Table of Contents ValuePlus Auto Product Guide Rule # Rule # A. Alarm Credits... 5.C.11. Annual Mileage... 5.C.1. Anti-Theft Devices... 5.C.11. Antique Autos... 20.F.1. Assignment of Drivers... 5.C.7. B. Business use of Pickups and Vans... 1.A.2. C. Camper Bodies on Pickups... 13. Cancellation... 11. Certified Risks... 16. Change (Endorsements)... 10. Classic Autos... 20.F.2. Classifications... 5. Corporate Owned Vehicles--Eligibility... 2.A.2. Cross Sold Credit... 5.C.12. Custom Parts or Equipment-Increased Limits... 15.H. D. Definitions... 1. Driver Safety Record Plan... 6. E. Educator Credit... 23. Eligibility... 2. Endorsements (Changes)... 10. Excess Electronic Equipment... 15.F. Expense Fees...3.C. Experience Period... 6.B.2. Good Driver Credit... 4. Good Student or College Graduate Credit... 5.C.5. Group Credits... 22,23. I. Increased Limit Factors... 19. J. K. Joint Ownership... 2.B. L. Loan/Lease Coverage... 15.J. M. O. Mature Driver Improvement Course Credit... 5.C.6. Mexico Coverage... 15.I. Miscellaneous Coverages... 15. Miscellaneous Vehicles... 20. Motor Homes... 20.H. Multi-Car Credit... 5.C.7.d. P. Q. Physical Damage Deductible Options... 15.C. Policy Period... 9. Premium Determination... 3. Professional Group Credit... 22. R. Refund of Surcharged Premium... 6.B.3. Renewal Credit... 5.C.4. Repair or Replacement Cost Coverage... 15.K. F. Financial Responsibility Filings... 16. Frequency & Severity Band Description see Premium Determination Section Full Safety Glass Coverage... 15.C.3. G. H. Golf Carts... 20.E. Revised Sept., 2013 Unigard Insurance Company 1
Rule # S. Special Physical Damage Coverage... 15.L. State Rate & Frequency & Severity Band Description see Premium Determination Section Suspension of Coverage... 14. Symbol Rated Vehicles All Coverages... 13. T. Tapes, Records, Discs and Other Media Storage... 15.G. Towing and Labor Coverage... 15.E. Trailers... 20.A. Transportation Expense Coverage...15.D. U. Ultra Good Driver Discount... 5.C.13. Underinsured Motorist Coverage... 15.B. Uninsured Motorist Coverage... 15.A. V. Vehicle Use Definition... 5.C.3. W. Z. Waiver of Collision Deductible... 15.A.3. Whole Dollar Premium... 12. Revised Sept., 2013 Unigard Insurance Company 2
Rule 1. Definitions ValuePlus Auto Product Guide A. Private Passenger Auto 1. A private passenger auto is a four wheel motor vehicle, other than a truck type, owned or leased under contract for a continuous period of at least six months, and a. not used to carry persons or property for a fee, and b. not rented to others, and c. not customarily used for wholesale or retail delivery of goods or services including but not limited to: pizza delivery, newspaper delivery, or private mail delivery. d. is designed for use on all public highways including freeways. 2. Pickups and vans which are rated with a gross vehicle weight not exceeding 14,000 pounds: a. shall be rated in the same manner as private passenger automobiles provided they are not used in the occupation, profession, or business of the insured, or b. shall be rated as Business Use if used in the occupation, profession, or business of the insured, are operated by an insured, and are not customarily used for wholesale or retail delivery of goods or services. Ineligible business uses include but are not limited to: landscaping, carpet cleaners, insulation contractors, and newspaper delivery. Pickups and vans which are customarily used for wholesale or retail delivery are not eligible, unless used in farming or ranching. 3. A motor vehicle owned by a farm family co-partnership, or farm corporation shall be considered a private passenger auto owned by two or more relatives who are residents of the same household if: a. it is principally garaged on a farm or ranch, and b. otherwise meets the definition in 1. and 2. above. Revised Sept., 2013 Unigard Insurance Company 3
4. A motor vehicle that is a pickup or a van used in the business of the United States Government, by an employee of the Government, may be considered a private passenger auto, if: a. it is owned by an individual or by a husband and wife who are residents of the same household, b. it is not customarily used in any other occupation, profession or business of the insured, other than farming or ranching, and c. coverage is limited in accordance with the policy. B. Auto As used in this manual refers to private passenger autos or those motor vehicles considered as private passenger autos. C. Comprehensive Coverage As used in this manual refers to other than collision damage to a motor vehicle. D. Liability As used in this manual refers only to Bodily Injury and Property Damage Coverages. E. Owned As used in this manual includes an auto leased under contract for a continuous period of at least six months. If an auto lease contract requires the lessee to provide primary insurance for the lessor, attach endorsement PPA210, Additional Insured -- Lessor. F. Single Limit Liability As used in this manual refers to one limit of liability that covers both Bodily Injury and Property Damage. Revised May, 2006 Unigard Insurance Company 4
Rule 2. Personal Auto Policy -- Eligibility ValuePlus Auto Product Guide A. A Personal Auto Policy may be used to afford coverage to private passenger autos and motor vehicles considered as private passenger autos in Rule 1 if they are written on a specified auto basis, and 1. They are owned by an individual, or by a husband and wife, or by registered domestic partners under law who are residents in the same household, or 2. They are owned by a corporation, under the following conditions only: a. The corporation owns fewer than 5 motor vehicles; b. The autos are primarily operated by the corporate officer named in the declarations, or family members who are residents of the same household; and c. The autos are private passenger, station wagon, pickup or van type vehicles. Only the individual corporate officer is to be named in the declarations and not the corporation itself, the name and address of which will appear on the Additional Insured endorsement attached to the policy. A Business Use rate class shall apply: a. to at least one corporate owned auto on the policy, and b. to every corporate owned auto principally operated by a person involved in the activities of the corporation. Autos not eligible: a. Any auto operated by an employee of the corporation, other than the corporate officer named in the Declarations; b. Pickups and vans owned by a corporation and used for business purposes; and c. Vehicles which require a state or Federal Motor Carrier Permit to operate. Revised Dec, 2006 Unigard Insurance Company 5
