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Home My WebLink About04-2849IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYLVANIA AAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAA*AAAAAAAAAAAAAAAAAAAAAA BARRY E. CALHOUN, and TAMMY CALOUN, Plaintiffs NO: ny_..r2(9CIVIL TERM V. CIVIL ACTION - EQUITY PRUDENTIAL GENERAL INSURANCE COMPANY t/b/a. PRUDENTIAL FINANCIAL, and LIBERTY MUTUAL GROUP, Defendants ....,..::..>t...?:A•...,A...:.:.,..,.:..?:..«..:.,.*...?*.«,.:...f..Ake..,?:.,.....*,.,..,:..,.A..?.:.,..,..rt?.,.... NOTICE TO DEFEND TO: DEFENDANTS Prudential General Insurance Co., Ud/b/a, Prudential Financial and Liberty Mutual Group: 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 of 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 OR CANNOT AFFORD ONE, GO TO OR TELEPHONE THE OFFICE SET FORTH BELOW TO FIND OUT WHERE YOU CAN GET LEGAL HELP. Cumberland County Bar Association 2 Liberty Avenue Carlisle, PA 17013 (717) 249-3166 IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYLVANIA •****ssssss*ss*sss**ssssssss***sss*ssss***s**ssssss*s**ss***sssss***ss*s BARRY E. CALHOUN, and TAMMY CALOUN, Plaintiffs V. NO: 04-2Lv4?CIVIL TERM CIVIL ACTION - EQUITY PRUDENTIAL GENERAL INSURANCE COMPANY t/b/a. PRUDENTIAL FINANCIAL, and LIBERTY MUTUAL GROUP, Defendants •*ss*s*ss*sssss*sss****sssssss*s*sss**ssssss*s**s***ss*?ssssss***s***s*s ACTION FOR DECLARATORY JUDGMENT 42 Pa.C.S.A. 7531, et seq. 1. The Plaintiffs, Barry E. Calhoun and Tammy Calhoun, husband and wife, reside at 2011 Back Rd., Halifax, Dauphin County, Pennsylvania, 17032 - 9691. 2. Defendant, Prudential General Insurance Company, also known as Prudential Financial, is a corporation and insurance company with a principal place of business at PO Box 977, Horsham, in Montgomery County, Pennsylvania, 19044. The aforesaid Defendant / Insurer maintains its home office at 23 Main St., Holmdel, New Jersey, 07733. 3. Defendant Liberty Mutual Group is a corporation and insurance company with a principal place of business at 5021 Louise Drive, Mechanicsburg, in Cumberland County, Pennsylvania, 17055. The aforesaid Defendant / Insurer maintains its home office at 175 Berkeley Street, Boston, Massachusetts, 02116. 4. Defendants regularly conduct business and insurance transactions within and pertaining to Cumberland County, Pennsylvania, including use and possession of an insurance office, and including the issuance of insurance contracts designed to insure persons and property within Cumberland County, Pennsylvania, thereby purposefully availing itself of the privilege of conducting activities within the forum of Cumberland County, Pennsylvania. 5. Pursuant to a "Pennsylvania Car Policy" insurance contract issued by the Defendants, policy number "288A121714", the Defendants agreed to provide motor vehicle coverage to the Plaintiffs for two (2) specified vehicles pursuant to the terms, provisions, and conditions set forth in said insurance policy and as outlined in the accompanying Declarations Page. (See, said Pennsylvania Car Policy and Declarations Page attached hereto as Exhibit A and incorporated herein by reference thereto). 6. At all times material hereto, the Plaintiffs paid the required insurance premiums and were the named insureds on the aforesaid car insurance policy issued by the Defendants for said motor vehicle insurance coverage; said insurance policy remained in effect relative to the time periods herein. 2 7. Among other items of motor vehicle insurance coverage required to be placed on Plaintiffs' vehicles as a matter of state law, said Plaintiffs paid separate and specific insurance premiums to obtain otherwise optional Uninsured Motorists and Underinsured Motorists coverage. (See, Declarations Page attached hereto). 8. On July 21, 2003, Plaintiff Barry E. Calhoun sustained severe injuries to his low back and spine as a result of a motor vehicle accident which occurred during the course of his employment as a Pennsylvania State Trooper. Specifically, said injuries were sustained when said Plaintiffs patrol car was struck on the passenger's side by a Sports Utility Vehicle as he was responding to an active domestic dispute call. 9. The Sports Utility Vehicle that struck Plaintiff Barry E. Calhoun on July 21, 2003 was insured by Nationwide Mutual Insurance Company pursuant to a car policy issued to an adult individual named Dawn Wilson-Oliver; said Nationwide insured's declaration sheet confirmed insurance coverage policy limits of $15,000.00 bodily injury liability limit. 10. The aforesaid tortfeasor has offered said $15,000.00 bodily injury liability limits. Said coverage is inadequate to answer for the damages sustained by the Plaintiffs who therefore demand that Defendants honor its contractual provisions regarding Underinsured Motorists coverage. 3 11. With respect to his receipt of indemnity benefits, medical benefits, and Heart and Lung payments made to him following the July 21, 2003 motor vehicle accident, the Plaintiff Barry E. Calhoun has received correspondence dated May 10, 2004 from his employer's workers' compensation carrier (CompServices, Inc.) which references a subrogation lien totaling $13,008.26. (See a copy of said May 10, 2004 letter attached hereto as Exhibit B and incorporated herein by reference thereto). 12. The Plaintiffs have demanded that the Defendants honor the contractual obligations vis-A-vis the aforesaid car insurance policy provisions concerning the Uninsured Motorist and Underinsured Motorist coverage(s). 13. Pursuant to correspondence dated February 25, 2004, the Defendants advised Plaintiffs' counsel that Plaintiffs were not afforded Underinsured Motorist coverage for the July 21, 2003 accident. Defendants' letter advised that said insurance coverage was excluded under its "Non-Owned Motor Vehicles" terms. (See a copy of said February 25, 2004 letter attached hereto as Exhibit C and incorporated herein by reference thereto). 14. Defendants' letter dated February 25, 2004 specified that Underinsured Motorist losses would not be paid for Non-Owned Motor Vehicles pursuant to Part 5, Section 3 which states: "We will not pay for bodily injury sustained while using or occupying a non-owned motor vehicle or trailer not insured under this Part, that is furnished or made available for regular use by you or a household resident..." (emphasis in original - see attached copy at page 2 of Exhibit C). 4 15. Defendants' letter dated February 25, 2004 also stated: "A favorable enforcement of the policy's exclusion for this circumstance is contained in recent PA Supreme Court decisions". Thereafter, citations were made by Defendants to Burstein v. Prudential Property and Casualty Insurance Company, 809 A.2d 204 (Pa. 2002) and Prudential Property and Casualty Insurance Company v. Gisler, 806 A.2d 854 (Pa. 2002). 16. In reply to Defendants' denial of coverage for Underinsured Motorist benefits, Plaintiffs counsel forwarded correspondence dated May 6, 2004 to Defendants' casualty analyst. Said letter from Plaintiffs' counsel explained, inter alia, that the Defendants' reliance upon said court decisions was erroneous inasmuch as Plaintiff Barry E. Calhoun's patrol car was not a regularly used, non-owned motor vehicle. Said letter further explained that said Plaintiff was not utilizing a "regularly used" police vehicle at the time of the accident, that the vehicle assigned to said Plaintiff on that date had never been previously used by him, and that said Plaintiff was never furnished with the same vehicle for his various assignments as a Pennsylvania State Trooper. (See a copy of said May 6, 2004 letter attached hereto as Exhibit D and incorporated herein by reference thereto). 17. Thereafter, Defendants' casualty analyst replied with a letter dated May 11, 2004 which reiterated the Defendants' position that the Plaintiffs Underinsured Motorist coverage did not apply to the accident on July 21, 2003. (See a copy of said May 11, 2004 letter attached hereto as Exhibit E and incorporated herein by reference thereto). 5 18. Despite multiple demands, Defendants refuse and continue to refuse to indemnify or otherwise reimburse the Plaintiffs for Underinsured Motorist coverage applicable to the motor vehicle accident on July 21, 2003. 19. In refusing to indemnify the Plaintiffs for said sum, Defendants have denied coverage on an erroneous theory and/or position that contradicts the pertinent statutory provisions and judicial interpretations thereof. 20. Other than said theory and said reasons set forth hereinabove, the Defendants have not set forth any other theory or any other reasons for its refusal to indemnify the Plaintiffs for said sum. 21. Counsel for the Plaintiffs and the Defendants have exchanged correspondence wherein each has set forth their respective clients' positions on whether said sum must be paid under the car insurance policy at issue. 22. The Plaintiffs suffered and continue to suffer economic harm, monetary loss, and are otherwise aggrieved as a result of the Defendants' failure to honor its contractual obligations under the car insurance policy. 6 23. The Defendants' denial and continuing denial of its responsibility to indemnify or otherwise reimburse the Plaintiffs for payment of said Underinsured Motorist benefits, despite the Plaintiffs' repeated demands for same, presents a real and actual controversy wherein litigation remains inevitable such that there exists a direct, substantial, and present interest in having the provisions of the Plaintiffs' car insurance policy construed whereby the instant parties' rights, status, and legal obligations may be declared. WHEREFORE, the Plaintiffs seek a declaratory judgment and final decree against the Defendants as follows: (a) This Honorable Court adjudicate and declare that the Plaintiffs' car insurance policy includes Underinsured Motorist coverage applicable to the motor vehicle accident on July 21, 2003. (b) This Honorable Court adjudicate and declare that Plaintiff Barry E. Calhoun was not utilizing a "regularly used" police vehicle at the time of the accident, that the vehicle assigned to said Plaintiff on that date had never been previously used by him, and that said Plaintiff was never furnished with the same vehicle for his various assignments as a Pennsylvania State Trooper. 7 (c) The Plaintiffs recover costs of litigation and attorneys fees attendant to this controversy and civil action. (d) For such other and further relief as This Honorable Court may deem just and equitable. // 5 - /vt// are Submitted, OFFICES By: Ron Turo, Esquire 28 South Pitt Street Carlisle, PA 17013 (717) 245-9688 Attorney for Plaintiffs Pa. Supreme Ct. ID No.: 34334 8 PENNSYLVANIA CAR POLICY PARTS 1, 3, 4, 5, 6, & 7 t' PENNSYLVANIA CAR POLICY Prudential Property and Casualty Insurance Company Prudential General Insurance Company Corporate Office 23 Main Street, Holmdel, NJ 07733 PAC 186 PA Ed. 11)00 X809. This is not a crrtpiete and valid contract without a oroperiv compietea Declarations. Prudential Property and Casualty Insurance Company Secretary Prudential General Insurance Company /-'0.,.4 I? c??9.>J.fl c .• Secretary President President - 2 - Pennsylvania Car Policy Parts 1, 3, 4, 5, 6, & 7 PAC 186 PA Ed. 11100 TABLE OF COi4TENiTS -ginning On 'age DEFINITIONS GENERAL PROVISIONS (These provisions are applicable to all parts of the policy) This Policy is A Contract Agreements Between You And Us _ Declarations Policy Area Restrictions of Coverage Policy Period Policies Effective Prior to 9/20/91 - Lifetime Renewal At Age 65 Concealment or Fraud Termination Premium Payment Policy Changes Endorsements Additional Operators Non-stacking of Coverage Limits Punitive Damage Assignment Bankruptcy Out-Of-State Coverage Your Duties After An Accident or. Loss Full Tort Alternative Limited Tort Alternative PART 1- LIABILITY - IF YOU INJURE OTHERS OR DAMAGE THEIR PROPERTY WITH A CAR Our Obligations To You Your Obligations To Us What Cars Are Covered Who Is Insured Losses We Will Not Pay For How We Will Settle A Claim 4 PART 2 - MEDICAL PAYMENTS DOES NOT APPLY IN PENNSYLVANIA 3euinnii ?age 5 PART 3 - COLLISION & COMPREHENSIVE - IF Y( CAR IS DAMAGED OR STOLEN Our Obligations To You 5 Your Obligations To Us 5 What Cars Are Coverec 5 Losses We Will Not Fa; For 5 How We Will Settle A Claim PART 4 - UNINSURED MOTORISTS - IF YOU ARI BY A MOTOR VEHICLE THAT IS UNINSURED Our Obligations To You Your Obligations To Us What Cars Are Coverea 4Vho is insured Losses We Will Not Pay For How We Will Settle A Claim 5 5 PART 5 - UNDERINSURED MOTORISTS - IF YOL HIT BY A MOTOR VEHICLE THAT IS UNDERINSI Our Obligations To You Your Obligations To Us What Cars Are Covered Who Is Insured Losses We Will Not Pay For How We Will Settle A Claim 5 6 6 6 6 6 6 6 6 6 7 7 7 7 7 PART 6 - FIRST PARTY BENEFITS Definitions Exclusions PART 7 - ADDED FIRST PARTY BENEFITS 8 8 9 9 9 10 - 3 - AM DEFINITIONS The words defined below are used throughout the policy. rhey are printed in bold type and the definitions shown next to them apply. Exceptions are note, under individual policy parts. BODILY INJURY Bodily injury means accidentally sustained physical injury and that person's resulting illness, disease or death. CAR A car is a private passenger automobile, station wagon, jeep-type, van with four (4) wheels which is designed for use mainly on public roads. A pickup truck with four (4) or six (6) wheels and a gross vehicle weight of less than 10,000 pounds which is designed for use mainly on public roads is also a car. The car must be required to be registered and licensed by the laws of your state. DIMINUTION OF VALUE --Diminution of value means the actual or perceived ross in market or resale value which results from a loss. HOUSEHOLD RESIDENT A "household resident" is someone who lives in your household. A household resident includes a resident relative. INSURED Insured means the person or persons as described in "Who is insured" ur:der each policy part. LIVES OR LIVING For the purpose of this policy, lives or living means that place where people have their true, fixed, permanent home and principal establishment, to which whenever they are absent, they have the intention of returning. MOTOR VEHICLE A motor vehicle is a self-propelled land vehicle which is required to be registered and licensed by the laws of your state for use on public roads. NAMED INSURED Throughout this policy, you and your refer to the named insured shown in your Declarations; and your spouse if a resident of the same household. If the spouse ceases to be a household resident during the policy period, the spouse will be considered you and your under this policy but only until the earlier of: 1. the end of 90 days following the spouse's change of residency; 2. the effective date of another policy listing the spouse as an insured; or 3. the end of the policy period. NON-OWNED CAR A non-owned car is a car which is not owned by, registered in the name of, or furnished or available for regular use by you or a household resident. NON-OWNED MOTOR VEHICLE A non-owned motor vehicle is a motor vehicle v, is not owned by, registered in the name of, or turnisheri or available for recuiar use t ,v you or z household resident. OCCUPY, OCCUPIED, OR OCCUPYING Occupy, occupied, or occupying means in, on, g into, out of or off. OWNERSHIP Ownership of a car means: 1, holding legal title to the car; or 2. having legal possession of the car that is st to a written security agreement with an origir term of six (6) months or more; or 3. having legal possession of the car that is le to that person under a written agreement for continuous period of six i6) months or more. PROPERTY DAMAGE Property damage means damage to physical prc including loss of its use. RESIDENT RELATIVE A resident relative is someone who lives in your household and is related to you by blood, marrii adoption or is a ward or foster child. SERIOUS INJURY Serious injury means a personal injury resulting death, serious impairment of bodily function or permanent serious disfigurement. TRAILER Trailer means a vehicle designed to be towed or public roads by a car. USE, USED OR USING Use, used or using means the car or motor vehi( being operated in a manner consistent with the purpose for which it was designed. WE, US, OR OUR We, us. or our means the company shown on yc Declarations. YOU OR YOUR Throughout this policy, you and your refer to thi named insured shown in your Declarations; and spouse if a resident of the same household. If the spouse ceases to be a household resident during the policy period, the spouse will be considered you and your under this policy but o until the earlier of: 1. the end of 90 days following the spouse's change of residency; 2. the effective date of another policy listing t spouse as an insured; or 3. the end of the policy period. - 4 - GENERAL PROVISIONS A. THE POUCY IS A CONTRACT This policy is a contract between you and us. When we refer to the policy, we mean this Booklet, your mosT rcr3nt Declara. _as ,nd ;awr indorsements. B. AGREEMENTS BETWEEN U AND US In exchange for premium paid, we agree to pay for losses as covered in this policy. By accepting this policy, you agree that the statements on your application are true and correct. This policy is issued relying on the accuracy of those statements. This policy contains all the agreements that exist between you and us. You will notify us within 30 days of any change of address. The policy will then be re-rated based on the rates and coverages in use for the new address. If the change in address is from one state to another and you qualify for coverage with us in the new state, then we will replace this policy with the policv we use in -the new state. -The statements an the application are your representations and are not warranties. C. DECLARATIONS Your Declarations is an important part of this policy. It lists the named insured and describes the cars this policy covers. Refer to your Declarations to see which Parts of the policy apply and what amounts of insurance you have for each of your cars. You only have the coverage for which a specific premium charge is shown for the coverage. You will receive your Declarations when the policy is first issued, each time a change is made and at each renewal. D. POUCY AREA United States, its territories or possessions, or Canada. This policy covers accidents which occur in the United States of America, its territories or possessions, or Canada, or while a car is being transported between these places. E. RESTRICTIONS OF COVERAGE 1. We do not provide any coverage if your car is not principally garaged and used in the United States. 