AGENT'S MANUAL Commercial - harfordmutual.biz€¦ · (If you would like to be included in the...

AGENT'S MANUAL

200 NORTH MAIN STREET

BEL AIR, MARYLAND 21014-3544

COMPANY PHONES & CONTACTS

PHONE NUMBERS

Bel Air, Maryland Local (410) 838-4000

Baltimore Metropolitan (410) 879-2360

Washington Metropolitan (202) 898-0707

Maryland WATS 1-800-492-1743

Outside Maryland WATS 1-800-638-3669

Facsimile Machine (FAX) (410) 838-8675

Claims Only FAX (410) 836-0977

Web site: www.harfordmutual.com (If you would like to be included in the Agency Locator page on our web site, please e-mail

your e-mail address and/or your Home page URL to [email protected])

CONTACTS

Commercial Underwriting: ______________________________________________ Personal Lines Underwriting: ____________________________________________ Production Underwriter: ________________________________________________ Other: _______________________________________________________________

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PROFILE

The company we know today as The Harford Mutual Insurance Company was incorporated under Maryland law in 1842 and named the Mutual Fire Insurance Company in Harford County. Numerous locations in Bel Air housed company operations prior to the arrival at 200 North Main Street in 1952. The current corporate name was adopted in April, 1947. Over the years, several companies have merged and have been absorbed by Harford Mutual. In 1988, the company created a wholly-owned stock holding company, Harford Group, Inc. A subsidiary of the holding company, Firstline National Insurance Company, was chartered in Maryland in September of 1988 and is now licensed in Delaware, District of Columbia, Maryland, New Jersey, Pennsylvania, Tennessee and Virginia. Firstline National provides alternative insurance products to policyholders through the independent agency distribution system. Independent agencies represent The Harford Mutual Insurance Companies in the states of Delaware, District of Columbia, Maryland, New Jersey, North Carolina, Pennsylvania, Tennessee, and Virginia. Harford Mutual is located 23 miles northeast of Baltimore, 6 miles west of interstate 95, exit 77. Agents are invited and encouraged to visit our corporate headquarters.

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DIRECTORS

Stephen T. Scott, Chairman Robert D. McDorman

Clarence C. Boyle, Jr. Albert J. Mezzanotte, Jr.

Atwood Collins, III Spencer M. Roman

Donald C. Fry Abigail E. Smith

Steven D. Linkous James J. Kennedy, CPCU, CIC

OFFICERS

President and CEO Steven D. Linkous

Senior Vice President, Commercial Business Services John Goodin, CPCU, CIC, CRM

Vice President – Claims and Corporate Secretary Frank P. Kellner, III, CPCU, AIC

Vice President/Treasurer June A. Poole, AIAF, ARC, APA

Vice President – Marketing and Business Development Jeffrey S. Rink, CPCU

Vice President & Chief Information Officer Timothy Baum, PMOP

Assistant Vice President - Finance Kenneth G. Thompson, CPA

Vice President and Chief Financial Officer Karen Mashinski, CPCU, CPA

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The Harford Mutual Insurance Companies GENERAL

G E N E R A L

MANUALS

We are using the following manuals: Commercial Lines ISO Commercial Lines Manual Workers Compensation Delaware Compensation Rating Bureau National Council on Compensation Insurance New Jersey Compensation Rating & Inspection Bureau Pennsylvania Compensation Rating Bureau Dwelling ISO Dwelling Manual Homeowners ISO Homeowners Manual Personal Inland Marine ISO Personal Inland Marine Manual

APPLICATIONS

We require completed applications on all risks that are submitted for consideration of coverage. They should contain the signature of a licensed agent. The following applications are acceptable: 1. Harford Mutual 2. ACORD Three year currently valued hard copy loss reports will be required on all new business submissions (prior to or at time of binding) for the following:

Contractors, convenience stores, habitational, manufacturing, and industrial & processing risk of any premium size

Restaurants with premium $5,000 and over

Premium $10,000 and over for all classes (except restaurants)

Any risk that warrants loss reports by information contained in the application

All other new business submissions require a completed loss statement on the Acord application or separate document which outlines the losses for the last three years. We utilize APlus loss information as a resource.

BINDERS

A binder should be used as evidence of temporary insurance coverage only when a policy has been ordered, but cannot be issued immediately. The binder should not be issued for a period longer than 30 days. The policy, when issued, should have the same effective date and time as the binder. If a policy is not issued, an earned premium calculated on a pro rata basis is charged for the period of coverage. All binders are to be sent to the office on the day they are issued.

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CANCELLATIONS

In order to make cancellation of insurance policies effective, it is important that all policy provisions, laws, and court decisions be followed exactly. The following rules are all designed to make sure that a policy is actually cancelled and that sufficient evidence is available in the company files to prove it. The cancellation evidence should be forwarded immediately to the company.

A. Cancellation by Insured: 1. Written request signed by first named insured, if applicable, or 2. Return of original policy signed by licensed agent, or 3. Lost Policy Release signed by first named insured, mortgagee (if applicable) and licensed agent.

B. Cancellation by Company or Agent: Evidence of direct notice of cancellation consists of a copy of the cancellation notice with the affidavit of mailing completed

C. Flat cancellation will be allowed only if the company is notified within 30 days of the inception date of the policy.

D. Circumstances pertaining to Items A thru C above should be marked to show the following:

1. Basis (pro rata, short rate or flat) 2. Date of cancellation 3. Reason

E. Reinstatements: After cancellation of a policy becomes effective, coverage may not be reinstated. This is not to be confused with rescinding a cancellation notice. A cancellation notice may be rescinded at any time prior to the effective date of cancellation provided the reason for cancellation has been resolved.

AGENTS LICENSE Agents license processing is a segment of the Marketing Department. Any questions or requests concerning resident or non-resident agents’ licenses should be sent to the license coordinator. All agents, producers, and agencies are to be properly licensed to conduct business with our company.

HARF-O-GRAMS Company policy or procedure changes are communicated via the HARF-O-GRAM.

SUPPLIES Additional supplies may be obtained by contacting the Home Office or your production underwriter.

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BINDING AUTHORITY RULES

I. We will not accept any business (applications, requests for quotations, or binders) from any agent not legally licensed with our companies. We will not accept brokered business.

II. To clarify your authority in perilous weather times the following restriction applies:

“The United States Weather Bureau/National Weather Service” issues a weather “watch”, “warning” or “advisory” when there is a potential threat of severe weather for a particular region.

All States except MD:

A temporary moratorium may be activated to suspend binding authority due to imminent danger from severe weather or other catastrophic events. Catastrophic events are defined as events that cannot be prevented such as earthquakes, tidal waves, volcanic eruptions, severe weather conditions, wildfires, urban fires, civil commotions or other government-declared emergencies. If the National Weather Service issues a tornado, hurricane, or severe weather watch, warning or advisory in any area of the state, no coverage can be bound or increased until the watch, warning or advisory has been lifted and it has been verified that no damage has occurred. In geographic areas where an earthquake has occurred, earthquake coverage cannot be bound for seven days after the initial tremor and it has been verified that no damage has occurred. If the Governor or a governmental entity declares a State of Emergency for the State, either in its entirety or for any part thereof, no coverage can be bound in those areas of the State until the State of Emergency is lifted and it has been verified that no damage has occurred. If the temporary moratorium is based on an announcement of evacuation, whether mandatory or voluntary, the temporary moratorium ends at the expiration of the evacuation period and it has been verified that no damage has occurred. If the temporary moratorium is based on the imposition of a special curfew, the temporary moratorium ends at the expiration of the special curfew and it has been verified that no damage has occurred. These catastrophe rules do not apply to coverage that was bound prior to the implementation of the temporary moratorium or any coverage that is unrelated to the catastrophic event.

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MD only: A temporary moratorium may be activated to suspend binding authority due to imminent danger from severe weather or other catastrophic events. Catastrophic events are defined as events that cannot be prevented such as earthquakes, tidal waves, volcanic eruptions, severe weather conditions, wildfires, urban fires, civil commotions or other government-declared emergencies. A temporary moratorium may not become effective until triggered by at least one of the following events or emergencies: (1) The National Weather Service issues a hurricane or tropical storm watch, warning, or

advisory for part of the State or the entire State. “National Weather Service” is defined as the National Weather Service, National Hurricane Center in Miami, Florida, and it’s regional National Weather Service Forecast Office covering a part of the State;

(2) The Governor or other governmental entity declares a state of emergency for part of the State or the entire state;

(3) The announcement of an evacuation, whether mandatory or voluntary, for part of the State or the entire State;

(4) The imposition of a special curfew for part of the State or the entire State; or (5) The onset of an earthquake that is in an area within:

a. 50 miles of the epicenter of an earthquake that measures 5.0 to 5.9 on the Richter Scale; or

b. 100 miles from the epicenter of an earthquake that measures greater than 5.9 on the Richter scale

The temporary moratorium shall be limited to parts of the state (1) for which the National Weather Service has issued a hurricane or tropical storm watch,

warning or advisory (2) that are included within a government-declared state of emergency (3) that are under an evacuation order whether mandatory or voluntary (4) that are under a special curfew; or (5) that are within

a. 50 miles of the epicenter of an earthquake that measures 5.0 to 5.9 on the Richter scale; or

b. 100 miles of the epicenter of an earthquake that measures greater than 5.9 on the Richter scale.

This moratorium shall be applied only to the lines of insurance business that are reasonably expected to be affected by the events or emergencies listed in this rule that triggered the activation of the temporary moratorium. This temporary moratorium may not be used to deny binding authority or coverage for the following transactions: (1) Property insurance that was bound prior to the activation of the temporary moratorium (2) Automobile liability insurance purchased in connection with the purchase of a new or

used motor vehicle by a consumer (3) Issuance of a policy for which the risk of loss is unrelated to the events or emergencies

listed in this rule. (4) The purchase of additional coverages, endorsements or limits for an existing policy

during its renewal period, subject to any change becoming effective on the renewal date of the policy. For this rule, “renewal period” means the 45-day period immediately prior to the renewal date of the policy.

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MD continued:

Notification to the Commissioner is required once a temporary moratorium is activated. The temporary moratorium must be monitored regularly. Temporary moratoriums will be deactivated when one of the following occurs: (1) For severe weather, the temporary moratorium may not continue for more than 24

hours after the termination of the last hurricane or tropical storm watch, warning, or advisory issued by the National Weather Service for part of the State or the entire State;

(2) For earthquake, the temporary moratorium shall be deactivated no later than 72 hours after the onset of the earthquake. An aftershock that measures 5.0 or greater on the Richter scale that occurs during a temporary moratorium will be treated as the onset of a new earthquake resulting in the beginning of a new 72-hour period during which we may continue to suspend binding authority;

(3) For State of Emergencies activated by the Governor or a governmental entity, the temporary moratorium will end at the expiration of the State of Emergency;

(4) For evacuations, whether mandatory or voluntary, the temporary moratorium ends at the expiration of the evacuation period;

(5) For special curfews, the temporary moratorium ends at the expiration of the special curfew;

(6) The Commissioner may order the end of a temporary moratorium if the Commissioner determines that there is no longer a need for the temporary moratorium.

As required by COMAR 31.08.12.06, the Commissioner will be notified once a temporary moratorium has been activated. An e-mail containing all information required by COMAR 31.08.12.06 D.1 through 7 shall be sent to the dedicated e-mail address [email protected] as obtained through written permission by the Maryland Insurance Administration. III. We will have the option to restrict binding authority during other unusual circumstances by

notifying you directly.

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COMMERCIAL The Harford Mutual Insurance Companies LINES

INTRODUCTION TO COMMERCIAL LINES

Commercial Business Services is responsible for the following lines of business:

I. Commercial Fire II. General Liability III. Commercial Inland Marine IV. Crime V. Glass VI. Commercial Package Program (CPP) VII. Businessowners (BOP) VIII. Commercial Automobile IX. Workers Compensation X. Commercial Umbrella XI. Employment-Related Practices Liability

Company Underwriting guidelines and other useful information for each of these lines are outlined in the pages that follow. Any questions you have may be resolved by contacting your commercial underwriter.

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LINE OF BUSINESS BY COMPANY

Business can be written either in Harford Mutual Insurance Company or Firstline National Insurance Company depending on the state and the line of business. This chart shows which company applies to each line of business. LINE OF BUSINESS STATES HARFORD FIRSTLINE BOP DE, DC, MD, NC, NJ X BOP PA, TN, VA X BOP - Restaurants DE, DC, MD, NJ, PA, TN, VA X BOP - Restaurants NC X BOP - Restaurant Plus DE, DC, MD, NJ, PA, TN, VA X BOP - Restaurant Plus NC X BOP - Printer DE, DC, MD, NJ, PA, TN, VA X BOP - Printer NC X BOP - Contractor DE, MD, NJ, PA, TN, VA X BOP - Contractor DC, NC X BOP - Hotel DE, DC, MD, NJ, PA, TN, VA X BOP - Hotel NC X CPP - Service DE, DC, MD, NJ, NC, PA, TN, VA X CPP - Indust/Process DE, DC, MD, NJ, NC, PA, TN, VA X CPP - Contractor DE, DC, MD, NJ, PA, TN, VA X CPP - Contractor NC X CPP - All Other DE, DC, MD, NJ, NC, X CPP - All Other PA, TN, VA X EPLI DE, DC, MD, NJ, NC, PA, TN X AUTO DE, DC, MD, NJ, NC, PA, TN, VA X AUTO – Bulk Hauler DE, MD, NJ, PA, TN, VA X WORKERS COMP DE, DC, MD, NJ, NC, PA, TN, VA X Preferred Exceptions X UMBRELLA DE, DC, MD, NJ, NC, PA, TN, VA X PERSONAL LINES DE, DC, MD, PA, TN, VA X

NOTE: Multi-state policies will be placed in Harford Mutual if any of the included states are not eligible for Firstline National.

