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Texas Private Passenger Auto – Guidelines: Empower Insurance Group

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Empower Insurance Group All Products - Priority / Limited / Bravo / Select Old American County Mutual Underwriting Guidelines 01.01.17

1. BINDING AUTHORITY

1.1. Coverage will be bound by the Company at the latter of the exact date and time the application is signed and dated by both the applicant and agent or the recorded Empower system date and time the policy is uploaded, if all of the following are met:

1.1.1. Application is completed in its entirety including signed rejections,

driver exclusions, vehicle inspections, and current photos (where applicable) and application with down payment is uploaded via our Empower system.

1.1.2. All documents required on the fax checklist are faxed to us by the

end of the business day.

1.2. All applications must have completed the electronic signature process. The insured must click, sign and complete the entire e-signature process. The insured signatures may not be completed by the agent, or agent representative. Down payment funds will be drafted from the agent’s account. Coverage is NOT bound if the insured’s down payment check is returned by their bank.

1.3. If an application is submitted with an improper driver class, symbol,

surcharge, discount, or without the required proof for a specific discount, the policy will be issued at the appropriate rate level according to the rules set forth in this manual. It is the responsibility of the producer to follow all the guidelines and requirements.

1.4. The agent must take current photos for all vehicles on the date of the

application or endorsement. Uninsured Motorist or Personal Injury Protection will not be added to any vehicle until photos are received via upload to the Empower software.

1.5. Any driver with a foreign driver’s license, Matricula Consular, foreign

passport, Permanent Resident Card, Voter Card or (EFIN), or Visa, must provide the ID(s) to the agent at the time of inception. Only ID(s) with a photo will be accepted. The agent must make a copy of the provided ID(s) and submit to Empower by fax or scan at policy inception. If not received with the paperwork on the same day the policy will NOT be bound.


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1.6. All vehicles and drivers must meet the underwriting guidelines in order to be

considered for coverage.

2. POLICY TERM/PAYMENT OPTIONS

2.1. Limited, Bravo and Lone Star Select policies are issued for a six month term. Priority policies are issued for a one month term.

2.2. Payment options include paid in full or an installment billing plan. 2.3. Each payment option includes a fee per vehicle for the Texas Automobile

Burglary and Theft Prevention Authority. On the Limited, Bravo and Lone Star Select policies the fee is $1.00 per term and for the Priority policies the fee is $.16 per term.

2.4. All service and billing fees charged will be the maximum allowed under rule

14 of the Texas Automobile Rules and Rating Manual.

2.5. Payment Plans 2.5.1. Payment plan option details are made available via our website.

3. UNACCEPTABLE RISKS

The Company reserves the right to accept, reject, request modification and make final underwriting decisions on all applications. Below is a general list of the risks not written; however, a combination of factors may cause some applications to be unacceptable even though not specifically mentioned in these guidelines. The company will accept a vehicle / driver ratio of 1 more vehicle than drivers. For example 4 cars: 3 drivers are acceptable but 4 cars: 2 drivers are not.

3.1. DRIVERS

3.1.1. Any operator with the following types of Driver’s License:

Driver License Type: Priority Limited Bravo Lone Star

Select Valid US Driver’s License Accept Accept Accept Accept Foreign Driver’s License Accept Accept Prohibited Prohibited Matricula Accept Accept Prohibited Prohibited Foreign Passport Accept Accept Prohibited Prohibited Permanent Resident Card Accept Accept Prohibited Prohibited Voter Card or (EFIN) Accept Accept Prohibited Prohibited Visa Accept Accept Prohibited Prohibited


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3.1.2. Any operator who is not a resident of Texas. Empower will accept a valid out of state driver’s license.

3.1.3. Operators with suspended drivers licenses, revoked drivers

licenses or occupational driver’s license, unless filing an SR-22 3.1.4. Any operator under the age of 16. 3.1.5. Any operator who lives or works in Mexico. 3.1.6. Migratory risks, including transient and seasonal workers. 3.1.7. All entertainers, athletes, celebrities or any professional individual

who is nationally or locally well known to a large segment of the population.

3.1.8. A driver that has developed more than:

7 points for Select and Bravo policies. 10 points for Limited and Priority policies.

3.1.9. A policy that has developed more than: 10 points for Select and Bravo

15 points for Limited and Priority. 3.1.10. Students residing and/or attending school in a state other than

Texas. 3.1.11. Any person that represents Empower Insurance including

employees, agents, producers, and any person in their household and/or immediate family members (father, mother, son, daughter, uncle, aunt, cousin, grandmother, grandfather)

3.1.12. If the insured moves out of the state during the policy period. The

policy will be cancelled using the pro-rate method.