2. Mexico - WARNING: READ THIS CAREFULLY! a) Car accidents in Mexico are subject to the laws of Mexico only - NOT the laws of the United States of America. Unlike the United States, the Republic of Mexico may consider a car accident a criminal offense as well as a civil matter. b) THIS COVERAGE MAY NOT BE RECOGNIZED BY MEXICAN AUTHORITIES AND THE COMPANY MAY NOT BE ALLOWED TO IMPLEMENT THIS COVERAGE AT ALL IN MEXICO. YOU SHOULD CONSIDER PURCHASING CAR COVERAGE FROM A UCENSED MEXICAN INSURANCE COMPANY BEFORE DRIVING INTO MEXICO. c) The coverages for your insured car provided by this policy are extended to accidents occurring in Mexico within 25 miles of the United States border. This extension only applies for infrequent trips into N that do not exceed ten days at any one time, d) We will pay losses under Part 3 Collision And Cumprehenswe in the United States, its territoric possessions, or Canada, out not in Mexico. If yoi insured car is dernagea in Mexico, you must rett to the United States to be repaired. If your insure must be repaired in Mexico in order to be driven will not pay more than the amount it would cost have repairs made at the nearest point in the Un States. The costs for towing, transportation, stor and salvage operations of the insured car while Mexico are not covered under the policy. F. POLICY PERIOD This policy covers accidents which occur during policy period. This period is shown on your Declarations. G. POUCIES EFFECTIVE PRIOR TO 9120/91 - UFE RENEWAL AT AGE 65 For a policy that has an original effective date or 9/20/91, if at any renewal you no longer qualify f continued coverage as permitted by Pennsylvan we will offer you similar coverage in one of our affiliated Companies if you have had car insuran with us continuously for at least 5 years on the f anniversary date of this policy (or any renewal o replacement of it) following your 65th birthday. However, this agreement does not apply if you f pay a premium when required, if you are not the principal operator of a car described on the Declarations page, or if your driver's license or t. anyone who lives in your household (or who rec uses a car insured under this policy) has been suspended or revoked during the current policy or within the 12 months prior to the beginning c current period. This agreement does not apply if the corrected v of your better eye or that of any persons living it household (or any person who regularly uses a i insured under this policy) is less than 20/70. Nor it apply if the visual form field of you or these pe is less than 110 degrees. This agreement does not apply if you or any per living in your household (or any person who reg uses a car insured under this policy) have reache age of 72 but do not give us, on request, a media report from a licensed physician stating that you vision and/or that of these other drivers over age meets the requirements given above and that, it doctor's opinion, you and/or they are physically mentally competent to drive safely. We will not request these medical reports more than once e, three years. However, after you or other drivers i the age of 80, we can request these reports ever All requested medical reports will be at the com expense. This agreement applies only to cars as describes this policy. This agreement stops as of the effect date of any other car policy which applies to a ci described on the Declarations page, but only for coverages provided by the other car policy. -5- *80 H. CONCEALMENT OR FRAUD This policy is void and there is no coverage for you or any insured if it has been in effect for less than 60 days and you or any other insured under this policy has, whether before or after a loss: a! mtenticnahy concealed or mismiaresented any material fact or circumstance; or b) made false statements or engaged in fraudulent conduct relating to a loss. this insurance or the application. 1. TERMINATION 1. Cancellation By You - You may cancel this policy at any time by returning it to us or by notifying us in writing of the future date on which you want it canceled. In addition, with our permission, you may cancel this policy by notifying us over the telephone of the future date on which you want it canceled. A premium refund will be sent to you as soon as practical after we receive your notice of cancellation. 2. Cancellation By Company - If we want to cancel this policy and it has been in effect for less than 60 days, we will send a written notice at least 15 days before it is canceled. If you fail to pay a premium by the date due, we will send a written notice at least 15 days before it is canceled. After this policy has been in effect for 60 days, we will only cancel it if: a) you do not pay a premium or premium installment by the date due. We will send you a written notice at least 15 days before the policy is canceled; b) the driver's license of the named insured is under suspension or revocation during the policy period. We will send you written notice at least 15 days before the policy is canceled; c) the policy was obtained through fraud or material misrepresentation. We will send you written notice at least 60 days before the policy is canceled. We will mail the cancellation notice to the named insured at the last address shown on the policy. We and you agree that a proof of mailing of this notice is sufficient proof that you were properly notified. We will keep only the premium for the time the policy was in effect and we will refund any balance. Any refund due will be sent to you as soon as practical. Coverage ends on the date shown on the written notice, not on the date you get the premium refund. 3. Nonrenewal By Company - If we decide not to renew this policy, we will send written notice to the named insured. We will send the notice at least 60 days before the policy is nonrenewed to the last address shown on the policy. We and you agree that the mailing of this notice is proof that you were properly notified. 4. Nonrenewal By You - When we offer to renew or continue this policy and you do not accept it, coverage will stop at the end of the current policy period. Your failure to pay the renewal premium by the date due indicates your rejection of our renewal offer. 5. Automatic Termination - If you obtain other nsumnce on your cc•: ered car, any similar insu provided by this poucv will terminate as to that the effective date of t^e other insurance. 6. Other Termination Provisions - We will comp t' a laws in your state: ai requiring a specific notice perioa; b) requiring a special type of mailing; or c) imposing restrictions on the reasons for cancellation or nonrenewai. J. PREMIUM PAYMENT Your premium payment must be received by us office by the due date. If we do not receive the premium by the date shown on any premium n sent to you the policy will terminate. If the prem paid by check or other instrument, and it is not honored, it will be considered as a failure to pa} premium. Changes made to your oolicy during the policy may result in premium adjustment. K. POLICY CHANGES No changes can be made to any part of this poli except by endorsement issuea by us. The terms of this policy are automatically chant conform to the laws of the state in which you lie We will automatically give you the benefits of ai extension or broadening of this oolicy. This onh applies if the change does not require additiona premium. L ENDORSEP1iENTS Endorsements are a part of this policy. They adc delete, or change parts of the policy. They may I necessary to conform to the laws of your state e new programs we have implemented. Only thm endorsements whose numbers appear on your Declarations are a part of your oolicy. M. ADDITIONAL OPERATORS If during the policy term a person not listed on t policy begins to drive a car or stops driving a ca shown on your Declarations, you are required tc immediately inform us of this change. The appropriate premium adjustment will be made f the date the operator status changes during the period. N. NON-STACKING OF COVERAGE LIMITS The limits shown under Your Coverage and Lim section of Your Declarations is the maximum we pay for an accident involving you or any other p insured under this policy. This limit of coverage applies regardless of the number of policies, ins insured cars, claims made, or cars involved in th accident or loss. Coverages on other cars insure us cannot be added to or stacked on the coverac the particular car involved. 0. PUNITIVE DAMAGE We will not pay for damages assessed as puniti% exemplary or vindictive against an insured. P. ASSIGNMENT This policy cannot be assigned to anyone withoi written approval. But, if the named insured dies, - 6 - policy will proviae the other persons insurea by this policy and the legal representative of the estate (but only while acting as such) with the same coverages until the end of the policy period. Until a legal representative is appointed, anyone who has proper custody of the car is covered whiie using it, subject to the terms of this policy, as if he or she was P. resident relative. Q. BANKRUPTCY If an insured beco- bankrupt or insolvent during the policy term, it a?.s not affect the Agreements Between You And Us. R. OUT-OF-STATE COVERAGE The limits and coverages of this policy will change to meet the minimum requirements of the laws while you are in: 1. another state; 2. a territory or possession of the United States; or 3. Canada. This applies if the laws require non-residents to carry higher limits of coverage or coverages other - than provided by this policy. S. YOUR DUTIES AFTER AN ACCIDENT OR LOSS 1. General Duties - If any persons insured under this policy are involved in a car accident or if the car is stolen or damaged, they or someone acting for them must promptly contact us. We will want to know how the accident or loss happened, names and addresses of people involved, witnesses, and any injury or damage. Persons making a claim under this policy must: a) inform us of the details of the accident or loss in writing, if requested. b) cooperate with us in investigating, settling, or defending any loss or legal action. Cooperation includes attending hearings and trials, helping in suing others who are responsible for the accident, giving evidence, and helping us get witnesses to attend a trial. c) immediately send us any notices or legal papers received by them or their legal representatives in connection with the accident or loss. d) be examined by doctors we select, for their injuries as often as we reasonably.require. We will pay the cost of such examinations. The examination must take place within 30 days of our request. e) give us written permission to obtain their medical and other relevant records, within 30 days of our request. f) give us written proof of their loss in a form containing any relevant information we request within 30 days of our request. g) give us a statement under oath as often as we reasonably require and within 30 days of our request. h) report a hit and run accident or loss to the police within 24 hours or as soon as reasonably possible. 0 allow us to inspect the car if we request it. 2. Additional Duties If Your Car Is Damaged Or Stolen - If your car is damaged or stolen and it is covered under Part 3, you must protect the car from further damage. We will pay any reasonable costs you in doing this. You may be required to snow us the damaged property before its repair or disposal ar give us a statement under oath. If the car is stolen, you must report it to the polic( us within 24 hours or as soot -s reasonably poss after discovery of the theft. 3. Settlement/Recovery a) We will not pay for losses which are settled, without our written consent. b) If anyone voluntarily makes any payments, assumes any obligations or incurs any expens except for first aid to others at the scene of the accident, we will not be responsible for reimbursement. c) When we pay any person for a ioss under tf policy, we are entitled to the amount we paid the proceeds of any settlement or judgment th person recovers from the responsible party. W allowed by law, we are also entitled to related collection expenses for any settlement or judgment. At our request, persons receiving payment from us must take any necessary acti recover the payments we have made. We will select the attorney and pay all related costs an fees. d) When we pay for a loss under this policy, p rights of recovery from anyone else becomes up to the amount we have paid. Anyone insur under this policy must: 1. not interfere with our rights to recover; a 2. do whatever is nec.=F",-y to help us reco the amount we paid. T. FULL TORT ALTERNATIVE Each person who elects the full tort alternative ar each person who is bound by such election of thf named insured remains eligible to seek compens for non-economic loss claimed and economic los sustained in a motor vehicle accident as the consequence of the fault of another person. U. LIMITED TORT ALTERNATIVE Each person who elects the limited tort alternativ each person who is bound by such election of th( named insured is eligible to seek compensation f economic loss sustained in a motor vehicle accid the accident is determined to be the fault of anotl person. If the injury sustained is serious, as defined unde Definitions section of this policy, each person boi by the limited tort alternative is also eligible to se compensation for non-economic loss from the at party. If the injury sustained does not meet the definitio serious injury, each person bound by the limited alternative is prohibited from seeking compensat for non-economic loss unless: 1. the person bound by the limited tort electioi sustains damages in a motor vehicle accident result of the fault of another person unless om the following conditions apply: a) the person at-fault is convicted, or accep Accelerated Rehabilitative Disposition (ARE -7- *805 drivina under the influence of alcohol or a controijed substance in that accident; or, b) the person at-fauit is operating a motor vehicle registerea in another state; or, c) the person at-fault intends to injure himself or another be.soes. clues not include intentional acts, failure to act or to act with tht realization that it creates a grave risk of causing injury if for the purpose of everting bodily injury to himself or another person; or, d) the person at-fault has not maintained financial responsibility as required by law; 2. the person wno is bourc by the limited tort alternative wui remain eiicible to seek compensation for non•eccnomic loss for ciain against a person in the business of designing, manufacturing, repairing. servicing or otherw maintaining motor vehicles when the claim ar cui 6f a detect in such motor vchiclewhjch is causea by or not currecte:: by an act or omiss the course of such business, other than a defe a motor vehicle which is operated by such business; or, 3. the injury is sustainer %vitile an occupant of motor vehicle other than a Private passenger motor vehicle. PART 1 LIABILITY - IF YOU INJURE OTHERS OR DAMAGE THEIR PROPERTY WITH A CAR A. OUR OBLIGATIONS TO YOU (PART 1) 1. Liability (Bodily Injury Coverage/Property Damage Coverage) If you have these coverages (see your Declarations), we will pay up to our Limit Of Liability as described in How We Will Settle A Claim IPart 1) for bodily injury to others and property damage that an insured is legally obligated to pay. The bodily injury and property damage must: a) result from an accident involving a car insured under this Part; and b) be covered under this Part. 2. Investigation, Settlement And Legal Defense If other persons claim that you or anyone else insured under this Part injured them or damaged their property in a covered accident, we will provide a defense at our expense by counsel of our choice. We may conduct any investigation and settle any claim or suit that we decide is appropriate. Our obligation to defend a claim or suit ends when we have paid the applicable coverage limit for damages resulting from the accident. 3. Additional Payments In addition to any amount in the Limit Of Liability section, we will pay the costs listed below: a) First Aid We will pay anyone insured under this Part for the cost of immediate and necessary first aid to others at the scene of the accident involving a car insured under this Part. b) Bail Bonds If you or anyone else insured under this Part are arrested as a result of a covered accident which results in the violation of a traffic law and must put up bail, we will pay up to $250 for the cost of a bail bond. The insured must first get the bond. c) Release Of Attachment Bonds If as a result of an accident an insured's property is attached by court order, we will reimburse the premium of a bond obtained to release that attachment. The amount of the bond we pay premium for cannot be more our limit of liability. d) Court Imposed Interest If we are obligated to cay the amount of a judgment that is within our limit of liability will pay, in addition, :cterest required by th court on that judgment. Our duty to pay in ends when we pay, offer to pay or deposit the court the amount owed under this Part maximum amount is subject to the Limit 0 Liability - Bodily Injury: Each Person and Li Of Liability - Bodily Injury: Each Accident u How We Will Settle A Claim (Part 1). el Court Costs If we provide a defense, we will pay an insured's court costs. f) Expenses We will pay reasonable costs connected wi the defense of you or any other insured inc at our request, such as travel expenses to t court. We will pay up to a maximum of $5( day for actual net wages lost if the insured to take time off from, work at our request. g) Appeal Bonds We will pay the premiums for appeal bond we decide to appeal the case to a higher cc We will pay premiums on a bond to releas property attached in a covered lawsuit, bui for that portion of the bond up to your coy limits. B. YOUR OBLIGATIONS TO US (PART 1) The following provisions apply in addition to am duties listed in the General Provisions section. 1. Legal Action Against Us We may not be sued unless there is full comp with all the terms of this policy. We may not k sued for payment under this Part until the obligation of an insured person to pay is final determined either by final judgment against t person or by written agreement of the insurer person, the claimant, and us. No one will hav right to make us a party to a lawsuit to detern the liability of an insured person. - 8 - C. WHAT CARS ARE COVERED (PART 11 The following are subject to the Each Person, Each Accident Limit Of Liability under How We Will Settle A Claim (Part 1). 1- Cara Described On Your Declarations This Part covers cars for which a pre.mur,: charge for these coverages is shown on your Declarations. 