Alabama Rating Plan

1 Edition: 6/15

Alabama Auto Program Administered by:

AssuranceAmerica Managing General Agency 1-800-450-7857

Quality Casualty Insurance Company

AssuranceAmerica Mailing Address

AssuranceAmerica

PO Box 723128

Atlanta, GA 31139-0128

Main Office: 1-(888)-952-2902

Customer Service: 1-(800)-450-7857

Fax: 1-(877)-952-0258

Claims: 1-(800)-315-6090

Fax: 1-(866)-261-8507

QCIC Mailing Address

Quality Casualty Ins Co

400 Poydras Street, Suite 2000

New Orleans, Louisiana 70130

Main Office: 1-(504)-528-9555

Fax: 1-(505)-523-0084

Alabama Rating Plan

2 Edition: 6/15

Table of Contents

Section I: COMPANY POLICIES ................................................................................................................ 3

Section II: COVERAGES OFFERED ............................................................................................................ 6

Section III: DISCOUNTS .................................................................................................................................. 7

Section IV: SURCHARGES .............................................................................................................................. 9

Section V: RATING FACTORS ................................................................................................................... 10

Section VI: UNDERWRITING RULES ........................................................................................................ 14

Section VII: UNACCEPTABLE RISKS ......................................................................................................... 16

Section VIII: PAYMENT PLANS ..................................................................................................................... 18

Section IX: FEES ............................................................................................................................................. 19

Alabama Rating Plan

3 Edition: 6/15

Alabama Auto Policies

Section I: COMPANY POLICIES

A. Agent Obligation

The Agent and employees under the direction of the Agent must ask all questions on the

application completely as worded on the application. Additionally, the Agent and employees

under the direction of the Agent must explain the importance of obtaining accurate information to

the applicant and record this information accurately on the application.

B. Applications

All applications must be uploaded. All applications must be completed in full without omissions

and signed by the applicant. The signature must be witnessed by an authorized producer, as

evidenced by the producer’s signature on the application in order to secure bound coverage. The

application becomes part of the policy. Errors and Omissions may result in denial of coverage

and the policy may be considered null and void. All relatives and residents in the insured’s

household must be listed on the application. The named insured must be a registered owner of all

insured vehicles. Accuracy of statements made by the insured and the producer is very important

since the application is a representation of the facts stated therein. Any application containing any

materially false information or conceals information concerning any fact material commits a

fraudulent insurance act. Fraudulent insurance acts are a crime and subject to criminal and civil

penalties.

All discounts must show proof to be awarded by the producer at the time of submission. Agents

are required to maintain a complete set of original, signed records pertaining to all uploaded

transactions. QCIC reserves the right to audit any and all documents pertaining to the Company at

any time. Should the company request any records, the agent is required to provide the necessary

information within 24 hours of the request.

C. Binding Authority

Coverage may be bound at the time and the date shown on the application provided:

1. The application is fully completed, properly signed by the applicant and accompanied by

valid payment.

2. The risk is within described classes and limits published by the company and do not

appear as an “unacceptable risk” in the underwriting manual.

3. The insured has an AL permanent address.

4. The required down payment, including all applicable fees, accompanies the application.

The down payment check must clear the bank, otherwise the application will be

considered null and void.

5. Auto policies are issued for a 6-month term.

6. We do not permit brokering of business. All agents must be licensed to write business

with QCIC and must abide by the producer agreement.

7. The experience period for the determination of points is three years immediately

preceding the effective date show on the application.

Alabama Rating Plan

4 Edition: 6/15

D. Commission

Refer to producer agreement for commission levels. If a net balance is due the company, payment

is due upon receipt. If a net balance is due your agency, a check for the balance will be included

with the statement.

E. Cancellations

Cancellations are processed in compliance with Alabama statutes.

If cancellation is requested by the insured, then the written request must be signed by the insured;

the cancellation will be made on a pro-rata basis; and the effective cancellation date may not be

earlier than the date the agency is notified by the insured.

