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HomeMy WebLinkAbout11-4632DONNA MOWRY V. INFINITY INSURANCE Respondent IN THE COURT OF COMMON PLEA, Ol , Of It, . ice.. Z r" / ? r1j - CIVIL ACTION -LAW ? -rn NO: 2011 - m C5 ? .. JURY TRIAL DEMANDED D C o ?? -?,- C7 w ? w PETITION TO COMPEL ARBITRATION Petitioner, Donna Mowry, through her undersigned counsel, petitions this Honorable Court under 42 Pa. Cons. Stat. Ann § 7304(a) for an Order compelling arbitration in this matter, and in support represents as follows: 1. Petitioner, Donna Mowry is a citizen of the Commonwealth of Pennsylvania residing at 168 Amy Drive, Carlisle, Pennsylvania 1701.3. 2. Respondent, Infinity Insurance, is an insurance company duly licensed to do business in the Commonwealth of Pennsylvania with its principal place of business at 3700 Colonnade Parkway, Birmingham, Alabama 35243. 3. On or about May 27, 2007, Petitioner was the driver of a vehicle traveling East on the Harrisburg Pike near the intersection of Harrisburg Pike and South Middlesex Road in Middlesex Township, Cumberland County, Pennsylvania. 4. Another driver, Matthew Coover, who was traveling North on South Middlesex Road and was stopped at the traffic light at the intersection South Middlesex Road and Harrisburg Pike; suddenly, unexpectedly, and failing to yield to oncoming traffic, proceeded into the intersection of Harrisburg Pike and South Middlesex Road. 5. Due to Mr. Coover's sudden encroachment into the traffic lane, Petitioner was unable to avoid striking the rear of the Mr. Coover's vehicle. 44 &70? 7s-oz 6. Petitioner reported to her family physician complaining of neck pain and was diagnosed with a cervical sprain and tinnitus. 7. The accident and resulting injuries to the Petitioner, were solely caused by the negligence of Matthew Coover. 8. At the time of the accident, Matthew Coover was insured under a policy with Allstate Property and Casualty Insurance Company, which accepted coverage and to the present date, remains in litigation. 9. As of the date of filing of this Petition, the Respondent has not provided any sufficient evidence that the Petitioner is not entitled to UI / UIM motorist coverage. 10. As there is not sufficient coverage available from the tortfeasor, Petitioner has requested arbitration in accordance with the provisions of her Infinity policy, as set forth in both Part C - Uninsured Motorist Coverage-Arbitration, and Part D - Underinsured Motorist Coverage - Arbitration. WHEREFORE, the Petitioner requests this Court issue a rule upon the Respondent to show cause, if any it has, why the Respondent should not be submitted to arbitration and thereafter order that the matter be submitted to arbitration. Date: Respectfully submitted, ROMINGER & ASSOCIATES Karl E. Rominger, Esquire 155 South Hanover Street Carlisle, PA 17013 (717) 241 -6070 Supreme Court ID # 81924 Attorney for Plaintiff DONNA MOWRY V. INFINITY INSURANCE Respondent IN THE COURT OF COMMON PLEAS OF f`f 1 fr) T;' I A-k T F N (•i 2Y t*i f"V OUNINTOVI c, n i1Fn CIVIL ACTION - LAW NO: 2011 - JURY TRIAL DEMANDED CERTIFICATE OF SERVICE I, Karl E. Rominger, Esquire, attorney for Petitioner, do hereby certify that I this day served a copy of the within Petition to Compel Arbitration / UM /UIM by USPS First Class Mail, postage prepaid, at Carlisle, Pennsylvania, addressed as follows: Infinity Insurance 3700 Colonade Parkway PO Box 830189 Birmingham, AL 35243-3219 r Date: S 4?1? Michael E. Scheib, Esquire Griffith, Strickler, Lerman, Solymos & Calkins 110 S. Northern Way York, PA 17402-3737 Respectfully, Rominger & Associates Karl E. Rominger, Esquire 155 South Hanover Street Carlisle, PA 17013 (717) 241 -6070 Supreme Court ID #: 81924 Attorney for Donna Mowry DONNA MOWRY IN THE COURT OF COMMON PLEAS OF 'irN 90 i''i)1 A *iI.._.flt?'`i i,V i?i'hfk Fi (J v. CIVIL ACTION - LAW NO: 2011 - INFINITY INSURANCE JURY TRIAL DEMANDED Respondent : ACCEPTANCE OF SERVICE I, Michael E. Scheib, Esquire, attorney for the Respondent, hereby accept service of Petitioner's Petition to Compel Arbitration, in the above captioned matter. Respectfully, Griffith, Strickler, Lerman, Solymos & Calkins Date: Michael B. Scheib, Esquire 110 South Northern Way York, PA 17402-3737 Phone: (717) 757 - 7602 PAID: 63868 Attorney for Respondent - Infinity Insurance R.''t. E L1 u r_ '7 Jr PROTHIO? t?: 11JUN 20 AM 11: 10 C,UHBERLAND EN!IS.YI.VA 11 A IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA DONNA MOWRY, Petitioner V. : INFINITY INSURANCE, Respondent NO. 11-4632 CIVIL TERM CIVIL ACTION - LAW JURY TRIAL DEMANDED RESPONDENT, INFINITY INSURANCE'S ANSWER TO PETITIONER'S PETITION TO COMPEL ARBITRATION AND NOW, comes the Respondent, Infinity Insurance, by and through its counsel, Michael B. Scheib, Esquire, and Griffith, Strickler, Lerman, Solymos & Calkins, and files the following Answer to Petitioner's Petition to Compel Arbitration, and in support thereof avers as follows: 1. Admitted. 2. Admitted. 3. Admitted. 4. Admitted in part and denied in part. It is admitted that the vehicles came into contact with one another. The remaining allegations are denied. After reasonable investigation, Respondent is without knowledge or information sufficient to form a belief as to the truth of the allegations set forth in paragraph 4 of Petitioner's Petition, and the same are denied and strict proof thereof is demanded. 5. Admitted in part and denied in part. It is admitted that the vehicles came into contact with one another. The remaining allegations are denied. After reasonable investigation, Respondent is without knowledge or information sufficient to form a belief as to the truth of the allegations set forth in paragraph 5 of Petitioner's Petition, and the same are denied and strict proof thereof is demanded. 6. Admitted. 7. Denied. This paragraph states a legal conclusion to which no response is required. 8. Admitted. 9. Denied. As set forth in the New Matter, Petitioner was provided a copy of the insurance policy in 2010. Furthermore, the question is not whether "Petitioner is ... entitled to UI/UIM motorist coverage." The relevant question is whether the policy issued by Infinity Insurance requires mandatory arbitration. 10. Denied. This paragraph states a legal conclusion to which no response is required. Furthermore, after reasonable investigation, Respondent is without knowledge or information sufficient to form a belief as to the truth of the allegations set forth in paragraph 10 of Petitioner's Petition, and the same are denied and strict proof thereof is demanded. WHEREFORE, Respondent respectfully requests this Court deny the Petitioner's Petition to Compel Arbitration/UIM/Ul. NEW MATTER 11. Paragraphs 1 through 10 of Respondent's Answer to Petition to Compel Arbitration are incorporated herein as though fully set forth at length. 2 12. On or about May 27, 2010, Petitioner, by and through her attorneys, filed a Petition to Compel Arbitration/UIM/UI in the Court of Common Pleas of Cumberland County, Pennsylvania. (See Docket No. 10-3451 captioned Donna Mowry v. Infinity Insurance.) 13. On June 18, 2010, Respondent filed an Answer to the Petition. In its Answer, Respondent stated that Petitioner is not entitled to mandatory arbitration of a claim for UIM/UI benefits. Rather, the policy provides that the matter "may be arbitrated." 14. The Petitioner's policy expressly requires both parties to agree to arbitration for an arbitration to occur. (See Exhibit A.) 15. In this case, Respondent does not agree to arbitration. 16. As such, the Petitioner's only recourse is to file suit in the Court of Common Pleas. WHEREFORE, Respondent respectfully requests this Court deny the Petitioner's Petition to Compel Arbitration/UIM/UI. GRIFFITH, STRICKLER, LERMAN, SOLYMOS & CALKING'? Date: June I q , 2011 By: MICHAEL B. 9CHEIB, ESQ PA 63868 110 South Northern Way York, PA 17402-3737 Phone (717) 757-7602 Fax (717) 757-3783 Mscheib2izslsc.com Attorney for Respondent, Infinity Insurance 3 VA ).1 NF1 1? STATEMENT OF CERTIFICATION State of Alabama City of Birmingham County of Jefferson September 21., 2009 I, Peggy Taggart, Authorized Representative of Leader Preferred Insurance Company, certify the attached is a complete and accurate copy of the Declaration Page and Policy Jacket for policy number 137-14938- 5413-001 issued to DONNA J. MOWRY. The effective dates of the policy when issued were July 1, 2004 to January 1, 2005. The Declaration Page attached is a from January 1, 2007 to July 1, 2007. QguT ar State of Alabama City of Birmingham County of Jefferson September 21, 2009 On this date before me, Joshua Glenn Prather, a Notary Public, personally appeared Peggy Taggart, to me personally known and being duly sworn affixed her signature to the foregoing document set forth herein. Qiou?aOtena Prathe My Commission Expires. November 2, 2011 Infinity Value Added 5205 N. O'Connor Blvd,, Suite 700 Irving, TX 75039 Underwritten by: Leader Preferred insurance Company, 1400 Provident Tower, One E 4th St, Cincinnati, OH 45202 Customer Service: (877) 953-2337 PERSONAL AUTO DECLARATION Claims Service: (800) 334-1661 MOWRY, DONNA.! 116 W BUTLER ST MOUNT HOLLY SPRINGS PA 17065 # Yr Make -Model Serial Number ComplColl # Driver Name Driver Status 1 04 DODG 1500 1 D7HU18D54S516259 1001500 1 Donna Mowry Active Active 2 99 DODG INTREPID 2B3HD56J4XH629613 100 / 500 1 FAFPIOPOXW142032 NIA/NIA 2 Edwin Mowry 5 Tyler Mowry Unlicensed 3 99 FORD ESCORT COVERAGES - LIMITS OF LIABILITY PREMIUMS FOR VEHICLES THE COVERAGE IS APPLICABLE ONLY IF A PREMIUM IS INDICATED VEH 1 VEH 2 VEH 3 Bodily Injury Liability $100,000 each person $300,000 each accident 26 30 41 20 30 Property Damage Liability $100,000 each accident 41 4 Uninsured Motorist -Slacked $15,000 each person $30,000 each accident 4 4 4 4 Underinsured Motorist . Stacke-315.000 each person $30,000 each accident 4 9 10 Medical 8enefis 55,000 Limit 7 4 5 6 Income Loss S2,500Imonth 550,000 aggregate 52 Comprehensive' 37 98 143 Collision PREMIUM BY VEHICLE: 221 288 74 TOTAL VEHICLE PREMIUM $ 583.00 POLICY FEES ENDORSEMENTS MADE A PART OF THIS POLICY: TOTAL POLICY PREMIUM $ 583.00 13752LPE02;13752AE101 IF COLLISION COVERAGE IS PURCHASED, IT DOES APPLY TO A RENTAL VEHICLE USED AS A SUBSTITUTE AUTO. Additional Payments 520 per day up to $600 per theft for cost of transportation. POLICY NUMBER: 137-14938-5412-001 POLICY PERIOD: 01/0112007 TO 07/01/2007 Current Policy Period. Policy is effective at the address of the policy holder as stated herein. The following coverages and limits apply to each described vehicle as shown below. Coverages are defined in the policy and are subject to the terms and conditions contained in the policy, including amendments and endorsements. No changes will be effective prior to the time changes are requested. INSURED COPY FORM 13752DEC04 Page 1 of 2 AMtNU UPt I t; U-UU11W ENDORSEMENT: 6-1 Agency information: Please mail all inquiries to: Jeffrey L Bouder Insurance 8402 (717) 776-4051 Infinity Value Added 19 South High St Newville, PA 17241 Please fax all inquiries to: ANY LOSS UNDER PART E IS PAYABLE TO NAMED INSURED AND LOSS PAYEE: LOSS PAYEE ADDITIONAL INTEREST Veh # Add€int # Name Veh # Addlint # Name 1 2 Fifth Third Bank PO Box 598 Amelia OH 45102 Disclosure of the dollar amounts of all surcharges and each discount, as mandated by Pennsylvania statute or regulation, are listed below: DISCOUNTS / SURCHARGE DISCLOSURE DISCOUNTS Description: Amount: Applies to: Description: Amount: Applies to: Anti-tltc#t Dc\'ICC Discount 9.89 1.2 PIFli4lulti-CfIG'1'1o]ncowllCl' i 18.7[) NIA Airbag Discount (2) -17.57 1. 2. 3 Airbag Discount (1) -3.50 2 Passive Resimiut -2.52 3 AAA -15.53 3.1 Marko Factor -16,44 3.1 Limited Toil -216.35 NIA StJl2CI-IARCFS Description: Amount: Applies to: I Description: Amount: Applies to: VIOLATIONS ------- Drv # Violation: Violation Date: Drv # Violation Violation Date I Violation PI•CI1141M Surcharge: S 0.00 TOR-r01Y11ON: Limited Tort Page 2 of 2 I/ Infinifiy Value Added 5205 N. O'Connor Blvd., Suite 700 Irving, TX 75039 Underwritten by: Leader Preferred Insurance Company, 1400 Provident Tower, One E 4th St, Cincinnati, OH 45202 Customer Service: (877) 953-2337 Claims Service: (800) 334-1661 Pennsylvania Amendatory Endorsement ...ri.'.. .- -.,g?_ ,..< ?, ..n ;].• ..:yiif:,m::._: :w?:a_FSpc'_°.x'5i ?tfna : =:". .r5ti3S»,+s ...1, ?r.? _ ,?::?: : ?,x:-=r•:?(?r 'r y?/?? -_ .?.. -?. •? ,Jr1' le•. ;7D:= ` ?a- - ?f•°ir.??ti/?5a=?k3;aate?t=?_: r3tbl:. il.:a ?-~~-•tifi?...? :. auL:wlt... ,...? «.. L ....•...._r'.-. ::`::?..:.. is^:lt.-v..__...:...ri. .. ._. ..........:.... ...... ..... 137-14938-5412-001 07101/2007 12:01 a.m. if"..:?`+,?.4 '?- ?:.-? `• s?^:Tx;! ??; . r_1:.;;-,.?:3::u",.?:?E'ii--°i4==;L?;r?i•:?:?:,r_ -:.-Nl'111>vtC Mowry, Donna J _: t 116 W. Butler St. Mowry, Donna Mount Holly Springs, PA 17065 This policy change incepts at 12;01 a.m. on the Amend Date liste at the bottom of this form. No changes will be effective prior to tt Your Pennsylvania Value Added Personal Auto Police is ainaidcd as Follows: 1. Part 13 - first Party Benefits Coverage A. Exclusions - Part 13 Only Exclusions S. - Plcasc delete the second Sclltcllec of the exclusion. 11. Parr C, - Uninsured Motorist Coverage A. E\CILISions - Part C Only Plcasc delete Exclusion 4. and rcplacc with the following exclusion: 4. For bodily injury SLIStauncd by a driver of the insured an to who is not listed as a driver on the Declarations Page of this policy of the Insured anlo was m do available for the regular and frcciucni use of that driver. 13. I..iinits of Liability - Part C Only Add the following slalcmcnl: Part As a part of our clainns handling procedures, we may use sofuvare that is designed to evaluatc bodily injury tinder ('- Uninsured Motorist Covcra?,c. C. Arbitration Delete this section complctcly. Ill. Part D - Underinsured Motorist Coverage A. Exclusions - Part D - Only Please clefetc Exclusion 4. and replace with the following exclusion: 4. For bodily injury sustained by a driver of the insured auto who is not listed as a driver on the Declarations Page of this policy oi'the insured auto was made available I'or the regular and frequent use of that driver. B. 1. imils of Liability - Peu-t D Only Add the following statement. Part As a part orour claims handling procedures, eve may use software that is designed to evaluatc bodily Injury under tJ - UnderinStlred Motorist Coverage. Delete this section completely. Page 1 of 2 INSURED COPY FORM 13752AE101 AMEND DATE: 01/01/2007 ENDORSEMENT: 6-1 IV Part E _ Coverage for Damaoc to the Insured Auto A. ExeItIS"sons - Part E Only Please delete Exclusion 23 from this section. V.Part F - General Provisions A. Arbilrali0n rm the first paragraph of the Arbitration Section and replace with tine follo?? Delete u red Uninsured I f we and an insured person do not agree whether the insured person is legally person entitled to recover damages, Or if ciCher recoverab Party disagrees as to the amount of damages tMOtoPist Coverage dncnt tile tmaitcrmaybe under Part arbitrated, Motorist Coverage or Part D Undcrm and replace Loss Payable Clause Delete the entire Loss Payable Clause with tlne following: mage due undcithis policy he iter ?r g i oftle loss YO`_ interest. At is how nc lobe „ payee if one At otn discretion nve may pay loss or da e play also pay Joss, or damage due under this policy acco'din? 111C11ts according to those interests. Ii Declarations Page at time of loss. \Ve may make separate pay holdrreloss payee_tlende , or a(lditsonal ii sured for any loss We will not pay for any loss ed bye aversion, embezz .acting on Four behalf: in addition pay where frtuil, misrcprescntation, omission. concealment or intentional damage has been committedy or at t nc 1'son, resident, or rel tive. direction ofan insured Pc IC The loss Payee must notify is of tiny known change of o"1-ncr,hip or ilncrc*,ise in the risk. If it (10c5 nqt, nvlil not be cntitlc(f to any paynncnt un(Icr this clause. et(tIle ' loss payee's under the policy. If that is the case, nr' ?c s right to rccovcr the full amount of its We may pay the loss Pay cc undo} ?t1 nst cot This will not t Ffc g cla docwllcnts i ? arc pay arc then subrogated to its it hts , s im.l'he loss payee muss assign us its intctcst. 'File loss payee must transfer to tts all suppgrtin the balance due to the loss Payee on tine vehicle. P aye e be cltitic(i toEcovc ?ge'a'nd benefitst feat r(ihan C.bvcrage and pttyntcnts to the loss Ptl no event shall in accordance with all exclusions contained in this policy. In those applicable to you ()rally insured person. . Ile The (Ieductible amount applicable to losses le onttheloss payee y pion dcr Pa for - Coverage e f for Damage to The Insured Auto shall be the (Ic(lucubloam Page 2 of 2 MIMI Your Pennsylvania Value Added Personal Auto Policy Underwritten by: LEADER PREFERRED INSURANCE COMPANY WARNING: 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 material hereto commits a fraudulent misleading, information concerning any fact insurance act, which is a crime and subjects such person to criminal and civil nPnalties. -- Administrative Office: Texas 75039 5205 N. O'Connor Blvd. Suite 700, Irving, Home office,. 