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Home My WebLink About09-0746JOHNSON, DUFFIE, STEWART & WEIDNER By: John R. Ninosky, Esquire Attorney for Plaintiff I.D. No. 78000 jrn@jdsw.com By: Elizabeth D. Snover, Esquire I.D. No. 200997 eds@jdsw.com 301 Market Street P. O. Box 109 Lemoyne, PA 17043-0109 (717) 761-4540 ERIE INSURANCE EXCHANGE, IN THE COURT OF COMMON PLEAS OF Plaintiff CUMBERLAND COUNTY, PENNSYLVANIA V. NO. Dq- `TAp Ny;l lP...+rm UNIVERSAL UNDERWRITERS DECLARATORY JUDGMENT GROUP and ZURICH INSURANCE, Defendants NOTICE YOU HAVE BEEN SUED IN COURT. If you wish to defend against the claims set forth in the following pages, you must take action within twenty (20) days after this Complaint and Notice are served, by entering a written appearance personally or by attorney and filing in writing with the Court your defenses or objections to the claims set forth against you. You are warned that if you fail to do so the case may proceed without you and a judgment may be entered against you by the Court without further notice for any money claimed in the Complaint or for any other claim or relief requested by the Plaintiff. You may lose money or property or other rights important to you. YOU SHOULD TAKE THIS PAPER TO YOUR LAWYER AT ONCE. IF YOU DO NOT HAVE A LAWYER, GO TO OR TELEPHONE THE OFFICE SET FORTH BELOW. THIS OFFICE CAN PROVIDE YOU WITH INFORMATION ABOUT HIRING A LAWYER. IF YOU CANNOT AFFORD TO HIRE A LAWYER, THIS OFFICE MAY BE ABLE TO PROVIDE YOU WITH INFORMATION ABOUT AGENCIES THAT MAY OFFER LEGAL SERVICES TO ELIGIBLE PERSONS AT A REDUCED FEE OR NO FEE. Cumberland County Bar Association 32 South Bedford Street Carlisle, PA 17013 (800) 990-9106 (717) 249-3166 AVISO USTED HA SIDO DEMANDADO/A EN CORTE. Si usted desea defenderse de las demandas que se presentan m6s adelante en las siguientes paginas, debe tomar accion dentro de los pr6ximos veinte (20) dias despues de la notificaci6n de esta Demanda y Aviso radicando personalmente o por medio de un abogado una comparecencia escrita y radicando en la Corte por escrito sus defensas de, y objecciones a, las demandas presentadas aqui en contra suya. Se le advierte de que si usted falla de tomar acci6n como se describe anteriormente, el caso puede proceder sin usted y un fallo por cualquier suma de dinero reclamada en la demanda o cualquier otra reclamaci6n o remedio solicitado por el demandante puede ser dictado en contra suya por la Corte sin mas aviso adicional. Usted puede perder dinero o propiedad u otros derechos importantes para usted. USTED DEBE LLEVAR ESTE DOCUMENTO A SU ABOGADO INMEDIATAMENTE. SI USTED NO TIENE UN ABOGADO, LLAME O VAYA A LA SIGUIENTE OFICINA. ESTA OFICINA PUEDE PROVEERLE INFORMACION A CERCA DE COMO CONSEGUIR UN ABOGADO. SI USTED NO PUEDE PAGAR POR LOS SERVICIOS DE UN ABOGADO, ES POSIBLE QUE ESTA OFICINA LE PUEDA PROVEER INFORMACION SOBRE AGENCIAS QUE OFREZCAN SERVICIOS LEGALES SIN CARGO O BAJO COSTO A PERSONAS QUE CUALIFICAN. Cumberland County Bar Association 32 South Bedford Street Carlisle, PA 17013 (800) 990-9106 (717) 249-3166 JOHNSON, DUFFIE, STEWART & WEIDNER ,/By: John R. Ninosky, Esquire I. D. No. 78000 jrn@jdsw.com By: Elizabeth D. Snover, Esquire I.D. No. 200997 eds@jdsw.com 301 Market Street P. O. Box 109 Lemoyne, PA 17043-0109 (717) 761-4540 Attorney for Plaintiff ERIE INSURANCE EXCHANGE, Plaintiff V. UNIVERSAL UNDERWRITERS GROUP and ZURICH INSURANCE, Defendants COMPLAINT NO. o g- 7y6 (? =( 7`.e.,,... DECLARATORY JUDGMENT AND NOW, comes the Plaintiff, Erie Insurance Exchange, by its attorneys, Johnson, Duffie, Stewart & Weidner, P.C., who files this Complaint by respectfully stating the following: 1. Plaintiff Erie Insurance Exchange ("Erie Insurance") is an insurance exchange registered to do business with the Pennsylvania Department of Insurance and has a principal place of business at Rossmoyne Business Center, 4901 Louise Drive, Mechanicsburg, Cumberland County, Pennsylvania 17055. 2. Defendant Universal Underwriters Group ("Universal') and Zurich Insurance ("Zurich") are believed to be a insurance companies authorized to do IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA business and regularly doing business in the Commonwealth of Pennsylvania, including k Cumberland County, with a principal place of business and office located at Two Penn Center West, Suite 200, Pittsburgh, Pennsylvania 15276. 3. On March 15, 2008, Todd Durf, an adult individual residing at 5 Brian Drive, Carlisle, Cumberland County, Pennsylvania, held an Erie Insurance Family Auto Policy. A true and correct copy of that Erie Insurance Exchange Policy is attached hereto and incorporated herein as Exhibit A. 4. Also on that date, Todd Durf was driving a vehicle which was loaned to him by Antwerpen Voltzwagen (VW) while his vehicle was in the Antwerpen VW shop for repairs. 5. While Mr. Durf was driving the Antwerpen VW replacement vehicle in Carlisle, Cumberland County, Pennsylvania, he fell asleep at the wheel and struck two (2) parked vehicles. 6. Before Mr. Durf was loaned the replacement vehicle by Antwerpen VW, he was required to complete a Service Loaner Agreement. A true and correct copy of that Service Loaner Agreement is attached hereto and incorporated herein as Exhibit B. 7. That Agreement provides as follows: In consideration for your lending the above described vehicle to me, at no charge, I agree to: reimburse you, immediately upon demand, for any loss, not covered by insurance which I carry, which you may sustain as a result of lending this vehicle to me... In the event any of the foregoing provisions would have the effect of depriving me the protection of any insurance coverage which might apply in the absence of such provision or provisions, then the provision having hat effect shall be void, but in such case I shall be subjected to 2 L ? whatever liability the law would have imposed upon me in that connection had this agreement not been made. (Exhibit B). 8. After the accident on March 15, 2008, Mr. Durf notified Erie Insurance who opened a claim and contacted the insurance carrier for Antwerpen VW regarding coverage. 9. It was learned that Antwerpen VW held a policy with Zurich and that coverage determinations and other administrative functions were handled by Universal. 10. It is unknown at this time if Universal is a subsidiary, a contractor or other in relation to Zurich. As such, both Universal and Zurich have been named in this suit. 11. Erie Insurance took the position, which it maintains, that under the provisions of Mr. Durfs Family Auto Policy, Erie Insurance provides only excess insurance coverage over and above the coverage provided by Zurich and/or Universal, which is primary. 12. The Erie Insurance Policy states in pertinent part: LIABILITY OTHERINSURANCE This insurance will be excess of that of a business engaged in storing, parking, servicing, or repairing motor vehicles if an accident occurs while "your" "owned auto we insure" is under control of the owner, operator, employee, or agent. 3 13. Additionally, the Family Auto Policy provides no protection under the replacement auto provision if that replacement auto is registered to a corporation or business. 14. Erie Insurance's position that the policy provides only excess coverage for the loss on March 15, 2008, was communicated via letter dated March 24, 2008, to the owner of Antwerpen VW, Bob Thompson. A true and correct copy of the March 24, 2008, letter is attached hereto and incorporated herein as Exhibit C. 15. By letter dated March 27, 2008, Universal indicated its position that the Erie Insurance policy was primary and attached the Service Loaner Agreement and a Maryland Statute. A true and correct copy of the March 27, 2008, letter is attached hereto and incorporated herein as Exhibit D. 16. In response to this correspondence, by letter dated May 8, 2008, Erie Insurance indicated that the information attached in Universal's March 27th letter was insufficient since it did not contain a copy of the applicable Insurance policy for Antwerpen. Erie Insurance again requested a copy of the applicable policy from Universal. A true and correct copy of the May 8, 2008, letter is attached hereto and incorporated herein as Exhibit E. 17. By letter dated May 20, 2008, Universal indicated that while its position had not changed on the primary nature of Erie Insurance's coverage for the loss, it would not provide a copy of the applicable insurance policy for Antwerpen. A true and 4 correct copy of the May 20, 2008, letter is attached hereto and incorporated herein as Exhibit F. 18. Without the benefit of being able to see the applicable Universal/Zurich policy for Antwerpen, Erie Insurance was forced to bring this Declaratory Judgment Action in order to have the Court determine which policy provides excess or primary coverage or if both Erie Insurance and Universal must share in the loss. 19. It is believed, based upon the provisions of the Erie Insurance policy and the Service Loaner Agreement that Erie Insurance will be an excess carrier with Zurich/Universal being primary. COUNT I - DECLARATORY JUDGMENT ERIE INSURANCE EXCHANGE v. UNIVERSAL UNDERWRITERS GROUP and ZURICH INSURANCE 20. Plaintiff incorporates by reference the allegations of paragraphs 1 through 19 as if the same were set forth herein at length. 21. Plaintiff herein, Erie Insurance, believes and avers that Universal's interpretation of their policy is incorrect and that, under express and implied terms of that policy and under Pennsylvania law, Universal/Zurich must provide primary coverage for the applicable loss sustained on March 15, 2008. 22. Erie Insurance contends that the law of this Commonwealth, for example, Progressive Northern Ins. Co v Universal Underwriters Ins Co., 898 A.2d 1116 (Pa. Super. 2006), supports that even if the Universal/Zurich policy has an excess insurance 5 clause, that this clause coupled with the Erie Insurance excess clause would have both parties sharing coverage for the loss. 23. Alternatively, the exclusions and definitions cited by Universal/Zurich and set forth in their policy are vague and ambiguous and/or are in violation of public policy or constitute an impermissible escape clause such that the Universal/Zurich policy should be construed in favor of primary coverage or shared coverage for this loss. 24. Erie Insurance further alleges that the express and implied terms of the Service Loaner Agreement do not make the Erie Insurance policy primary and/or the terms are vague. 25. As a result of Universal's failure to provide any coverage for the loss occurring on March 15, 2008, Erie Insurance was obligated to settle and pay the claims of the owners of the two (2) parked vehicles damaged by Mr. Durf. 26. Erie Insurance brings this Complaint and requests that the Court enter a Declaratory Judgment pursuant to Pennsylvania's Declaratory Judgments Act 42 Pa.C.S.A. § 7531 et seq. WHEREFORE, Plaintiff Erie Insurance Exchange respectfully requests this Honorable Court declare that: (1) Universal Underwriters Group and/or Zurich Insurance must provide primary coverage for the loss occurring on March 15, 2008; (2) Universal Underwriters Group and/or Zurich is legally obligated to indemnify Erie Insurance Group for payments made to settle claims related to the loss occurring on March 15, 2008 to the extent of the Policy limits; 6 (3) Universal Underwriters Group and/or Zurich is legally obligated to indemnify and pay Erie Insurance Group for attorneys fees and costs incurred in this action for Declaratory Judgment; and (4) Such other relief as this Honorable Court may deem just and equitable. Respectfully submitted, JOHNSON, DUFFIE, STEWART & WEIDNER By: JohVR. Ninosky, Esquire Y Attorney I.D. No. 78000 Elizabeth D. Snover, Esquire Attorney I.D. No. 200997 301 Market Street P. O. Box 109 Lemoyne, PA 17043-0109 Telephone (717) 761-4540 Date: February 10, 2009 Attorneys for Plaintiff 7 WHERE TO LOOK IN YOUR POLICY Page AGREEMENT ....................................... 2 GENERAL POLICY DEFINITIONS ..................... 2 LIABILITY PROTECTION Definitions .........................................4 Our Promise ........................................4 Additional Payments ................................. 5 Extra Protection When Temporarily Out of State ........... 5 Exclusions - What We Do Not Cover ..................... 5 Limit of Protection ................................... 6 Other Insurance .....................................6 PHYSICAL DAMAGE COVERAGES Definitions ................................. ........6 Our Promise - Comprehensive Coverage .......... ........ 7 Our Promise - Collision Coverage ............... ........ 7 Our Promise - Road Service .................... ........ 7 Our Promise - Transportation Expenses ........... ........ 7 Additional Payments ......................... ........ 7 Exclusions - What We Do Not Cover ............ ......... 7 Limit of Protection ........................... ........ 8 Other Insurance ............................. ........9 Appraisal .................................. ........9 Page Loss Payment .......................................9 No Benefit To Bailee ................................. 9 Loss Payable Clause ..................................9 ADDITIONAL COVERAGE Reimbursement For Coverage In Mexico and Other Foreign Countries ...............................10 RIGHTS AND DUTIES - GENERAL POLICY CONDITIONS Definitions ............................ .............10 Assignment ............................ .............10 Bankruptcy of Anyone We Protect .......... .............10 Concealment, Fraud or Misrepresentation .... .............10 Continuous Policy ...................... .............10 Cooperation ........................... .............10 How Your Policy May Be Changed ......... .............10 Lawsuits Against Us ..................... .............11 Our Right To Recover From Others ......... ............. I 1 Priority ............................... .............I1 Subscriber's Agreement .................. ............. I I Survivors' Coverage ..................... .............II Termination ........................... .............12 What To Do When an Accident or Loss When and Where This Policy Applies . . Thank you for choosing Erie Insurance for your auto insurance needs. This policy contains many Xtra X Protection Features. Wherever an "X" appears in the margin of this policy, you receive Xtra Protection that is not included in most other auto policies. The protection provided by this policy is in keeping with the single purpose of our Founders which is, "To provide YOU with as near PERFECT PROTECTION, as near PERFECT SERVICE, as is humanly possible, and to do so at the LOWEST POSSIBLE COST." AGREEMENT ERIE INSURANCE EXCHANGE In return for "your" timely premium payment, "your" compli- ance with all of the provisions of this policy, and "your" signing of a "Subscriber's Agreement" with Erie Indemnity Company and other "Subscribers," "we" agree to provide the coverages "you" have purchased. "Your" coverages and limits of protec- tion are shown on the "Declarations," which are part of this policy. "Your" signing the "Subscriber's Agreement," which includes a limited power-of-attorney, permits Erie Indemnity Company, as Attorney-in-Fact, to make reciprocal insurance contracts be- tween "you" and other Subscribers and otherwise manage the business of the Erie Insurance Exchange. This power-of- attorney applies only to "your" insurance business at the Ex- change and is limited to the purposes described in the "Sub- scriber's Agreement." "Your" responsibility as a "Subscriber" is determined by this policy and the "Subscriber's Agreement." "You" are liable for just the policy premiums charged and are not subject to any other premium liability under this policy. This agreement is made in reliance on the information "you" have given "us" and is subject to all the terms of this policy. This policy, with coverage agreements, limitations, exclusions and conditions, the "Declarations," applicable endorsements and waivers, and the "Subscriber's Agreement" constitute the entire agreement between "you" and "us." ERIE INSURANCE COMPANY AND ERIE INSURANCE PROPERTY & CASUALTY COMPANY In return for "your" timely premium payment and "your" com- pliance with all of the provisions of this policy, "we" agree to provide the coverages "you" have purchased. "Your" coverages and limits of protection are shown on the "Declarations," which are part of this policy. This agreement is made in reliance on the information "you" have given "us" and is subject to all the terms of this policy. This policy, with coverage agreements, limitations, exclusions and conditions, the "Declarations" and applicable endorsements and waivers, constitute the entire agreement between "you" and "us." GENERAL POLICY DEFINITIONS Throughout this policy and its endorsements, the following words and phrases have a special meaning when they appear in bold type and quotations. e "Additional auto" or "additional