GOOD DRIVER PLAN

PURPOSE OF THE GOOD DRIVER PLAN

The Good Driver Plan is a recognition of the fact that car drivers who are accident and conviction free and operate automobiles in a lawful manner are less likely to have future accidents, and, therefore, are entitled to lower auto insurance rates than are drivers who involved in accidents or convicted of traffic violations.

HOW THE GOOD DRIVER PLAN WORKS

The auto insurance company uses a point system under which drivers with accidents and traffic convictions pay higher rates, while drivers with no accidents and convictions are charged the lowest possible insurance premiums. Points are assigned when you, or a driver currently residing in your household and operating your automobiles, are involved in negligent accidents while driving private passenger automobiles or convicted of moving traffic violations than were received while driving any type of vehicle.

Accidents and convictions result in points only occurred during "Experience Period" A. For accidents, the experience period is: 1. For new business, the tree-year period immediately preceding and effective date of policy. 2. For renewals, the thirty-four month (34) period ending 60 days prior to the policy effective date. B. For convictions, the experience period is the thirty-six (36) months period ending on the last day of the fourth (4th) month proceeding the month of the effective date of the policy. The points for all drivers are totaled to develop the policy premium surcharge. The first position is of the class code on the Policy Declarations Sheet indicates the total points assigned. The numbers 0 through 3 indicate the actual number of points applied. The number 4 means 4 or more points. If the first digit is A, the Five Year Driver Discount applies. If the first digit is C, the Five Year Good Driver Discount has been removed. On policies insuring two or more vehicles, the surcharge is divided between the two vehicles developing the highest base premiums for Liability, Basic Personal Injury Protection, and Collision coverages. The Class Code of both will indicate the total number of points. Vehicles in excess of two receive 0 points. Good Driver Plan discounts and surcharges do not apply to the following types of vehicles : Dune Buggies not licensed for road use, Antique Autos, Commercial Vehicles, Golfmobiles of Golf Cars, Mobile Homes, Motorcycles, Snowmobiles, and Trailers, or to Motor Homes used only for recreational purpose if you have other automobiles insured with the Company.

ACCIDENTS

A. Initial Rating (First time rated under the plan) One point shall be assigned for each automobile accident than occurred during the experience period and involved the applicant or any operator currently residing in the applicant's household, while operating any private passenger type automobile than resulted to damage any property, including the applicant's/insured own, in excess of $1.000. However, no points will be assigned for accidents incurred by an operator on a separate car insurance policy. EXCEPTIONS: No points are assigned under Initial Rating for accidents demonstrated to have occurred under the following circumstances: 1. Automobile Lawfully Parked - An automobile rolling from a parked position, however, shall not be considered as lawfully parked, but as the operation of the last operator. 2. Reimbursement- An accident for which you or your car insurance company are reimbursed or have obtained a judgment for one-third of more of your property damage in the accident. 3. Struck In Rear - An accident in which your vehicle is struck in the rear by another, and you, or other operator of your vehicle, are not convicted of a violation in connection with the accident. 4. Other Party Charged - An accident in which the operator of the other vehicle is convicted of a moving violation, and you, or other operator of your vehicle, are not. 5. Hit and Run - An automobile operated by you or a driver on your policy is damaged by a "hit and run" driver, provided the accident is reported to the proper authorities within 24 hours. 6. Animals on Fowl - An accident involving damage by contact with animals or fowl. 7. Flying Gravel, Falling Objects - An accident involving physical damage, limited to and caused by flying gravel, missiles. or falling objects. 8. Emergency Use - Accidents involving the operation of a vehicle in response to an emergency if the operator at the time of the accident was responding to a call to duty as a paid or volunteer member of any Police Fire Department, First Aid Squad, or any law enforcement agency. (This exception does not include an accident occurring after the emergency situation ceases or after the automobile ceases to be used in response to the emergency.) · 9. Not at Fault - An accident resulting in payment under any Personal Injury Protection coverage or in the establishment of a claim reserve under Residual Bodily Injury Liability, and you or the operator of your vehicle were not at fault. 10. An accident while driving a commercial vehicle - No points shall apply to a non-commercial private passenger automobile insurance policy while the insured is operating a commercial vehicle in the course of employment and in the discharge of the employee's duties at the time of the accident, unless the accident is determined to have been caused by the intentional action or gross negligence of the insured. B. Subsequent Rating Under The Plan One point is assigned for each accident during the experience period for which any of the car insurance companies has paid under Property Damage and/or Collision (for single car accidents only) coverages of the policy as a result of any one occurrence, provided that the sum of the loss payment(s) made exceeds $1,000. In determining the sum of such payments claim adjustment expense, bail bond expense and medical first aid expense are excluded. Accidents which were considered in determining points for initial rating will also be included on renewals if still within the experience period. All Exceptions for accidents- Initial Rating will be applicable to accidents- Subsequent Rating.