580 Walnut Street, Cincinnati, OH 45202 MEMBER OF INFINITY PROPERTY & CASUALTY CORPORATION Form NO. 13752PVA01 INDEX AGREEMENT (pages2-4) Policy Agreement Your Duties in Case of Accident or Loss Definitions Used Throughout This Policy PART A - LIABILITY COVERAGE (pages 4 - 6) Insuring Agreement Additional Definition Additional Benefits Exclusions Limits of Liability Federal Tort Claims Act Exclusion Conformity With State Financial Responsibility Laws Out of State Insurance Otherinsurance PART B- FIRST PARTY BENEFITS COVERAGE {pages 7 - 9) Insuring Agreement Additional Definitions Basic First Party Benefit Added First Party Benefits Combination First Party Benefits Extraordinary Medical Benefits Exclusions Limits of Liability Priorities of Policies Non-Duplication of Benefits General Provisions PART C - UNINSURED MOTORIST COVERAGE (pages 9 -13) Insuring Agreement Additional Definitions Exclusions Limits of Liability Otherlnsurance Arbitration General Provisions PART D - UNDERINSURED (pages 13 - 17) Insuring Agreement Additional Definitions Exclusions Limits of Liability Other Insurance Arbitration General Provisions MOTORIST COVERAGE Form No. 13752PVA01 PART E - COVERAGE FOR DAMAGE TO THE INSURED AUTO (pages 17 - 21) Insuring Agreement Additional Definitions Exclusions Limits of Liability Appraisal Payment of Loss Proof of Loss Other Insurance No Benefit to Bailee Additional Payments Car Storage Coverage Towing and Labor Coverage Custom or Additional Equipment Coverage Rental Reimbursement Coverage PART F - GENERAL PROVISIONS (pages 21 - 25) Policy Period and Territory Premium Changes Coverage Changes Premium Payment cancellation and Nonrenewal Limitations on Agent Authority Arbitration Two or More Auto Policies Suits Against Us Transfer of Your Interest in This Policy Bankruptcy Our Recovery Rights Loss Payable Clause Punitive or Exemplary Damages Terms of Policy Conformed to Statutes Fraud and Misrepresentation Pollution Exclusion Rescission Structured Settlements Limited Tort Alternative Information Notice Excluded Drivers ACCIDENTAL DEATH BENEFIT ENDORSEMENT LIMITED COMPREHENSIVE COVERAGE NAMED DRIVER NON-OWNER COVERAGE LESSOR LIABILITY ENDORSEMENT PENNSYLVANIA SURCHARGE DISCLOSURE STATEMENT Page 1 POLICY AGREEMENT This Personal Auto Policy is a binding contract between you and us. The contract includes the Declarations Page, endorsements, the application, the Personal Auto Policy, and all attachments. If you pay your premium payment, we will insure you subject to the terms of this pblicy. The Declarations Page shows a premium for each type of coverage purchased. The selected coverages in this policy apply only to occurrences while the policy is in force. YOUR DUTIES IN CASE OF ACCIDENT OR LOSS In case of an auto accident or loss, you or any person claiming coverage under this policy must: 1. Notify us promptly. You or someone for you must notify us within thirty (30) days, or when practicable. You must call our claims office during business hours or our Claims Hotline, available 24 hours a day, seven days a week. This notice must give the time, place, and circumstances of the accident or loss- Such notice must also give the license plate numbers of the vehicles involved, and the names and addresses of injured persons and witnesses. YOUR FAILURE TO PROMPTLY REPORT A LOSS OR ACCIDENT TO US JEOPARDIZES YOUR COVERAGE UNDER THIS POLICY. 2. Cooperate with us in any matter concerning a claim or suit. 3. Submit to physical examination at our expense, by doctors we select, as often as we may require, and authorize us to obtain your medical and other records. 4_ Provide any written proof of loss under an oath that we require. 5. Not admit any fault, assume any obligation, nor agree to incur any expense concerning any claim or accident. 6. Attend hearings and trials as a court or we may require. 7. Send us promptly any legal papers received to any claim or suit. 8. Submit to statements or examinations under an oath and subscribe to the same as we may require. 9_ Allow us to take signed or recorded statements when and as often as we may require. We may examine any insured person under an oath, while not in the presence of any other insured person. This examination may be about any matter relating to this insurance or the claim, including an insured person's books and records. In case of the examination, an insured person must sign their answers. A person claiming Uninsured or Underinsured Motorist Coverage must contact the police within forty-eight (48) hours, or when practicable after an accident. This applies if a hit-and-run driver is involved. They must promptly send us copies of any legal papers in case of a suit. A person claiming coverage for property damage must take reasonable steps after the accident to protect the property from further loss. A person claiming coverage for loss or damage to the insured auto must do the same. We will pay reasonable expenses that are incurred for that protection. In case of any theft or vandalism of the insured auto, you must promptly file a written report with the appropriate law enforcement agency. You must also allow us to inspect and appraise the damaged property before Its repair or disposal. A person seeking Extraordinary Medical Benefits Coverage must submit conclusive proof when required by us, This proof must show at least $100,000 of incurred medical expense, This must be because of any one accident by an insured seeking coverage under Extraordinary Medical Benefits. IF YOU FAIL TO COMPLY WITH ANY OR ALL OF THE LISTED CONDITIONS, WE MAY REFUSE TO EXTEND. TO YOU ANY PROTECTION UNDER THIS POLICY FOR THE ACCIDENT OR LOSS. DEFINITIONS USED THROUGHOUT THIS POLICY Unless defined differently elsewhere in this policy, the words and phrases listed below shall have the following meanings and shall appear in bold print: 1. "Accident" means a sudden, unexpected, and unintended event causing bodily injury or property damage, arising out of the ownership, maintenance, or use of an auto. Coverage under this policy shall not apply if the insured intended the accident or its consequences or could have expected them from the viewpoint of the insured. All bodily injury and property damage arising out of continuous or repeated exposure to the same general conditions shall be considered as arising out of one accident. 2, "Actual cash value" means market value at the time of the loss based upon vehicle mileage, age, condition, original optional equipment, and comparable vehicles available for sale within a reasonable geographic radius as documented in an electronic database of publications and dealerships, less depreciation andlor betterment. 3. "Additional auto" means an auto that you become the owner of, and that you acquire or purchase during the policy period. For an auto to qualify as an additional auto under this policy, we must insure all autos you own or lease for a term of at least six months. To qualify as an additional auto under this policy, any newly acquired auto must be an acceptable risk to us under our underwriting guidelines. 4. "Application" means the form entitled Application for Insurance that contains statements, coverage options, and agreements that form a part of this policy. 5. "Auto" means a licensed and registered motorized four-wheel land vehicle of the private passenger type intended for use on public roads. An auto includes a pickup, van, or sport utility vehicle, with a load capacity of 1,500 lbs. or less. Further, such an auto is not used in any business other than farming or ranching. An auto does not include motorcycles, midget cars, golf carts, tractors, or farm machinery. In addition, an auto does not include any vehicle operated on rails or crawler treads, or any vehicle used as a home or premises. 6. "Auto business" means the business of selling, leasing, repairing, servicing, delivering, testing, road testing, towing, storing, or parking vehicles or trailers. Form No. 13752PVA01 Page 2 injury to the body, including 21. "Rental vehicle" means an auto you rent or hire for "Bodily injury" means inj ment of a term of 14 days or less in one 30-day period while sickness or disease, resulting in impair such auto is in your custody or is being operated by physical condition, including death resulting from It, you or a relative. An auto you rent or hire for more vehicle which is caused solely by an accident covered than 14 days in one 30-day period under this policy and occurring white the policy is in regularly available to you. You may rent or hire force. rental vehicles only from an entity a slicen tate jeddv. to conduct such business under appl S. "Business" means trade, profession or occupation. Business also means courses of employment, job 22. "Replacement auto"means an auto thatyou become or commercial use of any kind. Business shall not the owner of and that you acquire or purchase the policy period to replace of an auto include the use of the Insured auto to carry tools during and supplies between your home and job site. described on the Declarations Page because of: a. the ending of your ownership interest in an auto , or g, "Crime" means any felony and includes any attempt that is described on the Declarations Page deterioration, or , to elude law enforcement personnel. b, total loss mechanical of a listed breakdown auto theft, as shown on the te document you Declarations Page, rendering it permanently 10. "Declarations Page" es ofhcove age you have inoperable, To qualify as a replacement auto selected, the limit for the coverage, the cost for the under this policy, any newly acquired auto must receive from us listing the e ty typ be an acceptable risk to us under our coverage, cy, thibtypeshof coverage for each such underwriting guidelines. autoby, this and policy, other the information applicable to this policy. 23. "Resident" means a person living in your 11. household, other than you or a relative. You must list any resident on the application or have them "Minimum statutory limits means the minimum endorsed on the policy before p loss. policy limits for vehicle liability coverage required by resulting in death, the law of the State of Pennsylvania. 24. "Serious injury" means an injury 12, "Non-economic loss" means pain, suffering, and serious impairment of a bodily function, or serious and permanent disfigurement. other non-monetary detriment. 25: "State" means the District of Columbia and any state 13. "Non-owned o means erm sauto usd s on ofthebowner of the United States of America. permission with the expressss or r implied and not awned by, furnished, or available for the 26. "Substitute auto" means an auto you use temporarily while an auto described on the regular use of you, a relative, or a resident. Anon- Declarations Page is not available for use. Use of owned auto does not include a substitute auto. the substitute auto must result directly from means to be in, upon, entering into, or servicing, repair, theft, destruction, or malfunction of 14. "Occupying" the auto described on the Declarations Page. A exiting from. substitute auto does not include any vehicle that ent owns or tha 15. "Owned" mean t hold l of the vehi le that available to you, a resident o a relativet is regularly vehicle, to have legal possession is subject to a conditional sale agreement or " means: any auto insured auto" n the Declarations Page; mortgage, or to have legal possession of the vehicle 27 "The that was leased to that person. b. any trailer you own while it is attached to the insured auto. The Declarations Page must list any trailer and you must pay a premium for 10. "Owner" means any person who, with respect e a coverage under Part E -Coverage for Damage vehicle, holds legal tale to the vehicle, has legal to the Insured Auto t this policy. possession of the vehicle that is subject a c. a replacement auto. You must notify us within conditional sale agreement or mortgage, that has legal person. gal 30 days of your acquisition of the replacement possession of the vehicle that is leased to th be considered the insured auto. 17. "Premium payment" means the actual receipt of auto for it to The replacement auto will have the broadest cash funds by us. coverage we now provide for the auto being damage to replaced only if you notify us within the 30-day 18. tProperty damage" means physical period following the acquisition of the replacement auto- However, this does not tangible property, including destruction or toss e its apply to coverage under Part E -- Coverage for use, which Is caused solely in an accident covered Damage to the Insured Auto. If the auto being under this policy and occurring while the policy is in replaced has coverage under Part E - Coverage force. for Damage to the Insured Auto you must notify 19. "Racing" means participating in any race, speed, us within 5 days of the date you become owner includes pr of the replacement auto or you take physical demolition, stunt, oreparation for tfine the contest contest or or activity. activity. Racing possession of the replacement auto, whichever first. You must notify us so to continue 20. "Relative" means any person related to you by blood, comthises es first. coverage t. for the replacement auto. ti the marriage, or adoption, including a ward a foster under Part r we will add this coverage for the living, who lives in your household, even if temporarily auto re being placement rautoeplaced does effective not after have coverage you ask us to living elsewhere. Relative includes a minor under re so. All insurance for the auto being replaced list do them your en n dorsed on guardianship thevo lives policy you before a ?i ati losson ooa have ends when you take delivery u the replacement thust any relati ve on the app ' auto. . Page 3 Form No.13752PVAOt d. an additional auto. You must notify us within 7 days of your acquisition of the additional auto for it to be considered the insured auto. These provisions apply only if on the date you acquire the additional auto, we insure all vehjcles you own and you ask us to insure the additional auto within 7 days of the date you acquire it. The additional auto will have the broadest coverage, we now provide on your policy only if you notify us within the 7-day period following the acquisition of the additional auto. However, this does not apply to coverage under Part E - Coverage for Damage to the Insured Auto. If any auto listed on the Declarations Page has coverage under Part E - Coverage for Damage to the Insured Auto you must notify us within 4 days of the date you become owner of the additional auto or you take physical possession of the additional auto, whichever comes first. You must notify us so to continue coverage under Part E for the additional auto. If no auto listed on, the Declarations Page has coverage under Part E, we will add this coverage for the additional auto effective after you ask us to do so. e. a substitute auto. A substitute auto will have the same coverage as the auto that it temporarily replaces. For purposes of this policy, any auto leased by you under a written agreement for a continuous period of at least six (6) months, we will consider as owned by you. 28. "Total loss" means: a. theft of the vehicle if the vehicle is not recovered within thirty (30) days; or b. any otherloss to the vehicle that is payable under Part E - Coverage for Damage to the Insured Auto, if the cost to repair the damage, when added to the salvage value, exceeds the actual cash value of the vehicle at the time of the loss. 29. "Trailer" means a device or vehicle which is not self-propelled and is designed to be towed by an auto, Including a farm wagon or farm implement, and while being towed by an auto. A mobile home, travel trailer, or any vehicle that can be lived in or is self-propelled, is not a trailer. 30. "Vehicle" means a surface transportation device used for conveying goods, passengers, or equipment. 31. "We," "us," and "bur" mean the company shown on the Declarations Page. 32. "You" and "your' mean the named insured shown on the Declarations Page and includes your spouse, if living in the same household. PART A - LIABILITY COVERAGE INSURING AGREEMENT If the Declarations Page shows a premium.charged for this coverage, we will pay damages for bodily injury and property damage for which an insured person is legally liable because of an accident. This shall be up to the policy limits stated on the Declarations Page. We will not cover punitive or exemplary damages. We will settle or defend, as we consider appropriate, any claim or action that the policy covers. Our duty to settle or defend ends when our limit of liability for this coverage has been exhausted by payment of judgment or settlement. We have no duty to settle or defend any claim or action that the policy does not cover. ADDITIONAL DEFINITION USED IN PART A ONLY + As used in this part, "insured person" means: 1. You, a relative or a resident; or 2. A person using the insured auto with your express or implied permission and within the scope of your permission. As used in this Part "insured person" means with respect to a non-owned auto or a rental vehicle, you, a relative or a resident. ADDITIONAL BENEFITS - PART A ONLY When we defend an insured person under this Part, we will provide the following benefits: 1. We will pay costs we incur to investigate the accident. 2. We will pay costs we incur to arrange for the settlement of any claim or action. 3. As we deem appropriate, we will defend the Insured person, hire and pay a lawyer, and pay all defense costs. We have no duty to defend any claim or action not covered under this policy. 4. As we deem appropriate, we will pay costs we incur to investigate and settle any claim or action. 5. We will pay the interest that accrues against an insured person and before we have offered to pay or deposited into court sums that are not more than our limit of liability, on damages awarded in a suit we defend. 6. We will pay premiums on appeal and attachment bonds if required in an action we defend. We will neither apply for nor obtain bonds, nor pay the premium on any bond that exceeds our limit of liability. 7. We will pay up to $250 for the cost of all bail bonds for an insured person resulting from any one accident. We will not apply for nor obtain any bail bond. 8. We will reimburse an insured person for lost wages, up to $50 a day, but not other income, when we ask that insured person to help us investigate or defend any claim or action. 9. We will reimburse any other reasonable costs an insured person incurs at our request. To receive an additional benefit under this section, you must submit a claim and provide proof of entitlement thereto. EXCLUSIONS - PART A ONLY READ THE FOLLOWING EXCLUSIONS CAREFULLY, COVERAGE WILL NOT BE AFFORDED UNDER THIS PART FOR ANY OF THE EXCLUSIONS LISTED BELOW. We do not cover: 1. Bodily injury or property damage that results from nuclear reactions, radiation, or fallout. 2. Bodily injury or property damage covered by a nuclear energy liability policy, even if the limits of that policy are exhausted. Form No. 13752PVA01 Page 4 insured 3 intentionally injury by or at property the direct on of s an is caused person. Coverage under this Part shall not apply if the insured either intended the accident or its consequences or could have expected them from the viewpoint of the insured. 