Utah Non-Standard Auto Program

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FORMS LIST

FORM#

EDITION

DATE TITLE

*PP 00 01 0698 Personal Auto Policy

*PAE-9015 0207 Personal Auto Policy – Utah Amendatory *IL 7026 0913 Policy Signatures –

*PP 13 01 1299 Coverage For Damage To Your Auto Exclusion PP 03 05 0886 Loss Payable Clause

PP 03 19 0694 Additional Insured - Lessor

PP 04 24 0105 Property Damage Uninsured Motorists Coverage – Utah PP 04 66 1010 Underinsured Motorists Coverage – Utah

*PP 05 79 0299 Personal Injury Protection Coverage – Utah PAE-9022 0505 Preferred Provider Organization Endorsement PAE 1023 0505 Named Driver Exclusion – Utah

PAE-APP 0505 Auto Insurance Application PP 01 93 0109 Amendment of Policy Provisions

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NON-STANDARD AUTO PROGRAM

(PEAK)

UNITED INSURANCE COMPANY

Provo, UT

UTAH

Private Passenger Auto Liability and Physical Damage

Underwriting Guide

Rates effective

11/01/2013 NEW business

12/10/2013 RENEWAL business

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I. UNDERWRITING RULES

The final decision as to acceptability will remain with the company.

A. Application and Binding Authority

1. Producers can bind coverage as of the TIME and DATE shown on the application, provided that:

a) The computer issued policy and application are fully completed. Specifically including name, full address, work and home phone numbers, complete VI#(s), driver’s license number(s), all household residents listed with DOB, full employment information including months employed, and “yes/no” questions answered. Second, the application is legible and signed where required by both the applicant and producer, with a full down payment.

b) All persons living in the household are listed on the application and all those that are licensed are rated as drivers,

c) The application must be completed and retained by agent. It must be available upon company request.

2. Incomplete, (i.e. missing license numbers, VIN, employment information, prior insurance information, etc.) undated (time & date) or unsigned applications; or applications received without the premium payment, will be considered unbound.

3. Applications for ineligible drivers or vehicles will be cancelled and not be eligible for reinstatement.

4. Applications with false or misleading information by applicant will be cancelled and not be eligible for reinstatement.

5. Coverage(s) may not be bound in excess of the limits, including deductible, shown in this manual.

B. Unacceptable Drivers

1. Drivers with a foreign drivers license; unless a copy of the foreign driver license is submitted to the company at time of application and the foreign license surcharge is applied.

2.

3. Drivers who are not residents of Utah, or Military not stationed in Utah.Principal operators under age eighteen (18) unless parents/guardians sign the application and are listed as drivers.Entertainers, professional athletes, or other nationally or locally well-known individuals.

4. Drivers with a license suspended/denied for medical reasons.Drivers with more than two (2) drug or alcohol related convictions in the past three (3) years. 5. Drivers with the following in the previous three (3) years: a) More than 20 driver

points, (b) More than two (2) at-fault accidents.

6. Drivers with a violation for the following: reckless homicide, manslaughter or motor vehicle felony, disregarding a police officer, or attempting to elude or flee the police.

7. Drivers with an unlicensed spouse unless a completed signed unlicensed resident agreement is submitted to the company.Named insured/driver or spouse who is incarcerated.

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Vehicles exceeding one (1) ton load capacity.2. Vehicles garaged outside Utah. 3. Vehicles valued more than $80,000.

1. Vehicles not titled in the name of the applicant unless a long term (more than six (6) months) leased vehicle. Copy of lease agreement must be submitted with application.

2. Vehicles built, designed or used for prearranged speed contests.

3. Emergency vehicles, taxi cabs, limousines, general livery or vehicles rented or lent to other operators on a regular basis.

4. Vehicles used for messenger or delivery service.

5. Vehicles used to transport passengers, such as: day camps, nursery schools, day care centers, convalescent homes, churches, etc.

6. Dune buggies, golf carts and off road type vehicles, or any type not licensed for highway use.

7. Any antique, classic, custom, electric, Kits, limited editions (low production), race, replicas, or show cars.

8. Vehicles which have been substantially modified in appearance or mechanically altered. (i.e., chopped, lowered, lifted, turbo charged)

9. Vehicles with modified suspension, such as: lowering or lift kits, snow plows or any which have been modified for off road use.

10. Recreational Vehicles (RV), motorcycles, ATVs, open air jeeps and any vehicle with more or less than four (4) wheels.

11. Any of the following: Clenet, DeLoreans, Pantera, Stutz, Zimmer, or any unique or custom built vehicles.

12. Custom vans without photographs. (Van conversions are SUBMIT – DO NOT BIND). See E:3 listed below.

13. Physical damage for any vehicle with preexisting damage (other than normal wear and tear). Please submit photos of damage.

D. Additional Physical Damage Rules

1. Inspection forms must be completed and retained by agent on vehicles with physical damage if there is a lapse in prior coverage or no prior coverage to maintain physical damage endorsement. Photos (front driver corner, rear passenger corner) must also be submitted if the Physical Damage endorsement is applied to a pre-existing vehicle in midterm.

2. Physical Damage may not be written without Liability. 3. Comprehensive may not be written without collision.

4. Corvettes and Porsches are surcharged 50% (multiply by 1.5).

5. ISO does not publish symbols for certain pickups and vans. For those not listed, use ISO Price/Symbol Chart or call the company.

6. Customized Vans – Increase one symbol for each $1,000 value of customized equipment. Follow submit rules listed below.

E. Submit for Approval – Do Not Bind

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2. Any driver under age 21 with a drug or alcohol violation.