2. Replacement Cars If you acquire ownership of a car to replace a car covered under this Part, the newly acquired car has the same coverage as the [car being removed from the policy. You must notify us of the replacement within 30 days after you acquire ownership of the car, for coverage to continue after 30 days. 3. Additional Cars If you acquire ownership of another car in addition to those described as covered under this Part, this Part covers the new car for the first 30 days. The new car has the same coverage as any of your other cars insured with us. All your other cars m ust be insured with us for this Part to cover the additional car. You must let us know within 30 days after you acquire ownership of the new car that you want it insured under this Part, for coverage to continue after 30 days. 4. Substitute Cars If a car covered under this Part breaks down, is being serviced or repaired, or is stolen or destroyed, we will cover a car you temporarily borrow or rent (with the owner's permission) while your car is being repaired or replaced. This car cannot be owned by you or a household resident. The substitute car has the same coverage as the car that is out of service. We will only pay that part of the loss that is excess over the amounts payable under any other insurance which covers the loss. 5. Other Non-Owned Cars In addition to substitute cars, we will cover a non- owned car. The owner must give permission to use it. The non-owned car must be used in the way intended by the owner. This car must not be furnished or available for the regular use of you or a household resident. We will cover a rented car for a total of 30 days. The non-owned car has the same coverage as any one of your cars insured with us. We will only pay that part of the loss that is excess over the amounts payable under any other insurance which covers the loss. 6. Trailers, Camper Units, Caps Or Similar Types Of Cover We will cover trailers designed to be pulled by a car while they are attached to a car covered under this policy. We will cover all camper units, caps or similar types of cover designed to be mounted on a car or trailer. When a trailer, camper unit, cap or similar type of cover is attached to a car it is considered to be one vehicle. There is no coverage for a trailer, camper unit, cap or similar type of cover while used with a car not insured under this Part. Also, there is no coverage for damage to a non-owned trailer, camper unit, cap or similar type -of cover which is attached to a covered car. D. WHO IS INSURED (PART 1) 1. In Your Car (Includes A Substitute Car) You and any persons you give permission tc your car are insured as long as they use it in way you intended when you gave permissio 2. In A Nor-Owned Car You and a resident relative are insured while a non-owned car. The owner must give pern to use it. It must be used in the way intende( the owner. E. LOSSES WE WILL NOT PAY FOR (PART 1) 1. Owned Motor Vehicles We will not pay for bodily injury or property damage caused by anyone using a motor ve or trailer not insured under this Part, owned or a household resident. 2. Non-Owned Motor Vehicles We will not pay for bodily injury or property damage, caused by anyone using a non-own motor vehicle or trailer not insured under thi that is furnished or made available for the rei use by you or a household resident. 3. Motor Vehicles For Hire We will not pay for bodily injury or property damage that occurs while a motor vehicle is used to carry people or property for a fee. Th does not include using your covered car in a pool. 4. Racing We will not pay for bodily injury or property damage caused by anyone using a motor vet the motor vehicle was being used in any orgi racing, speed, demolition or stunt contest or related activity. 5. Business And Residence We will not pay for bodily injury or property damage arising out of the use of a motor veh. trailer, camper unit, cap or similar type of cov being used or located for use as a place of business or as a place of residence. 6. Your Employees We will not pay for bodily injury to your empl or an employee of a household resident while the course of employment. But bodily injury t domestic employee is covered under this Part such employee is not covered and does not K be covered under any workers compensation disability law or similar law. 7. Fellow Employees We will not pay for bodily injury caused by an insured (other than you) to a fellow employee while the insured is using a motor vehicle in h her employer's business. 8. Auto Business We will not pay for bodily injury or property damage caused by anyone using a non-owne( motor vehicle in any kind of auto business. Examples of auto business are: selling, repairi servicing, storing or parking motor vehicles. -9- *Bog 9. War We wiil not pay for bodily injury or property damage caused by any act of war, warlike act, insurrection, rebellion or revolution. Also, we wiil not pay for a loss caused by discharge of any nuclear weapon, even r accidental. 10. Nuclear Liability We will not pay for bodily injury or property damage caused by anyone who: a) is an insured under a nuclear energy liability policy; or b) would be an insured under a nuclear energy liability policy but for the exhaustion of its limit of liability. 11. Criminal Acts We will not pay for bodily injury or property damage caused by anyone while committing or attempting to commit a crime or avoiding arrest. 12. Intentional Injury Or Damage We will not pay for bodily injury or property -damage which results from an act: a) that is intended by an insured to cause harm: or b) that an insured could reasonably expect would cause harm. This exclusion applies whether or not an insured intended or expected the results of their act, so long as the resulting injury or damage was a natural consequence of the act. Mental disease, defect or other disorder of the insured, or the insured being under the influence of drugs or alcohol shall not bar application of this exclusion. The intention or reasonable expectation to cause bodily injury or property damage shall be determined as though any such condition of the insured did not exist. 13. Your Property We will not pay under this Part for any damage to property owned or being transported by an insured person. We will not pay under this Part for damage to property under the care of or rented to you or a household resident. But we will pay for damage to a residence or garage rented to you or a resident relative. F. HOW WE WILL SETTLE A CLAIM (PART 1) 1. Limit Of Liability - Bodily Injury: Each Person The limit stated under Liability - Bodily Injury - Each Person on your Declarations is the maximum we will pay for ail damages arising out of bodily injury to one person as a result of any one accident. Included in Liaoility - Bodily Injury- Ea( Person, but not as a separate claim or claims, are all damages sustained by other persons, for example, loss of services, loss of support, loss o' consortium ,,rongf, . each, grief, sorrow and emotional distress.. 2. Limit Of Liability - Bodily Injury: Each Accidem The limit stated under Liability - Bodily Injury - Each Accident on your Declarations is the maximum we will pav for all damages arising oL of bodily injury as a result of any one accident, subject to the Liability - Bodily Injury - Each Pers limit. 3. Limit Of Liability - Damage To Property The limit stated under Liability - Property Damag Each Accident on your Declarations is the maximum we will pay for all property damaged any one accident. 4. Other Insurance - Your Car If there is other insurance which covers a loss under this Part, we will pay our share of the loss Our share is the proportion our limit bears to the total of all applicable limits. But wewill not pay I a loss involving anyone using a newly acquired (additional or replacement), car if you have anoth insurance policy that covers it. 5. Other Insurance - Non-Owned Car (Includes A Substitute Car) In the case of a non-owned car covered under th Part, we will pay only thos^ damages that are excess over amounts payable under any other insurance up to our Each Person, Each Accident Limit Of Liability. 6. No Duplication Of Benefits Any damages payable under Part 1 - Liability wil be reduced by any other coverage of this policy applicable to the damages so that no person ma, collect more than once for the same elements of the damages. No one will be entitled to receive duplicate payments for the same elements of los under this policy Part. 7. Financial Responsibility Laws When this policy is certified as future proof of financial responsibility, this policy shall comply with the minimum requirements of your state's laws. PART 3 COLLISION AND COMPREHENSIVE - IF YOUR CAR IS DAMAGED OR STOLEN A. OUR OBLIGATIONS TO YOU (PART 3) 1. Collision Coverage if you have this coverage (see your Declarations), we will pay for accidental damage to your insured car or trailer, including its equipment, if it collides with another object or if it rolls over. 2. Comprehensive Coverage If you have this coverage (see your Declarations), we will pay for any direct and accidental loss of or damage to your insured car or trailer, including its equipment, caused by anything other than collis except as shown under Losses We Will Not Pay 1 (Part 3). Examples of comprehensive coverage losses are: glass breakage, theft, fire, flood, hail, earthquake, vandalism and collision with a bird r animal. If the car is stolen, we will reimburse you foryour transportation costs until the car is back in use or ui we offer to pay for the loss. Transportation costs wi be covered beginning 48 hours after the theft has been reported to the police and to us. We - 10 - will pay up to S30 a cav for these transportation costs up to a mtal of $900. 3. Towing And Labor Coverage If you have this coverage (see your Declarations), we will nay for towing charges and the cost of Labor done 'ale scene of a breakdown,. The lim.- for this coverage is shown on your Declarations. No deductible applies for this coverage. 4. Rental Car Coverage If you have this coverage (see your Declarations), we will reimburse you for the cost of renting a car if a car you own is out of use for more than 24 hours because of a Collision or Comprehensive loss. But this coverage does not apply when a car is stolen and Comprehensive Coverage applies. We will only pay for actual rental costs for the time it would normally take to repair or replace the damaged car up to $30 a day and $900 per incident. You must promptly notify us of the amount you spent for rental of the car in the manner and time we reasonably request. If you do not rent a car during the time it would normally take to repair or replace the damaged car, we will pay you $10 a day up to a total of $300. B. YOUR OBLIGATIONS TO US (PART 3) The following provisions apply in addition to any duties listed in the General Provisions section. 1. Legal Action Against Us No one insured under this Part may take any legal action against us until 30 :lays after they have given us notice of loss and only if all obligations under this policy have been fulfilled. C. WHAT CARS ARE COVERED (PART 3) The following are subject to the Limit Of Liability under How We Will Settle A Claim (Part 3). 1. Cars Described On Your Declarations This Part covers cars for which a premium charge for these ceverages is shown on your Declarations. 2. Replacement Cars If you acquire ownership of a car to replace a car covered under this Part, the newly acquired car has the same conerage as the old car being removed from the policy. You must notify us of the replacementvoithin 30 days afteryou acquire ownership of the car, for coverage to continue after 30 days. 3. Additional Cars If you acquire ownership of another car in addition to those desrerioed as covered under this Part, this Part covers the new car for the first 30 days. The new car has the broadest coverage as any of your other cars insured with us. All your other cars must be insured with us for this Part to cover the additional ear. You must let us know within 30 days after you acquire ownership of the new car that you want it insured under this Part for coverage to continue after 30 days 4. Substitute Cars If a car covered under this Part breaks down, i, being serviced or repaired. or is stolen or destroyed, we will cover a car you temporarily borrow or rent (with the owner's permission) 1 your rar is being repaired or replaced. This cal cannot be owneJ by ycu or a household resid The substitute car has the same coverage as ti that is out of service. We wiii only pay that par the loss that is excess over the amount payabl under any other insurance which covers the Ic 5. Other Non-Owned Cars In addition to substitute cars, we will cover a r owned car. The owner must give permission t it. The non-owned car must be used in the we intended by the owner. This car must not be furnished or available for the regular use of yc a household resident. We wiiI cover a rented c for a total of 30 days. The non-owned car has same coverage as any one of your cars insurer with us. We will only pay that part of the loss ) is excess over the amount payable under any insurance which covers the loss. D. LOSSES WE WILL NOT PAY FOR (PART 3) 1. Owned Motor Vehicles We will not pay for damage to or loss of any n vehicle or trailer not insured under this Part, owned by you or a household resident. 2. Non-Owned Motor Vehicles We will not pay for damage to or loss of any n vehicle or trailer not insured under this Part th furnished or made available for the regula usr you or household residents. 3. Motor Vehicles For Hire We will not pay for damage or loss that occurs while a motor vehicle is being used to carry pe or property for a fee. This does not include usi your covered car in a car pool. 4. Camper Units, Caps Or Similar Types Of Cor We will not pay for damage to or loss of a cam unit, cap or similar type of cover, including its equipment and accessories, unless the owners or use of the camper unit, cap or similar type c cover has been reported to us and the requirec premium has been paid. A camper unit, cap or similar type of cover is designed to be mounte a car or trailer. 5. Trailers We will not pay for damage to or loss of a trail unless the ownership or use of the trailer has t reported to us and the required premium has t paid. 6. Customized Vehicles We will not pay for damage to or loss of any customized features unless the value of the customization has been reported to us and it is included in the premium which has been paid this coverage. Customized features include any furnishings, carpeting, custom installed height extending roofs, custom paint, custom painted windows, custom murals, graphics or other custom applied designs or equipment. This - 11 - *Bog includes items installea at the time of the vehicle's manufacture or after. 7. Racing We will not pay for damage to or loss of a motor vehicle if the motor vehicle was being used in any organized racing, speed, demolit;on u: s+:c,it contest or related activity. 8. Business And Residence We will not pay for damage to or loss of a motor vehicle, trailer, camper unit, cap or similar type of cover, being used or located for use as a place of business or as a place of residence. 9. Auto Business We will not pay for damage to a car or trailer you do not own if you are using it in any kind of auto business. Examples of auto business are: selling, repairing, servicing, storing or parking cars or other vehicles. 10. Diminution Of Value We will not pay for any loss to your car or any non- owned motor vehicle due to diminution of value as defined in this policy. 11. War We will not pay for damage caused by any act of war, warlike act, insurrection, rebellion or revolution. Also, we will not pay for a loss caused by discharge of any nuclear weapon, even if accidental. 12. Nuclear Contamination We will not pay for damage from or as a consequence of the following, whether controlled or uncontrolled or however caused: a) nuclear reaction; b) nuclear radiation; or c) radioactive contamination. 13. Criminal Acts We will not pay for damage caused by anyone while committing or attempting to commit a crime or avoiding arrest. 14. Intentional Damage We will not pay for damage which results from an act: a) that is intended by an insured to cause harm; or b) that an insured could reasonably expect would cause harm. This exclusion applies whether or not an insured intended or expected the results of their act, so long as the resulting damage was a natural consequence of the act. Mental disease, defect or other disorder of the insured, or the insured's being under the influence of drugs or alcohol shall not bar application of this exclusion. The intention or reasonable expectation to cause property damage shall be determined as though any such condition of the insured did not exist. 15. Sound (Receiving, Recording, Reproducing Transmitting) Equipment We will not pay for loss to sound equipment w is not permanently installed. Equipment must t installed in the dash or console opening specifi by the manufacturer of the rar, trailer, camper i cap or similar tyoe,: cover for suchequiomen: be considered permanently installed. Loss to compact discs, tapes, records, or other devices for use with equipment designed for th reproduction of sound will not oe covered. 16. Wear And Tear We will not pay for damage which is due and confined to wear and tear, freezing, or mechani or electrical breakdown or failure. This does no apply to damage if your car is stolen. 17. Tires We will not pay for loss to tires unless the loss caused by fire, vandalism, malicious mischief, theft, or unless the loss is caused by an accider covered under this Part. 18. Additional Living Facility Equipment We will not pay for damage to or loss of radio c TV antennas, awnings, cabanas or any equipme designed to create extra living area while the ce trailer, camper unit, cap or similar type of coves set up for living. 