4. the dimaintenance or property of an auto without from owner's express or implied permission. 5. Bodily injury or property damage that results from the maintenance or use of an auto outside the scope of the owner's express or implied permission. 6. Liability for any bodily in ury or lroperty damage assumed by or impose on an insured person under any agreement, contract or bailment. 7. Bodily injury to an insured person's employee that arises during employment. Unless coverage is required under workers' compensation, disability benefits, or similar laws, we will provide coverage for an insured person's domestic employee injured in an accident in the course of employment. 8. Bodily injury to an insured person's co-worker occurring during employment if such injury arises out of the insured person's use of a vehicle in any business. or course of 9 employmen injury if benefits occurring are during payable the under a workers' t compensation law or similar law. 10. Bodily injury or rma?nenandamage e, m or g use a of results a vehic e while used to transport persons or property for a fee or compensation. This exclusion does not apply to shared-expense car pools. 11. Property damage to property owned or being transported by an insured person. 12. Bodily injury or property damage arising out of the operation of equipment or machinery not listed on the Declarations Page. 13. Damage ge of, except a home or rents, or has char garage, including loss of its use. 14. Bodily Injury or property damage resulting from the ownership, maintenance, or use of any vehicle other than the insured auto, which is owned by, furnished or available for the regular use of you, a relative, or a resident. 15. thBodily e ownership, maintenance damage resulting from auto by any person who is a regular user of the insured auto, but is not listed on the Declarations Page prior to the loss. This exclusion applies to amounts of coverage above the minimum statutory limits. 16. insured Bodily injury or property damage aring out of an of any vehicle other than one with four wheels. 17. Bodily injury or property damage arising out of an insured person's ownership, maintenance, or use of any vehicle designed mainly for use off public roads. 18. Bodily injury or property damage resulting from the ownership, maintenance, or use of a vehicle in any racing event. 19. Bodily Injury or property damage that is incurred while the insured auto is leased or rented to others. 20. Bodily injury or property damage resulting from the use of a vehicle for snow removal. 21. Bodily injury or property damage caused by war (declared or undeclared), civil war, insurrection, rebellion, revolution, or riot. 22. Bodily injury or property damage sustained by an insured person while occupying any vehicle located for use or used as a residence or premises. 23. Bodily injury or property damage resulting from the ownership, maintenance, use of a vehicle or a trailer by a person while in the course and scope of employment or engaged in any business. This exclusion includes use of a vehicle for delivery of goods or services arising out of any business. The exclusion does not apply if you have declared "business use" of the insured auto and you have paid an additional premium. 24. Bodily injury or property damage resulting from an auto business. However, this exclusion does not apply to you. This is provided that the bodily Injury or property damage arises out of auto business operations conducted by someone other than you, a relative or resident. 25. Bodily injury or property damage incurred while any vehicle is used for towing a trailer not designed for use with that vehicle, and which is owned or rented by an insured person, and not listed on the Declarations Page. from veproperty hicle by a p eson resulting or p 26 Bodily se not rany or the u rso s specifically excluded by endorsement. 27. Bodily injury or property damage arising out of the ownership, maintenance, use, loading or unloading of any haulaway, tank truck, or tank trailer when used with a vehicle that is not listed on the Declarations Page, which is owned, hired or held for sale by the insured person. 28. Benefits for bodily injury or property damage that are payable under the "No Fault Laws" of the following states: Arkansas, Delaware, Washington, D.C., Florida, Hawaii, Kansas, Kentucky, Maryland, Massachusetts, Michigan, Minnesota, New York, North Dakota, Oregon, Texas, Utah, and Washington. 29. Bodily injury or property damage caused by a vehicle driven by a person: a. Under the minimum age to obtain a license to operate a vehicle in the state in which the vehicle is licensed, b. Under fifteen (15) years of age, c. Who has had their driving privileges rescinded by either license suspension or revocation or d. Who does not possess a valid drivers license. Form No.13752PVAOI Page 5 30. Bodil be ninjury eto the owner of a non-owned d by o driven by an insured person 31. Bodily he ownership, maintenance, or use of a velhting i le with a load capacity more than 1,500 pounds. 32. Coverage under this Part does not extend to: a, any auto or trailer that is rented for any business purposes; or b. any auto or trailer that is rented for a period in excess of 14 consecutive days. LIMITS OF LIABILITY - PART A ONLY As to any insured person, the limits of liability shown on the Declarations Page shall apply. We will pay these limits of liability as follows: 1. The bodily injury limit for "each person" is the most we will pay for all damages, including fdamages derivative claims, resulting bodily injury sustained by one person in one accident. Derivative claims include claims for care, loss of services, and loss of consortium. Damages for derivative claims will be payable only under the same "each person" limit of liability as the bodily injury from which they derive. 2. The bodily will pay for limit all for "each damages resultng is froh most we from bodily injury sustained by more than one person in one accident. It includes all damages for care, medical expenses,. loss of services, loss of society, comfort, companionship, and loss of consortium. In addition, it includes any other damages in any way arising out of, or deriving from such bodily injury. 3. The property damage limit for "each accident" is the most we will pay for all damages to property, including loss of its use, in one accident. We will not pay bodily injury or property damage in any amount exceeding the minimum statutory limits of the state where the accident occurs arising out of the use of the insured auto while the Insured person Is in the commission of a crime. Regardless of the limits of liability shown on the Declarations Page or elsewhere in this policy, the limits for bodily Injury and property damage liability afforded by this policy to an insured person other than: you; or a relative or a resident of your household, shall not exceed those amounts necessary to satisfy the minimum statutory limits of the financial responsibility law of the state in which the bodily injury or property damage policy was written. This is the maximum we will pay regardless of the number of premiums or autos listed on the Declarations Page, Insured persons, claims, claimants, policies, or vehicles involved in the accident. Any amount paid or payable under this coverage to or for an insured person will be reduced by any payment made to that person under Part C -- Uninsured Motorist Coverage or Part D - Underinsured Motorist Coverage of this policy. An auto and attached trailer are considered one auto. Therefore, our limits of liability will not be increased for any accident involving an auto which has an attached trailer. FEDERAL TORT CLAIMS ACT EXCLUSION The following are not insured person(s) under Part A of the policy: t. The United States of America or any federal agency. 2. Any person for bodily injury or property damage resulting from a person acting in the scope of employment for the United States of America or any federal agency when the provisions of the Federal Tort Claims Act apply. As used herein, "federal agency" means federal agency as defined in the Federal Tort Claims Act. CONFORMITY WITH STATE FINANCIAL RESPONSIBILITY LAWS When we certify this policy as proof under a state Financial Responsibility law, it will comply with that law to the extent of the coverage and limits of liability required by that law, You agree to reimburse us for any such payment that we make under the provisions of this section of the policy. OUT OF STATE INSURANCE We will increase the policy limits to the required minimum limits of any state that requires a minimum Financial Responsibility limit for nonresidents. This shall occur if an insured person is operating an auto in that state. We will not provide any coverage under the no- fault law or any other similar law of any other state. No person is entitled to duplicate payments for the same element of loss. OTHER INSURANCE Coverage for a vehicle not listed on the Declarations Page shall be excess insurance over any other valid and collectible insurance. We will pay our proportionate share of damages and reasonable and necessary attorney fees and costs as our limit of 'liability bears to the total of all applicable liability limits. This is if a primary duty to defend exists under this policy and other applicable liability insurance exists. Coverage for newly acquired autos does not apply where there is other valid and collectible insurance. However, with respect to a person other than you, a relative or a resident, using the insured auto with your express or implied permission and within the scope of that permission, this coverage shall be excess over any other valid and collectible insurance available to the user of the insured auto. Coverage shall be excess insurance regardless of any provision of any policy available to the user which makes the other available insurance excess to any vehicle the user does not own. If you, a relative or a resident has other insurance against an accident covered by this Part, the following applies: We will not pay a greater proportion of the damages than the applicable limit of liability stated on the Declarations Page, bear to the total applicable limits of liability of all valid and collectible insurance against any such accident. Form No. 13752PVA01 Page 6 PART B - FIRST PARTY BENEFITS COVERAGE INSURING AGREEMENT We will pay the following First Party Benefits, if shown on the Declarations Page and a premium has been paid, to or for an insured person who sustains bodily injury caused by an accident arising out of the maintenance or use of a motor vehicle: 1. Medical Benefit; 2. Income Loss Benefit; 3, Funeral Benefit; and 4. Accidental Death Benefit. ADDITIONAL DEFINITIONS USED IN PART B ONLY "Insured person" as used in this Part means: 1. You, a relative or any resident; or 2. Any other person: a. While occupying the insured auto; or not b. W ashia resu t ofpan acc dent in vehicle involving the insured auto. If the insured auto is parked and unoccupied it is not a motor vehicle involved in an accident unless it was parked in a manner as to create an unreasonable risk of injury. "The insured auto" means a motor vehicle: . To which Liability 1 a specific Coverage premium e s charged; and und this policy plies and for which 2. For which you maintain First Party Benefits Coverage as required Responsbilly the Pennsylvania Motor Vehicle Financial BASIC FIRST PARTY BENEr FIT The Basic First Part y Benefit consists of a Medical Benefit, The Medical Benefit consists of coverage to provide for reasonable and necessary medical treatment and rehabilitative services. Including, but not limited to, hospital, dental, surgical, psychiatric, psychological, phcal nal licensed osteopathic, ambulance, chiropractic, and therapy, nursing services, occupational therapy, speech pathology and audiology, optometric services, medication, medical supplies and prosthetic devices, ail without limitation as to time, provided that within 18 months from the date of the accident causing injury, it is ascertainable with reasonable medical probability that -further expenses may be incurred as a result of the injury and notice of the additional expenses is provided to us. Benefits under this paragraph may include any, non-medical remedial care and treatment rendered in accordance with a recognized religious method of healing. ADDED PARTY BENEFITS The Added First Party Benefit consists of the following: Income Loss Benefit - Includes the following: a. Eighty percent of actual loss of gross income, b. Reasonable expenses actually incurred for hiring a substitute to perform self-employment services thereby mitigating loss of gross income or rnf{or hiring special help thereby enabling a pe work and mitigate the loss of gross income. Form No. 13752PVADI Income Loss does not include loss of expected income for any period following the death of an individual or expenses incurred for services performed Loss shall not not the death commence o until five dworrking days have been lost after the date of the accident. ?. Funeral Benefit - Expenses directly related to the funeral, burial, cremation, or other form of disposition of the remains of a deceased individual, incurred as a result of the death of the individual as a result of the accident and within 24 months from the date of the accident. 1 Accidental Death Benefit - A death benefit paid should bodily injury resulting from a motor vehicle accident cause death within 24 months from the date of the accident. The Accidental Death Benefit under this policy will be paid to the executor or administrator of the deceased insured person's estate. If there is no executor or administrator, benefits shall be paid to: a. The deceased insured person's surviving spouse; or b. If there is no surviving spouse, the deceased insured person's surviving children; or there c. eh cildren, to the deceased insured person's estate. COMBINATION FIRST PARTY BENEFITS If the Declarations Page indicates that Combination First Party Benefits apply, we will pay, in accordance with the Pennsylvania Motor Vehicle Financial Responsibility Law, Combination First Party Benefits instead of the Basic First Party Benefit to or for an insured person who sustains bodily injury caused by an accident arising out of the maintenance or use of a motor vehicle. Combination First Party Benefits shall be subject to a maximum total single limit of liability with individual limits for Accidental Death Benefit up to $25,000 and Funeral Benefit of $2,500. We will only pay Combination First Party Benefits for expenses or loss incurred within 3 years from the date of the accident. EXTRAORDINARY MEDICAL BENEFITS If Extraordinary Medical Benefits is shown on the Declarations Page and you have paid a premium for this coverage, we will pay the Medical Benefit, subject to the limit of liability shown on the Declarations Page, incurred by an insured person who sustains bodily injury in excess of $100,000 which is caused by an accident arising out of the maintenance or use of a motor vehicle. Regardless of whether you have purchased the Basic, Added or Combination First Party Benefit under this policy, we will pay Extraordinary Medical Benefits Coverage only after $1.00,000 has been incurred by any one insured person for medical expenses resulting from any one accident. EXCLUSIONS - PART B ONLY READ THE . COVERAGE WILLONOT BEXAFFORDED UNDERUTN S PART FOR ANY OF THE EXCLUSIONS LISTED BELOW. We do not provide First Party Benefits for bodily injury sustained by any person: 1. While intentionally causing or attempting to cause bodily injury. Page 7 2. While committing a felony. 3. While seeking to elude lawful apprehension or arrest by a law enforcement official. 4. While maintaining or using a motor vehicle knowingly converted by that person. However, this exclusion does not apply to you while using the insured auto. 5. Who, at the time of the accident: a. Is the owner of one or more registered motor vehicles and any of those motor vehicles do not have in effect the financial responsibility required by the Pennsylvania Motor Vehicle Financial Responsibility Law; or b. Is occupying a motor vehicle owned by that person for which the financial responsibility required by the Pennsylvania Motor Vehicle Financial Responsibility Law is riot in effect. 6. Who is maintaining or using a motor vehicle while located for use as a residence or premises. 7. Who is injured as a result of conduct within the course of an auto business. This exclusion does not apply if the conduct is off the business premises. 8. Who is injured as a pedestrian if the accident occurs outside of Pennsylvania. This exclusion does not apply to you, a relative or any resident while occupying: a. Any vehicle with more or less than four wheels; or b. Any vehicle designed mainly for use off public roads, except in a medical emergency. 9. When caused by or as a consequence of: a. Discharge of a nuclear weapon; b. War (declared or undeclared); c. Insurrection; or d. Rebellion or revolution. 10. When caused by a nuclear reaction, radiation, or radioactive contamination. 11- For any loss resulting from the ownership, maintenance or use of a vehicle when used by an insured person to carry persons or property for consideration or fee, including but not limited to retail or wholesale delivery of magazines, newspapers, food, or any other product. This exclusion does not apply to shared-expense car pools. 