TO ALL MASSACHUSETTS AGENTS

Transcription

1 September 28, 2015 TO ALL MASSACHUSETTS AGENTS NEW OFFERINGS IN OUR HOMEOWNER PROGRAMS We are excited to bring some new offerings to our Homeowner programs making them 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-77 / END77) 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 Functional Replacement Cost Loss Settlement (HO 05 30) (FRC) This form provides for loss settlement using less costly common current day construction materials, such as sheetrock versus plaster. This form modifies the loss settlement provisions of the policy. It provides coverage for the cost to repair or replace covered damages using modern day materials and construction methods. These materials and methods are the functional equivalent to the obsolete, antique or custom construction materials and methods originally used. This endorsement affects the settlement of property claims, therefore please discuss this thoroughly with your clients to make sure it satisfies their coverage needs and expectations. If this form is selected on homes built prior to 1940, you can calculate the replacement cost of the risk using the MSB RCT estimator available on our website and by selecting the Standard construction option instead of the Pre-1940 option. This may lower the calculated replacement cost and therefore the Coverage A value required. Underwriting conditions include Available on HO-3 form new and renewal. Applies to buildings covered under Coverage A and B Not available with any Guaranteed Replacement Cost or Extended Replacement Cost endorsements (NLC-6MA,NLC-66MA,NLC-68MA,NLC-20MA, END66MA, END68MA, END20MA) While we strive to write coverage at 100% of the Replacement Cost, coverage must be written to at least 80% of the Standard calculated replacement cost Requires the named insured s signature on NLC s acknowledgement form available on our website. (FRC- Loss Settlement Acknowledgement) We are introducing 3 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.

2 Other Structure Exclusion Endorsement (NLC-80 / END80) This form can be used to exclude a specific Other Structure from Section I property coverages. Canine Liability Exclusion Endorsement (NLC-81 / END81) 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. Actual Cash Value Loss Settlement for Roofs (NLC-82 / END82) This form provides for loss settlement for roof claims on an ACV basis versus replacement cost 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

3 NEW LONDON COUNTY MUTUAL INSURANCE COMPANY MASSACHUSETTS HOMEOWNERS MANUAL CHECKING SLIP THESE CHANGES ARE APPLICABLE TO ALL POLICIES WRITTEN ON OR AFTER OCTOBER 1, 2015 Revised Pages Page 11 Page 28 Page 42 Pages SEE NEXT PAGE FOR COMPANY PAGES CURRENTLY IN EFFECT Massachusetts Homeowners -1- Checking Slip

4 MASSACHUSETTS HOMEOWNERS MANUAL COMPANY PAGES CURRENTLY IN EFFECT Page 1 April 1, 2014 Page 27 July 1, 2014 Page 2 April 1, 2014 Page 28 Oct 1, 2015 Page 3 April 1, 2014 Page 29 July 1, 2014 Page 4 April 1, 2014 Page 30 Sept 1, 2015 Page 5 April 1, 2014 Page 31 Sept 1, 2015 Page 6 Sept 1, 2015 Page 32 July 1, 2014 Page 7 Sept 1, 2015 Page 33 July 1, 2014 Page 8 Sept 1, 2015 Page 34 July 1, 2014 Page 9 Sept 1, 2015 Page 35 July 1, 2014 Page 10 July 1, 2014 Page 36 Dec 1, 1999 Page 11 Oct 1, 2015 Page 37 July 1, 2014 Page 12 July 1, 2014 Page 38 July 1, 2014 Page 13 Sept 1, 2015 Page 39 July 1, 2014 Page 14 Sept 1, 2015 Page 40 July 1, 2014 Page 15 Sept 1, 2015 Page 41 July 1, 2014 Page 16 Sept 1, 2015 Page 42 Oct 1, 2015 Page 17 Sept 1, 2015 Page 43 Sept 1, 2015 Page 18 Sept 1, 2015 Page 44 July 1, 2014 Page 19 Sept 1, 2015 Page 45 Oct 1, 2015 Page 20 Sept 1, 2015 Page 46 Oct 1, 2015 Page 21 Sept 1, 2015 Page 47 Oct 1, 2015 Page 22 Sept 1, 2015 Page 48 Oct 1, 2015 Page 23 Dec 1, 1999 Page 49 Oct 1, 2015 Page 24 July 1, 2014 Direct Bill 1 May 1, 2009 Page 25 July 1, 2014 Direct Bill 2 April 1, 2007 Page 26 Sept 1, 2015 Massachusetts Homeowners -2- Checking Slip