Rule 2. Personal Auto Policy ValuePlus Auto Product Guide B. A Personal Auto Policy may be used to afford coverage to private passenger autos, pickups, and vans as defined in Rule 1, that are owned jointly by two or more: 1. Resident relatives other than husband and wife, or registered domestic partners under law; or 2. Resident individuals; or 3. Non-Resident relatives, including non-resident husband and wife, or registered domestic partners under law; If: They are written on a specified auto basis; The policy affords coverage only for such private passenger autos, pick ups or vans which are jointly owned; and The Joint Ownership Endorsement, PPA260, is attached. Refer to the endorsement for the extent of coverage. C. A Personal Auto Policy may be used to afford coverage to motor homes, snowmobiles, golf carts or other similar type vehicles (excluding all-terrain vehicles), if: 1. They are written on a specified vehicle basis, 2. They are owned by: a. An individual; b. A husband and wife; c. Registered domestic partners under law; d. Two or more relatives other than husband and wife; or e. Two or more resident relatives, and 3. Coverage is limited in accordance with endorsement PPA265CA, Miscellaneous Type Vehicle Endorsement, endorsement PPA280, Snowmobile Endorsement, or PPA290, Motor Home endorsement. D. A Personal Auto Policy may be used to afford coverage to a named individual who does not own an auto. Attach endorsement PPA275, Named Non-Owner Coverage Endorsement. Exception: Exposures in A. B. or C. above may be written under a commercial auto policy when combined with a commercial risk. Revised Dec, 2006 Unigard Insurance Company 6
Rule 3. Premium Determination ValuePlus Auto Product Guide A. Single Limit Liability, or Bodily Injury Liability and Property Damage Liability, Uninsured Motorists Bodily Injury, Uninsured Motorists Property Damage, Medical Payments, Comprehensive, and Collision premiums: Refer to Premium Calculation in the Premium Determination Section. B. Certain premiums are shown as "Flat Charges" and are not subject to modification by the Mandatory and Optional Rating Factors. The "Flat Charges" are subject to the Good Driver Credit, if applicable. C. Expense Fees 1. Refer to the Premium Determination Section to determine the applicable Expense Fees. 2. Expense Fees are to be added separately to the premiums for Combined Single Limit, Bodily Injury, Property Damage, Comprehensive and Collision Coverages that apply to each auto. 3. Expense Fees are not subject to modification by the provisions of any rating plans or other rating rules (e.g. Driver Safety Record, Mileage Class, Years Driving Experience, Increased Limits Factors, Physical Damage Deductibles, etc.). Expense Fees are subject to the Good Driver Credit, if applicable. 4. Expense Fees are subject to the Cancellation and Suspension provisions of this manual. 5. Expense Fees are applicable to the rates for Miscellaneous Types vehicles rated in accordance with the provisions of this manual as follows: a. Classic Autos Add the expense fees to the Liability and Physical Damage rates. b. Golf Carts, Snowmobiles, Antique Autos and Motor Homes Add the expense fees to the Liability rates. Revised May, 2006 Unigard Insurance Company 7
Rule 4. Good Driver Credit ValuePlus Auto Product Guide All portions of this Personal Auto Product Guide and the Premium Determination Section apply to the Good Driver Credit, except as outlined below. A. Program Eligibility To qualify for a Good Driver Credit policy, all drivers of the vehicle(s) must: 1. have been continuously licensed to drive in any jurisdiction (including foreign) for the previous three years, per CCR 2632.13.1(a) In determining eligibility to purchase a Good Driver Discount policy, the requirement that the driver have been licensed to drive a motor vehicle for the previous three years shall mean that the driver has been licensed to drive in any jurisdiction. This licensing requirement does not include time developed Also see CIC 1861.025. A person is qualified to purchase a Good Driver Discount policy if he or she meets all of the following criteria: (d) Any person who claims that he or she meets the criteria of subdivisions (a), (b), the United States or Canada is rebuttably presumed to be qualified to purchase a Good Driver Discount policy if he or she has been licensed to drive in the United States or Canada for at least the previous 18 months and meets the criteria of subdivisions (a), (b), and (c) for that period. 2. have not been assigned a total of more than one point for the convictions and accidents as described in the Conviction and Accident Points described in Rule 6 of the Personal Auto Product Guide, in the 3 years preceding the effective date of the policy; (Note: Property Damage only accidents require $1,000 damage for one point to be assigned). For convictions, use the conviction date for determining whether the traffic violation conviction occurred in the three year experience period. 3. have not been determined to be principally at-fault, in accordance with CCR 2632.13, as the driver of a motor vehicle involved in an accident that occurred in the 3 years preceding the effective date of the policy, if such accident resulted in: a. death; or b. in a bodily injury accident. Note: Accident Verification Process (1) We require that all driving record activity be shown on the application. CLUE and Motor Vehicle Reports (MVR) will be used to verify the information provided by the applicant prior to upload. (2) We will accept the accident information in the application as sufficient proof of the accident history, unless we discover contrary information from an independent source (CLUE or MVR). This means that if the applicant indicates that no driver has had an at-fault accident, absent contrary information from an independent source, we will accept this representation as sufficient for purposes of determining eligibility for a good driver credit; Revised Nov., 2011 Unigard Insurance Company 8