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COMMERCIAL OCCUPANCY LIST

The following commercial occupancies may be bound for the coverages of property, general liability, products liability, completed operations liability, workers’ compensation and inland marine. Binding authority is limited as noted on the appropriate coverage pages. Higher limits of coverage may be available upon approval by your underwriting manager, commercial underwriter or production underwriter. Classes not eligible for binding but reasonably close to a listed occupancy may be submitted for consideration. Please note the following underwriting guidelines: 1. Property coverage must have a fire protection class of 1 through 7. 2. Businessowners policies must be written at a minimum premium of $750 with the following exceptions:

- $500 minimum premium for Offices; - $1,000 minimum premium for Horizon Restaurant and Horizon Restaurant Plus. - $35 minimum premium for Equipment Breakdown

3. Minimum premium of $500 applies to commercial package policies, monoline fire and monoline commercial general liability policies. Policies with Equipment Breakdown will include an additional $35 minimum premium unless the coverage is rejected by the policyholder.

4. Vacant or unoccupied buildings are not acceptable.

I. MERCANTILE RISKS The eligible list for binding by the agent is as follows: *Automobile Parts and Supply Stores - no installation or repair Bakeries - Retail - no frying Beverage Stores Bicycle Stores - sales and servicing - no rentals Books and Magazine Stores *Camera and Photographic Equipment Stores Candy or Confectionery Stores China, Glassware and Pottery Stores *Clothing or Wearing Apparel Stores *Computer Stores *Convenience Stores with or without fuel sales Curtain or Drapery Stores Dairy Products or Butter and Egg Stores Delicatessens - no commercial cooking *Department or Discount Stores *Drug Stores and Apothecaries Dry Goods Dealers - Retail (Including Fabrics, Yarn & Piece Goods) *Electrical Components (Including Computer Sales) *Electronics Stores (Other Than Household Appliances) Equipment, Fixtures for Bars, Hotels, Restaurants Fabric Stores **Floor Covering Stores Florists **Furniture Stores Gift Shops **Grocery Stores

**Hardware Stores - no equipment rental, no repair Hearing Aid Stores Hobby, Model Maker or Artist Supply Stores Home Improvement Stores Hot Tub & Spa Dealers Household Appliances Ice Cream Stores Meat, Fish, Poultry or Seafood Stores *Musical Instrument Stores Nail Salons Newsstands *Office Machines or Appliances retail Optical Goods Stores Paint, Wallpaper or Wallcovering Stores Painting, Picture or Frame Stores Paper or Paper Products Plumbing Supplies & Fixtures Dealers - retail *Radio and Television Sales *Records, Tapes and Sheet Music Stores **Restaurants Sewing Machines and Supplies Shoe Stores Shopping Centers Stationery or Paper Products Stores **Toy Stores Trophy Stores Variety Stores *Video Stores

*Requires Central Alarm System for Special Form Coverage **Some Coverages May Be Subject To Referral

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COMMERCIAL

The Harford Mutual Insurance Companies LINES

II. WHOLESALERS *Appliance Distributors - Household type - Radio, TV or Phonograph

Appliance Distributors - Household Appliances and Home Furnishings NOC *Auto Parts and Supplies Distributors

Baked Goods (no baking on premises) **Barber or Beauty Shop Supplies Distributors (No own-brand retail sales) Bookbinding and Printers Supplies *Clothing or Wearing Apparel Distributors Fabric Distributors **Floor Covering Distributors Florists Fruit or Vegetable Distributors Gardening and Light Farming Supply Grocery Distributors **Hardware and Tool Distributors Hearing Aid Distributors Heating or Combined Heating and Air Conditioning Equipment Distributors Hobby, Model Maker or Artists' Supplies Janitorial Supplies Distributors *Office Machines or Appliances

Optical Goods Distributors Plumbing Supplies and Fixtures Distributors Refrigeration Equipment Distributors Commercial Stationery or Paper Products Distributors **Taxidermists

*Requires Central Alarm System for Special Form Coverage **Some Coverages May Be Subject To Referral

III. HABITATIONAL Apartments, Condominiums, Detached One-Family Dwellings & Duplexes are subject to the following guidelines: 1. Eligibility

- Minimum occupancy rate of 80% - Three year currently valued hard copy loss runs prior to binding - Prior Insurance required - Mixed mercantile is acceptable - Roof must be less than 20 yrs old - Buildings must be updated within the last 15 years - Hard-wired smoke detectors in common areas required - Protection class 1-7 - Fire extinguisher is required on each level - Clothes dryers must be vented to the outside of the building (Solid or semi-flex metal venting) - On-site manager is required for larger apartment complexes - Buildings greater than seven (7) stories must be 100% sprinklered - Plot diagram or distance between buildings is required - Playgrounds must be well maintained - Swimming pools are acceptable but must be fenced with self locking and closing gates. No diving boards

or slides. - Detached one family dwellings & Duplexes must be submitted with photos of the front and back - Habitational survey is required - Bylaws are required for condominiums and homeowners associations (Continued on next page)

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III. HABITATIONAL (continued) 2. Ineligible Exposures

- Vacant or unoccupied buildings - Buildings under construction or renovation - Student housing more than 25% - Armed security employed by the insured - Boarding or rooming houses - Subsidized housing - Aluminum Wiring - Assisted living facilities - Group homes - Use of grills (any kind) on balconies – Grills on ground level decks or patios must be located at least 10 ft.

from any structure or wall. - Dog Parks (Management may approve with proper controls)

3. Directors & Officers Directors and Officers coverage is available for residential condominiums. IV. INSTITUTIONAL Churches or Houses of Worship Cemeteries and Memorial Parks V. OFFICE BUILDING AND OFFICE CONTENTS VI. PROCESSING AND SERVICE RISKS

Appliance and Accessories of a Commercial or Household Nature, involving installation, servicing or repair Bakeries with baking on premises (no frying) Barbershops Beauty Parlors and Hair Styling Salons (no tanning) Dental Laboratories Dry Cleaners Engraving Funeral Homes or Chapels Laundries and Dry Cleaning or Dyeing Receiving Stations Lithography **Machine Shops and Light Manufacturing (no products or completed operations coverage) Mailing or Address Companies Photocopy Services Photo-engraving Photographers Printing Service Clubs (civic and fraternal) Shoe Repair Shops Tailoring or Dressmaking Establishments identified with made-to-order (custom-made) clothing *Television and Radio Receiving Set Installation or Repair *Watch, Clock and Jewelry Repair Wedding Consultants

*Requires Central Alarm System for Special Form Coverage

**Some Coverages May Be Subject To Referral

(Continued on next page) (11/14) Page CL - 5

COMMERCIAL The Harford Mutual Insurance Companies LINES VII. CONTRACTORS - UP TO $3,000,000 IN ANNUAL RECEIPTS ON BOPS UP TO $15,000,000 FOR GENERAL LIABILITY AND CPPS The following guidelines should be observed when considering a contractor submission:

1. Three years in business and/or prior supervisory or management experience in related field. 2. Favorable loss experience. 3. Payroll limited to $500,000 and Subcontractor Exposure Limited to 25% for Contractors that qualify for

Businessowners Policy. 4. Operations that include mostly family members are not acceptable for Workers Compensation. 5. Location of and the telephone number of the office that contains the payroll records are to be included in

the application. If our inspector cannot reach the applicant at the listed address or telephone number, the application may be delayed or declined.

6. Certificates of insurance for subcontractors with limits of at least $500,000 with coverages that are equal to those requested by the applicant are required.

7. Residential Contractors that perform multi-residential construction operations are not permitted. 8. If the insured is a contractor building new residential homes, the contractor should offer a new

construction warranty on each risk. The warranty should provide a minimum of one-year workmanship surety coverage and ten years of structural defect coverage. Protection plan should be approved by the Department of Housing and Urban Development.

9. In addition to a complete Acord Application, a supplemental Contractor's survey (QU007) is required for new submissions. An updated questionnaire will be required every year for residential home builders and every 3 years for all other contractors.

The following types of contractors may be bound subject to the above criteria: Air Conditioning - dealers, installation, service & repair Appliance & Accessories, Commercial Appliance & Accessories, Residential **Carpentry, residential, 3 stories or less Carpentry - Interior Carpet Cleaning Ceiling or Wall Installation - Metal **Concrete Construction Door Window or Assembled Millwork Driveway Parking Area & Sidewalk-paving or repaving **Dry Wall or Wallboard Installation Electrical Work-within buildings Fence Erection Contractors **Floor Covering Installation Furniture or Fixtures - installation **Glass Dealers & Glaziers Heating or Combined Heating & Air – no LPG House Furnishings Installation Interior Decorators

**Landscape Gardening-no tree removal or excavation Lawn Sprinkler Installation Masonry Metal Window Cleaning - 3 stories or less **Metal Erection - decorative **Painting - exterior (3 stories or less) and interior Paper Hanging Plastering or Stucco Work Plumbing - commercial and residential Refrigeration Systems or Equipment - commercial Septic Tank Systems - cleaning **Siding Installation - not over 3 stories **Sign Painting or Lettering - inside **Tile, Stone, Marble, Mosaic or Terrazzo Work - Interior **Window Cleaning - 3 stories or less

**Some Coverages And/Or Lines Of Business May Be Subject To Referral Or May Be Ineligible

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COMMERCIAL LINES QUESTIONNAIRES

The following questionnaires are required on new business: Arbor Program Contractor Survey - Use Form QU012 Required on all Arbor Contractors. Bulk Hauler Survey - Use Form QU009 Required on all Bulk Haulers. Chalet / Resort Community Insurance Program Supplemental Application - Use Form QU008 Required with all Chalet / Resort Community new business applications. Contractor Survey - Use Form QU007 Required on all Contractors. D&O for Homeowners Associations - Use Form QU005 Required to provide Directors & Officers Coverage for a Homeowners Association.

D&O for Residential Condominiums - Use Form QU006 Required to provide Directors & Officers Coverage for a Residential Condominium Association. Habitational Survey - Use Form QU013 Required on all Apartment and Condominium Associations. Hotel Questionnaire - Use Form QU016 Required on all Hotels whether written as a Commercial Package Policy (CPP) or Businessowners Policy (BOP). Liquor Liability Coverage Questionnaire - Use Form ACORD 185 Required when Liquor Liability is requested. Printers E & O Questionnaire - Use Form QU001 Required on all printing operations requesting coverage for Errors & Omissions.

Restaurant Questionnaire - Use Form ACORD 185 Required on all Restaurants whether written as a Commercial Package Policy (CPP) or Businessowners Policy (BOP).

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ENDORSEMENTS AVAILABLE FOR BUSINESSOWNERS POLICIES 1. Exclusion Lead Contamination BPHG10

This endorsement excludes occurrences that result in liability and/or medical payments arising from any form of lead.

2. Physical Damage to Guest's Auto BPHG13 Some insureds need to move or park their clients' autos, due to the nature of their business, even though

they do not have a garage-type operation. Businesses such as funeral homes, restaurants and any other retailer with valet parking are eligible. Coverage limits up to $100,000 are available.

3. Additional Insured - Grantor of Franchise BPHG14 This endorsement adds Grantor of Franchise as an additional insured. 4. Total Liquor Liability Exclusion BPHG15

This endorsement is used to exclude host liquor liability in Pennsylvania and is attached to policies where the insured has a host liquor liability exposure.

5. Businessowners Exclusion - Testing Or Consulting Errors Or Omissions BPHG21

This endorsement excludes occurrences that result in liability and/or medical payments arising from any form of testing or consulting.

6. Businessowners Exclusion – Tanning or Toning BPHG22 This endorsement excludes coverage for all liability arising form tanning or toning devices or equipment

sales. 7. Businessowners Improved Value Endorsement BPHG28 This endorsement provides a broad range of enhancements for all Insureds with Businessowners

Coverage. Refer to the Endorsement for Coverages and Limits. 8. Additional Limits of Insurance for The Businessowners Improved Value Endorsements BPHG29 Limits of insurance provided in BPHG28 Businessowners Improved Value Endorsement or BPHG60

Businessowners Improved Value Endorsement Plus may be increased for Personal Property of Others without regard to legal liability; Personal Property Off Premises; Outdoor Property; Backup of Sewers and Drains; and Lock Replacement.

