MISSOURI PERSONAL AUTO MANUAL

Transcription

1 MISSOURI PERSONAL AUTO MANUAL

2 CORNERSTONE NATIONAL INSURANCE COMPANY INDEX Page Additional Coverages and Endorsements: 12 Additional Insured-Lessor 12 Audio, Visual and Electronic Data Equipment Coverage 13 Customized Vans and Customized Pickups 12 Extended Non-Owned Automobile Coverage 12 Increase Limits Transportation Expense 14 Leased Vehicles 12 Named Non-Owned Coverage or Operators Policy 12 Pickup and Vans-attachments 14 Tapes, Records, Discs and Other Media Coverage 14 Roadside Assistance 12 Transportation Expense 14 Vehicle Model Year 14 Base Rates 38 Cancellation Procedures 12 Cancellation Pro Rata Table 19 Claims: 11 Chargeable Claims 11 Experience Period 11 Classification Determination: 10 Changes in Classification 10 Premium Adjustment Program 10 Primary Classification 10 Secondary Classification 10 Coverage Limits, Factors, Premiums: 65 Bodily Injury Limits 65 Collision 66 Extended Transportation Expense 68 Medical Payments 65 Other Than Collision 66 Property Damage 65 Underinsured Motorists 66 Uninsured Motorists 65 Roadside Assistance 68 Coverages Acceptable 2 MO 3-15 i CNIC

3 Definitions and Interpretations: 2 Auto 3 Big Pickups 2 Confidential Information 3 Liability 3 Married 3 Named Insured 3 Occasional Driver or Operator 2 Prior Insurance 4 Principal Driver or Operator 2 Private Passenger Automobile 2 Resident 3 Single Limit Liability 3 Trucks 2 Vehicle Inspection and Pictures 3 Young Driver Questionnaire 3 Do Not Bind-Applicants 6 Do Not Bind-Vehicle 6 Eligibility 5 General Provisions 1 Applications 1 Bound Applications 1 Brokered Business 1 Policy Terms and Renewals 1 Miscellaneous Procedures and Endorsements: 7 Financial Responsibility Risks 7 Military Personnel 7 Named Driver Exclusion 7 Physically Impaired Drivers 7 Miscellaneous Programs: 15 Antique Cars 17 Classic Cars 16 Recreational Trailers and Campers 15 Utility Trailers 15 Non-Insurable Risks-Applicants 5 Non-Insurable Risks-Vehicles 6 Payment Options 69 Policy Discounts: 7 Annual Policy Discount 9 Claim Free Discount 8 Driver Training Credit 7 Good Student Discount 9 Homeowner Policy Credit 8 MO 5-06 ii CNIC

4 Multi Car Discount 8 Policy Renewal Discount 9 Renewal Claim Free Discount 8 Six-Month Policy Discount 9 Transfer Discount 8 Youthful Farm Operator Credit 8 Premium Adjustments 11 Premium Determination 10 Rate Factor and Statistical Codes: 29 Premium Adjustment Program: 34 Eligibility and Qualifications 34 Miscellaneous Credits/Surcharges Table V 36 Premium Adjustment Factors Table III 35 Premium Adjustment Surcharges Table IV 35 Primary Classification Table I 29 Secondary Classification Table II 33 Rating Procedure/Example 28 Symbols for Pickups Rated as Private Passenger Cars 18 Territory Definitions 21 Vehicle Use: 4 Business Use 4 Business Use Government 4 Farm Use 4 Non Business Use 4 Pleasure Use 4 Work Less Than 10 Miles 4 Work 10 Miles or More 4 MO 6-08 iii CNIC

5 THIS PAGE LEFT BLANK INTENTIONALY MO 3-04 iv CNIC

6 CORNERSTONE NATIONAL INSURANCE COMPANY Missouri Automobile Program Guidelines and Rules The Guidelines and General Rules includes rules and rates that are applicable to the Cornerstone National Insurance Company. The goal of our company is to write profitable automobile business. The guidelines and rules are provided to aid agents and producers with the selection of good risks. The agents should evaluate and underwrite business before submitting the application for approval. Electronic uploads on Acord applications are to be used whenever possible. Some of the contents of this manual contain copyrighted materials of Insurance Services Office, Inc. with permission. Copyright, Insurance Services Office, Inc. GENERAL PROVISIONS Applications: A completed and signed application must be completed on each new risk. The original completed and signed application must be maintained in the agent s office. Any application submitted without disclosing all drivers, loss history, including Other Than Collision (comprehensive) claims and violations may be declined and not considered for reinstatement. Any application submitted without proper monetary consideration will not be considered bound. Bound Applications: Applications must be postmarked, or submitted, to the Company within 72 hours of the effective date. Applications received after the 72 hour postmarked period will become effective on the date received in the home office. Policy Terms and Renewals: 1. Policy terms shall be: a. Semi-annual term at rates shown in the manual, or b. Annual term at twice the semi-annual rate. On six month policies with an effective date of the 29 th, 30 th, or 31 st of any month, the first policy can be extended from the effective date to the first day of the calendar month following the expiration of the policy. The premium for this extended coverage of one to three days may be waived. 2. Renewals: When an agent collects the renewal premium before the due date, he/she should note the date and time of the collection on the notice that is being mailed to the company. This shows coverage is in force continuously in the event payment is not received by the office until after the due date. Uploading the payment directly to the company is preferred. Brokered Business: Brokered business is not acceptable. MO CNIC