12. While occupying any vehicle located inside a facility designed for racing, for the purpose of competing in or practicing or preparing for any prearranged or organized racing, speed, demolition or stunting activity. LIMITS OF LIABILITY - PART B ONLY _ The limits shown on the Declarations Page for the First Party Benefits that apply are the most we will pay to or for each insured person as the result of any one accident. This is the most we will pay regardless of the number of claims made, vehicles or premiums shown on the Declarations Page, vehicles involved in the accident, lawsuits brought, or insurers providing First Party Benefits, The limit of liability shown on the Declarations Page for Extraordinary Medical Benefits is the most we will pay for Medical Benefits to or for each Insured person as the result of any one accident, subject to an annual limit of $50,000 for each insured person. However, the annual limit of $50,000 for each insured person does not apply to medical expense incurred within 18 months from the date the insured person incurs $100,000 of medical expense as a result of the accident. This is the most we will pay regardless of the number of claims made, vehicles or premiums shown on the Declarations Page, vehicles involved in the accident, or insurers providing First Party Benefits. Any amounts payable under Extraordinary Medical Benefits shall apply over and above any amounts available to an insured person for medical expense under Basic, Added or Combination First Party Benefits provided in accordance with the Pennsylvania Motor Vehicle Responsibility Law. If an insured person who is eligible for Extraordinary Medical Benefits is also eligible for benefits under the Catastrophic Loss Trust Fund, the total recovery under Extraordinary Medical Benefits and Catastrophic Loss Trust Fund combined shall not exceed $1,000,000. However, the total amount payable under Extraordinary Medical Benefits shall not exceed the amount shown on the Declarations Page. PRIORITIES OF POLICIES We will pay First Party Benefits in accordance with the order or priorities set forth by the Pennsylvania Motor Vehicle Financial Responsibility Law. We will not pay if there is another insurer at a higher level of priority. The First category listed below is the highest level of priority and the Fourth category listed below is the lowest level of priority. The priority order is: First: The insurer providing benefits to the Insured person as a named insured. Second: The insurer providing benefits to the insured person as a relative or a resident 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 insured person is occupying at the time of the accident. Fourth: The insurer providing benefits on any motor vehicle involved in the accident if the insured person is: 1. Not occupying a motor vehicle, and 2. Not provided First Party Benefits under any other automobile policy. In this priority, an unoccupied, parked motor vehicle is not a motor vehicle involved in an accident unless it was parked in a manner as to create an unreasonable risk of injury. if two or more policies have equal priority within the highest applicable priority level: The insurer against whom the claim is first made shall process and pay the claim as if wholly responsible. The insurer is thereafter entitled to recover contribution pro rata from any other insurer for the benefits paid and the costs of processing the claim. If contribution is sought among insurers responsible under the Fourth priority, proration shall be based on the number of involved motor vehicles. Form No. 13752P\IA01 Page 8 2. If we are the insurer against whom the claim is first made, our payment to or for an insured person will Declarat on liability Page First not exceed the Party Benefits shownllonbthe limit 3. The maximum recovery under all policies will not exceed the amount payable under the policy with highest dollar limits of benefits. NON-DUPLICATION OF BENEFITS No one will be entitled to recover duplicate payments for the same elements of loss under this or any other similar automobile insurance including self-insurance. Any amount payable under Extraordinary Medical Benefits shall be excess over any amount paid, payable or required to be provided under any workers' compensation law or similar law. GENERAL PROVISIONS Part F is amended as follows: The OUR RECOVERY RIGHTS provision does not apply to First Party Benefits. PART C - UNINSURED MOTORIST COVERAGE INSURING AGREEMENT Subject to the limits of liability, if you pay a premium for Uninsured Motorist Coverage, we will pay damages, other than punitive or exemplary damages, which an insured person is legally entitled to recover from the owner or operator of an uninsured motor vehicle because of bodily injury: 1_ Sustained by an insured person; and 2. Caused by an accident. The owner's or operator's liability for these damages must arise out of the ownership, maintenance or use of the uninsured motor vehicle. No judgment for damages arising out of a suit brought against the owner or operator of an uninsured motor vehicle is binding on us unless we: Received reasonable notice of the filing of the suit resulting in the judgment; and Had a reasonable opportunity to protect our interest in the suit. ADDITIONAL DEFINITIONS USED IN PART C ONLY "Insured person" as used in this Part means: 1. You, a relative or any resident; 2. Any other person occupying the insured auto with the permission of the owner; or 3. Any person for damages that person is entitled to recover because of bodily injury to which this coverage applies sustained by a person described in 1. or 2. above. "Uninsured motor vehicle" means a land motor vehicle or trailer of any type: Form No. 13752PVA41 1. To which no Bodily Injury Liability bond or policy applies at the time of the accident. 2. Which is a hit-and-run whose operator or owner cannot be identified and which hits, or causes an accident resulting in bodily injury without hitting: a. You, a relative or any resident; b. A motor vehicle which you, a relative or any resident are occupying; or c. The insured auto. If there Is no contact with the hit-and-run motor vehicle, the facts of the accident must be proved. 3. Which is an unidentified motor vehicle that causes an accident resulting in injury provided the accident is reported to the police or proper governmental authority within 48 hours, or as soon thereafter as is practical; and you or your legal representative notify us within 30 days, or as soon as practical thereafter, that you have a legal action arising out of the accident. 4. To applies c at theme of the Injury Liability but the bonding or insuring company: a. Denies coverage; or b. Is or becomes: L Insolvent; or ii. Involved in insolvency proceedings. However, uninsured motor vehicle does not include any vehicle or equipment: 1. Owned by, leased or furnished for the regular use of you or any insured person. 2. Owned or operated by a self-insurer under any applicable motor vehicle law. 3. Owned by any governmental unit or agency. 4. Operated on rails or crawler treads. 5. Designed mainly for use off public roads while not on public roads. 6. While located for use as a residence or premises. 7. Which qualifies as the insured auto under this policy. EXCLUSIONS - PART C ONLY READ THE FOLLOWING EXCLUSIONS CAREFULLY. COVERAGE ANY N B AFFORDED UNDER LISTED PART FOR NY OF THE EXXC D BELOW. We do not provide Uninsured Motorist Coverage: For bodily Injury sustained by any person: a. If that person or their legal representative settles the bodily injury claim without our consent. b. For any loss resulting from the ownership, maintenance or use of a vehicle when used by an insured person to carry persons or property for consideration or fee, including but not limited to retail or wholesale delivery of magazines, newspapers, food, or any other product. This exclusion does not apply to shared-expense car pools. c. Using a vehicle without permission of the owner to use the vehicle, or using the vehicle outside of the scope of permission of the owner. Page 9 Occupying the insured auto while it is being operated by someone without the permission of the owner, or is using the insured auto outside of the scope of permission of the owner. 2. For non-economic loss sustained by any person to whom the Limited Tort Alternative applies, resulting from bodily injury caused by an accident involving an uninsured motor vehicle, unless the bodily injury sustained is a serious injury. This exclusion does not apply: a. If the owner or operator of the uninsured motor vehicle: I. Is convicted, or accepts Accelerated Rehabilitative Disposition, for driving under the influence of alcohol or a controlled substance in that accident; ii. Is operating a motor vehicle registered in another state; or iii. Intends to injure himself or another person, provided person tionally injure himself or another anothere not intentionally merely because his act or failure to act is intentional or done with his realization that it creates a grave risk of injury if the act or omission causing the injury is for the purpose of averting bodily harm to himself or another person. b. If that person is injured while occupying a motor vehicle insured under a commercial motor vehicle insurance policy. 3., For damage caused intentionally by or at the direction of an insured person, 4. For loss to the insured auto when made available for the regular or frequent use of a driver not listed on the Declarations Page of this policy. 5. For bodily injury or property damage resulting from the ownership, maintenance, or use of: a. Any veh icle with more or less than four wheels; b. Any vehicle designed mainly for use off public roads, except In a medical emergency; c. Any vehicle, other than the insured auto, which is owned by you or available for your regular use; or d. Any vehicle, other than the insured auto, which is owned by a relative, a resident, or regularly used by a relative or a resident or members of their immediate families. 6. For property damage, sustained by any person while occupying or when struck by any motor vehicle owned by you, a relative or any resident which is not insured for this coverage under this policy. 7. For property damage to a trailer of any type, any motor vehicle owned by you to which Collision Coverage applies under this policy, or any other vehicle to the extent that there is valid thand at collectible Collision Coverage applicable damage under any other policy. 8. For punitive or exemplary damages awarded as a punishment or deterrent. 9. For any loss sustained while a vehicle is used to transport nursery or school children, migrant workers, or hotellmotel guests. This exclusion does not apply to your children or children engaged in a car pool arrangement with you. 10. While the insured auto is used in, or in preparation for, any race, speed or performance contest, or while the insured auto is located inside a facility designed for such events. 11. To benefit any insurer or self-insurer under any of the following or similar law: a. Workers' compensation law; or b. Disability benefits law. LIMITS OF LIABILITY - PART C ONLY STACKED UNINSURED MOTORIST COVERAGE if Stacked Uninsured Motorist Coverage is shown on the Declarations Page, the following provisions apply: 1. Except as provided in paragraph 2., the limit of liability shown on the Declarations Page for Uninsured Motorist Coverage is our maximum limit of liability for all damages resulting from any one accident. This is the most we will pay regardless of the number of: a. Insured persons; b. Claims made; c. Vehicles or premiums shown on the Declarations Page; or d. Vehicles involved in the accident. 2. If bodily injury is sustained in an accident by you, a relative or any resident, our maximum limit of liability for all damages in any such accident is the sum of the limits of liability for Uninsured Motorist Coverage shown on the Declarations Page applicable to "each vehicle" on the policy. Subject to this maximum limit of liability for all damages, the most we will pay for bodily injury sustained by an insured person other than you, a relative or any resident is the limit of liability shown on the Declarations Page applicable to the vehicle the insured person was occupying at the time of the accident. This is the most we will pay regardless of the number of: a. Insured persons; b. Claims made; c. Vehicles or premiums shown on the Declarations Page; or d. Vehicles involved in the accident. 3. Any amounts otherwise payable for damages under this coverage shall be reduced by all sums paid because of the bodily injury by or on behalf of persons or organizations that may be legally responsible. This includes all sums paid under Part A and Part D of this policy. 4. Any payment under this coverage shall be reduced by any amount that person is entitled to recover under Part A or Part D of this policy. 5. No one will be entitled to receive duplicate payments for the same elements of loss. 6. If an insured person and an uninsured motorist are jointly to recover liable damages augnder both Part A and Part tC of this policy. 7. If an uninsured motorist and an underinsured motorist are jointly liable for damages, no person shall be entitled to recover damages under both Part C and Part D of this policy. Form No. 13752PVA01 Page 10 UNSTACKED UNINSURED MOTORIST COVERAGE If Unstacked Uninsured Motorist Coverage 'is own on the Declarations Page, the following provisions apply; 1 elimit of botrist Coverage Is l our i maxmau for Uninsured M m limit of liability for all damages resulting from any one accident. This is the most we will pay regardless of the number of: a. Insured persons; b. Claims made; c. Vehicles or premiums shown on the Declarations Page; or d. Vehicles involved in the accident. 2. Any amounts otherwise payable for damages under this coverage shall be reduced by all sums paid because of the bodily injury by or on behalf of persons or organizations that may be legally responsible. This includes all sums paid under Part A and Part D of this policy. 3. Any payment under this coverage shall be reduced by any amount that person is entitled to recover under Part A or Part D of this policy. 4. No one will be entitled to receive duplicate payments for the same elements of loss. 5. If an insured person and an uninsured motorist are jointly liable for damages, no person shall be entitled to recover damages under both Part A and Part C of this policy. 6. If an uninsured motorist and an underinsured motorist are jointly liable for damages, no person shall be entitled to recover damages under both Part C and Part D of this policy. SPLIT STACKED UNINSURED MOTORIST COVERAGE. LIMITS if split Stacked Uninsured Motorist coverage limits owing shown on the Declarations Page, provisions apply: 1. If bodily injury is sustained in an accident by you, a relative or any resident: a. Our maximum limit of liability for all damages, including damages for care, loss of services, or death, arising out of bodily injury sustained by any one person in any such accident is the sum of the limits shown on the Declarations Page for "each person" for Uninsured Motorist Coverage applicable to each vehicle on the policy. b. Subject to the maximum limit for "each person" described in 1.a. above, our maximum limit of liability for all damages arising out of bodily injury resulting from any one accident is the sum of the limits of liability shown on the Declarations Page for "each accident" for Uninsured Motorist Coverage applicable to each vehicle on the policy. c. Subject to the maximum limits of liability set forth in 1 _a. and 1.b. above, the most we will pay for bodily injury sustained in such accident by an insured person other than you, a relative or any resident is the "each person" or "each accident" limit of liability shown on the Declarations Page applicable to the vehicle that the insured person was occupying at the time of the accident. Form No. 13752PVA01 The maximum limit of liability is the most we will pay regardless of the number of: i. Insured persons; ii. Claims made; iii. Vehicles or premiums shown on the Declarations Page; or iv. Vehicles involved in the accident. if bodily injury is sustained by any insured person other than you, a relative or any resident in an accident in which neither you nor a relative nor any resident sustains bodily injury, the limit of liability shown on the Declarations Page for "each person" for Uninsured Motorist Coverage is our maximum limit of liability for all damages, including damages for care, loss of services, or death, arising out of bodily injury sustained by any one person in any one accident. Subject to this limit for "each person," the limit of liability shown on the Declarations Page for "each accident" for Uninsured Motorist Coverage is our maximum limit of liability for all damages for bodily injury resulting from any one accident. This is the most we will pay regardless of the number of: a. Insured persons; b. Claims made; c. Vehicles or premiums shown on the Declarations Page; or d. Vehicles involved in the accident. 3. Any amounts otherwise payable for damages under this coverage shall be reduced by all sums paid because of the bodily injury by or on behalf of persons or organizations that may be legally responsible. This includes all sums paid under Part A and Part D of this policy- 4. Any payment under this coverage shall be reduced by any amount -that person is entitled to recover under Part A or Part D of this policy. 5. No one will be entitled to receive duplicate payments for the same elements of loss. 6. If an insured person and an uninsured motorist are jointly liable for damages, no person shall be entitled to recover damages under both Part A and Part C of this policy. 7. If an uninsured motorist and an underinsured motorist are jointly liable for damages, no person shall be entitled to recover damages under both Part C and Part D of this policy. SPLIT UNSTACKED UNINSURED MOTORIST COVERAGE LIMITS g are Split heUDecla Declarations Motorist the afole limits lowing provisions apply: 1. The limit of liability shown on the Declarations Page for e"each Uninsured y for otorist damag our maximum limit oliability es, including damages for care, loss of services, or death, arising out of bodily injury sustained by any one person in any one accident. Subject to this limit for "each person," the limit of liability shown on the Declarations Page for "each accident" for Uninsured Motorist Coverage is our maximum limit of liability for all damages for bodily injury resulting from any one accident. This is the most we will pay regardless of the number of: Page 11 insured persons; Claims made; Vehicles or premiums shown on the Declarations Page; or Vehicles involved in the accident. 