5 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 amount of 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. NEW BUSINESS AND RENEWAL BUSINESS HOMEOWNER PROGRAM GUIDELINES Risk Guidelines / Notes: Characteristic Number of Families One and two family owner occupied dwellings are eligible. Multi-family dwellings must be built as such. No converted dwellings or garages are acceptable. (new business only) 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. General Condition Characteristics of the Property 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. 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. No more than two mortgagees are allowed. 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 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. MASSACHUSETTS HOMEOWNERS -1- April 1, 2014

6 Risk Characteristic Major System Component Update Requirements Guidelines / Notes: Dwellings built on stilts, pilings, sand dunes or on unsatisfactory landfill are ineligible. 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. All dwellings on the same deeded lot must be insured with us and meet eligibility 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. 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 or annual cleaning 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 Electric panels and/or circuit breakers are not eligible. ROOF MASSACHUSETTS HOMEOWNERS -2- April 1, 2014

7 Risk Characteristic Other Hazards Loss History Payment History Prior Carrier Credit History Guidelines / Notes: 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. 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 9-10 at Coverage A value of $500,000 and above. 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. 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 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) No risks with more than one loss. (new business only) 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, with a non-standard carrier, or has been cancelled or non-renewed by their previous carriers is unacceptable. Must have previous insurance with no lapse in coverage. Dwellings purchased under recent foreclosure or previously bank owned are not eligible. (new business only) Insureds who have filed bankruptcy or had a lien, judgment or foreclosure in the last 5 years are not eligible. Risks must have a financial insurance stability score of average or better. MASSACHUSETTS HOMEOWNERS -3- April 1, 2014

8 Risk Characteristic Coastal Underwriting Criteria Guidelines / Notes: See separate Coastal Guideline page for eligibility. No history of criminal activities or felonious crimes or related criminal actions associated to Criminal Activities 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. Other Prohibited Animals Aggressive or exotic or unusual animals such as ferrets, raccoons, skunks, snakes, pot belly pigs or other non-domestic animals. Wood Stoves/ Solid Fuel Burning Devices Risks with woodstoves located in PC 9 or 10 are not eligible unless the dwelling has a central fire alarm.(new business only) Wood stoves must be professionally installed and inspected by the Fire Marshall or similar 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 ineligible. 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). MASSACHUSETTS HOMEOWNERS -4- April 1, 2014

9 Risk Characteristic Guidelines / Notes: Watercraft Houseboats and pontoon boats are not eligible. Boats over 15 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. 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 Massachusetts Law or Insurance Department regulations, that provision will be void but the remainder of the guidelines shall remain in effect. MASSACHUSETTS HOMEOWNERS -5- April 1, 2014

10 Tier 0 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. No dogs or farm animals. 5. Coverage A must be 100% of the replacement cost. 6. 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. 8. Renewals must not have more than one claim in the last 5 years. 9. Risks must be in above average condition. 10. No more than one non-payment in the prior term and no more than 3 non-payments in the past three terms. 11. Refer to Coastal Guidelines for tier placement of risks within specified distance to the coast. Tier 1 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. No farm animals. 5. Coverage A must be 100% of the replacement cost. 6. 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. 8. Renewals must not have more than one claim in the last 5 years. 9. Risks must be in above average condition. 10. No more than 2 non-payments in the prior term and no more than 3 non-payments in the past three terms. 11. Refer to Coastal Guidelines for tier placement of risks within specified distance to the coast. Tier 2 1. Single family primary residences only. 2. Forms HO 00 03, HO and 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 must have no claims in the last 3 years. One property claim < $2,500 is acceptable for this tier. 7. Renewals must not have more than one claim in the last three 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 three terms. 10. Refer to Coastal Guidelines for tier placement of risks within specified distance to the coast. MASSACHUSETTS HOMEOWNERS -6- September, 1, 2015

11 Tier 3 1. Single family primary residences only. 2. Forms HO 00 03, HO and 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 under $5,000 in the last 3 years is 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 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 1. One and two family primary residences and single family secondary/seasonal homes. 2. Forms HO 00 02, 00 03, 00 04, & 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 1. One and two family primary residences and single family secondary/seasonal homes. 2. Forms HO 00 02, 00 03, 00 04, & 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-20MA is required. 4. New business submissions must have no more than one 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. Risks 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 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 and two family primary residences and single family secondary/seasonal homes. 3. Forms HO 00 02, 00 03, 00 04, & 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-20MA is required. 5. Renewals must not have more than 3 claims in the last 5 years. 6. No more than 3 non-payments in the prior term and no more than 7 non-payments in the past three terms. 7. Refer to Coastal Guidelines for tier placement of risks within specified distance to the coast. MASSACHUSETTS HOMEOWNERS -7- September 1, 2015