7 COVERAGES ACCEPTABLE Acceptable coverages with Cornerstone National Insurance Company are: 1. Bodily Injury and Property Damage Liability Coverage alone; 2. Bodily Injury and Property Damage Liability Coverage with Physical Damage; 3. Other Than Collision, only with Liability; 4. Uninsured Motorist Bodily Injury Coverage, only with Liability; 5. Underinsured Motorist Coverage, only with Uninsured Motorist Bodily Injury Coverage; 6. Uninsured Motorist Bodily Injury Coverage and Underinsured Motorist Coverage must be written for the same limits; Note: UM and UIM Limits cannot be greater than the Liability Limits. UIM Limits of 25/50 not available. 7. Extended Transportation Expense Coverage, only with Other Than Collision and Collision; 8. Roadside Assistance Coverage, only with Liability. DEFINITIONS AND INTERPRETATIONS Private Passenger Automobile: A four wheel motor vehicle of the private passenger, station wagon or jeep type owned by or leased under contract for a continuous period of at least six months. A motor vehicle with a pickup, van or other truck body with a gross vehicle weight of 10,000 pounds or less shall also be defined as a private passenger automobile. The word automobile as used in this manual means a vehicle defined as a private passenger automobile. Trucks: Motor vehicles of the truck type having a manufacturer s gross vehicle weight of 10,001 pounds or more, and merchants trucks and vans commonly referred to as 1 /4 ton, 1/2 ton, 3/4 ton and one ton. Trucks are not eligible for the private passenger automobile program. Big Pickups: Pickup trucks over 10,000 GVW can be insured as an exception to the standard definition of a personal auto, provided it is used for personal use only. No business use, other than farming, will be permitted. No operators under age 25 will be accepted. A plus.15 factor will be applied to the Liability coverages. Photographs must be submitted with the application. Principal Driver or Operator: One who drives the vehicle 50% or more of the time. In the event there are three operators and three vehicles insured for one family and one operator is unmarried and under the age of 25, then that driver will be considered a principal operator of one unit and charged the appropriate rate. The same rule applies if there are two automobiles and two operators if one is unmarried and under 25. Occasional Driver or Regular Use Operator: An individual who may or may not be, a household member, but uses the insured vehicle(s) on average of twice a month or twenty four times per year. These individuals, household residents or otherwise, MUST be listed on the application. An occasional, youthful operator must be added to the vehicle which develops the highest premium. Any household member who turns 16 years of age MUST be rated or excluded, regardless if they are permitted, licensed or otherwise. MO CNIC

8 Married: A married person living with their spouse and includes a person widowed, divorced or legally separated only if such person has custody of a child residing in the household. Resident: Anyone residing in the same household, either on a full, part-time or temporary basis over 14 years of age MUST be listed on the application, except: 1. An individual in active military service will not be considered a resident of the household unless such individual regularly operates the automobile. 2. A youthful unmarried female occasional operator or a youthful unmarried male occasional operator who is a resident student at an educational institution over 100 miles from the place of principal garaging of the automobile shall be considered a resident in the household but the automobile shall be rated as if the operator were married. Auto: Refers to a private passenger auto or a vehicle considered as a private passenger auto. Liability: Refers to Bodily Injury and Property Damage Coverages. Single Limit Liability: Refers to one limit of liability that covers both Bodily Injury and Property Damage. Named Insured: Generally the name on the title to the vehicle should be the name on the application and policy. The name of the principal driver may be included on the application along with the name of the person having the title. Vehicle Inspection and Pictures: Agents are expected to make a thorough inspection of the insured automobile. A description and location of all existing damages should be listed on the application. Pictures are required of all automobiles with physical damage coverage for: 1. Automobiles 11 years and older; all vehicles 25 years and older regardless of coverage, 2. Customized vans and pickups, 3. Classic cars and antique cars. Confidential Information: Agents will receive correspondence from our office containing confidential information on questions about applicants or policyholders. These letters are for agents personal use only and should not be disclosed to anyone other than a company representative. MO CNIC