19. Personal Property We will not pay for damage to or loss of persor property in a car except as provided in the Clotl and Luggage provision under How We Will Sete Claim (Part 3). E. HOW WE WILL SETTLE A CLAIM (PART 3) 1. Limit Of Liability Our Limit Of Liability will be the least of the: a) actual cash value (replacement cost less depreciation) of the damaged or stolen prop at the time of the loss; b) amount necessary to repair or replace the property with parts made by the manufactur of the vehicle or by other non-original equipment manufacturer or other sources unless prohibited by state laws and regulatic c) amount stated on your Declarations. A theft loss to permanently installed sound (receiving, recording, reproducing or transmitting) equipment is covered up to $1, Loss to a non-owned trailer when pulled by car covered under this Part is covered up to $500. We will only pay the part of a loss caul by damage to or theft of a non-owned trailer that is excess over the amount payable uncle any other insurance which covers the loss. Our payment will be reduced by any applical deductible shown on your Declarations. But, Comprehensive deductible will not apply to breakage of front windshield glass when the letter "G" is printed on your Declarations afte the deductible amount for that car. - 12 - If two or more vehicles owned by you and insured by us collide, the deductible applies separately to each vehicle. If we can pay a loss under either comprehensive or collision, we will pay under the coverage where you coiiect the moz?t. 2. Replacement Coverage On Newly Acquired Cars We will pay the replacement cost of your covered car if it is stolen or deemed a total loss within 180 days of acquiring ownership of a car not previously owned and the mileage is under 7,500 original miles. 3. Clothing And Luggage Clothing and Luggage that is owned by you or a household resident are covered for up to $250 while in a car insured for Comprehensive or Collision coverage under this policy. This coverage applies to the following losses: a) a Comprehensive Coverage loss caused by fire, lightning, flood, falling objects, explosion, earthquake or the total theft of your covered car: b) a Collision Coverage loss caused by collision with another vehicle or object. No deductible applies to clothing and luggage coverage under this Part. The $250 limit applies regardless of how many insured persons incur a clothing or luggage loss and this coverage applies as excess over any other collectible coverage for the same loss. 4. Locksmith Service We will pay up to $50 for locksmith services if you lock your keys inside your car. No deductible applies to this coverage. 5. Loss Of Use If your car cannot be used because of a covered collision or comprehensive loss, we will pay up to a maximum of $200 for the following reasonable additional expenses incurred as a result of the covered loss when the loss causes a delay en- route: a) commercial transportation expenses, excluding car rentals, to continue to your destination; b) meals, lodging and phone expenses between the time of the loss and arriving at your destination. This coverage only applies if you are more than 50 miles from your closest residence. No deductible applies to Loss of Use coverage. 6. Trailer, Camper Unit, Cap Or Similar Type Of Cover Deductibles A car with a trailer attached to it is considered to be two separate vehicles and separate deductibles apply. A car with a camper unit, cap or similar type of cover mounted on it is considered to be one car and only the deductible on the car applies. If the camper unit, cap or similar type of cover is unmounted, separate deductibles apply to the car and the camper unit, cap or similar type of cover. 7. Claim Settlement We may pay for the loss, c: repair or replace th damaged or stolen properrv with parts made b) manufacturer of the vehicle or by other non- original equipment manufacturer or other sour( unloss prohibited by state laws and regulations dt our option, we pay fn, -.ne cost to repair or replace the property or can, our liability does n include any diminution of value, however measured, as a result of the loss, and/or replacement. If the repair or replacement result: a betterment of the property or part, you may b responsible for the amount of the betterment subject to applicable state laws and regulations Betterment means an imorovement that adds vi to the car or part of the car. If the stolen property is recovered before we he paid you for it or replaces it, we can return it to you, along with payment for any damage result from the theft. If we pay for any property or pay its replacement, we may retain the property. Bu you cannot require us to assume ownership of damaged property. We cav settle the claim eith with you or with the owner of the property. If you should decide to use a repair facility provided by us, we will provide you with a guarantee for the workmanship on the performE repairs for as long as you own your car. 8. Appraisal If there is disagreement over the amount of the loss, either of us may demand an appraisal with 60 days aft-r you give us written proof of your I In that case, each of us will select a qualified appraiser. The two appraisers will select an umr Each appraiser will then state both the actual ca value and the amount of the loss. If they disagre they will submit their differences to the umpire. decision in writing of anv two of these three persons will determine the amount of the loss. Each of us will pay our own appraiser. We will share equally the other costs of the appraisal an of the umpire. 9. Other Insurance - Your Car Or Trailer If there is other insurance which covers damage or theft of a car or trailer covered under this Pan we will pay our share of the loss. Our share is th proportion our limit bears to the total of all applicable limits. 10. Other Insurance - Non-Owned Car Or Trailer (Includes A Substitute Car) In the case of a non-owned car or trailer coverec under this Part, we will pay only that part of a to caused by damage to or theft of the car or trailer that is excess over amounts payable under any other insurance up to our Limit Of Liability uncle How We Will Settle A Claim (Part 3). 11. Loss Payee And Additional Interest Clause Payment for loss of or damage to a car covered under this Part will be made to the person or organization shown in your Declarations as the loss payee or the additional interest. This payme will be made, up to the amount of the loss, to th extent that the loss payee or the additional interE has a financial interest in the car. - 13 - *809-( This insurance, covering the interest o' any loss payee or the additionai interest will not oe invalidated because of the insured's conversion, emoezzlement or secretion of the car. Put, we reserve the right to cancel or non-renew the policy as aermitted by its terms. The termination notice will end this agreement with all loss pavees or all additinnal interests. Notice of termination will be sent to the loss payee or the additional interest at the time it is sent to the named insured. If the insured fails to provide us with a croof of loss within a reasonable time period, the loss payee or additional interest shall do so within 60 davs of notice by us. Further, the loss pavee or additional interest shall be suoject to all Drovisi, of the policy relating to appraisals, time of payment, payment of premium and of bringing suit. When we pay the loss payee or the additional interest, we will, tc the exten-, oY payment. ca subrogated to the loss payee's or 'lie addmonai interest's rights of recovery. When we make am payment under this policy, we can make separa payments to each party at interest, provided we protect the ownershiD interest of all parties. PART 4 UNINSURED MOTORISTS - IF YOU ARE HIT BY A MOTOR VEHICLE THAT IS UNINSURED A. OUR OBLIGATIONS TO YOU (PART 4) 1. Uninsured Motorists Bodily Injury Coverage If you have these coverages (see your Deciarationsl, we will pay up to our Limit Of Liability for bodily injury as described in How We Will Settle A Claim (Part 4) when an insured or an insured's car is struck by an uninsured motor vehicle or trader. Our payment is basea on the amount that an insured is legally entitlea to recover for bodily injury but could not collect from the owner or operator of the uninsurea motor vehicle because: a) The Owner Or Operator Is Not Insured The owner or operator responsible for the a:..-:dent has no liability insurance or liability bond or has coverage in an amount :hat is less than required by your state's financial responsibility law. b) The Coverage Of The Owner Or Operator Is Denied The owner or operator responsible for the accident has liability coverage at the time of the accident, but the company writing the insurance or bond denies coverage or is unable to make payments because of insolvency or bankruptcy. c) The Accident Is A Hit And Run The owner and the operator of the motor vehicle which caused bodily injury by hitting a person insured under this Part (or by hitting a car that person was occupying at the time of the accident) cannot be identified. But actual physical contact is not required if the details of the accident given by the injured insured can be confirmed. We will pay under this coverage only after the limits of liability under any bodily injury liability insurance or any bodily injury liability bonds applicable to the underinsured motor vehicle have been exhausted by payment of judgments or settlements. B. YOUR OBLIGATIONS TO US (PART 4) The following provisions apply in addition to any duties listed in the General Provisions section. Legal Action Against Us No one insured under this Part may take any le( action against us unless all obligations undertf policy have been fulfilled. C. WHAT CARS ARE COVERED (PART 4) The following are sub iect to the Each Person. Each Accident Limit Of Liability under How We Will Sett Claim (Part 4). 1. Cars Described On Your Declarations This Part covers cars for which a premium char for this coverage is shown on your Declaration. 2. Replacement Cars If you acquire ownership of a car to replace a ca covered under this Part, the newly a_couired car the same coverage as the car being removed fn the policy. You must notify us of the replaceme within 30 days after you acquire ownership of t car, for coverage to continue after 30 days. 3. Additional Cars If you acquire ownership of another car in addi to those described as covered under this Fart, t Part covers the new car for the first 30 days. Th new car has the same coverage as any of your other cars insured with us. All your other cars r be insured with us for this Part to cover the additional car. You must let us know within 30 days afteryou acquire ownership of the new car that you wan insured under this Part, for coverage to continu after 30 days. 4. Substitute Cars if a car covered under this Part breaks down, is being serviced or repaired, or is stolen or destroyed, we will cover a car you temporarily borrow or rent (with the owner's permission) w your car is being repaired or replaced. This car cannot be owned by you or a household reside The substitute car has the same coverage as th that is out of service. We will only pay that part the loss that is excess over the amount payable under any other insurance which covers the Ios 5. Other Non-Owned Cars In addition to substitute cars, we will cover a n owned car. The owner must give permission to it. The non-owned car must be used in the way - 14 - intended by the owner. This car must not be furnished or available for the regular use of you or a household resident. We will cover a rented car for a total of 30 days. The non-owned car has the same coverage as any one of your cars insured with us. We will only pav that nart of the loss that is exces_ over the a,i uCCt pay 1_!a ncder anv other insurance which covers the Ip-s D. WHO IS INSURED (PART 4) 1. In Your Car (Includes A Substitute Car) You and any persons you give permission to use this car are insured as long as they use it in the way you intended when you gave permission. 2. In A Non-Owned Car You and a resident relative are insured while using a non-owned car. The owner must give permission to use it. It must be used in the way intended by the owner. 3. Hit By A Motor Vehicle If you are hit by an uninsured motor vehicle while - a pedestrian, you are insured. If a resident relative - is hit by an uninsured motor vehicle while a pedestrian, that resident relative is insured. E. LOSSES WE WILL NOT PAY FOR (PART 4) 1. Losses Denied, Excluded Or Exhausted Under Other Parts We will not pay for bodily injury if anyone claims a car covered under this policy is uninsured because coverage is denied, excluded or exhausted under another part of this policy. 2. Owned Motor Vehicles We will not pay for bodily injury caused by anyone using a motor vehicle or trailer not insured under this Part, owned by you or a household resident. 3. Non-Owned Motor Vehicles We will not pay for bodily injury caused by anyone using a non-owned motor vehicle or trailer not insured under this Part, that is furnished or made available for the regular use by you or a household resident. 4. Motor Vehicles For Hire We will not pay for bodily injury that occurs while a motor vehicle is being used to carry people or property for a fee. This does not include using your covered car in a car pool. But you and a resident relative are covered if injured in an accident while a passenger in a non-owned car being used to carry people or property for a fee. 5. Land Vehicles We will not pay for bodily injury if hit by the following land vehicles: a) motor vehicles owned or operated by self- insurers under any financial responsibility law or similar law; b) motor vehicles owned by a government agency in the United States of America or in Canada; c) land vehicles operated on crawler-treads or rails; d) motor vehicles or equipment designed fo use mainly off public: roads (unless the attic happens on a public road); e) motorcycles or other motorized vehicles t are not requirea to be licensed and registere (.unless the accident happens on a public ro; f) motor vehicles or equipment while used a residence or premises. 6. Racing We will not pay for bodily injury caused by any using a motor vehicle covered under this Part i motor vehicle was being used in any organizes racing, speed, demolition or stunt contest or related activity. 7. Business And Residence We will not pay for bodily injury arising out of use of a motor vehicle, trailer, camper unit, caF similar type of cover, being used or located for as a place of business or as a place of resident 8. Workers Compensation Or Similar Laws We will not pay for bodily injury to anyone wh payment under this Part duplicates benefits recovered under any worker's compensation la disability law, or any other similar law. Also, th coverage shall not apply directly or indirectly ti benefit any insurer or self-insurer under any workers compensation law, disability law, or ai other similar law. 9. Auto Business We will not pay for bodily injury caused by an} using a non-owned motor vehicle in any kind c auto business. Examples of auto business are: selling, repairing, servicing, storing or parking motor vehicles. 10. War We will not pay for bodily injury caused by an) of war, warlike act, insurrection, rebellion or revolution. Also, we will not pay for a loss cau, by discharge of any nuclear weapon, even if accidental. 11. Nuclear Contamination We will not pay for bodily injury from or as a consequence of the following, whether control or uncontrolled or however caused: a) nuclear reaction; b) nuclear radiation; or c) radioactive contamination. 12. Criminal Acts We will not pay for bodily injury caused by and while committing or attempting to commit a ci or avoiding arrest. 13. Intentional Injury Or Damage We will not pay for bodily injury which results an act: a) that is intended by an insured to cause h or b) that an insured could reasonably expect would cause harm. This exclusion applies whether or not an insured intended or expected the results of - 15 - *Bog act so long as the resulting injury or damage was a natural consequence of the act. Mental disease, defect or other disorder of the insured, or the insureds being under the influence of drugs or alcohol shall not bar application of this cxcinsion. The intention or reasonable expectation to cause i,adily injury shall be determined as though any such condition of the insured did not exist. F. HOW WE WILL SETTLE A CLAIM (PART 4) 1. Stacking Of Uninsured Motorists Coverage Limits If you have selected this opiion (your Declarations will indicate stacking applies) then stacking of coverage under this Part applies to you and a resident relative insured under this Part. This means that you or a resident relative can add or stack the Uninsured Motorists Coverage limits of other cars insured for this coverage by us upon the Uninsured Motorists Coverage limits of the car involved in the accident or loss. Non-Stacking Of Coverage Limits in the General Provisions section does not apply. 2. Non-Stacking Of Uninsured Motorists Coverage Limits if you have selected this option (your Declarations will indicate non-stacking applies) then the Non- Stacking of Coverage Limits provision under this policy's General Provisions is replaced by the following. In addition, the Limit of Liability under Part 4, How We Will Settle A Claim (Part 4) applies to you and any other person insured under this Part. This means that if you or any other person insured under this policy is in an accident: a) In a car that is insured by this policy - We will not pay more than the limit of liability for the particular car involved in the accident. b) In a car that is not owned by you or a resident relative or while a pedestrian - You are entitled to the highest limit of Uninsured Motorists Coverage available on any one car as to which you are a named insured or an insured resident relative. If you choose the coverage available to you as an insured under this policy Part, then we will pay those damages that are excess over amounts payable on the car you occupy at the time of the accident. If you choose the coverage available to you as an insured under another policy, then we will not pay for damages under this policy Part. This limit of coverage applies regardless of the number of policies, insureds, insured cars, claims made, or cars involved in the accident or loss. Coverages on other cars insured by us cannot be added to or stacked on the coverage of the particular car involved. 3. Limit Of Liability-Bodily Injury: Each Person The limit stated under Uninsured Motorists - Bodily Injury - Each Person on your Declarations is the maximum we will pay for all damages arising out of bodily injury to one. person as a result of any one accident. Included in Uninsured Motorists - Bodily Injury - Each Person, but not as a separate claim or claims. are aii damages sustained by oth persons, for example, loss of services, loss of support, loss of consortium, wrongful death, gne sorrow and emotional distress. 