9. Contractors - Extended Broad Form Endorsement for Real Property Damage BPHG35 This endorsement extends Business Liability to provide property damage for that particular part of real

property on which a named insured contractor is performing operations if the property damage arises out of those operations. Coverage, which is subject to $10,000 per occurrence, $50,000 aggregate Limits of Insurance, also applies to contractors or subcontractors working directly or indirectly on behalf of the named insured.

10. Additional Insured - Owners, Lessees or Contractors - Automatic Status when Required in Agreement with You BPHG37

This endorsement is a blanket Additional Insured Form for Owners, Lessees or Contractors when required in a written contract.

11. Amendment - Aggregate Limits of Insurance (Per Location) BPHG39 The Liability and Medical Expenses Limits of Insurance are amended to extend Aggregate Limits to apply separately to each designated location.

12. Equipment Breakdown Enhancement Endorsement BPHG40 This endorsement modifies coverage to include loss resulting from Mechanical, Electrical and Pressure Systems Breakdown.

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ENDORSEMENTS AVAILABLE FOR BUSINESSOWNERS POLICIES 13. Exterior Insulation and Finish System (EIFS) Exclusion Endorsement BPHG42

This endorsement excludes occurrences that result in liability and/or medical payments arising from any form of Exterior Insulation & Finish Systems (EIFS).

14. Amendment – Aggregate Limits of Insurance (Per Project) BPHG47 The Liability and Medical Expenses Limits of Insurance are amended to extend Aggregate Limits to apply separately to each designated construction project.

15. Snow & Ice Removal Operations Exclusion BPHG49 This endorsement excludes coverage for incidental snowplowing operations. This exclusion is only used if

the incidental snowplowing coverage charge is removed.

16. Limitation of Coverage Real Estate Operations BPHG50 This endorsement is added to all real estate operations to limit coverage.

17. Asbestos Exclusion Endorsement BPHG51 This mandatory endorsement excludes coverage for all liability arising out of, caused by, or attributable to asbestos or asbestos-related products.

18. Theft Limitation For Unscheduled Tools & Equipment BPHG54 This endorsement excludes coverage for theft of unscheduled tools or equipment while in the open and unattended. This endorsement is added to all policies covering miscellaneous unscheduled tools.

19. Business Income Changes – 24 Hour Time Period BPHG56 This endorsement amends the Business Income waiting period from 72 to 24 hours. 20. Additional Insured – Owners, Lessees or Contractors – Completed Operations BPHG57 This endorsement is used to add an additional insured for completed operations if needed to comply with a

contract provision. 21. Tobacco Health Hazard Exclusion BPHG58

This endorsement excludes all liability or damages arising out of or allegedly arising out of health hazards associated with tobacco.

22. Loss Payment – Antiques, Comic Books, Sports Cards & Miscellaneous Collectibles BPHG59 This endorsement specifies that loss or damage to these items shall be adjusted on the basis of the cost to

the insured. 23. Businessowners Improved Value Endorsement Plus BPHG60

This optional endorsement includes all coverages provided by the Businessowners Improved Value Endorsement BPHG28 plus additional coverages for a charge. Refer to the Endorsement for Coverages and Limits.

24. Earlier Notice Of Cancellation Provided By Us BPHG61

This endorsement increases the number of days’ notice required for cancellation for any statutorily permitted reason (other than nonpayment of premium) to an amount that is mutually agreed upon by the insurer and the insured.

25. Limited Fungi Or Bacteria Coverage For Bodily Injury Resulting From The Use of Hot Tubs BPHG62 This endorsement provides limited fungi or bacteria coverage for bodily injury resulting from the use of hot tubs for liability.

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ENDORSEMENTS AVAILABLE FOR BUSINESSOWNERS POLICIES 26. Green Environmental and Efficiency Improvements BPHG64

This endorsement includes additional costs to repair or replace damaged property with green alternatives; cost to hire an accredited green consultant to assist in green design and replacement; certification or recertification in accordance with recognized green authorities and additional costs for the green removal, disposal and recycling of damaged covered property.

27. Opticians and Optometrists Optical and Hearing Aid Establishments Professional Liability BPHG65 This endorsement provides professional liability coverage for bodily injury, property damage, personal injury and advertising injury arising out of the rendering of or failure to render, professional services by an establishment’s certified, licensed opticians, optometrists, or optical and hearing aid specialists while performing services at the designated premises.

28. Windstorm Or Hail Exclusion BPHG66 This endorsement excludes coverage for all liability caused directly or indirectly by Windstorm or Hail.

29. Employee Benefits Liability Coverage BPHG68 This endorsement provides coverage against claims for damages because of the insured’s negligent acts, errors or omissions committed in the administration of an employee benefit program which results in the loss of any or all of an employee’s benefits.

30. Communicable Disease Exclusion BPHG69 This endorsement excludes coverage for all liability arising out of the actual or alleged transmission of a communicable disease.

31. Hotel – Liability For Guests’ Property In Safe Deposit Boxes BPHG70 This endorsement adds coverage for guests’ property held in a safe deposit box on the insured’s premises.

32. Hotels BPHG71 This endorsement provides enhanced coverage for Hotels.

33. Virginia Condominiums, Co-ops, Associations – Directors & Officers Liability BPHG72 This endorsement provides Directors’ & Officers (D&O) Liability Coverage for eligible non-profit condominiums, co-ops and community associations.

34. Virginia Windstorm Or Hail Exclusion BPHG73 This endorsement excludes coverage for all liability caused directly or indirectly by Windstorm or Hail.

35. Include Specified Non-Compensated Officers as Employees BPHG75 This endorsement provides employee dishonesty coverage for non-compensated officers. 36. Include Designated Agents As Employees BPHG76 This endorsement provides employee dishonesty coverage for designated agents. 37. Extended Replacement Cost BPHG77 This endorsement provides an additional 25% building limit for inadequately insured buildings at the time of

loss if the building was adequately insured when written. 38. Earthquake And Volcanic Eruption (Sub-limit) BPHG78

(06/17) Page CL - 10


ENDORSEMENTS AVAILABLE FOR BUSINESSOWNERS POLICIES

39. Exclusion Of Loss Due To By-products Of Production Or Processing Operations for Rental

Properties Endorsement BPHG79 This endorsement explicitly excludes coverage for property damage or business interruption resulting from any substance released in the course of production or processing operations performed at all rental premises covered by the policy. This endorsement must be attached to policies covering rental properties regardless of whether the policy is issued to the owner or tenant.

40. Employment-related Practices Liability Coverage Endorsement BPHG80 This endorsement provides coverage for liability arising out of claims for wrongful acts committed against an

employee because of an employment-related offense, as well as a duty to defend. 41. Assault And Battery Exclusion BPHG81 This endorsement excludes coverage for bodily injury or property damage arising from assault and battery. 42. Product Recall And Correction Of Work Expenses For Printers Errors And Omissions Liability

BPHG82 This endorsement adds coverage for Products Recall And Correction Of Work Expenses to our Printers Errors And Omissions Liability Coverage Endorsement.

43. Virginia Changes Endorsement BPHG83

This endorsement provides the language required in Virginia to provide coverage for the charges made by volunteer fire departments when BPHG28 or BPHG60 are attached.

44. Supplemental Extended Reporting Period Endorsement BPHG90 This endorsement provides a supplemental extended reporting period for Employment-related Practices

Liability coverage. The reporting period can be added for 12 months, 36 months or an unlimited period. 45. Prior Acts Coverage Endorsement BPHG92 This endorsement can be used to extend the coverage provided by Employment Practices Liability to

provide coverage for prior acts.

46. Cyber Liability Endorsement Claims-Made and Reported Coverage ILHG07 This endorsement adds Cyber Liability coverage with a $100,000 limit for each claim and each first party

insured event with a $100,000 aggregate limit.

47. Two Or More Coverage Forms Or Policies Issued By Us ILHG14 This endorsement is added when there are two or more coverage forms or policies issued by us for the

same named insured. This endorsement will prevent stacking of limits.

(06/17) Page CL - 11


ENDORSEMENTS AVAILABLE FOR COMMERCIAL PACKAGE POLICIES (CPP)

1. Special Package Endorsement for Religious Institutions CPHM03 For policies providing at least property and liability coverages, the following coverage extensions are added

at a nominal charge: Other Structures Replacement Cost Outdoor Signs Transit Coverage Theft from Poor Boxes Employees as Additional Insureds Property Off Premises General Liability for Cemeteries at Other Locations Personal Effects and Property of Others Medical Payments for Donated Labor Valuable Papers and Records Inflation Guard

Doubling of Money Coverage during Easter, Thanksgiving, and Christmas FOR PROPERTY COVERAGES

1. Additional Coverage Endorsement CPHG10 This endorsement provides the following additional coverages for a charge: Debris Removal; Fire Department Service Charge; Fire Extinguisher Recharge Expense; Arson, Theft & Vandalism Reward; Additional Pollutant Clean Up And Removal; Utility Services; Employee Theft; Claim Data Expense; Backup of Sewers and Drains; Lock Replacement; Signs Coverage; Limit of Insurance Amendment; Ordinance or Law; Newly Acquired Property; Valuation on Replacement Cost basis for Building Damages; and increases the premises boundary to 1,000 feet. The ACE also includes Brands and Labels; Personal Effects & Property of Others; Valuable Papers; Property Off Premises including salesmen samples; Outdoor Property; Accounts Receivable; Telephone and EDP Equipment (data or media); Fine Arts; Food Spoilage; Money & Securities; Property in Transit; Business Personal Property Seasonal Increase; and Tenants Building Coverage. Also provides coverage for Business Income From Dependent Properties and Food Contamination Shutdown - Business Income. Commercial Package Policies with Special Property Coverage are eligible. (Refer to form for limits).

2. Physical Damage to Guest's Auto CPHG12 Some insureds need to move or park their clients' autos, due to the nature of their business, even though

they do not have a garage-type operation. Businesses such as funeral homes, restaurants and any other retailer with valet parking are eligible. Coverage limits up to $100,000 are available at a modest price.

3. Business Income (And Extra Expense) Annual Loss Sustained - Limited Form CPHG14 This endorsement is available for all policyholders to amend Business Income and Extra Expense form

CP0030 to provide a 365 days maximum period of indemnity up to a requested limit of insurance without a co-insurance restriction. (60 days ordinary payroll limitation applies.)

4. Family Care Homes Building And Personal Property Coverge Form CPHG15 This endorsement provides coverage for household personal property of individuals who reside in, own, and

operate Family Care Homes in the state of North Carolina 5. Condominium Insurer Additional Coverage Endorsement CPHG17 This endorsement includes all of the coverages provided by Additional Coverage Endorsement CPHG10

plus additional coverages and limits as noted on the form. 6. Loss Payment – Antiques, Comic Books, Sports Cards & Miscellaneous Collectibles CPHG18 This endorsement specifies that loss or damage to these items shall be adjusted on the basis of the cost to

the insured.

(07/13) Page CL - 12



7. Contractors Additional Coverage Endorsement CPHG20 This endorsement includes all of the coverages provided by Additional Coverage Endorsement CPHG10

plus coverage for Extra Expense, Unscheduled Buildings, Contractors’ Tools and Equipment, Unscheduled Communication Equipment, Installation Coverage and Installation Soft Costs. (Refer to form for limits).

8. Equipment Breakdown Enhancement Endorsement CPHG40 This endorsement provides coverage for sudden & accidental mechanical and electrical breakdown and

explosion of pressure vessels such as steam boilers.

9. Green Environmental and Efficiency Improvements CPHG42 This endorsement includes additional costs to repair or replace damaged property with green alternatives; cost to hire an accredited green consultant to assist in green design and replacement; certification or recertification in accordance with recognized green authorities and additional costs for the green removal, disposal and recycling of damaged covered property.

10. Extended Replacement Cost CPHG45 This endorsement provides an additional 25% building limit for inadequately insured buildings at the time of

loss if the building was adequately insured when written.

11. Exclusion Of Loss Due To By-products Of Production Or Processing Operations for Rental Properties CPHG46

This endorsement explicitly excludes coverage for property damage or business interruption resulting from any substance released in the course of production or processing operations performed at all rental premises covered by the policy.

12. Key And Lock Replacement CPHG49 This endorsement provides coverage for key and lock replacement due to theft or other loss. 13. Water Damage Deductible CPHG50 This endorsement applies a separate deductible for Water Damage. The Water Damage Deductible does

not apply to losses resulting from Discharge From Sewer, Drain, or Sump (Not Flood-Related) when added to the policy.

FOR GENERAL LIABILITY COVERAGES 1. Funeral Directors or Morticians Professional Liability CGHG03 Coverage for liability for bodily injury, mental anguish, property damage or personal injury losses resulting

from professional services is provided for funeral directors, morticians, and their employees within the policy's liability limit.

2. Exclusion - Lead Contamination CGHG06 This endorsement excludes occurrences that result in liability and/or medical payments arising from any

form of lead. (06/17) Page CL – 13



3. Employee Benefits Liability Coverage Form CGHG08

For an insured's liability in administration of employee benefits programs including: workers compensation, unemployment insurance, social security, disability benefits insurance, group life insurance, group accident

or health insurance, profit sharing plans, pension plans, employee stock subscription plans, savings plans, and vacation plans. Employee Benefits Liability Coverage is on an occurrence basis with a $1,000 deductible per claim.