9 Prior Insurance: Proof of prior insurance must be maintained by the agent on new applications. Documents which we will accept as proof are: 1- Company issued declarations page from prior policy period; 2- Company issued offer to renew existing policy, including identification card; 3-Notice of cancellations with effective dates. VEHICLE USE DEFINITIONS Pleasure Use: There is no business use of the automobile and it is not used in the course of driving to or from work. However, an automobile which would otherwise be classified as Pleasure Use and is used for driving to and from school shall be considered as used for driving to and from work. Work Less Than 10 Miles: There is no business use of the automobile but it is used in the course of driving to or from work a distance of less than 10 road miles one way. Work 10 or More Miles: There is no business use of the automobile but it is used in the course of driving to and from work a distance of 10 or more road miles one way. Business Use: Any vehicle used in the insured s business or occupation and titled to the insured personally (no DBA, LLC, etc.), except described below. Acceptable business use includes, but not limited to: vehicles used by sales, service, real estate, and insurance representatives. No delivery, taxi services or livery conveyance is acceptable. Business Use Government Use: A vehicle used in the business of the United States Government by an employee of the Government, shall be considered a private passenger auto only if: a. It meets the conditions of a private passenger vehicle, and b. Coverage is limited in accordance with the federal employees using autos in government business endorsement. Non Business Occupations: Automobiles used by individuals in the following occupations shall not be considered as used for business use: 1. Clergymen, except evangelists. 2. County and State Agricultural Extension Personnel. 3. Home Health, Social and Welfare workers. 4. Soil and Wildlife Conservation Commission Personnel. Farm Use: A farm automobile if: MO CNIC

10 1. Garaged on a farm. 2. Not ordinarily used in going to or from work or school. 3. Not used in any occupation other than farming. 4. The principal operator is actively engaged in farming. ELIGIBILITY 1. Personal Auto Policy shall be used to afford coverage to private passenger autos if: a. They are written on a specified auto basis, and b. They are: 1- owned by an individual or by a husband and wife who are residents in the same household, or 2- owned jointly by two or more resident relatives other than husband and wife, or 3-owned jointly by two or more resident individuals, or 4- owned jointly by two or more non-resident relatives, including a non-resident household husband and wife, or 5- owned by a farm family co-partnership or farm family corporation. 2. Youthful Operators Assignment of vehicles: a. Assign any youthful principal operator to the auto they principally operate. Except: A married male operator under age 25 with more than one vehicle will be rated on the vehicle that develops the highest premium. b. Assign other youthful operators to remaining autos as follows: 1- Determine the primary pleasure use rating factors of all youthful operators. 2- Assign the youthful operator with the highest primary rating factor to the auto he/she operates most frequently. 3- Remaining youthful operators are assigned to remaining autos in the order of the highest rated youthful operator to the auto with the highest total base premium. 4- After assigning youthful operators to autos on the basis of pleasure use rating factors, each factor must be adjusted for the actual use of the auto before determining and applying the Secondary Rating Factor. 5- Any remaining autos are rated at the appropriate No Youthful Operator classification. NON-INSURABLE RISKS-APPLICANTS Do not submit an application for the following applicants: 1- Persons who use alcohol, drugs or narcotics to excess. If the person has had one or more alcohol or drug related violation in their history, they are not insurable; 2- Persons engaged in any illegal or illicit business of any kind; 3- Individuals whose records disclose frequent or serious accidents; 4- Persons or physically impaired drivers with health problems that make them susceptible to accidents or to serious complications if injured, such as, but not limited to: MO CNIC