(3) If we discover contrary information from an independent source that appears to dispute the information in the application, we will notify the applicant within 10 days of our discovery of this information. If the applicant responds to the information, we will work with the applicant to resolve any discrepancies; (4) We will allow the insured 2 weeks from the date of the letter to respond to the contrary information. 4. have not been convicted of a violation of any of the following Vehicle Code or Penal Code sections during the period beginning on January 1, 1999, or the date ten years prior to the date of application for the issuance or renewal of the Good Driver Discount policy, whichever is later, and ending on the date of application for the issuance or renewal of the Good Driver Discount policy: a. Cal. Veh. Code 23140, pertaining to violations of driving under the influence of an alcoholic beverage by persons under 21 years of age. b. Cal. Veh. Code 23152, pertaining to certain violations of driving under the influence of any alcoholic beverage and/or drug. c. Cal. Veh. Code 23153, pertaining to certain violations of driving under the influence of any alcoholic beverage and/or drug resulting in bodily injury to any other person. d. Cal. Veh. Code 23550, or former Cal. Veh. Code 23175, pertaining to conviction of Section 23152 within ten years of three or more separate violations of Sections 23103 or 23103.5, or Sections 23152 or 23153, or any combination thereof. e. Cal. Veh. Code 23566, pertaining to (1) conviction of Section 23153 within ten years of two or more separate violations of Section 23103, as specified in 23103.5, or Sections 23152 or 23153, or any combination thereof; or (2) conviction of Section 23153 and the act or neglect proximately caused great bodily injury. f. Cal. Penal Code 191.5, pertaining to gross vehicular manslaughter in the driving of a vehicle where the driving was in violation of Section 23140, 23152, or 23153 of the Vehicle Code. Revised Oct., 2008 Unigard Insurance Company 9
g. Cal. Penal Code 192, pertaining to vehicular manslaughter involving driving a vehicle: (1) in violation of Section 23140, 23152, 23153 of the Vehicle Code and in the commission of an unlawful act, not amounting to felony, but without gross negligence; or (2) in violation of Section 23140, 23152, or 23153 of the Vehicle Code and in the commission of a lawful act which might produce death, in an unlawful manner, but without gross negligence. 5. have not had more than one dismissal (pursuant to the Vehicle Code) in the three years immediately preceding the effective date of the policy of a violation that would have resulted in the imposition of more than one violation point as described under Conviction and Accident Points, Rule 6. Driver Safety Record Plan. Refer to Rule 6. Driver Safety Record Plan in this Personal Auto Product Guide for a definition of Principally At-Fault Accident. The law provides that an insured may, at his option, exclude any disqualifying drivers. Upon exclusion of such other drivers, the good driver shall then be able to purchase a Good Driver Policy Credit. B. Premium Determination Determine the Personal Auto premium separately by coverage. The application of the Good Driver Credit is the final step in the rating sequence. Refer to Premium Calculation in the Premium Determination Section. The Good Driver Credit applies to all coverages, flat charges, miscellaneous type vehicles and expense fees. Revised Oct., 2008 Unigard Insurance Company 10
Rule 5. Classifications ValuePlus Auto Product Guide This rule does not apply to risks rated in accordance with the Miscellaneous Types Rule. Refer to Section C for definitions of terms used in this rule. A. Rating Factors For each auto, determine the applicable Mandatory and Optional Rating Factors. In determining the Mandatory and Optional Rating Factors, use the characteristics of the Rated Driver wherever specified in the rules. Autos owned by an individual or by two or more resident relatives are classified as follows: 1. Mandatory Rating Factors The three mandatory rating factors are: a. Insured's driver safety record. Refer to the Driver Safety Record Plan - Rule 6. b. Annual miles driven. c. Years of driving experience. 2. Optional Rating Factors The optional rating factors are: a. Single car/multi-car household. b. Type of use of vehicle. c. Gender of the rated driver. d. Marital status of the rated driver. e. Mature Driver Improvement Course credit, if applicable. f. Vehicle percentage use of the rated driver. g. Renewal persistency. h. Academic standing of the rated driver. i. Secondary Driver, if applicable. j. Relative claims frequency. k. Relative claims severity. Revised May, 2006 Unigard Insurance Company 11
3. Classification Changes Compute premium adjustments on a pro-rata basis when changes in Mandatory or Optional Rating Factors are made. This includes the addition or deletion of a driver during the policy term. A policy shall not be changed mid-term: a. Because of an increase in the years of driving experience of a driver of the auto; b. To effect a change in the Driver Safety Record; or c. Due to a change in symbol assignment based on a review of loss experience. B. Corporate Owned For Private Passenger Autos owned by corporations, co-partnerships or unincorporated associations, and covered by a Personal Auto Policy: 1. Corporations, co-partnerships or unincorporated associations owning fewer than five motor vehicles: An owned private passenger auto principally furnished to a specified individual shall be classified and rated as if owned by that individual, in accordance with Rule 2.A.2. and Rule 5.A. 2. Farm family co-partnerships or farm family corporations: An owned private passenger auto principally garaged on a farm or ranch shall be classified and rated in accordance with Rule 5.A., provided the vehicle is: a. Not experience rated, and b. Not used in any occupation other than farming or ranching, or c. Used only in driving to or from work. Revised Sept., 2013 Unigard Insurance Company 12