trailer:" 1. "Additional auto" means any "private passenger auto" other than a "replacement auto" that "you" acquire, purchase or lease during the policy period. For coverage to apply, "we" must insure all "private passenger autos" "you" own on the date "you" acquire, purchase or lease an "additional auto." 2. "Additional trailer" means any "trailer" other than a "replacement trailer" that "you" acquire, purchase or lease during the policy period. For coverage to apply, "we" must insure all "trailers" "you" own on the date "you" acquire, purchase or lease an "additional trailer." "Additional auto" or "additional trailer" does not include any "auto" or "trailer" that "you" acquire, purchase or lease with anyone other than a "relative." Coverage does not ap- ply to an "additional auto" or an "additional trailer" regis- tered to a corporation or other business entity. "You" must notify "us" during the policy period of "your" intention to have this policy apply to an "additional auto" or an "additional trailer." If "you" obtain an "additional auto" or an "additional trailer" within 30 days prior to the X end of the policy period, "you" have 60 days after acquisi- tion to notify "us." Should a loss occur involving an "additional auto" or "addi- tional trailer" prior to "your" notifying "us," the additional vehicle will have the broadest coverage "you" have purchased X for any one vehicle listed on the "Declarations." If "you" do not have: Comprehensive Coverage on any vehicle listed on the "Declarations," then Comprehensive Coverage will ap- ply, subject to a $500 deductible. However, Comprehen- sive Coverage will end seven days after "you" acquire, X purchase or lease the vehicle or when "you" report the additional vehicle to "us," whichever occurs first. Collision Coverage on any vehicle listed on the "Decla- rations," then Collision Coverage will apply, subject to a $500 deductible. However, Collision Coverage will end seven days after "you" acquire, purchase or lease the ve- X hicle or when "you" report the additional vehicle to "us," whichever occurs first. • "Anyone we protect" is defined separately under the LIABIL- ITY PROTECTION Section, RIGHTS AND DUTIES - GENERAL POLICY CONDITIONS Section or any applica- ble coverage. Refer to each of these sections or the applicable endorsement for the definition of "anyone we protect" as it applies to each coverage. • "Auto" means any land "motor vehicle" with at least four wheels except a: 1. vehicle designed for use principally off public roads; 2. vehicle operated on rails or crawler treads; 3. vehicle located for use as a residence; or 4. "miscellaneous vehicle." • "Auto business" means the business of selling, leasing, rent- ing, repairing, servicing, cleaning, painting, storing or parking "autos," "trailers" or "miscellaneous vehicles." • "Auto we insure" means: 1. "owned auto we insure;" 2. "temporary substitute;" or 3. "nonowned auto." "Nonowned auto" is defined sepa- rately under the LIABILITY PROTECTION Section, the PHYSICAL DAMAGE COVERAGE Section or any ap- plicable coverage. Refer to each of these sections or the applicable endorsement for the definition of "nonowned auto" as it applies to each coverage. • "Declarations" means "our" form which shows "your" cover- ages, limits of protection, "owned auto we insure," premium charges and other information. This form is part of this policy. "Declarations" include forms titled Amended Declarations, Revised Declarations, Duplicate Declarations, New Declarations, Reinstatement of Coverage, or Continuation Notice. • "Fungi" means any type or form of fungus, including, but not limited to, molds, mildews, smuts, mushrooms, yeasts and any mycotoxin, spores, scents, vapors, gases or byproducts pro- duced, arising out of or released by any type or form of fun- gus. • "Miscellaneous vehicle" means a motorcycle (including a motorcycle with a sidecar), moped, snowmobile, golf cart, all terrain vehicle and any similar recreational vehicle. It does not include a lawn and garden tractor or mower or similar vehicle. • "Motor vehicle" means any vehicle that is self-propelled and is required to be registered under the laws of the state in which "you" reside at the time this policy is issued. "Motor vehicle" does not include a vehicle: 1. propelled solely by human power; 2. propelled by electric power obtained from overhead wires; 3. operated on rails or crawler treads; 4. located for use as a residence or premises; or 5. which is a lawn and garden tractor or mower or similar vehicle. • "Moving van" means a four or six wheel "motor vehicle," such as a compact van or step van, designed mainly to trans- port household goods. It must be borrowed or rented and driven by "you" or a "relative" for personal use. • "Occupying" means in, upon, getting into or getting out of. • "Owned auto we insure" means any: 1. "auto" or "trailer" described on the "Declarations" for the coverages "you" have purchased; 2. "additional auto," or "additional trailer;" or 3. "replacement auto," or "replacement trailer." • "Private passenger auto' means a four wheel land "motor vehicle" designed mainly to transport people on public roads. It includes station wagons and the following types of vehicles, even with dual rear wheels, when not used for business pur- poses, except fanning or ranching: 1. motor homes; 2. pickups; and 3. vans. • "Relative" means a "resident" of "your" household who is a: 1. person related to "you" by blood, marriage or adoption; or 2. ward or any other person under 21 years old in "your" care. • "Replacement auto" or "replacement trailer:" "Replacement auto" means any "private passenger auto" that "you" acquire, purchase or lease within the policy period to replace an "auto" described on the "Dec- larations." "Replacement trailer" means any "trailer" that "you" acquire, purchase or lease within the policy period to re- place a "trailer" described on the "Declarations." "Replacement auto" or "replacement trailer" does not in- clude any "auto" or "trailer" that "you" acquire, purchase or lease with anyone other than a "relative." Coverage does not apply to "replacement autos" or "replacement trail- ers" registered to a corporation or other business entity. "You" must notify "us" during the policy period of "your" intention to have this policy apply to a "replacement auto" or "replacement trailer." If "you" obtain a "replacement auto" or "replacement trailer" within 30 days prior to the X end of the policy period, "you" have 60 days after acquisi- tion to notify "us." Should a loss occur involving a "replacement auto" or "re- placement trailer" prior to "your" notifying "us," the replace- ment vehicle will have the broadest coverage "you" have pur- X chased for any one vehicle listed on the "Declarations." If "you" do not have: 1. Comprehensive Coverage on any vehicle listed on the "Declarations," then Comprehensive Coverage will apply, subject to a $500 deductible. However, Comprehensive Coverage will end seven days after "you" acquire, pur- X chase or lease the vehicle or when "you" report the re- placement vehicle to "us," whichever occurs first. 2. Collision Coverage on any vehicle listed on the "Decla- rations," then Collision Coverage will apply, subject to a $500 deductible. However, Collision Coverage will end seven days after "you" acquire, purchase or lease the ve- hicle or when "you" report the replacement vehicle to "us," whichever occurs first. X • "Resident" means a person who physically lives with "you" in "your" household on a regular basis. "Your" unmarried, une- mancipated children attending school full time, living away from home, will be considered "residents" of "your" house- hold. • "Suit" means a civil proceeding in which damages are alleged because of bodily injury or property damage to which this in- surance applies. "Suit" includes: 1. an arbitration proceeding; or 2. any other alternative dispute resolution proceeding, to which "anyone we protect" must submit or submit with "our" consent alleging such damages. • "Temporary substitute" means any "auto" or "trailer" which is a substitute for an "owned auto we insure." The "owned auto we insure" must be withdrawn from normal use because of its breakdown, destruction, loss, repair or servicing. The "temporary substitute" cannot be owned by "you" and must be used with the permission of the owner. • "Trailer" means a vehicle designed to be pulled by a "private passenger auto," if not being used for business purposes ex- cept with a "private passenger auto." In the LIABILITY PROTECTION Section of this policy, "trailer" includes a farm wagon or farm implement while used with a "private passenger auto." ADDITIONAL ERIE INSURANCE EXCHANGE DEFINITIONS The following words and phrases have a special meaning in policies issued by Erie Insurance Exchange when they appear in bold type and quotations. • "Subscriber" means the person(s) who signed the "Sub- scriber's Agreement." • "Subscriber's Agreement" means the agreement, including a limited power-of-attorney, among the Subscribers and the Erie Indemnity Company, as Attorney-in-Fact. See the RIGHTS AND DUTIES - GENERAL POLICY CONDITIONS Section, SUBSCRIBER'S AGREEMENT. • "We," "us" or "our" means the Subscribers at Erie Insurance Exchange as represented by their common Attorney-in-Fact, Erie Indemnity Company. • "You," "your" or "Named Insured" means the "Subscriber" named in Item 1. on the "Declarations" and others named in Item 1. on the "Declarations." Except under the RIGHTS AND DUTIES - GENERAL POLICY CONDITIONS Section, these words include the spouse of the "Subscriber" named in Item 1. on the "Declarations," provided the spouse is a "resi- dent." ADDITIONAL ERIE INSURANCE COMPANY AND ERIE INSURANCE PROPERTY & CASUALTY COMPANY DEFINITIONS The following words and phrases have a special meaning in policies issued by Erie Insurance Company or Erie Insurance Property & Casualty Company when they appear in bold type and quotations. • "We," "us" or "our" means the Erie Insurance Company or the Erie Insurance Property & Casualty Company, whichever is stated on the "Declarations." • "You," "your" or "Named Insured" means the person(s) named in Item 1. on the "Declarations." Except in the RIGHTS AND DUTIES - GENERAL POLICY CONDI- TIONS Section, these words include'the spouse of the per- son(s) named in Item 1. on the "Declarations," provided the spouse is a "resident." LIABILITY PROTECTION DEFINITIONS The following words and phrases have a special meaning when they appear in bold type and quotations in the LIABILITYPRO- TECTION Section. • "Anyone we protect" means: 1. "you" or any "relative" using an "auto we insure;" 2. any person using, or any person or organization legally responsible for the use of, an "owned auto we insure." This use must be with "your" permission unless the use is by a "relative;" and 3. any person or organization legally responsible for the use, by "you" or a "relative," of any "nonowned auto." This protection applies only if the person or organization does not own or hire the vehicle being used. • "Nonowned auto" means: X 1. while "you" are using it, any "auto," "moving van," "trailer" or "temporary substitute" not owned or leased by "you;" or 2. while a "relative" is using it, any "private passenger auto," "moving van," "trailer" or "temporary substi- tute" not owned or leased by "you" or a "relative." The operation or other use by "you" or a " relative" must be with the permission of the owner or "you" or the "relative" must rea- sonably believe the permission of the owner exists. OUR PROMISE Bodily Injury Liability Coverage Property Damage Liability Coverage If these coverages are indicated on the "Declarations," "we" will pay all sums that "anyone we protect" legally must pay as damages caused by an accident covered by this policy. The ac- cident must arise out of the ownership, maintenance, use, load- ing or unloading of an "auto we insure." Damages must involve: 1. bodily injury, meaning physical harm, sickness, disease, or resultant death to a person; or 4 2. property damage meaning: a. physical injury to or destruction of tangible property, in- cluding loss of its use; or b. loss of use of tangible property which is not physically injured or destroyed. "We" may investigate or settle any claim or "suit" for damages against "anyone we protect," at "our" expense. If "anyone we protect" is sued for damages covered by this policy, "we" will defend, with a lawyer "we" choose, even if the allegations are not true. "Our" obligation to pay any claim or judgment or de- fend any "suit" ends when "we" have used up "your" limit of protection by paying judgments or settlements or making a de- posit in court. ADDITIONAL PAYMENTS Payment for the following is in addition to the limit of protec- tion shown on the "Declarations." Claim Expenses "We" will pay: 2. 3. X4. X 6. X court costs to defend or settle, as "we" believe proper, any claim or "suit" against "anyone we protect," for damages covered under this section. "Our" payment of the limit of protection for a settlement, judgment or deposit in court ends "our" duty to pay under this item. expenses incurred to investigate and defend or settle, as "we" believe proper, any claim or "suit" against "anyone we pro- tect" for damages covered under this section. "Our" pay- ment of the limit of protection for a settlement, judgment or deposit in court ends "our" duty to pay under this item. post judgment interest, but only that portion of the post- judgment interest which accrues on that part of the judgment that does not exceed the limit of protection on a "suit" "we" defend. "Our" payment, offer in writing, or deposit in court of that part of the judgment that does not exceed the limit of protection ends "our" duty to pay any post judgment interest that accrues after the date of "our" payment, written offer or deposit. prejudgment interest or delay damages awarded on that part of any judgment that does not exceed the limit of protection. If "we" offer in writing to pay the applicable limit of protec- tion, "we" will not pay any prejudgment interest or delay damages for the period of time after the offer. reasonable expenses "anyone we protect" may incur at "our" request to help "us" investigate or defend a claim or "suit." This includes up to $300 a day for actual loss of earn- ings, limited to those days "anyone we protect" attends hearings or trials at "our" request. premiums on the following types of bonds, but not for bond amounts greater than the limit of protection: a. appeal bond in a "suit" "we" defend; b. up to $500 for a bail bond premium required because of an accident or related traffic violation involving an "auto we insure;" and c. attachment bond to release property of "anyone we pro- tect" due to an accident or related traffic violation in- volving an "auto we insure." "We" have no duty to apply for or furnish such bonds. 7. reasonable lawyers' fees up to $50 which "anyone we pro- X tect" incurs because of arrest, resulting from an accident in- volving an "auto we insure." First Aid Expenses "We" will pay reasonable expenses for first aid to other persons and animals at the time of an accident involving an "auto we X insure." EXTRA PROTECTION WHEN TEMPORARILY OUT OF STATE If "anyone we protect:" travels to another state, the District of Columbia, a territory or possession of the United States of America, Puerto Rico or Canada; and as a nonresident becomes subject to a motor vehicle finan- cial responsibility law, compulsory insurance law, or other similar law that imposes insurance requirements which are greater than the insurance provided by this policy, then, the Liability Protection under this policy will be increased to the minimum amount of liability coverage required by law. Coverage provided to meet the minimum limits will be in lieu of the insurance otherwise provided by this policy. The insurance under this provision will be reduced to the extent that there is other valid and collectible insurance under this or any motor vehicle insurance policy. In no event will any person be entitled to receive duplicate payments for the same elements of loss. EXCLUSIONS - What We Do Not Cover "We" do not cover: 1. damage caused by "anyone we protect" to property they own or are transporting. 2. damage caused by "anyone we protect" to property rented to them or in their charge. This exclusion does not apply to household goods or household premises. X 3. damages caused intentionally by or at the direction of "any- one we protect." 4. an "owned auto we insure" while being used in the "auto business." This exclusion does not apply if the "owned auto we insure" is being used by: a. "you" or a "resident" of "your" household; or b. any partner, agent, or employee of "you" or a "resident" of "your" household. 5. an "owned auto we insure" or a "nonowned auto" while used in the business of the United States Government where the United States Government is responsible under the Federal Tort Claims Act. (28USCA§ 1346, 2671-2680). 