2. Any amounts otherwise payable for damages under this coverage shall be reduced by all' sums paid because of the bodily injury by or on behalf of persons or organizations that may be legally responsible. This includes all sums paid under Part A and Part D of this policy. 3. Any payment under this coverage shall be reduced by any amount that person is entitled to recover under Part A or Part D of this policy. 4. No one will be entitled to receive duplicate payments for the same elements of loss. 5. If an insured person and an uninsured motorist are jointly liable for damages, no person shall be entitled to recover damages under both Part A and Part C of this policy. 6. If an uninsured motorist and an underinsured motorist are jointly liable for damages, no person shall be entitled to recover damages under both Part C and Part D of this policy. OTHER INSURANCE - PART C ONLY STACKED UNINSURED MOTORIST COVERAGE If Stacked Uninsured Motorist Coverage is shown on the Declarations Page, the following provisions apply: If there is other applicable similar insurance available under more than one policy or provision of coverage, the following priorities of recovery apply: First: The Uninsured Motorist Coverage applicable to the vehicle the insured person was occupying at the time of the accident. Second: The policy affording Uninsured Motorist Coverage, to the insured person as a named insured, a relative or a resident. If two or more policies have equal priority, the insurer against whom the claim is first made shall process and pay the claim. as if wholly responsible for all insurers with equal priority.: The insurer is thereafter entitled to recover contribution pro rata , from any other insurer for the benefits paid and the costs of processing the claim. UNSTACKED UNINSURED MOTORIST COVERAGE If Unstacked Uninsured Motorist Coverage is shown on the Declarations Page, the following provisions apply: If there is other applicable similar insurance available under more than one policy or provision of coverage, the following priorities of recovery apply: First: The Uninsured Motorist Coverage applicable to the vehicle the insured person was occupying at the time of the accident. Second: The policy affording Uninsured Motorist Coverage to the insured person as a named insured, a relative or a resident. When there is applicable insurance available under the First priority: a. The limit of liability applicable to the vehicle the insured person was occupying, under the policy in the first priority, shall first be exhausted; and b. The maximum recovery under all policies in the Second priority shall not exceed the amount by which the highest limit for any one vehicle under anyone policy in the Second priority exceeds the limit applicable under the policy in the First priority. When there is no applicable insurance available under the First priority, the maximum recovery under all policies in the Second priority shall not exceed the highest applicable limit for any one vehicle under any one policy. If two or more policies have equal priority, the insurer against whom the claim is first made shall process and pay the claim as if wholly responsible for all insurers with equal priority. The insurer is thereafter entitled to recover contribution pro rata from any other insurer for the benefits paid and the costs of processing the claim. SPLIT STACKED UNINSURED MOTORIST COVERAGE LIMITS if Split Stacked Uninsured Motorist Coverage is shown on the Declarations Page, the following provisions apply: If there is other applicable similar insurance available under more than one policy or provision of coverage, the following priorities of recovery apply: First: The Uninsured Motorist Coverage applicable to the vehicle the insured person was occupying at the time of the accident. Second: The policy affording Uninsured Motorist Coverage to the insured person as a named insured, a relative or a resident. If two or more policies have equal priority, the insurer against whom the claim is first made shall process and pay the claim as if wholly responsible for all insurers with equal priority. The insurer is thereafter entitled to recover contribution pro rata from any other insurer for the benefits paid and the costs of processing the claim. SPLIT UNSTACKED UNINSURED MOTORIST LIMITS If Split Unstacked Uninsured Motorist is shown on the Declarations Page, the following provisions apply: If there is other applicable similar insurance available under more than one policy or provision of coverage, the following priorities of recovery apply: First: The Uninsured Motorist Coverage applicable to the vehicle the insured person was occupying at the time of the accident. Second: The policy affording Uninsured Motorist Coverage to the insured person as a named insured, a relative or a resident. When there is applicable insurance available under the First priority: a. The limit of liability applicable to the vehicle the insured person was occupying, under the policy in the First priority, shall first be exhausted; and Form No. 13752PVAOI Page 19 b. The maximum recovery under all policies in the Second priority shall not exceed the amount by which the highest limit for any one vehicle under any one policy in the Second priority exceeds the limit applicable under the policy in the First priority. 2. When there is no applicable insurance available under the First priority, the maximum recovery under all policies in the Second priority shall not exceed the highest applicable limit for any one vehicle under any one policy. If two or more policies have equal priority, the insurer against whom the claim is first made shall process and pay the claim as if wholly responsible for all insurers with equal priority. The insurer is thereafter entitled to recover contriution t paid and the costs of processing the claim. from an othr insurer for the ARBITRATION y_? If we and an insured person do not agree whether the insured person is legally entitled to recover damages amount of under the the damages, either party may make a writ n demand for arbitration, Arbitration shall be conducted in accordance with the provisions of the Pennsylvania Arbitration Act of 1927. Each party will select an arbitrator. The two arbitrators will select a third. If they cannot agree within 30 days, either may request selection be made by a judge of a court having jurisdiction. the expenses party of the thi d t incurs and arbitrator equally. Unless both parties agree otherwise, arbitration will take place in the county in which the insured person lives. LocI urules of nless the arbitrators agree on evidence will rules. Each apply party shall have the right of full discovery. Unless both parties agree otherwise, the arbitrators shall have no authority to determine issues related to coverage under this Part, including, but not limited to, stacking or non-stacking of coverage, waivers of coverage, residency, statutes of limitations, or whether a person qualifies as an insured person. A written decision agreed to by two of the arbitrators will be binding as to whether the insured person is legally entitled to recover damages and the amount of damages, sUb'ect to the terms of this policy. The arbitrators shall have no authority to award an amount in excess of the limit of liability stated on the Declarations Page. The arbitrators shall have no authority to determine coverage under the policy. As a part of our claims handling procedures, we may use software that is designed to evaluate bodily injury under Part C - Uninsured Motorist Coverage. GENERAL- PROVISIONS The following is added to the Two or More Auto Policies provision in Part F: TWO OR MORE AUTO POLICIES This provision does not apply to Stacked Uninsured Motorist Coverage. 2. No one will be entitled to receive duplicate payments for the same elements of loss under Uninsured Motorist Coverage. PART D - UNDERINSURED MOTORIST COVERAGE INSURING AGREEMENT We will pay damages, other than punitive or exemplary damages, which the insured person is legally entitled to recover r the owner or operator of an underinsured motor vehicle because of bodily injury sustained by an insured person and caused by an accident. The owner's or operator's liability for these damages must arise out of the ownership, maintenance or use of the underinsured motor vehicle. We will pay under this coverage only after the limits of liability under all applicable Bodily Injury Liability bonds or policies have been exhausted by payment of" judgments or settlements. No judgment for damages arising out of a suit brought against the owner or operator of an underinsured motor vehicle is binding on us unless we: 1. Received reasonable notice of the filing of the suit resulting in the judgment; and 2. Had a reasonable opportunity to protect our interests in the suit. ADDITIONAL DEFINITIONS USED IN PART D ONLY "Insured person" as used in this Part means: 1. You, a relative or any resident; 2. Any other person occupying the insured auto with the permission of the owner; or 3. Any person for damages that person is entitled to recover because of bodily injury to which this coverage applies sustained by a person described in 1. or 2. above. "Underinsured motor vehicle" means a land motor vehicle or trailer of any type to which a Bodily Injury Liability bond or policy applies at the time of the accident but the amount paid for bodily injury under that bond or policy to an insured person is not enough to pay the amount the insured person is legally entitled to recover as damages. However, underinsured motor vehicle does not include any vehicle or equipment: 1. Owned by, leased or furnished for the regular use of you or any insured person. 2. Owned by any governmental unit or agency. 3. Operated on rails or crawler treads. 4. Designed mainly for use off public roads while not on public roads. 5. While located for use as a residence or premises. 6. Which qualifies as the insured auto underthis policy. Form No.13752PVA01 Page 13 EXCLUSIONS - PART D ONLY READ THE FOLLOWING EXCLUSIONS CAREFULLY. COVERAGE WILL NOT BE AFFORDED UNDER THIS PART FOR ANY OF THE EXCLUSIONS LISTED BELOW. We do not provide Underinsured Motorist Coverage: 1. For bodily injury sustained by any person: a. If that person or their legal representative settles the bodily injury claim without our consent. b. For any loss resulting from the ownership, maintenance or use of a vehicle when used by an Insured person to carry persons or property for consideration or fee, including but not limited to retail or wholesale delivery of magazines, newspapers, food, or any other product. This exclusion does not apply to shared-expense car pools. c. Using a vehicle without permission of the owner to use the vehicle, or using the vehicle outside of the scope of permission of the owner. d. Occupying the insured auto while it is being operated by someone without the permission of the owner, or using the insured auto outside of the scope of permission of the owner. 2. For non-economic loss sustained by any person to whom the Limited Tort Alternative applies, resulting from bodily injury caused by an accident involving an underinsured motor vehicle unless the bodily injury sustained is a serious injury. This exclusion does not apply: a. If the owner or operator of the underinsured motor vehicle: i. Is convicted, or accepts Accelerated Rehabilitative Disposition, for driving under the influence of alcohol or a controlled substance in that accident; ii. Is operating a motor vehicle registered in another state; or iii. Intends to injure himself or another person, provided that the individual does not intentionally injure himself or another person merely because his act or failure to act is intentional or done with his realization that it creates a grave risk of injury if the act or omission causing the injury is for the purpose of averting bodily harm to himself or another person. b. If that person is injured while occupying a motor vehicle insured under a commercial motor vehicle insurance policy- 3. For damage caused intentionally by or at the direction of an insured person. 4. For loss to the insured auto when made available for the regular or frequent use of a driver not listed on the Declarations Page of this policy. 5. For bodily injury or property damage resulting from the ownership, maintenance, or use of: a. Any vehicle with more or less than four wheels: b. Any vehicle designed mainly for use off public roads, except in a medical emergency; c. Any vehicle, other than the insured auto, which is owned by you or available for your regular use; or d. Any vehicle, other than the insured auto, which is owned by a relative or a resident, or regularly used by a relative or a resident or members of their immediate families. 6. For property damage sustained by any person while occupying or when struck by any motor vehicle owned by you, a relative or any resident which Is not insured for this coverage under this policy. 7. For property damage to a trailer of any type, any motor vehicle owned by you to which Collision Coverage applies under this policy, or any other motor vehicle to the extent that there is valid and collectible Collision Coverage applicable to that damage under any other policy. 8. For punitive or exemplary damages awarded as a punishment or deterrent. 9. For any loss sustained while a vehicle is used to transport nursery or school children, migrant workers, or hotel/motel guests. This exclusion does not apply to your children or children engaged in a car pool arrangement with you. 10. While the insured auto is used in, or in preparation for, any race, speed or performance contest, or while the insured auto is located inside a facility designed for such events. 11, To benefit any insurer or self-insurer under any of the following or similar law: a. Workers' compensation law; or b. Disability benefits law. LIMITS OF LIABILITY - PART D ONLY STACKED UNDERINSURED MOTORIST COVERAGE If Stacked Underinsured Motorist Coverage is shown on the Declarations Page, the following provisions apply: 1. Except as provided in paragraph 2. the limit of liability shown on the Declarations Page for Underinsured Motorist Coverage is our maximum limit of liability for all damages resulting from any one accident. This is the most we will pay regardless of the number of: a. Insured persons; b. Claims made; c. Vehicles or premiums shown on the Declarations Page; or d. Vehicles involved in the accident. 2. If bodily injury is sustained in an accident by you, a relative or any resident, our maximum limit of liability for all damages in any such accident is the sum of the limits of liability for Underinsured Motorist Coverage shown on the Declarations Page applicable to "each vehicle" on the policy. Subject to this maximum limit of liability for all damages, the most we will pay for bodily injury sustained by an insured person other than you, a relative or any resident is the limit of liability shown on the Declarations Page applicable to the vehicle the insured person was occupying at the time of the accident, This is the most we will pay regardless of the number of: a. Insured persons; b. Claims made; c. Vehicles or premiums shown on the Declarations Page; or d. Vehicles involved in the accident. 3. Any amounts otherwise payable for damages under this coverage shall be reduced by all sums paid because of the bodily injury by or on behalf of persons or organizations that may be legally responsible. This includes all sums paid under Part A and Part C of this policy. Form No. 13752PVA01 Page 14 4. Any payment under this coverage shall be reduced by any amount that person is entitled to recover under Part A or Part C of this policy. 5. No one will be entitled to receive duplicate payments for the same elements of loss. U. If an insured person and an underinsured motorist are jointly liable for damages, no person shall be entitled to recover damages under both Part A and Part D of this policy. 7. If an uninsured motorist and an underinsured motorist are jointly liable for damages, no person shall be entitled to recover damages under both Part C and Part D of this policy. UNSTACKED UNDERINSURED MOTORIST COVERAGE If Unstacked Underinsured Motorist Coverage is shown on the Declarations Page, the following provisions apply.- 1 . The limit of liability shown on the Declarations Page for Underinsured Motorist Coverage is our maximum limit of liability for all damages resulting from any one accident. This is the most we will pay regardless of the number of: a. Insured persons; b. Claims made; c. Vehicles or premiums shown on the Declarations Page; or d. Vehicles involved in the accident. 2. Any amounts otherwise payable for damages under this coverage shall be reduced by all sums paid because of the bodily injury by or on behalf of persons or organizations that may be legally responsible. This includes all sums paid under Part A and Part C of this policy. 3. Any payment under this coverage shall be reduced by any amount that person is entitled to recover under Part A or Part C of this policy. 4. No one will be entitled to receive duplicate payments for the same elements of loss. 5. If an insured person and an underinsured motorist are jointly liable for damages, no person shall be entitled to recover damages under both Part A and Part D of this policy. 