4. Limit Of Liability-Bodily Injury: Each Accident -he Irr„t stated under Uninsured Motorists- Bod !niury - each Accident en your Declarations is the maximum we will pay for ail damages, subject tc the Limit Of Liability - Uninsured Motorists - Bodi Injury - Each Person limit. Any Medical Payments determined to be payable under this Part are subject to a maximum payme for the service provided as established by the Pennsylvania Motor Vehicle Financial Responsibility Law. If a prevailing medical fee, charge or payment he not been calculated under the Medicare Program for a treatment, accommodation, product or service, the amount of our payment will not exce 80% of the medical provider's usual and custom< charge. Payment for acute care in an accredited acute care facility or burn foundation will not exceed the usual and customary charge. If the peer review program, established by the Pennsylvania Motor Vehicle Financial Responsibility Law is utilized, an insured covere under this Part may request reconsideration of ti peer review initial determination of the disputed medical necessity of treatment or services. A request for reconsideration must be made withir 30 days of the initial determination. 5. Arbitration If we and an insured do not agree: a) whether that person is legally entitled to recover damages resulting from the negligen of the owner or operator of an uninsured ma vehicle; or b) as to the amount of compensatory damag Either party may make a written demand for arbitration. In this event, each party will sale( an arbitrator from the county where the insui lives. The two arbitrators will select a third arbitrator from the same county. If they cann agree within 30 days, either parry may reque. selection from a judge of a common pleas cc having jurisdiction where the insured claimir coverage lives; or by a judge in the Federal District Court whose jurisdiction includes the county where the insured claiming coverage lives. Each party will: a) pay the expenses it incurs; and b) bear the expenses of the third party equally. Arbitration will be conducted in the county where the insured lives. Local rules of procedure and evidence will apply to the eni Arbitration process. We will not arbitrate questions of coverage law as whether a person making a claim is covered under the policy, or is excluded unc the policy. All disputes affecting the scope o coverage, the amount of coverage, a person - 16 - right or eligibility to make a claim, or the insured's selection of coverage, will be determined by the court in the county where the insured lives at the time the demand for arbitration is made; or a Federal District Court whose iurisdiction includes the county where the insured lives. Following the entry of an arbitration award, either party may file a petition to vacate or modify the award in the court in the county where the arbitration was conducted. The court may only modify or correct the award where: a) the arbitrators addressed and resolved issues not within the scope of their authority under this policy; b) the arbitrators were biased in the conduct of the hearing and the entry of any award; c) either party was denied appropriate due process rights to a full and fair hearing; d) the arbitrators committed an error of law such that had it been a verdict of a jury the _ court would have entered a different or other judgment notwithstanding the verdict. Arbitration will be conducted in accordance with the Provisions of the Pennsylvania Uniform Arbitration Act and the Pennsylvania Arbitration Act of 1927. 6. Judgment We will not be bound by any judgment or agreement against any person or organization which was obtained without our written consent. Payments Reduced Payments for damages for bodily injury will be reduced by any amounts paid or payable: a) by persons or organizations who may be legally responsible; or b) under any other part of this policy; or c) by other sources such as workers compensation, disability or similar laws. We will pay the difference between the sum of these amounts and the amount of the loss up to our Limit Of Liability subject to the Each Person, Each Accident limits. 2. Other insurance - Your Car If there is other insurance which covers a loss under this Part, we will pay our share of the los Our share is the proportion our limit bears to th total of all applicable limits. But we will not pay a loss involving anyore using a newly acquired (additional or repiace!neni! car it you have anot insurance policv that covers it. 9. Other Insurance - Non-Owned Car (Includes i Substitute Car) In the case of a non-owned car covered under t Part, we will pay those damages that are excess over amounts payable under any other insurani up to our Limit Of Liability subject to the Each Person, Each Accident limits. Priorities of Policies. We will pay under this par accordance with the following order of priontie We will not pay if there is another insurer at a higher level of priority. The priority order is: First: The policy covering a motor vehicle occupied by the inlurea oerson at the time o the accident. Second: The pohcv covering a motor vehicle involved in the acciaent with respect to whit the injured person is an insured. If two or more policies have equal priority: 1. The insurer against which the claim is firs made under the above priorities shall proces and pay the claim as if wholly responsible. 1 insurer is thereafter entitled to recover contribution pro-rata f•cm ary other insurer the benefits paid and the cost of processing claim. 2. The maximum recovery under all policies not exceed the amount payable under the pi with the highest dollar limits of benefits. For the purposes of determining priorities, an unoccupied parked motor vehicle is not a motc vehicle involved in an accident unless it was parked in a manner as to create an unreasonab risk of injury. PART 5 UNDERINSURED MOTORISTS - IF YOU ARE HIT BY A MOTOR VEHICLE THAT IS UNDERINSURED A. OUR OBLIGATIONS TO YOU (PART 5) 1. Underinsured Motorists Bodily Injury Coverage If you have this coverage (see your Declarations), we will pay up to our Limit Of Liability for bodily injury as described in How We Will Settle A Claim (Part 5) when an insured is struck by an underinsured motor vehicle. Our payment is based on the amount that an insured is legally entitled to recover for bodily injury because: a) The Owner Or Driver Is Underinsured The owner or driver responsible for the accident has bodily injury liability insurance or a bodily injury liability bond with limits that are less than the full amount the insured is legally entitled to recover as damages. We will pay under this coverage only after tl limits of liability under any bodily injury liat insurance or any bodily injury liability bond; applicable to the underinsured motor vehicl have been exhausted by payment of judgme or settlements. B. YOUR OBLIGATIONS TO US (PART 5) The following provisions apply in addition to any duties listed in the General Provisions section. 1. Legal Action Against Us No one insured under this Part may take any le action against us unless all obligations under tl policy have been fulfilled. - 17 - *809. C. WHAT CARS ARE COVERED (PART 5) The following are subiect to the Each Person. Each Accident Limit Of Liability under How We Will Settle A Claim Wart 5). 1. Cars Described On Your Declarations T tiis Part covers cars for .which a premium charge for this coverage is snow^. on your Oeaarations 2. Replacement Cars If you acquire ownership of a car to replace a car covered under this Part, the newly acquired car has the same coverage as the car being removed from the policy. You must notify us of the replacement within 30 days after you acquire ownership of the car, for coverage to continue after 30 days. 3. Additional Cars If you acquire ownership of another car in addition to those described as covered under this Part, this Part covers the new car for the first 30 days. The new car has the same coverage as any of your other cars insured with us. All your other cars must be insured with us for this Part to cover the - additional car. You must let us know within 30 days after you acquire ownership of the new car that you want it insured under this Part, for coverage to continue after 30 days. 4. Substitute Cars If a car covered under this Part breaks down, is being serviced or repaired, or is stolen or destroyed, we will cover a car you temporarily borrow or rent (with the owner's permission) while your car is being repaired or replaced. This car cannot be owned by you. The substitute car has the same coverage as the car that is out of service. We will only pay that part of the loss that is excess over the amount payable under any other insurance which covers the loss. 5. Other Non-Owned Cars fn addition to substitute cars, we will cover a non- owned car. The owner must give permission to use it. The non-owned car must be used in the way intended by the owner. This car must not be furnished or available for the regular use of you or a household resident. We will cover a rented car for a total of 30 days. The non-owned car has the same coverage as any one of your cars insured with us. We will only pay that part of the loss that is excess over the amount payable under any other insurance which covers the loss. D. WHO IS INSURED (PART 5) 1. In Your Car (Includes A Substitute Car) You and any persons you give permission to use this car are insured as long as they use it in the way you intended when you gave permission. 2. In A Non-Owned Car You and a resident relative are insured while using a non-owned car. The owner must give permission to use it. It must be used in the way intended by the owner. 3. Hit By A Motor Vehicle If you are hit by an while a pedestrian. relative is hit by an while a pedestrian, underinsures motor vehicle you are insurea. If a resident underinsured motor vehicle that resident relative is insur E. LOSSES WE WILL N'OT PAY FOR (PART 5) 1. Losses Denied. Excluded Or Exhausted Unde( Other Parts We will not pay for bodily injury to anyone who claims a motor vehicle insured under this policy underinsured because coverage is denied, excluded or exhausted under another Part of thi policy. 2. Owned Motor Vehicles We will not pay for bodily injury caused by any( using a motor vehicle or trailer not insured and this Part, owned by you or a household resident if the liability coverage of that vehicle is used to pay any portion of an insured's bodily injury iiability claim. 3. Non-Owned Motor Vehicles We will not pay for bodily injury caused by any( using a non-owned motor vehicle or trailer not insured under this Part that is furnished or mad available for the regular use by you or a househ resident. 4. Motor Vehicles For Hire We will not pay for bodily injury to anyone usin motor vehicle which is being used to carry peol or property for a fee. This does not include usin your covered car in a car pool. But you or a resident relative are covered if injured in an accident while a passenger in a non-owned car being used to carry people or property for a fee 5. Land Vehiaes We will not pay for bodily injury to anyone hit t the following land vehicles: a) motor vehicles owned or operated by self insurers under any financial responsibility Is or similar law; b) motor vehicles owned by a government agency in the United States of America or in Canada; c) land vehicles operated on crawler-treads ( rails; d) motor vehicles or equipment designed fo use mainly off public roads (unless the accic happens on a public road); e) motorcycles or other motorized vehicles t are not required to be licensed and registere (unless the accident happens on a public rot or f) motor vehicles or equipment while locate use as a residence or premises. 6. Racing We will not pay for bodily injury to anyone whi using a motor vehicle covered under this Part i motor vehicle was being used in any organizec racing, speed, demolition or stunt contest or related activity. - 18 - 7. Business And Residence We will not pay for bodily injury to anyone arising out of the use of a motor vehicle, trailer, camper unit, cap or similar type of cover, being usea or located for use as a place of business or as a place of residence. 8. Workers Compensation Or Similar Laws We will not pay for bodily injury to anyone wnen payment under this Part duplicates benefits recovered under any worker's compensation iaw, disability law, or any other similar law. Also, this coverage shall not apply directly or indirectly to benefit any insurer or self-insurer under any workers compensation law, disability law or any other similar law. 9. Auto Business We will not pay for bodily injury caused by anyone using a non-owned motor vehicle in any kind of auto business. Examples of auto business are: selling, repairing, servicing, storing or parking motor vehicles. 10. War We will not pay for bodily injury caused by any act of war, warlike act, insurrection, rebellion or revolution. Also, we will not pay for a loss caused by discharge of any nuclear weapon, even if accidental. 11. Nuclear Contamination We will not pay for bodily injury from or as a consequence of the following, whether controlled or uncontrolled or however caused: a) nuclear reaction; b) nuclear radiation; or c) radioactive contamination. 12. Criminal Acts We will not pay for bodily injury to anyone while committing or attempting to commit a crime or avoiding arrest. 13. Intentional Injury We will not pay for bodily Injury which results from an act: a) that is intended by an insured to cause harm; or b) that an insured could reasonably expect would cause harm. This exclusion applies whether or not an insured intended or expected the results of their act, so long as the resulting injury or damage was a natural consequence of the act. Mental disease, defect or other disorder of the insured, or the insureds being under the influence of drugs or alcohol shall not bar application of this exclusion. The intention or reasonable expectation to cause bodily injury or property damage shall be determined as though any such condition of the insured did not exist. F. HOW WE WILL SETTLE A CLAIM (PART 5) 1. Stacking Of Underinsured Motorists Coverac Limits If you have selected this option (your Declaratic will indicate stacking applies) then stacking of coverage under this Part applies to you and a resident relative insured under this Part. This means that you or a resident relative can add c stack the Underinsured Motorists Coverage lim of other cars insured for this coverage by us uF the Underinsured Motorists Coverage limits of car involved in the accident or loss. Non-Stacking of Coverage Limits in the Genera Provisions does not apply. 2. Non-Stacking Of Underinsured Motorists Coverage Limits If you have selected this option (your Declaratil will indicate non-stacking applies) then the Noi Stacking of Coverage Limits provision under tl' policy's General Provisions is replaced by the following. In addition, the Limit of Liability unc How We Will Settle A Claim (Part 5), applies to and any other person insured under this Part. means that if you or any other person insured under this policy is in an accident: a) In a car that is insured by this policy - We not pay more than the limit of liability for it particular car involved in the accident. b) In a car that is not owned by you or a resident relative or while a pedestrian - you entitled to the highest limit of Underinsurec Motorists Coverage available on any one ca to which you are a named insured or an ins resident relative. If you choose the coverag available to you as an insured under this pc Part, then we will pay those damages that a excess over amounts payable on the car yo occupy at the time of the accident. If you ch the coverage available to you as an insured under another policy, then we will not pay damages under this policy Part. This limit of coverage applies regardless of number of policies, insureds, insured cars, claims made, or cars involved in the accide loss. Coverages on other cars insured by ut cannot be added to or stacked on the cover of the particular car involved. 3. Limit Of Liability - Bodily Injury: Each Perso The limit stated under Underinsured Motorist: Bodily Injury - Each Person on your Declaratio the maximum we will pay for all damages, les amounts recovered for all damages, arising oc bodily injury to one person as a result of any c accident. Included in Underinsured Motorists Bodily Injury - Each person, but not as a separ claim or claims, are all damages sustained by persons, for example, loss of services, loss of support, loss of consortium, wrongful death; c sorrow and emotional distress. 4. Limit Of Liability-Bodily Injury: Each Accide The limit stated under Underinsured Motorist: Bodily Injury - Each Accident on your Declarat is the maximum we will pay for all damages, subject to the Limit Of Liability - Underinsurec - 19 - *80! Motorists - Bodiiv Injury - Each Person limit, arising out of bodily injury as a result of any one accident. Any Medical Payments determined to be payable under this Part are subject to a maximum payment for the service provided as established by the Pennsylvania Motor Vehicle Financial Responsibility Law. If a prevailing medical fee, charge or payment has not been calculated under the Medicare Program for a treatment, accommodation, product or service, the amount of our payment will not exceed 80% of the medical provider's usual and customary charge. Payment for acute care in an accredited acute care facility or burn foundation will not exceed the usual and customary charge. If the peer review program, established by the Pennsylvania Motor Vehicle Financial Responsibility Law is utilized, an insured covered under this Part may request reconsideration of the peer review initial determination of the disputed medical necessity of treatment or services. A _ request for reconsideration must be made within = 30 days of the initial determination. 