3. Van Conversions: Submit with the following: a) the cost of conversion. An appraisal may also be required, b) Complete description and list of equipment, such as: carpeting, interior lights, captain chairs, custom seating, couch, cabinet and sink, height extending roof, side windows, running boards, ladder, wheels, tires, custom paint, etc. (All equipment must be listed and included in the value of the van to be covered), c) Photographs of both the interior and exterior.

4. Gray Market (self-imported) vehicles.

F. Special Rules

There will be times during quoting, issuing, and servicing policies when certain things cannot be done. Usually pop-up windows in the system will guide you as to what to do. A list of procedures is given below.

1. Full coverage cannot be added to an existing vehicle without photos (front driver side corner and rear passenger side corner).

2. Exceptions to normal underwriting may be obtained from the underwriting department if appropriate justification is demonstrated by the Agent.

3. Deleted points. Consideration may be given by the underwriting department. Please call.

4. Exclusions. The Underwriter’s positions remains that if a person resides in the insured household, they must be rated or excluded. We may allow driver exclusions in the situations below.

a) Licensed drivers living in the same household (other than student roommates) or non-residents who have driven the insured’s vehicle(s) The following is required:

 The exclusion form signed by the named insured and the excluded driver

 Proof of other coverage for the excluded driver must be retained by agent

 List the excluded person under “residents” and choose “excluded“ in the DL# field.



b) Excluded roomates – the exclusion(s) only needs to be signed by the named insured

c) Spouses with an invalid license may be excluded. Their drivers license# is required.

5. a. Unlicensed residents. If a resident of driving age has never been licensed, the risk is acceptable. A completed unlicensed resident agreement must be submitted to the company.

6. UU Mail. Company underwriting requests will generally be sent via UU Mail and the agency must make diligent efforts to answer all requests by the indicated pend date. Contact the underwriting department if assistance is needed with this or any other system utility.

G. Policy Term

All policies will be issued for six a (6) month term. All rates shown are for six (6) months.

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H. 5th Car Policies – Risks with more than 4 vehicles must be written as 2 policies. Write all the drivers and 3 or 4 vehicles on the first policy and write the remaining vehicle(s) and just the named insured (and spouse if applicable) on the second policy. In order to get the multi-car discount, more than one vehicle must be listed on each policy. Only one application is needed and we match all discounts and surcharges on both policies. However, violation points are only charged on one policy.

I. Broker of Record Change – When we receive a broker of record change request, we send a UU Note to the current agent notifying them of the request. We wait 5 business days for them to take action then save the client’s information in the database of the agent requesting the change. The new agent can then issue the policy as new business. A $25 fee is assessed to cancel the old policy and move money to the new policy.

J. Fees

The following fees will be charged in addition to policy premiums. (Fees are fully earned when we issue the policy or endorsement.)

1. Installment Fee (Each payment) $ 6.00 (Policies submitted with payment in full but are issued higher

than quoted will also be subject to this fee.)

2. Installment Fee- Sure Pay $ 3.00 3. Re-instatement fee $10.00 4. Returned Check Charge $20.00 5. Cancellation Fee (if midterm and requested by insured) $25.00

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II. COVERAGE

A. Liability

Liability limits are available up to $100/300/50. All liability limits MUST be the SAME on ALL vehicles of a multi-car risk.

B. Personal Injury Protection - (PIP)

– Use Form PP 05 79

Basic PIP coverage is included in the Liability premium. Limited PIP coverage, excluding loss of gross income benefits, is available for a reduced premium. To reject loss of gross income benefits, the exclusion on the application must be signed by the named insured.

C. Uninsured/Underinsured Motorists –

Use Form PP 04 66

Uninsured and Underinsured motorists coverage at the basic limit of 25/65 and 10/20 respectively is automatically included on all liability policies. If the insured elects to reject the coverage, a properly signed rejection MUST be on the application or the appropriate premium will be charged. UM/UIM must be written at the same limits as BI/PD unless a rejection of higher limits is signed. See the rate pages for the premium.

D. Uninsured Motorists Property Damage –

Use Form PP 04 24

Uninsured Motorists Property Damage coverage must be offered to an applicant for any private passenger rated vehicle that is being insured for liability coverage only. The offer need be made only once and is not required for subsequent renewals. If the insured elects to reject the coverage, a properly signed rejection MUST be on the application or the appropriate premium will be charged. See the rate pages for the premium.

E. Under-Insured Motorists Property Damage

Under-Insured Motorist Property Damage with a $3500 limit, is AUTOMATICALLY included with the Liability coverage on ALL policies at NO ADDITIONAL PREMIUM.

F. Physical Damage

In determining the premium for physical damage coverage, ISO symbols should be used. If physical damage is added to the policy during the term, the vehicle MUST be inspected by the agent and photos MUST be submitted. If physical damage coverage is requested on a vehicle during the policy term with a current value in excess of $50,000 the comprehensive and collision premium will be surcharged 200%.

G. Towing

Towing coverage for an additional premium (see H below) 25 miles is available for any vehicle which ALSO carries Physical Damage coverage.

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H. Emergency Road Service

Emergency Road Service coverage of 10 miles, one (1) occurrence per policy term, is AUTOMATICALLY included with EVERY policy, at NO ADDITIONAL PREMIUM.

I. Rental Reimbursement

Rental reimbursement coverage to rent a substitute vehicle, not exceeding $30 per day up to a maximum limit of $600 or $50 per day up to a maximum of $1,000, is available, if there is a limit shown on the Declaration page and the additional premium is charged.

J. Coverage Transferred to a Rental Car

If the vehicle is rented as a replacement for a vehicle involved in a covered loss, liability, comprehensive and collision coverage transfers to the rental car.