6. a "nonowned auto:" a. while used by "anyone we protect" while employed or otherwise engaged in the "auto business;" b. while used in connection with any other business or oc- cupation of "anyone we protect." This exclusion does not apply to a "private passenger auto" or "trailer;" c. while being operated by someone other than "you" or a "relative" even if the "nonowned auto" is in the custody or control of "anyone we protect;" d. furnished or available for the regular use of a "relative" while a "relative" is using it. This exclusion does not ap- ply if the vehicle is fumished or available for "your" regular use; or e. furnished or available by a governmental agency or unit: 1. for "your" use while "you" or a "relative" are using it; or 2. for a "relative's" use unless, being used by "you." 7. 10. 11. 12. 13. 14. bodily injury to employees of "anyone we protect" occur- ring in the course of employment. "We" will provide cover- age for such an injury to a domestic employee not covered and not required to be covered by a workers compensation law. a vehicle "you" acquire during the policy period or any "temporary substitute" for it if there is other applicable in- surance. an "auto we insure" while hired by or rented to others for a fee or while available for hire by the public. "We" will pro- tect "you" or a "relative" held responsible for damages while "occupying" but not driving such a vehicle, if it is a "nonowned auto." Fee does not include payment received in a car pool or for trips for nonprofit social, educational, or charitable agencies. damages for which there is insurance under a nuclear en- ergy liability insurance policy, even if the limits of protec- tion under that policy have been used up. an "auto we insure" while being used in any prearranged or organized racing, speed or demolition contest, stunting activity or similar activities, or in practice for any such activities. punitive or exemplary damages and related defense costs. bodily injury or property damage arising directly or indi- rectly, in whole or in part, out of the actual, alleged or threatened inhalation of, ingestion of, contact with, expo- sure to, existence of or presence of any "fungi," wet or dry rot, or bacteria. bodily injury or property damage arising out of the owner- ship, maintenance, use, loading or unloading of a "miscel- laneous vehicle." LIMIT OF PROTECTION "We" will pay no more than the limit(s) shown on the "Declara- tions" for one "auto" in any one accident as explained below. It makes no difference how many persons "we" protect, "autos we insure," claims are made or "autos" are involved in the acci- dent. An "auto" and attached "trailer" are considered one "auto" under this coverage. If coverage is purchased on a "Split Limits" basis, the "Declara- tions" will show a PER PERSON and PER ACCIDENT limit for Bodily Injury Liability and a PER ACCIDENT limit for Property Damage Liability. The PER PERSON limit for Bodily Injury Liability is the most "we" will pay for all damages arising out of bodily injury to one person in any one accident. The PER ACCIDENT limit for Bodily Injury Liability is the most "we" will pay for all damages arising out of bodily injury to all per- sons resulting from any one accident, subject to the PER PER- SON limit. The PER ACCIDENT limit for Property Damage Liability is the most "we" will pay for all property damage caused by any one accident. If coverage is purchased on a "Single Limit" basis, the "Decla- rations" will show a PER ACCIDENT limit for Bodily Injury Liability and Property Damage Liability. This is the most "we" will pay for all damages arising out of bodily injury and prop- erty damage caused by any one accident. If an individual's damages derive from, arise out of or otherwise result from bodily injury to another person injured in the acci- dent or the death of another person killed in the accident, "we" will pay only for such damages within the PER PERSON limit available to the person injured or killed in the accident. OTHERINSURANCE This policy provides primary insurance for any "auto we in- sure" except a "nonowned auto." The policy's coverage is ex- cess over any other collectible insurance on a "nonowned auto," up to the limit(s) of protection for one "auto." "We" will, however, provide primary insurance for a motor ve- hicle "you" do not own if it is insured under a policy issued to a business engaged in selling, leasing, repairing, servicing, deliv- ering, testing, road testing, parking or storing motor vehicles. This applies only if "you" or a "relative" are operating the mo- tor vehicle and are not the owner, operator, employee or agent of that business. This insurance will be excess to that of a business engaged in storing, parking, servicing or repairing motor vehicles if an ac- cident occurs while "your" "owned auto we insure" is under control of the owner, operator, employee or agent of that busi- ness. If other insurance, collectible or not, covers an "auto" rented or leased for less than one year and it states that coverage is void if there is other available insurance, then coverages under this sec- tion are void. When there is other insurance applicable to the accident on the same basis, "we" will pay "our" share. "Our" share is the pro- portion that "our" limit of protection bears to the total of all applicable limits. "We" will never pay more than the limit of protection. PHYSICAL DAMAGE COVERAGES DEFINITIONS The following words and phrases have a special meaning when they appear in bold type and quotations in the PHYSICAL DAMAGE COVERAGES Section. • "Loss" means direct and accidental damage or direct and acci- dentalloss. • "Nonowned auto" means, while "you" or a "relative" are using it, any "private passenger auto," "moving van," X "trailer" or "temporary substitute" not owned or leased by "you" or a "relative." The operation or other use by "you" or a "relative" must be with the permission of the owner or "you" or the "relative" must reasonably believe the permission of the owner exists. OUR PROMISE - Comprehensive Coverage X X If Comprehensive Coverage is indicated on the "Declarations," "we" will pay for "loss" to an "auto we insure" and its equip- ment not caused by collision or upset. If the "loss" is to an "owned auto we insure," "we" will only pay if "you" purchased Comprehensive Coverage for the "owned auto we insure." "We" will pay for "loss" less the deductible shown on the "Dec- larations." Comprehensive Coverage includes glass breakage, contact with persons, animals, birds, missiles or falling objects. Should only "your" windshield be damaged, "we" will not apply the deductible if the windshield is repaired rather than replaced. OUR PROMISE - Collision Coverage If Collision Coverage is indicated on the "Declarations," "we" will pay for "loss" to an "auto we insure" and its equipment caused by collision or upset. If the "loss" is to an "owned auto we insure," "we" will only pay if "you" purchased Collision Coverage for the "owned auto we insure." "We" will pay for "loss" less the deductible shown on the "Declarations." "We" will not subtract the deductible if the accident is between an "auto we insure" and another "auto:" 1. insured by the Erie Insurance Group. X 2. not insured by the Erie Insurance Group, if: a. the "loss" to the "auto we insure" is greater than the de- ductible amount; b. the owner of the other "auto" has been identified; c. the owner or operator of the other "auto" is solely liable for the "loss;" and d. there is adequate property damage liability insurance which protects anyone responsible for the "loss." OUR PROMISE - Road Service (No Deductible Or Waiting Period Applies) If Road Service. Coverage is indicated on the "Declarations," X "we" will reimburse "you" for reasonable towing and labor costs required because an "auto we insure" is disabled. Labor must be done at the site of the disablement. "We" will only pay for "loss" to an "owned auto we insure" on which "you" have pur- chased Road Service Coverage. OUR PROMISE - Transportation Expenses (No Deductible Or Waiting Period Applies) If Transportation Expenses - Collision Coverage is indicated on the "Declarations," "we" will reimburse "you" for transporta- tion expenses that result from a Collision "loss" to an "owned auto we insure" that has a premium shown on the "Declara- tions" for this coverage. If Comprehensive Coverage is indicated on the "Declarations," "we" will reimburse "you" for transportation expenses that re- sult from a Comprehensive "loss" to an "owned auto we in- sure" that has a premium shown on the "Declarations" for this coverage. Auto rental, bus, or taxi fares are examples of covered Transpor- X tation Expenses. Payment may start on the day of the "loss" if the "auto" cannot be driven. If drivable, payment may start the day "you" leave the "auto" at the garage for repairs. Payment ends on the day "we" offer settlement or on the day the "auto:" 1. is replaced; 2. is returned to "you" in usable condition; or 3. could reasonably be expected to be repaired, whichever comes first. Transportation Expenses apply whether or not "we" pay for damages under Comprehensive or Collision Coverage. Transportation Expenses are provided for loss of use to a "nonowned auto" if: 1. "you" or a "relative" are legally liable for damages to the "nonowned auto;" and 2. "we" are provided with actual proof of loss of income. Total payment under Transportation Expenses, including loss of use, will not exceed: 1. Transportation Expenses - Comprehensive Coverage, $20 per day nor total more than $900 per loss unless a higher X limit is shown on the "Declarations." 2. Transportation Expenses - Collision Coverage, the limit shown on the "Declarations." ADDITIONAL PAYMENTS (No Deductible Applies To These Additional Payments) If Comprehensive Coverage and/or Collision Coverage are pur- chased, "we" will: 1. pay all reasonable expenses necessary to return "your" sto- len "auto we insure." 2. reimburse "you" for travel costs, including meals and lodg- X ing, paid by anyone because "you" were unable to reach "your" destination after "loss" to an "auto we insure." Pay- ment will not exceed $75 per person for each "loss." X 3. pay for "loss" to personal effects, including clothes and lug- X gage, that are normally carried by a person, while the per- sonal effects are in or upon an "auto we insure." The fol- lowing restrictions apply: a. Personal effects must be owned by "you" or a "relative." b. Money, professional or occupational tools or machines, sales samples, and merchandise for sale, delivery or ex- hibition are not considered personal effects. c. Theft losses are covered only if the entire vehicle is stolen. d. When "loss" results from a collision, there must be enough damage to the "auto we insure" to require a Col- lision "loss" payment by "us." e. Payment for "loss" to personal effects will not exceed $350. "We" will only pay for "loss" not covered by other X insurance. 4. pay all expenses necessary to replace a deployed airbag. 5. reimburse "you" up to $50 for the cost incurred for lock- X smith services if keys are accidentally locked in an "auto we insure." EXCLUSIONS - What We Do Not Cover "We" will not pay for "loss:" 1. confined to or resulting from wear and tear, freezing, me- chanical or electrical breakdown or failure. "We" will pay for such damage resulting from a covered "loss." A covered "loss" does not include a "loss" confined to mechanical or 7 electrical failure or body defects caused by or resulting from 9. faulty workmanship or negligence by "you" or others. 2. caused intentionally by or at the direction of "you" or a "relative." 10. 3. to any: 11. a. tape players; b. compact disc players or recorders; c. digital video disc players or recorders; d. video cassette players or recorders; 12. e. electronic navigational systems; f. radios; 13. g. two-way mobile radios or telephones; h. scanners; i. televisions; and 14. j. any other similar equipment that records, receives or transmits audio, visual or data signals. This exclusion does not apply to such equipment, its accesso- ries, attachments and antennas if it is permanently installed. 15. Payment for "loss" to permanently installed equipment will be limited to $1,000. This limit will not apply if the equipment is permanently installed: 16. a. in the opening of the dash, console, or overhead console, normally used by the auto manufacturer to install such equipment; or b. by the auto manufacturer in other locations of the "auto." Payment for "loss" to tapes, digital video discs or compact discs 17 X will be limited to no more than ten tapes, digital video discs or compact discs in any one "loss." Coverage for theft of tapes, digi- tal video discs or compact discs will be provided only if the sound equipment is stolen or,the entire "auto" is stolen. 4. to fax machines, personal computers and peripheral equip- ment and similar electronic equipment. 5. to a vehicle "you" acquire during the policy period or any "temporary substitute" for it, if there is other applicable insurance. 6. to a "nonowned auto:" a. while used in connection with the "auto business;" b. while used in connection with any other business or oc- cupation. This exclusion does not apply to a "private passenger auto" or "trailer;" c. while being used by someone other than "you" or a "relative" even if the "nonowned auto" is in the custody or control of "you" or a "relative;" or d. furnished or available for the regular use of "you" or a "relative." A "private passenger auto," "moving van" or "trailer" (not including a "temporary substitute") rented or leased to "you" for a period of more than 45 consecutive days will be considered as furnished or available for the regular use of "you" or a "relative." 7. to any "trailer" used as a residence, office, store, display or passenger "trailer." 8. to any "auto we insure" while hired by or rented to others for a fee, or while available for hire by the public. Fee does not include payment received in a car pool or for trips for nonprofit social, educational or charitable agencies. due to any act or condition of war, including discharge of any nuclear weapon (even if accidental). War (declared or unde- clared) means a state of armed hostile conflict between states or nations, civil war, insurrection, rebellion or revolution. due to radioactive contamination. to camper bodies unless described on the "Declarations" or replacing one described there. A camper body is a unit de- signed and equipped for use as living quarters to be mounted on an "auto" with a separate cab. to radar detectors and other equipment designed to give ad- vance warning of the operation of a speed-measuring device. to tires caused by road damage, such as a blow out or punc- ture, unless it results from another "loss" covered by this policy. to an "auto we insure" because of destruction or confisca- tion by governmental or civil authorities if "you," a "rela- tive" or a person using an "auto we insure" with "your" permission was involved in illegal activities. to an "auto we insure" while being used in any prearranged or organized racing, speed or demolition contest, stunting activity or similar activities, or in practice for any such ac- tivities. resulting directly or indirectly from "fungi," wet or dry rot, or bacteria, meaning the presence, growth, proliferation, spread or any activity of "fungi," wet or dry rot, or bacteria, even if other events or happenings contributed concurrently or in sequence to the "loss." due to diminution in value. Diminution in value means any actual or perceived "loss" in market or resale value that re- sults from a direct and accidental "loss." Diminution in value includes any actual or perceived "loss" or reduction in market or resale value after an "auto we insure" has been damaged and has been repaired. LIMIT OF PROTECTION "We" will pay the Actual Cash Value for "loss" to stolen or damaged property, but no more than: 1. what it would cost to repair or replace the property with other of like kind and quality; or 2. the Stated Amount that maybe shown on the "Declarations." Actual Cash Value reflects fair market value, age and condition of the property at the time of the "loss." An "auto" and attached "trailer" are considered to be two sepa- rate vehicles under these coverages. The limit of protection for "loss" to any "trailer" not owned by "you" is $2,000. X An "auto" and its equipment are considered one "auto" under these coverages including any deductible provision that applies. Equipment means that which is usual or incidental to the use of an "auto" as a vehicle. Equipment includes, but is not limited to: 1. customized or individually adapted items when built or fit in or upon pickups or vans: a. truck caps; b. bay or custom windows; c. interior wood trim; d. special lighting fixtures; and e. window treatments, such as draperies or mini-blinds. 