If cancellation is at the Company’s request, or due to non- payment of premium, then all company

initiated cancellations will be calculated on a pro-rata basis.

There is no coverage afforded if the down payment check is returned for insufficient funds. No

flat cancellations are permitted after policy inception, except for NSF down payment.

F. Endorsements:

1. Endorsements not requiring an original signature can be faxed to 1-(877)-952-0258;

attention: underwriting. 2. The producer should promptly report any changes to the company after receiving

notification of a request. 3. Any endorsement processed that makes the policy ineligible will be surcharged with an

Ineligible Risk Surcharge and set up for cancellation or non-renewal.

G. Financial Responsibility Filing SR22 filings are available for the state of Alabama only. An operator requesting a filing must have a verifiable driving record and cannot be excluded from the policy. A fully earned SR-22 filing fee will be charged for each SR-22 filing.

H. Misrepresentation Of Risk The insured has a responsibility and obligation, to truthfully and fully complete an insurance application. Material misrepresentation may affect the insured’s eligibility to receive the benefits of the insurance contract. The producer must ask all questions of the applicant, clearly explaining the importance of providing accurate information. Information that is most often misrepresented:

1. Drivers: Obtain full name and birth date of all persons in the household 15 or older, licensed or not. All household members must be listed as a driver or excluded.

2. Garaging Location: Determine the correct garaging location based on zip code. 3. Convictions: List all convictions and accidents, at fault or not, within the last 36 months.

I. Reinstatement

Once a policy has been cancelled, it may only be reinstated with prior approval from the company. If approved, a reinstatement fee will be charged against the policy.

Reinstatement of non-pay cancellations will occur upon approval from and receipt by the company of the full premiums due the company, including applicable fees and meeting any underwriting requirements. “Receipt” is deemed to be receipt of verified legal tender of all monies owed. Payment to the agent is not acceptable as payment to the company once a cancellation is in effect.

Alabama Rating Plan

5 Edition: 6/15

J. Renewals Renewals will be sent to the named insured approximately thirty (30) days prior to renewal with copies to the producer. We will send the renewal billing directly to the insured. If the insured pays your office, attach the billing to the check and forward to the company.

K. Rescissions/Rejections Coverage will be rescinded / rejected if a risk is materially misrepresented and unacceptable by the rules of the manual. If the insured’s down payment check is not honored for any reason, coverage will be rescinded / rejected. If an insured’s check is deposited to the Producer’s account and it is returned unpaid to the Producer, AssuranceAmerica must be notified immediately for a rescission of coverage.

L. Weather Restrictions No new coverage or increase to existing coverage may be bound in any area where the NATIONAL WEATHER SERVICE has issued a “watch” or “warning” of impending weather catastrophe or disaster, such as hail, flood, windstorm, tornadoes, tropical storms and hurricanes.

Alabama Rating Plan

6 Edition: 6/15

Section II: COVERAGES OFFERED

A. Bodily Injury & Property Damage Limits must be equal to the financial responsibility limits required by law. Available limits are:

Bodily Injury $25,000 each person

$50,000 each accident

Property Damage $25,000 each accident

B. Uninsured Motorists Uninsured Motorists coverage is only available on policies with liability BI. Uninsured Motorists coverage must apply to all vehicles on the policy and cannot exceed liability BI limits. UM limits must be the same for all autos on the policy. Available limits are:

UM-Bodily Injury $25,000 each person

$50,000 each accident

The named insured has the right to reject UM coverage in writing. Coverage will automatically be included on all policies unless the Company is notified in writing by completing and signing the Selection / Rejection form.

C. Physical Damage

Collision and Other Than Collision (OTC) must be purchased together or rejected together. Collision and OTC coverage may NOT be written without liability BI/PD coverage. Physical damage does not have to be selected for each vehicle on a multi-car policy. Physical damage only is not allowed. A deductible applies to all safety glass claims. Available deductibles are:

Collision Deductible Options OTC Deductible Options $250 $250 $500 $500 $1000 $1000

Only equipment that is permanently installed by the original manufacturer is covered. Conversion vans, customized pickup trucks, custom paint jobs, decals, tapes, records or other media will not be covered.