C. Definitions 1. Annual Mileage Determine this factor by verifying the auto's mileage for the previous twelve month period prior to the effective date of the policy. We may retroactively or prospectively adjust premiums based on actual miles driven provided notice is sent to the policyholder prior to the effective date of the policy. The annual mileage rating factors are based on the mileage class groupings as displayed in the Premium Determination Section. a. New Business or adding vehicles via endorsement: (1) Annual mileage shall be verified by one or more of the following methods: a) by odometer readings of the insured vehicle or vehicles, made by an employee of the insurer, an agent of the insurer; or a third-party vendor retained by the insurer; b) by odometer readings recorded by an automotive repair dealer, as defined by section 9880.1 of the Business and Professions Code, in the ordinary course of the business of servicing a vehicle, provided to the insurer by the policyholder or by a vendor retained by the insurer. c) by odometer readings obtained from smog check stations licensed by the Bureau of Automotive Repair, from the Department of Motor Vehicles, or any other governmental agency that maintains public records of vehicle odometer readings. Any odometer readings obtained pursuant to this section shall be provided to the insurer by the policyholder, the Bureau of Automotive Repair, the Department of Motor Vehicles, any government agency that maintains odometer readings, or a vendor retained by the insurer. d) by odometer readings reported to the insurer by the insured or by an agent of the insured. (2) The Company may use the information gathered from the sources above to calculate the annual miles driven of each vehicle. Revised Sept., 2013 Unigard Insurance Company 13
(3) The calculated annual mileage will be reviewed annually. Should the Company identify that the mileage selection may be updated by the Company at the next renewal and the insured will be notified of the change in mileage rating. b. Renewal Business (1) Annually the Company will verify annual mileage by one or more of the following methods: a) by odometer readings of the insured vehicle or vehicles, made by an employee of the insurer, an agent of the insurer; or a third-party vendor retained by the insurer; b) by odometer readings recorded by an automotive repair dealer, as defined by section 9880.1 of the Business and Professions Code, in the ordinary course of the business of servicing a vehicle, provided to the insurer by the policyholder or by a vendor retained by the insurer. c) by odometer readings obtained from smog check stations licensed by the Bureau of Automotive Repair, from the Department of Motor Vehicles, or any other governmental agency that maintains public records of vehicle odometer readings. Any odometer readings obtained pursuant to this section shall be provided to the insurer by the policyholder, the Bureau of Automotive Repair, the Department of Motor Vehicles, any government agency that maintains odometer readings, or a vendor retained by the insurer. d) by odometer readings reported to the insurer by the insured or by an agent of the insured. e) by a technological device for determining actual miles driven only and not to collect or store information about the location of the insured vehicle. (2) The Company will use the information gathered from the sources above to calculate the annual miles driven of each vehicle annually. (3) Should the Company identify that the actual mileage driven is significantly different than the current rated annual mileage, the annual mileage rating will be updated at the next renewal and the insured notified of the change in mileage rating. Revised Sept., 2013 Unigard Insurance Company 14
Rule 5. ValuePlus Auto Product Guide (4) We may also request, as set forth in Rule c. Additional Information section below, information from the policyholder necessary to verify the annual mileage. c. Additional Information that may be requested to verify annual mileage: Upon request by the Company, a policyholder may be required to provide independent verification of the odometer reading being reported. Examples of independent verification include (but are not limited to) a current photograph of the odometer reading, a copy of a recent oil change or service record invoice that includes the odometer reading of the vehicle, or a smog check certification showing the odometer reading. d. No Response Mileage If a response from the insured for odometer reading verification outlined in c.(1) above is not received, we will notify the insured that the annual mileage of 11,061 will be used in rating. This mileage is based upon an independent study conducted by the Air Resources Board, which was a research project to understand the average miles driven by the consumer. 2. Years Driving Experience, Gender and Marital Status a. Inexperienced Driver means an applicant, or any other driver resident in the same household as the applicant, who customarily drives the auto, and is one of the following: (1) Inexperienced Unmarried Female Driver--unmarried female licensed for less than three years, who is not an owner or principal driver; (2) Inexperienced Unmarried Female Owner Or Principal Driver--unmarried female licensed for 8 years or less who is an owner or principal driver; (3) Inexperienced Married Female--married female license for 8 years or less; (4) Inexperienced Unmarried Male Driver--unmarried male licensed for less than three years, who is not an owner or principal driver; (5) Inexperienced Unmarried Male Owner Or Principal Driver--unmarried male licensed for 13 years or less who is an owner or principal driver; (6) Inexperienced Married Male Driver--married male licensed for 8 years or less. Revised Sept., 2013 Unigard Insurance Company 15