12 NEW BUSINESS COASTAL GUIDELINES New business policies located as follows are ineligible for coverage: New policies that are located in Barnstable, Dukes and Nantucket counties. New policies that are located within three miles of the coast in Plymouth and Bristol counties. New policies that are located elsewhere in Massachusetts that are within 2600 feet of the coast. RENEWAL BUSINESS Risks located within 2600 feet of the coast for the entire state will be non- renewed. Barnstable, Dukes & Nantucket Counties Risks where Coverage A is greater than $400,000 will be non-renewed if located within 1 mile of the coast. Risks over 2600 feet from the coast will renew with a 3% wind or hail deductible. Risks over 2600 feet and up to 1 mile from the coast will be priced using our Tier 4 rates. Plymouth & Bristol Counties Risks where Coverage A is greater than $400,000 will be non-renewed if located within 1 mile of the coast. Risks over 2600 feet and up to 1 mile will renew with a 1 % wind or hail deductible and priced using our Tier 4 rates. Remainder of State Risks over 2600 feet from the coast are not required to have a wind or hail deductible and will be written in the appropriate pricing level for the risk. Banding - The following coastal banding charges apply to Homeowner policies: Distance From Coast Bristol County Plymouth County HO-1, 2 & 3 HO 4 & 6 Remainder of State All Counties < 1,000 feet ,001 2,600 feet ,601 feet 1 mile >1 mile 2 miles >2 miles 3 miles >3 miles 4 miles >4 miles 5 miles >5 miles 6 miles >6 miles 7 miles >7 miles 8 miles >8 miles 9 miles > 9 miles 10 miles >10 miles MASSACHUSETTS HOMEOWNER -8- September 1, 2015

13 HOMEOWNERS CAPACITY Principal Residence that is > one mile from the coast Principal Residence that is > one mile from the coast Maximum $700,000 New Business $900,000 Renewal Business Principal Residence that is < one mile from the coast $400,000 Dwelling Under Construction $400,000 Secondary/Seasonal Residence $250,000 If over 3 miles from a fire department or over 200 feet from the road and not visible from adjacent properties $250,000 Loss Assessment $50,000 Personal Liability $500,000 Medical Payments $ 5,000 New Business Only Minimum HO-1, 2 & 3 $100,000 Seasonal Dwelling $ 50,000 INLAND MARINE CAPACITY Jewelry - Women's Single Item Jewelry - Men's Single Item All Other Single Items Maximum $ 30,000 or more refer to Company $ 20,000 or more refer to Company $ 30,000 or more refer to Company 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. MASSACHUSETTS HOMEOWNER -9- 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 (Renewals only) 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 $6000 $6000 Coverage D 10% of A 20% of A 20% of A 20% of C 40% of C MASSACHUSETTS HOMEOWNER -10- July 1, 2014

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-77 Factor if applicable, Protection Class Factor, Masonry Credit Factor, Account Credit Factor, and the Coastal Banding Charge Factor. 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 result by the Tier Factor, Experience Rating Modifier, Protection Class Factor, Masonry Credit Factor, Account Credit Factor and the Coastal Banding Charge Factor. For HO-6 only, multiply the result by the Owner Occupied Condominium Charge Factor. 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 pages. Round to the nearest dollar. 6. If applicable, determine the Protective Devices Credit, the Windstorm or Hail Deductible Credit and Reduction of Other Structures Credit 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, HO-2 and HO-3, 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 HO-6, 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 0.05 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. MASSACHUSETTS HOMEOWNER -11- October 1, 2015

16 CITIES OF: MASSACHUSETTS PREMIUM GROUPS PREMIUM GROUP Territory Code BOSTON DIST. A 251 DIST. B DIST. C 253 OTHER 254 BROCKTON BROOKLINE CAMBRIDGE CHICOPEE FALL RIVER HOLYOKE LAWRENCE LOWELL LYNN NEW BEDFORD NEWTON SOMERVILLE SPRINGFIELD WORCESTER COUNTIES OF: A,B or C Towns Prot 1-6 PREMIUM GROUPS BY PROTECTION CLASS D Towns Prot 7-8 E Towns Prot 9 F Towns Prot 10 Territory Code BARNSTABLE BERKSHIRE BRISTOL EXCEPT FALL RIVER AND NEW BEDFORD DUKES ESSEX EXCEPT LAWRENCE AND LYNN FRANKLIN HAMPDEN EXCEPT CHICOPEE, HOLYOKE & SPRINGFIELD HAMPSHIRE MIDDLESEX EXCEPT CAMBRIDGE, LOWELL, NEWTON & SOMERVILLE NANTUCKET NORFOLK EXCEPT BROOKLINE PLYMOUTH EXCEPT BROCKTON SUFFOLK EXCEPT BOSTON WORCESTER EXCEPT CITY OF WORCESTER 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 Rockport, MA 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. MASSACHUSETTS HOMEOWNER -12- July 1, 2014