 Full coverage does not transfer to a car rented for pleasure use.

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III. CLASSIFICATION & RATING

A. Driver Classification

1. Drivers who are single, widowed, separated, or divorced should be rated as single. 2. All drivers must be listed and rated for on the application.

3. An applicant, whose birthday is within 30 days of the effective date of the policy, may be rated as the older age.

B. Points

A point surcharge will be applied according to the point schedule chart. Only violations with an OCCURRENCE DATE during the prior 35 months are chargeable. The point surcharge is applied to BI/PD, PIP, and Phys Dam. On new business, all accidents are charged unless proof of no fault is submitted with application. For single car risks, accumulate the points for each driver for the last 35 mos. and use the highest rated driver to determine the rating group. For multiple car risks, use the record of the highest rated driver for the highest rated vehicle. If there are more cars than drivers, additional cars will be rated with the same class as the lowest rated driver. Maximum of twenty (20) points per individual are allowable in this program.

POINT ASSIGNMENTS 1st add’l

Major Violations. 8 8

Careless driving, Eluding a police officer, Felony with motor vehicle,

Hit and run or failure to stop, Negligent homicide, Racing or speed Contest,

Reckless driving, Driving while revoked or suspended, Failure to control, Suspended or Invalid Drivers License

Unacceptable driver

Accidents 6 8

Chargeable (at-Fault) accident

Alcohol or Drug Related Violations 3 8 Blood/breath test, DUI, DWI, or OWI, All other drug or

alcohol related offenses;

All Other Minor Violations 2 2 Special Underwriting Surcharges

 Unlicensed Resident driver or Foreign/International driver’s license: 6 points assigned to drivers on the policy with a foreign license. Unverifiable driving record: 12 points will be assigned to each driver for which the company cannot obtain a current MVR.

PLEASE NOTE: If United Underwriters pays a claim and the driver of the claim is deleted, a permissive driver claim surcharge is added to the named insured.

C. Motor Vehicle Reports

1.

There is no charge for MVR’s pulled in our system as long as 75% of the reports end up on a

policy that is issued and premium is paid. Any reports pulled on business that is below a 75%

success

rate

will

be

charged

to

the

agency.

$9.50/report

pulled.

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C. Business Use

1. Business or Individually owned vehicles used for business or light commercial purposes may be written under this program. The classes of business include, but are not limited to: sales representatives, janitorial service and contractors (i.e., carpenters, electricians, plumbers, etc.) Vehicle must be driven by the insured and not by employees.

2.

Vehicles regularly or frequently used beyond a radius of 50 miles are not eligible

.

3. Vehicles visiting three (3) or more jobsites in a day are ineligible.

4. Vehicles titled and licensed in the corporation/business name are ineligible.

5. Vehicles used for delivery, advertising, livery, or transporting passengers/clients are not eligible.

6. Rating: Multiply by 1.25 surcharge for business use.

7. Call the underwriting department for approval on all business exceptions.

8. Important note: business use is excluded from all policies unless it is specifically rated for on the declarations for the specified vehicle(s).

D. Premium Rounding

Each premium calculation (discounts, up rates, cancellations, etc.) will be rounded to the nearest whole dollar. ($.50 or more, round to the next highest dollar).

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E. ISO Price/Symbol Chart

When no symbol is available, use the chart below. Note: When rating a new vehicle that has not been completely redesigned, before the new model year symbols are published, use the appropriate symbol from the previous year.

SYMBOL SYMBOL COST NEW/ 1990 & 1989 &

VEHICLE VALUE NEWER YEARS PRIOR YEARS $ 0 - 6,500 1 1-6 6,501 - 8,000 2 7 8,001 - 9,000 3 8 9,001 - 10,000 4 8 10,001 - 11,250 5 10 11,251 - 12,500 6 10 12,501 - 13,750 7 11 13,751 - 15,000 8 11 15,001 - 16,250 10 12 16,251 - 17,500 11 12 17,501 - 18,750 12 13 18,751 - 20,000 13 13 20,001 - 22,000 14 14 22,001 - 24,000 15 14 24,001 - 26,000 16 15 26,001 - 28,000 17 15 28,001 - 30,000 18 16 30,001 - 33,000 19 16 33,001 - 36,000 20 17 36,001 - 40,000 21 17 40,001 - 45,000 22 18 45,001 - 50,000 23 19 50,001 - 60,000 24 19 60,001 - 70,000 25 20 70,001 - 80,000 26 20 80,001 & Above 27 20

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F. Additional/Special Equipment

Additional and/or special equipment on vehicles will only be covered if, Physical Damage Coverage is purchased, and the additional and/or special equipment is listed on the policy and an additional premium is paid on the cost new of the equipment. Additional and/or special equipment includes but is not limited to:

- CB radios, antennas and accessories and telephone PERMANENTLY installed.

- Camper shells and tops.

- Rebuilt body work and customization such as custom paint, smoke glass, mirror, additional headlamps, roll bars, decals, special tires, chrome, reverse chrome, alloy, aluminum, magnesium wheels or wheel covers.

- Customized or rebuilt engine work (chrome engine accessories, tachometers or pressure gauges, etc.).

- Any radio, CD player, tape players, sound or video receiving equipment, CB radio, telephone, radar detector or scanner NOT permanently installed is NOT covered.