11 a. Neurological disorders b. Near loss of sight, c. Severe heart condition in past 3 years, d. Epilepsy in the past 5 years, e. Loss of use of hands and/or feet, f. Use of insulin for diabetes. 5- Any driver for which a three (3) year driving history cannot be verified. NON-INSURABLE RISKS-VEHICLES Do not submit an application for the following vehicles: 1-Any vehicle with tracks, crawler treads, or more or less than four (4) wheels; 2- Gray Market cars-cars not originally manufactured to meet U.S. standards; 3- Vehicles used for pickup/delivery, livery, limousine or taxi service, or any commercial purposes; 4- Emergency vehicles; 5- Vehicles equipped or used for snowplowing; 6- Restored, custom built, reproduction cars, kit cars, or limited production vehicles; 7-Motor homes and recreational vehicles; 8- Vehicles not registered for street use; 9- Vehicles with non-factory mechanical or structural modifications; 10-Racing, Dragsters, Hot Rods or Stock Cars, and Dune Buggies. 1 1-Physical Damage coverage on vehicles over 15 years old, except in Classic or Antique Program. 12- Vehicle(s) not titled to the named insured(s). DO NOT BIND-APPLICANTS Do not bind coverage on the following applicants: 1-Applicants that have had a license suspension or revocation within the last five years; 2- Persons who have never been licensed; 3- Persons who require an SR-22; 4- Applicants who are disabled will need to complete a medical statement; 5- Persons age 75 and over will need a doctor s statement along with the medical statement; 6-Applicant(s) with less than 2 years of driving experience without parental supporting business; 7-Operators without a valid Missouri Drivers License. Out of State license may be acceptable if the driver obtains a valid Mo. license within 60 days of the policy inception; 8 Applicants who are separated but not legally divorced. DO NOT BIND-VEHICLES Do not bind coverage on the following vehicles: 1- Vehicles which are held for resale or rental use; 2- Vehicles with Manufactured Suggested Retail Price (MSRP) over $36,000; 4-Vehicles sixteen (16) years of age and older with physical damage coverage, except as authorized by Cornerstone National s underwriting department. Agent must contact underwriting prior to binding coverage; MO CNIC

12 5- Vehicles with high rollover experience such as, but not limited to: 15 passenger vans; Any vehicle equipped with oversized tires, lift kits, roll bars and/or winches; 6- Vehicles that are not factory manufactured or rebuilt to enhance performance such as, but Not limited to the following: Ford Mustang Saleen and Shelby models; 7- Vehicles not rated by ISO. MISCELLANEOUS PROCEDURES AND ENDORSEMENTS Named Driver Exclusion (Submit to underwriting prior to binding) Pursuant to a Named Driver Exclusion endorsement, coverage may be excluded, except a spouse, for loss arising out of the use of a vehicle by a member of the named insured s household with two exceptions: 1. A spouse may be excluded for health reasons, other than drugs or alcoholism, or 2. If the spouse has never been licensed. The endorsement must be signed by both the Named Insured and the excluded person. Endorsement CPA-070. Military Personnel Must be located in the specific geographical territory in which our company customarily operates, and meet all other underwriting requirements. Physical Impaired Drivers Applicants with a physical impairment may be submitted for consideration on an inquiry basis only. Submit all facts, including an Acord Medical Statement, about the impairment. Financial Responsibility Risks State Financial Responsibility filings will be issued through the Home Office. POLICY DISCOUNTS Driver Training Credit Credit may be allowed for youthful operators under 21 years of age who have completed an approved Driver Training Course. The applicable With Drivers Training Rating Factor and Statistical Code shall apply. Violation Free Discount A 0.95 factor Violation Free Discount will be applied to policies when the rated driver has been free from any chargeable violations for the past five years. This discount will apply to all coverages as long as the policy remains in force and there are no chargeable violations. MO CNIC

13 Transfer Discount When a policy is being rewritten from an auto company or renewed with Cornerstone a transfer discount will be applied to Liability, Medical Payments and Collision coverages. Proof of prior insurance must be submitted with the application and maintained with the agent. Refer to rate factor pages for rating. Claim Free Discount Effective May 1, 2006, a minus 0.85 factor claim free discount will be applied to new policies when the Named Insured(s) have been claim free from any accident with an amount paid over $0 for the past three years. This discount will apply to Liability, Medical Payments and Collision coverages as long as the policy remains in force and there are no chargeable claims. Renewal Claim Free Discount Prior to May 1, 2006, if a policy has been in force for at least two years, with our company, and there have been no accidents with an amount paid over $0, a minus.95 factor discount shall apply. This discount increases to 0.85 after another two years (total of four years). The discount applies to Liability, Medical Payments and Collision coverages as long as the policy remains in force and there are claim free from any accident with an amount paid over $0. Multi Car Discount The applicable Multi Car rating factor applies if more than one private passenger auto is owned by an individual, or owned jointly by two or more relatives, or resident individuals and two or more such autos are insured in the same company. The discount also applies to an auto owned by a corporation or business firm and primarily operated by the named insured(s) or family members who are residents of the same household. This discount does not apply to any policies that have only one driver eligible to be rated. Discount applies to Liability, Medical Payments, Other Than Collision and Collision coverages. Youthful Farm Operators Applicants, age 24 and under, who live on a farm and operate a vehicle that is described as Farm Use under the guidelines, are eligible for a minus.10 factor discount. Discount applies to Liability, Medical Pay, and Collision coverages. Refer to Premium Adjustment Program for rating. MO CNIC