3.2. VEHICLES

3.2.1. Any vehicle used for business use of any kind. Including but not limited to: mobile services, sales, wholesale or retail delivery, emergency vehicles, carpentry, HVAC, electricians and electrical contracting, plaster, drywall, masonry, tile and marble work, plumbing, floor laying, glass work, landscaping, pest control,


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roofing, painting, or any vehicle owned or leased by a business(sole proprietor, partnership, LLC or corporation).

3.2.2. Any vehicle not garaged in Texas. 3.2.3. Any vehicle with a GVW (Gross Vehicle Weight) of greater than

10,000 lbs. 3.2.4. Vehicles with less or more than four wheels. 3.2.5. Vehicles used for racing or speed contests. 3.2.6. Vehicles principally constructed of fiberglass, custom crafted bodies

or kit car 3.2.7. Vehicles titled to other than the named insured or persons named

on the application. 3.2.8. Vehicles with a current value in excess of $50,000. This includes

vehicles symbol 29 and higher for model years 2010 and prior, or symbol 59 and higher for model years 2011 and later.

3.2.9. Recreational vehicles. 3.2.10. Rare, classic, vintage type vehicles 3.2.11. For a list of unacceptable vehicles go

to www.empowerins.com/agents/prohibited.html 3.2.12. Vehicles with permanent or removable business-solicitation logos

or advertising

3.3. COVERAGES

3.3.1. Liability coverage cannot be written on vehicles over 35 years old. 3.3.2. OTC and collision coverage on vehicles over 20 years old. 3.3.3. OTC and collision coverage cannot be written without liability. 3.3.4. Vehicles with uninsured/underinsured motorist coverage or

Personal Injury Protection must have two current photos taken at the time of request for coverage, including vehicles added midterm where uninsured/underinsured motorist property damage coverage is requested.

http://www.empowerins.com/agents/prohibited.html


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3.3.5. OTC and collision coverage are not available separately.

4. ENDORSEMENTS

4.1. Endorsements must be uploaded to be effective immediately. Coverage

will be bound by the Company at the latter of the exact date and time the endorsement is signed and dated by both the applicant and agent or the recorded Empower system date and time the endorsement is uploaded.

4.2. Endorsements are required to be processed in the Empower software

system. Additional signed paperwork may be required and must have completed the electronic signature process. The insured must click, sign and complete the entire e-signature process. The insured signatures may not be completed by the agent, or agent representative. Faxed and/or mailed endorsements are not acceptable. If the agent does not process the endorsement in the Empower software system, the agent assumes the risk as the endorsement has not been properly processed.

4.3. An Unacceptable Risk Surcharge will be assessed on the liability, OTC,

and collision coverage if, during the policy term an unacceptable vehicle or driver is added to the policy.

4.4. If an insured vehicle’s principle garaging address or primary area of

operation is moved outside of Texas, or if the insured moves their residence outside the state of Texas during the term of the policy, the policy will receive an Unacceptable Risk Surcharge.

4.5. Endorsements will not be processed without proper documentation and

any additional premium. 5. RENEWALS

5.1. Renewal offers will be sent prior to expiration and non-renewal notices will

be sent 30 days prior to the policy anniversary. To be renewed with no lapse in coverage, premium payment must be received or uploaded BEFORE the expiration date.

5.2. The six month or one month renewal can be paid in full or in an installment

billing plan, both of which includes a fee per vehicle for the Texas Automobile Burglary and Theft Prevention Authority.

5.3. If a renewal payment is received or uploaded within 30 days after the

expiration date, the policy will be renewed with a lapse in coverage and


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will be subject to the rates in effect at time coverage is afforded. After 30 days, a new application is required.

6. CANCELLATIONS

6.1. All cancellation requests by the insured must be in writing and signed by

the named insured. The effective date of the cancellation may not be earlier than the date the cancellation request is received by Empower unless duplicate coverage has been verified.

6.2. Flat cancellations are not permitted after inception of the policy, except for

insufficient funds on the initial down payment and the renewal payment. 6.3. If cancellation is requested due to duplicate coverage, a copy of the

declaration page from the replacement insurance carrier indicating the effective date is required.

6.4. All other cancellation premiums will be calculated on a pro-rata basis.

7. REINSTATEMENTS

7.1. Reinstatement eligibility is available thru the Empower software system and the Empower required “No Loss” form must be completed thru the electronic signature process. The insured must click, sign and complete the entire e-signature process. The insured signatures may not be completed by the agent, or agent representative. If the policy is not eligible for reinstatement the system will inform you, and you may call Empower Underwriting for further details.

7.2. Cancellations for non-payment will be considered for reinstatement only if

the amount past due is paid and the Empower required “No Loss” form is completed thru the electronic signature process.