Ru ValuePlus Auto Product Guide b. Experienced Driver means an applicant, or any other driver resident in the same household as the applicant, who customarily drives the auto and is not defined as an Inexperienced Driver in Rule 5.C.2.a, above. c. Licensed means licensed in the United States, Canada or any other jurisdiction. It does not include d. Married means a married person or a person who is widowed. A married person who is not currently living with his or her spouse because of a temporary job assignment elsewhere is considered "married" for this rule. For the purposes of Rule 5. Classifications, reference to married shall include individuals who are registered domestic partners under law. Note: Throughout this manual, reference to the term spouse shall include an individual registered under law as a domestic partner of the insured named in the policy. e. Resident means anyone residing in the same household including a student residing at an Inexperienced Unmarried Female Driver or an Inexperienced Unmarried Male Driver is a student residing at an educational institution over 100 road miles from the auto's place of principal garaging, the auto is rated with a Distant Student Discount. Note: A person in active military service with the armed forces of the United States of America is not considered a resident in the applicant's household unless this person customarily drives the auto. Revised Sept., 2013 Unigard Insurance Company 16
3. Vehicle Use The Vehicle Use factor shall be based on the actual use of the auto by the principal driver, or by the driver who uses the auto most frequently. a. "Business Use" means use of the vehicle in an occupation, profession, or business is part of the duties of the person who customarily operates the auto. Business use applies if at least four days per month the vehicle is used for other than commuting from home to work and back home. Sole use of the vehicle in Examples of occupations with business usage of vehicles include but are not limited to: real estate agents, insurance agents, outside sales people, clergy, and construction trades people. A contractor or carry materials, deliver bids and perform other job duties. The vehicle he or she uses should be rated b. "Farm Use" means the auto is principally garaged on a farm or ranch, and not customarily used in any occupation other than farming or ranching. school. not include autos customarily used in going to or from work or driving to or from c. "Pleasure Use" means: (1) no "business use"; and (2) personal use, including driving to or from work or school, less than 3 road miles one way; or (3) 3 or more, but less than 15, road miles one way for not more than 2 days per week or not more than 2 weeks in any 5 week period. Revised Sept., 2013 Unigard Insurance Company 17
Rule 5. ValuePlus Auto Product Guide d. "Work Less Than 15" means: (1) no "business use"; and (2) personal use, including driving to or from work or school, less than 15 road miles one way; or (3) 15 or more road miles one way, for not more than 2 days per week or not more than 2 weeks in any 5 week period. e. "Work 15 or More Miles" means: (1) no "business use." (2) personal use, including driving to or from work or school, 15 or more road miles one way more than 2 days per week or more than 2 weeks in any 5 week period. f. An auto driven part way to or from work or school, such as to a park and ride lot, whether or not the auto is parked at the lot during the day, shall be considered as driving to or from work or school. g. Autos used by federal government employees: For Uninsured Motorists Bodily Injury, and Uninsured Motorists Property Damage coverages, an auto used in the business of the U.S. Government by one of its employees may be classified as "Pleasure Use", "Work Less Than 15 Miles" or "Work 15 or More Miles." Coverage is limited in accordance with the policy. h. V use is if the number of vehicles exceeds the number of elgibile to be rated drivers, an excess vehicle use factor is applied to that vehicle. Revised Sept., 2013 Unigard Insurance Company 18
4. Renewal Credit Policies will earn a renewal credit beginning with the first full year of the policy through the end of the sixth year. The maximum renewal credit is 6%. Time insured with Unigard under another personal auto policy does count toward earning this credit if there has been no lapse in coverage for 90 days or more. Time with another company does not count toward earning this credit. This credit is removed if at any time the policy lapses for 90 days or more. a. Premiums for Single Limit Liability or Bodily Injury and Property Damage Liability, Uninsured Motorists Bodily Injury, Uninsured Motorists Property Damage, Medical, Comprehensive and Collision coverages are subject to the Renewal Credit. Premiums and rates for Motor Homes and Classic Autos are eligible for this credit. Premiums and rates for miscellaneous coverages other than Uninsured Motorists Bodily Injury and Uninsured Motorists Property Damage are not subject to this credit. Other Miscellaneous Type Vehicles which include Antique Autos, Golf Carts, Snowmobiles, and Trailers are not subject to this credit. b. Apply the credit separately by coverage. 5. Good Student or College Graduate Credit This factor shall be based on the Rated Driver's eligibility for the good student credit. a. A Rated Driver eligible for the good student credit is: (1) a student attending an accredited high school, college or university while enrolled in a minimum of 12 quarter or semester hours; or (2) a graduate of an accredited community college or four year college or university in the United States or Canada. Revised Sept., 2013 Unigard Insurance Company 19
b. A certified statement from a school official is presented to Unigard indicating that the student has met one of the following requirements during the immediately preceding school semester or quarter: (1) Is in the upper 20% of his or her class scholastically. (2) Maintains a "B" average, or its equivalent. If the letter grading system cannot be averaged, then (3) When in a school maintaining a numerical grade, must have at least a 3 in a 4, 3, 2, 1 point system or its equivalent. (4) Student is included in a "Dean's List," "Honor Roll" or comparable list indicating scholastic achievement. (5) Showing a degree has been conferred upon the insured from an accredited community college or four year college or university. Continued eligibility for this classification is based upon the following: a. The owner or driver receiving the good student classification provides continued proof of eligibility, upon request from Unigard, by providing a certified statement as outlined in part b. above. b. Once an insured or driver has provided proof of eligibility as a college graduate, no further proof is needed. Note: This credit is removed on the renewal after the insured has been licensed 8 years or reaches age 25, whichever comes first. A classification change resulting from a change in the scholastic standing of the student cannot be effected other than on the renewal date of the policy. Revised Jan., 2008 Unigard Insurance Company 20