- Special Equipment Rates:

1. Standard (stereos, wheels, etc.) $10.00 per $100 value. Limited to $2,000 in value.

2. Trailers, campers, shells; $1.00 per $100 value. Limited to $10,000 in value.

G. Financial Responsibility Filings (SR22)

Financial Responsibility (SR-22) Filings will only be made available for the

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H. Vehicle Surcharges

EXTRA HAZARD VEHICLE: Certain makes and models of vehicles represent a greater Liability Hazard. The following vehicles will receive a Liability surcharge of: 15% Acura – NXS Audi –R8, R8 Spyder, Dodge -, Viper Mercedes -, 500 SL, 600 SL. Mitsubishi - Lancer Evolution Nissan - GT-R,

Subaru - WRX

Aston Martin, Austin Healy, Bentley, DeLoreon, Ferrari, Lamborghini, Lancia, Lotus, Maserati, Shelby, Rolls Royce, and many other sports cars are ineligible for this program.

UTAH VEHICLE EXPERIENCE MODIFICATION: Certain Models will receive an additional liability surcharge (BI/PD/PIP) as follow:

MODEL BI/PD PIP Chevrolet Suburban 1.05 1.10 Chevrolet Trailblazer 1.10 1.05 Chrysler Sebring 1.10 1.00 Dodge Grand Caravan 1.00 1.10 Dodge Stratus 1.15 1.00 Ford Explorer 1.10 1.05 Ford Mustang 1.05 1.05 GMC Yukon XL 1.05 1.10 Honda Accord 1.05 1.05 Honda Civic 1.00 1.10 Jeep Cherokee 1.05 1.00 Mistubishi Galant 1.05 1.00 Nissan Maxima 1.05 1.05 Nissan Sentra 1.10 1.15 Subaru Legacy 1.05 1.05 Toyota 4-Runner 1.05 1.05 Toyota Sienna 1.05 1.05 Volkwagen Jetta 1.05 1.10

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I. Discounts/Surcharges

Accountable Driver Surcharge:

A surcharge will be applied if applicant has violated financial responsibility laws of the State during a six (6) month period preceding our policy inception date. An “Inadvertent lapse” of less than 30 days, as defined in the Utah Insurance Code (R590-128) is exempt from the surcharges listed below. Proof of compliance must be submitted with all applications.

Up to a 10 day lapse in financial responsibility is allowed before surcharge is applied.

Accountable Surcharge A

For an 11-30 days lapse a 10% surcharge is applied. Surcharge is waived after 6 months of continuous coverage.

Accountable Surcharge B

More than 30 day lapse a 20% surcharge is applied.

Acceptable proof of compliance consists of one or more of the following: A copy of prior insurance policy showing six (6) months continuous coverage; or, a copy of vehicle registration showing that applicant has just purchased vehicle; or, other documentation showing that a driver has not had a need for auto insurance, i.e. Peace Corps Volunteers, military personnel, missionaries, etc. If the insured is claiming new purchase, a copy of the title, the new registration (both pages necessary), or the bill of sale from a dealer must be submitted with the application.

Long Commute: (over 15 miles). A 15% surcharge applies to liability and physical damage premiums when a vehicle is driven to work or school 15 miles or more each way, three (3) days per week or more.

Inexperienced Operator: If the named insured has not had at least six (6) months of continuous driving experience a 10% surcharge applies. This surcharge is not applicable to non-owned policy situations. Surcharge is waived after 6 months of continuous coverage.

Multi-Car Discount: If more than one vehicle is insured under the same policy, up to a 21% discount will apply. All vehicles must be titled to the named insured or resident spouse to qualify.

Renewal Discount: The following renewal discounts will be given to those risks that have the Accountable Driver Surcharge B, with an ‘at fault’ claim-free record and insured continuously through United Insurance Company during the periods indicated:

10% discount for 6 months of ‘at fault’ loss free coverage

Accountable driver surcharge waived after 12 months of ‘at fault’ loss free coverage

5% discount for twelve (12) months ‘at fault’ loss free coverage if no accountable surcharge has been assessed.

Paid In Full Discount: A 10% Discount will be applied when the insured pays the six (6) months term premium in full at inception. Note: Premium Financing is NOT acceptable.

Permit Driver Discount: A 40% discount is available to teenage drivers listed on their parents’ policy who have a valid permit.

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Out-Of-State License Surcharge: A surcharge will be applied to all drivers who have a valid license from any U.S. state outside of Utah.

Foreign License Surcharge: A surcharge applies to all drivers with a valid license from anywhere outside of the U.S. A copy of the foreign license is required.

Sure Pay Discount: A 10% discount applies when insured authorizes automatic payment of premiums via checking account withdrawal. This discount does not apply to Paid In Full policies.

Financial Stability Discounts: a Choicepoint “Attract” insurance score will be obtained on all new applications to determine the level of premium discount that is warranted, if any, from the base rate. See table on “Base Premiums” page for details. Insurance scores are not rechecked upon renewal except at policyholder’s request. If the insurance score is better than the original score, then the appropriate additional discount will be given

Defensive Driving Course Discount: A 5% discount applies to all vehicles principally operated by someone who is 55 years or older and has completed a defensive driving course. A copy of the certificate of completion must accompany the application.

Preferred Provider (Physical Damage) – Use Form PAE-9022

A 5% discount will be applied to the physical damage premiums if the insured chooses to add the Preferred Provider Organization (PPO) endorsement to his/her policy. The insured must sign the PPO acknowledgement on the application, confirming that he/she understands the terms and conditions contained therein.

Increased Prior limits: A 10% discount applies to an insured who can provide documentation that their prior limits of liability exceed the Statutory minimum of 25/65/15.

*Defensive Driver, Preferred Provider, Sure-Pay and Paid-in-Full discounts apply in addition, to the combinations shown below.

Discounts/Surcharge Combinations

Multi-car/Acctble. Driver Sur. A 8% credit Multi-car/Acctble. Driver Sur. B 1% credit

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J. Zip Codes/Territories

Use zip code territory in which vehicle is PRINCIPALLY GARAGED. If mailing address or residence address zip code is different from garaging address zip code, provide an explanation in agent remarks on the application. Vehicle garaged out of state are unacceptable.