7.3. A new application must be submitted to re-start coverage on any denied

reinstatement request. 7.4. Policies that are cancelled for a lack of information or underwriting

reasons may only be considered for reinstatement if the information or underwriting reason for cancellation is remedied and any past due amounts are paid.


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8. SR22’S 8.1. Empower Insurance is not responsible for any delays or lack of processing

of the SR22 and/or reinstatement of a driver’s license. 8.2. The Agent should make the insured aware that it is the applicant’s

responsibility to make sure the filing fees are sent to the Texas Department of Public Safety directly and that the license is reinstated.

8.3. It is the agent’s responsibility to advise their insured not to drive until the

Texas Department of Public Safety has notified them that their driver’s license has been reinstated.

8.4. A $25.00 fee will be charged for the SR22. 8.5. An SR22 filing can only be made in the state of Texas. 8.6. NO SR22A FILINGS ARE ALLOWED.

9. NAMED DRIVER EXCLUSIONS

9.1. The named driver exclusion (515A) form must be completed thru the

electronic signature process during the binding process for new business and/or when processing an endorsement if applicable. The insured must click, sign and complete the entire e-signature process. The insured signatures may not be completed by the agent, or agent representative.

9.2. The exclusion must be completed for any family member, person to whom

the vehicle is regularly available, or any resident of the household who is over 13 years old and is not listed as a driver on the policy.

9.3. Driver exclusion is permitted on a spouse if the named insured provides

valid proof of marriage. If proof is not provided, the named insured will be rated as single. We recognize common law marriage with proof such as a joint checking account, common title to vehicles or residence, or submission of the Empower Certificate of Common Law Form.

10. DISCOUNTS

All discounts given on a specific vehicle or policy will be applied to the liability, OTC, and collision coverage only, except as noted below. If the proof of eligibility for a specific discount is received after the policy is issued, the discount will be applied on a pro-rata basis.


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10.1. PRIOR INSURANCE DISCOUNT

A prior insurance discount will be applied, if the insured is able to provide verifiable proof of a minimum of six months continuous coverage, from a company other than Empower Insurance, immediately preceding this policy with no more than 30 days lapse in coverage.

10.2. MULTI-CAR DISCOUNT

A multi-car discount will be applied to like coverages on policies with more than one vehicle.

10.3. PREFERRED DRIVER DISCOUNT

A preferred driver discount will be provided to any driver over the age of 24 that has been claims-free and accident-free for the preceding 36 month period.

10.4. FULL DISCLOSURE DISCOUNT

All applicants proclaiming full and complete disclosure on the application will be awarded a full disclosure discount. This includes full and complete disclosure of all information on the application including, but not limited to driving experience, claims history, prior insurance, and listing or excluding all household/family members.

10.5. IN AGENCY RENEWAL DISCOUNT An in agency renewal discount will be applied, if the agent provides

verifiable proof of at least six months continuous coverage, from a company other than Empower Insurance, immediately preceding this policy. The application and the prior insurance must originate from the same retail agency. There may be no lapse in coverage in order for the discount to be applied.

10.6. EFT DISCOUNT (Electronic Funds Transfer) A discount is provided for insureds that have their monthly premium

deducted from a: checking, savings, or credit card account. EFT can be

The following documentation is acceptable for proof of prior coverage: 1. Declarations Page 2. Renewal offer or Non-Renewal offer 3. Company generated ID Card 4. Letter of Experience on prior carrier letterhead


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set up for the insured at any time during the policy period and the discount prorated. To receive the EFT discount, the agent must complete the on-line EFT form that will approve the transaction, and the applicant must sign the Empower EFT Form and submit it to Empower Insurance by fax or mail. Unapproved transactions can be submitted for review with a signed EFT form and a copy of a voided check mailed or faxed to Empower Insurance. The EFT discount is excluded from the maximum discount calculation.

10.7. HOMEOWNER DISCOUNT

10.6.1. A homeowner discount will be provided if the named insured

owns his/her home. A copy of a homeowner’s declaration page or a tax statement with named insured as owner is acceptable.

10.6.2. A home can be described as a house, condominium, duplex, town home, or mobile home in which the named insured resides.

10.8. ADVANCE QUOTE DISCOUNT A discount is provided for insureds that have their policy quoted and

issued prior to the date the policy is effective. To qualify for this discount the insured must qualify for the Prior Insurance Discount and have no lapse in coverage. This discount applies to all coverages except Towing and Labor, and Rental Reimbursement.