6. Mature Driver Improvement Course Credit a. A Mature Driver Improvement Course credit shall be applied to the premiums for Single Limit Liability or Bodily Injury and Property Damage Liability coverages applicable to the insured motor vehicle provided the principal driver: (1) is age 55 or older; and (2) has a completion certificate, dated within the most recent 36 months certifying that he or she has successfully completed a Mature Driving Improvement Course approved by the Department of Motor Vehicles; and (3) during the most recent 3 years has not been: (a) (b) involved in an at-fault accident, or convicted of a violation of Division 11 of the Vehicle Code, except Chapter 9 of that Division, or is convicted of a traffic related offense involving alcohol or narcotics. b. This credit shall apply: (1) to new and renewal policies with an inception date within the 3 year period following the course completion date. (2) only to that vehicle principally operated by the insured with the course completion certificate. (3) only once to each such motor vehicle regardless of the number of drivers with course completion certificates. Revised Jan., 2008 Unigard Insurance Company 21
7. Assignment of Drivers of Autos Assign drivers to autos in accordance with the following rule. All drivers in the household shall be assigned, unless the driver has been excluded from coverage under this policy by means of a Named Driver Exclusion. After making the assignment of drivers, refer to Rule 5.C.9. Rated Driver Determination to determine the Rated Driver of each auto. a. Each driver must be assigned to at least one auto. A driver can be assigned to only one auto. Each auto must have a driver assigned to it. If there are more autos than drivers, refer to Rule 5.C.10. Classifying Autos In Excess of Drivers. b. Experienced Driver Each principal driver shall be assigned only to the auto he or she principally drives. (1) For drivers in the household who are experienced drivers, apply the appropriate Years of Driving Experience Class (refer to the Premium Determination Section) based on the number of years experience for the principal driver of the auto. (2) If there are inexperienced drivers in the household, apply the appropriate inexperienced driver class in accordance with Rule 7.c. Inexperienced Drivers, below. c. Inexperienced Drivers (1) Single Car Risks The inexperienced driver with the highest rating factor shall apply. The highest rated driver shall be the driver who develops the highest combined factor for these classification categories: Driver Safety Record, Years of Driving Experience, Principal/Non-Principal Driver, Gender, and Marital Status. Revised Jan., 2008 Unigard Insurance Company 22
(2) Multi-Car Risks (a) (b) (c) Assign any inexperienced principal drivers to the auto he or she principally drives. Assign other non-principal drivers (NPD) to the auto he or she drives most frequently. If, per assignments made in Rule c.(2)(b) above, any auto has more than one inexperienced driver AND there are other autos on the policy that have not been assigned an inexperienced driver, use the following assignment procedure instead of the procedure described in c.(2)(b) above: (i) (ii) assign the highest rated NPD to the auto he or she drives most frequently. assign remaining NPD's to remaining autos in the order of highest rated NPD to the remaining auto he or she drives most frequently. (d) The highest rated NPD shall be the NPD who develops the highest combined factor for these classification categories: Driver Safety Record, Years of Driving Experience, Principal/Non- Principal Driver, Gender, and Marital Status. d. Multi-Car Credit The Multi-Car Rating Factor applies if more than one private passenger auto is owned by an individual or owned jointly by two or more resident relatives and each auto is insured for liability in Unigard Insurance Company. Single Auto policies with Unigard are also eligible for the Multi-Car Credit when a private passenger auto is provided and insured by an employer for the personal use of our insured. The auto insured policy must be insured for liability coverage for this credit to apply. 8. Secondary Driver a. Refer to Rule 5.C.9. to determine if a Secondary Driver classification is applicable to the auto. b. Use the procedures in Rule 5.C.9. to determine the Secondary Driver classification factor for the auto, if applicable. Revised Jan., 2008 Unigard Insurance Company 23
9. Rated Driver Determination Procedure a. Determination of the Rated Driver Only one driver may be designated as the Rated Driver of an auto, and that driver may not be used in the rating of any other auto on the policy. The rated driver may not necessarily be the person who principally drives the auto. (1) If only one driver has been assigned to an auto as provided in Rule 5.C.7. Driver Assignment, that driver shall be the Rated Driver. Classify the auto in accordance with Rule 5.A. using the characteristics of the Rated Driver wherever specified in the rules. (2) If more than one driver has been assigned to an auto as provided in Rule 5.C.7.: (a) (b) the Rated Driver shall be the driver who generates the highest combined factor for these classification categories: Driver Safety Record, Years Driving Experience, Principal/Non- Principal Driver, Gender, and Marital Status. Classify the auto as provided in Rule 5.A. using the characteristics of the Rated Driver wherever specified in the rules. a Secondary Driver classification shall apply to the auto. Refer to Section b. below to select the one driver of the auto to be used for determining the Secondary Driver classification. b. Determination of the Secondary Driver (if applicable) (1) If the Secondary Driver classification is applicable to the auto, the classification shall be based on the Driver Safety Record of the secondary driver of the auto. A driver may be selected as a Secondary Driver only if he or she has not been selected as a Rated Driver on any other auto on the policy. (2) If there is more than one Secondary Driver of an auto, the Secondary Driver classification shall be based on the Driver Safety Record of the one Secondary Driver who develops the highest Secondary Driver factor. (3) The driver who is used for the Secondary Driver classification may only be used to rate one auto. (4) Determine the applicable Secondary Driver from the appropriate Driver Safety Factor Assignment Tables in the Premium Determination Section. Revised Jan., 2008 Unigard Insurance Company 24