2. equipment that allows a handicapped person to enter, exit or operate the vehicle; X 3. attached child safety seats; and 4. a camper body if it is: a. described on the "Declarations" or replaces one de- scribed there; and b. mounted on an "auto." "Loss" to a camper body while not mounted on an "auto" will be paid in accordance with the deductibles purchased on the camper body. OTHERINSURANCE When there is other insurance for "loss" to an "auto we insure," except a "nonowned auto," "we" will pay "our" share of the "loss." When there is "loss" to a "nonowned auto," "we" will pay the "loss" not covered by other insurance less any applicable de- ductible. When there is other insurance on a "nonowned auto," and it states that coverage is void if there is other applicable insurance, then coverages under this section are void. APPRAISAL If "you" and "we" fail to agree on the amount of "loss," either party may make written demand for an appraisal. Each party will select an appraiser and notify the other of the appraiser's identity within 20 days after the demand is received. The ap- praisers will select a competent and impartial umpire. If the ap- praisers are unable to agree upon an umpire within 15 days after both appraisers have been identified, "you" or "we" can ask a judge of a court of record in the state where "you" reside at the time the policy is issued to select an umpire. The appraisers will then set the amount of "loss." If the apprais- ers submit a written report of an agreement to "us," the amount agreed upon will be the amount of "loss." If they cannot agree, they will submit their differences to the umpire. A written award by two will determine the amount of "loss." X Each party will pay the appraiser they choose, and equally bear all other expenses of the appraisal. However, if the written de- mand for appraisal is made by "us," "we" will pay for the rea- sonable cost of "your" appraiser and "your" share of the cost of the umpire. "We" will not be held to have waived any rights by any act re- lated to appraisal. LOSS PAYMENT At "our" option, "we" will pay the "loss" in money, or repair or replace the damaged or stolen property. At any time before the "loss" is paid or the property is replaced, "we" may return any stolen property to "you." "We" will pay the reasonable expense for its return and for any damage to it. Upon payment of the "loss," "we" have the right to take all or part of the property at its agreed or appraised value. There can be no abandonment of property to "us." "We" may settle any claim for "loss" with "you" or anyone that has a legal interest in the property. For damage to a "nonowned auto," "we" will pay the broadest amount available among the coverages "you" purchased under this section. "You" must assign or transfer to "us" the Certificate of Title for the "auto" sustaining the "loss" before "we" will make a pay- ment for all or part of the actual cash value for a total "loss" to an "auto we insure." A total "loss" will be determined in com- pliance with the laws of the state in which "you" reside at the time the policy is issued. This paragraph is not applicable if "you" choose to retain ownership of the salvage vehicle as part of the total "loss" settlement. NO BENEFIT TO BAILEE No bailee will benefit, directly or indirectly, from this insurance. LOSS PAYABLE CLAUSE This clause applies to the Physical Damage Coverages provided by this policy for the Lienholder named in Item 3. on the "Dec- larations." It protects the Lienholder's financial interest in the vehicle insured. Payment for any "loss" under these coverages will be made in accordance with the financial interest the "Named Insured" and the Lienholder, as its interest may appear for specific vehicle(s), have in the "loss." Payment may be made to the "Named In- sured" and the Lienholder jointly or to either or both separately. If separate payments are made, the financial interests of both will be protected by "us." When "we" pay the Lienholder for a "loss" for which the "Named Insured" is not insured, "we" are entitled to the Lienholder's right of recovery against the "Named Insured," to the extent of "our" payment. "Our" recovery will not impair the right of the Lien- holder to recover the full amount of its claim. The Lienholder will, on demand, pay any premium due under this policy for coverages which protect the Lienholder's inter- ests, if the "Named Insured" fails to do so. The Lienholder's financial interest will be protected regardless of the acts or neglect of the "Named Insured," subsequent legal encumbrance or any change in ownership of the property. How- ever, this clause does not apply, and "we" will not protect, the Lienholder's financial interest in any case of fraudulent acts or omissions by the "Named Insured" or anyone representing him. If "we" cancel or refuse to renew this policy, not less than 10 days advance notice of such termination will be mailed to the Lien- holder. If this policy is cancelled by the "Named Insured," "we" will mail notice of cancellation to the Lienholder. Mailing notice to the Lienholder's address shown on the "Declarations" will be sufficient proof of notice. ADDITIONAL COVERAGE REIMBURSEMENT FOR COVERAGE IN MEXICO AND OTHER FOREIGN COUNTRIES WARNING: "We" will not be liable for damages or other expenses incurred in any foreign country where this policy X does not apply. In Mexico, however, Collision Coverage, if purchased, will apply. X "We" will reimburse "you" for premium paid for up to 30 days of coverage in a foreign country where this policy does not apply. Reimbursement will be made ONLY for similar coverages. Such coverages must apply to an "owned auto we insure," used by "you" or a "relative" in the foreign country. Reimbursement will not be made to anyone employed, sta- tioned in the armed services, or attending school in a foreign country. RIGHTS AND DUTIES - GENERAL POLICY CONDITIONS "We," "you" and anyone else protected by this policy must do certain things in order for the terms of this policy to apply. DEFINITIONS The following words and phrases have a special meaning when they appear in bold type and quotations in the RIGHTS AND- DUTIES - GENERAL POLICY CONDITIONS Section. COOPERATION "You" agree to cooperate with "us" by promptly and truthfully answering all questions about drivers and "autos we insure" and signing all papers relating to such insurance. • "Anyone we protect" means: 1. "you" and "your" spouse, if a "resident" of "your" household; and 2. persons or organizations defined as "anyone we protect" in the LIABILITY PROTECTION Section or any appli- cable coverage. ASSIGNMENT Interest in this policy may be transferred only with "bur" writ- ten consent. "We" may require evidence that all "Named Insur- eds" approve the assignment. BANKRUPTCY OF ANYONE WE PROTECT Bankruptcy or insolvency of "anyone we protect" will not re- lieve "us" of "our" obligations. CONCEALMENT, FRAUD OR MISREPRESENTATION Except as modified by law, this entire policy is void if, before or after an accident or loss, "anyone we protect" has intentionally concealed or misrepresented any material fact or circumstance concerning this insurance. In the event of a fraudulent claim, "we" will not make payment for the accident or loss. CONTINUOUS POLICY This policy is a continuous policy. It will continue in force until cancelled by "you" or terminated by "us" as explained in the Ter- mination Condition. Each year "we" will send "you" a "Declara- tions" that shows the premium due for the next policy period. In return for this service, "you" must mail "us" written notice prior to the new policy period if "you" want to cancel. If "we" do not receive this notice, this policy remains in force and "you" must pay "us" the earned premium due for this time. HOW YOUR POLICY MAY BE CHANGED Changes To Your Policy This policy conforms to the laws of the state in which "you" reside at the time it is issued. If the laws of the state change, this policy will comply with those changes. "We" will give "you" the benefit of any change made by "us" if it does not require additional premium. This change will be effective as of the date "we" implement the change in "your" state. "You" may change this policy by asking "us." Asking "our" Agent is the same as asking "us." "Your" request must contain enough information to identify "you." If "we" agree with "your" request, "we" will then issue a "Declarations." If there is a change in the infomlation used to develop the policy premium, "we" may adjust "your" premium during the policy period effec- tive as of the date the change occurred. Premium adjustments will be made using the rules and rates in effect for "bur" use. Changes that may result in a premium increase or decrease during the pol- icy period include, but are not limited to: I . change to "your" address; 2. change to the location where the insured vehicle is princi- pally garaged; 3. change in "your" marital status; 4. change to the distance "you" drive to or from work or school; 5. change in the use of "your" vehicle (i.e., business use of a vehicle); 6. addition or deletion of an "auto" or lienholder or another party having a financial interest in "your" vehicle(s); 7. addition or deletion of a licensed driver in "your" household regardless of whether they have their own "auto" and insur- ance; and 10 changes which modify the appearance or performance of "your" vehicle with customized equipment. Customized equipment includes those items or changes that are other than what is offered by the auto manufacturer of that specific model of vehicle or what is added or altered by the auto dealer when the vehicle is new at the time of original sale. Equipment added to a vehicle to allow a disabled person to enter, exit or operate the vehicle is not considered custom- ized equipment. Your Duty To Notify Us of Changes "You" agree to promptly notify "us" if "you" have made any material changes, including, but not limited to, those listed above. Changes may result in an increased premium, an adjust- ment in the coverage available under this policy, or cancellation or nonrenewal as permitted by law. LAWSUITS AGAINST US No legal action may be brought against "us" until there has been full compliance with all the terms of this policy. The legal liabil- ity of "anyone we protect" must be determined before "we" may be sued. This determination may be made by a court of law or by written agreement of all parties, including "us." No one has the right to make "us" a party to a "suit" to determine the liability of "anyone we protect." In the event of a medical, in- come or funeral payments claim or a Comprehensive or Colli- sion loss, no "suit" may be brought against "us" until 30 days after proof of loss is filed. OUR RIGHT TO RECOVER FROM OTHERS After "we" make a payment under this policy, "we" will have the right to recover from anyone else held responsible. "Anyone we protect" is required to transfer this right to "us," and do clothing to harm this right. Anyone receiving payment from "us" and from someone else for the same accident or loss will reimburse "us" up to "bur" payment. "We" will pay all reasonable expenses "anyone we protect" may incur at "bur" request to help "us " recover damages from anyone else held responsible. This includes up to $300 a day for actual loss of earnings, limited to those days "anyone we pro- tect" attends hearings or trials at "our" request. PRIORITY X This insurance will first protect "you," "your" spouse residing in "your" household and then others "we" protect. SUBSCRIBER'S AGREEMENT The following applies only to policies issued by Erie Insurance Exchange. The Subscriber ("you" or "your") agrees with the other Sub- scribers at ERIE INSURANCE EXCHANGE ("ERIE"), a Re- ciprocal/Inter-Insurance Exchange, and with their Attorney-in- Fact, the Erie Indemnity Company ("we" or "us"), a Penn- sylvania corporation with its Home Office in Erie, Pennsyl- vania, to the following: 1. "You" agree to pay "your" policy premiums and to ex- change with other ERIE Subscribers policies providing in- surance for any insured loss as stated in those policies. 2. "You" appoint "us" as Attorney-in-Fact with the power to: a. exchange policies with other ERIE Subscribers; b. take any action necessary for the exchange of such policies; c. issue, change, nonrenew or cancel policies; d. obtain reinsurance; e. collect premiums; f. invest and reinvest funds; g. receive notices and proofs of loss; h. appear for, compromise, prosecute, defend, adjust and settle losses and claims under "your" policies; i. accept service of process on behalf of ERIE as insurer; and j. manage and conduct the business and affairs of ERIE, its affiliates and subsidiaries. This power-of-attorney is lim- ited to the purposes described in this Agreement. 3. "You" agree that as compensation for "us:" a. becoming and acting as Attorney-in-Fact; b. managing the business and affairs of ERIE; and c. paying general administrative expenses, including sales commissions, salaries and employee benefits, taxes, rent, depreciation, supplies and data processing, "we" may retain up to 25% of all premiums written or as- sumed by ERIE. The rest of the premiums will be used for losses, loss adjustment expenses, investment expenses, dam- ages, legal expenses, court costs, taxes, assessments, license fees, and any other governmental fines and charges, estab- lishment of reserves and surplus, and reinsurance, and may be used for dividends and other purposes "we" decide are_to the advantage of the Subscribers. 4. "You" agree to sign and deliver to "us" all papers required to carry out this Agreement. 5. This Agreement, including the power-of-attorney, will not be affected by "your" subsequent disability or incapacity. 6. This Agreement is and will be binding upon "you," "us" and all executors, administrators, successors and assigns. SURVIVORS' COVERAGE If "you" die, the policy will cover: 1. "your" spouse if residing in the same household at the time of "your" death; 2. anyone having proper custody of an "owned auto we in- sure" until a representative is appointed, but only until the end of the policy period during which "your" death occurs; 3. "your" legal representative, but only while performing du- ties as "your" representative and only until the end of the policy period during which "your" death occurs; and 4. any "relative" covered under this policy on the date of X "your" death, but only until the end of the policy period dur- ing which "your" death occurs. 11 TERMINATION Cancellation "You" may cancel this policy by mailing or delivering to "bur" Agent or "us" written notice stating at what future date "you" want the cancellation to take effect. "We" may waive these re- quirements by confirming the date of cancellation to "you" in writing. "We" reserve the right to cancel for "your" noncompliance with "bur" premium payment plans. "We" do not waive "bur" right to cancel, even if "we" have accepted prior late payments. X If this policy is cancelled, "we" will return the pro rata unused share of "your" premium. Cancellation will be effective even if "we" have not given or offered any return premium. Nonrenewal Should "we" refuse to renew this policy, "we" will do so in compliance with the laws of the state in which "you" reside. "We" will notify "you" before the end of the policy period. Method Of Giving Notice "We" may cancel or refuse to renew this policy or any coverage by mailing "you" written notice stating the effective date of "bur" action. Mailing notice to the address shown on the "Dec- larations" will be sufficient proof of notice. The policy period will end on the date and time stated in the notice. WHAT TO DO WHEN AN ACCIDENT OR LOSS HAPPENS When there is an accident or loss, "anyone we protect" will: 1. notify "us" or "bur" Agent in writing as soon as possible stating the: a. name and policy number of "our" Policyholder; b. time, place and circumstances of the accident or loss; and c. names and addresses of injured persons and witnesses. 2. promptly notify the police in case of theft. 3. provide "us:" a. promptly, any papers that relate to the accident or loss; b. separate, signed, written and/or oral statements contain- ing all the facts about the claim; and c. proof of loss to damaged property. 4. at "our" request, separately: a. answer all questions about the accident or loss; b. submit to examinations and statements under oath and sign transcripts of the same; c. assist in making settlement; d. help "us" enforce any right of recovery against anyone liable to "anyone we protect;" e. cooperate with "bur" investigations and any lawsuits; f. attend hearings and trials; g. assist "us" in securing and giving evidence and in obtain- ing the attendance of witnesses; h. submit to physical and mental examination by doctors "we" choose as often as "we" reasonably require. "We" will pay for these examinations; i. sign papers to allow "us" to obtain medical reports, earn- ings statements and copies of records; and j. allow "us" to inspect and appraise the damaged property before its repair or disposal. 