11. DRIVER SURCHARGES

Points will be based on the number of incidents on each operator. Include all violations, convictions, or accidents resulting from the use of any vehicle during the preceding 36 months. Incidents will be assigned by the rating software to the appropriate category. The maximum points allowed are: 7 points for a driver, 10 points for a policy on Bravo and Lone Star Select policies. The maximum points allowed are: 10 points for a driver, 15 points for a policy on Priority and Limited policies. All moving violations that result from a single incident will be charged.


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Violation Points Major Violations 6 Driving While Intoxicated 6 Second Violation Ineligible At Fault Accidents 3 Second Violation 4 Third Violation Ineligible Intermediate Violations 3 Second Violation 4 Minor Violations & Speeding 1 Each Additional 2 Unverifiable Driving Record 5

11.1 INEXPERIENCED OPERATOR SURCHARGE

Surcharge will apply to any driver over 19 years of age with less than 36 months driving experience.

12. DRIVER ASSIGNMENT

Policy rate is determined by assigning the highest rated driver to the highest rated vehicle and the second highest rated driver to the second highest rated vehicle, etc.

13. COVERAGES

13.1. LIABILITY Basic Bodily Injury/Property Damage coverage is offered at limits of BI PD ____________ _______ 30,000/60,000 25,000

13.2. OTC / COLLISION – Not Available for Priority Policies.

13.2.1. In determining the premium for OTC and collision coverage,

standard industry symbols (ISO) are used. A complete vehicle identification number (VIN) must be included on the application.


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13.2.2. An Unacceptable Risk Surcharge will be applied to OTC and Collision premiums if OTC and collision coverage is requested on a vehicle with a new or current value in excess of $50,000. This surcharge applies if the vehicle symbol is 29 or higher for model years 2010 and prior or symbol 59 and higher for model years 2011 and later.

13.3. UNINSURED/UNDERINSURED MOTORIST

13.3.1. Uninsured/Underinsured Motorist Bodily Injury coverage is written

at limits of:

Basic Uninsured/Underinsured Motorist Bodily Injury/Property Damage coverage is offered at limits of:

UM/UIM BI UM/UIM PD ____________ __________ 30,000/60,000 25,000

A $250 deductible applies to the UMPD/UIMPD limit.

13.3.2. UM/UIM may be rejected in its entirety or the insured may elect to

reject only the UMPD/UIMPD portion of the coverage. If the insured elects to reject all or part of the coverage, a rejection must be signed by the named insured or the coverage will be added to the policy and the applicable premium will be charged.

13.3.3. If UM/UIMBI an UMPD/UIMPD are selected on one vehicle, all

other vehicles on a multi-car policy must have the coverage. 13.3.4 All vehicles that have UM/UIMBI must have two current photos

taken the day of the application and submitted with the application or endorsement. Do not include UM/UIMBI on any vehicle until photos are completed.

13.4. PERSONAL INJURY PROTECTION

13.4.1 Personal Injury Protection is available at a $2,500.00 limit. If the insured elects to reject the coverage, a rejection must be signed or the coverage will be added to the policy and the applicable premium will be charged. If Personal Injury Protection is selected on one vehicle, all other vehicles on a multi-car policy must have the coverage.


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13.4.2 All vehicles that have PIP must have two current photos taken the day of the application and submitted with the application or endorsement. Do not include PIP on any vehicle until photos are completed.

13.5. MEDICAL PAYMENTS

Medical Payments may only be written with a limit of $500.00. If medical payments coverage is written on one vehicle, all vehicles on a multi-car policy must have the coverage. Medical Payments coverage cannot be written if Personal Injury Protection coverage has been selected.

13.6. TOWING AND LABOR Towing and Labor is an optional coverage with an additional premium charge. Towing and labor coverage can only be written on a vehicle that has OTC and collision coverage. Coverage is a subject to maximum of $75 per disablement.

13.7. RENTAL REIMBURSEMENT Rental Reimbursement is an optional coverage with an additional premium charge. Rental reimbursement coverage can only be written on a vehicle that has OTC and collision coverage. There is a maximum of $30/day coverage with a $900 maximum per occurrence.

13.8 MEXICO COVERAGE

Mexico coverage pursuant to endorsement 551 - is included Only on Priority policies. In some cases the coverage under this policy may NOT be recognized by Mexican authorities and the company many not be allowed to implement this coverage in Mexico. You should ask the insured to consider purchasing auto coverage from a licensed Mexican Insurance Company before driving in Mexico. This coverage does not apply to trips into Mexico that exceed 25 miles from the boundary of the United States of America.

14. VEHICLE SURCHARGES

14.1. SPECIAL RISK VEHICLES- certain special risk vehicles will receive a surcharge on liability, OTC, and or collision premiums.