Zip Code Terr Zip Code Terr Zip Code Terr Zip Code Terr

84001-02 3 84066 3 84158 8 84651 11 84003-05 6 84067 4 84159-189 1 84652 3 84006 1 ₈₄₀₆₈ ₉ 84190,199 7 84653 11 84007-08 3 84069 3 84201, 244 5 84654 3 84010-11 4 84070 1 84301-303 3 84655 11 84012 3 84071-74 3 84304-306 12 84656-657 3 84013 6 84075 4 84307 3 84660 11 84014-16 4 84076-83 3 84308 12 84662 3 84017-19 3 84084 1 84309 3 84663-664 11 84020 1 84085 3 84310 5 84665-669 3 84021-24 3 84086 12 84311-312 12 84701-721 3 84025 4 84087 4 84313 3 84722 9 84026-27 3 84088-96 1 84314 12 84723-724 3 84028 12 84097 6 84315 5 84725 9 84029-36 3 84098 9 84316 12 84726-732 3 84037 4 84101 2 84317 5 84733 9 84038 12 84102-103 2 84318-323 12 84734-736 3 84039 3 84104 2 84324 3 84737-738 9 84040-41 4 84105-107 7 84325-328 12 84739-744 3 84042-43 6 84108-109 8 84329 3 84745-746 9 84044 1 84110 1 84330-335 12 84747-756 3 84045 6 84111 2 84336-337 3 84757 9 84046 3 84112-113 8 84338-339 12 84758-762 3 84047 1 84114-116 2 84340 3 84763 9 84049-53 3 84117 8 84341 12 84764 3 84054 4 84118-120 7 84400-415 5 84765 9 84055 3 84121 8 84501-542 3 84766 3 84056 4 84122 1 84601 10 84767 9 84057-59 6 84123 7 84602-606 10 84770-771 9 84060 9 84124 8 84620-624 3 84772-773 9

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84061 3 84125-127 1 84626 11 84774 3

84062 6 84128 7 84627-632 3 84775-777 9

84063 3 84129-131 1 84633 11 84778-784 3

84064 12 84132 8 84634-650 3 84790-791 9

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IV. POLICY ADMINISTRATION

A. Up Rates

When a policy is up rated, but still meets the appropriate underwriting criteria, the policy will be issued at the corrected premium. A revised declaration page will be sent. In some cases, the up rate may cause an immediate cancellation for non-payment. These policies will be reinstated when the additional monies are received.

B. Policy Changes & Endorsements

1. Policies will not be re-rated during their term unless:

a) Driver points are incorrect as verified by Motor Vehicle Report. Change will be made on the effective date of the policy, or the date the driver was added to the policy. Rates in effect at the inception date of the current policy term will be used. b) Coverages, Drivers or Vehicles are added, or there is a change in marital status.

Rates in effect at the inception date of the current policy term will be used.

2. Policy transactions generating less than $10.00 will be waived. These transactions will not be billed or money returned unless requested by the insured.

C. Cancellations

1. All requests for cancellation must be made in writing.

2. No Flat cancellations or back dating of cancellations without proper and required documentation.

3. All cancellations will be computed pro-rata.

4. Cancellations at "Insured's Request" require the return of the original policy, a signed lost policy release (LPR), or named insured's dated and signed request. Cancellation will be effective the date requested, provided the company receives the request within 15 days; otherwise it will be effective the date received, subject to any advance notification required by third parties of interest. All return premiums will be sent to the insured. There will be a $25.00 fee assessed for cancellation in mid-term of the policy.

D. Reinstatements

1. If the reason for cancellation has been satisfied before the effective date of cancellation a policy may, at the option of the company, be reinstated without a lapse.

2. After the effective date of cancellation, a policy may be reinstated with a lapse in coverage for the remaining policy period at the option of the company.

3. Prior to rejecting payments the system will allow up to as many as 40 days of combined lapse during a six (6) month period in standard and a twelve (12) month period in preferred. Payments may be accepted by underwriting past the 40 day limit. Please contact underwriting for approval.

4. The system will produce a reinstatement offer giving an expiration date from 8-15 days after the day the offer is mailed depending on previous lapses. (see history)

5. If there have been excessive lapses, instead of a reinstatement offer, a final cancellation is sent and noted in the history.

6. When accepting any payment, create a receipt in the system to see if payment is acceptable or not.

7. In addition to lapses, underwriting reasons can affect the acceptance of payments. Remember to check for policy flags and underwriting notes.

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E. Renewals

1. Approximately 45 days prior to expiration, a renewal notice will be sent to the insured. This will serve as an offer to renew the policy at the indicated premium.

2. Renewal information and payment of the premium must be received before expiration to be eligible for the Renewal Claim-Free Discount.

F.

Non-Renewals, Cancellations

1. Renew to Standard: If this flag is marked in the system, then the policy is ineligible for preferred, but will be automatically renewed in a standard program.

2. Non-renew-Do not reinstate: If this flag is marked, the policy is unacceptable for any United Underwriters program and will be non-renewed with little if any chance of re-consideration. Late payments cannot be accepted.

3. Non-renew and Do not reinstate if UW info is not received: If this flag is marked, the risk would more than likely be acceptable in our program and eligible for

reinstatement, however, due to a lack of response to underwriting or missing

information, this policy will be non-renewed unless requested information is received. Late payments are accepted until the policy reaches the end of the term on existing business or the cancellation date for new business.