5. not make payments, assume obligations or incur expenses, except at their own cost. 6. protect "autos we insure" from further damage. "We" will pay reasonable costs to do so. "We" will not pay for loss due to "your" failure to protect an "auto we insure" from further damage after a loss. WHEN AND WHERE YOUR POLICY APPLIES This policy applies to accidents or losses that occur during the policy period in the United States of America, its territories and possessions, Puerto Rico, Canada or between their ports. The policy period is shown on the "Declarations." Unless otherwise specified on the "Declarations," the policy period begins and ends at 12:01 A.M., Standard Time at the stated address of the "Named Insured." This policy has been signed on "bur" behalf in Erie, Pennsylvania, by "our" President and Secretary. If required by law, it has been countersigned on the "Declarations " by "our" Authorized Agent. Se?x+ee®y ,C=? 9.6f 4aQ2)( Erie Insurance Home Office • 100 Erie Insurance Place • Erie. PA 16530 • 814.870.2000 Visit our Website at www.eriein.surance.com FAP (Ed. 3/07) OF-8522 12 F I I ;21:41h, ERIE INSURANCE GROUP ERE® PRIVATE PASSENGER AUTO AFPF01 (Ed. 3/07) OF-4625 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. FIRST PARTY BENEFITS ENDORSEMENT -- PENNSYLVANIA This endorsement contains provisions applicable to First Party Benefits Coverage and changes provisions contained in your policy to the extent that the provisions in this endorsement are different from those in your policy. Coverage is provided only if a premium for the specific First Party Benefit selected is shown on the Declarations. DEFINITIONS Words and phrases in bold type and quotations are used as defined in this endorsement. If a word or phrase in bold type and quotations is not defined in this endorse- ment, then the word or phrase is used as otherwise defined in the GENERAL POLICY DEFINITIONS section of the policy. "Anyone we protect" means: I. "you;" 2. a "relative;" 3. an individual specifically named on the "Declarations" for coverage under this First Party Benefits Endorsement, and that person's "relatives;" and 4. anyone else who sustains "bodily injury" while: a. "occupying" an "insured motor vehicle," or b. a nonoccupant of a "motor vehicle" if injured as a result of an accident in Pennsylvania involving an "insured motor vehicle." An unoccupied, parked "insured motor vehicle" is not a "motor vehicle" involved in an accident unless it was parked in a manner so as to create an unreason- able risk of injury. "Bodily injury" or "injury" means accidental bodily harm to a person and that person's resulting illness, disease or death. "Bodily injury" includes mental injury only if it arises out of bodily harm sustained in an accident covered by this endorsement. "Insured motor vehicle" means a "motor vehicle:" 1. to which the Bodily Injury Liability insurance of this policy applies and for which a specific premium is charged, and 2. for which "you" maintain First Party Benefits on this policy as required under the Pennsylvania Motor Vehicle Financial Responsibility Law, as amended. "Relative" means a "resident" of "your" household who is: 1. a person related to "you" by blood, marriage or adoption; 2. a ward or any other person under 21 years old in "your" care; or 3. a minor in the custody of a "relative." OUR PROMISE As "you" selected in accordance with the Pennsylvania Motor Vehicle Financial Responsibility Law, as amended, "we" will pay for: 1. medical expenses, 2. funeral expenses, and/or 3. income loss, arising from "bodily injury" to "anyone we protect" due to an accident resulting from the maintenance or use of a "motor vehicle" as a vehicle. "We" will pay these benefits no matter who is at fault in the accident. BENEFITS Medical Expenses "We" will pay reasonable and necessary charges for: 1. medical treatment, including but not limited to: a. medical, hospital, surgical, nursing and dental services; b. medications, medical supplies and prosthetic devices; and c. ambulance. 2. medical and rehabilitative services, including but not limited to: a. medical care; b. licensed physical therapy, vocational rehabili- tation and occupational therapy; c. osteopathic, chiropractic, psychiatric and psy- chological services; and d. optometric services, speech pathology and audiology. 3. nonmedical remedial care and treatment rendered in accordance with a recognized religious method of healing. 1 Payment of medical expenses will be made pursuant to Section 1797 (a) of the Pennsylvania Motor Vehicle Financial Responsibility Law, and as it may be amended. All medical treatment and medical and rehabilitative ser- vices must be provided by or prescribed by a person or facility approved by the Department of Health, the equivalent governmental agency responsible for health programs or the accrediting designee of a department or agency of the state in which those services are provided. "We" use Peer Review Organizations (PRO) which have been approved by the Insurance Commissioner to eval- uate whether or not: 1. treatment; 2. health care services; 3. products; or 4. accommodations; which were provided conform to professional standards of performance and were reasonable and medically neces- sary. "We," the injured person or the provider may request a reconsideration by the PRO within 30 days of the PRO's initial determination. This request for recon- sideration as to the reasonableness and necessity of treat- ment must be made pursuant to Section 1797 (b) of the Pennsylvania Motor Vehicle Financial Responsibility Law, and as it may be amended. If "we" refuse payment of a provider's bill and do not challenge it before a PRO within 90 days of receipt, the injured person may ask the court to review "our" refusal to pay. This 90 day provision does not apply to contin- uing treatment or services. Payment of medical expenses will not exceed 110% of the: 1. prevailing charge at the 75th percentile; 2. applicable fee schedule, the recommended fee or the inflation index charge; 3. diagnostic-related groups (DRG) payment; or 4. fee established by the Insurance Commissioner, whichever pertains to the specialty service involved, determined to be applicable in the Commonwealth of Pennsylvania under the Medicare Program for compa- rable services at the time the services were rendered, or the provider's usual and customary charge, whichever is less. If a fee, charge or payment has not been calculated under the Medicare Program for a particular treatment, accom- modation, product or service, the amount of the payment may not exceed 80% of the provider's usual and customary charge. If acute care is provided in an acute care facility to a patient with an immediately life-threatening or urgent injury by a Level I or Level II trauma center accredited by the Pennsylvania Trauma Systems Foundation under the Emergency Medical Services Act (P.L.164, No.45), or a major burn injury patient by a bum facility which meets all the service standards of the American Burn Association, the amount of payment may not exceed the usual and customary charge. Funeral Expenses If a premium appears on the "Declarations" for this cov- erage, "we" will pay reasonable and necessary expenses directly related to the funeral, burial, cremation or other form of disposition of the remains of the deceased person "we" protect. The expenses must be incurred as a result of the death of "anyone we protect" and within 24 months from the date of the accident. Income Loss If a premium appears on the "Declarations" for this cov- erage, "we" will pay loss of income meaning 80% of gross income actually lost by "anyone we protect." Loss of income includes reasonable expenses actually incurred for hiring: 1. a substitute to perform the work "anyone we protect" who is self-employed would have performed except for "bodily injury," or 2. special help, thereby enabling a person to work, thereby reducing loss of gross income. "We" will not pay for: 1. any loss of income until five full working days have been lost by "anyone we protect" because of the "bodily injury;" 2. loss of expected income for any period following the death of "anyone we protect;" or 3. expenses incurred for services performed following the death of "anyone we protect." Accidental Death If a premium appears on the "Declarations" for this cov- erage, "we" will pay for accidental death arising from "bodily injury" to: 1. "you;" 2. a "relative;" or 3. an individual specifically named on the "Declarations" for coverage under this First Party Benefits Endorsement, and that person's "relatives;" due to an accident resulting from the maintenance or use of a "motor vehicle" as a vehicle. "We" will pay this benefit no matter who is at fault in the accident. This death benefit will be paid to the executor or admin- istrator of the deceased's estate should "bodily injury" cause death within 24 months from the date of the acci- dent. 2 Combination Package If a premium appears on the "Declarations" for "COM- BINATION PACKAGE", "we" will pay for medical expenses, funeral expenses, income loss, and accidental death as described and limited above. "Our" payment is limited to $177,500 in the aggregate or to the expenses or loss incurred within three years from the date of the acci- dent, whichever occurs first. However, within this $177,500, "we" will pay no more than $25,000 for an accidental death benefit nor $2,500 for funeral expenses. Extraordinary Medical Benefits If a premium appears on the "Declarations" for this cov- erage, "we" will pay benefits for reasonable and necessary medical expenses in excess of $100,000 arising from "bodily injury" to "anyone we protect." The "injury" must be due to an accident resulting from the mainte- nance or use of a "motor vehicle" as a vehicle. "We" will pay these benefits no matter who is at fault in the acci- dent. No benefits will be paid under this coverage until such medical expenses exceed $100,000. Subject to a lifetime aggregate limit of $1,000,000, the most "we" will pay on behalf of "anyone we protect" as a result of one accident is $50,000 per year. However, during the first 18 months of eligibility, "we" will make payments in excess of the $50,000 per year limit, subject to the lifetime aggregate limit of $1,000,000. EXCLUSIONS - What We Do Not Cover "We" will not pay for "bodily injury" sustained by "anyone we protect:" 1. who is the owner of a. only one currently registered "motor vehicle" for which Financial Responsibility is not provided; or b. more than one currently registered "motor vehicle" if Financial Responsibility is not pro- vided on any of the vehicles. If Financial Responsibility is provided on some cur- rently registered "motor vehicles" and not provided on others, "we" will not pay for "bodily injury" to the owner while "occupying" or operating an owned "motor vehicle" for which Financial Responsibility is not provided. "Financial Responsibility" means the ability to respond for damages when liable on account of acci- dents arising out of the maintenance or use of a "motor vehicle," in compliance with the requirements set forth in 75 Pa. C.S. 1701 et. seq. 2. while "occupying" or being struck by: a. a motorcycle, motor driven cycle, motorized pedalcycle or like type vehicle required to be reg- istered under Title 75; b. a recreational vehicle not intended for highway use; or c. any other type of "motor vehicle" not required to be registered under Title 75. 3. other than "you," a "relative" or an individual specif- ically named on the "Declarations" for this coverage and that person's "relative," who knowingly steals a "motor vehicle" if the "bodily injury" arises out of the maintenance or use of the stolen vehicle. 4. when the conduct of that person contributed to the "bodily injury" sustained by that person, while: a. intentionally injuring or attempting to inten- tionally injure himself or another, b. committing a felony, or c. seeking to elude lawful apprehension or arrest by a law enforcement official. 5. not "occupying" a "motor vehicle," other than "you," a "relative" or an individual specifically named on the "Declarations" for this coverage and that person's "relative," if the accident occurs outside the Com- monwealth of Pennsylvania. 6. as a direct result of loading or unloading any "motor vehicle," except while "occupying" a "motor vehicle." 7. while maintaining or using a "motor vehicle" while located for use as a residence or premises. 8. due to war, whether or not declared, civil war, insurrection, revolution or rebellion or any accompa- nying acts or conditions. 9. caused by nuclear radioactivity or explosion. 10. arising out of the ownership, maintenance, use, loading or unloading of a vehicle "anyone we protect" owns that is unregistered and not an "insured motor vehicle." 11. resulting from the use of any weapon. 12. resulting from assault and/or battery. LIMIT OF PROTECTION "Our" duty to pay benefits to any one person "we" protect in one accident is restricted to the First Party Benefits limits "you" selected as shown on the "Declara- tions" for one "insured motor vehicle." Benefits will not be increased for any person "we" protect by adding together the limits of protection: 1. under this policy because there are multiple "motor vehicles" covered under this policy, or 2. under multiple "motor vehicle" policies covering "anyone we protect" for the same loss. Any amount payable by "us" for: 1. medical expenses greater than $100,000 will be excess over any amount paid or payable under Extraor- dinary Medical Benefits, and 2. First Party Benefits will be excess over all benefits that "anyone we protect" receives or is entitled to receive under any workers' compensation law or similar law. 3 PRIORITY OF POLICIES "We" will pay First Party Benefits in accordance with the following order of priority. "We" will not pay if there is another insurer at a higher level of priority even if that other insurer has paid its limits. The priority levels shown below are in descending order from highest to lowest: First - The insurer providing benefits to the injured person who is a named insured under its policy. Second - The insurer providing benefits to the injured person as an insured under its policy. Third - The insurer of the "motor vehicle" which the injured person is "occupying" at the time of the accident. Fourth - The insurer providing benefits on any "motor vehicle" involved in the accident if the injured person was not "occupying" a "motor vehicle." If two or more policies have equal priority: 1. the insurer against which the claim is first made will process and pay the claim as if wholly responsible. The insurer is then entitled to recover contribution pro rata from any other insurer for the benefits paid and the costs of processing the claim. Under the Fourth priority, proration will be based on the number of involved "motor vehicles." RIGHTS AND DUTIES - GENERAL POLICY CONDITIONS The following conditions are added: MEDICAL REPORTS - PROOF OF CLAIM As soon as practicable, "anyone we protect," or someone on such person's behalf, will give "us" written proof of claim, under oath if required, fully describing the nature and extent of "bodily injury," treatment and rehabilitation received and contemplated and other information to assist "us" in determining the amount due and payable. If benefits for income loss are claimed, "anyone we protect" presenting such claim will authorize "us" to obtain details of all earnings paid to such person by an employer or earned since the time of the "injury" or during the year immediately preceding the date of the accident. NONDUPLICATION OF BENEFITS No person "we" protect will recover duplicate benefits for the same elements of loss under this or any other similar automobile insurance including self-insurance. The following condition is deleted: OUR RIGHT TO RECOVER FROM OTHERS 2. the maximum recovery under all policies will not exceed the amount payable under the policy with the highest dollar limits of benefits. OTHER PROVISIONS All other provisions of the policy apply. 