15. SEVERE WEATHER PROCEDURES


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All submissions for new business and endorsements on existing policies that have an effect of increasing the company’s exposure are suspended from the time the National Weather Service issues a “watch” or “warning” related to any type of weather event. This suspension is applicable within 100 miles of the “watch” or “warning” area. Normal submission activity will be reinstated 24 hours after the “watch” and/or “warning” is lifted by the National Weather Service. It is the agent’s responsibility to be aware of all “watch” and “warning” issuance in their region. Empower does not have the responsibility to advise agents on weather events.

16. UNDERWRITING QUALIFYING QUESTIONS

Empower asks the following questions of an applicant prior to binding a policy. The applicant’s answers determine whether they are, or are not an acceptable risk for this program:

Underwriting Questions Acceptable Not

Acceptable ARE ALL HOUSEHOLD MEMBERS ATTENDING SCHOOL LISTED OR EXCLUDED? Yes No

ARE ALL HOUSEHOLD MEMBERS OVER 13 LISTED OR EXCLUDED? Yes No ARE ALL VEHICLES GARAGED AND DO ALL DRIVERS RESIDE AT THIS ADDRESS? Yes No ARE ALL VEHICLES REGISTERED TO PERSONS LISTED ON THE APPLICATION? Yes No

ARE ANY VEHICLES USED FOR BUSINESS USE OF ANY KIND? No Yes

DO YOU OWN YOUR OWN HOME? Yes/No DOES ANY VEHICLE HAVE ADDITIONAL OR NON FACTORY INSTALLED EQUIPMENT? PLEASE NOTE WE DO NOT COVER CUSTOM EQUIPMENT.

Yes/No - No Coverage

DOES ANY VEHICLE HAVE MORE THAN FOUR WHEELS (DUALLIES)? No Yes

IS ANY VEHICLE AN ANTIQUE OR CLASSIC? No Yes HAVE YOU FULLY DISCLOSED ALL INFORMATION PERTAINING TO CLAIMS, VIOLATIONS, VEHICLES AND DRIVERS OVER THE LAST 3 YEARS? Yes No

HAS ANY DRIVER HAD A VEHICLE STOLEN IN THE LAST 5 YEARS? No Yes HAS ANY DRIVER BEEN CONVICTED OF A FELONY OR OTHER CRIME INVOLVING MORAL TURPITUDE IN THE LAST 5 YEARS? No Yes

DOES ANY DRIVER, NOT APPLYING FOR AN SR-22, HAVE A SUSPENDED, REVOKED, EXPIRED, DENIED OR OCCUPATIONAL DRIVERS LICENSE? No Yes


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17. AMEN DATORY POLICY ENDORSEMENTS

17.1.1. This program utilizes amendatory endorsements approved by the Texas Department of Insurance that contain more limited coverage than the Texas Standard Personal Automobile Policy, as allowed by the Texas Legislature on June 11, 2003. The amendatory endorsements utilized are:

Amendatory Endorsement: Priority Limited Bravo Lone Star

Select OACM.PhysDam.001 - X - - OACM.YCA.002a X X - - OACM.AuthDriv.003a - - - - OACM.Storage.004 - X X - OACM.DelFee.005 X X - - OACM.ContLiab.006 X X - - OACM.AutoTerm.007 X X - - OACM.CrimeIntent.008 X X X - OACM.MisrepFraud.009 X X X - OACM.CP.013c - - - - OACM.OutOfState.016a X X - - OACM.Punitive.018 X X X - OACM.RentProp-NOAuto.019 X X - - OACM.NoBusiness.020 X X X -


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OACM.PhysDam.001 – PHYSICAL DAMAGE ENDORSEMENT The parties agree to the following amendment to the policy: The Limit of Liability provision contained in Part D – Coverage for Damage to Your Auto of this policy is deleted and replaced by the following: PART D – COVERAGE FOR DAMAGE TO YOUR AUTO LIMIT OF LIABILITY Our limit of liability for loss will be the lesser of the following:

1. Actual cash value of the stolen or damaged property, at the time of the loss. An adjustment for depreciation and physical condition will be made in determining the actual cash value in the event of a total loss; 2. the amount necessary to restore (through repair and/or replacement) the property to its pre-loss condition with other property of like kind and quality; 3. the amount you paid for the vehicle in the event of a total loss; or 4. the amount stated in the Declarations of this policy.