D. Medical Payment

Medical payments coverage is available at the following limits:

$500 each person $1,000 each person $2,000 each person

E. Towing & Labor

This coverage may be purchased for any vehicle electing physical damage coverage. The limit is $50 per disablement.

F. Rental Reimbursement

This coverage may be purchased for any vehicle electing physical damage coverage. Available limit is $20 per day, $450 maximum.

Alabama Rating Plan

7 Edition: 6/15

Section III: DISCOUNTS Discounts apply to Bodily Injury, Property Damage, Medical Payments, Comprehensive and Collision Coverage, unless otherwise noted.

A. Multi-Car Discount A 20 % discount will apply to all vehicles on the policy if more than one vehicle is insured under the same policy.

B. Homeowner Discount

A 5 % discount will apply to policies when the named insured owns a home, lives in the home and insures the home. “Home” is defined as a single family house, duplex, condominium or townhouse. Examples of acceptable proof include the title, tax bill, or the declarations page of a homeowner’s insurance policy. Additional documentation may be required to verify that the home is an eligible structure. This discount applies to all vehicles on the policy.

C. Renewal Discount

15% discount will apply when the named insured has continuous coverage with Quality Casualty Insurance Company for at least six months (6) with no lapse. A policy is not eligible for a renewal discount if a transfer discount is already applied. This discount applies to all vehicles on the policy.

D. Transfer Discount (prior coverage)

A transfer discount will apply when the named insured shows proof of prior coverage. The discount amount is:

Up to 15 % if there is no lapse in coverage between the prior policy’s expiration and the effective date of the new policy. Prior policies with Quality Casualty are not allowed.

A policy is not eligible for a transfer discount if a renewal discount already applies.

For the Transfer Discount, proof of six (6) months prior coverage must be submitted with the application. This discount applies to all vehicles on the policy. Acceptable proof includes the prior policy’s declaration page, a current renewal offer, or any other document that shows both the effective date and the expiration or cancellation date. A current installment invoice that shows both dates is acceptable. The named insured must be listed on the prior policy.

E. Good Student Discount

The applicable Good Student Discount applies provided: a. The owner or operator is:

(1) at least sixteen (16) years of age; and (2) a full time high school, college, or university student.

b. A certified statement from a school official presented to the company on each anniversary date of the policy indicating that the student has met one of the following requirements during the preceding school semester: (1) is in the upper twenty (20%) percent of his/her class scholastically; (2) maintains a “B” average, or its equivalent (if the letter grading system cannot be

averaged, then no grade can be below a "B"); (3) maintains at least a 3.0 on a 4 point system or its equivalent; or (4) is included in a “Dean’s List”, “Honor Roll” or comparable list indicating scholastic

achievement. Note: A policy shall not be changed mid-term solely resulting from a change in the scholastic standing of the student.

Alabama Rating Plan

8 Edition: 6/15

F. Senior Driver / Accident Prevention Course A five (5%) percent discount will apply to Liability BI/PD, Medical Payments and Collision when the principal operator of the covered vehicle is an insured fifty-five (55) years of age or older who has successfully completed a motor vehicle accident prevention course approved by the Department of Public Safety.

The premium reduction will be effective for an insured for a period of three (3) years after successful completion of the approved course, except that the insurer may require, as a condition of maintaining the discount, that the insured:

a. not be involved in an accident for which the insured is at fault, and b. not be convicted , plead guilty or plead nolo contendere to a moving violation.

Motor vehicle accident prevention courses for the purposes of this section shall be subject to the approval of the Department of Public Safety. Upon successfully completing the approved course, each person shall be issued a certificate by the organization offering the course which shall be used to qualify for the premium discount required by this section.

This discount shall not apply in the event the approved course is taken as punishment specified by a court or other governmental entity resulting from a moving traffic violation. This discount does not apply to Comprehensive coverage. This discount is not subject to the Maximum Discount amount.