17 HOMEOWNERS BASE RATES AND FACTORS HO-3 Base Rates at $500 Deductible Frame Construction Premium Group Base Rate Premium Group Base Rate 22 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $506 MASONRY CREDIT FACTOR TIER FACTORS Protection Class Factor TIER A 0.85 TIER B 0.85 TIER C 0.85 TIER D 0.83 TIER E 0.83 TIER F 0.83 TIER PROTECTION CLASS FACTORS Construction Type FORM FACTORS PC Frame Masonry HO A HO B HO C D E F MASSACHUSETTS HOMEOWNER -13- September 1, 2015

18 COVERAGE A FACTORS HO-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, MASSACHUSETTS HOMEOWNER -14- September 1, 2015

19 COVERAGE A FACTORS HO-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, MASSACHUSETTS HOMEOWNER -15- September 1, 2015

20 COVERAGE A FACTORS HO-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, MASSACHUSETTS HOMEOWNER -16- September 1, 2015

21 COVERAGE A FACTORS HO-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, MASSACHUSETTS HOMEOWNER -17- September 1, 2015

22 COVERAGE A FACTORS HO-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, MASSACHUSETTS HOMEOWNER -18- September 1, 2015

23 COVERAGE A FACTORS HO-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, MASSACHUSETTS HOMEOWNER -19- September 1, 2015

24 COVERAGE A FACTORS HO-3 Coverage A Factor Coverage A Factor Coverage A Factor $770, $810, $850, $771, $811, $851, $772, $812, $852, $773, $813, $853, $774, $814, $854, $775, $815, $855, $776, $816, $856, $777, $817, $857, $778, $818, $858, $779, $819, $859, $780, $820, $860, $781, $821, $861, $782, $822, $862, $783, $823, $863, $784, $824, $864, $785, $825, $865, $786, $826, $866, $787, $827, $867, $788, $828, $868, $789, $829, $869, $790, $830, $870, $791, $831, $871, $792, $832, $872, $793, $833, $873, $794, $834, $874, $795, $835, $875, $796, $836, $876, $797, $837, $877, $798, $838, $878, $799, $839, $879, $800, $840, $880, $801, $841, $881, $802, $842, $882, $803, $843, $883, $804, $844, $884, $805, $845, $885, $806, $846, $886, $807, $847, $887, $808, $848, $888, $809, $849, $889, MASSACHUSETTS HOMEOWNER -20- September 1, 2015

25 COVERAGE A FACTORS HO-3 Coverage A Factor $890, $891, $892, $893, $894, $895, $896, $897, $898, $899, $900, Each Add l $1,000 MASSACHUSETTS HOMEOWNER -21- September 1, 2015

26 HO-4 & HO-6 PREMIUM GROUPS AND RATES PREMIUM GROUP DETERMINATION Territory PROTECTION CLASS Territory PROTECTION CLASS A, B, C D E F A, B, C D E F BASE RATES BASE EACH ADD L $1,000 PREMIUM BASE RATE OVER $20,000 GROUP RATE 63 $139 $7 79 $143 $7 65 $139 $7 81 $143 $7 67 $139 $7 83 $143 $7 69 $139 $7 85 $143 $7 71 $142 $7 87 $119 $6 73 $142 $7 89 $119 $6 75 $142 $7 91 $119 $6 77 $142 $7 93 $119 $6 PREMIUM GROUP EACH ADD L $1,000 OVER $20,000 COVERAGE C FACTORS COVERAGE C FACTOR COVERAGE C FACTOR $6, $14, $7, $15, $8, $16, $9, $17, $10, $18, $11, $19, $12, $20, $13, PLEASE SEE BASE RATE TABLE ABOVE FOR PREMIUMS FOR AMOUNTS OVER $20,000 OWNER OCCUPIED CONDOMINIUM FACTOR (HO-6 only) 0.70 PROTECTION CLASS FACTORS MASONRY CREDIT FACTORS HO HO PC Frame Masonry Frame Masonry PC HO HO A A B B C C D D E E F F MASSACHUSETTS HOMEOWNER -22- September 1, 2015