14 Good Student Discount Unmarried operators age are eligible for a Good Student Discount when the following criteria is met: 1. The student must be enrolled full time: a. As a high school student; b. In academic courses in college or university; or c. In a vocation technical school. 2. A certified statement from a school official is presented to the Company indicating that one of the following requirements during the immediately preceding school semester has been achieved: a. Is in the upper 20% of his/her class scholastically; b. Maintains a B average, or its equivalent. If the letter grading system can not be averaged, then no grade can be below B ; c. 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. The discount will be granted to eligible operators who in the prior three years have had no at-fault accidents and had no convictions for violations. The discount will be a minus.05 factor and will be applied to Liability, Medical Payments and Collision coverage. The discount may no longer apply once the eligible operator turns 25 or has had an atfault accident or violation. If the eligible operator is removed from the policy, the discount will be deleted. Periodic re-certification of the Good Student Discount may be required. Annual Policy Discount When an applicant elects the paid-in-full annual term policy, a 0.85 discount factor will apply for all coverages. This discount is in addition to all other applicable discounts. Six-Month Policy Discount When an applicant elects the six month term policy and uses the one pay option, a discount factor will apply for all coverages. This discount is in addition to all other applicable discounts. Refer to rate factor pages for rating. Renewal Discount A discount will be applied to all coverages based on the number of years in force with Cornerstone. Refer to rate factor pages for rating. MO CNIC

15 CLASSIFICATION DETERMINATION Private Passenger automobiles owned by an individual or a corporation or owned jointly by two or more relatives who are residents in the same household shall be classified as follows: 1. Primary Classification a. Classify the automobile according to age, sex, and marital status of the operators and the use of the automobile and determine the applicable factor by using the Primary Factor Table I b. If the automobile is owned by a corporation, classify the automobile as Business Use, unless it is determined that the automobile will have a principal unmarried driver under 25 years of age. If there will be a principal young driver, use the business rate class for the young driver. 2. Secondary Classification a. Determine whether the automobile is a Single Car or part of a Multi Car Risk. b. Determine the appropriate adjusted Factor from the Primary Rating Factor using the Secondary Factor Table II. 3. Premium Adjustment Program a. Determine if the account is to receive any credits and/or surcharges from Premium Adjustment Program section, Table III. b. Apply the credit/surcharge factor to the factors from the Primary and Secondary Factor Tables. 4. Changes in Classification a. Primary Classification-Changes in classification, including addition or deletion of an operator, during the term of a policy shall be computed pro-rata. However, no policy shall be changed in term to effect a change of classification as a result of the attained age of an operator of the automobile. b. Secondary Classification-No change shall be made in term to effect a change of the Secondary Classification. PREMIUM DETERMINATION 1. Determine the appropriate rating territory based on the garaging location of the vehicle being insured. 2. Determine the base premium(s) for the coverage limits desired. 3. When CSL, BI, PD, MP, OTC, or COLL coverages are written: a. Determine the appropriate cost symbol from the RAPA Symbol Section. If the Symbol Section does not display a rating symbol for the current or prior model year version of the same vehicle, assign an interim symbol based on the cost new of the auto, using the Price/Symbol chart located in the RAPA Symbol Section. b. For OTC and COLL coverages select the model year factor according to the appropriate cost symbol and vehicle model year/age group. When model year factor from a model year are not displayed in the model year factor section, use the model year factor shown for the latest model year. MO CNIC

16 4. Determine the proper Primary Classification and Rating Factor from Table I. 5. Determine the proper Secondary Classification and Rating Factor from Table II. a. Single, or b. Multi Car Risk 6. Add or Subtract (if applicable) the appropriate factors to the risk from Premium Adjustment Program section. The credit and/or surcharges will apply to Liability, Medical Payments, and Collision. 7. Apply the appropriate classification rating factor separately to the base premium for Liability, Uninsured Motorist, Other Than Collision and Collision coverages. 8. Apply the appropriate discount for policies paid in full for six or twelve month terms. This discount applies on all coverages 9. Apply the appropriate insurance credit score factor. 10. Add the appropriate expense constant. The expense constant will apply to Liability, Medical Payments, Other Than Collision, and Collision. Premium Adjustments Additional premium charges will be made when the policy is endorsed subsequent to the inception date to reflect changes in the policy such as, but not limited to, the addition of a driver, change in the use of the vehicle, territory, coverage or limits of coverage. The additional premiums will be computed on a pro-rata basis. CLAIMS Experience Period The experience period shall be three years immediately preceding the date of the application or the preparation of the renewal. Chargeable Claims Accident at fault shall mean the applicant or other driver of applicant s vehicle is fifty percent (50%) or more at fault. Claims for which the amount of loss (not payment) is $0 shall not be considered chargeable. An accident shall be considered at-fault unless the applicant furnishes the company at the time of application, or in the case of renewal, at least 45 days prior to renewal date, with official data or affidavits, from a legally constituted public authority, or other proof satisfactory to the company that such applicant or other driver was not atfault. Note: Effective May 1, 2006, if a single occurrence results in multiple surcharges, assign a surcharge only for the one incident that generates the higher rating factor, except for violations involving alcohol or drug-related offenses. MO CNIC