G. Paid In Full Discount

A five (5)% discount will be applied if the total policy premium is paid in full.

H. Maximum Discount The maximum discount amount per coverage is 35%.

Alabama Rating Plan

9 Edition: 6/15

Section IV: SURCHARGES

Surcharges apply to all coverages unless otherwise noted.

A. Foreign Driver’s License Surcharge Four points (4) will be assessed on any operator who does not have a valid U.S. license, but has a valid foreign or international driver’s license. After a valid U.S. driver’s license has been obtained, the points will be removed at the next renewal if proof is submitted.

B. Unverifiable MVR Surcharge

Two (2) driving record points are assessed on any operator whose driving record cannot be verified by a state’s bureau of motor vehicles.

Drivers with learner’s permits will not be charged during the first policy term; however, the two (2) points will be assessed during the second and in subsequent policy terms if a MVR remains unobtainable. If the individual can produce a photocopy of a valid Alabama driver’s license within thirty (30) days of policy inception, we will not apply the surcharge.

C. Ineligible Risk Surcharge

A 100% surcharge will be assessed to any policy that becomes ineligible due to an endorsement or other action that makes the policy unacceptable. QCIC will cancel or non-renew at the first available opportunity within limits of the cancellation and non-renewal laws of Alabama. We will apply an Ineligible Risk Surcharge from the effective date of the endorsement until the cancellation or non-renewal. This surcharge applies if the current policy becomes unacceptable. It does not apply to new business.

Alabama Rating Plan

10 Edition: 6/15

Section V: RATING FACTORS

A. Policy Term Policy can be written for 6 month terms.

B. Territories

Territories are based on the ZIP code where the vehicle is garaged. The physical garaging address for each vehicle must be provided. Garaging locations outside of Alabama are unacceptable. If the zip code is not listed, use territory 99.

C. Driver To Vehicle Assignment

The policy premium is determined by assigning the highest rated driver to the highest rated vehicle, second highest driver to second highest vehicle, etc. When there are more drivers than vehicles, the drivers with the highest classes will be used to rank the vehicles. When there are more vehicles than drivers, excess vehicles (those vehicles without a corresponding driver) will be rated using the lowest rated driver with zero points. When a driver or a vehicle is deleted, the driver to vehicle relationship will be re-established.

D. Driver Classes

Driver classes are determined based on the driver’s date of birth, sex and marital status.

Marital status is defined as: Single – an operator who is not married or is legally separated; Married – an operator who is living with a spouse and meets the local statutory definition of married. Married status also includes any current customer who becomes widowed and maintains continuous coverage. Inability of married persons to live together due to military service does not deny them the married classification.

E. Driver Exclusions

All residents of the household must be listed as a driver or excluded by completing the Named Driver Exclusion Form on all persons in the household over the age of fourteen (14) not rated on the application. The named insured must sign the Form along with the agent, and no coverage is provided.

All household members who are of eligible driving or permit age must be listed on the application and must be either rated on or excluded (whether they drive or not). Unlicensed operators will be rated on unless excluded. Individuals who have never been licensed or have a permanently revoked license are unacceptable and must be excluded. The named insured cannot be excluded from coverage. Any driver that requires an SR-22 cannot be excluded. The registered owner must be listed as the named insured.

F. Credit

This program does not use credit to determine the premium amount. G. Vehicle Usage

Pleasure Use – vehicles not used for business or commercial purposes. Vehicles used to commute back and forth to work or school, vehicles used primarily on a farm, ranch or orchard. Business or commercial use is excluded from coverage.

H. Model Year

The vehicle’s model year is assigned by the manufacturer. If the auto is rebuilt or structurally altered, then the model year of the chassis determines the model year of the auto.