All claims submitted under Part D – Coverage for Damage to Your Auto will be subject to any applicable deductible shown in the Declarations and reduced by any salvage value if you retain the salvage. Custom or additional equipment is not covered under Part D – Coverage for Damage to Your Auto unless you have reported the value to us prior to the loss and paid a premium for the custom or additional equipment as shown in the Declarations Page. Diminution in Value is not covered under Part D – Coverage for Damage to Your Auto. If a repair or replacement results in better than like kind or quality, we will not pay for the amount of the betterment. At the mutual agreement of you and us, we will not apply the applicable deductible for a glass loss if the glass is repaired rather than replaced. The following Definitions are added as applied to this endorsement: DEFINITIONS

1. “Loss” means sudden, direct and accidental damage. 2. “Total Loss” means a loss which, in our judgment, is not economically repairable, and includes actual loss or disappearance of your auto. 3. “Custom or additional equipment” means any equipment which was not installed at the factory. 4. “Diminution in Value” means the reduction in market or resale value that results from a loss after the necessary repairs are made to the vehicle. 5. “Betterment” means an improvement that results in greater value than before the loss occurred.

OACM.YCA.002a – NEWLY ACQUIRED AUTOMOBILE ENDORSEMENT The parties agree to the following amendment to the policy:


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Definition G of this policy is deleted and replaced by the following: DEFINITIONS G.1. “Your covered auto” means:

a. Any vehicle shown in the Declarations.

b. A “newly acquired auto”.

c. Any “trailer” you own.

d. Any auto or trailer you do not own while used as a temporary substitute for any other vehicle described in this definition which is out of normal use because of its:

1. breakdown;

2. repair;

3. servicing;

4. loss; or

5. destruction

This provision (G.1.d.) does not apply to Part D – Coverage for Damage to Your Auto of this policy.

G.2. “Newly acquired auto”.

a. “Newly acquired auto” means a private passenger auto, pickup, van or utility vehicle designed for operation principally upon public roads that you become the owner of during the policy period and that:

1. has a gross vehicle weight (as determined by the manufacturer’s specifications) of 25,000 lbs. or less; and

2. is not used for the delivery or transportation of goods, materials or supplies other than samples, unless:

a. the delivery of goods, materials or supplies is not the primary usage of the vehicle; or

b. it is used for farming or ranching

b. Coverage for a newly acquired auto is subject to the following conditions:

1. For any coverage provided in this policy except Part D – Coverage for Damage to Your Auto, a newly acquired auto will have the broadest coverage we now provide for any auto shown in the Declarations. Coverage will begin:

a. On the date you become the owner if:

1. your newly acquired auto is in addition to the autos shown in the Declarations; and

2. you ask us to add the newly acquired auto to this policy within 20 days after you become the owner; or

b. On the date you become the owner if it replaces an auto shown on your Declarations Page.

2. For coverage provided under Part D – Coverage for Damage to Your Auto, a newly acquired auto will have the same coverage as the auto it replaces, including the applicable deductible. The


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applicable deductible will be either the amount shown in the Declarations or $1,000.00, whichever is less. An insured must notify the insurer of a replacement vehicle on or before:

a. The 20th day after the date on which the insured becomes the owner of the vehicle; or

b. A later date specified by the policy, only if the insured wishes to add coverage for damage to the vehicle; or continue existing coverage for damage to the vehicle after the period prescribed in 2.a. and 2.b. expire.

c. If you do not notify us within 20 days after you become the owner, coverage you ask us to add to the newly acquired auto will begin at the time you ask us to provide the coverage.

3. For Part D – Coverage for Damage to Your Auto, if the newly acquired auto is in addition to any vehicle shown on your Declarations page:

a. Coverage will apply when you become the owner of a newly acquired auto if an auto shown in the Declarations has Part D – Coverage for Damage to Your Auto and you ask us to provide Part D – Coverage for Damage to Your Auto for the newly acquired auto within 10 days after you become the owner.

b. Coverage will apply when you become the owner if no auto shown in the Declarations has Part D – Coverage for Damage to Your Auto and you ask us to provide Part D – Coverage for Damage to Your Auto within 10 days after you become the owner.

c. Coverage will apply at the time you ask us to provide Part D– Coverage for Damage to Your Auto if neither of the conditions in 3.a. or b. above has been met and we agree to add this coverage for this auto.

The following Definition is added as applied to this endorsement: DEFINITION

“Owner” means the person who:

a. Holds legal title to the auto or trailer;

b. has legal possession of an auto or trailer subject to a lien or security agreement; or

c. has legal possession of a private passenger type auto or pickup or van that is leased or rented to that person under a written agreement for a continuous period of at least six months.

OACM.Storage.004 – STORAGE ENDORSEMENT The parties agree to the following amendment to the policy: The following general duty is added to Part E – Duties after an Accident or Loss: PART E – DUTIES AFTER AN ACCIDENT OR LOSS GENERAL DUTIES Anyone seeking coverage under this policy must authorize us to move the damaged vehicle to a storage facility of our choice at our expense.