4 1221,11413 ERIE ERIE INSURANCE GROUP PRIVATE PASSENGER AUTO AFPA03 (Ed. 3/07) OF-6380 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. POLICY CHANGE ENDORSEMENT -- PENNSYLVANIA GENERAL POLICY DEFINITIONS "We" may deny coverage for an accident or loss if "anyone we protect" intentionally conceals or misrepre- The following definitions are added under the GENERAL sents any material fact or circumstance in connection POLICY DEFINITIONS section: with the presentation or settlement of a claim. "Noneconomic loss" means pain and suffering and other nonmonetary detriment. "Serious injury" means a personal injury resulting in death, serious impairment of body function or perma- nent, serious disfigurement. RIGHTS AND DUTIES - GENERAL POLICY CONDITIONS CONCEALMENT, FRAUD OR MISREPRESENTATION This condition is deleted and replaced by the following: Within the first sixty (60) days this policy is in effect, "we" may void this policy in its entirety or deny coverage if, before or after an accident or loss, "anyone we protect" has intentionally concealed or misrepresented any mate- rial fact or circumstance concerning this insurance. After this policy has been in effect for sixty (60) days, "we" may void this policy if: 1. "anyone we protect" has intentionally concealed or misrepresented any material fact concerning this insurance; 2. "we" could not have reasonably discovered the concealment or misrepresentation within the first sixty (60) days this policy was in effect; and 3. the undisclosed information would have caused "us" to refuse to insure the risk. If "we" void this policy after it has been in effect for sixty (60) days, coverage under the Liability Protection and the First Party Benefits Endorsement will remain in effect for bodily injury or property damage sustained by innocent third parties, provided that such injury or damage is sustained before "we" notify the "Named Insured" that the policy is void. If "we" void this policy after it has been in effect for sixty (60) days, coverage under the Uninsured/Underinsured Motorists Coverage Endorsement, if purchased and indicated on the "Decla- rations," will remain in effect for bodily injury sustained by innocent third parties, provided that such injury or damage is sustained before "we" notify the "Named Insured" that the policy is void. In the event of a fraudulent claim, "we" will not make payment for the accident or loss. TERMINATION Cancellation The following is added: For cancellations mailed during the first 60 days the policy is in effect, the effective date of cancellation will never be earlier than 15 days after "we" send it. For cancellations mailed after the first 60 days the policy is in effect, "we" will cancel only for one or more reasons permitted by state law, including the following reasons: 1. nonpayment of premium; 2. "your" driver's license or motor vehicle registration has been under suspension or revocation during the policy period; or 3. concealment of a material fact, making a material allegation contrary to fact, or making a misrepresen- tation of a material fact, where such concealment, allegation or misrepresentation was material to acceptance of the risk. The effective date of cancellation will never be earlier than: a. 60 days after "we" send it; or b. 15 days after "we" send it for nonpayment of premium or when the cause of cancellation is license suspension or revocation. Nonrenewal The following is added: "We" will send this notice at least 60 days in advance of the end of the policy period. MISCELLANEOUS VEHICLE PROVISIONS If a "miscellaneous vehicle" is listed in ITEM 4 on the 'Declarations," the following provisions apply: GENERAL POLICY DEFINITIONS If a "miscellaneous vehicle" is listed in ITEM 4 on the 'Declarations," then the GENERAL POLICY DEFI- NITIONS are revised as follows: The following definitions are revised: Under "Owned auto we insure" the following sub- paragraphs are added: 4. any "miscellaneous vehicle" described on the "Declara- tions" for the coverages "you" have purchased; or 5. any "additional miscellaneous vehicle" or "replacement miscellaneous vehicle ." Under 'Temporary substitute" the following paragraph is added: "Temporary substitute" means any "miscellaneous vehicle" which is a substitute for an owned "miscellaneous vehicle" described on the "Declarations" which has been withdrawn from normal use because of a breakdown, destruction, loss, repair or servicing. The "temporary substitute" cannot be owned by "you" and must be used with the permission of the owner. The "temporary sub- stitute" must be the same type of "miscellaneous vehicle" as shown on the "Declarations." The following definitions are added: "Additional miscellaneous vehicle" means a "miscellaneous vehicle" other than a "replacement miscellaneous vehicle" which "you" acquire, purchase or lease during the policy period. For coverage to apply, "we" must insure all owned "miscellaneous vehicles" of the same type on the date "you" acquire an "additional miscellaneous vehicle." "We" will not automatically cover an "additional miscel- laneous vehicle" when "we" do not already insure a "mis- cellaneous vehicle" of the same type owned by "you." "Additional miscellaneous vehicle" does not include any "miscellaneous vehicle" that "you" acquire, purchase or lease with anyone other than a "relative." Coverage does not apply to an "additional miscellaneous vehicle" regis- tered to a corporation or other business entity. "You" must notify "us," during the policy period, of "your" intention to have this policy apply to the "addi- tional miscellaneous vehicle." If "you" obtain an "addi- tional miscellaneous vehicle" within 30 days prior to the end of the policy period, "you" have 60 days after acqui- sition to notify "us." Should a loss occur involving an "additional miscella- neous vehicle" prior to "your" notifying "us," the "addi- tional miscellaneous vehicle" will have the broadest coverage "you" have purchased for any one vehicle listed on the "Declarations." If "you" do not have: 1. Comprehensive Coverage on any vehicle listed on the "Declarations," then Comprehensive Coverage will apply, subject to a $500 deductible. However, Comprehensive coverage will end seven days after "you" acquire, purchase or lease the vehicle or when "you" report the "additional miscellaneous vehicle" to "us," whichever occurs first. Collision Coverage on any vehicle listed on the "Declarations," then Collision Coverage will apply, subject to a $500 deductible. However, Collision Coverage will end seven days after "you" acquire, purchase or lease the vehicle or when "you" report the "additional miscellaneous vehicle" to "us," which- ever occurs first. "Replacement miscellaneous vehicle" means a "miscella- neous vehicle" that "you" acquire, purchase or lease within the policy period to replace a "miscellaneous vehicle" of the same type described on the "Declarations." "Replacement miscellaneous vehicle" does not include a "miscellaneous vehicle" that "you" acquire, purchase or lease with anyone other than a "relative." Coverage does not apply to a "replacement miscellaneous vehicle" regis- tered to a corporation or other business entity. "You" must notify "us" during the policy period of "your" intention to have this policy apply to a "replacement mis- cellaneous vehicle." If "you" obtain a "replacement mis- cellaneous vehicle" within 30 days prior to the end of the policy period, "you" have 60 days after acquisition to notify "us." Should a loss occur involving a "replacement miscella- neous vehicle" prior to "your" notifying "us," the "replace- ment miscellaneous vehicle" will have the broadest coverage "you" have purchased for any one vehicle listed on the "Declarations." If "you" do not have: 1. Comprehensive Coverage on any vehicle listed on the "Declarations," then Comprehensive Coverage will apply, subject to a $500 deductible. However, Comprehensive coverage will end seven days after "you" acquire, purchase or lease the vehicle or when "you" report the "replacement miscellaneous vehicle" to "us," whichever occurs first. 2. Collision Coverage on any vehicle listed on the "Declarations," then Collision Coverage will apply, subject to a $500 deductible. However, Collision Coverage will end seven days after "you" acquire, purchase or lease the vehicle or when "you" report the "replacement miscellaneous vehicle" to "us," whichever occurs first. LIABILITY PROTECTION EXCLUSIONS - What We Do Not Cover Exclusion 14. does not apply to a "miscellaneous vehicle" listed in ITEM 4 on the 'Declarations." OTHER PROVISIONS All other provisions of the policy apply. PRIVATE PASSENGER AUTO OF-6853 (Ed. 4/07) t? l?\ ERIE INSURANCE GROUP ERE® PENNSYLVANIA -- NOTICE TO POLICYHOLDERS NOTICE OF INSURANCE INFORMATION PRACTICES - As part of our procedure for processing your insurance, personal information such as a credit report, prior insurance claims report, and/or motor vehicle record may be obtained concerning you and other individuals proposed for coverage. No information from our files will be given to anyone without your written consent, except as allowed by law in order to conduct our business. You have the right to know the kind of information we have in your file, to have access to that information, and to request correction of information you believe is inaccurate. We will provide a more detailed description of our information practices, if you so request. FRAUD WARNING - Any person who knowingly and with intent to injure or defraud any insurer files an application or claim containing any false, incomplete or misleading information shall, upon conviction, be subject to imprisonment for up to seven years and the payment of a fine of up to $15,000. PLEASE NOTIFY YOUR AGENT WITHIN 60 DAYS IF YOU: • change your address; • add/delete an auto or lienholder or another party - change your marital status; having a financial interest in your vehicle(s); • change the distance you drive to or from work or - add/delete a licensed driver in your household, school; regardless of whether they have their own automo- bile and insurance; - change the use of your vehicle (i.e., business use of . modify the appearance or performance of your vehicle); vehicle with customized equipment. • change the location where your vehicle is principally garaged; This information is needed to properly rate your policy. If there is a change in the information used to develop your policy premium, we may adjust your premium during the policy period effective as of the date the change occurred. CUSTOMER INCENTIVES Neither First Accident Forgiveness nor Feature Fifteen will affect our right to cancel or nonrenew your policy should we decide such action is necessary. For additional information on First Accident Forgiveness or Feature Fifteen, contact your ERIE Agent. Feature Fifteen -- If you have been insured on a voluntary ERIE Auto Insurance Policy for 15 consecutive years, we will not apply a Defensive Driver Plan surcharge for at-fault accidents presented on your policy. A policy lapse of 30 days or more is considered an interruption of coverage and starts a new 15 year period. Violations subject to ER.IE's Defensive Driver Plan will continue to result in a surcharge. First Accident Forgiveness (Erie Insurance Exchange Policyholders Only) -- ERIE will forgive the surcharge on the first at-fault accident which is presented on your policy after the policy has been in force for three years. To qualify for this incentive, the policy must be surchargeable accident free for those first three years. Should a surchargeable accident occur in those first three years, a surcharge waiver will not be given on any future accidents. The policy will not be eligible for another surcharge waiver in the event of a future at-fault accident even if the driver responsible for the accident is removed from the policy. If you have more than one auto policy with us, only one accident will be forgiven. In the event of another surchargeable accident, the surcharge on the first accident will con- tinue to be forgiven. However, the first accident will be counted to determine the surcharge amount for a second or subsequent accident. Violations which are subject to ERIE's Defensive Driver Plan will continue to result in a sur- charge. DISCOUNTS - Listed below are the auto insurance discounts which are available from The ERIE. The discounts which have been applied to your policy are indicated on your Declarations. For additional information on these dis- counts, please contact your Agent. You must notify your Agent if you qualify for any of these discounts and they are not indicated on your Declarations. Accident Prevention Course Discount - Available for a three year period if all Named Insureds are age 55 or older as of the policy renewal date and have voluntarily and successfully completed a Motor Vehicle Accident Prevention Course which meets the standards of the State Department of Transportation. The discount will be applied to all motor vehicles on the policy. Age 55 Or Over Discount - Available if you are age 55 or over as of your renewal date AND the principal driver of a private passenger auto listed on your Declarations. Multi-Policy Discount - Available if you have an ERIE Family Auto Policy; and an: • ERIE HomeProtector or Mobile HomeProtector Policy; and/or ERIE Life Policy that meets specified criteria. The discount applies on the Family Auto Policy and the HomeProtector or Mobile HomeProtector policies. Passive Restraints Discount - Available for autos with factory-installed passive seat belts or air bags. Anti-Lock Brakes Discount - Available for autos equipped with anti-lock brakes on all four wheels. Anti-Theft Device Discount - Available for autos equipped with anti-theft devices such as: - security alarms - hood locking mechanisms unlocked by a key or elec- tronic device - manual or automatic switch devices - remote monitoring alarms and central base computer systems, or - identification systems which involve etching VIN or serial number on automobile parts. College Student Discount - Available to reflect the limited use of an auto if a young, unmarried driver: - is a full-time college student; - does not live at home, and - does not have a vehicle at school. Driver Training Discount - Available for drivers under age 21 who have successfully completed a driver training course which meets the standards of the Pennsylvania Department of Education or other educational agency. 100% Farm Use Discount - Available for autos used exclusively in connection with the operation of a farm owned or rented by you. You must reside on the farm. The autos cannot be used regularly in connection with any other business or occupation. If the fourth digit of the Rating Class is "F" the auto has received the Farm Discount. Multi-Car Discount - Available if two or more private passenger autos are insured by the ERIE INSURANCE GROUP and owned and used by the Named Insured or a relative residing in the same household. If "M" appears after the Rating Class in ITEM 4, the auto has received the Multi-Car Discount. Pay Plan Discount - Available if your policy premium is paid under one of the following ERIE pay plans. The discount applied under Plan A is greater than the dis- count applied under Plan B. - Plan A - entire premium is paid by policy effective date. - Plan B - one third of the premium is paid by policy effective date. One third of the premium is paid within 30 days after policy effective date. One third of the premium is paid within 60 days after policy effective date. To qualify for this discount, choose Plan A or Plan B prior to your policy effective date. If you choose one of these payment plans during the policy period, the dis- count will be applied at your next renewal. If you do not make payments in accordance with the terms of the pay plan you selected, you may lose the pay plan dis- count and your premium will be adjusted to reflect quar- terly payments for the remainder of the policy period. Pioneer Experience Rating Credit (PERC) - Available if your policy has a good claim/violation history. Variables that determine the discount percentage may include the violation history of all drivers on the policy, number of years the policy has been in force and the claims experi- ence of all drivers on the policy. Reduced Usage Discount - Available on an auto that will not be driven for at least 90 consecutive days during the policy period. This discount cannot be added retroactively. Youthful Driver Discount - Available to reflect the limited use of an auto due to the graduated licensing program. Unmarried drivers under age 21 who reside with their parents may be eligible for the discount. 