17 CANCELLATION PROCEDURE If a policy is canceled by the company, the return premium shall be computed pro rata. If a policy is canceled at the request of the insured, compute the return premium at 90% of the pro rata unearned premium for the policy term (see Pro Rata Table, page 19), unless the named insured has another automobile policy remaining in force or the policy being canceled is replaced with another policy. Flat Cancellation will not be permitted. Roadside Assistance Coverage: ADDITIONAL COVERAGES AND ENDORSEMENTS Coverages of $100 per incident is available for emergency road service performed by an authorized repair service representative of CNIC or for a specified limit of emergency road service rendered by a provider other than an authorized repair service representative. Note that emergency road service is limited to a waiting period of 72 hours and no more than three incidents within 12 month period. Emergency road service includes: 1. Towing 2. Battery jump start 3. Gas delivery up to 2 gallons 4. Flat tire change 5. Locksmith service if you lock your keys inside your vehicle 6. Refer to rate pages for premiums. Extended Non-Owned Automobile Coverage: Extended Non-Owned Coverage may be issued to provide Liability, Medical Payments, and Uninsured Motorist coverage while driving non-owned vehicles. The premium shall be a $10 flat premium for a six (6) month policy. The same limits of liability as shown for the applicants personal car shall apply to this endorsement. Endorsement CPA-042. Additional Insured-Lessor: Liability coverage may be provided for Lessors as Additional Insured. Endorsement CPA-012. Leased Vehicles: When insuring a leased automobile, the vehicle must be insured in the Lessee name: 1. For Liability Coverage, the vehicle will be insured and rated the same as if the applicant were the owner. 2. For Physical Damage Coverages, the vehicle may be insured only if the applicant is responsible for damage to the vehicle (insurable interest). Rate will be the same as if the applicant were the owner. Endorsement CPA-012. Customized Vans and Customized Pickups: Stated Amount coverage for customizing equipment may be purchased for physical damage coverages. For customizing coverage to be applicable, the customized equipment must be reported to the company, the Stated Amount value established and the necessary endorsement attached to the policy. The customizing deductibles shall be the same as the vehicle deductibles and corresponding MO CNIC

18 coverages are required on the vehicle. The Customized Van Questionnaire must be completed by the insured. Photos are required. Endorsement CPA-032. Rating: Determine the appropriate symbol for the van or pickup by referring to the ISO Symbol and Identification pages. After establishing the appropriate ISO symbol, use the following procedure for rating the customized equipment. If the total value of the customized equipment is more than $500, increase the ISO symbol by one (1) according to the chart below. Use the increased symbol to rate the Physical Damage coverage. The increased symbol includes the charge for the customized equipment. Amount of Coverage Increase Symbol $ , ,501-2, ,501-3, ,501-4, ,501-5, ,501-6, ,501-7, ,501-8, ,501-9,500 9 Symbols will continue to increase by 1 for each $1,000. Note: Since there is no ISO Symbol 9, if the Symbol computes to a 9, change it to a Symbol 10. Wheels, Tires and Rims NO customization endorsement is available for special sized or performance tires, rims or wheels. Tires are considered a general wear and tear item and due to the inability to replace a single rim or wheel and match it to an existing set, we will not endorse the policy to cover these type items. Audio, Visual and Electronic Data Equipment Coverage: Coverage is available for electronic equipment that receives or transmits audio, visual or data signals such as: 1. Citizens band radios, 2. Telephones, 3. Two-way mobile radios, 4. Scanning monitor receivers, 5. Television monitor receivers, 6. Video cassette recorders, 7. Audio cassette recorders, or 8. Personal computers. Coverage is included for accessories used with the above equipment. Electronic equipment which is specifically designed solely for the reproduction of sound and is (1) permanently installed in the auto, or (2) designed to be solely operated by use of the power from the auto s electrical system and the equipment is removable from a housing unit which is permanently installed in the auto at the time of loss, along with accessories used with such equipment, is automatically covered under the policy without additional premium charge. Coverage for radar and/or laser detectors is not available. This endorsement requires Other Than Collision coverage on the vehicle in which the equipment will be used. Endorsement CPA-031. Premium rating from the table below: MO CNIC