4. Directors and Officers Liability CGHG09 The liability exposure of directors and officers of residential condominium associations and homeowner

associations is covered by this form. Coverage is on a claims-made basis for up to $1,000,000. There is a 5% participation clause for each loss subject to a maximum of $10,000.

5. Professional Counseling for Religious Institutions Liability Coverage Form CGHG14 This provides coverage for members of the clergy who provide professional counseling or guidance

services. Limits are available up to $1,000,000. 6. Contractors - Extended Broad Form Endorsement for Real Property CGHG15 This form provides coverage for property damage to that particular part of real property on which the named

insured contractor is performing operations if the property damage arises out of those operations. 7. Cemetery Liability Coverage CGHG16 This endorsement modifies general liability coverage to provide additional coverages usual to a not-for-

profit cemetery. 8. Asbestos Exclusion Endorsement CGHG21 This endorsement excludes liability damage arising out of, caused by, or attributable to asbestos or

asbestos-related products. 9. Additional Insured – Homeowners Associations CGHG24 This endorsement provides additional insured status for members of a homeowners association when

providing coverage for the homeowners association. 10. Liability Additional Coverage Endorsement CGHG29

When this endorsement is attached to your policy, the limit for Bail Bonds is increased to $1,000; Damage To Premises You Rent is amended to include damage by lightning or explosion; $25,000 is added for a Limited Exception For A Short-Term Pollution Event; Non-Owned Watercraft coverage is amended to 51 feet long; The General Aggregate Limit is amended to apply separately to each location; The Bodily Injury definition is amended to include Mental Anguish; and the Other Insurance condition is amended for Additional Insureds.

11. Tobacco Health Hazard Exclusion CGHG31 This endorsement excludes all liability or damages arising out of or allegedly arising out of health hazards associated with tobacco.

12. Pool “Pop-Up” Endorsement CGHG34 This endorsement extends coverage to provide property damage to swimming pools damaged by “pop-up”.

13. Assault And Battery Exclusion CGHG38 This endorsement excludes coverage for bodily injury or property damage arising from assault and battery.

(06/17) Page CL - 14



14. Knowledge of Occurrence, Claim, Suit Or Loss CGHG39 This endorsement amends the requirements for reporting and sending claim or “suit” information to us. 15. Unintentional Failure to Disclose Hazards CGHG40 This endorsement amends the Representations Condition regarding unintentional failure to disclose

hazards. 16. Hired and Non-Owned Auto Liability GLHM02 This form permits adding Hired and Non-Owned Auto Coverage to a policy when the insured does not have

an auto policy. 17. Cyber Liability Endorsement Claims-Made and Reported Coverage ILHG07 This endorsement adds Cyber Liability coverage with a $100,000 limit for each claim and each first party

insured event with a $100,000 aggregate limit. 18. Two or More Coverage Forms Or Policies Issued By Us ILHG14 This endorsement is added when there are two or more coverage forms or policies issued by us for the

same named insured. This endorsement will prevent stacking of limits.

FOR INLAND MARINE NON-STANDARD COVERAGES 1. Bailees Customers The coverage is available for Insureds in service businesses, such as appliance repair shops or dry

cleaners, who normally have custody of their customers' property. Coverage can be on a named perils or all risks basis.

2. Contractors Equipment Individual pieces of equipment belonging to a contractor can be insured for named perils or all risks

coverages. These items need to be scheduled with identifying descriptions including make, model, serial numbers, and actual cash value.

3. Electronic Data Processing The EDP coverage form provides broad coverages for either scheduled or unscheduled electronic hardware

and software. Off Premises Power Failure, Loss of Earnings, and Extra Expense endorsements can be added.

4. Installation Floater This coverage is designed for insureds who install merchandise or a product at their customers' premises.

Examples are those insureds whose business is the sale and installation of carpeting, kitchen cabinets, plumbing fixtures or electrical fixtures. Coverage is provided while the items are in transit, while awaiting installation, and during installation.

5. Motor Truck Cargo This named perils form is for insureds who use their own vehicles to deliver merchandise, within a 50-mile

radius, to their customers. It provides a separate coverage limit per vehicle for the property being transported. The vehicles must be described in the schedule.

6. Scheduled Property Scheduled items can be covered for a stated value on either a named perils or all risks basis. Each item's

description must be sufficient to distinguish it from other scheduled items.

(06/17) Page CL - 15



7. Motor Cargo Broad Form Carriers Covers liability of a carrier that is imposed by law or assumed in a contract for described property. 8. Transportation Floater Coverage Form Covers described property of the insured while in transit. 9. Fine Arts Covers scheduled Fine Arts that are owned by the insured. 10. Rental Reimbursement Coverage for Contractors Equipment CMHG15 This endorsement provides rental reimbursement coverage for loss to scheduled contractors equipment.

(06/17) Page CL - 16


ENDORSEMENTS AVAILABLE FOR COMMERCIAL AUTO POLICIES 1. Commercial Auto Coverage Form Index CAIN01 This mandatory index is provided on all automobile policies as a convenience to insureds. 2. Section II – Covered Autos Liability Deductible-Handling of Property CAHG02 This endorsement is added to apply a specified deductible for loading and unloading exposures. 3. Waiver of Transfer of Rights of Recovery Against Others to Us CAHG05 This endorsement is used when a contract requires a waiver of subrogation that applies to auto. 4. Lessor-Additional Insured and Loss Payee (Blanket) CAHG13 This endorsement is used when a Lessor has a requirement in their contract to be added as Loss Payee

and Additional Insured for non-specified vehicles. 5. Punitive Damages Exclusion CAHG14 This endorsement can be attached to exclude punitive damages. 6. Tennessee Lessor – Additional Insured and Loss Payee (Blanket) CAHG16 This endorsement is used in Tennessee when a Lessor has a requirement in their contract to be added as

Loss Payee and Additional Insured for non-specified vehicles. 7. Auto Additional Coverage Endorsement CAHG17 This endorsement provides additional auto coverages, higher limits, and reduced deductibles in all states

except Virginia for a charge. Refer to the form for specific coverages and limits. 8. Auto Additional Coverage Endorsement - Virginia CAHG19 This endorsement provides additional auto coverages, higher limits, and reduced deductibles in Virginia for

a charge. Refer to the form for specific coverages and limits. 9. On Hook Coverage Extension CAHG20 This form modifies the Garagekeepers Coverage form to provide coverage for customer’s autos while on

hook. 10. Pollution Liability–Broadened Coverage For Covered Autos–Business Auto (Limited Form) CAHG21 This endorsement deletes that part of the pollution exclusion and the definition of "covered pollution cost or

expense", for bodily injury, property damage and covered pollution cost or expense relating to discharges of pollutants. Coverage is limited to a $100,000 Limit and a $1,000 deductible.

SELECTION FORMS FOR COMMERCIAL AUTO POLICIES

1. Delaware Motorists’ Protection Act DE FORM A Delaware Personal Injury Protection (PIP) Deductible Notice CA DE 05-1

2. District Of Columbia Selection Of Higher Uninsured Motorists Coverage Limits/Selection Or Rejection Of Underinsured Motorists Coverage DC UM 0609

3. Maryland Selection Of Higher Limits For Uninsured Motorists Coverage MD UM 0111

4. New Jersey Commercial Auto Coverage Selection Form NJCA01

5. North Carolina Selection/Rejection Form Uninsured Motorists Coverage/Combined Uninsured/ Underinsured Motorists Coverage NC UM 0910

6. Pennsylvania Commercial Auto Option Selection Form CAPA00-6 Pennsylvania Rejection Of Stacked Uninsured Coverage Limits CAPA00-3 Pennsylvania Rejection Of Stacked Underinsured Coverage Limits CAPA00-4

7. Tennessee Uninsured Motorists Coverage Selection/Rejection TN UM 1216

8. Virginia Selection Of Lower Uninsured Motorists Coverage Limits VA UM 0107

9. ACORD Selection Forms

(07/17) Page CL - 17


SPECIAL PROGRAMS

BUSINESSOWNERS POLICIES 1. Horizon Series - Restaurant Program BOP eligibility is extended to include small restaurants with less than $6,000,000 in sales, beer, wine, and

liquor totaling less than 25% of sales, and up to 7,500 square feet. Liquor liability coverage is available in Delaware, District of Columbia, Maryland, New Jersey, North Carolina, Pennsylvania, Tennessee & Virginia. Refer to Restaurant Program Eligibility (RPE-01) for complete information.

2. Horizon Series - Restaurant Plus Program BOP eligibility for restaurants with less than $12,000,000 in sales, beer, wine, and liquor totaling less than 50% of sales and 10,000 square feet in size. Liquor liability coverage is available in Delaware, District of Columbia, Maryland, New Jersey, North Carolina, Pennsylvania, Tennessee & Virginia. Refer to Restaurant Program Eligibility (RPE-01) for complete information.

3. Fine Dining Program Fine Dining may be written on a Businessowners policy subject to specific guidelines. A Fine Dining

restaurant is defined as a full service restaurant with an upscale menu and extensive beverage selection. They typically offer a more sophisticated décor and ambiance, with a highly appointed interior, white tablecloths, and other high-end finishes. The wait staff is well-trained and often wears more formal attire. The menu is frequently à la carte, and the average meal price, inclusive of an entrée, one drink, and tip is in excess of $35.00. Refer to Restaurant Program Eligibility (RPE-01) for complete information.

4. Horizon Series - Printers Program This program is for qualifying commercial or job printers, including quick print shops. In addition to the

usual optional coverages, Printers E & O is available.

5. Horizon Series - Funeral Home Program Funeral homes and chapels may be written on a businessowners policy. Professional Liability may be

included for the director.

6. Horizon Series - Barber and Beauty Shop Program Barber and Beauty Shops may be written on a businessowners policy. Professional liability for beauticians, barbers, and manicurists may be included.

7. Resort Community Insurance Program For qualifying risks in Maryland, North Carolina, Pennsylvania, Tennessee and Virginia a Businessowners

Policy is available. Refer to Specific guidelines for the Resort Community Insurance Program.

8. Habitational Program For qualifying habitational risks a Businessowners Policy is available. Habitational Risks include

Apartments, Condominiums and Dwellings. Refer to Habitational guidelines.

9. Hotel Program Hotels may be written on a Businessowners policy subject to specific guidelines. A hotel is defined as a commercial establishment intended to provide short-term lodging for traveling motorist, where meals and other facilities such as conference rooms are available and do not have rooms accessible directly from the parking lot.

(09/15) Page CL - 18


COMMERCIAL FIRE

BINDING AUTHORITY (subject to limitations of the occupancy page, underwriting rules, and any other restrictions found in this manual.) Protection Class

1-7 Non-Sprinklered Restaurants Frame, Masonry and Non Combustible $ 1,000,000* All Other Property Fire Resistive/Masonry Non-Combustible $ 5,000,000* Masonry $ 5,000,000* Frame/Non-Combustible $ 2,500,000*

(*Total of Building, Personal Property and Loss of Business Income)

Minimum Dwelling Limit Minimum Dwelling Value: $150,000 INSURANCE SERVICES OFFICE (ISO) RATING - Loss costs apply

Please refer to most recent HARF-O-GRAM for applicable Loss Cost Multipliers BUILDING VALUES Building limits should be written at the current cost of re-construction. Agents should review all building limits carefully to determine if the building is insured to value. Particular attention should be given to buildings subject to coinsurance penalties or insurance-to-value provisions. Building limits may change at renewal based on the inflation percentage related to the zip code of the property per the CoreLogic National Building Cost Trends. The company performs estimated valuations based on limited information. These valuations are generalized ESTIMATES ONLY and do not contain individual risk specifics. The company is not responsible for building values that do not meet the insurance-to-value or coinsurance provisions at the time of loss. The following coverage/options may not be available if buildings are inadequately insured to value:

Agreed Value

Blanket Limit of Insurance

Replacement Cost

Extended Replacement Cost Endorsement – CPHG45 SPRINKLERED BUILDINGS EQUIPPED WITH AUTOMATIC SPRINKLER SYSTEM

Any building equipped with an automatic sprinkler system and receiving a sprinkler credit will include the Protective Safeguard Endorsement and Protective Safeguard Endorsement Advisory Notice to Policyholders. It is the agent’s responsibility to explain the purpose of this endorsement with the policyholder since coverage may be voided for the fire peril if the policyholder and/or owner of the building fail to maintain and service an operational sprinkler system.