2 NOTICE OF TORT OPTIONS - The laws of the Commonwealth of Pennsylvania give you the right to choose either of the following two tort options. If you wish to change the tort option that currently applies to your policy, please contact your ERIE Agent. "Limited Tort" Option - This form of insurance limits your rights and the rights of the members of your house- hold to seek financial compensation for injuries caused by other drivers. Under this form of insurance, you and other household members covered under this policy may seek recovery for all medical and other out-of-pocket expenses but not for pain and suffering or other non- monetary damages unless the injuries suffered fall within the definition of "serious injury" as set forth in the policy or unless one of several other exceptions noted in the policy applies. Each person who elects the limited tort alternative remains eligible to seek compensation for economic loss sustained in a motor vehicle accident as a consequence of the fault of another person pursuant to applicable tort law. Unless the injury sustained is a serious injury, each person who is bound by the limited tort election shall be precluded from maintaining an action for any noneco- nomic loss, except that an individual otherwise bound by the limited tort election: 1. who sustains damages in a motor vehicle accident as a consequence of the fault of another person may recover damages as if the individual damaged had elected the full tort alternative whenever the person at fault: a. is convicted or accepts Accelerated Rehabilitative Disposition (ARD) for driving under the influ- ence of alcohol or a controlled substance in that accident; b. is operating a motor vehicle registered in another state; c. intends to injure himself or another person, pro- vided that an individual does not intentionally injure himself or another person merely because his act or failure to act is intentional or done with his realization that it creates a grave risk of causing injury or the act or omission causing the injury is for the purpose of averting bodily harm to himself or another person; or d. has not maintained financial responsibility as required by the Pennsylvania Motor Vehicle Financial Responsibility Law. 2. shall retain full tort rights with respect to claims against a person in the business of designing, manu- facturing, repairing, servicing or otherwise main- taining motor vehicles arising out of a defect in such motor vehicle which is caused by or not corrected by an act or omission in the course of such business, other than a defect in a motor vehicle which is oper- ated by such business. shall retain full tort rights if injured while an occu- pant of a motor vehicle other than a private pas- senger motor vehicle. "Full Tort" Option - This form of insurance allows you to maintain an unrestricted right for yourself and other members of your household to seek financial compen- sation for injuries caused by other drivers. Under this form of insurance, you and other household members covered under this policy may seek recovery for all medical and other out-of-pocket expenses and may also seek financial compensation for pain and suffering or other nonmonetary damages as a result of injuries caused by other drivers. ABBREVIATIONS USED IN ITEM 5 OF YOUR DECLARATIONS ACC - ACCIDENT BOD - BODILY COLL - COLLISION COMP - COMPREHENSIVE COV- COVERAGE DED - DEDUCTIBLE INJ - INJURY M- THOUSAND MAX - MAXIMUM OCC - OCCURRENCE PERS - PERSONAL PROP- PROPERTY PRSN - PERSON RCV - RECREATIONAL CAMPING VEHICLE TRANSP - TRANSPORTATION WC - WORKERS COMPENSATION WK(S) - WEEK(S) ABBREVIATIONS FOR DRIVER ATTRIBUTES USED ON YOUR DECLARATIONS AA3 First chargeable accident in a three-year period, first year the surcharge is on policy AA2 - First chargeable accident in a three-year period, second year the surcharge is on policy AA1 - First chargeable accident in a three-year period, third year the surcharge is on policy AB3 - Second chargeable accident in a three-year period, first year the surcharge is on policy AB2 - Second chargeable accident in a three-year period, second year the surcharge is on policy AB1 - Second chargeable accident in a three-year period, third year the surcharge is on policy AC3 - Third chargeable accident in a three-year period, first year the surcharge is on policy AC2 - Third chargeable accident in a three-year period, second year the surcharge is on policy AC1 - Third chargeable accident in a three-year period, third year the surcharge is on policy ACF - Accident/Chargeable Motor Vehicle Request AFY - Accident Free Years APC - Accident Prevention Course ATS - At School Without Car CLU - Comprehensive Loss Underwriting Exchange CSD - College Student Discount DTD - Driver Training Discount F15 - Accident Forgiven Under Feature 15 FAF - First Accident Forgiven FFN - First Accident Forgiven 10S- Inexperienced Operator Surcharge LSP - License Suspension MDT - Mature Driver Training Course-Over Age MVL - Moving Violation MVR - Motor Vehicle Request MV1 - Hit and Run or Leaving the Scene of an MV2 - Drag Racing on a Public Highway MV3 - Driving under Suspension MV4 - Attempting to Evade Arrest in a Car MV5 - Assault with a Car MV6 - Any Misdemeanor or Felony Involving a MV7 - Driving While Intoxicated NSA - Non-surchargeable At-fault Accident NSN - Non-surchargeable Not At-fault Accident NVL - Non-chargeable Violation PAD - Preassigned Driver YDD - Youthful Driver Discount 55 Accident Car t? ?? ERIE, ERIE INSURANCE GROUP PRIVATE PASSENGER AUTO AFPU01 (Ed. 03/07) OF-8805 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. UNINSURED/UNDERINSURED MOTORISTS COVERAGE ENDORSEMENT -- PENNSYLVANIA This endorsement contains provisions applicable to Uninsured/ Underinsured Motorists Bodily Injury Coverage and changes provisions contained in your policy to the extent that the provisions in this endorsement are different from those in your policy. DEFINITIONS Words and phrases in bold type and quotations are used as defined in this endorsement. If a word or phrase in bold type and quotations is not defined in this endorse- ment, then the word or phrase is defined in the GENERAL POLICY DEFINITIONS section of the policy. "Anyone we protect" means: 1. "You" and any "relative;" 2. anyone else, while "occupying" any "owned auto we insure" other than: a. one while hired by or rented to others for a fee, or while available for hire by the public. Fee does not include payment received in a car pool or for trips for nonprofit social, educational or charitable agencies; or b. one being used without the permission of the owner; 3. anyone else who is entitled to recover damages because of bodily injury to any person protected by this coverage; and 4. anyone else while "occupying" a "nonowned auto" other than: a. one "you" are using that is owned or leased by another "resident" of "your" household; b. one furnished or available for the regular use of "you" or any "resident" of "your" household; c. one being operated by anyone other than "you" or a "relative;" d. one while hired by or rented to others for a fee, or while available for hire by the public. Fee does not include payment received in a car pool or for trips for nonprofit social, educational or charitable agencies; or e. one being used without the permission of the owner. "Extraordinary Medical Benefits Coverage" means cov- erage for injury arising out of the maintenance or use of a "motor vehicle" for which medical treatment and rehabilitative services exceed $100,000. "First Party Benefits" means F insurance first party benefits loss benefit, funeral benefit, combination benefit) in Pennsylvania Motor Vehicle Law. ennsylvania motor vehicle (medical benefit, income accidental death benefit, accordance with the Financial Responsibility "Nonowned auto" means, while "you" or a "relative" are using it, any "private passenger auto," "moving van," "trailer," or "temporary substitute" not owned or leased by "you" or a "relative." The operation or other use by "you' or a "relative" must be with the permission of the owner, or "you" or the "relative" must reasonably believe the permission of the owner exists. "Uninsured motor vehicle" means: 1. a "motor vehicle" for which there is no liability bond or insurance or self-insurance at the time of the acci- dent; 2. a "motor vehicle" for which the insuring company denies coverage or is or becomes insolvent; or 3. a hit-and-run "motor vehicle" which causes "you" bodily injury. The identity of the driver and owner of the hit-and-rnn vehicle must be unknown. The accident must be reported to the police or other proper governmental authority within 24 hours or as soon as possible. "You" must notify "us" as soon as possible. An "uninsured motor vehicle" does not include: 1. "motor vehicles" insured for Liability Protection under this policy; 2. "motor vehicles" that are owned, leased, or operated by a self-insurer within the meaning of the financial responsibility laws, motor carrier laws or similar laws, unless the self-insurer becomes insolvent; 3. "motor vehicles" designed for use mainly off public roads; or 4. "motor vehicles" owned, leased, or rented by, fur- nished to or available for the use of "you" or a "rela- tive." "Underinsured motor vehicle" means a "motor vehicle" for which the limits of available liability bonds or insurance or self-insurance at the time of the accident are insuffi- cient to pay losses and damages. An "underinsured motor vehicle" does not include: 1. "motor vehicles" insured for Liability Protection under this policy; or 2. "motor vehicles" designed for use mainly off public roads. OUR PROMISE If Uninsured Motorists Coverage is indicated on the "Declarations," "we" will pay damages for bodily injury that the law entitles "anyone we protect" or the legal rep- resentative of "anyone we protect" to recover from the owner or operator of an "uninsured motor vehicle." If Underinsured Motorists Coverage is indicated on the "Declarations," "we" will pay damages for bodily injury that the law entitles "anyone we protect" or the legal rep- resentative of "anyone we protect" to recover from the owner or operator of an "underinsured motor vehicle." Damages must result from a motor vehicle accident arising out of the ownership or use of the "uninsured motor vehicle" or "underinsured motor vehicle" as a motor vehicle and involve bodily injury to "anyone we protect." Bodily injury means physical harm, sickness, disease or resultant death to a person. Payment of medical expenses will not exceed 110% of the: 1. prevailing charge at the 75th percentile; 2. applicable fee schedule, the recommended fee or the inflation index charge; 3. diagnostic-related groups (DRG) payment; or 4. fee established by the Insurance Commissioner, whichever pertains to the specialty service involved, determined to be applicable in the Commonwealth of Pennsylvania under the Medicare Program for compa- rable services at the time the services were rendered, or the provider's usual and customary charge, whichever is less. If a fee, charge or payment has not been calculated under the Medicare program for a particular treatment, accom- modation, product or service the amount of the payment may not exceed 80% of the provider's usual and cus- tomary charge. If acute care is provided in an acute care facility to a patient with an immediately life-threatening or urgent injury by a Level I or Level II trauma center accredited by the Pennsylvania Trauma Systems Foundation under the Emergency Medical Services Act (P.L.164, No. 45), or to a major bum injury patient by a burn facility which meets all the service standards of the American Burn Association, the amount of payment may not exceed the usual and customary charge. Peer Review Organizations (PRO), which have been approved by the Insurance Commissioner to evaluate whether or not: 1. treatment; 2. health care services; 3. products; or 4. accommodations; which were provided conform to professional standards of performance and were medically necessary and eco- nomically provided, may be used by us. The injured person may request a reconsideration by the PRO within 30 days of the PRO's initial determination. If "we" refuse payment of a provider's bill and do not challenge it before a PRO within 90 days of receipt (90 day provision does not apply to continuing treatment or services), the injured person may ask the court to review "our" refusal to pay. "We" will not be bound by a judgment against the owner or operator of the "uninsured motor vehicle" or "underinsured motor vehicle" on issues of liability or amount of damages unless it is obtained with "our" written consent. EXCLUSIONS - What We Do Not Cover This insurance does not apply to: 1. damages sustained by "anyone we protect" if he, she or a legal representative settled with anyone who may be liable for the damages, without "our" written consent. 2. the benefit of any workers' compensation or disa- bility benefits carrier or anyone qualifying as a self- insurer under a workers' compensation, disability benefits or similar law. 3. damages sustained by "anyone we protect" while "occupying" or being struck by a "motor vehicle" owned or leased by "you" or a "relative," but not insured for Uninsured or Underinsured Motorists Coverage under this policy. 4. damages sustained by "anyone we protect" while "occupying" or being struck by a "miscellaneous vehicle" owned or leased by "you" or a "relative," but not insured for Uninsured or Underinsured Motor- ists Coverage under this policy. 5. punitive or exemplary damages and related defense costs. 6. noneconomic damages sustained in a "motor vehicle" accident by "anyone we protect" unless such person sustained "serious injury." Exclusion 6 applies only when the LIMITED TORT option is selected. 7. bodily injury sustained by "anyone we protect" resulting from the use of any weapon. 8. bodily injury sustained by "anyone we protect" resulting from assault and/or battery. 9. bodily injury sustained by "anyone we protect" while involved in committing a crime. 10. bodily injury to "you" or a "resident" using a non- owned "motor vehicle" or a nonowned "miscellaneous vehicle" which is regularly used by "you" or a "resi- dent," but not insured for Uninsured or Underinsured Motorists Coverage under this policy. 2 LIMIT OF PROTECTION Limitations of Payment If coverage is purchased on a "Split Limits" basis, the "Declarations" will show a PER PERSON and PER ACCIDENT limit for Uninsured and/or Underinsured Motorists Bodily Injury. The PER PERSON limit for Bodily Injury for one "auto" is the most "we" will pay for damages arising out of bodily injury or death to one person in any one accident. The PER ACCIDENT limit for Bodily Injury for one "auto" is the most "we" will pay for damages arising out of bodily injury or death to all persons resulting from any one accident, subject to the PER PERSON limit. If coverage is purchased on a "Single Limit" basis, the "Declarations" will show a PER ACCIDENT limit for Uninsured and/or Underinsured Motorists Bodily Injury. The PER ACCIDENT limit for one "auto" is the most "we" will pay for all damages arising out of bodily injury resulting from any one accident. Uninsured/Underinsured Motorists Coverage is not pro- vided for any "trailer," whether or not the "trailer" is attached to another "motor vehicle" or "miscellaneous vehicle." No separate limit of protection for Uninsured/ Underinsured Motorists Coverage is available for a "trailer," whether attached or unattached to a "motor vehicle" or "miscellaneous vehicle-" Uninsured/Underinsured Motorists Coverage does not apply to a "miscellaneous vehicle" owned or leased by "you" or a "relative" unless the "miscellaneous vehicle" is listed on the "Declarations" and a premium is shown for this coverage. No one will be entitled to receive duplicate payments for the same elements of loss. If an individual's damages derive from, arise out of, or otherwise result from bodily injury to another person injured in the accident or the death of another person killed in the accident, "we" will pay only for such damages within the PER PERSON limit available to the person injured or killed in the acci- dent. Stacked Coverage If Stacked Uninsured Motorists and/or Stacked Underinsured Motorists Coverage is purchased and the injured person is "you" or a "relative, " "we" will pay no more than the applicable sum of the Uninsured or Underinsured Motorists Coverage limits shown on the "Declarations. " If the injured person is other than "you" or a "relative," "we" will pay no more than the applicable Uninsured or Underinsured Motorists Coverage limits shown on the "Declarations" for the "auto" involved in the accident, regardless of the number of persons "we" protect, "autos we insure," premiums paid, claims made or "autos" involved in the accident. If none of the "autos" are involved in the accident, the highest limit of Uninsured or Underinsured Motorists Coverage applicable to any one "auto" will apply. Unstacked Coverage If Unstacked Uninsured Motorists and/or Unstacked Underinsured Motorists Coverage is purchased, "we" will pay no more than the Uninsured or Underinsured Motorists Coverage limits shown on the "Declarations" for the "auto" involved in the accident, regardless of the number of persons "we protect," "autos we insure," pre- miums paid, claims made or "autos" involved in the acci- dent. If none of the "autos" are involved in the accident, the highest limit of Uninsured or Underinsured Motor- ists Coverage applicable to any one "auto" will apply. Reductions The amount of damages paid or payable under this Uninsured or Underinsured Motorists Coverages will be reduced by: 1. the amounts paid or payable by or for those liable for bodily injury to "anyone we protect." 