Alabama Rating Plan

11 Edition: 6/15

I. Symbol The rater will automatically assign the vehicle’s ISO physical damage symbol. Symbols greater than 22 for model years 1990-2010 or greater than 49 for model years 2011 and newer are ineligible for this program. If the symbol is missing use the following conversion chart:

Original Cost New 1989 and

Prior 1990-2010

Original Cost New 2011 and Newer

$0 – 6,500 6,501 – 8,000 8,001 – 9,000 9,001 – 10,000 10,001 – 11,250 11,251 – 12,500 12,501-13,750 13,751–15,000 15,001-16,250 16,251-17,500 17,501-18,750 18,751-20,000 20,001-22,000 22,001-24,000 24,001-26,000 26,001-28,000 28,001-30,000 30,001-33,000 33,001-36,000 36,001-40,000 40,001-45,000

6 7 8 8 10 10 11 11 12 12 13 13 14 14 15 15 16 16 17 18 19

1 2 3 4 5 6 7 8 10 11 12 13 14 15 16 17 18 19 20 21 22

$0 – 3,000 3,001-5,500 5,501-8,000 8,001-9,000 9,001-10,000 10,001-11,000 11,001-12,000 12,001-13,000 13,001-14,000 14,001-15,000 15,001-15,625 15,626-16,250 16,251-16,875 16,876-17,500 17,501-18,125 18,126-18,750 18,751-19,375 19,376-20,000 20,001-20,625 20,626-21,250 21,251-21,875 21,876-22,500 22,501-23,125 23,126-23,750 23,751-24,375 24,376-25,000 25,001-25,625 25,626-26,250 26,251-26,875 26,876-27,500 27,501-28,125 28,126-28,750 28,751-29,375 29,376-30,000 30,001-31,000 31,001-32,000 32,001-33,000 33,001-34,000 34,001-35,000 35,001-36,000 36,001-37,000 37,001-38,000 38,001-39,000 39,001-40,000 40,001-41,250 41,251-42,500 42,501-43,750 43,751-45,000

1 2 3 4 5 6 7 8 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49

Alabama Rating Plan

12 Edition: 6/15

J. Driving Record Driving record points are charged based on the number of chargeable accidents and violations for each operator. Include all violations, convictions, or accidents resulting from the use of any vehicle during the preceding thirty-six (36) months. If a driver is added mid-term, chargeable accidents and violations will be considered for the thirty-six (36) month period prior to the effective date of the current policy term. We will charge for all violations that occurred while the operator was operating a private passenger automobile, commercial automobile, motorcycle or recreational vehicle. If more than one (1) charge results from a single occurrence, use only the conviction or violation that yields the highest point charge unless otherwise stated. Use the conviction date to determine if the accident or violation falls within the chargeable period. Please record all violations on the application, even if points are not charged. Violations and accidents incurred while operating a company or personal vehicle during hours of employment are chargeable. However, accidents incurred by an emergency or law enforcement officer while on duty are not chargeable. Driving record points that expire during the policy term are not removed from the policy until renewal. The policy will not be re-rated until renewal, unless an operator is removed from the policy (no longer a member of the household), then points for that operator will be removed. Any accident that appears on CLUE, MVR reports and/or the application will be charged as at-fault unless proof of not-at-fault is received. Accidents that result in hitting another vehicle or object in an attempt to avoid hitting an animal are at-fault. Accidents are considered not-at-fault if:

the applicant’s automobile was lawfully parked; judgment or reimbursement was obtained from responsible party for 50% or more of the

property damage loss; struck in rear and not convicted of moving traffic violation; struck by a hit-and-run driver and such accident was reported by applicant to the police or

Quality Casualty within 24 hours; and, the accident involves contact with an animal

Alabama Rating Plan

13 Edition: 6/15

K. Violations And Points Assigned Below are the violation categories and points assigned:

Description First Add’l Speeding – All speeding violations not otherwise listed.

1 2

Minor – All minor violations, such as: child restraint; following too closely; failure to stop or yield; drive left of center; improper passing or turning; wrong way; unsafe movement; and defective equipment

1 3

Major – All major violations, such as: felony involving a motor vehicle; any racing or speed contests; homicide, assault, manslaughter or felony homicide; leaving the scene or hit-and-run; fleeing or eluding police; reckless driving; passing a stopped school bus; theft of motor vehicle; drive while license suspended; driving on the wrong side of the road; driving while license revoked; excessive speeding.