TRAFFIC CONVICTIONS

Points are assigned for convictions of traffic violations received by regular operators during the experience period. A. Three points are assigned for: 1. Operating a motor vehicle while intoxicated or while impaired by the consumption of alcohol or the use of a drug or 2. Leaving the scene of an accident without stopping to report, or 3. Homicide or assault arising out of the operation of a motor vehicle or criminal negligence in the operation of a motor vehicle resulting in injury or death of another person. B. Two points are assigned for: 1. Driving a motor vehicle in excess of the speed limit resulting in injury or death, or 2. Driving a motor vehicle in a reckless manner resulting in injury or death. Points are assigned for both a chargeable accident and any associated convictions defined above.

INEXPERIENCED DRIVER SURCHARGE

One point is assigned when a principal operator of a vehicle has been licensed less than three years or has less than one year of driving experience in the United States or Canada.

FIVE YEARS GOOD DRIVING DISCOUNT

A Five Year Good Driving Discount will be applied to all eligible vehicles insured under the policy if all of the following criteria are met: 1. At least one principal driver must have five or more years of driving experience. 2. No surcharge points are currently assignable. 3. No regular drivers have been involved in any accidents (which exceed the appropriate threshold) which would have resulted in a surcharge under the Good Driver Plan during the five years immediately proceeding the effective date of the New Business policy or sixty days prior to the effective date of the Renewal policy.

ACCIDENT PREVENTION COURSE DISCOUNT

A discount applies to the Bodily Injury and Property Damage Liability, Basic Personal Injury Protection an Collision coverages of a vehicle if the principal operator of that vehicle has successfully completed an accident prevention course which is approved by the Department of Motor Vehicles. The certificate of completion or a photocopy must be presented to us. The discount applies for a period of 36 months following completion of the course. To receive the discount at the end of this period, the driver must again complete the course and present evidence of completion to us. The exact dollar amount of your discount will be shown on your declaration page.

REFUND OF SURCHARGED PREMIUM

Many car insurance companys will refund or credit your policy when notified that a surcharge should be removed because of the following circumstances: 1. An accident falls under one of the exceptions previously listed; or 2. A conviction for a chargeable violation is reversed; or 3. A surcharge was levied through mistake, carelessness, misinformation or other error; or 4. A reserve was established but no claim was submitted for a period of three years after the date of the accident, or the statute of limitations has run out an no suit has been filed.

WAIVER OF SURCHARGE

The surcharge for an accident will be waived if all of the following are met: 1. the policyholder has been insured with the Company for five or more years; 2. The surchargeable accident occurred after coverage has been in effect for five or more years; 3. The driver, at the time of the loss, was age 21 or older; and 4. There has been no other accident under the policy by a driver age 21 or older during the five year period ending 60 days prior to the loss date which either resulted in a surcharge or was waived under this rule.

CONSUMER REPORT NOTICE

The auto insurance company may obtain a consumer report for this policy and also in the future in connection with any policy reviews or renewals.

MULTI-TIER RATING PROGRAM DISCLOSURE NOTICE

Many car insurance companies utilize a multi-tier rating program. The term "multi-tier" simply means that there are several pricing levels depending on characteristics of each individual policy.
The three rating tiers are ultra-preferred, preferred, and non-standard. The policy declarations page shows the name of the company with which you are insured and the rating tier. Each policy is individually evaluated for tier placement based upon the characteristics of the risk.
If you are in the non-standard rating tier, your rate may be higher than that of a standard car insurance rating policy.