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OACM.DelFee.005 – DELIVERY OF PERSONS AND PROPERTY FOR A FEE ENDORSEMENT The parties agree to the following amendment to the policy: Exclusion A.5 of Part A Liability Coverage of this policy is deleted and replaced by the following: PART A – LIABILITY COVERAGE EXCLUSIONS A. We do not provide Liability Coverage for any person:

5. For that person’s liability arising out of the ownership or operation of a vehicle while it is: a. being used to carry persons for a fee; this does not apply to a share-the-expense car pool.

b. being used to carry property for a fee or any compensation, including but not limited to delivery of goods, either on a wholesale or retail basis, such as food, publications, money, or flowers.

c. rented or leased to another or available in any way for public hire; this does not apply if you or any family member lends your covered auto to another in exchange for reimbursement of operating expenses only.

Exclusion 1 of Part D – Coverage for Damage to Your Auto of this policy is deleted and replaced by the following: PART D – COVERAGE FOR DAMAGE TO YOUR AUTO EXCLUSIONS We will not pay for:

1. Loss to your covered auto while it is:

a. being used to carry persons for a fee; this does not apply to a share-the-expense car pool. b. being used to carry property for a fee or any compensation, including but not limited to delivery of goods, either on a wholesale or retail basis, such as food, publications, money, or flowers. c. rented or leased to another or available in any way for public hire; this does not apply if you or any family member lends your covered auto to another in exchange for reimbursement of operating expenses only.

OACM.ContLiab.006 – CONTRACTUAL LIABILITY EXCLUSION ENDORSEMENT The parties agree to the following amendment to the policy: The following exclusion is added to Part A – Liability Coverage: PART A – LIABILITY COVERAGE EXCLUSIONS We do not provide Liability Coverage for any person for bodily injury or property damage assumed by or imposed on a covered person under any agreement, contract or bailment.


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OACM.AutoTerm.007 – AUTOMATIC TERMINATION ENDORSEMENT The parties agree to the following amendment to the policy: Part F – General Provisions is revised by adding the following language to C. Automatic Termination: PART F – GENERAL PROVISIONS TERMINATION C. Automatic Termination

If someone other than you or a family member who is listed in the Declarations becomes the owner of the auto, coverage for that auto will automatically terminate. The termination will correspond with the time that possession or title is conveyed to the new owner.

OACM.CrimeIntent.008 – CRIMINAL OR INTENTIONAL ACTS ENDORSEMENT The parties agree to the following amendments to the policy: The following Exclusion Provision is added to Part F – General Provisions: PART F – GENERAL PROVISIONS GENERAL EXCLUSIONS A. We do not provide any coverage for any person for bodily injury or property damage caused by or sustained:

1. In an incident caused by or at the direction of that person with the intent to injure person or property.

2. While in the commission of a felony.

3. While attempting to elude arrest by a law enforcement official.

B. We will not pay for loss to your covered auto for damages sustained:

1. Due to or caused by a willful or intentional act by or at the direction of you, a family member or anyone with your express or implied permission.

2. While in the commission of a felony.

3. While attempting to elude arrest by a law enforcement official.

Exclusions B.2. and B.3. of this section apply only while your covered auto is being used by you, a family member, or anyone with your express or implied permission. OACM.MisrepFraud.009 – MISREPRESENTATION OR FRAUD ENDORSEMENT The parties agree to the following amendments to the policy: The following provision is added: PART F – GENERAL PROVISIONS MISREPRESENTATION OR FRAUD


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This policy includes the Declarations Page and the amendments. This policy also includes the application and the endorsements. The statements that you made while you were applying for coverage are representations. To determine your premium and eligibility for coverage under this policy, we relied on the representations that you made when you applied for coverage. If you omitted material facts or made material misrepresentations that are fraudulent, false, misleading or affect the acceptance of the risk by us, we may void this policy. We may void this policy if you engaged in fraudulent conduct while applying for coverage under this policy. Even following an accident or loss, we may still void this policy for fraud or where there was a material misrepresentation of fact by you while you were applying for any coverage under this policy, or through any notice of change that you gave under this policy. In such a case, we will not be liable for any claims that would otherwise be covered in the absence of the fraud or material misrepresentation. If we are not allowed to void this policy, any first-party claims will be reduced by the amount of any other premium owed to us. We reserve the right to recover from you any payments made as a result of your fraud. Any statements you made or will make in a notification of change to your policy are also considered representations and are subject to the provisions set out above. OACM.OutOfState.016a - RESTRICTED OUT OF STATE COVERAGE ENDORSEMENT The parties agree to the following amendments to the policy:

Part A - Liability Coverage of this policy is amended by deleting and replacing Part A of the Out of State Coverage Provision with the following:

PART A - LIABILITY COVERAGE

OUT OF STATE COVERAGE

If an auto accident to which this policy applies occurs in any state or province other than the one in which your covered auto is principally garaged, we will interpret your policy for that accident as follows:

A. If the state or province has:

1. A financial responsibility or similar law specifying limits of liability for bodily injury or property damage higher than the limit shown in the Declarations, your policy will provide the higher specified limit.