2. the amounts paid or payable to "anyone we protect" under the Liability Protection of this policy. Payment under these coverages to or for "anyone we protect" will reduce the amount of damages they may be entitled to recover from those protected under the Liability Protection of this policy. A person who recovers damages under Uninsured Motorists Coverage cannot recover damages under Underinsured Motorists Coverage for the same accident. In any action for damages for Uninsured Motorists bene- fits or Underinsured Motorists benefits arising out of the maintenance or use of a "motor vehicle," a person who is eligible to receive benefits under "First Party Benefits coverages shall be precluded from recovering the amount of: 1. required benefits paid or payable under "First Party Benefits;" and 2. medical and rehabilitation expenses which were paid or are payable under "Extraordinary Medical Bene- fits Coverage," if purchased. OTHER INSURANCE If other similar insurance applies to the accident, "we" will pay "our" share of the loss, subject to the other terms and conditions of the policy and this endorsement. "Our" share will be the proportion the limit of protection of this insurance bears to the total Limit of Liability of all applicable insurance. For bodily injury to "anyone we protect" while "occu- pying" a "motor vehicle" "you" do not own, "we" will pay the amount of the loss up to the applicable limit(s) shown on the "Declarations," less the amount paid or payable by other insurance. When the accident involves "underinsured motor vehicles," "we" will not pay until all other forms of insur- ance under all bodily injury liability bonds and insurance policies and self-insurance plans applicable at the time of the accident have been exhausted by payment of their limits or have been resolved by settlement or by final resolution of the court. . 1 PAYMENT OF LOSS When multiple policies apply, payment shall be made in the following order of priority: 1. A policy covering the "motor vehicle" the injured person is "occupying" at the time of the accident. 2. A policy covering a "motor vehicle" not involved in the accident with respect to which the injured person is an insured. If two or more policies have equal priority, the insurer against which the claim is first made shall process and pay the claim as if wholly responsible. Thereafter, the insurer is entitled to recover a pro rata contribution from any other insurer for the benefits paid and claims costs incurred. If "we" are the insurer against which the claim is first made, "we" will not pay more than "our" Limit of Protection. At "our" option, "we" will pay: 1. "anyone we protect;" 2. the surviving spouse; 3. the legal representative; or 4. anyone legally entitled to recover. TRUST AGREEMENT 1. When "we" owe payment to anyone under this cov- erage, they will: a. hold in trust for "us" all rights of recovery against the other party; b. do whatever is required to secure these rights, and do nothing to harm them; and c. sign and deliver to "us" all relevant papers. 2. When "we" pay anyone under this coverage, they will: a. repay "us" out of any damages recovered from the legally liable party; b. take any action necessary to recover payments made under this coverage, through a lawyer chosen by "us;" and c. repay "us" from any recovery for expenses, costs or lawyers' fees "we" paid in the action. RIGHTS AND DUTIES - GENERAL POLICY CONDITIONS LAWSUITS AGAINST US This condition is deleted and replaced by the following: "You" must comply with the terms of the policy before "you" may sue "us." Suit must be brought in a court of competent jurisdic- tion in the county and state of "your" legal domicile at the time of the accident. WHAT TO DO WHEN AN ACCIDENT OR LOSS HAPPENS The following is added: If claimants or their representatives bring action for damages, copies of suit papers must be sent to "us" at once. In an action against "us," "we" may require "anyone we protect" to join with "us" to bring those "we" allege to be liable into the action as party defendants. OTHER PROVISIONS All other provisions of the policy apply. 4 04102t20o8 13:04 Jack m Panas Insurance, Inc. (FAX)717 432 9280 P.0031004 P. _ t ?k I ? f Lill ea m r ? L.,.i. fc ? .. 1 ?s ? 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Av l• J'-4 f orr,ijo v_o pP0'. tn$ oK. vJIm J. 1u7v;; 1 al t nLpii? )?,. ;' O,It "Ah_s!3t cE a f svz), ') Ovi.s%nw Or r f .h s r, IM1 _YfE t)';]vLSL.?VtiS i aR`.!+-s' a ='41 ;y' V„ ',1:'f1 p? D'Ji.?:.Dn.-, LNE ? LNL u5? ut?DV, sit or_ ?^,n'i= cDVSn,^ ..C sLi>??jtc?tri ?D wl?atver L%QL'i.l.%_t? t11t 1;7.v: ?ua?L:?.11ut.?t P -?' .v Iticacst. 1?„Z w. a.LSY 6410212000 13:04 Jack M Parrs insurance, Inc. 341 3522'189 L..laly J L?fj. Yl 1\?.JV LLL•^?J Zunch § 17-104. Evidence of security prerequisite to registration. (FAX)717 432 9280 P.0041004 r. ?) .12 3 ;i a m. L3-iU ;10011 rage i or i a motor less (a) general.- The ve owne aotf the vehicle furnishes evid nce satisfactory torEhe Admi sistraation that the owner or prospective the required security is in effect. (b) owner to maintain required security.- The owner of a motor vehicle that is require uiod be registered in this State shall maintain the required security for the vehicle during the registration period. (c) Regulations and procedures.- The Administration, in consultation Nvith the M.ayland ltsurancc regu ons that Administration and representatives u?urer tD pr bide timely notit cat on,t hanl"uasured of he penalties establish procedures to o b be by that may be imposed in accordance with x.1.7=1-Q6 af -ti9 subtitle if the insured fails to renew or replace a policy of motor vehicle liability insurance without surrendering the evidences of registration. (d) Replacement vehicle.- rrl oerarily, to use while es that is loaned by an vehicle owned by theoindrepair facility ividual is notrin (1) In this subsection, "rei rent amen dealer, or that an individ p ed in that individual's applicable private passenger automobile "loss" is defu? use because of lose, as insurance policy or because of breakdown, repair, service, or damage. (2) subject to paragraph (3) of this subsection, an owner of a replacement vehicle may i satisfy he requirement of subsection (a) of this section by maintaining the required security described § gfAhi,s subtitle that is secondary to any other valid and collectible coverage and that extends coverage in amounts required under § 17.103 (b) of this subtitle to the owner's vehicle while it is used as a replacement vehicle. (3) If an owner of a replacement vehicle provides coverage as provided under paragraph (2) of this individual subsection, the agreement for the replacement vehicle to be signed the the renter or the least 10 p ito whom the vehicle is loaned shall contain a provision on the face of he agreement, ced or repaired -`;0" bold typetthat informs the ls?ent vvehithe clecand the coverage maintained by tthe owner on the primary ry coverage for the rep replacement vehicle is secondary. (An. Code 195`7, art. 661/2, § 7-101; 1977, ch. 14, § 2; 1996, ch. 673; 1997, ch. 362; 2000, ch. 514; 2005, ch. 430.1 ;?`tp:i; CT?1Cf1?.laxtsriG'Yly.C0II1iiT'i1I f lal?i;r`;tti?Ct..l! /::?t-vii? ? <3 ?3/ / ? - i ) )j0 V , , 1 I?. ERIE, ERIE INSURANCE GROUP Branch Office • 4901 Louise Dr. • Rossmoyne Business Center - P.O. Box 2013 • Mechanicsburg, PA 17055-0710 Phone (717) 795-8200 - Toll Free 1-500-382-1304 - Fax (717) 795-2315 • httP://www.erie-insurance.com Antwerpen Volkswagen Attention: Bob Thompson, 8065 Ritchie Highway Pasadena, MD 21122 Service Manager March 24, 2008 Re: ERIE Claim #010170969262 ERIE Insured: Todd Durf Date of Loss: 3/15/08 Ohl -"qlt Dear Mr. Thompson: This letter is in reference to the above-captioned loss and it will serve to follow-up our phone discussion of March 18, 2008. j ?a 4 rr?L twas o Eneolved in Our insured, Todd Durf, was driving one of your vehicles, a 2007 Volkswagens Jetta, ywenn he an accident on March 15, 2008, in Carlisle, Pennsylvania. According to Mr. Mary here is not only damage to your vehicle, Wilson. Insurance, he fell asleep ha c es owned b George Bocles. Therefore, but to the two parked According to our investigation, Mr. Durf was operating a loaner vehicle provided by Antwerpen, as his own personal auto was at your facility for repairs. Mr. Durf did not carry Collision coverage under his policy with Erie Insurance. Therefore, we are unable to pay for the damages sustained to your vehicle. In regard to the parked vehicles, a 1988 Chevrolet and a 2001 Ford, owned by George Boychock and Mary Wilson, respectively, the Erie Insurance Family Auto Policy provides Excess Liability coverage. Under the Liability Section, under "Other Insurance": servicing This insurance will be excess to that of a business engaged in storing, parking, g or repairing motor vehicles if an accident occurs while "your" "owned auto we insure" is under control of the owner, operator, employee or agent of that business. Since Mr. Durfs owned auto was in your facility for repairs, our policy is Excess as it pertains to the loaner vehicle. By way of this letter, we are requesting that you have your insurance carrier contact me to discuss this matter, considering there is damage to the two parked vehicles. We are also notifying the owners of the parked vehicles, by copy of this letter, that our policy, under ERIE Policy Number Q09-0121346, is Excess, until we are in a position to determine the type of insurance available under the policy provided to Antwerpen V.W. We look forward to hearing from your insurance carrier at their earliest opportunity. CC: HOME OFFICE Sincerely, APR 15 Melissa Cover Liability Adjuster III Harrisburg Branch Claims (717) 264-2356 MC: caw 1-866-331-3602 cc: Todd Durf cc: George Boychock cc: Mary Wilson (FAX)717 432 9280 P•0021004 04!0212048 13:04 Jack N Pangs insurance. Inc. TELEPHONE: (412) 787-5006 S,,LESIVNDERWRITIN6 FAX: (412) 787-5133 TOLL FREE: (WO) 243-5414 CLAIMS LOCAL FAX: (412) 494.3252 CLAIMS TOLL FREE FAX: (877) 487-1096 UNIVERSAL UNDERWRITERS GROUP REGIONAL OFFICE-Two Penn Center West, STE 200 • Pittsburgh, PA 15276-0113 MEMBER COMPANIES UNIVERSAL UNDERWRITERS INSURANCE COMPANY UNIVERSAL UNDERWRITERS LIFE INSURANCE COMPANY UNIVERSAL UNDERWRITERS sEWCE CORPORATION UNIVERSAL UNDERWRITERS OF TEXAS INSURANCE COMPANY UNIVERSAL. UNDERWRITERS ACCEPTANCE CORPORATION UNIVERSAL UNDERVVRI7ERS INSURANCE SERVICES, INC. UNIVERSAL UNDERWRITERS INSURANCE SERVICES OF TEXAS, INC. UNIVERSAL UNDERWRITERS INSURANCE SERVICES OF ALABAMA. INC. MARCH 27,2008 BRIE INSURANCE GROUP 725 NORTH US HIGHWAY 15 DILLSBURG, PA 17109 YOUR INSURED: OUR INSURED: DATE OF LOSS: YOUR CLAIM: OUR CLAIM: DEAR MS. COVER: TODD DURF ANTWERPEN VW 3-15-08 010170989262 420-14724 Please find attached the material you requested to support that your insured's coverage is primary under these set of cirigumstances. ly Yours, William Maug Sr. Claims Representative ... i .?i?Ft Y.?17'it+unai li "3s+'ri!ra nwaxs ?c;was'ry W , 1 6 ERIE INSURANCE GROUP Branch Office - 4901 Louise Dr. - Rossmoyne Business Center -P.O. Box 2013 -Mechanicsburg, PA 17055-0710 494, Phone (717) 795-8200 • Toll Free 1-800-382-1304 - Fax (717) 795-2315 - http://www.erie-insurance.com ERIE, May 8, 2008 Universal Underwriters Group Regional Office Two Penn Center West, Suite 200 Pittsburgh, PA 15276 Re: ERIE Claim ERIE Insured Date of Loss: Your Insured: Your Claim Dear Mr. Maug: #010170969262 Todd Durf 03/15/08 Antwerpen VW #42014724 On March 27, 2008, you provided us with documentation which appears to come from the Maryland Motor Vehicle Code. This is not the policy of Antwerpen VW. Please provide us with a copy of your insured' s policy as it pertains to the liability coverage. Again, we are requesting a copy of the policy of your insured. We look forward to receiving this at your earliest convenience. Sincerely, Melissa Cover Liability Adjuster III Harrisburg Branch Claims (717) 264-2356 1-866-331-3602 MC: klh cc: M. Cover cc: File - - - -- - r Y •- , c •©G Oµ? NpP ? 2?2pp? 1'Ip? ERIE INSURANCE GROUP P.O. BOX 2013 MECHANICSBURG, PA 17055 Your reference 010170969262 Our reference 420-14724- Date May 20, 2008 ZURICH Zurich Dear MS. COVER: Two Penn Center West Suite. 200 This will follow your letter of May 8, 2008 and your request for copy of the liability portion o Pittsburgh, PA our policy. Please note that our policy is not direct primary, but excess. I will not provide copy I S276-0113 of our policy at this time. Telephone: (412) 787-5008 www.zurichna.com/zdu Should you care to discuss this matter further, I can be reached during normal business ours at 412-494-3231. Toll Free: (800) 243-5414 Local Fax: (412) 787-5133 Claims Local Fax: (412) 494-3252 Yours sincerely Claims Toll Free Fax: (877) 867-1096 Zuric YOUR .NAM E@zurichna.com William Maug Sr. Claims Representative N VERIFIC TION I, on behalf of Erie Insurance Exchange verify that I am authorized to make the statements herein and that the statements made in the foregoing Complaint are true and. correct to, the best of my knowledge, information and belief. I understand that false statements made herein are subject to the penalties of 18 Pa.C.S.A. §4904 relating to unswom falsification to authorities. d/s Dated: 352x73 tvoppSeuA4 1W j 51040 C00/ZOOPI SKI Mi3 STCZ96LLTL Yva OT:rT 600Z/SO/ZO .. ,, • 1? T ((TT [. N Q f -? SHERIFF'S RETURN - OUT OF COUNTY CASE NO: 2009-00746 P COMMONWEALTH OF PENNSYLVANIA: COUNTY OF CUMBERLAND ERIE INSURANCE EXCHANGE VS UNIVERSAL UNDERWRITERS GROUP R. Thomas Kline , Sheriff or Deputy Sheriff who being duly sworn according to law, says, that he made a diligent search and and inquiry for the within named DEFENDANT T TAT TT 7"T1 fl TT TTATTIT.1T'3T.7T T]TLTT] C1 f TlnT TT) to wit: but was unable to locate Them in his bailiwick. He therefore deputized the sheriff of ALLEGHENY serve the within COMPLAINT & NOTICE County, Pennsylvania, to On March 9th , 2009 this office was in receipt of the attached return from ALLEGHENY Sheriff's Costs: So answ Docketing 18.00 Out of County 9.00 Surcharge 10.00 R. Thomas Kline Allegheny Co. 115.00 Sheriff of Cumberland County Postage .42 1 J G. Z G 03/10/2009 JOHNSON DUFFIE STEWART & WEIDN Sworn and subscribe to before me this day of A. D. >- C) s ?? ,fit } ? LL .aC? 1 !L' G - i Li- e C7% C= C= U SHERIFF'S RETURN - OUT OF COUNTY CASE NO: 2009-00746 P COMMONWEALTH OF PENNSYLVANIA: COUNTY OF CUMBERLAND ERIE INSURANCE EXCHANGE VS UNIVERSAL UNDERWRITERS GROUP R. Thomas Kline Sheriff or Deputy Sheriff who being duly sworn according to law, says, that he made a diligent search and and inquiry for the within named DEFENDANT to wit: ZURICH INSURANCE but was unable to locate Them in his bailiwick. He therefore deputized the sheriff of ALLEGHENY serve the within COMPLAINT & NOTICE County, Pennsylvania, to On March 9th , 2009 , this office was in receipt of the attached return from ALLEGHENY Sheriff's Costs: So answer Docketing 6.00 Out of County .00 ?l Surcharge 10.00 R" Thomas- Kli e .00 Sheriff of Cumberland County .00 16.00 03/10/2009 JOHNSON DUFFIE STEWART & WEIDN Sworn and subscribe to before me this day of A. D. r j N w L L C:= %. i ] CL CV d, -a? Cq In The Court of Common Pleas of Cumberland County, Pennsylvania Erie Insurance Exchange vs. Zurich Insurance 2 Penn Center West, Ste 200 Pittsburgh, PA 15276 Civil No. 2009-746 Now, February 17, 2009, I, SHERIFF OF CUMBERLAND COUNTY, PA, do hereby deputize the Sheriff o llegheny County to execute this Writ, this deputation being made at the request and risk of the Plaintiff. :ate, of Cumberland County, PA Affidavit of Service Now, 1,:?e' S•u a- 1074 , 20 of , at //Yo o'clock A. M, served the within upon_ at by handing to // c le -j a copy of the original and made known to Sworn and subscribed before me this day of ,20 So answers, "`;1' Sheriff of COSTS SERVICE MILEAGE AFFIDAVIT the contents thereof. >/ County, PA J; In The Court of Common Pleas of Cumberland County, Pennsylvania .+ Erie.jnsurance Exchange t Vs. a ;.6.01 Universal Underwriters Group 2 Penn Center West, Ste 200 ittsburgh, PA 15276 Civil No. 2009-746 Now, February 17, 2009, I, SHERIFF OF CUMBERLAND COUNTY, PA, do hereby deputize the Sheriff of llegheny County to execute this Writ, this deputation being made at the request and risk of the Plaintiff. Affidavit of Service and made known to copy of the original So answers, the contents thereof. 7 V$R Sheriff of ?¢//e.I-ytNrCounty, PA Sworn and subscribed before me this day of ,20. Now, ?fu w? a6 , 20 oS , at //'?-o o'clock A, M, served the within upon_ at by handing to Ile /e -a /?e2 //a v/ a COSTS SERVICE MILEAGE AFFIDAVIT JOHNSON, DUFFIE, STEWART & WEIDNER By: John R. Ninosky, Esquire I. D. No. 78000 jrn@jdsw.com By: Elizabeth D. Snover, Esquire I.D. No. 200997 eds@jdsw.com 301 Market Street P. O. Box 109 Lemoyne, PA 17043-0109 (717) 7651-4540 Attorney for Plaintiff ERIE INSURANCE EXCHANGE, Plaintiff V. UNIVERSAL UNDERWRITERS GROUP and ZURICH INSURANCE, Defendants TO THE PROTHONOTARY: IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA NO. 09-746 Civil Term DECLARATORY JUDGMENT PRAECIPE Kindly mark the docket in the above-captioned matter SETTLED and DISCONTINUED WITH PREJUDICE. Respectfully submitted, JOHNSON, DUFFIE, STEWART & WEIDNER By: Azzaaeg Jo 11. I osky, Esquire Attorney I.D. No. 78000 301 Market Street P. O. Box 109 Lemoyne, PA 17043-0109 a Telephone (717) 761-4540 Date: April =L, 2009 Attorneys for Plaintiff FILED V F, tlJ OF THE PROTHONOTARY 2009 APR 14 AM 10.4 0 Pc14`4 01ILVA,IN('A