(05/17) Page CL- 19


GENERAL LIABILITY

BINDING AUTHORITY (subject to limitations of the occupancy page, underwriting rules, and any other restrictions found in this manual.) $1,000,000 Combined Single Limit INSURANCE SERVICES OFFICE (ISO) RATING - Loss costs apply Please refer to most recent HARF-O-GRAM for applicable Loss Cost Multipliers CONTRACTOR CLASSIFICATIONS 91111 Air Conditioning Systems or Equipment 91150 Appliance Installation/Service/Repair - Commercial 91155 Appliances and Accessories Installation 91340 Carpentry - Residential (excluding multi- residential construction) 91341 Carpentry - Interior 91342 Carpentry - NOC 91343 Carpentry - Shop Only 91436 Ceiling or Wall Installations - metal 91560 Concrete Construction 91580 Contractors - Executive Supervisors 91746 Door, Windows or Millwork Installation – Metal 92215 Driveway, Parking Area or Sidewalk Paving or Repaving 92338 Dry Wall or Wallboard Installation 92478 Electrical Work Within Buildings 94007 Excavation (written with other acceptable classes) 94276 Fence Erection 94569 Floor Coverings - Installation - Not Ceramic or Stone

95124 Furniture/Fixtures Installation - Portable 95410 Grading of Land (written with other acceptable classes) 95647 Heating and/or Air Conditioning (no L.P.G.) 96053 House Furnishings Installation, NOC 96611 Interior Decorators 97447 Masonry 97650 Metal Erection - Decorative or Artistic 98304 Painting - Exterior (No spray painting) 98305 Painting - Interior - Buildings or Structures 98308 Painting - Shop Only 98344 Paperhanging 98449 Plastering or Stucco Work 98482 Plumbing - Commercial 98483 Plumbing - Residential and Domestic 98636 Refrigerator System or Equipment 98884 Sheet Metal Work - Outside 98967 Siding Installation 99650 Television or Radio Receiving Set Installation or Repair 99746 Tile, Stone, Mosaic or Terrazzo Work – Interior

1. Contractors up to $15,000,000 in receipts may be submitted.

(11/12) Page CL - 20


EMPLOYMENT RELATED PRACTICES LIABILITY - MONOLINE (Not available in Virginia)

BINDING AUTHORITY NONE INSURANCE SERVICES OFFICE (ISO) RATING - Loss costs apply Please refer to most recent HARF-O-GRAM for applicable Loss Cost Multipliers NOTE: Employment Practices Liability must be a part of an otherwise acceptable account. LIMITS (Refer to Company)

(08/13) Page CL - 21


COMMERCIAL INLAND MARINE

BINDING AUTHORITY (subject to limitations of the occupancy page, underwriting rules, and any other restrictions found in this manual.) $100,000 total schedule NOTE: Inland Marine cannot be bound except as part of an otherwise acceptable account. REFER TO COMPANY FOR RATES

(09/07) Page CL - 22


COMMERCIAL CRIME

BINDING AUTHORITY (subject to limitations of the occupancy page, underwriting rules, and any other restrictions found in this manual.) NOTE: Commercial Crime cannot be bound except as part of an otherwise acceptable account. INSURANCE SERVICES OFFICE (ISO) RATING - Loss costs apply Please refer to most recent HARF-O-GRAM for applicable Loss Cost Multipliers LIMITS $100,000 Maximum for any one coverage.

(09/07) Page CL - 23


HARFORD MUTUAL COMMERCIAL PACKAGE POLICY (CPP)

BINDING AUTHORITY (subject to limitations of the occupancy page, underwriting rules, and any other

restrictions found in this manual.)

Property

Protection Class 1-7

Non-Sprinklered Restaurants Frame, Masonry and Non Combustible $ 1,000,000* All Other Property Fire Resistive/Masonry Non-Combustible $ 5,000,000* Masonry $ 5,000,000* Frame/Non-Combustible $ 2,500,000*


Liability $1,000,000 Combined Single Limit

Inland Marine $100,000 total schedule ($250,000 for Accounts Receivable and Valuable Papers (if there is

back-up of records)

I. INSURANCE SERVICES OFFICE (ISO) RATING - Loss costs where applicable

Please refer to most recent HARF-O-GRAM for applicable Loss Cost Multipliers

II. CPP DEVIATIONS – Deviations apply where applicable.

Please refer to most recent HARF-O-GRAM for applicable Deviations

III. CONTRACTORS: Quick Quotes for contractors are provided for rating convenience.

BUILDING VALUES Building limits should be written at the current cost of re-construction. Agents should review all building limits carefully to determine if the building is insured to value. Particular attention should be given to buildings subject to coinsurance penalties or insurance-to-value provisions. Building limits may change at renewal based on the inflation percentage related to the zip code of the property per the CoreLogic National Building Cost Trends. The company performs estimated valuations based on limited information. These valuations are generalized ESTIMATES ONLY and do not contain individual risk specifics. The company is not responsible for building values that do not meet the insurance-to-value or coinsurance provisions at the time of loss.

(05/17) Page CL – 24


HARFORD MUTUAL COMMERCIAL PACKAGE POLICY (CPP)

(Continued) SPRINKLERED BUILDINGS EQUIPPED WITH AUTOMATIC SPRINKLER SYSTEM


(07/13) Page CL – 25


FIRSTLINE NATIONAL COMMERCIAL PACKAGE POLICY (CPP)


restrictions found in this manual.)

Property





Inland Marine $100,000 total schedule ($250,000 for Accounts Receivable and Valuable Papers (if there is

back-up of records)

I. INSURANCE SERVICES OFFICE (ISO) RATING - Loss costs where applicable

Please refer to most recent HARF-O-GRAM for applicable Loss Cost Multipliers

II. CPP DEVIATIONS – Deviations apply where applicable.

Please refer to most recent HARF-O-GRAM for applicable Deviations

III. CONTRACTORS: Quick Quotes for contractors are provided for rating convenience.

BUILDING VALUES Building limits should be written at the current cost of re-construction. Agents should review all building limits carefully to determine if the building is insured to value. Particular attention should be given to buildings subject to coinsurance penalties or insurance-to-value provisions. Building limits may change at renewal based on the inflation percentage related to the zip code of the property per the CoreLogic National Building Cost Trends. The company performs estimated valuations based on limited information. These valuations are generalized ESTIMATES ONLY and do not contain individual risk specifics. The company is not responsible for building values that do not meet the insurance-to-value or coinsurance provisions at the time of loss.

(05/17) Page CL - 26


FIRSTLINE NATIONAL COMMERCIAL PACKAGE POLICY (CPP)

(Continued) SPRINKLERED BUILDINGS EQUIPPED WITH AUTOMATIC SPRINKLER SYSTEM


(07/13) Page CL – 27


BUSINESSOWNERS (BOP)

BINDING AUTHORITY (subject to limitations of the occupancy page, underwriting rules, and any

other restrictions found in this manual.)

Property





INSURANCE SERVICES OFFICE (ISO) RATING - Loss costs apply Please refer to most recent HARF-O-GRAM for applicable Loss Cost Multipliers

PAYROLL LIMITATION: Contractors - $500,000

SUBCONTRACTOR LIMITATION: Less than 25% Subcontracted Work

RECEIPTS/SALES LIMITATIONS: Horizon Restaurant Program $6,000,000

Horizon Restaurant Plus Program $12,000,000 Horizon Printers Program $8,000,000 Contractors $3,000,000 All Other Classes $12,000,000 BUILDING VALUES Building limits should be written at the current cost of re-construction. Agents should review all building limits carefully to determine if the building is insured to value. Particular attention should be given to buildings subject to coinsurance penalties or insurance-to-value provisions. Building limits may change at renewal based on the inflation percentage related to the zip code of the property per the CoreLogic National Building Cost Trends. The company performs estimated valuations based on limited information. These valuations are generalized ESTIMATES ONLY and do not contain individual risk specifics. The company is not responsible for building values that do not meet the insurance-to-value or coinsurance provisions at the time of loss. The following coverage/options may not be available if buildings are inadequately insured to value:

Blanket Limit of Insurance

Replacement Cost

Businessowners Improved Value Endorsement – BPHG60

Extended Replacement Cost Endorsement – BPGH77

Removal of Insurance to Value Provision – BP0483

(05/17) Page CL - 28


BUSINESSOWNERS (BOP) (Continued)

SPRINKLERED BUILDINGS EQUIPPED WITH AUTOMATIC SPRINKLER SYSTEM


(07/13) Page CL – 29


COMMERCIAL AUTOMOBILE BINDING AUTHORITY Liability - $1,000,000 Uninsured/underinsured motorist - $1,000,000 Physical Damage - Values up to $80,000 per vehicle INSURANCE SERVICES OFFICE (ISO) RATING - Loss costs apply Please refer to most recent HARF-O-GRAM for applicable Loss Cost Multipliers We write risks that have: RADIUS OF OPERATION: 100 miles or less and GROSS VEHICLE WEIGHT: 20,000 pounds or less

We do not write: More than $1,000,000 total uninsured/underinsured motorist limits when stacked coverage is provided in Pennsylvania.

TOWING AND LABOR COSTS: Available for PRIVATE PASSENGER TYPE AUTOS ONLY

PHYSICAL DAMAGE COVERAGE FOR HIRED AUTOS: Limits not exceeding the scheduled autos, with a maximum limit of $80,000.

(05/10) Page CL - 30


COMMERCIAL AUTOMOBILE

The following CLASSES ARE NOT ACCEPTABLE: * Long Haul Trucking * Trucks hauling gasoline, fuel oil, explosives, or pollutants * Towing Operations * Route Delivery (newspaper, ice cream, snow ball, milk, etc.) * Public or Private Livery * Taxis and public passenger buses (Church buses 20 passenger or less can be accepted) * Emergency Vehicles * Commercial renting or leasing operations * Principally sales operations with predominantly on-road exposure * Vehicles that are primarily used for personal use

The following VEHICLES ARE NOT ACCEPTABLE: Sports and High Performance cars - such as Corvette, Porsche, Jaguar (Performance Identification Symbols: “h”, “i”, “s”) Mopeds, motorcycles and motorhomes Special equipped vehicles - such as custom vans and special use items Vehicles garaged in a state in which we are not licensed.

Drivers: We require a list of all OPERATORS including any family members that may drive company vehicles. Include information required to order motor vehicle reports. We also require OPERATORS to have at

least three years driving experience.

The following are NOT ACCEPTABLE: Operators with more than 2 MOVING VIOLATIONS (including accidents) within the last 3 years Operators with 1 MAJOR VIOLATION within the last 3 years (such as DWI, LEAVING THE SCENE OF ACCIDENT, RECKLESS DRIVING OR ANY OTHER DRUG OR ALCOHOL RELATED INCIDENT.) Operators with more than 1 ACCIDENT within the last 3 years Drivers/Employees without a valid US Drivers License

(11/08) Page CL - 31


WORKERS COMPENSATION – HARFORD MUTUAL


Restrictions found in this manual.) Employers Liability - $500,000/$500,000/$500,000 NOTE: There is no binding authority for risks that have an Experience Modification factors over 1.00.

Coverage cannot be bound without an employer ID number (Federal ID number for corporation or Social Security number for individual.) In New Jersey, coverage cannot be bound without a New Jersey Tax ID number.

In New Jersey, managed care must be offered to all insureds. A signed consent form should be attached to all submissions. A 15% credit will apply if managed care is accepted.

LOSS COST FACTORS Refer to company for current applicable Loss Cost factors.

OFFICER EXCLUSIONS Agents are responsible for submitting the appropriate signed and completed officer exclusions as required by each state.

DIVIDENDS Dividends may be declared by the Board of Directors but are not guaranteed.

SUPPLEMENTAL APPLICATION SAWCNC 001 - North Carolina Workers Compensation Application addendum is required in North Carolina.

New business and renewals will be written in accordance with these guidelines.

(06/16) Page CL – 32


WORKERS COMPENSATION - FIRSTLINE NATIONAL


Restrictions found in this manual.) Employers Liability - $500,000/$500,000/$500,000 AVAILABILITY: Available in all states except North Carolina. Subject to Approval by Underwriter.

NOTE: There is no binding authority for risks that have an Experience Modification factors over 1.00. Coverage cannot be bound without an employer ID number (Federal ID number for corporation or Social Security number for individual.) In New Jersey, coverage cannot be bound without a New Jersey Tax ID number.

In New Jersey, managed care must be offered to all insureds. A signed consent form should be attached to all submissions. A 15% credit will apply if managed care is accepted.

LOSS COST FACTORS Refer to company for current applicable Loss Cost factors.

OFFICER EXCLUSIONS Agents are responsible for submitting the appropriate signed and completed officer exclusions as required by each state.

SUPPLEMENTAL APPLICATION SAWCNC 001 - North Carolina Workers Compensation Application addendum is required in North Carolina.

New business and renewals will be written in accordance with these guidelines.

(06/16) Page CL - 33


WORKERS COMPENSATION

DIVIDENDS (Harford Mutual Insurance Company Only)

Policies are eligible for a dividend if the following criteria is met:

DATE INCURRED LOSS RATIO PREMIUM ELIGIBILITY DIVIDEND PERCENTAGE Prior to 1-1-08 0 - 34.9% $15,000 and over 10% 1-1-08 and after 0 - 34.9% $30,000 and over 10% The premium eligibility is the premium developed by the audit excluding the Expense Constant and all policy surcharges. In order to be eligible for a dividend, all premiums including the Final Audit Premium must be paid. Policies cancelled during the policy term, are not eligible for a dividend. The dividend is forfeited for any policy for which all premiums have not been paid or the audit has been returned as uncollectible even if the premiums owed are subsequently paid. The dividend will not be used to offset any premiums owed. The dividend will be computed in the tenth month after the expiration of the Policy but not before 60 days after the final audit of the policy is completed and billed. Incurred losses shall include all paid losses, loss adjustment expenses and reserves for open claims valued at ten (10) months after the expiration of the policy. Once a dividend has been paid, the question of reserves is concluded and neither the Company nor the Insured shall have the right to recalculate the dividend settlement. *Dividends cannot be guaranteed in advance and are payable only upon declaration by the Board of Directors.