19 Limit Per Unit $ Month Premium $ , ,001-2, ,001-3, ,001-4, ,001-5, Tapes, Records, Discs and Other Media Coverage: Coverage is available for Tapes, Records, Discs and Other Media equipment if at the time of loss they are contained in a vehicle described in the policy for which this coverage is provided. Other Than Collision coverage is required on the vehicle. Limit per vehicle is $200 and the six (6) month premium is $8 per auto. Endorsement CPA Pickup and Vans: When a pickup is used to transport a non-permanently attached camper body, or to transport a camper body or cover with no facilities for cooking and sleeping, use the same rating procedure as Customized Vans and Pickups shown on page 12. Transportation Expense: Coverage for Transportation Expense is provided in the policy on a limited basis. Coverage is up to $20 per day to a maximum of $600. Refer to rate pages for premiums. Endorsement CPA-040. Increase Limits Transportation Expense: The limit for Transportation Expense may be increased. Coverage up to $30 per day to a maximum of $900 may be purchased. Refer to rate pages for premiums. Endorsement CPA-040. Vehicle Model Year: Auto physical damage rates will be determined by the model year of the vehicle. Each model year vehicle will have its own premium. Refer to the Other Than Collision and Collision pages for the correct premium. MO CNIC

20 MISCELLANEOUS PROGRAMS Recreational Trailers and Campers: Travel Trailers and Pull Type Campers equipped for recreational occupancy and designed to be towed by or carried on a private passenger automobile, pickup, or van must be insured for both Other Than Collision and Collision coverages if we are insuring the pulling unit. A unit used as a permanent residence does not qualify for this program. Utility trailers, including horse trailers, and commercial type trailers do not qualify. Our limit of liability for physical damage coverage shall be the lesser of the actual cash value of the stolen or damaged property, the amount necessary to repair or replace the property or the stated amount. The serial number of the unit is required. A picture of the trailer/camper may be requested by underwriting. Rates are six month premiums. There will be a $25.00 minimum written premium that will apply. Use Class Code Endorsement CPA- 30. Rate as follows: Other Than Collision per $1,000 Deductibles Stated Amount $100 $200 $250 $500 $1,000 $ 0 - $50, Collision per $1,000 Stated Amount $100 Deductibles $200 $250 $500 $1,000 $ 0 - $50, Rating Procedure: Multiply the Stated Amount by the deductible coverage and round premium to nearest whole number. Example: Camper stated value of $18,000 with $100 deductible for Other Than Collision, $250 deductible of Collision. OTC: 18 x 6.69 = $120.42, rounded to premium of $ COLL: 18 x 5.23 = 94.14, rounded to premium of Total six month premium $ Note: Multi car and other discounts are not applicable in the Recreational Trailer and Camper Program. Utility Trailers: Liability and Medical Payment Coverages: When private passenger autos, pickups and vans are insured with our company for liability and medical payment coverages under a Personal Auto Policy, these coverages automatically extend to any trailer designed for use with such vehicles, without an additional premium charge and without a specific description of the trailer. Coverage is not provided for a trailer when: 1. Used for business purposes with other than a private passenger auto or owned pickup or van; MO CNIC