5

8

License – Any license violation, such as: fraud securing license; alter or lend license; license restriction violation; or driving without a license

2 3

Alcohol - Any drug or alcohol related violation, such as: DUI of alcohol/drugs; open container; refusal to take test; transporting liquor or careless driving

4 6

At-Fault Accidents- All accidents are considered at-fault unless proof is otherwise submitted of another insurance company’s payment; a police or CLUE report; or a letter from your previous insurance company.

3 4

Other - Unverifiable MVR

2 N/A

Other – Foreign Licensed Operator

4 N/A

Alabama Rating Plan

14 Edition: 6/15

Section VI: UNDERWRITING RULES Quality Casualty Insurance Company has final underwriting approval and reserves the right to decline any risk.

A. Proof of Discounts

Discounts will be applied only if proper documentation is submitted with the application or faxed before the first invoice is mailed. If proof of the discount is not submitted, the policy will be issued without the discount applied. If the missing documentation is submitted within the first 30 days of the policy, then the policy will be endorsed and the discount will be applied back to the policy effective date.

B. Vehicles

All vehicles must be registered to the named insured(s) and must be listed as insured vehicles on the policy.

C. Number of Drivers To Vehicles

Policies with more than one vehicle not assigned to a listed driver are ineligible (i.e., 1 driver and 3 vehicles is not acceptable; 2 drivers and 3 vehicles is acceptable).

A policy may not have more than two (2) extra drivers. For example, a policy with four drivers and two vehicles is acceptable; however, a policy with five drivers and two vehicles is not acceptable.

All household members must be listed on the Declarations page and rated on the policy or excluded from coverage.

This driver ratio applies throughout the policy period and cannot be exceeded through endorsements. If the number of drivers to vehicles ratio is violated through an endorsement, the policy is subject to the “Ineligible Risk” Surcharge.

D. Driving License

The named insured must live in the state of Alabama with a valid physical and mailing address and posses a valid U.S. driver’s license. All other listed operators must possess a valid U.S. or foreign / international driver’s license or be excluded from coverage. MVR’s are required for all drivers to verify their driving record.

If the MVR is missing or unobtainable, an Unverifiable MVR Surcharge will apply.

Drivers with a valid U.S. driver’s license, learners permit or temporary license must convert to an Alabama driver’s license as soon as possible or the policy may be non-renewed.

Foreign and international licenses will be accepted. Each applicant listed on the application will be surcharged four (4) points. The applicant must provide a valid Alabama physical and mailing address.

Alabama Rating Plan

15 Edition: 6/15

E. Out-Of-State Licenses & Risks Out-of-state licenses are acceptable provided the applicant lives in the state of Alabama and provides their valid Alabama physical and mailing address. The applicant should obtain an Alabama license as soon as possible.

If the named insured moves out of state, the policy will be non-renewed.

If one of the drivers or vehicles on the policy moves out of state, but the named insured (and his other vehicles) remains in the state, we will request that the out-of-state driver/vehicle be removed from the policy.

Out-of-state risks such as students away at school and military personnel stationed out-of-state must be rated on or excluded if they are declared a dependent of the named insured and a permanent resident of the household and maintain a valid driver’s license in Alabama.

Vehicles garaged away from the residence are ineligible.

F. Physical Damage Inspection

All vehicles must be inspected by the agent at the time coverage is bound. Agents may not bind coverage for vehicles with existing damage, other than normal wear and tear that is disclosed on the application, unless authorized by underwriting. Photos must be taken of all vehicles requesting physical damage coverage. Please take photos from the vehicle’s rear/left side angle and the front/right side angle. Please maintain a hard copy of the photo in the insured’s file or, if taken digitally, the photo can be stored on a computer hard drive located in the agency office. QCIC reserves the right to request photos during agency audits or claims investigations.

Vehicles older than 20 years are ineligible for physical damage coverage.