5. Arbitration If we and an insured do not agree: a) whether that person is legally entitled to recover damages resulting from the negligence of the owner or operator of an underinsured motor vahicle; or b) as to the amount of compensatory damages. Either party may make a written demand for arbitration. In this event, each party will select an arbitrator from the county where the insured lives. The two arbitrators will select a third arbitrator from the same county. If they cannot agree within 30 days, either party may request selection from a judge of a common pleas court having jurisdiction where the insured claiming coverage lives; or by a judge in the Federal District Court whose jurisdiction includes the county where the insured claiming coverage lives. Each party will: a) pay the expenses it incurs; and b) bear the expenses of the third party equally. Arbitration will be conducted in the county where the insured lives. Local rules of procedure and evidence will apply to the entire Arbitration process. We will not arbitrate questions of coverage or law as whether a person. making a claim is covered under the policy, or is excluded under the policy. All disputes affecting the scope of coverage, the amount of coverage, a person's right or eligibility to make a claim, or the insureds selection of coverage, will be determined by the court in the county where the insured fives at the time the demand for arbitration is made; or a Federal District Court whose jurisdiction includes the county where the ins aced fives. ollowing the entry of an arbitration award, either party may file a petition to vacate or modify the award in the court in the county where the arbitration was conducted. The cc may only modify or correct the award where a) the arbitrators addressed and resolved iss not within the Scott e of ti,eir authority under policy; b) the arbitrators were biased in the conduct the hearing and the entry of any award; c) either party was denied appropriate due process rights to a full and fair hearing; d) the arbitrators committed an error of law such that had it been a verdict of a jury the c would have entered a different or other judgment notwithstanding the verdict. Arbitration will be conducted in accordance the Provisions of the Pennsylvania Uniform Arbitration Act and the Pennsylvania Arbitre Act of 1927. 6. Judgment We will not be bound by any judgment or agreement against any person or organization which was obtained without our written conse Payments Reduced Payments for damages for bodily injury will be reduced by any amounts paid or payable: a) by persons or organizations who may be legally responsible; or b) under any other part of this policy under other part of this policy except Medical Payments "Part 2"; or c) by other sources such as workers compensation, disability or similar laws. We will pay the difference between the sum of these amounts and the amount of the loss up our Limit Of Liability subject to the Each Persc Each Accident limit. 8. Other Insurance - Your Car If there is other insurance which covers a loss under this Part, we will pay our share of the Ic Our share is the proportion our limit bears to total of all applicable limits. But we will not pt a loss involving anyone using a newly acquire (additional or replacement) car if you have ant insurance policy that covers it. 9. Other Insurance - Non-Owned Car (Include: Substitute Carl In the case of a non-owned car covered under Part, we will pay those damages that are exce over amounts payable under any other insura up to our Each Person, Each Accident Limit O Liability under How We Will Settle A Claim. Priorities of Policies. We will pay under this p. accordance with the following order of priorit We will not pay if there is another insurer at a higher level of priority. The priority order is: First: The policy covering a motor vehicle occupied by the injured person at the time the accident. - 20 - Secona: The policy covering a motor vehicle not involved in the occident with respect to which the injured person is an insured. If two or more policies have equal priority: a) The insurer against which the claim is first made under the ;?oove priorities snail process and pay the eiairn as if wholly responsible. The insurer is thereafter entitled to recover contribution pro-rata from any other insurer for PART 6 - FIRST PARTY BENEFITS If you have paid for this coverage (see your Declarations), we will pay first party benefits for medical expenses and if purchased for: a. income loss, and b. funeral expenses for bodily injury to an eligible person resulting from the maintenance or use of a motor vehicle as a vehicle. -7::Also, the Company will pay death benefits arising from bodily injury to the named insured or resident relative resulting from the maintenance or use of a motor vehicle as a vehicle. Only the benefits shown as applicable by dollar amount on your Declarations apply. In accordance with the Pennsylvania Motor Vehicle Financial Responsibility Law, eligible Medical Expenses which result from a car accident covered under this Part will he paid up to our Limit Of Liability for this coverage subject to a maximum of the current available and prevailing charge for the service provided as established by the Pennsylvania Motor Vehicle Financial Responsibility Law. If a prevailing Medical fee, charge or payment has not been calculated under the Medicare Program for a treatment, accommodation, product or service, the amount of our payment will not exceed 80% of the Medical provider's usual and customary charges for the service in the provider's geographical region. Payment for acute care if any accredited acute care facility or bum foundation will not exceed the usual and customary charge. If the peer review program, established by the Pennsylvania Motor Vehicle Financial Responsibility Law, is utilized, an insured covered under this Part may request reconsideration of the peer review initial determination of the disputed medical necessity of treatment orservices, within 30 days of such determination, DEFINITIONS The following definitions apply only under Parts 6 and 7 of this Policy. "Death benefits" means a benefit paid because of the death of the named insured or resident relative as a result of injury sustained in a motor vehicle accident if death occurs within 24 months from the date of accident. The death benefits shall be paid to the administrator or executor of the insured's estate. "Eligible person" means: (a) the named insured or any resident relative; and -ne benefits paid and the cost of processing t :aim. n; The maximum recovery under all policies -,ot exceed the amount payable under the po with the highest dollar limits of benefits. %r the purposes of determining priorities ar unoccupied parked motor vehicle is not a motor vehicle invoived in an accident unless it was parked in a manner as to create an unreasonabei risk of injury. (b) any other person who sustains bodily injury ;1) while occupying the insured motor vehicl or (2) while a non-occupant of a motor vehicle, injured as a result of an accident in Pennsylvania involving the insured motor vehicle. An unoccupied insured motor vehicl not a motor vehicle involved in an accident unless it was parked in a manner as to cause unreasonable risk of injury. "Funeral expenses" means reasonable exoenses incurred directly related to funeral, burial, crematic or other disposition of the remains of the decease( eligible person. The expenses must be incurred as result of the death of the eligible person and withi months from the date of accident. "Income loss" means eighty (80) percent of gross income actually lost by an eligible person. Income loss includes reasonable expenses actually ineisrre for hiring: (a) a substitute to perform the work a self- employed eligible person would have perform( except for the bodily injury; or (b) special help, thereby enabling a person to v thereby reducing loss of gross income. "Income loss" does not include: (a) loss of expected income for any period following the death of an eligible person; or (b) expenses incurred for services performe following the death of an eligible person; or (c) any loss of income during the first five working days the eligible person did not we after the accident because of the bodily inju "insured motor vehicle" means a motor vehicle: (a) to which the bodily injury liability insurance the policy applies; and (b) by which the named insured maintains first party benefits coverage as required under Pennsylvania Motor Vehicle Financial Responsibility Law. "Medical expenses" means reasonable and neces. charges for: (a) medical treatment, including but not limite (1) medical, hospital, surgical, nursing and dental services; (2) medications, medical supplies and pros devices; and (3) ambulance. - 21 - *80! b) medical and rehabilitative services. including but not limited to: (1) medical care; (2) licensed physical therapy, vocational rehabilitation and occupational therapy; 3) osteopathic, chiropractic, psy-i ie'ric: ,nd psychological services; and (4) optometric services, speech pathology and audiology. (c) non-medical remedial care and treatment rendered in accordance with a recognized religious or licensed method of healing. All medical treatment and medical and rehabilitative services 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. Payment of medical expenses after 18 months from the date of accident causing bodily injury shall be made only if it was ascertainable with reasonable medical probability within 18 months from the date of accident that further expenses would be incurred as a result of the bodily injury. EXCLUSIONS This coverage does not apply to bodily injury to: Persons Who Don't Have Their Own Cars Insured. (a) any person who is the owner of a currently registered motor vehicle for which financial responsibility has not been provided, even if that person is occupying or struck by a motor vehicle by which financial responsibility is provided; Repair, Servicing, Etc. (b) any person resulting from the conduct of the business of repairing, servicing, or otherwise maintaining motor vehicles if the bodily injury arises out of that business unless the conduct occurs off the business premises; Loading and Unloading. (c) sustained by any person as a direct result of loading or unloading a motor vehicle; Motorcycles. (d) any person while occupying a motorcycle, motor-driven cycle, motorized pedacycle or like type vehicle required to be registered under Title 75, or a recreational vehicle not intended for highway use; Non-Authorized Users. (e) any person other than the named insured or any relative, while maintaining or using a motor vehicle without reasonable belief that he is legally entitled to do so; Non-Occupants in Other States. (f) any person not occupying a motor vehicle other than the named insured or any relative, if the accident occurs outside the Commonwealth of Pennsylvania; Parked Camper Vehicles. Etc. (g) any person while maintaining or using a mot vehicle while locatea for use as a residence or premises; War, Riot, Etc. (h) anv person due to war, wheih?r or riot decia civil war, msurrection, revolution or rebellion or any accompanying acts of conditions; Nuclear Accidents. (i) any person causea by nuclear radioactivity of explosion; Intentional Injury. (j) any person who intentionally injures or atten to intentionally injure himself or another; and Felony or Eluding Arrest. (k) any person who injures himself or another while committing a felony or eluding lawful apprehension or arrest by a law enforcement official, Policy Period/Territory This coverage applies only to accidents which occ during the policy penoo and within the United Sta of America, its territories and possessions or Cana Limits of Liability The limits of liability apply regardless of the numb of persons insured, policies or plans of self-insura applicable, claims made, insured motor vehicles e motor vehicles involved in the accident. The Company's maximum limits of liability for medica expenses, income loss, funeral expenses and deal benefits with respect to bodily injury to any one eligible person in any one motor vehicle accident shown on your Declarations. Any amount payable by the Company under first 1 benefits shall be excess overall benefits an eligibl person receives or is entitled to receive under any workers compensation law or similar laws. Conditions A. Action Against Company. No action shall lie against the Company on the part of any eligible person unless such person has fully complied wit the terms of this coverage. B. Notice. If an accident occurs, written notice adequately identifying the eligible person and reasonably accessible facts concerning the time, i and circumstances of the accident shall be given ; soon as practicable by or on behalf of each eligibl person to the Company or any of its authorized agents. C. Medical Reports,- Proof of Claim. As soon as practicable the eligible person, or someone on hi, behalf, shall give the Company written proof of cl under oath if required, fully describing the nature extent of bodily injury, treatment and rehabilitatic received and contemplated and other informatior assist the Company in determining the amount d and payable. Proof of claim shall be made upon forms furnishi the Company unless the Company fails to supply forms within 15 days after receiving notice of clai -22^ The eligible person shall submit to mental and physical examinations by physicians selected by the Company when and as often as the Company may reasonably require. The Company will pay the costs of such examinations. The eligible perse : tor, :it the event of such person's incapacity or death, his legal representatives ;nal::f the Company requests, sign papers to enable the Company to obtain medical reports and copies of records. A copy of such medical report will be forwarded to such eligible person upon his written request. If benefits for income loss are claimed, the eligible person presenting such claim shall authorize the Company to obtain details of all earnings paid to him by an employer or earned by him since the time of the injury or during the year immediately preceding the date of the accident. D. Priorities of Policies We will pay first party, benefits in accordance with the following order of priorities. We will not pay if there is another insurer at a higher -level of priority. The priority order is: = First: The insurer providing benefits to the eligible person as a named insured. Second: The insurer providing benefits to the eligible person as a relative who is not a named insured under another policy providing coverage under the Pennsylvania Motor Vehicle Financial Responsibility Law. Third: The insurer of the motor vehicle which the eligible person is occupying at the time of the accident. Fourth: The insurer providing benefits on any motor vehicle involved in the accident if the eligible person: (a) is not occupying a motor vehicle, and (b) is not provided coverage under any other policy. If two or more policies have equal priority PART 7 • ADDED FIRST PARTY BENEFITS If you have paid for this coverage (see your Declarations) we agree that amounts payable for bodily injury to an eligible person under the "Limits of Liability" provision of the Pennsylvania First Party Benefits Coverage endorsement is changed as stated below. The Company's maximum limits of liability for medical expenses, income loss, funeral expenses and death benefits with respect to bodily injury to any one eligible person in any one motor vehicle accident shall not exceed the lessor of: (a) $177,500 in the aggregate; or (b) benefits payable for expenses incurred up to three years from the accident. These limits of liability are subject to specified limits for death benefits as follows: (a) The maximum amount payable for death benefits shall not exceed $25,000. These limits of liability apply regardless of the number of persons insured, policies or plans of self 1. The insurer against which the claim is first made shall process and pay the claim as if wholly responsible. 2. The maximum recovery under all policieswi nofexceed the amount payable under the polio with the highest dollar limits of benefits. For the purpose of determining priorities, an unoccupied parkea motor vehicle is not a mot vehicle. involved in an accident unless it was parked in a manner as to create an unreasonable risk of injury. E. Indemnity. The Company has the right of indemni against any person who: 1. has converted a motor vehicle; 2. committed a felony; 3. eluded lawful apprehension or arrest by a law enforcement official; or 4. intentionally injured himself or another person This right of indemnity is for first party benefits paid for: 1. the loss caused by the conduct of that persc 2. the cost of processing the claims for such benefits; and 3. the cost of enforcing this right of indemnity (including reasonable attorney's fees). F. Non-Duplication of Benefits- Other Insurance. No eligible person shall recover duplicate benefits for tl same elements of loss under this or any similar automobile insurance including self-insurance. G. Customary Charges for rreatment The amounts will pay to a person or institution providing treatme accommodations, products or services to an eligible person for an injury covered by medical expense benefits shall not exceed the amount the person or institution customarily charges for like treatment, accommodations, products and services in cases involving no insurance. insurance applicable, claims made, insured motor vehicles or motor vehicles involved in the accident. In accordance with the Pennsylvania Motor Vehicle Financial Responsibility Law, eligible medical expenses which result from a car accident covered under this Part will be paid up to our Limit of Liabil for this coverage subject to a maximum of the curr allowable and prevailing charge for the service provided as established by the Pennsylvania Motoi Vehicle Financial Responsibility Law. If a prevailing Medical fee, charge or payment has been calculated under the Medicare Program for a treatment, accommodation, product or service, the amount of our payment will not exceed 80% of the Medical provider's usual and customary charges fc the service in the provider's geographical region. Payment for acute care in any accredited acute can facility or burn foundation will not exceed the usue and customary charge. If the peer review program, established by the Pennsylvania Motor Vehicle Financial Responsibili -23- *809- Law, is utilized, an insured covered under this Part Fourth: The insurer providing benefits on any may request rec nsideration of the peer review initial motor vehicle involved in the accident if the determination of the disputed medical necessity of eligible person: treatment or services, within 30 days of such (a) is not occupying a motor vehicle, and determination.. (b) is not provided coverage under any oth( D. Priarifi s orFo/ices We will pay first party benefits policy. in accordance with the fr llovwing order of priorities. We wui nut pay if there is another insurer at a higher if two or more policies have equai orionw: level of priority. The priority order is: The insurer against which the claim is fir gam First: The insurer providing benefits to the eligible made shall process and pay the claim as if wholly responsible, person as a named insured. 