10. Classifying Autos in Excess of Drivers Refer to Rule 5.C.7. to assign drivers to autos. a. Classify each auto to which no driver is assigned in accordance with the following rules: (1) Driver Safety Record classification, use the Driver Safety Record Table for Zero Points in the Premium Determination Section (or Personal Auto Supplement Section). (2) Years Driving Experience, Gender and Marital Status Use the undesignated driver factors for rating of Excess Vehicles as displayed in the Premium Determination Section. b. For the following classification categories, determine the appropriate Mandatory and Optional Rating Factor for each auto based on the actual risk characteristics of each auto: (1) Annual Mileage - use estimated annual mileage of the auto. (2) Vehicle Use. (3) Apply appropriate credits: Passive Restraint, and Anti-Theft Devices. 11. Vehicles Equipped with Anti-Theft Devices The following credit applies to Comprehensive Coverage only. To qualify for a credit on Comprehensive Coverage, the vehicle must be equipped with (1) a hood lock which can only be released from inside the vehicle, and (2) a device meeting the following criteria: A disabling device is categorized as passive if a separate manual step is not required to engage the device. A credit on Comprehensive Coverage will be applied on vehicles equipped with passive disabling devices which disable the vehicles by making the fuel, ignition or starting system inoperative, or which has the LoJack or On-Star vehicle tracking system. Refer to Premium Determination Section for rating factor. Note: Indicate the trade name and the manufacturer of the Anti-Theft device in the Remarks section of the application or the policy change request form. Revised Oct., 2009 Unigard Insurance Company 25
12. Cross Sold Credit (Multi-Policy Credit) A Cross Sold credit will be allowed on the policy if a Named Insured(s) or resident spouse is also the Named Insured on a Unigard, or affiliates of QBE Americas, Inc., primary Homeowners or Condominium Unit-Owners or Tenant policy. Note: Refer to the Premium Determination Section for discount factors by coverage. Premium Determination - Auto Premiums for Single Limit Liability or Bodily Injury and Property Damage Liability, Uninsured Motorists Bodily Injury, Uninsured Motorists Property Damage, Medical, Comprehensive and Collision coverages are subject to the Cross Sold Credit. Premiums and rates for Motor Homes and Classic Autos are eligible for this credit. Premiums and rates for miscellaneous coverages other than Uninsured Motorists Bodily Injury and Uninsured Motorists Property Damage are not subject to this credit. Other Miscellaneous Type Vehicles, which include Antique Autos, Golf Carts, Snowmobiles, and Trailers are not subject to this credit. Revised Mar., 2015 Unigard Insurance Company 26
13. Ultra Good Driver Discount An Ultra Good Driver Discount will be applied to the premium of a rated driver when he or she meets the following requirements: The driver must meet all of the criteria set forth in the Good Driver rule and be continuously licensed in any jurisdiction for the last three years. Exception: Drivers who obtain their experience other than in the United States or Canada. The driver must have no surcharged accidents or violations in the last three years (36 months) to earn 2.5%, or five years (60 months) to earn 5%. The discount is removed when a surcharged accident or violation occurs. When the driver is three years surcharge accident or violation free the discount will be re-applied. This discount is applied to Single Limit Liability or Bodily Injury and Property Damage Liability, Uninsured Motorists Bodily Injury, Uninsured Motorists Property Damage, Medical Payments, and Collision premiums. Premiums and rates for Classic Cars are eligible for the credit Premiums and rates for miscellaneous coverages other than Uninsured Motorists Bodily Injury and Uninsured Motorists Property Damage are not subject to this credit. Other Miscellaneous Type Vehicles which include Motor Homes, Antique Autos, Golf Carts, Snowmobiles, and Trailers are not subject to this credit. The discount is applied separately by coverage. Application of the discount: This discount will apply to the vehicle(s) the rated driver is assigned to. When multiple drivers are assigned to the same vehicle, the discount for the rated driver will apply. Revised Mar., 2015 Unigard Insurance Company 27
Rule 6. Driver Safety Record Plan ValuePlus Auto Product Guide A. Eligibility The Driver Safety Record Plan shall be applied in the rating of all autos under the Personal Auto Program, except Miscellaneous Types. The Plan shall not be applied to an auto that is used in the business of driver training. B. Definitions 1. Driver Record Points a. Convictions Points shall be assigned in accordance with the following for motor vehicle violations for which the applicant or any driver of the vehicle currently resident in the same household has been convicted or for which bail has been forfeited during the experience period, while operating any Private Passenger type auto. Points assigned under this Rule 6.B.1.a., shall reflect only the conviction record of the Rated Driver of the auto (unless a Secondary Driver Classification is also applicable to the auto, in which case a Secondary Driver factor shall apply in accordance with Rule 5.C.7.) (1) Two points shall be assigned for conviction of or failure to appear for: (a) (b) (c) (d) (e) (f) (g) (h) evading a peace officer - reckless driving or causing injury or death. driving while the license is suspended or revoked. driving on the wrong side of a divided highway. speeding over 100 miles per hour. reckless driving. minor driving with blood alcohol of.05% or more. driving under the influence of alcohol or drugs. any other violation assigned two points by the Department of Motor Vehicles. Revised Jan., 2013 Unigard Insurance Company 28