Alabama Rating Plan

16 Edition: 6/15

Section VII: UNACCEPTABLE RISKS The following risks are unacceptable:

A. Unacceptable Policies 1. Policies where the named insured does not reside in Alabama and does not have an Alabama

permanent address. 2. Policies where the vehicles are not garaged in Alabama. 3. Policies listing a business, partnership, corporation, organization or anything other than an

individual as the named insured. 4. Drivers whose license is currently suspended. 5. Policies where the named insured is excluded. 6. Any policy with a vehicle used for any type of business or artisan use. Business use is not

covered under this policy. 7. Policies where any driver has been convicted of insurance fraud. 8. Policies where the named insured/applicant is a minor (under age 18). The parent or guardian

must be on the application and listed as the named insured if the driver is a minor. 9. Policies where the named insured/applicant is under 25 years of age unless married. 10. Any policy with more than one (1) vehicle not assigned to a listed operator. 11. Any policy with more than two (2) extra drivers. 12. Any policy with more than four (4) vehicles. 13. Policies with more than 12 points.

B. Unacceptable Coverages

1. Physical damage only policies.

C. Unacceptable Operators/Insureds 1. Operators who have never been licensed; 2. Operators under the minimum age for state licensing; 3. Operators without an Alabama mailing and garaging address; 4. Operators who have a permanently suspended or revoked license, unless that operator is

excluded from coverage; 5. Operators who do not possess a valid U.S. or foreign/international driver’s license; 6. Operators who have been convicted of insurance fraud. 7. Operators requiring a financial responsibility filing in a state other than Alabama. 8. Operators with more than one (1) alcohol related violation. 9. Operators with more than three (3) moving violations in the experience period; a moving

violation is defined as a speed, minor, major, alcohol, or at fault accident. 10. Military risks stationed in Alabama are accepted provided the named insured does not possess

out of state transfer orders. Military risks stationed outside of Alabama are unacceptable. 11. Students attending school in another state. 12. Operators who obtain a permanent residence outside of Alabama during the first sixty (60)

days of the policy term. 13. Operators under the age of 16, except those with a valid license or permit. 14. Operators resident in Alabama less than ten (10) months per year, including migratory risks,

transients, and seasonal workers. 15. Entertainers, celebrities, athletes or any other well-known persons. 16. Operators with medical condition or physical impairments.

Alabama Rating Plan

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D. Unacceptable Vehicles 1. Vehicles garaged outside of Alabama without an AL mailing address. 2. Vehicles with a cost new value in excess of $45,000 or above ISO symbol twenty-two (22)

for model years 2010 and older and symbol forty-nine (49) for model years 2011 and newer. 3. Vehicles without a complete and verifiable AL garaging address. 4. Vehicles with a load capacity (ton rating) in excess of ¾ ton. 5. Vehicles with more or less than four (4) wheels. 6. Vehicles not listed on the declarations page or regularly available to non listed drivers. 7. Liability coverage on vehicles twenty-five (25) years or older. 8. Any vehicles with altered suspensions (including vehicles with lift kits of greater than four

(4) inches), with snowplowing equipment, not registered for street use, or equipped with cooking equipment or bathrooms.

9. Any vehicles with custom equipment – custom equipment or furnishings are ineligible for coverage.

10. Vehicles leased or rented to other operators by the insured/applicant. 11. Commercial vehicle types including step vans, panel vans, flatbed trucks, stake trucks, or

dump trucks. 12. Emergency, public livery or for-hire vehicles. 13. Racing vehicles. 14. Grey market vehicles. 15. Vehicles with a salvage title or previously declared total loss. 16. Conversion vans and stated amount vehicles. 17. Vehicles with an “Incomplete Vehicle” indicator in the VIN. 18. Kit cars, custom cars, dune buggies, bajas and off-road vehicles. 19. Parade or show cars, antiques or classics. 20. Vehicles rented or leased to others, or in a company name. 21. Vehicles used for snow-plowing. 22. Vehicles not licensed for highway use. 23. Vehicles without the registered owner listed on the policy. 24. The following are unacceptable vehicles: Acura NSX, Alfa Romeo, Audi RS & S Models,