6. If an uninsured motorist and an underinsured motorist are jointly liable for damages, no person shall be entitled to recover damages under both Part C and Part D of this policy. SPLIT STACKED UNDERINSURED MOTORIST COVERAGE LIMITS If Split Stacked Underinsured Motorist Coverage limits are shown on the Declarations Page, the following provisions apply: 1. If bodily injury is sustained in an accident by you, a relative or any resident: a. Our maximum limit of liability for all damages, including damages for care, loss of services, or death, arising out of bodily injury sustained by any one person in any such accident is the sum of the limits of liability shown on the Declarations Page for "each person" for Underinsured Motorist Coverage applicable to "each vehicle" on the policy. b. Subject to the maximum limit for each person described in 1.a. above, our maximum limit of liability for all damages arising out of bodily injury resulting from any one accident is the sum of the limits of liability shown on the Declarations Page for "each accident" for Underinsured Motorist Coverage applicable to "each vehicle" on the policy. c. Subject to the maximum limits of liability set forth in 1.a. and 1.b. above, the most we will pay for bodily injury sustained in such accident by an insured person other than you, a relative or any resident is the "each person" or "each accident" limit of liability shown on the Declarations Page applicable to the vehicle that the Insured person was occupying: at the time of the accident. The maximum limit of liability is the most we will pay regardless of the number of: 1. Insured persons; ii. Claims made; iii. Vehicles or premiums shown on the Declarations Page; or iv. Vehicles involved in the accident. If bodily injury is sustained by any insured person other than you, a relative or any resident in an accident in which neither you nor any relative nor any resident sustains bodily injury, the limit of liability shown on the Declarations Page for "each person" for Underinsured Motorist Coverage is our maximum limit of liability for all damages, including damages for care, loss of services, or death, arising out of bodily injury sustained by any one person in any one accident. Subject to this limit for "each person," the limit of liability shown on the Declarations Page for "each accident" for Underinsured Motorist Coverage is our maximum limit of liability for all damages for bodily injury resulting from any one accident. This is the most we will pay regardless of the number of; a. Insured persons; b. Claims made; c. Vehicles or premiums shown on the Declarations Page: or d. Vehicles involved in the accident. 3. Any amounts otherwise payable for damages under this coverage shall be reduced by all sums paid because of the bodily Injury by or -on behalf of persons or organizations who may be legally responsible. This includes all sums paid under Part A and Part C of this policy. 4. Any payment under this coverage shall be reduced by any amount that person is entitled to recover under Part A or Part C of this policy. 5. No one will be entitled to receive duplicate payments for the same elements of loss. 6. If an insured person and an underinsured motorist are jointly liable for damages, no person shall be entitled to recover damages under both Part A and Part D of this policy. 7. If an uninsured motorist and an underinsured motorist are jointly liable for damages, no person shall be entitled to recover damages under both Part C and Part D of this policy. Form No. 13752PVA01 Page 15 SPLIT UNSTACKED UNDERINSURED MOTORIST COVERAGE LIMITS If Split Unstacked Underinsured Motorist Coverage limits are shown on the Declarations Page, the following provisions apply; 1. The limit of liability shown on the Declarations Page for "each person" for Underinsured Motorist Coverage is our maximum limit of liability for all damages, including damages for care, loss of services, or death, arising out of bodily injury sustained by any one person in any one accident. Subject to this limit for "each person," the limit of liability shown on the Declarations Page for "each accident" for Underinsured Motorist Coverage is our maximum limit of liability for all damages for bodily injury resulting from any one accident. This is the most we will pay regardless of the number of: a. Insured persons; b. Claims made; c. Vehicles or premiums shown on the Declarations Page; or d. Vehicles involved in the accident. 2. Any amounts otherwise payable for damages under this coverage shall be reduced by all sums paid because of the bodily injury by or on behalf of persons or organizations that may be legally responsible. This includes all sums paid under Part A and Part C of this policy. 3. Any payment under this coverage shall be reduced by any amount that person is entitled to recover under Part A or Part C. of this policy. 4. No one will be entitled to receive duplicate payments for the same elements of loss. 5. If an insured person and an underinsured motorist are jointly liable for damages, no person shall be entitled to recover damages under both Part A and Part D of this policy. 6. If an uninsured motorist and an underinsured motorist are jointly liable for damages, no person shall be entitled to recover damages under both Part C and Part 0 of this policy. OTHER INSURANCE --FART D ONLY STACKED UNDERINSURED MOTORIST COVERAGE If Stacked Underinsured Motorist Coverage is shown on the Declarations Page, the following provisions apply: If there is other applicable similar insurance available under more than one policy or provision of coverage, the following priorities of recovery apply: First: The Underinsured Motorist Coverage applicable to the vehicle the insured person was occupying at the time of the accident. Second: The policy affording Underinsured Motorist Coverage to the insured person as a named insured, a relative or a resident. If two or more policies have equal priority, the insurer against whom the claim is first made shall process and pay the claim as if wholly responsible for all insurers with equal priority. The insurer is thereafter entitled to recover contribution pro rata from any other insurer for the benefits paid and the costs of processing the claim. UNSTACKED UNDERINSURED MOTORIST COVERAGE If Unstacked Underinsured Motorist Coverage is shown on the Declarations Page, the following provisions apply: If there is other applicable similar insurance available under more than one policy or provision of coverage, the following priorities of recovery apply: First: The Underinsured Motorist Coverage applicable to the vehicle the insured person was occupying at the time of the accident. Second: The policy affording Underinsured Motorist Coverage to the insured person as a named insured, a relative or a resident. 1. When there is applicable insurance available under the First priority: a. The limit of liability applicable to the vehicle the insured person was occupying, under the First priority, shall first be exhausted; and b. The maximum recovery under all policies in the Second priority shall not exceed the amount by which the highest limit for any one vehicle under any one policy in the Second priority exceeds the limit applicable under the policy in the First priority. 2. When there is no applicable insurance available under the First priority, the maximum recovery under all policies in the Second priority shall not exceed the highest applicable limit for any one vehicle under any one policy. If two or more policies have equal priority, the insurer against whom the claim is first made shall process and pay the claim as if wholly responsible for all insurers with equal priority. The insurer is thereafter entitled to recover contribution pro rata from any other insurer for the benefits paid and the costs of processing the claim. SPLIT STACKED UNDERINSURED MOTORIST COVERAGE LIMITS if Split Stacked Underinsured Motorist Coverage limits are shown on the Declarations Page, the following provisions apply: If there is other applicable similar insurance available under more than one policy or provision of coverage, the following priorities of recovery apply: First: The Underinsured Motorist Coverage applicable to the vehicle the insured person was occupying at the time of the accident. Second: The policy affording Underinsured Motorist Coverage to the insured person as a named insured, a relative or a resident. if two or more policies have equal priority, the insurer against whom the claim is first made shall process and pay the claim as If wholly responsible for all insurers with equal priority- The insurer is thereafter entitled to recover contribution pro rata from any other insurer for the benefits paid and the costs of processing the claim. SPLIT UNSTACKED UNDERINSURED MOTORIST COVERAGE LIMITS If Split Unstacked Underinsured Motorist Coverage is shown on the Declarations Page, the following provisions apply: Form No. 13752PVA01 Page 16 If there is other applicable similar insurance available under more than one policy or provision of coverage, the following priorities of recovery apply: First: The Underinsured Motorist Coverage applicable to the vehicle the insured person was occupying at the time of the accident. Second: The policy affording Underinsured Motorist Coverage to the insured person as a named insured, a relative or a resident, 1. When there is applicable insurance available under the First priority: a. The limit of liability applicable to the vehicle the insured person was occupying, under the First priority, shall first be exhausted; and b. The maximum recovery under all policies in the Second priority shall not exceed the amount by which the highest limit for any one vehicle'under any one policy in the Second priority exceeds the limit applicable under the policy in the First priority. 2. When there is no applicable insurance available under the First priority, the maximum recovery under all policies in the Second priority shall not exceed the highest applicable limit for any one vehicle under any one policy. If two or more policies have equal priority, the insurer against whom the claim is first made shall process and pay the claim as if wholly responsible for all insurers with equal priority. The insurer is thereafter entitled to recover contribution pro rata from any other insurer for the benefits paid and the costs of processing the claim. ARBITRATION If we and an insured person do not agree whether the insured person is legally entitled to recover damages under the applicable liability law or as to the amount of the damages, either party may make a written demand for arbitration. Arbitration shall be conducted in accordance with the provisions of the Pennsylvania Arbitration Act of 1927. Each party will select an arbitrator. The two arbitrators will select a third. If they cannot agree within 30 days, either may request selection be made by a judge of a court having jurisdiction. Each party will pay the expense it incurs and bear the expenses of the third arbitrator equally. Unless both parties agree otherwise, arbitration will take place in the county in which the insured person lives. Local rules of law as to procedure and evidence will apply unless the arbitrators agree on other rules, Each party shall have the right of full discovery. Unless both parties agree otherwise, the arbitrators shalt have no authority to determine issues related to coverage under this Part, including, but not limited to, stacking or non-stacking of coverage, waivers of coverage, residency, statutes of limitations, or whether a person qualifies as an insured person. A written decision agreed to by two of the arbitrators will be binding as to whether the insured person is legally entitled to recover damages and the amount of damages, subject to the terms of this policy. The arbitrators shall have no authority to award an amount in excess of the limit of liability stated on the Declarations Page. The arbitrators shall have no authority to determine coverage under the policy. As a part of our claims handling procedures, we may use software that is designed to evaluate bodily injury under Part Q - Underinsured Motorist Coverage. GENERAL PROVISIONS The following is added to the Two or More Auto Policies provision in Part F: TWO OR MORE AUTO POLICIES 1. This provision does not apply to Underinsured Motorist Coverage. 2. No one will be entitled to receive duplicate payments for the same elements of loss under Underinsured Motorist Coverage. DART E - COVERAGE FOR DAMAGE TO THE INSURED AUTO INSURING AGREEMENT If the Declarations Page shows a premium charged for Comprehensive Coverage, we will pay for direct and accidental comprehensive loss to the insured auto, less any applicable deductible for each separate loss. This shall include its factory-installed equipment. If the Declarations Page shows a premium charged for Collision Coverage, we will pay for direct and accidental loss to the insured auto caused by collision, less any applicable deductible for each separate loss. This shall include its factory-installed equipment. ADDITIONAL DEFINITIONS USED IN PART E ONLY 1. "Actual cash value" means market value at the time of the loss based upon vehicle mileage, age, condition, original optional equipment, and comparable vehicles available for sale within a reasonable geographic radius as documented in an electronic database of publications and dealerships, less depreciation and/or betterment. 2. "Aftermarket parts" means replacement auto parts not made by the original manufacturer of the motor vehicle or by a manufacturer authorized by the original manufacturer to use its name or trademark. 3. "Betterment" means a deduction for making an item better or adding value thereto. 4. "Collision" means loss caused by the insured auto's upset or overturn, or sudden impact with another object. 5. "Comprehensive" means loss to the insured auto caused by an event other than collision. Comprehensive loss includes, but is not limited to, loss caused by missiles, falling objects, fire, theft or larceny. It also includes explosion, earthquake, volcanic activity, windstorm, hail, water, flood, malicious mischief or vandalism, riot or civil commotion, contact with a bird or animal, or breakage of glass. If breakage of glass results from collision, you may elect to have it treated as loss caused by collision. 6. "Custom or additional equipment" means any equipment that was not installed at the factory or added as original equipment when the vehicle was purchased as new. Form No. 13752PVA01 Page 17 ducted from the 7 Decllarat olns iPagetansum d will b?ehdeis shown on the loss. g. "Depreciation" means the loss of value caused by physical, technological, social, and/or location deterioration. 9. "Diminution of value' means the difference in the actual cash value of the insured auto immediately before and after a loss. 10. "Loss' means sudden, direct, and accidental damage to, or theft of, the insured auto, including its original optional equipment, which is permanently installed at the factory by the vehicle manufacturer or authorized dealer. Custom or additional equipment over the maximum limit of $500 under this Part is covered only if it is declared before the loss and you pay an additional premium. Equipment installed or alterations made by to conversion facilities an auto or camper are considered standard or original optional equipment. 11. "The insured auto" shall also mean a rental vehicle rented from a commercially licensed rental agency, and while used as a substitute auto for any other auto described in this policy for which coverage under this Part is provided. However, coverage under this Part does not apply: a. to any auto driven outside the United States of America; b. to compensate any party for loss of use or rental value; c. to any rental vehicle or trailer used in any business, including an auto business; or eany xcess auto of fourteen (14) iconsecutive r calendar d. in to days. EXC U ISL ONS - PART EON -ONLY READ THE FOLLOWING EXCLUSIONS CAREFULLY. COVERAGE ANY NOT BE AFFORDED ELISTE PART FOR NY OF THE EXCLUSIONS D BELOW. We do not cover loss: 1. That results from nuclear reactions, radiation, or fallout. 2 Covered of that pocy ae exhaustlee policy, even if he limits 3. That results from the ownership, maintenance, or the insured use of t sonsorpr property for at fee or while compensato transport This exclusion does not apply to shared-expense car pools. 4. To the insured auto white it is rented or leased to others. 5. To clothes, tools, or other personal effects. 8. Resulting from the use of any vehicle in any racing event or off-road recreational activity. 9. To any ownership of any auto business. employment br y vehicle 10. Resulting from the ownership, maintenance, or use of a vehicle or trailer while a person is engaged in any business activity other than auto business activities. This exclusion includes use of a vehicle for delivery of goods or services arising out of any business. The exclusion does not apply if "business use" of the insured auto has been declared and you pay an additional premium. 11. Resulting from the use of the insured auto for snow removal. 12. Caused by war (declared or undeclared), civil war, insurrection, rebellion, or revolution. 13. Caused not odescribed r on ythe trailer Decla ations bPage. However, coverage does apply to loss to a camper body or trailer which you acquire during the policy after period if you acquire it and pay any insure requiredi premium s when due. 14. Resulting from prior loss or damage, manufacturers` defects, wear and tear, freezing, mechanical or electrical breakdown or failure, or road damage to tires. However, coverage does apply if the loss is the result of other loss covered by this policy. 15. To any modified suspension equipment, modified engines, modified carburetor systems, or modified equipment, including but not limited to: a. Aluminum, magnesium, chrome or alloy wheels: b. Special wide-tread tires or slicks. This exclusion does not apply to special equipment as outlined under Custom or Additional Equipment Coverage. 16. To winches, utility boxes, or tool boxes. 17. To tapes, compact discs, records, cassettes, or similar recording or recorded media used with sound equipment, including any cases or other containers used in storing or carrying such items. 18 19 6. To property the insured person rents, uses, or has 20 charge of, including loss of its use. This does not apply to a rental vehicle subject to the definition of insured auto as used in this Part. 7. To any vehicle other. than one With four unless specifically listed on the Declarations Page wheels To custom paint, murals, decals or graphics, special carpeting or furnishings. To custom sunroofs, moon roofs, t-bar roofs or height extending roofs, bubble domes or similar windows. To refrigeration or cooking equipment and any equipment used for sleeping. To any electronic equipment, antennas, other devices used exclusively or primarily to send or receive audio, visual, or data signals, or to play back recorded media. This is provided that such equipment or device is not permanently installed in the dash or console opening of the insured auto by the vehicle manufacturer or dealer. It also will not be specified as original equipment by the vehicle manufacturer. To sound receiving or transmitting equipment designed for use as citizen band radios or two-way mobile radios. Also, televisions not permanently installed in the insured auto by the vehicle manufacturer or dealer and specified as original equipment by the vehicle manufacturer, VCRs, Page 18 Form No. 13752PVA01 telephones not originally installed by the original make and model vehicle manufacturer or dealer. Also, home high fidelity equipment, scanning monitor receivers, radar or laser detectors. Also, any other detection equipment. for speed-measuring devices, or any accessories or antennas to any of these types of equipment. 