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6 MOS BASE PREMIUMS

Liability & PIP

BI 25/65 $75.00 PD 15 $115.00 PIP 3000 $40.00 REDUCED PIP* $34.50 EXPENSE CONSTANT $25.00 *Excludes Income Loss Benefits/

Uninsured & Underinsured

UMBI 25/65 $11.00 UIMBI 10/20 $12.00 UMPD 3500 $ 8.50

Physical Damage

COLL $115.00 COMP $19.00

Towing

$50 per disablement

TOW $8.00

Rental Reimbursement

$20 per day, $600 max. RENT $28.00

Insurance Score Tier Factors

(Applies to all base premiums except towing and rental) TIER Discount Factor Attract score 1 35% (.65) 800-997 2 28% (.72) 732-799 3 25% (.75) 701-731 4 21% (.79) 673-700 5 17% (.83) 649-672 6 13% (.87) 626-648 7 10% (.90) 601-625 8 7% (.93) 572-600 9 4% (.96) 530-571 10 Base (1.00) 220-529

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TERRITORIAL RELATIVITY FACTORS

Liability & PIP

TERR. FACTOR 1 1.55 2 1.60 3 1.00 4 1.30 5 1.30 6 1.40 7 1.53 8 1.44 9 1.14 10 1.30 11 1.32 12 1.00

Physical Damage

TERR. FACTOR 1 1.10 2 1.12 3 1.19 4 0.90 5 0.96 6 0.98 7 1.10 8 1.00 9 1.08 10 1.02 11 0.95 12 1.05 TERRITORIES 3,4,6,9,10,11,12 1,2,5,7,8 UNINSURED MOTORIST BODILY INJURY 1.00 1.50 UNDER-INSURED MOTORIST BODILY INJURY 1.00 1.50 UNINSURED MOTORIST PROPERTY DAMAGE 1.00 1.50

(24)

RELATIVITY FACTORS

Liability & PIP

Driver Class

MARRIED MALES SINGLE MALES MARRIED FEMALES SINGLE FEMALES

AGE FACTOR AGE

ALONE FACTOR

WITH PARENTS

FACTOR AGE FACTOR AGE

ALONE FACTOR WITH PARENTS FACTOR 15 2.95 15 4.00 3.60 15 2.20 15 2.98 2.73 16 * 16 * * 16 * 16 * * 17 2.80 17 3.95 3.55 17 * 17 * * 18 2.70 18 3.80 3.40 18 2.00 18 2.80 2.62 19 1.85 19 2.90 2.70 19 1.40 19 2.33 2.20 20 1.75 20 2.70 2.59 20 1.30 20 2.16 2.00 21 1.50 21 2.10 21 1.21 21 1.69 22 1.45 22 1.85 22 * 22 1.55 23 1.40 23 1.70 23 1.12 23 1.40 24 1.33 24 1.60 24 * 24 1.36 25 1.27 25 1.45 25 1.09 25 1.33 26 1.25 26 1.44 26 1.09 26 1.33 27 1.23 27 1.43 27 1.09 27 1.31 28 1.21 28 1.42 28 1.09 28 1.31 29 1.19 29 1.41 29 1.08 29 1.29 30 1.14 30 1.38 30 1.08 30 1.29 31 1.14 31 1.37 31 1.07 31 1.28 32 1.13 32 1.36 32 1.07 32 1.28 33 1.12 33 1.35 33 1.06 33 1.27 34 1.11 34 1.33 34 1.06 34 1.27 35 1.09 35 1.30 35 1.04 35 1.26 36 1.09 36 1.28 36 1.04 36 1.26 37 1.09 37 1.26 37 1.04 37 1.25 38 1.08 38 1.23 38 1.04 38 1.25 39 1.08 39 1.20 39 1.03 39 *1.24 40 1.07 40 1.15 40 1.03 40 1.24 41 1.07 41 1.14 41 1.02 41 1.23 42 1.06 42 1.13 42 1.02 42 1.23 43 1.06 43 1.12 43 1.02 43 1.22 44 1.05 44 1.11 44 1.01 44 1.22 45 1.04 45 1.09 45 1.01 45 1.21 46 1.04 46 1.09 46 1.00 46 1.21 47 1.04 47 1.08 47 * 47 1.20 48 1.03 48 1.07 48 * 48 1.20 49 1.03 49 1.06 49 * 49 1.19 50 1.02 50 1.05 50 * 50 1.09 51 1.02 51 1.05 51 * 51 1.09 52 1.01 52 1.05 52 * 52 1.08 53 1.01 53 1.05 53 * 53 1.07

(25)