(11/07) Page CL - 34


COMMERCIAL UMBRELLA

BINDING AUTHORITY: NONE

We will only be able to accept new or renewal Commercial Umbrella business if all underlying Premises-Operations, Products-Completed Operations, and Automobile coverages are written in our company. The underlying Employers Liability coverage may be written with another carrier if the carrier has a BEST’S rating of “B+” or better. Underlying policies for new or renewal business should have policy dates concurrent with the Umbrella policy. • Minimum General Liability underlying limits of $1,000,000/$1,000,000 will be required. • Commercial Automobile underlying limits must be at least $1,000,000. • Employers Liability underlying limits can be written at the standard $100,000/$500,000/$100,000 Limit. • The underlying limits shall be Combined Single Limits Bodily Injury and Property Damage for both Auto and

General Liability. An application is required for all new policies unless submitted through RapidWrite. All portions of the application must be completed and the application must be signed by the agent and policyholder. A renewal application will be required every three years.

(10/12) Page CL – 35


AUDIT PROCEDURES TELEPHONE AUDITS

Final audit information may be performed as a telephone audit by company personnel or independent auditing firms. Phone calls will be made to the insured or his representative to obtain the information. If the audit is not completed after the third attempt, the current coverage may be subject to cancellation.

PHYSICAL AUDITS

The premium adjustment report form is sent to an independent auditing firm. They will make contact with the insured or his representative to set an appointment for the auditor to obtain the necessary audit information. The auditor will visit the insured or his representative, obtain the audit information and report it to the company. If the auditor is unable to obtain the audit information after three (3) attempts, the request will be returned to the company. This may result in cancellation of the current coverage.

AUDIT ADJUSTMENT REPORT

Upon receipt of the audit information, the audit is issued. The form will show the classifications applicable to that account, the audited exposure for each class, the rates and the premium. It will also show the additional or return premium resulting from the premium audit.

ENDORSEMENTS

When the audit premium produces a 10% increase and results in a change of premium of at least $500, the current policy terms will be endorsed to reflect the changes in exposure. Additional and Return Premiums of $15 or less are waived unless they are requested by the insured.

(01/09) Page CL - 36


UNCOLLECTIBLE AUDIT PROCEDURES

If additional premium resulting from premium audits becomes uncollectible, the following procedure must be followed by the Agency in returning the audits to the Company. 1. The Agency must send written notification to the company that the audit is uncollectible within 60 days of

the issue date of the audit. The notification must be accompanied by copies of the billing to the insured and any related correspondence.

2. Upon receipt of the notification, the audit premium will be deleted from the agents account and placed in a

Collection Account. Once these transactions are made, no commission will be paid to the agency for any premium collected. Additionally, any current coverage will be cancelled for non-payment of premium.

3. Correspondence will be sent to the insured by the Company General Counsel requesting payment of the

audit premium. If the collection includes Workers' Compensation coverage, notification will be sent to the applicable Rating Bureau notifying them of the outstanding balance on the Workers' Compensation policy.

4. Any account which has an uncollectible audit for their Workers' Compensation policy forfeits any Dividend

which would have otherwise been due on that policy. 5. The file will then be referred to the Accounting Department for assignment to an attorney or collection

agency.

(11/06) Page CL - 37


LOSS CONTROL SERVICES

A quality, on time, loss control report is important to the function of underwriting and directly affects the profitability of the business that Harford Mutual writes. Therefore, with few exceptions, Harford Mutual physically inspects every piece of new business issued by the company, and also, upon the discretion of the underwriter, may obtain a pre-inspection on certain occupancies prior to binding. On contractor type accounts, a Contractors Survey is requested from the insured. Reinspections may be scheduled routinely at the discretion of the underwriter or to check on the compliance of previous recommendations. Routine reinspections are scheduled on the basis of the occupancy. All inspections are routinely checked for quality. Harford Mutual will utilize our own staff inspectors, as well as, those from independent inspection services where our staff is not located. Our required turn around time for these inspections is 30 days from the date the inspection is received by the inspector. While we encourage our inspection services to contact the insured prior to an inspection, there are times that an inspection will be completed without making contact. If during the inspection deficiencies are noted, recommendations will be written by the inspector and made part of the inspection report and forwarded to underwriting. We do encourage the inspector to discuss these recommendations in general with someone of authority at the risk but no action should be taken until written confirmation is received. Our underwriting department will forward a copy of the recommendations directly to the agent whose responsibility it is to forward on to the insured. If the insured does not comply with the loss control recommendations, the risk does not meet our underwriting guidelines, or there is a severe increase in hazard, we will send cancellation or non-renewal notice subject to individual state guidelines. At Harford Mutual, we realize these inspectors are the only people, other than the agent, to deal directly with an insured and they must represent Harford Mutual on a very high standard. It is our goal to combine a quality loss control report with good underwriting decisions to continue to write profitable business.

(11/06) Page CL - 38


TIP SHEETS: TECHNICAL INFORMATION PAGES

Technical Information Pages are designed to provide technical loss control information in a brochure fashion to assist insureds, agents, and employees with certain loss control issues. The following TIP pages are available: TIP 2008-01 Fire-Extinguishing Equipment for Restaurants TIP 2008-02 Baffle Protection for Deep Fat Fryers TIP 2008-03 Grease Removal Devices - Filters TIP 2008-04 Wet Chemical K Fire Extinguishers TIP 2008-05 Restaurant Hood & Ductwork Cleaning TIP 2008-06 Inspection of Fire-Extinguishing Systems TIP 2008-07 Manual Activation of Fire-Extinguishing Systems TIP 2008-08 Raised Seating Areas, Casualty Hazard

TIP 2009-13 Ladder Safety

TIP 2010-14 Aluminum Wiring

(03/10) Page CL - 39


INSTALLMENT PAYMENT PLANS & FEES 1. ELIGIBILITY REQUIREMENTS

All policies issued by one of the Harford Mutual Insurance Companies are eligible to be placed on an installment payment plan.

2. PAY PLANS Plan A – 3 payments 40% due on the effective date and 30% in the 3

rd and 5

th policy months.

Plan C - 7 payments: 25% due on the effective date and 12.5% in each of the next six policy months.

Plan E -10 payments: 10% due on the effective date and 10% in each of the next nine policy months.

Plan F - 4 payments: 25% due on the effective date and 25% in each of the 3rd, 5th and 7

th policy months.

Plan G – 3 payments (for audits only): 33 1/3% due 20 days from when audit endorsement was processed and 33 1/3% in the next 2 consecutive months. Plan S - 2 payments (currently unavailable): 50% due on the effective date and 50% in the 6th policy month. Plan X One installment for annual premium.

3. ENDORSEMENTS All endorsements both additional and return premiums will be spread over the remaining installment payment periods, based on the effective date of the endorsement. Note, if an endorsement is processed with a retroactive effective date, the impact on the next billing statement will be greater than the impact on the additional remaining installments.

4. FEES $3.00 Installment fee – applies at the policy level to all installments except the first installment. $5.00 late fee- applies at the policy level whenever a cancellation notice for non-payment of premium

is processed. $25.00 Non-sufficient Fund Check Fee – applies to all checks returned by the bank for non-sufficient funds.

(08/13) Page CL - 40


COMMERCIAL DIRECT BILL

In an effort to provide better service to our insureds and your customers, direct bill is available. This is being provided at no charge. We encourage you to use this with your valued customers.

Eligibility: Any commercial policy: A. $500 annual account premium. B. Commercial policies including Fire, Liability, Workers Compensation, Commercial Package Policy, Businessowners, Automobile, Inland Marine and Commercial Umbrella.

Overview: Depending on the payment play chosen the insured will be billed once a month, with one statement for all policies that are linked by the billing customer number under the company Direct Bill Plan. The insured will be billed on the same day each month during the payment period. It is recommended that all policies for the same insured have concurrent policy dates. It is recommended that all policies for the same insured have the same pay plan. Each insured will be assigned a six-digit billing customer number. This billing customer number will be used on every policy issued for the insured that is on the Direct Bill Plan. We cannot direct bill a policy that has already been issued after the inception date nor will we be able to change the payment method once the Direct Bill Plan has been established. Any changes can be accomplished at next renewal.

Down Payment: A cash down payment may be required on all Direct Bill accounts as noted below:

New Business: RapidWrite submitted applications do not require a down payment. We require a 20% down payment for all non-RapidWrite submitted applications received at least 30 days prior to the inception date. A 10% down payment is required for applications at least 60 days prior to inception date. All other non-RapidWrite applications will require a 25% down payment.

Renewals: No down payment will be required if you notify us 60 days before the expiration date that you

want the renewal policy on direct bill. A 25% down payment will be required for all other.

Commissions: You will receive your commission in the month the premium is due rather than when the premium is collected.

(06/17) Page CL - 41



COMMERCIAL LINES DIRECT BILL PAYMENT GUIDELINES 1. All applications for direct bill should be sent with check attached. If check is not received within three

weeks, the policies will be processed as agency bill. At renewal time a request may be made to renew direct bill.

2. For checks received that do not clear the bank, we will issue a notice of cancellation.

3. After three past dues (cancellation notices) on a client account, the full amount of premium may become due before the cancellation can be rescinded.

4. After three past dues (cancellation notices), the client bill account will be reviewed to determine whether future renewals will be considered for direct bill or renewed as agency billed.

5. The underwriter and accounting will review any rewrite of policy that was canceled for non-pay to determine if it can be rewritten as direct bill or only as agency billed business.

6. All billing will be to the insured. We cannot bill third parties.

(06/17) Page CL – 42


COMMERCIAL LINES RENEWAL PROCEDURES

Commercial Package Policy, Businessowners Policy, Inland Marine, Commercial Fire, Commercial Automobile, General Liability and Workers Compensation These policies will be automatically renewed. We may request updated questionnaires at each renewal

for specific classes of business.

Commercial Umbrella We require an updated umbrella application every three years. Acord applications must be completed

and signed to be acceptable.

Employment Practices Liability We require an updated and signed application that includes all supporting documents at each renewal.

Renewal applications are mailed directly to the insured for completion 6 months prior to policy expiration.

(11/06) Page CL – 43


AGENT-OF-RECORD LETTERS &

MULTIPLE AGENCY SUBMISSIONS

I. Information Required on Agent-of-Record Requests All requests must be in writing and include the following:

a) Policyholder's name and address b) The authorized insurer's name and address c) The policy number(s) d) The name and address of the new agent e) The effective date of the change f) The signature of the first named insured g) Signature of acceptance by the new agent

II. Agent-of-Record Letter is Received at Policy Expiration

a) The incumbent agent will be sent a letter advising that we have received an Agent-of-Record letter and will be given ten days to obtain a countermanding letter. If the Agent-of-Record request is received within the first 30 days of the renewal effective date, the policy can be cancelled and rewritten with the new agent. If no countermanding letter is received, coverage will be renewed for the new agent as currently written subject to a completed and signed application. Our filed rates and underwriting standards will be applied as of the effective date of the policy. Underwriting & claim information from each agent could affect the use of schedule credits/debits.

b) All premiums for the new agent will be based upon receipt of a completed and signed application

and subject to filed rates and underwriting standards in effect. c) All audits are the responsibility of the agent-of-record for the term of the audit.

III. Agent-of-Record Letter is Received Mid-Term (applies in all states except Maryland)

a) The incumbent agent will be sent a letter advising that we have received an Agent-of-Record letter. The incumbent agent will be given ten days to provide a countermanding letter. If no countermanding letter is received, the policies will remain with the incumbent agent until the new agent initiates a change as described in item III. (b).

b) An Agent-of-Record letter can only be implemented mid-term by the Cancellation of the existing

policy and issuance of a new policy based upon a completed and signed application from the new agent. Cancellation can be accomplished as follows:

1) Return of the original policy 2) Lost Policy Release Form signed by the first named insured 3) Written instructions to cancel the policy (signed by the first named insured)

(Continued)

(11/06) Page CL - 44



MULTIPLE AGENCY SUBMISSIONS (continued)

IV. Agent-of-Record Letter is Received Mid-Term (applies in Maryland if a policy has been In effect for more than 30 days)

a) The incumbent agent will be sent a letter advising that we have received an Agent-of-Record letter

and will be given ten days to obtain a countermanding letter. b) If we do not hear from the incumbent agent, we will accept requests from the new agent regarding

the account; however the incumbent agent will receive all copies of endorsements and billing. The new agent will service the account until renewal even though all premium and commission remain with the incumbent agent.