21. To TV antennas, awnings, cabanas, or equipment designed to provide additional living facilities. 22. To the insured auto while in the care, custody, or control of any person for the purpose of selling the insured auto. 23. Caused intentionally by, or at the direction of you, a relative, a resident, or anyone using the insured -auto with your express or Implied permission and within the scope of such permission. 24. To the insured auto caused by or resulting from your acquiring an auto from the seller without legal titles available to you. 25. To the insured auto while being operated by a person or persons specifically excluded by endorsement. 26. To any vehicle that is subject to bailment lease, conditional sale or consignment agreement not specifically declared and described in this policy. 27. Caused to the insured auto when it is driven, operated or used with your express or implied permission by a person who: a. is under the minimum age to obtain legal authority to drive, b. does not have a valid driver's license, or c. has had their driving privileges rescinded by either license suspension or revocation. 28. Caused to the insured auto when it is driven, operated or used by any person who resides in your household or has regular use of the insured auto and such person is not listed or endorsed on the policy prior to loss. 29. Arising out of or.due to the use of the vehicle for transportation of any explosive substance, flammable liquid, or similarly hazardous materials, except transportation incidental to your ordinary household activities. 30. Due to confiscation or destruction by governmental or civil authorities. 31. To paint or discoloration of paint resulting from acid rain, smoke, smog, chemicals, salt, tree sap, or animal or bird droppings unless such loss is a direct result of collision or vandalism. 32_ While the insured auto is used in the commission of a crime. This exclusion applies only while the insured auto is being used by you, a relative, a resident, or anyone with your express or implied permission. 33. To the insured auto, non-owned auto or trailer for diminution of value. 34. To any non-owned auto. 35. Caused by the theft or conversion of the insured auto by a person to whom you have voluntarily entrusted the insured auto. This exclusion does not apply when the insured auto is stolen from the person to whom you loaned the auto, if the theft is reported to the police within 24 hours of the loss. 36. To any non-dealer or non-factory installed equipment that mechanically or structurally changes the insured auto. This change results in an increase in performance or a change in appearance. 37. To, or for loss of use of, a rental vehicle rented by you, a relative or a resident if a rental vehicle company is precluded from recovering such loss or loss of use, from you, a relative or a resident pursuant to the provisions of any applicable rental agreement or state law. 38. To any rental vehicle or substitute auto when used by you, a relative or a resident without the owner's express or Implied permission or outside the scope of the owner's permission. LIMITS OF LIABILITY - PART E ONLY Our limits of liability for loss shall not exceed the lesser of: 1. The actual cash value of the stolen or damaged property, at the time of loss, which may include an adjustment for depreciation andlor betterment; 2. The amount necessary to repair or replace the property to its physical condition at the time of loss using parts produced by or for the vehicle's manufacturer or parts from other sources including, but not limited to, aftermarket parts, as specified in Payment of Loss - Part E Only; or 3. The amount necessary to repair or replace a trailer not owned by you, a relative or a resident subject to a maximum of $500. Non-excluded custom or additional equipment is covered subject to a maximum limit of $500. This Is the maximum limit unless you have reported the value to us prior to the loss. You must also have then paid a premium for the Custom or Additional Equipment coverage as shown on the Declarations Page to apply. Our limit of liability for this equipment shall be the lesser of: 1. The actual cash value of the stolen or damaged property, at the time of loss, which may include an adjustment for depreciation and/or betterment or, 2. The declared value. All claims submitted under this Part shall be subject to the applicable deductibles shown on the Declarations Page. Any applicable deductible amount and salvage value, if you retain the salvage, is subtracted from all toss payments. We may elect to pay for the cost to repair or replace the property or part. If so, then our liability does not include any decrease in the property's value, however measured, resulting from the loss and/or repair or replacement. If repair or replacement results in the betterment of the property or part, we will not pay for the betterment. Form No.13752PVA01 Page 19 Coverage under this Part may apply to a vehicle you do not own. If so, then our liability is limited to the highest actual cash value of the auto described on the Declarations Page for which coverage under this Part has been purchased. More than one auto shown on the Declarations Page may be insured under this Part of the policy. If so, then our limit of liability shall not exceed the actual cash value of the highest-valued auto shown on the Declarations Page. Loss to the insured auto may also be payable under the Liability Coverage of another policy issued by us. If so, then we will pay for such damage or loss only once, either under this policy or under the Liability section of the other policy. Sound reproducing equipment and component parts shall be subject to a maximum limit of $1,000. This shall be in total when permanently installed by a factory or dealer as original equipment in the dash or console opening of the insured auto. APPRAISAL - PART E ONLY You or we may demand appraisal of the toss. Both parties will be bound by the results of the appraisal. Each party will appoint and pay a competent disinterested appraiser and will equally share other appraisal expenses. Each appraiser will state separately the actual cash value and the amount of loss, If the appraisers fail to agree, they will select an umpire and submit their differences to the umpire. If the appraisers cannot agree on an umpire, either may request that a judge of a court having jurisdiction make selection. An award in writing by any two of these three will determine the amount payable, subject to the terms of this policy, Attorney fees shall not be regarded as appraisal expenses. We do not waive any rights by agreeing to an appraisal. PAYMENT OF LOSS - PART E ONLY We may pay for the loss in money, or repair or replace the damaged or stolen property. If the insured auto is older than two model years from the date of loss, we may repair the insured auto using either aftermarket parts or recycled used parts, whichever is deemed to be less expensive by us, and with a deduction for depreciation andlor betterment. We may, at any time before the loss is paid or the property is replaced, return at our expense any property either to you or to the address shown on the Declarations Page, with payment for any resulting damage. We may keep all or part of the property at the agreed or appraised value. You do not have the right to abandon salvage to us. We may settle any claim for loss either with you, or with the owner of the property. Payment for loss is required only if you have fully complied with the terms of this policy. PROOF OF LOSS You must file written proof of loss within 60 days from the date we request it or there will be no coverage under this Part. OTHER INSURANCE - PART E ONLY If other insurance applies to a toss covered under this Part, we will pay only our share of the loss, Our share is the prorated amount of our limit of liability compared to all available limits of liability. Insurance afforded under this Part of the policy for an auto you do not own will be excess over any other applicable coverage or insurance. NO BENEFIT TO BAILEE This coverage shall not directly or indirectly benefit any person, organization, group, or other bailee caring for or handling property for a fee or compensation. ADDITIONAL PAYMENTS If there is a theft of the insured auto, we will pay up to the limits shown on the Declarations Page, for the cost of transportation incurred by you, This coverage begins 48 hours after you notify the police of the theft- The coverage period ends when the auto is returned to use or when we pay for the loss. We will not pay for the cost of transportation incurred by an insured person if there is a theft only of a trailer. CAR STORAGE COVERAGE We will pay up to a reasonable and customary daily rate for the cost of storage of the insured auto in the event of a loss to the insured auto for which coverage is provided under this Part. We will pay no more than $400 total for the cost of storage of the insured auto under this section. TOWING AND LABOR COVERAGE If the Declarations Page shows a specific premium charged for Towing and Labor Coverage, we will pay up to the limits shown on the Declarations Page for towing and labor costs incurred each time the insured auto is disabled. This does not include its running out of gas. We will cover labor, not including emergency locksmith repair, only if performed at the place of disablement, You agree to provide us with proof of incurred towing and labor charges. This proof must be in the form of verifiable receipts. CUSTOM OR ADDITIONAL EQUIPMENT COVERAGE If the Declarations Page shows a specific premium charged for Custom or Additional Equipment Coverage, we will pay for direct and accidental loss to additional equipment. You must have identified the additional equipment to us before the loss and such equipment must be permanently attached to the insured auto. Our limit of liability for loss to additional equipment shall not exceed the lesser of: The actual cash value of the stolen or damaged property at the time of loss which may include an adjustment for depreciation and/or betterment, The amount necessary to repair or replace the property as specified in Payment of Loss - Part E Only, or The declared value of the identified equipment as shown on the Declarations Page. The amount referenced above will be reduced by the applicable deductible as listed on the Declarations Page. Our limit of liability for Custom or Additional Equipment Coverage under this Part shall not exceed the limit shown on the Declarations Page. Form No. 13752PVA01 Page 20 We do not cover loss to any of the following types of equipment unless declared, approved, and an additional premium is charged for Custom or Additional Equipment Coverage: 1. Awnings, cabanas, campers, custom enclosures, or any other equipment designed to provide additional living facilities. 2. Any equipment or alteration not permanently installed at the factory by the original make and model vehicle manufacturer or authorized dealer and considered standard or original optional equipment for such vehicle. Equipment installed or alterations made at a conversion facility to an auto or camper is not considered standard or original optional equipment installed by the vehicle manufacturer. 3. Nonstandard chrome, alloy, aluminum, or magnesium wheels. 4. Custom wide-tread tires and racing slicks. 5. Custom chroming or gold plating, two-tone or custom paintwork, or custom interior work. 6. Captains or swivel chairs or tables. 7. Sun roof, moon roof, T-bar roof, or landau roof, if not permanently installed by the original make and model vehicle manufacturer or the authorized representative of the vehicle manufacturer. 8. Bubble dome, bubble window, or any deluxe roof treatment. 9. Satellite navigational devices if not permanently installed by the original make and model vehicle manufacturer or the authorized representative of the vehicle manufacturer. 10. Any "ground effects" package or "continental kit." 11. Telephones permanently installed by the original make and model vehicle manufacturer. RENTAL REIMBURSEMENT COVERAGE If the Declarations Page shows a specific premium charged for Rental Reimbursement Coverage, we agree to pay you for any reasonable and necessary transportation expense incurred. This payment shall not be more than the limit shown on the Declarations Page for the loss of use of the insured auto because of damage covered under Part E to the insured auto. The limit shown on the Declarations Page shall be payable for a maximum of thirty (30) days. 1. This endorsement does not apply to theft of the insured auto since Additional Payments Coverage is provided under Part E - Coverage for Damage to the Insured Auto. 2. The insured auto means the vehicle described on the Declarations Page and for which specific premium is charged for this coverage. 3. The Insured auto must be continuously withdrawn from normal use for more than twenty-four (24) hours. 4. We will reimburse you for rental only for the length of time required to repair or replace the insured auto as quickly and reasonably as possible. This endorsement is subject to such exclusions, conditions, and other terms of the policy which are applicable to Part E for damage to the insured auto. PART F - GENERAL PROVISIONS POLICY PERIOD AND TERRITORY This policy shall become effective on the date and time shown on the Declarations Page at the address shown on the Declarations Page. The policy will expire on the date and time specified on the Declarations Page at the address shown on the Declarations Page, unless terminated sooner. This policy applies only to accidents and losses that occur during the policy period shown on the Declarations Page and within the United States of America. If you owe us any premium on your expired or expiring policy, these funds must be paid before your policy will be renewed by us. Any payment sent by you will first be used to pay any balance owed on the expired or expiring policy. Any remainder of such payment will then be applied to the renewal premium. PREMIUM CHANGES The premium for this policy is based on information we have received from you and other sources. You agree: 1. That if you provide incorrect or incomplete information, we may adjust the premium accordingly during the policy period. We may also adjust the premium if any information material to calculating the policy premium changes. 2. To cooperate with us in determining if this information is correct and complete. You must also advise us of changes in this information within 14 days of the change. 3. That the return premium will be calculated based on the correct premium, if this policy is canceled. Any adjustment of your premium will be made using the rules in effect at the time of the change. Premium adjustment may be made as the result of a change in: 1. Any auto insured by the policy including changes in use. 2. Drivers, driver's age, or driver's marital status; 3. Coverages or coverage limits. 4. Rating territory. 