AM General, Aro, Aston Martin, Austin-Healy, Avanti, Bentley, Berton, BMW Z8, BMW M models, Baja Bug/Beetle, Bradley, Bricklin, Chevrolet Camaro Z28/SS, Cobra, DeLorean, Daewoo, Dodge Viper, Dodge Shelby, Dodge Stealth, Ferrari, Hummer H1/H2, Fiat Spider, Jaguar, Jensen-Healy, Lamborghini, Lancia, Lotus, Maserati, Mercedes Benz Gelaendewagen, Mercedes Benz AMG Models, MG/MGB, Panoz, Pantera, Police Interceptors, Plymouth Prowler, Pontiac Fiero, Porsche, Rolls Royce, Saleen, Suzuki Samurai, Sterling, Tata, Toyota MR2, Triumph.

E. Unacceptable for Physical Damage

1. Vehicles older than twenty (20) years (for new business and renewal). 2. Stated-value policy. 3. ACV over $45,000. 4. Conversion van, customized pickups, or any customized vehicle or equipment. 5. Trailers and other towed equipment. 6. Salvage or rebuilt vehicles. 7. Any audio or visual equipment, including but not limited to items such as radios, phones,

TV/VCR/DVD’s, radar detectors, personal computers, IPODs or MP3 players, etc. 8. Audi, BMW, Mercedes Benz, Corvette. 9. Any convertible over 8 years old – photos required.

Alabama Rating Plan

18 Edition: 6/15

Section VIII: PAYMENT PLANS Available payment options for new and renewal business are:

• 6 Month Billing – Paid in Full 100% down • 6 Month Billing – 25.0% down with five (5) payments • 6 Month Billing – 20.0% down with five (5) payments for uploaded policies. • 6 Month Billing – 20% down with four (4) payments for uploaded policies AND 0 lapse transfer

policies. • 6 Month Billing – 16.7% down with five (5) payments.

Available payment options for new and renewal policies requiring an SR-22 are:

• 6 Month Billing – Paid in Full 100% down • 6 Month Billing – 50.0% down with five (5) payments

If installments are desired, complete the direct bill section on the application. Collect the required down payment for the selected payment option. Do not deduct commission from the down payment. Submit the insured’s check or money order for each application. If the insured makes their check payable to the agency, the insured’s check should be endorsed over to AssuranceAmerica and forwarded with the application. If the insured’s check for the down payment is returned by the bank for any reason, the policy will be considered null and void. The first installment is due approximately thirty (30) days from inception date. An installment fee will be assessed on each monthly billing. Additional premiums due from uprates or endorsements will be indicated on the billing notice.

Alabama Rating Plan

19 Edition: 6/15

Section IX: FEES

A. NSF Fee A $25 NSF fee is charged in the event the bank returns the payment or installment check. The NSF fee is fully earned.

B. Installment Fee

A $10 installment fee is added to each installment bill ($3 if payment is setup via an automatic EFT from insured’s checking account). The Installment fee is fully earned and will not be charged on the down pay. * Installment Fee may be less than $10 based on the following calculation: (((Policy Premium – Down payment) x Rate^) + $15) / Number of Payments ^ The Rate for 6-month policies is 0.45 and the 12-month rate is .09.

C. SR-22 Fee

A $25 SR-22 fee is applied to each new, renewal or rewritten policy for each driver filing. The SR-22 fee is fully earned.

D. Late Fee A $10 late fee is applied to all payments postmarked or paid after the due date. A partial payment will receive a late fee if the balance is postmarked or paid after the due date. The late fee is fully earned.

E. Policy Fee A $20 fee will be applied to each new, renewal, or rewritten policy to cover the administrative costs associated with selling an automobile insurance policy.

F. Reinstatement Fee

A $15 reinstatement fee is charged when coverage is reinstated following a cancellation or lapse in coverage. The reinstatement fee is fully earned.