(2) One point shall be assigned for the conviction of a code violation that is assigned one point by the Department of Motor Vehicles. Note: Conviction for two or more violations except those defined under (1) or (2) above shall be considered as one violation if they were incurred at the same time and on the same summons or citation. b. Accidents A driver shall be considered principally at-fault in an accident if: the accident was a solo vehicle accident; or the driver's actions and/or omissions were at least 51 percent of the legal cause of the accident, subject to the Exceptions noted in Rule 6.B.1.b.(3) below: Note: Refer to Rule 4. for Accident Verification information. Points assigned under this Rule 6.B.1.b., shall reflect only the principally at-fault accidents of the Rated Driver of the auto (unless a Secondary Driver classification is also applicable to the auto, in which case a Secondary Driver factor shall apply in accordance with Rule 5.C.6.f.) (1) Two points shall be assigned for each principally at-fault auto accident involving the applicant, or any other driver of the auto currently resident in the same household, while operating any private passenger type auto resulting in: (a) (b) death; or in a bodily injury accident, if the total loss or damage (bodily injury only or bodily injury and property damage), including his or her own, caused by the accident exceeds $750, or (2) One point shall be assigned for each principally at-fault auto accident involving the applicant, or any other driver of the auto currently resident in the same household, while operating any private passenger type auto resulting in property damage only, including his or her own, which exceeds $1,000. Revised Sept., 2013 Unigard Insurance Company 29
Note: (1) When an accident results in one or more moving violations, we will charge appropriate points for the highest rated offense only. (2) No points shall be assigned under the applicant's policy for principally at-fault accidents incurred by a driver demonstrated to be a named insured or principal driver of an auto insured under a separate policy. (3) No points shall be assigned for an accident described above if the insured demonstrates that the accident occurred under the following circumstances: (a) (b) (c) (d) (e) (f) (g) Automobile lawfully parked. A vehicle rolling from a parked position shall not be considered lawfully parked and shall be considered in the operation of the last driver. The insured driver is either determined to be less than 51% negligent or is reimbursed for 51% or more of his or her damages by, or on behalf of, a person involved in the accident. Auto was struck in the rear by another vehicle, and the insured driver has not been convicted of a moving traffic violation in connection with the accident. The driver of the other auto involved in the accident was convicted of a moving traffic violation and the insured driver was not convicted of a moving traffic violation. The auto was damaged by a "hit and run" driver and the accident was reported to the proper authority within 24 hours. The accident involved damage by contact with animals, birds or falling objects. The accident occurred as a result of the operation of any auto in response to an emergency if the driver at the time of the accident was responding to a call to duty as a paid or volunteer member of any Police or Fire Department, First Aid Squad, or any law enforcement agency. This exception does not include an accident occurring after the emergency situation ceases or after the private passenger auto ceases to be used in response to such emergency. Revised Oct., 2008 Unigard Insurance Company 30
(h) (i) (j) (k) The accident occurred when using the auto for compensation during the hours of employment if the driver has not been cited or convicted of homicide or assault arising out of the operation of the auto for compensation during the hours of employment, and if, the employer or applicant has submitted a written declaration, under penalty of perjury, that the applicant or insured was at such time operating the auto for compensation during working hours. The accident occurred as a result of the operation of an automobile under circumstances requiring licensing as a chauffeur. The accident occurred while operating a government vehicle in performance of duty as a federal officer or customs agent during the hours of his or her employment. The accident was a solo vehicle accident that was principally caused by a hazardous condition of which a driver, in the exercise of reasonable care, would not have noticed (for example, "black ice") or in the exercise of reasonable care could not have avoided (for example, avoiding a child running into the street). 2. Experience Period The experience period shall be the 36 months immediately preceding the effective date of the application or renewal. 3. Refund of Surcharged Premium If a point has been assigned for an accident and it is later determined that the accident falls under one of the exceptions in this rule, the company shall refund to the insured the increased portion of the premium generated by the accident. C. Administration of the Plan 1. New Business -- Risks not written by the company for the previous 6 months. a. The initial information necessary to assign the proper Driver Record Sub-Classifications shall be obtained from an application signed personally by the applicant and may be substantiated by Motor Vehicle Records and/or C.L.U.E. reports. b. The signature of the applicant on all applications received from an agent, broker or solicitor shall be certified by such agent, broker or solicitor. Revised Nov., 2011 Unigard Insurance Company 31