2. The maximum recovery under all policie, Second: The insurer providing benefits to the not exceed the amount payable under the l: eligible person as a relative who is not a named with the highest dollar limits of benefits. insured under another policy providing coverage For the purpose of determining priorities an under the Pennsylvania Motor Vehicle Financial Responsibility Law. , unoccupied parked motor vehicle is not a motor vehicle involved in an accident unless it was parts Third: The insurer of the motor vehicle which the a manner as to create an unreasonable risk of inj eligible person is occupying at the time of the accident. - 24 - PAC 226 PA Ed. 11101 Pennsylvania Special Stete Provisions the following changes apply to your policy, PAC 186 PA Ed. 11100. PART 4 - VNINSURFD F.10TORISTS 4. LOSSES WE WILL NOT PAY FOR - t ;c following it;:als -ir revised: (Page 21) 2. Owned Motor Vehicles We will not pay for bodily injury sustained while using or occupying a motor vehicle or trailer nc insured under this Part, owned by you or a household resident. 3. Non-Owned Motor Vehicles We will not pay for bodily injury sustained while using or occupying a non-owned motor vehicle or trailer not insured under this Part, that is furnished or made available for regular use by you or a household resident. 5. Land Vehicles We will not pay for bodily injury if hit by the following land vehicles: a) motor vehicles owned or operated by self-insurers under any financial responsibility law c similar law; b) motor vehicles owned by a government agency in the United States of America or in Canada; c) land vehicles operated on crawler-treads or rails; di motor vehicles or equipment designed for use mainly off public roads (unless the acciden happens on a public road); e) motorcycles or other motorized vehicles that are not required to be licensed and registers (unless the accident happen; on a public road); 0 motor vehicles or equipment while used as a residence or premises, or to service a residence premises. 6. Racing We will not pay for bodily injury sustained while using or occupying a motor vehicle covered under this Part if the motor vehicle was being used in any organized racing, speed, demolition or stunt contest or related activity. 9. Auto Business We will not pay for bodily injury sustained while using a non-owned motor vehicle in any kind auto business. Examples of auto business are: selling, repairing, servicing, storing or parking motor vehicles. (PAGE 22) 12. Criminal Acts We will not pay for bodily injury sustained while committing or attempting to commit a felon or avoiding arrest. PART 5- UNDERINSURED MOTORISTS- 5. E. LOSSES WE WILL NOT PAY FOR- the following items are revised: (Page 26) 2. Owned Motor Vehicles We will not pay for bodily injury sustained while using or occupying a motor vehicle or trailer insured under this Part, owned by you or a household resident, or if the liability coverage of that vehicle is used to pay any portion of an insured's bodily injury liability claim. - 35 - *Bog- 3. Non-Owned Motor Vehicles We will not pay for bodily injury sustained while using or occupying a non-owned motor vehicle or trailer not insured under this Part, that is furnished or made available for regular use by yon or a household resident. 5. Land! Vehicles We :vlil not pay for oodily injury if hit by the following land vehicles: a) motor vehicles owned or operated by self-insurers under any financial responsibility law c similar law; b) motor vehicles owned by a government agency in the United States of America or in Canada; c) land vehicles operated on crawler-treads or rails; d) motor vehicles or equipment designed for use mainly off public roads (unless the accident happens on a public road); e) motorcycles or other motorized vehicles that are not required to be licensed and registerei (unless the accident happens on a public road); f) motor vehicles or equipment while used as a residence or premises, or to service a residence premises. _ 6. Racing We will not pay for bodily injury sustained while using or occupying a motor vehicle covered under this Part if the motor vehicle was being used in any organized racing, speed, demolition or stunt contest or related activity. 9. Auto Business We will not pay for bodily injury sustained while using a non-owned motor vehicle in any kind o auto business. Examples of auto business are: selling, repairing, servicing, storing or parking motor vehicles. (Page 27) 12. Criminal Acts We will not pay for bodily injury sustained while committing or attempting to commit a felony or avoiding arrest. PAC 204 (Ed. 4186) Non-Owned Motor Home And Truck/Van Campers Coverage If you have paid for this coverage (see the Declarations), the non-owned vehicle shown on the Dec- larations that comes with this endorsement has the coverages shown on the Declarations. All provisions and exclusions of your policy apply for the period shown on the Declarations except as follows. Throughout the policy when reference is made to a car, it is specifically limited to the vehicle shown on the Declarations. - 36 - 03/05/2004 07:56 Prudential Financial P. O. Box 429 Hinsdale, rL 60522 Client Services 1-900.437-5556 Claims 1.800.437-3535 Named Insured and P.O. Address PSP TROOP H HHG,PR.17112 4 92452165 Prudential General Insurance Company Roger L. Desjadon President II???d??a9YY'' NO..190 P02 1IIm19 MIN11111IIIpI1 Policy Number: 28 BA121714 Agency Data: 690160 3 W SH 010 Calhoun Barry E b Tammy 2011 Back Rd Halifax, PA 17032-9691 December 10, 2003 Dear Policyholder: On behalf of Prudential, I. want to thank you for giving us the opportunity to provide your Car insurance. By insuring with us, you have purchased more than protection and security. You've also gained access to a strong team of Prudential professionals dedicated to providing you with world class service. We hope you've been pleased with our service, and we look forward to continuing our relationship. Your renewal package is enclosed and contains: Your renewal Declarations Page A Payment Notice Your insurance Identification Card(s) A Privacy Policy Please refer to the back of this page for other important policy information and any coverage changes which may have occurred since your last :olicy period. We've also included Information about certain discounts available in your area. Remember, your representative is always available to discuss additional discount3 and savings opportunities. Prudential is committed to providing you with financial solutions for a lifetime o? needs. If you require additional advice or information on policy discounts, please contact your representative. We appreciate the trust you have placed in Prudential, and look forward to serving your insurance needs. Sincerely, President and CEO 3000000 MAO PAGE 01 288A121i'? 03/05!2004 07:56 PSP TROOP H HBG,PR.17112 4 92452165 NO. 190 Providing you with excellent service and a policy that works for you is very important to us. Please take some time to review the following information and materials enclosed in your renewal package. Please keep this package in a safe, accessible place for easy future reference. COVERAGE CHANGES and/or ADDITIONAL POLICY INFORMATION Please note that your policy's premium has been calculated based on a variety of factors and may include payment history, years of driving experience, credit history. incidents not subject to the Safe Driver Insurance Plan (such as non-surchargeable incidents) and Comprehensive losses (excluding glass and towing losses). The laws of the Commonwealth of Pennsylvania, as enacted by the General Assembly, give you the right to choose either of the following two tort options: A. "Limited Tort" Option - This form of insurance limits your right and the rights of other members of your household 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 nonmonetary 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. B. "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 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 and may also seek financial ccmpansietlan for pain and suffering or other nonmonetary damages as a result of injuries caused by other drivers. Also, the laws of the Commonwealth of Pennsylvania only require that you purchase liability and first party medical benefit coverages. Any additional coverage or coverages in excess of the limits required by law are provided only at your request as enhancements to the basic coverages. The minimum coverages are: - Bodily Injury Each Person $15,000 Each Accident $30,000 - Property Damage $ 5,000 - First Party Medical Benefits $ 5.000 If you choose these minimum coverages and the "Limited Tort" option, your premium fe your upcoming renewal term will be $135. If you choose the minimum coverages and thi "Full Tort" option, your premium will be $162. These premiums reflect any changes that will become effective with this renewal. Your current tort option is shown in 70^0000 MAO PAGE 02 288A121?1z 03/05i2004 07:56 PSP TROOP H HBG.PA.17112 3 92452165 ?N N0.190 111111I111111ANI NIN1111 the Important Messages section on the reverse side of the Declarations page. We'd like to be sure that you take advantage of discounts we offer when policyholders maintain other policies with use. If either you or a member of your immediate family, who reside in your household, owns an individual life insurance or annuity policy issued by Prudential, you may also qualify for our Companion Product Discount - Life/Annuity. We regret that group life insurance policies provided by your place of employment or an association do not qualify. Please take a few minutes to review the enclosed Declarations Page under the heading "Discounts, Credits, and Additional Charges Applied to your Premium" for an important message about these discounts. If you feel you qualify for either or both and they are not mentioned on your Declarations page, please contact a Customer Service Specialist. If you are planning a trip to Canada and will be driving while in Canada, please note that Canadian law requires you to carry a Canada Non-Resident Inter-Province Motor Vehicle Liability Insurance Card as proof of insurance. We'll be happy to provide this card to you upon your request. Simply contact us at the toll-free number shown on your Declarations Page, and a Service Specialist will assist you. Please note, the company must receive your premium payment in our office by the due date on each payment notice for coverage to continue. If your check, electronic remittance, or monthly Pru-Matic withdrawal is not received in our office by the due date, or is returned by the bank for insufficient funds, your policy will terminate due to non-payment of premium. IF YOU HAVE QUESTIONS, NEED ADDITIONAL SERVICE, OR NEED TO REPORT A CLAIM For policy changes or billing questions, our Service Specialists are available to assist you at the Customer Service number shown at the too of tnia latter. If you need to report a claim, please call (800) 437-3535• Since accident; can happer at any time, we are available 24 hours a day, seven days a week. To access our Telecommunications Device for the Deaf (TOO), speech and hearing impaired customers with TOO terminals may call 1-800-552-0994 for policy service anc 1-800-327-0196 to report a claim. 0000000 RA0 ?_, PAfiE 03 288A12171-` - - 03/65,/2004 07:56 PSP TROOP H HBa,PR.17112 -? 92452165 ME7.190 DE Prudential '1'111 111111 101 111 Financial prudential General Insurance Company PAGE Iof4 Your Car Policy Renewal Declarations Cars Covered By Your Policy Car Year & Make Model Body Type Identification Number 1" 2000GMC Sonoma Pickup 1GTDT19W7Y8130070 2 2002 Honda Ace Ex(SE Sedan 4D IHGCG66832A101671 The car(s) described above are principally kept (garaged) at the above address unless otherwise stated in Important Messages. Licensed Operatoe(s) Resident in Your Household Now Surcharge Points Date of Birth I Calhoun Barry E 00 11118/68 2 Calhoun Tammy 00 10113n0 PO Box 429 Hinsdale b 60522 Calhoun Barry E & Tammy 2011 Back Rd Halifax PA 17032-9691 Named Insured: Calhoun Barry E & Tammy Policy Number: 28 BA121714 Policy Period: Jan. 12, 2004 to Jul. 12, 2004 12:01 am, at place of garaging Customer Service Office: (800) 437-5556 To report a claim, please call: (800) 437-3535 Your local Prudential office: (717) 975-8150 R. FARA13AUGH CLU CHFC LUTCF CMFC MSFS CLI If any licensed driver in household is not listed, please call the Customer Service Office provided above. k ??? n? R1? l10Y 03/05/004 07:56 PSP TROOP H HBG,PR.17112 4 92452165 NO. 190 Doi PAGE 2of4 Policy Number: 28 BA121714 Discounts, Credits, And Surcharges Applied To Your Premium Discounts & Credits Anti-Theft Device Discount Deluxe Package Discount Multi-Car Discount Safety Device Discount We appreciate your Prudential Companion Home, Life, and/or Annuity business- Our maximum Companion Product Discount has been applied to this policy Important Message(s) That Apply To Your Policy First Party Benefits includes: Medical Expenses S 5,000 First Party Benefits provided without Funeral Benefits Applies to Car(s) 1, 2 Your policy Your policy Car(s) 1, 2 Your policy IF THIS POLICY PROVIDES COLLISION COVERAGE FOR ANY VEHICLE, THAT COLLISION COVERAGE ALSO EXTENDS TO VEHICLES RENTED, UP TO A MAXIMUM OF 30 DAYS. Full Tort applies to all cars listed on the Policy- IMPORTANT: Your policy premium may have changed due to rating by make and model of your car. Please check the vehicle description shown. Your policy is free of any acciderrt, conviction or inexperienced driver surcharge. Stacking of Uninsured Mownsts coverage, described in Part 4(Umusured Motorists) of your policy, applies to all cars listed an the policy. Stacking of Underiusured Motorists coverage, described in Part 5(Under nsured Motorists) of your policy, applies to all cars listed on the policy. P PAC 681 ED. 1198 03/05!2004 07:56 Prudential Financial PSP TROOP H HBG,PR.17112 4 92452165 N6.190 I N IllYf 1191111111111'p lit 11111 PAGE 3 of 4 Policy Number: 28 SA121714 Listed below and within "Important Messages" are your policy coverages, limits, and premiums. If a premium charge does not appear, that coverage is not provided. Your Coverage And Limits Premiums d' .asp Limits Car 1 Car 2 93/05/2004 07:56 Q,W Prudential Financial PSP TROOP H HBG,PR.17112 i 92452165 N6.190 IHIII1111N111011111111111II III PAGE 3 of 4 Policy Number: 28 SA121714 Listed below and within "Important Messages" are your policy coverages, limits, and premiums. If a premium charge does not appear, that coverage is not provided. Your Coverage And Limits Coverage Limits Liability - Bodily Injury Each Person $100,000 Each Accident $300,000 Liability - Property Damage Each Accident $25,000 Uninsured Motorists - Bodily Nary Each Person $100,000 Each Accident $300,000 Underinsured Motorists - Bodily Injury Each Person $100,000 Each Accident $300,000 First Party Benefits Collision Deductible -Car 1 $ 500 Deductible -Car 2 $ 500 Comprehensive (G=FR Wnshld Glass Cov) Deductible -Car I $ 50-G Deductible - Car 2 $ 100-G Towing - Each Occurrence $50 Total Premium Per Car Premiums Car 1 Car 2 $ 49 $ 44 S 31 $ 27 $ 13 $ 18 S 17 $ 24 $ 12 -$ 11 S 64 $ 83 $ 42 5 ?3 S 2 $ 230 TOTAL POLICY PREMIUM' $ 247 $477 Premium amount includes applicable discounts, credits, and surcharge! PAC i81 ED. 1198 low O3/05/.2004 07:56 PSP TROOP H HEG,PR.17112 4 92452165 N0. 190 PAGE 4 of Policy Number: 28 8AI21714 Your Policy Forms & Endorsements Your policy is made up of your most recent Declarations and the forms and endorsements listed below. Forms and endorsements being made part of your policy with this transaction are provided in separate booklets or are indexed and reproduced on pages which follow: Mandatory Policy Forms and Endorsements Pennsylvania Car Policy Parts 1,3,4,3,6 and 7 Pennsylvania Special State Provisions Optional Endorsements None Lienholder/Loss Payee Information Car 1 Pennsylvania St Ecu PO Box 67013 Harrisburg PA 2 Psecu PO Box 67013 Harrisburg PA PAC 186/PAEd. 11/00 PAC 226 PA Ed. 11/01 rrerritory Rating Class Symbol Code 098 H 811320 098 F 811120 PAC 681 511. 1/98 03/05/2004 07:56 PSP TROOP H HBG,PA.17112 -?, 92452165 NO. 190 IIINII 1k,1 11I 111 N1011111 ACCIDENT SURCHARGE FORGIVENESS PROGRAM Dear Policyholder We value our loyal customers and their good driving experience. To express our appreciation, we are offering an Accident Surcharge Forgiveness program. If you are involved in an accident that results in a policy surcharge, the surcharge for the first surchargeable accident will be waived if: You have been continuously insured through a Prudential Car Policy, excluding Residual Market Plans (e.g., Assigned Risk Plans), for five years prior to the date of this accident; and There are no other surchargeable accidents with a date of loss within that five year period. You should be aware that, although the surcharge for the first surchargeable accident may be waived, in many states, the accident may affect your eligibility for other discounts. We will be glad to provide you with details on this program. Please contact us at the Customer Service number shown on your Policy Declarations page. PAC 4007 Ed. 6071N5 - t - 03/05/2004 07:56 PSP TROOP H HBG,PR.17112 4 92452165 `? N0.190 PAC 9 PA (Ed. 4/03) Car Rating Information Form (PRUGEN) The premium you pay for your automobile ipsurance depends upon many factors. Many of these factors are reflected in the six digit Class Code that is assigned to each vehicle on your policy. (The Class Code for each vehicle is shown on the last page of your policy Declarations.) This form provides a brief explanation of the Class Codes and other considerations that play a role in determining your policy premium. Rate Class Code Explanation (Sample Code is 854610) The first digit (the 8 above) of the Rate Class is always 7 or 8. It shows the number of miles your car is driven in a year. Number 7 meane: Your car is driven under 7500 miles a year. Number 8 means: Your car is driven 7500 or more miles a year. 2nd digit Ithe 5 above) Driver Class No Youthful Driver 1 All other 2 Principal Senior Driver Age 65-74 4 Principal Driver Age 55-59 5 Principal Driver Age 60-64 7 Principal Driver Age 75 or over 8 Principal Driver Age 50-64 without youthful driver Youthful Driver 4&7 Unmarried Driver not owner or principal driver 5&8 Unmarried Driver owner or principal driver 0&6 Married Driver 3rd digit (the 4 above) Driver Class 1 No Youthful: Driver Youthful Driver 2 Age under 21, without Driver Training 3 Age under 21,with Driver Training 4 Age 21-24 5th digit (the 1 above) - Car Typo;Multipie Car 1 Only One Car Insured 2 More Than One Car Insured 4th digit (the 6 above) Use Class No Youthful Driver 1 Pleasure 2 Work under 100 MilesAveek 3 Work, 100 or more Miles/wesk 4 Business Use 5 Farm Use Youthful Driver 6 Pleasure, including Work, under 100 Miles/week, or Farm Use, without Good Student Discount 8 Work, 100 or more Miles/weakr or Business Use, without Good Student Discount 7 Pleasure, including Work, under 100 Miles/ week, or Farm Use, with Good Student Discount 9 Work, 100 or more Mil"ANeek, er Business Us3, with Good Student DiscvC?' 