RELATIVITY FACTORS

Liability & PIP

Driver Class - Continued

ALONE FACTOR WITH PARENTS FACTOR 54 1.00 54 1.05 54 1.00 54 1.06 55 * 55 * 55 * 55 *1.05 56 * 56 * 56 * 56 1.05 57 * 57 * 57 * 57 1.05 58 1.02 58 1.10 58 * 58 1.05 59 1.04 59 1.10 59 * 59 1.05 60 1.05 60 1.25 60 1.01 60 1.06 61 1.06 61 1.25 61 1.02 61 1.07 62 *1.07 62 1.30 62 1.03 62 1.08 63 1.08 63 130 63 1.03 63 1.09 64 1.09 64 1.33 64 1.04 64 1.10 65 1.13 65 1.35 65 1.07 65 1.11 66 1.15 66 1.37 66 *1.10 66 1.12 67 1.17 67 1.40 67 1.13 67 1.13 68 1.19 68 1.44 68 1.16 68 1.15 69 1.21 69 1.50 69 1.19 69 1.19 70 1.28 70 1.1.56 70 1.26 70 1.25 71 *1.31 71 1.60 71 1.30 71 1.30 72 1.34 72 1.65 72 1.34 72 *1.35 73 1.37 73 1.70 73 1.38 73 *1.40 74 1.41 74 1.75 74 1.42 74 1.45 75 1.45 75 1.80 75 1.46 75 1.50 76 1.49 76 1.85 76 1.50 76 1.50 77 1.53 77 1.90 77 1.54 77 1.50 78 *1.57 78 1.95 78 1.58 78 1.55 79 1.61 79 2.00 79 1.62 79 1.55 80 1.65 80 2.05 80 1.66 80 1.55 81 1.69 81 2.10 81 1.70 81 1.60 82 1.73 82 2.10 82 1.74 82 1.60 83 1.77 83 2.15 83 1.78 83 1.60 84 1.81 84 2.15 84 1.82 84 1.65 85 1.85 85 2.20 85 1.86 85 1.70 86 1.89 86 * 86 1.90 86 1.70 87 1.94 87 2.25 87 1.94 87 1.70 88 1.98 88 2.25 88 1.98 88 1.75 89 2.02 89 2.30 89 2.02 89 1.75 90 2.10 90 2.30 90 2.06 90 1.80

(26)

RELATIVITY FACTORS

Physical Damage

Driver Class

ALONE FACTOR WITH PARENTS FACTOR 15 2.50 15 3.05 2.77 15 2.20 15 2.70 2.45 16 * 16 * * 16 * 16 * * 17 2.45 17 * * 17 2.15 17 * * 18 2.35 18 2.94 2.67 18 2.05 18 2.53 2.30 19 2.20 19 2.53 2.30 19 1.50 19 2.15 1.95 20 2.00 20 2.38 2.18 20 * 20 1.95 1.80 21 1.60 21 2.05 21 1.33 21 1.65 22 1.50 22 1.87 22 * 22 * 23 1.40 23 1.75 23 1.18 23 1.40 24 1.35 24 1.60 24 * 24 * 25 1.30 25 1.45 25 1.10 25 1.35 26 * 26 * 26 * 26 * 27 1.25 27 * 27 * 27 * 28 * 28 * 28 * 28 * 29 1.20 29 * 29 * 29 * 30 1.07 30 1.38 30 1.07 30 1.30 31 * 31 * 31 * 31 * 32 * 32 * 32 * 32 * 33 * 33 * 33 * 33 * 34 * 34 * 34 * 34 * 35 1.04 35 1.20 35 * 35 * 36 * 36 * 36 * 36 * 37 * 37 * 37 * 37 * 38 * 38 * 38 * 38 * 39 * 39 * 39 * 39 * 40 1.00 40 1.13 40 1.03 40 1.20 41 * 41 * 41 * 41 * 42 * 42 * 42 * 42 * 43 * 43 * 43 * 43 * 44 * 44 * 44 * 44 * 45 * 45 1.05 45 * 45 * 46 * 46 * 46 * 46 * 47 * 47 * 47 * 47 * 48 * 48 * 48 * 48 * 49 * 49 * 49 * 49 * 50 * 50 1.05 50 1.00 50 1.05 51 * 51 * 51 * 51 * 52 * 52 * 52 * 52 * 53 * 53 * 53 * 53 *

(27)

RELATIVITY FACTORS

Physical Damage

DRIVER CLASS - Continued

ALONE FACTOR WITH PARENTS FACTOR 54 * 54 * 54 * 54 * 55 * 55 * 55 * 55 * 56 * 56 * 56 * 56 * 57 * 57 * 57 * 57 * 58 * 58 * 58 * 58 * 59 * 59 * 59 * 59 * 60 1.05 60 1.15 60 * 60 1.05 61 * 61 * 61 * 61 * 62 * 62 * 62 * 62 * 63 * 63 * 63 * 63 * 64 * 64 * 64 * 64 * 65 * 65 * 65 * 65 * 66 * 66 * 66 * 66 * 67 * 67 * 67 * 67 * 68 * 68 * 68 * 68 * 69 * 69 * 69 * 69 * 70 1.20 70 1.40 70 1.20 70 1.25 71 * 71 * 71 * 71 * 72 * 72 * 72 * 72 * 73 * 73 * 73 * 73 * 74 * 74 * 74 * 74 * 75 1.40 75 1.64 75 1.40 75 1.40 76 * 76 * 76 * 76 * 77 * 77 * 77 * 77 * 78 * 78 * 78 * 78 * 79 * 79 * 79 * 79 * 80 1.50 80 1.80 80 1.50 80 1.60 81 * 81 * 81 * 81 * 82 * 82 * 82 * 82 * 83 * 83 * 83 * 83 * 84 * 84 * 84 * 84 * 85 1.65 85 1.90 85 1.60 85 1.75 86 * 86 * 86 * 86 * 87 * 87 * 87 * 87 * 88 * 88 * 88 * 88 * 89 * 89 * 89 * 89 * 90 * 90 * 90 * 90 *

(28)

INCREASED LIMIT FACTORS

BODILY INJURY FACTOR PROPERTY DAMAGE FACTOR

25/65 1.00 15,000 1.00

50/100 1.22 25,000 1.05

100/300 1.47 50,000 1.15

UNINSURED MOTORISTS

INCREASED LIMITS

BODILY INJURY FACTOR 25/65 1.00 50/100 1.65 100/300 2.25

Underinsured Motorists

Increased Limits

BODILY INJURY FACTOR 10/20 1.00 25/65 1.50 50/100 2.00 100/300 3.00

POINT FACTORS

LIABILITY & PIP PHYSICAL DAMAGE

POINTS FACTOR FACTOR

0-1 1.00 1.00 2-3 1.05 1.13 4-5 1.15 1.20 6-7 1.22 1.27 8-9 1.33 1.40 10-11 1.46 1.48 12-13 1.53 1.55 14-15 1.69 1.65 16-17 1.97 1.82 18-19 2.08 1.98 20 2.30 2.25 21+ 2.50 2.45