At renewal, coverage will be renewed for the new agent subject to a completed and signed application. This application should be received at least 90 days prior to the effective date to institute a smooth transition to the new agent. Our filed rates and underwriting standards will be applied as of the effective date of the policy. Underwriting & claim information from each agent could affect the use of schedule credits/debits.

(Continued)

(10/12) Page CL - 45



MULTIPLE AGENCY SUBMISSIONS (continued)

Multiple Agency Submissions of New Business (All States) We will reserve market for new business on a “first in” basis subject to the following guidelines:

1) The market will be reserved based on the primary business 10 digit telephone number. The primary

business telephone number is defined as the main business local landline, generally the number used in the local yellow pages. a) If no local landline exists, a toll free number is acceptable. If no local landline and no toll free

number exists, the cellular phone number for the primary owner is acceptable. b) You may reserve market for a customer up to 90 days prior to the effective date of coverage.

The effective date of coverage is the date the current in-force policy(s) expire. The market will remain reserved until 90 days after the effective date of coverage.

c) Market reservation is not available for mid-term quoting. Again, for market reservation, the effective date of coverage must be the expiration date of the current policy(s).

d) For new ventures, we will accept the date for which the prospective insured is requesting coverage.

e) Hard copy applications or a RapidWrite submission must be received within 5 business days of reserving an account in the Market Reservation system.

(10/12) Page CL - 46


UNIQUE COMMERCIAL FORMS INDEX

BUSINESSOWNERS Edition Edition Number Date Description BPHG10 0910 EXCLUSION - LEAD CONTAMINATION (not available in NJ) BPHG13 0704 PHYSICAL DAMAGE TO GUEST’S AUTO COVERAGE BPHG15 0713 TOTAL LIQUOR LIABILITY EXCLUSION (PA) BPHG21 0704 BUSINESSOWNERS EXCLUSION - TESTING OR CONSULTING ERRORS

OR OMISSIONS BPHG22 0704 BUSINESSOWNERS EXCLUSION - TANNING OR TONING BPHG25 1017 AUDIT NONCOMPLIANCE FACTOR ENDORSEMENT BPHG28 0713 BUSINESSOWNERS IMPROVED VALUE ENDORSEMENT BPHG29 0713 ADDITIONAL LIMITS OF INSURANCE FOR THE BUSINESSOWNERS IMPROVED VALUE AND IMPROVED VALUE PLUS ENDORSEMENTS BPHG35 0910 CONTRACTORS - EXTENDED BROAD FORM ENDORSEMENT FOR REAL

PROPERTY DAMAGE BPHG40 1017 EQUIPMENT BREAKDOWN ENHANCEMENT ENDORSEMENT BPHG49 0704 SNOW & ICE REMOVAL OPERATIONS EXCLUSION BPHG50 0704 LIMITATION OF COVERAGE - REAL ESTATE OPERATIONS BPHG51 0105 ASBESTOS EXCLUSION ENDORSEMENT BPHG54 0606 THEFT LIMITATION FOR UNSCHEDULED TOOLS & EQUIPMENT BPHG56 0713 BUSINESS INCOME CHANGES – 24 HOUR TIME PERIOD

BPHG58 0908 TOBACCO HEALTH HAZARD EXCLUSION BPHG59 0108 LOSS PAYMENT – ANTIQUES, COMIC BOOKS, SPORTS CARDS & MISCELLANEOUS COLLECTIBLES BPHG60 0713 BUSINESSOWNERS IMPROVED VALUE ENDORSEMENT PLUS BPHG61 1108 EARLIER NOTICE OF CANCELLATION PROVIDED BY US

BPHG62 0910 LIMITED FUNGI OR BACTERIA COVERAGE FOR BODILY INJURY

RESULTING FROM THE USE OF HOT TUBS (LIABILITY) BPHG64 0713 GREEN ENVIRONMENTAL AND EFFICIENCY IMPROVEMENTS

(06/17) Page CL Index - 1



BUSINESSOWNERS - (continued) Edition Edition Number Date Description BPHG65 0713 OPTICIANS AND OPTOMETRISTS OPTICAL AND HEARING AID ESTABLISHMENTS PROFESSIONAL LIABILITY BPHG68 0910 EMPLOYEE BENEFITS LIABILITY COVERAGE (Occurrence Form) BPHG70 0910 HOTEL – LIABILITY FOR GUESTS’ PROPERTY IN SAFE DEPOSIT BOXES BPHG71 0910 HOTELS BPHG75 0713 INCLUDE SPECIFIED NON-COMPENSATED OFFICERS AS EMPLOYEES BPHG76 0713 INCLUDE DESIGNATED AGENTS AS EMPLOYEES BPHG77 0613 EXTENDED REPLACEMENT COST ENDORSEMENT BPHG78 0713 EARTHQUAKE AND VOLCANIC ERUPTION (SUB-LIMIT) BPHG79 0713 EXCLUSION OF LOSS DUE TO BY-PRODUCTS OF PRODUCTION OR PROCESSING OPERATIONS FOR RENTAL PROPERTIES BPHG80 0713 EMPLOYMENT-RELATED PRACTICES LIABILITY ENDORSEMENT BPHG81 0113 ASSAULT AND BATTERY EXCLUSION BPHG82 0913 PRODUCT RECALL AND CORRECTION OF WORK EXPENSES FOR PRINTERS ERRORS AND OMISSIONS LIABILITY BPHG90 0713 SUPPLEMENTAL EXTENDED REPORTING PERIOD BPHG92 0713 PRIOR ACTS COVERAGE ILHG02 0713 MARYLAND CHANGES – LIABILITY FOR HAZARDS OF LEAD ILHG07 0416 CYBER LIABILITY ENDORSEMENT ILHG14 1116 TWO OR MORE COVERAGE FORMS OR POLICIES ISSUED BY US

FIRE & ALLIED LINES

Edition Edition Number Date Description CPHG10 0413 ADDITIONAL COVERAGE ENDORSEMENT - ACE CPHG12 0699 PHYSICAL DAMAGE TO GUEST'S AUTO COVERAGE FORM CPHG14 0402 BUSINESS INCOME (WITH EXTRA EXPENSE) ANNUAL LOSS SUSTAINED

– LIMITED COVERAGE (01/18) Page CL Index - 2



FIRE & ALLIED LINES – (continued) CPHG15 0413 FAMILY CARE HOMES BUILDING & PERSONAL PROPERTY COVERAGE

FORM (NC)

CPHG17 0913 CONDOMINIUM INSURER ADDITIONAL COVERAGE ENDORSEMENT (DC, MD & VA) CPHG18 1207 LOSS PAYMENT – ANTIQUES, COMIC BOOKS, SPORTS CARDS & MISCELLANEOUS COLLECTIBLES CPHG20 0413 CONTRACTORS ADDITIONAL COVERAGE ENDORSEMENT - ACE CPHG40 1017 EQUIPMENT BREAKDOWN ENHANCEMENT ENDORSEMENT CPHG42 0413 GREEN ENVIRONMENTAL AND EFFICIENCY IMPROVEMENTS CPHG45 0613 EXTENDED REPLACEMENT COST ENDORSEMENT CPHG46 0913 EXCLUSION OF LOSS DUE TO BY-PRODUCTS OF PRODUCTION OR PROCESSING OPERATIONS FOR RENTAL PROPERTIES CPHG49 0216 KEY AND LOCK REPLACEMENT CPHG50 0216 WATER DAMAGE DEDUCTIBLE CPHM03 0505 SPECIAL PACKAGE ENDORSEMENT FOR RELIGIOUS INSTITUTIONS

GENERAL LIABILITY

CGHG03 1116 FUNERAL DIRECTORS OR MORTICIANS PROFESSIONAL LIABILITY CGHG06 1116 EXCLUSION - LEAD CONTAMINATION (not available in NJ) CGHG08 1116 EMPLOYEE BENEFITS LIABILITY COVERAGE FORM (Occurrence Form) CGHG09 0417 DIRECTORS AND OFFICERS LIABILITY FOR NONPROFIT

ORGANIZATIONS COVERAGE (Claims Made Form) CGHG10 1116 SUPPLEMENTAL EXTENDED REPORTING PERIOD ENDORSEMENT CGHG11 0994 PUNITIVE DAMAGES - MARYLAND CHANGES CGHG12 0994 CONDOMINIUM ASSOCIATIONS CGHG13 0413 TOTAL LIQUOR LIABILITY EXCLUSION (PA) CGHG14 1116 PROFESSIONAL COUNSELING FOR RELIGIOUS INSTITUTIONS LIABILITY

INSURANCE COVERAGE FORM CGHG15 0796 CONTRACTORS - EXTENDED BROAD FORM ENDORSEMENT FOR REAL

PROPERTY DAMAGE (01/18) Page CL Index – 3



GENERAL LIABILITY – (continued) CGHG16 0996 CEMETERY LIABILITY COVERAGE CGHG18 0200 NORTH CAROLINA CHANGES - EXTENDED REPORTING PERIOD CGHG21 0105 ASBESTOS EXCLUSION ENDORSEMENT (CGL) CGHG22 0105 ASBESTOS EXCLUSION ENDORSEMENT (OCP) CGHG23 1213 PUBLIC SPACE RENTAL ENDORSEMENT (DC) CGHG24 1105 ADDITIONAL INSURED - HOMEOWNERS ASSOCIATIONS CGHG29 0413 LIABILITY ADDITIONAL COVERAGE ENDORSEMENT CGHG31 0413 TOBACCO HEALTH HAZARD EXCLUSION CGHG34 1017 POOL “POP-UP” ENDORSEMENT CGHG35 0609 EXCLUSION - LEAD CONTAMINATION (OCP) (not available in NJ) CGHG36 0609 NEW JERSEY CHANGES – COVERAGE AND EXCLUSION – LIABILITY FOR HAZARDS OF LEAD (OCP) CGHG38 0113 ASSAULT AND BATTERY EXCLUSION CGHG39 1013 KNOWLEDGE OF OCCURRENCE, CLAIM, SUIT OR LOSS CGHG40 1013 UNINTENTIONAL FAILURE TO DISCLOSE HAZARDS CGHG41 1215 INJURY OR DAMAGE TO OR RESULTING FROM YOUR WORK AND INJURY OR DAMAGE RESULTING FROM YOUR PRODUCT CGHG42 1017 AUDIT NONCOMPLIANCE FACTOR ENDORSEMENT GLHM02 0689 HIRED AUTO AND NON-OWNED AUTO LIABILITY (not available in NJ) ILHG07 0416 CYBER LIABILITY ENDORSEMENT ILHG14 1116 TWO OR MORE COVERAGE FORMS OR POLICIES ISSUED BY US

INLAND MARINE Edition Edition Number Date Description ILHG02 0713 MARYLAND CHANGES – LIABILITY FOR HAZARDS OF LEAD HMCMG3 1013 LOSS PAYABLE PROVISIONS CMHG11 0393 LOCKED VEHICLE LIMITATION CMHG12 1201 THEFT LIMITATION FOR UNSCHEDULED TOOLS AND EQUIPMENT



UNIQUE COMMERCIAL FORMS INDEX INLAND MARINE – (continued) CMHG13 1013 REPLACEMENT COST VALUATION CMHG15 0898 RENTAL REIMBURSEMENT COVERAGE FOR CONTRACTORS EQUIPMENT CMHG20 0613 COMMERCIAL FINE ARTS COVERAGE FORM EDP 1 0798 ELECTRONIC DATA PROCESSING COVERAGE FORM EDP 2 0994 ELECTRONIC DATA PROCESSING OFF PREMISES POWER EDP 3 0994 ELECTRONIC DATA PROCESSING LOSS OF EARNINGS EDP 4 0994 ELECTRONIC DATA PROCESSING EXTRA EXPENSE ENDORSEMENT EDP 5 0994 ELECTRONIC DATA PROCESSING CONTINGENT EXTRA EXPENSE ENDORSEMENT EDP 6 0696 ELECTRONIC DATA PROCESSING COMBINED LOSS OF EARNINGS AND EXTRA EXPENSE INSURANCE ENDORSEMENT HMCM1A 0696 BAILEES CUSTOMERS COVERAGE FORM (Named Peril) HMCM1B 0696 BAILEES CUSTOMERS COVERAGE FORM (All Risk) HMCM2 0696 BUILDERS RISK COVERAGE FORM (ALL RISK) HMCM3A 0696 CONTRACTORS EQUIPMENT COVERAGE (Named Perils) HMCM3B 0696 CONTRACTORS EQUIPMENT COVERAGE (All Risk) HMCM5A 0696 INSTALLATION FLOATER COVERAGE (Named Peril) HMCM5B 0295 INSTALLATION FLOATER COVERAGE (Special Form) HMCM6A 0696 MOTOR TRUCK CARGO COVERAGE FORM (Owners Form) HMCM6B 0696 MOTOR TRUCK CARGO THEFT ENDORSEMENT – LIMITED HMCM6C 0696 MOTOR TRUCK CARGO THEFT ENDORSEMENT HMCM6D 0696 MOTOR TRUCK CARGO THEFT COVERAGE – LOCKED VEHICLE