2. A compulsory insurance or similar law requiring a nonresident to maintain insurance whenever the nonresident uses a vehicle in that state or province, your policy will provide at least the required minimum amounts for bodily injury or property damage as specified by the state or province.

Part B1 - Medical Payments Coverage, Part B2 - Personal Injury Protection and Part C - Uninsured/Underinsured Motorists Coverage of this policy are amended by adding the following to each part:

PART B1 - MEDICAL PAYMENTS COVERAGE

PART B2 - PERSONAL INJURY PROTECTION

Part C - UNINSURED/UNDERINSURED MOTORIST COVERAGE

OUT OF STATE COVERAGE This coverage shall not be modified by the law of the state where the covered person sustains injury or damage caused by an auto accident.

OACM.PUNITIVE.018 – EXEMPLARY OR PUNITIVE DAMAGES ENDORSEMENT The parties agree to the following amendments to the policy: The following exclusions are added: PART A – LIABILITY COVERAGE


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EXCLUSIONS We do not provide Liability Coverage for any exemplary or punitive damages. PART C – UNINSURED/UNDERINSURED MOTORISTS COVERAGE EXCLUSIONS We do not provide Uninsured/Underinsured Motorists Coverage for any exemplary or punitive damages. The following definition is added as applied to this endorsement: DEFINITION “Exemplary damages” means any damages awarded as a penalty or by way of punishment but not for compensatory damages. Exemplary damages are neither economic nor noneconomic damages. “Exemplary damages” includes punitive damages.

OACM.RentProp-NOAuto.019 - RESTRICTED RENTED PROPERTY AND NON-OWNED AUTO ENDORSEMENT The parties agree to the following amendment to the policy:

Exclusion A.3 of Part A - Liability Coverage of this policy is deleted and replaced by the following:

PART A - LIABILITY COVERAGE

EXCLUSIONS

A. We do not provide Liability Coverage for any person:

3.I. For damage to property:

a. rented to;

b. used by; or

c. in the care, custody or control of that person.

3.II. This exclusion (A.3.I.) does not apply to damage to a rented residence or rented private garage

caused by your covered auto.

This exclusion does, however, apply to any and all damage to any vehicle you rent, use, or borrow, regardless of

cause or fault. OACM.NOBUSINESS.020 – NO BUSINESS USE ENDORSEMENT The parties agree to the following amendments to the policy: Exclusion A.7 of Part A – Liability Coverage of this policy is deleted and replaced by the following: PART A – LIABILITY COVERAGE EXCLUSIONS

A. We do not provide Liability Coverage for any person: 7. Maintaining or using any vehicle for any business purpose. A business purpose includes but is not limited to:

a) transporting persons, equipment or tools of the trade to or from a job site; or,


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b) using any vehicle while employed or otherwise engaged in any business or occupation, including but not limited to the following occupations or services:

1) construction, or 2) courier or delivery services, or 3) landscaping, or 4) painting, or 5) carpentry, or 6) masonry, or 7) food services, or 8) janitorial services, or 9) any other trade-type service. Exclusion A.7.a) does not apply to a share-the-expense car pool.

The following exclusion is added to Part D – Coverage for Damage to Your Auto PART D – COVERAGE FOR DAMAGE TO YOUR AUTO EXCLUSIONS We will not pay for: Loss to your covered auto while it is being operated for any business purpose. A business purpose includes but is not limited to: a) transporting persons, equipment or tools of the trade to or from a job site; or,

b) using any vehicle while employed or otherwise engaged in any business or occupation, including but not limited to the following occupations or services: 1) construction, or 2) courier or delivery services, or 3) landscaping, or 4) painting, or 5) carpentry, or 6) masonry, or 7) food services, or 8) janitorial services, or 9) any other trade-type service. Paragraph a) of this exclusion does not apply to a share-the-expense car pool.

17.1.2. The agent must explain the policy features and limitation disclosure to the consumer and have the applicant sign the “Policy Features and Limitations Disclosure” that prints with the application. The “policy Features and Limitations Disclosure” appears as follows:

18. CLAIMS

All claims should be reported directly to the company as soon as possible by telephone to 1-877-437-5007. The agent is not to discuss any claims related item with the insured or the claimant. If an agent chooses to discuss the loss, the agent assumes responsibility for payment of the loss. The agent is not licensed to manage claims and is not a representative of the Empower MGA claims department. The agent has no authority to discuss, review, coach, advise, or determine coverage.

Documents

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