8th digit (the 0 above) - Safe Driver Plan The percentage of premium change is displayed compared to our base classification (i.e., Adult, principa: driver, under age 50, carlis used for pleasure and driven 7,500 or more miles annually). Multi-Car Single Car All Class Rated All Class Rated Multi-Car Paints Cove Coverages, excluding Comprehensive O No Points rages 0 Comprehensive cmiu l 1 One Point +10 -20 -10 -10 2 Two Points +25 0 3 Throe Points 45 +45 +5 +15 4FourPoints +80 +25 x+35 5 Five Points +120 +60 6 Six Points +170 +100 *70 7 Seven Points +230 + +150 .010 8 Eight Points + +210 +160 9 Nine Points *100 will be added to th op e 4 +280 +380 --220 -2v: pert e n Ige for 9 poi nts for each point beyond 9 points. .35C 2 - 03/05!2004 07:56 PSP TROOP H HBG,PA.17112 i 92452165 u^?N0.190 Safe Driver Insurance Plan Data 1. Studies have shown that, as a group, drivers who have been involved in accidents or who have motor vehicle convictions are more likely to have future accidents than drivers without accidents or convictions. Our Safe Driver Insurance Plan reflects this. 2. Points are assigned for convictions and accidents occurring within the experience period for the applicant or any resident driver as follows: A. Car Convictions (1) Six points are assigned for each conviction of: a. Driving while intoxicated or under the influence of drugs. b. Failure to stop and report when involved in an accident resulting in bodily injury. c. Homicide or assault arising out of the operation of a motor vehicle. d. Driving during a period while the license is suspended or revoked. e. Reckless driving. (2) Two points are assigned for a conviction of any of the following; a. Improper passing on a hill. b. Leaving the scene of an accident involving property damage only. c. Exceeding maximum speed limit by 16 or more miles per hour. d. Failure to stop for a school bus with flashing lights. (3) One point is assigned for any other conviction for a moving traffic violation. NOTE: Under (2) or (3) above, points are only assigned for the second or subsequent conviction under statute 75-1535. B. Car Accidents (1) Occurring on or after 7/1/02: a. New Business* Two points are assigned for each at-fault accident involving the applicant or any resident driver of a car resulting in payment(s) on your behalf by an insurance company of $1,050 or more for damage to: the car driven; and/or other property. b. Renewal Business*" Two points are assigned for each accioant involving the insured or arty resident driver of the car, as of the date the company has made payment(s) during the experience period of $1,050 or more for damage to: - the car driven; and/or - other property. (2) Occurring on or after July 1, 1999 but before July 1, 2002: a. New Business* Two points are assigned for each at-fault accident involving the applicant or any resident drvar of a car resulting in payment(s) on your behalf by an insurance company of $950 or more for damage to: the car driven; and/or other property b. Renewal Business"* Two points are assigned for each accident involving the insured or any resident driver of the car, as of the date the company has made payment(s) during the experience period of $950 or more damage to: - the car driven; and/or - other property *New Business means the accident occurred prior to being insured with Prudential. **Renewal Business means the accident occurred while insured with Prudential. Accident Surcharge Forgiveness No point(s) will be assigned to the firq surchargeable accident if the named insured has been continuously insured under a Prudgrj0?tl Car Policy, excluding Residual Market Plans (e.g., Assigned Risk Plans), for the five years prior to the, dfta of loss and there were no other surchargeable accidents that had a date of loss within that five year I I C. Exceptions No point is assigned for an accident uncIft4above if the accident occurred under one of the following circumstances: (1) Lawfully Parked: Car of applicant pr other resident driver was lawfully parked. A car rolling frog- a perked position is not lawfully perked, but is caused by the operation of the last driver. (2) Not-At-Fault: Applicant or other resident driver is less than 50% at-fault for the accident. - 3 - 03/05/2004 '07:56 PSP TRODP H HBG,PR.17112 4 92432165 ND. 190 iiiiiBimllll lullili ills liberty* Mutual. NOTICE'OF PRIVACY POLICY Liberty Mutual" values you as a customer and takes your personal privacy seriously. When you apply for insurance, you disclose information about yourself or members of your family. This notice tells you how we treat the information we collect about you. 1. INFORMATION WE MAY COLLECT We collect information about you from: - Applications or other forms you complete; Your business dealings with us and other companies; Your employer or association for Liberty Mutual Group products; - Consumer reporting agencies, Motor Vehicle Departments, inspection services, the Medical Information Bureau and medical providers; and, - Visits to our Liberty Mutual website. 2. TYPES OF INFORMATION WE MAY DISCLOSE We may disclose the following about you: - Information from your application or other forms, such as your name, address, vehicle and driver information; - Information about your transactions with us, our affiliates or others, such as your insurance coverages, payment history, and certain claims information; and, - Information we receive from third parties, such as your motor vehicle records and claims history. 3. TO WHOM MAY BE DISCLOSED We do not disclose personal information about you to anyone unless allowed by law. We are allowed by law to provide information to: - A third party that performs services for us, such as claims investigations, inspections, and appraisals; - Our affiliated companies and reinsurers; - Insurance regulators and reporting agencies; - State Motor Vehicle Departments to obtain a report of any accidents or convictions; - Law enforcement agencies or other government authorities to report suspected illegal activities; - A person or organization conducting insurance actuarial or research studies which are subject to appropriate confidentiality agreements; - Companies that provide marketing services on our behalf, or as part of a joint marketing agreement with banks, credit unions, and affinity partners, or providers of annuity and financial products and services offered through us;to our customers, which are subject to appropriate confidentiality agreements, and - As otherwise permitted by law. 4. NOW WE PROTECT INFORMATION We maintain physical, electronic, and procedural safeguards to protect your nonpublic personal information. These safeguards comply with applicable laws. We retain your information for as long as required by law or regulation. The only employees or agents who have access to your information are those who must have it to provide products or services to you. We do not sell your information to mass marketing or telemarketing companies. This privacy notice is provided m behalf ofibe Mewing Lai" Mutual cerepwi a and affdiatn that provide pmoaal a tomobile, bomeoptre., life iaxw=m- amerity sod &McW praduc? sod cervices: Liberty Mutual twrame Coo4my, libertyAfirmal Fire is u a Company. Liberty Inmrmree Cwpmafim L\f Imuarlce Curpmmian, The rust Liberty fwrmrs C-p-MM liberty bmaxice Conipsay of Ammw% Liberty Nard west Imunocs Corporwom Lbuty bit Anuome Convasy cf eneeq Liberty Life Seeuriiie LLC. flbmty County Mutual fnmrance Company (Toss ouly). and liberty, Lloyds of Tem Innaaace Caotyany. Prudential PrepatV and Casualty to maregg t Cempeey. Prudential Coa marcial insurance Compugv PrudmtW General huurnwe Cmopmy. OCD W" Ed. 1 ba3 JT 03/05/2004 07:56 PSP TROOP H HEG,Pq,17112 92452169 Nd. 1130 IN 1 11101311M MtI1111110 Prudential Financial Renewal Payment Notice Prudential General Insurance Company Automobile www.pmdential.com Please send payments to: Prudential Account Processing Center P.O. Box 856139 Louisville, KY 40285-6139 Calhoun Barry E & Tammy 2011 Back Rd Halifax PA 17032-9691 Notice Date: December 10, 2003 Insureds Nance: Calhoun Barry E & Tammy Policy Number: 28SA121714 Policy Period: Jan 12, 2004 - Jul 12, 2004 Customer Service Office: (800) 437-5556 To report a claim, please call: (800) 437-3535 Your Prudential Representative: (717) 975-8150 R FARABAUGH CLU CHFC LUTCF CMFC MSFS CL Billing Summary Premium Current balance Paying Your Bill $477.00 You may make a full payment, or choose an installment $477.00 payment plan at this Um Paying one of the installment amounts automatically enrolls you in that payment plan for future installments. Policy changes may affect future amounts and dates. Duce Date January 12, 2004 Full payment January 12, 2004 2 payment plan March 12, 2004 2nd payment January 12, 2004 4 payment plan. February 17, 2004 2nd payn=1 $5.00 service charge included in uhf z :rs_'. Amaat 54-- -,, 1mPottant Messages ' Save money by eliminating service charges. It's easy, Choose Pru-Matic and have month right from your bank account. you can also select a monthly billing date that your makes seaufor r? tam a . he See the ttad of am notice for add =MWC d. s+a?.........-.. 03/05%2004 07:56 PSP TROOP H HBS,PR.17112 4'32452165 My. 190 Policy Number. 28SA121714 Additional Important Messages out how by calling 1-800-437-5556 today. The company must receive your premium payment in our office by the due date for coverage to continue. If your check or electronic remittance is not received in our office by the due date, or is returned by the hank for insufficient funds, your policy will terminate. If you have a touch-tone telephone, you can reach us 24 hours a day, 7 days a week through our automated response unit. You can obtain policy information such as billing status, payment history, policy coverage, and request duplicate policy documents by calling the Customer Service Office Number listed on the front of this notice. Your premium may be different from the premium for your last policy period. This bill reflects our current Company rate adjustment as well as any coverage changes you may have requested. Congratulationst Your policy qualifies you for our Deluxe Package Discount. This means you are now paying 10°A less than those who do not quality. Policyholders have received a 10% discount if they are insuring at least two vehicles with us, carrying at least 1001300125 Liability limits, and carry both Comprehensive and Collision coverages co, at least one vetucle. If you did not purchase optional Rental Car Coverage and you have collision or comprehensive coverage on your policy, you may wish to amend your policy to include it. Rental Car Coverage covers the cost of renting a car if a car you own is out of use for more than 24 hours because of a Collision or Comprehensive loss. But this coverage does not apply when a car is stolen and Comprehensive Coverage applies. If you would like to add Rental Car Coverage to your policy, please contact your Prudential Representative or our Prudential Customer Service Specalists regarding the details and cost Prudential W Financial Turo Law Offices 28 South Pitt Street Carlisle, PA 17013 RE: Our Insured: Barry E. & Tammy Calhoun Your Client: Barry E. Calhoun Our Claim Number: 46YO3937-12-065 Date of Loss: 7/21/03 Attention: Ron Turo, Esquire Dear Mr Turo: Prudential General Insurance Company PO Box 977, Horsham, PA 19044 Tel 25-658-5752 Fax 215-658-5720 February 25, 2004 We have reviewed the facts surrounding this loss and must advise you that your client's policy does not afford him Underinsured Motorist coverage for this accident. Your client was injured while in the course of his employment as a Pennsylvania State Police Officer while using a "regularly used" police vehicle. This vehicle is not a listed vehicle on our policy nor does the vehicle qualify for coverage as a non-owned vehicle. We are denying this claim because the vehicle involved in this loss was not a covered vehicle under THE PENNSYLVANIA CAR POLICY. The covered vehicles are listed on page 25. "C. WHAT CARS ARE COVERED (PART 5)... t. Cars Described On Your Declarations... 2. Replacement Cars... 3. Additional Cars... 4. Substitute Cars. 5. Other Non-Owned Cars"... In addition to the above there is a specific exclusion in the policy's Pennsylvania Special State Provisions PAC 226 PA Ed. 11/01. "PART 5- UNDERINSURED MOTORISTS- 5. E. LOSSES WE WILLNOT PAY-the following items are revised:... 3. Non-Owned Motor Vehicles We will not pay for bodily injury sustained while using or occupying a non-owned motor vehicle or trailer not insured under this Part, that is furnished or made available for regular use by you or a household resident."... A favorable enforcement of the policy's exclusions for this circumstance is contained in recent PA Supreme Court decisions (see Burstein v PRUPAC Ins Co. 809 A.2d 204 Pa. 2002, Gisler v PRUAPC, No. 31 EAL 2001, 2002 PA LEXIS 1853, Pa. Sept. 5, 2002). Sincerely, Sandra Fiore Casualty Analyst Turo Law Offices RON TURD, Esquire ROBERT J, MULDERIG, Esquire GALEN R. WALTZ, Esquire JAMES M. ROBINSON, Esquire DANIEL D. WORLEY, Esquire JAMES G. GAULT, Esquire NANCY A. PRESCOTT, Esquire May 6, 2004 Sandra Fiore ?'LE Prudential General Insurance Company P.O. Box 977 Horsham, PA 19044 Re: Your Insured: Barry E. & Tammie Calhoun My clients: Barry E. & Tammie Calhoun Your Claim Number: 46YO3937-12065 Date of Loss: July 21, 2003 Dear Ms. Fiore: www.TuroLaw.com 28 South Pitt Street Carlisle, Pennsylvania 17013 (717) 245-9688 (800) 562-9778 Fax (717) 245-2165 COPY Thank you for your letter of February 25, 2004. We have now had an opportunity to research the issue under which you have denied coverage to Barry Calhoun for the accident that arose on July 21, 2003 when Trooper Calhoun was operating a State Police patrol vehicle and was seriously injured through the negligence of a third party. The Torfeasor's Insurance company, NationWide, has tendered its $15,000.00 limit and we have filed a claim for underinsured motorist coverage through Trooper Calhoun's personal policy. You have denied the claim based on your reading of the policy as well as the Supreme Court Case of Burstein. Trooper Calhoun was not utilizing a "regularly used" police vehicle at the time of the accident. In fact the vehicle assigned that day to Trooper Calhoun had never been previously been used by him. The Burstein case discusses the public policy of requiring a motorist to insure a "regularly used" employer owned vehicle when that vehicle is assigned to that employee in the course of his or her duties. This is akin to a "company owned vehicle" provided to the motorist for use by the motorist and in furtherance of the employer's business. In such a situation Burstein contemplates that the motorist can obtain uninsured and underinsured coverage either through his family policy or through the employer. In the situation Trooper Calhoun found himself he was totally incapable of providing such additional coverage as he was never assigned the same vehicle and consequently could not, in fact, insure the entire State Police fleet. The Public Policy of Burstein is clear however it does not provide an exclusion to Prudential in this circumstance. Trooper Calhoun was not utilizing a "regularly used" vehicle and consequently the exclusion does not apply. I renew our request for benefits and ask for your consent to settle so that we may obtain the first $15,000.00 from the Tortfeasor. If you are unable or unwilling to accept this claim we plan to Page 2 5/6/04 litigate this matter against you. If you do reject the claim I still would anticipate receiving consent to settle while reserving your right to litigate the issue. I look forward to receiving your consent to settle, you acceptance of this claim and your adjuster contact so that we can begin to discus the underinsured value of this claim. Sincerely, RON TURO, ESQUIRE RonTuro@TuroLaw.com RT/jah c.c. Barry Calhoun Prudential Financial P.O. Box 977 Horsham, PA 19044-0977 800-634-1523 Prudential General Insurance Company May 11, 2004 Ron Turo, Esq. 28 South Pitt Street Carlisle, PA 17013- Claim Number: Date of Loss: Insured: Claimant: Policy Number: Dear Sir: 46Y03937-E-12-065 JuLy 21, 2003 Barry E & Tammy Calhoun Barry E. Calhoun 288A121714 I am in receipt of your correspondence of May 6, 2004. Our position is that since your client's DIM coverage does not apply to this loss, then a consent to settle is not required. Thank you for your cooperation. If you have any questions, you're welcome to call me at (800) 634-1523, ext. 5752, between 7:00 a.m. and.5:00 p.m. Eastern time, Monday, Tuesday, Wednesday and Thursday. I can also be contacted by Fax or my Internet email address. Both are provided below for your convenience. ' ncerel , Sandra Fiore Claims Representative Fax: (215) 658-5720 email: sandra.fiore@llibertymutual.com THE STATE OF PENNSYLVANIA REQUIRES THE FOLLOWING STATEMENT BE PROVIDED. ANY PERSON WHO KNOWINGLY AND WITH INTENT TO DEFRAUD ANY INSURANCE COMPANY OR OTHER PERSON FILES AN APPLICATION FOR INSURANCE OR STATEMENT OF CLAIM CONTAINING ANY MATERIALLY FALSE INFORMATION OR CONCEALS FOR THE PURPOSE OF MISLEADING, INFORMATION CONCERNING ANY FACT MATERIAL THERETO COMMITS A FRAUDULENT INSURANCE ACT, WHICH IS A CRIME AND SUBJECTS SUCH PERSON TO CRIMINAL AND CIVIL PENALTIES. I I vi SHERIFF'S RETURN - REGULAR CASE NO: 2004-02849 P COMMONWEALTH OF PENNSYLVANIA: COUNTY OF CUMBERLAND CALHOUN BARRY E ET AL VS PRUDENTIAL GENERAL INSURANCE SHAWN HARRISON , Sheriff or Deputy Sheriff of Cumberland County,Pennsylvania, who being duly sworn according to law, says, the within COMPLAINT - EQUITY was served upon LIBERTY MUTUAL GROUP the DEFENDANT , at 1549:00 HOURS, on the 24th day of June 2004 at 5021 LOUISE DRIVE MECHANICSBURG, PA 17 055 by handing to BERNADETTE BALINT, P ERSONAL SALES ASST, ADULT IN CHARGE a true and attested copy of COMPLAINT - EQUITY together with and at the same time directing Her attention to the contents thereof. Sheriff's Costs: So Answers: Docketing 18.00 Service 8.28 Affidavit .00 Surcharge 10.00 R. Thomas Kline .00 36.28 06/28/2004 RON TURO Sworn and Subscribed to before By: t P me this '7 day of ep y Sheriff - A.D. '1u , i A, P o honotary & p tw. Curtis R. Long Prothonotary office of the Protbonotarp Cumberlanb Countp Renee K. Simpson Deputy Prothonotary John E. Slike Solicitor n14 - .2-e ? .r(_ CIVIL TERM ORDER OF TERMINATION OF COURT CASES AND NOW THIS 5TH DAY OF NOVEMBER 2007 AFTER MAILING NOTICE OF INTENTION TO PROCEED AND RECEIVING NO RESPONSE - THE ABOVE CASE IS HEREBY TERMINATED WITH PREJUDICE IN ACCORDANCE WITH PA R C P 230.2. BY THE COURT, CURTIS R. LONG PROTHONOTARY One Courthouse Square - Carlisle, Pennsylvania 17013 - (717) 240-6195 - Fax (717) 240-6573