(29)

VEHICLE AGE FACTORS

PHYSICAL DAMAGE LIABILITY

Age Factors Age Factor

0 1.48 0 1.03 1 1.43 1 1.03 2 1.38 2 1.03 3 1.33 3 1.02 4 1.29 4 1.02 5 1.24 5 1.02 6 1.20 6 1.01 7 1.15 7 1.01 8 1.10 8 1.01 9 1.05 9 1.00 10 1.00 10 1.00 11 0.96 11 1.00 12 .92 12 .99 13 .88 13 .99 14 .84 14 .99 15 .79 15 .98 16 .75 16 .98 17 .71 17 .98 18 .67 18 .97 19 .63 19 .97 20 .59 20 .97 21 .57 21-23 .96 22 .530 24-26 .95 23 .530 27-30 .94 24-26 .530 31-35 1.03 27-30 .550 36-40 1.06 31-35 .580 41-45 1.10 36-40 .610 46+ 1.15 41-45 .650 46+ .750

DEDUCTIBLE FACTORS

PHYSICAL DAMAGE

COMPREHENSIVE FACTOR COLLISION FACTOR

1,000 0.88 1,000 0.83

500 1.00 500 1.00

250 1.19 250 1.25

(30)

VEHICLE SYMBOL FACTORS

PHYSICAL DAMAGE

ISO SYMBOLS

1989 &

PRIOR 1990 - 2010

2011 and

NEWER COMP COLL

6-Jan 1 2 0.93 1.01 7 2 3 1.03 1.12 3 4 1.22 1.31 8 4 5 1.28 1.36 5 6 1.47 1.52 7 1.52 1.56 10 6 8 1.58 1.60 7 10 1.75 1.76 11 8 11 1.82 1.82 12 1.82 1.81 10 13 1.83 1.81 14 1.88 1.84 12 11 15 1.93 1.88 16 2.02 1.97 12 17 2.12 2.05 18 2.19 2.11 13 13 19 2.25 2.16 20 2.32 2.22 14 21 2.40 2.28 22 2.46 2.33 23 2.51 2.39 24 2.57 2.44 14 15 25 2.63 2.49 26 2.68 2.52 27 2.72 2.55 16 28 2.76 2.58 29 2.82 2.63 30 2.87 2.68 15 17 31 2.93 2.72 32 3.03 2.82 33 3.14 2.92

(31)

34 3.24 3.01 18 35 3.34 3.11 36 3.46 3.21 16 19 37 3.58 3.31 38 3.70 3.42 39 3.82 3.52 40 3.94 3.62 20 41 4.06 3.73 42 4.15 3.80 43 4.24 3.87 17 21 44 4.33 3.94 45 4.48 4.08 46 4.63 4.21 47 4.78 4.34 18 22 48 4.94 4.47 49 5.14 4.65 50 5.34 4.83 51 5.54 5.01 23 52 5.74 5.19 53 5.83 5.25 54 5.92 5.30 55 6.01 5.36 19 24 56 6.09 5.42 57 6.32 5.58 58 6.55 5.74 20 and up 25 59 6.77 5.91 60 7.10 6.15 26 61 7.43 6.39 62 7.72 6.56 63 8.01 6.73 64 8.30 6.89 65 8.59 7.06 66 8.88 7.23 67 9.17 7.40 68 9.46 7.56 69 9.75 7.73 70 10.04 7.90 27 and up 71-97 10.33 8.06

(32)

VEHICLE/SYMBOL TABLE

ISO LIABILITY SYMBOLS LIA Symbol PIP Symbol Factor 240-280 450-480 0.920 285 485 0.94 290 490 0.96 295 495 0.98 300 500 1.000 305 505 1.045 310 510 1.09 315 515 1.135 320 520 1.18 325-355 525-575 1.225

Utah Non-Standard Auto Program

TABLE OF CONTENTS

FORMS LIST

NON-STANDARD AUTO PROGRAM

(PEAK)

UNITED INSURANCE COMPANY

Provo, UT

UTAH

Private Passenger Auto Liability and Physical Damage

Underwriting Guide

Rates effective

11/01/2013 NEW business

12/10/2013 RENEWAL business

I.

UNDERWRITING RULES

The final decision as to acceptability will remain with the company.

A. Application and Binding Authority

B.

Unacceptable Drivers

D.

Additional Physical Damage Rules

E.

Submit for Approval – Do Not Bind

F.

Special Rules

G.

Policy Term

II.

COVERAGE

A.

Liability

B.

Personal Injury Protection - (PIP)

C.

Uninsured/Underinsured Motorists –

D.

Uninsured Motorists Property Damage –

E.

Under-Insured Motorists Property Damage

F.

Physical Damage

G.

Towing

H.

Emergency Road Service

I.

Rental Reimbursement

III.

CLASSIFICATION & RATING

A. Driver Classification

B.

Points

There is no charge for MVR’s pulled in our system as long as 75% of the reports end up on a

policy that is issued and premium is paid. Any reports pulled on business that is below a 75%

success

rate

will

be

charged

to

the

agency.

$9.50/report

pulled.

C.

Business Use

2.

.

D.

Premium Rounding

E.

ISO Price/Symbol Chart

G.

Financial Responsibility Filings (SR22)

H.

Vehicle Surcharges

I. Discounts/Surcharges

Accountable Driver Surcharge:

Discounts/Surcharge Combinations

IV.