21 2. When no auto is owned by the insured. Physical Damage Coverage: Trailers are to be insured as separate items with separate premiums shown for each unit. The deductible applies separately to each unit. Serial number of the unit must be provided. No homemade units will be accepted. The new cost should not exceed $20,000. Attach the Coverage for Damage to Your Auto endorsement-cpa-030. Note: Coverage is not provided on an agreed value basis. A picture of the trailer may be requested by underwriting. Rates are six month premiums. There will be a $25.00 minimum written premium that will apply. Use Class Code Rate as follows: Other Than Collision per $1000 Deductibles ACV Amount $100 $200 $250 $500 $1,000 $ 0-20, Collision per $1000 Deductibles ACV Amount $100 $200 $250 $500 $1,000 $ 0-20, Note: Multi car and other discounts are not applicable in the Utility Trailer Program. In addition, both Other Than Collision and Collision are required coverages in the Utility Trailer Program. Classic Cars: A classic auto is a motor vehicle of the private passenger type, excluding vans, which is 10 years old, but not more than 25 years old and may be used on a regular basis. Consideration may be made on vehicles over 25 years old and must be submitted prior to binding. Its value is significantly higher than the average value of other autos of the same make and model year. Supporting private passenger auto business with physical damage coverage is required. Endorsement CPA-030. Rating Procedure: 1. For Bodily Injury, Property Damage, Medical Payments, and Uninsured Motorist coverages, classify and rate as a private passenger auto. 2. For Physical Damage coverages: a. An agreeable stated amount must be established prior to policy issue; b. Assign a symbol based on the stated amount from the Symbols For Pickups Rated As Private Passenger Cars on Page 18. c. Classify and rate as a private passenger auto using the base rate for the current model year. Photographs of the vehicle are required and coverage is not applicable for drivers under 25. Classic cars we have insured that attain the age of 26 model years will not be changed solely due to age. It is easy to establish inflated values for classic type vehicles. The stated amount will receive careful review by underwriting prior to acceptance. Note: Multi car and other discounts are not applicable in the Classic Car Program. MO CNIC

22 Antique Cars: An antique auto is a private passenger type vehicle which is 25 or more years old. They may be insured on a stated amount basis only. This coverage may be written if the vehicle is used for limited use only, such as parades and shows. Only vehicles with historical license plates will be accepted. Supporting private passenger auto business with physical damage coverage is required. Endorsement CPA-030. Rating Procedure: 1. The premium for liability coverage is 50% of the applicable territory base rate. Liability coverage may not be written without physical damage. 2. The six month physical damage rates are: Other Than Collision Rate per $100 of Coverage $ 50 Deductible Deductible Deductible Deductible.45 Collision $ 100 Deductible Deductible Deductible.45 Optional deductibles are not available. Our limit of liability for physical damage coverage shall be the lesser of the actual cash value of the stolen or damaged property, the amount necessary to repair or replace the property, or the stated amount limit. Photographs of the vehicle are required and coverage is not applicable for drivers under 25. Multi car and other discounts are not applicable in the Antique Car Program. Automobile Accident Death Coverage: Coverage for death to the insured resulting from an auto accident while occupying or struck by a motor vehicle. The insureds must be listed on the Endorsement to be covered. Only name insureds and rated drivers are eligible for this coverage. Refer to rate pages for premiums. Endorsement CPA-030. MO CNIC

23 RAPA Vehicle Symbol Determine the RAPA Vehicle Symbols for the vehicle being rated Physical Damage Comprehensive and Collision RAPA Symbols are two-character Symbols. Separate rating factors are assigned to each character, which are located in the rate manual. If a vehicle does not have a Symbol established, use the following procedures to determine a RAPA Vehicle Symbol: 1. If a Prior Model Year version of the vehicle has been symbolled, use the Prior Model Year's two character Symbol for the current model year. 2. If a Prior Model Year version of the vehicle has not been symbolled or does not exist, determine the two-character Symbol for the current model year by using the Price New of the current model year and Vehicle Attribute Symbol K. Liability and PIP/Medical Payments BI, PD, PIP, Med. Pay. and SL RAPA Symbols are two-character Symbols. Separate rating factors are assigned to each character, which are located in the rate manual.. If a vehicle does not have a Symbol established, use the following procedures to determine a RAPA Vehicle Symbol: 3. If a Prior Model Year version of the vehicle has been symbolled, use the Prior Model Year's two character Symbol for the current model year. 4. If a Prior Model Year version of the vehicle has not been symbolled or does not exist, determine the two-character Symbol for the current model year by using RAPA Character One Symbol K and RAPA Character Two Symbol M. MO CNIC

24 Day of Month PRO RATA CANCELLATION TABLE January February March April May June Day Day Day Day Day Day Day Day Day Day of of of of of of of of of of Year Ratio Month Year Ratio Month Year Ratio Month Year Ratio Month Year Ratio Month Day of Year Ratio MO CNIC

25 Day of Month PRO RATA CANCELLATION TABLE July August September October November December Day Day Day Day Day Day Day Day Day Day of of of of of of of of of of Year Ratio Month Year Ratio Month Year Ratio Month Year Ratio Month Year Ratio Month Day of Year Ratio MO CNIC

26 STATE OF MISSOURI CORNERSTONE NATIONAL INSURANCE COMPANY PRIVATE PASSENGER AUTOMOBILE Rates Territory Factors Zipcode Territory CSL BI PD MP UM UIM OTC COLL ETE MO CNIC

27 Zipcode Territory CSL BI PD MP UM UIM OTC COLL ETE MO CNIC