ENDORSEMENT HMCM6G 0395 MOTOR CARGO BROAD FORM CARRIERS HMCM7A 0696 RADIO AND TELEVISION TOWER AND EQUIPMENT COVERAGE (Named Peril)

(01/18) Page CL Index – 5

COMMERCIAL

The Harford Mutual Insurance Companies LINES


INLAND MARINE - (continued) Edition Edition Number Date Description HMCM7B 0696 RADIO AND TELEVISION TOWER AND EQUIPMENT COVERAGE (All Risk) CMHG8A 0696 SCHEDULED PROPERTY FLOATER COVERAGE (Named Peril) CMHG8B 0494 SCHEDULED PROPERTY FLOATER COVERAGE (Special Form) HMCM9A 0696 TRANSPORTATION FLOATER COVERAGE (Named Peril) HMCM9B 0696 TRANSPORTATION FLOATER COVERAGE (All Risk)

WORKERS COMPENSATION Edition Edition Number Date Description

HMSR 1 DC 1097 DISTRICT OF COLUMBIA WORKERS COMPENSATION SCHEDULE RATING PLAN HMSR 1 DE 0183 DELAWARE WORKERS COMPENSATION SCHEDULE RATING PLAN HMSR 2 NC 0798 NORTH CAROLINA RATE BUREAU SCHEDULE RATING PLAN FOR

WORKERS COMPENSATION HMSR 3 TN 0798 TENNESSEE SCHEDULE RATING PLAN FOR WORKERS COMPENSATION HMSR 4 MD 1098 MARYLAND SCHEDULE RATING PLAN FOR WORKERS COMPENSATION HMSR 4 PA 0308 PENNSYLVANIA COMPENSATION RATING BUREAU SCHEDULE RATING

PLAN HMSR 5 VA 0402 VIRGINIA SCHEDULE RATING PLAN FOR WORKERS COMPENSATION HMSR 6 NJ 0706 NEW JERSEY SCHEDULE RATING PLAN FOR WORKERS COMPENSATION WCDRUG 1 0797 VIRGINIA DRUG-FREE WORKPLACE CREDIT PLAN FOR WORKERS COMPENSATION WCDRUG-2 1016 MARYLAND ALCOHOL AND DRUG-FREE WORKPLACE PREMIUM CREDIT

FOR WORKERS COMPENSATION (01/18) Page CL Index – 6



AUTO Edition Edition Number Date Description CAIN01 1015 COMMERCIAL AUTO COVERAGE FORM INDEX CAHG01 0811 PUNITIVE DAMAGES EXCLUSION (DE) CAHG02 1015 SECTION II – COVERED AUTOS LIABILITY DEDUCTIBLE-HANDLING OF

PROPERTY (ALL STATES EXCEPT PA and VA) CAHG05 0196 WAIVER OF TRANSFER OF RIGHTS OF RECOVERY AGAINST OTHERS

TO US (VA) CAHG13 1015 LESSOR-ADDITIONAL INSURED AND LOSS PAYEE (BLANKET)

(ALL STATES EXCEPT TN and VA) CAHG14 1015 PUNITIVE DAMAGES EXCLUSION (ALL STATES EXCEPT VA) CAHG15 1015 SECTION II – COVERED AUTOS LIABILITY DEDUCTIBLE-HANDLING OF PROPERTY (PA) CAHG16 1015 TENNESSEE LESSOR-ADDITIONAL INSURED AND LOSS PAYEE

(BLANKET)

CAHG17 1015 AUTO ADDITIONAL COVERAGE ENDORSEMENT (not available in VA) CAHG19 0510 AUTO ADDITIONAL COVERAGE ENDORSEMENT - VIRGINIA CAHG20 1210 ON HOOK GARAGEKEEPERS COVERAGE EXTENSION (not available in VA) CAHG21 1015 POLLUTION LIABILITY-BROADENED COVERAGE FOR COVERED AUTOS-

BUSINESS AUTO (LIMITED FORM)

EMPLOYMENT - RELATED PRACTICES LIABILITY Edition Edition Number Date Description

EPHG02 0499 AMENDATORY ENDORSEMENT – REPRESENTATIONS (not available in VA)


The Harford Mutual Insurance Companies CLAIMS

REPORTING CLAIMS Business Hours- Agents and policyholders may report all claims directly to Harford Mutual by either calling (800) 638.3669 during normal operating business hours (M-F from 8am-4:30pm), emailing [email protected], or faxing (410) 836-0977. Non-business Hours-Agents and policyholders may report all claims during non-business hours to our Claimline at (877) 445.5826, emailing [email protected], or faxing (410) 836-0977. Agency Portal- Agents have the ability to report claims directly through our Agency Portal, and all corresponding documentation can be emailed to [email protected]. Required Information: When filing a claim, have the following information available:

Policy Number

Date of Loss

Loss Location

Contact information for policyholder and claimant, if applicable

Description of loss and damages

PROPERTY LOSSES

1) Property losses less than $10,000 and not involving fire, water, business income, and subrogation: Submit the Notice of Loss immediately followed by an itemized estimate for repairs/replacement and photographs of the damage;

2) Condominiums and Apartments: In addition to the Notice of Loss, policyholders should expect to provide copies of condominium by-laws and leases;

3) Police Reports are mandatory on all claims involving theft, burglary or robbery;

4) Catastrophic Losses should be reported immediately for further instruction;

5) Mitigation steps should occur immediately to prevent or reduce further damage;

6) Advise policyholders to choose repair contractors carefully. The use of licensed contractors is recommended.

AUTOMOBILE CLAIMS

1) Windshield and glass breakage: Policyholders can proceed with scheduling the repair or replacement through a reputable glass shop (such as Safelite), and provide the glass shop with our contact information and applicable policy number. *If the glass can be repaired, please note that any comprehensive deductible is waived. If the glass has to be replaced, please note that the comprehensive deductible will apply.*

2) Collision or Comprehensive Damages less than $3,500: In addition to the Notice of Loss, policyholders should submit an estimate from a reputable body shop of their choice along with photographs of the damage.

3) Police Reports are mandatory on all claims involving theft.

(10/16) Page CLAIMS – 1

The Harford Mutual Insurance Companies CLAIMS

GENERAL LIABILITY CLAIMS

1) Bodily Injury Claims: Along with the Notice of Loss, policyholders should submit the following, if applicable:

Letter(s) of Representation;

Snow logs and contracts;

Certificates of Insurance; and

Photographs of the area at the time of the loss, if available.

2) Property Damage Claims: Along with the Notice of Loss, policyholders should submit the following, if applicable:

Letter(s) of Representation;

Contracts with General Contractors or Subcontractors;

Contracts with the Claimant;

Certificates of Insurance; and

Photographs of the damages at the time of the loss, if available.

WORKERS’ COMPENSATION CLAIMS

1) Timely Reporting: Providing timely notice of a work injury will allow us to perform a thorough

investigation in an effort to mitigate loss exposures. A detailed Employer’s First Report of Injury will help us expedite the investigation process.

2) Emergency Care: Injured workers should be treated by the nearest Hospital or Urgent Care facility for emergency medical treatment. Emergency care means those medical services required for the immediate diagnosis or treatment of a medical condition, that if not immediately diagnosed or treated, could lead to serious physical or mental disability or death, or medical services that are immediately necessary to alleviate severe pain.

3) Panel Physicians: Injured workers in PA, NJ & VA jurisdictions may be required to establish treatment with a Doctor listed on an Employer’s Physician Panel. Please contact us if there are any questions regarding your existing Panel, or to establish a new Panel.

4) Documentation: Please forward any supporting documentation related to the work injury along with the Employer’s First Report of Injury. This should include any medical discharge records, disability slips, prescription receipts, internal incident reports, witness statements, police reports, etc.

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The Harford Mutual Insurance Companies ACCOUNTING

BILLING

PAYMENT DUE DATE:

Payments are due in the Home Office on or before the 15th of each month, based on a forty-five (45) day billing cycle as per the Agency Contract.

(Example: June Statement due by August 15th)

Statements are mailed from Bel Air early in the month.

(Example: June Statement mailed early in July)

PAYMENT METHODS:

1. Company’s Account Current Agencies paying by the company’s account current are required to pay the account as it is rendered.

No adjustments to the company’s account current under $1,000 net per policy are allowed. Prior approval of the Accounting Department must be given before any adjustment can be made.

If an error appears, agencies should immediately notify their underwriter of the problem so the

error can be corrected on the next statement. The Accounting Department must be notified by the 15th of the month of the action you have initiated with underwriting or the audit department to have the error corrected.

2. Agent’s Account Current Agents may render their own account current. Those agencies permitted to pay by this method are

required to promptly adjust the periodic difference sheets reconciling their account with the company’s account. Differences not addressed on next month’s account will be considered past due.

The agents should render their account current within 15 days following the end of the month.

Agent rendered accounts must be paid as rendered with no exception.

3. The Company offers Direct Billing on Homeowners and Commercial Lines. These are handled separately from Agency Billed and have their own separate monthly statement.

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DIRECT BILL

COMMERCIAL DIRECT BILL PAYMENT GUIDELINES

1. All applications for direct bill should be sent with check attached. If check is not received within three weeks, the policies will be processed as agency bill. At renewal time a request may be made to renew direct bill.

2. For checks received that do not clear the bank, we will issue a notice of cancellation.

3. After three past dues (cancellation notices) on a client account, the full amount of premium may become due before the cancellation can be rescinded.

4. After three past dues (cancellation notices), the client bill account will be reviewed to determine whether future renewals will be considered for direct bill or renewed as agency billed.

5. The underwriter and accounting will review any rewrite of policy that was canceled for non-pay to determine if it can be rewritten as direct bill or only as agency billed business.

6. All billing will be to the insured. We cannot bill third parties.

PERSONAL LINES DIRECT BILL PAYMENT GUIDELINES

1. Insured may choose to pay the annual premium or the installment premium as shown on their bill. We do not have a grace period.

2. If they choose to pay by installments, a $3 service fee will be added to each installment after the first installment is paid. If the installment is late, installments are no longer available and the full amount is due.

3. If insured does not send the current balance or the installment to the company by the due date, the policy will lapse (they have no coverage) or their policy will be canceled.

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INSTALLMENT PAYMENT PLANS & FEES 1. ELIGIBILITY REQUIREMENTS

All policies issued by one of the Harford Mutual Insurance Companies are eligible to be placed on an installment payment plan.

2. PAY PLANS Plan A – 3 payments 40% due on the effective date and 30% in the 3

rd and 5

th policy months.

Plan C - 7 payments: 25% due on the effective date and 12.5% in each of the next six policy months.

Plan E -10 payments: 10% due on the effective date and 10% in each of the next nine policy months.

Plan F - 4 payments: 25% due on the effective date and 25% in each of the 3rd, 5th and 7

th policy months.

Plan G – 3 payments (for audits only): 33 1/3% due 20 days from when audit endorsement was processed and 33 1/3% in the next 2 consecutive months. Plan S - 2 payments (currently unavailable): 50% due on the effective date and 50% in the 6th policy month. Plan X One installment for annual premium.

3. ENDORSEMENTS All endorsements both additional and return premiums will be spread over the remaining installment payment periods, based on the effective date of the endorsement. Note, if an endorsement is processed with a retroactive effective date, the impact on the next billing statement will be greater than the impact on the additional remaining installments.

4. FEES $3.00 Installment fee – applies at the policy level to all installments except the first installment. $5.00 late fee- applies at the policy level whenever a cancellation notice for non-payment of premium

is processed. $25.00 Non-sufficient Fund Check Fee – applies to all checks returned by the bank for non-sufficient funds.

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In an effort to provide better service to our insureds and your customers, direct bill is available. This is being provided at no charge. We encourage you to use this with your valued customers.

Eligibility: Any commercial policy: A. $500 annual account premium. B. Commercial policies including Fire, Liability, Workers Compensation, Commercial Package Policy, Businessowners, Automobile, Inland Marine and Commercial Umbrella.

Overview: Depending on the payment play chosen the insured will be billed once a month, with one statement for all policies that are linked by the billing customer number under the company Direct Bill Plan. The insured will be billed on the same day each month during the payment period. It is recommended that all policies for the same insured have concurrent policy dates. It is recommended that all policies for the same insured have the same pay plan. Each insured will be assigned a six-digit billing customer number. This billing customer number will be used on every policy issued for the insured that is on the Direct Bill Plan. We cannot direct bill a policy that has already been issued after the inception date nor will we be able to change the payment method once the Direct Bill Plan has been established. Any changes can be accomplished at next renewal.

Down Payment: A cash down payment may be required on all Direct Bill accounts as noted below:

New Business: RapidWrite submitted applications do not require a down payment. We require a 20% down payment for all non-RapidWrite submitted applications received at least 30 days prior to the inception date. A 10% down payment is required for applications at least 60 days prior to inception date. All other non-RapidWrite applications will require a 25% down payment.

Renewals: No down payment will be required if you notify us 60 days before the expiration date that you

want the renewal policy on direct bill. A 25% down payment will be required for all other.

Commissions: You will receive your commission in the month the premium is due rather than when the premium is collected.

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