. HG 3 (GA)

4 INSURANCE SCORE PROCEDURES 1. New Business: An insurance score must be ordered on each prospective insured and spouse (if applicable) with every new business application. The policy will be rated using the highest score of the two if more than one score is ordered. If the agent uses stins.com to calculate a quote, the system will automatically order the score. If an agent uses a third party vendor to calculate the quote; a score must be ordered from Lexis Nexis. 2. Renewal Business: At the insured s request, Southern Trust will re order their insurance score a maximum of once every 12 months. If this request is made by the insured, the agent is required to orally notify the consumer that the re rating of the policy may result in a higher rate, a lower rate or no change in the rate. Once the new score is ordered, the policy will be rated at the next renewal using the new score. Southern Trust will order a fresh insurance score on every insured and spouse at least once every 36 months. The policy will be re rated at the next renewal. 3. The scores are Basic I, Basic II, Standard, Acceptable, Good, Very Good, Excellent I, Excellent II, Superior I, Superior II and Outstanding. If there is No Score or Neutral, it will also be shown on the Declarations. The insurance score used, including No Score will apply for a minimum of 12 months except in cases where corrections have been made for errors in the insured s credit history file with the national credit bureaus. A higher score obtained in this process will be applied back to the beginning of the current policy term. 4. A No Score will continue to apply except in cases where an insurance score is obtained from a national credit bureau. If an insurance score is returned, it will apply. 5. A Neutral score indicates the insured s credit report has been influenced negatively by an extenuating life circumstance such as divorce, death of a spouse, temporary loss of employment or disputes involving an insured s credit file information. In cases of divorce or death of a spouse, the named insured may either keep the existing score or have a Neutral score applied, whichever is higher. 6. Insurance scores obtained more than 180 days prior to the inception date of the policy will not be used. 7. Dispute Resolution Process: Every consumer has the right to dispute the accuracy or completeness of any information provided on the consumer report we used directly with the vendor. The vendor did not make any decision regarding the rates charged by Southern Trust and therefore cannot answer any questions regarding the calculation of the rate. If a consumer has been affected by information contained in a report provided by Lexis Nexis, he or she is entitled to a copy of that report at no charge. Regardless of whether the consumer simply wants a copy of their report, or wants to dispute information contained in a report, the first step is for the consumer to have a copy of their report sent to them. There are three ways a consumer can contact Consumer Center to request copies of their reports phone (toll free), mail, or web site. Affected consumers may call , toll free, seven days a week, 24 hours a day. The purpose of calling this number is for affected consumers to provide information to enable Lexis Nexis to send them copies of their report. At this number the consumer will not be given an option to speak with a Consumer Consultant, but will be asked to leave various personal data on a recorded message. The key to this method of requesting a report is the content and clarity of the message left by the consumer. If the message does not contain the information requested, or the message cannot be understood, Consumer Center will likely be unable to send the applicable report. Affected consumers can mail a request for reports to: Lexis Nexis Consumer Service Center, P.O. Box , Atlanta, GA, As with phone messages, content and clarity of the correspondence determine our ability to send copies of reports to a consumer. Affected consumers can access to request copies of their reports. Callers are directed to this site and encouraged to use it with the instructions provided at the toll free telephone number listed above. This is the most efficient method of requesting reports, as various mandatory fields and prompts are present, and consumers can review information for accuracy. HG 4 (GA)

5 Regardless of the method by which Consumer Center is contacted, if for whatever reason (insufficient data, unable to interpret or understand a message or correspondence, etc.) Lexis Nexis is unable to locate a history of a request from Southern Trust for reports for a particular consumer, that consumer is sent a Lexis Nexis Information Letter. This form letter advises the consumer that Lexis Nexis has no record of a request being made for their report, and requests additional information to help identify any report ordered about them. The two most valuable pieces of information to enable Consumer Center to locate reports previously ordered about consumers, aside from name and address, are the type of report ordered and the reference numbers of the report. However, the Consultants will be able to locate the reports without the reference number, provided they are given other data to verify the consumer s information (name, address, date of birth, driver s license number, Social Security Number). Once an individual is authenticated as the affected consumer, the Consumer Center will determine what information Lexis Nexis has in its files and send to the consumer all applicable reports: C.L.U.E. and credit reports. C.L.U.E.: This report will be mailed directly from Lexis Nexis to the consumer at the residential address used by the ordering insurance company. It will arrive from 10 to 15 business days from the day the consumer s request is received. If the consumer uses a mailing address that is different than the address used to order the report that address will need to be provided to Lexis Nexis for the report to be mailed there. Requests received by Consumer Center for credit reports are forwarded to the bureau from which the report was ordered, if the bureau was Experian. The reports are mailed directly from that bureau, and the Consumer Center does not receive a copy. When a C.L.U.E. report is mailed to a consumer, additional information is included with the report. Always included is a cover letter with instructions, including a toll free telephone number, outlining how to dispute the accuracy of information contained in the report. Also sent with the report is a statement of rights as required by the federal Fair Credit Reporting Act, and, if applicable, a summary of rights as required by the consumer s state of residence. Included as well is a brochure which explains how to read and interpret the report. We will continue to use the neutral credit score to rate your policy until you complete the dispute resolution process with Experian. Once you complete the dispute process, we will use the credit score developed from your correct credit report. If, after completing the dispute resolution process, the insured still questions the validity of an item on their credit report, Southern Trust will review the materials provided by the applicant or insured and assign a neutral score if proof acceptable to Southern Trust of the following is shown: his or her credit information has been adversely impacted by life changing or unusual events such as identity fraud; deaths in the family where the surviving spouse may have a thin file due to credit being in the other spouses name; divorce situations in which the spouse can demonstrate derogatory items on the credit report are beyond his or her control; or serious injury or illness. If there are any questions regarding how this dispute resolution process works, please contact your Southern Trust Personal Lines Underwriter and they will assist you in completing the dispute process HG 5 (GA)

3. Program Underwriting Requirements

3. Program Underwriting Requirements NATIONAL INSURANCE COMPANY 1. General Requirements: A. All business placed by the agent with the Company must originate from persons licensed for the agency by the Company. Brokered business is not acceptable