5. Eligibility for discounts or other premium credits 6. Any other rating criteria permitted bylaw COVERAGE CHANGES We may revise your policy coverages to provide more protection without additional premium charge. If we do this and you have the coverage, which we change, your policy will automatically provide the additional coverage. This shall be as of the date the revision is effective in your state. Otherwise, this policy, the application, the endorsements, the Declarations Page and all attachments contain all of the coverage agreements between you and us. Its terms may not be changed or waived except by an endorsement issued by us. Form No. 13752PVA01 Page 21 PREMIUM PAYMENT Premium payment means the actual receipt of cash funds by us. We provide coverage for each policy term only on condition that the initial premium payment and subsequent installment payments for that policy term are paid. You have not paid the initial premium or any installment payment if you give us a check or a credit card or an electronic funds transfer that is not honored at first presentation by the financial institution upon which it is drawn. You have not paid the initial down payment premium if you give us a check or a credit card or an electronic funds transfer that is not honored at first presentation by the financial institution upon which it is drawn. In that event, this policy shall be void from the inception of the policy term and no coverage will exist, regardless of whether the policy has been issued. You may receive a cancellation notice from us, referencing either a regular installment payment or a renewal down payment, and informing you that your premium payment to us was returned unpaid. You then must provide a replacement payment to us by means of either a cashiers check or money order. When you then make such payment, in a timely manner, by the due date noted on the cancellation notice, your policy will remain active and in force. CANCELLATION AND NONRENEWAL We will not cancel, non-renew or discontinue your policy solely because of the age, race, color, religion, sex, national origin or ancestry of anyone who is an insured. You may cancel this policy by returning it to an authorized agent or us. You also may cancel by advising us in writing at a future date as to when the cancellation is to be effective. If this policy has been in effect 59 days or less and is not a continuation or renewal policy, we may cancel for any reason. We will mail notice to you at the address shown on the Declarations Page at least fifteen (15) days before the effective date of the cancellation. We may also deliver the notice at least fifteen (15) days before the effective date of the cancellation. If this policy has been in effect sixty (60) days or more or is a continuation or renewal policy, we may cancel only: 1. With at least 15 days' notice of cancellation; a. For nonpayment of premium. b. If the named insured's driver's license has been suspended or revoked after the effective date. This applies if this policy has been in effect less than one year. If the policy has been in effect longer than one year, since the last anniversary of the original effective date. 2. With at least 60 days' notice if the policy was obtained through material misrepresentation. We will mail to you at the address shown on the Declarations Page or deliver to you notice of non- renewal if we decide not to renew or continue this policy: 1. With at least 15 days' notice before the end of the policy period: a. For nonpayment of premium; or b. If the named insured's driver's license has been suspended or revoked after the effective date. This applies if this policy has been in effect less than one year. If the policy has been in effect longer than one year, since the last anniversary of the original effective date, With at least 60 days' notice before the end of the policy period in all other cases, Proof of mailing is proof of notice. Mailing is equivalent to delivery. Upon cancellation, you may be entitled to a premium refund, If so, we will send it to you. However, our offer of a refund is not a condition of cancellation. If you cancel, the refund will be computed in accordance with the customary short rate procedure. If we cancel, the refund will be computed on a pro-rata, basis. The effective date of cancellation stated in a notice is the end of the policy period. This policy will automatically terminate at the end of the current policy period if you or your representative do not accept our offer to renew or continue it. Your failure to pay the required continuation or renewal premium when due means that you have declined our offer. ATIONS ON AGENT AUTHORITY The authorized agent who obtained this policy for you has limited authority to act in transacting business with you on this policy. Your policy is governed by our guidelines, our rules, applicable laws, and regulations. If the authorized agent makes any statements or assurances to you concerning your policy, such statements or assurances are also governed by our guidelines, our rules, applicable laws, and regulations. The authorized agent who obtained this policy for you does not possess any apparent, implied, or actual authority to act on our behalf after the expiration, cancellation, or nonrenewal of your policy with us. Any representations made by the authorized agent after a notice of termination has been initiated, by either you or us, will apply only if we provide prior written approval. v ARBITRATION If we and an insured person do not agree whether that insured person is legally entitled to recover damages, or if either party disagrees as to the amount of damages that are recoverable by the insured under Part B - First Party Benefits Coverage then the matter may be arbitrated. Both parties must agree to arbitration. If so agreed, each party will select an arbitrator. The two arbitrators will select a third arbitrator. If they cannot agree on a third arbitrator within 30 days, either may appear in a court of jurisdiction to request that the judge appoint a third arbitrator. Each party will pay the expenses it incurs and bear the expenses of the third arbitrator equally. Unless both parties agree otherwise, the arbitration is to take place in the county in which the insured resides. Either party may dispute the arbitration award by demanding the right to a trial. A demand for trial must be made within 60 days of the decision by the board of arbitrators. If the demand for trial is not made within the time period, the amount of damages agreed to by the arbitrators would be binding, subject to the limits shown on the Declarations Page. The arbitrators shall have no authority to determine coverage under the policy. Form No. 13752PVADI Page 22 TWO OR MORE AUTO POLICIES This policy and any other auto insurance policy issued to you by us may apply to the same accident. If that is the case, the maximum limit of our liability under all the policies shall not exceed the highest applicable limit of liability under any one policy, even though separate premiums have been paid. SUITS AGAINST US We may not be sued unless there is full compliance with all terms of this policy. We may not be sued under Part A of this policy until the obligation of an insured to pay is finally determined either by judgment against the insured or by written agreement of the insured, the claimant, and us. No one shall have any right to make us a party to a suit to determine the liability of an insured, Any lawsuit brought against us under this policy must be commenced within 1 (one) year. TRANSFER OF YOUR INTEREST IN THIS POLICY Interest in this policy may not be assigned or transferred without our written consent. However, if you die, coverage will be provided until the end of the policy period for: Any person specifically named as an operator on the Declarations Page. 2. The legal representative of the deceased person while acting within the scope of his or her duties as a legal representative. If the insured auto is sold, coverage will terminate as to that auto when the buyer takes possession of the auto and will not transfer to the new owner. BANKRUPTCY An insured person's bankruptcy or insolvency will not relieve us of any obligation under this policy. OUR RECOVERY RIGHTS We may make a payment under this policy and the person receiving payment is entitled to recover from another. We are then entitled to those same rights of recovery to the extent of our payment. You and anyone we cover must sign and deliver to us any legal papers relating to that recovery. You and anyone we cover must do whatever else is necessary to help us exercise our rights. You and anyone we cover must do nothing after a loss to harm our rights. A person who has been paid by us under this policy may also recover from another. That person shall then hold the amount recovered in trust for us. It then shall be reimbursed to us to the extent of our payment. This is provided that the person to or on behalf of whom such payment is made is fully compensated for their loss. If an insured person or organization receives recovery from a responsible party without our written consent, the organization or insured person's right to payment under any affected coverage of this policy will no longer exist. LOSS PAYABLE CLAUSE We will pay loss or damage due under this policy according to your interest. We will also pay loss or damage due under this policy according the interest of the loss payee if one is shown on the Declarations Page. We may make separate payments according to those interests- We will pay the loss payee for a loss under this policy although you have violated the terms of the policy. You have violated the terms of the policy by something that you have done or failed to do. However, we will not pay for any loss caused by conversion, embezzlement, secretion, fraud or omissions by you or anyone acting on your behalf. We may cancel this policy according to its terms. We will protect the loss payee's interest for ten (10) days after we mail them notice that the policy has terminated, for any reason. We may pay the loss payee for any loss or damage suffered during that ten (10) day period. In that event, we have the right to recover the amount of any such payment from you. If you fail to give proof of loss within the time allowed, . the loss payee may protect its interest by filing a proof of loss within thirty (30) days after that time. The loss payee must notify us of any known change of ownership or increase in the risk. If it does not, it will not be entitled to any payment under this protection. We may pay the loss payee under the terms of this protection for a loss not covered under the policy. If that is the case, we are then subrogated to its rights against you. This will not affect the loss payee's right to recover the full amount of its claim. The loss payee must assign us its interest. The loss payee must transfer to us all supporting documents if we pay the balance due to the loss payee on the vehicle. The deductible amount applicable to losses payable to the loss payee under Part E - Coverage for Damage to the insured auto shall be the deductible amount shown on the Declarations Page for this coverage. PUNITIVE OR EXEMPLARY DAMAGES This insurance shall not apply to punitive or exemplary damages. We will not provide any defense of punitive or exemplary damages sought under any Part of this policy. We will not pay for any claim, settlement, judgment, or other award of punitive or exemplary damages under any Part of this policy. TERMS OF POLICY CONFORMED TO STATUTES Terms of this policy that conflict with the statutes of the state in which we issue this policy are amended to conform to such statutes. FRAUD AND MISREPRESENTATION We do not provide coverage for any insured person who has made false or fraudulent representations or statements or engaged in fraudulent conduct in obtaining or maintaining coverage, or concerning any accident or loss for which coverage is sought under this policy. If we are not permitted to void this policy, any first-party claims will be reduced by the amount of any additional premium owed to us. Any payments made by us as the result of your fraud or misrepresentation may be recovered from you or from any payments due or made to you under any first party coverage provided by this policy. POLLUTION EXCLUSION As used in this Exclusion,"Pollutants" include but are not limited to any solid, liquid, gaseous, or thermal substance, irritant, or contaminant including but not limited to smoke, Form No. 13752PVA01 Page 23 vapor, soot, fumes, acids, alkalis, toxic chemicals, and waste. Waste includes but is not limited to materials that may be recycled, reconditioned, or reclaimed, whether or not known to contain pollutants or result in environmental damage. It is agreed that this insurance does not provide coverage for bodily injury or property damage arising out of, or resulting from, the intentional or unintentional, actual, alleged, or threatened discharge, release, dispersal, seepage, or escape of pollutants contained in any property: 1. Transported by, towed by, loaded into, or unloaded from the insured auto, 2. Otherwise in the course of transit, Stored, disposed of, treated, or processed in or upon the insured auto. This exclusion does not apply if: a. The pollutants are emitted directly from an auto part designed by its manufacturer to hold, store, receive, or dispose of such pollutants, b. The bodily injury or property damage does not arise out of the operation of any equipment or device mounted on an auto chassis or used to raise or lower workers, and c_ The bodily injury or property damage does not arise out of the operation of any air compressors, pumps, and generators, including spraying, welding, building cleaning, geophysical exploration, lighting, or well servicing equipment. Containing the pollutants before or after the pollutants are moved from the place of acceptance, delivery, disposal, or abandonment, for movement into, onto, or from the insured auto. This exclusion does not apply if: a. The pollutants or any property in which they are contained are upset, overturned, or damaged as a result of the maintenance or use of the insured auto, or b. The discharge, dispersal, release, or escape of the pollutants is caused directly by such upset, overturn, or damage. It Is agreed that this insurance does. not provide coverage for any toss, cost, liability, or expense arising out of any judicial, administrative, or other governmental order, direction, or request that you test for, monitor, clean up, remove, contain, treat, detoxify, or neutralize pollutants or environmental damage. RESCISSION In the first 59 days of this policy; We retain the right to void this policy from Its beginning if we receive a down payment that is returned unpaid for any reason. Coverage under this policy is contingent upon us receiving full, final and complete payment of the down payment of the premium. We will not cover losses of any kind that occur after the inception of the policy if your down payment is returned unpaid. We reserve the right to void this policy from its beginning if we determine that you have provided incomplete, inaccurate or false information in your application. STRUCTURED 5ETTLEMENTS Any insured and we may make an agreement that is mutually satisfactory as respects to timing and amounts of payments under Extraordinary Medical Benefits. This shall be when it is apparent that payment of medical expense benefits in the form of a structured settlement will be both cost-effective to us and in the best interest of an insured. This may include annuities or other long- term payment arrangements. LIMITED TORT ALTERNATIVE INFORMATION NOTICE You have the right to elect a form of insurance, which limits your right, and the rights of members of your household to seek financial compensation for injuries caused by other drivers. Each person who elects the "limited tort alternative" remains eligible to seek compensation for economic loss sustained in a motor vehicle accident, as the consequence of the fault of another person pursuant to applicable tort law. Unless the injury sustained is a serious injury, each person who is bound by the limited tort election shall be precluded from maintaining an action for non-economic loss, except that: An individual otherwise bound by the limited tort election that sustains damages in a motor vehicle accident as the consequence of the fault of another person may recover damages as if the individual damaged had elected the full tort alternative whenever the person at fault: a. Is convicted or accepts Accelerated Rehabilitative Disposition for driving under the influence of alcohol or a controlled substance in that accident; b. Is operating a motor vehicle registered in another state; c. Intends to injure himself or another person. This is provided that an individual does not intentionally injure himself or another person merely because his act or failure to act is intentional or done with his realization that it creates a grave risk of causing injury if the act or omission causing the injury is for the purpose of averting bodily harm to himself or another person; or d. Has not maintained financial responsibility as required by the Pennsylvania Motor Vehicle Financial Responsibility Law. Provided that nothing herein shall affect the limitation of a person, precluded from maintaining an action for non-economic damages under the limited tort alternative, to recover non-economic damages under Uninsured Motorist Coverage or Underinsured Motorist Coverage. 2. An individual, otherwise bound by the limited tort election, shall retain full tort rights with respect to claims arising out of a defect in a motor vehicle. Such defect shall be caused by or not corrected by an act or omission of a person in the business of designing, manufacturing, repairing, servicing, or otherwise maintaining motor vehicles. The defect shall arise in the course of such business, other than a defect in a motor vehicle that is operated in such business. 3. An individual otherwise bound by the limited tort election shalt retain full tort rights if -injured while occupying a motor vehicle other than a private passenger motor vehicle. Form No. 13752PVA01 Page 24 EXCLUDED DRIVERS If you have asked us to exclude any person from coverage under this policy, then we will not provide coverage for any claim arising from an accident or loss involving a covered vehicle that occurs while it is being operated by the excluded person. This Includes any claim for damages made against you, a relative or any other persons or organization that is vicariously liable for an accident arising out of the operation of the insured auto or non-owned auto by the excluded driver. This policy is signed on behalf of Leader Preferred Insurance Company by our, President and Secretary, and is countersigned on the Declarations Page, if necessary, by our authorized representative. Tommy J. Stone President Samuel J. Simon Secretary Form No. 13752PVA01 Page 25 The following endorsement applies only if L Form Number 13752ADB01 appears on your Declarations Page ACCIDENTAL DEATH BENEFIT ENDORSEMENT INSURING AGREEMENT We agree with you, in return for your premium payment and subject to all of the provisions of this endorsement and to all of the provisions and definitions of the policy as modified herein, as follows: We will pay the limit of liability shown on the Declarations Page in the event of death of an insured person that results directly and solely from bodily injury caused by an accident involving a vehicle. ADDITIONAL DEFINITIONS As used in this endorsement (all other definitions in the policy remain as written): "Insured person" means you, a relative or resident. "Vehicle" means a motor vehicle having more than three load-bearing wheels, of a kind required to be registered under the laws of the state and relating to motor vehicles designed primarily for operation upon the public streets, roads and highways, and driven by power other than muscular power, and includes a trailer drawn by or attached to such a motor vehicle. EXCLUSIONS We do not provide Accidental Death Benefits for any person who sustains an: 1. Accidental death while occupying a motorcycle, moped, motorized bicycle or similar two-wheeled vehicle, or all-terrain motorized vehicle having two, three, or four wheels. 2. Accidental death while occupying the insured auto when it is being used to carry persons or property for a fee, including rental of the Insured auto to others. This exclusion does not apply to a shared expense car pool. 3. Accidental death while occupying any vehicle used as a residence or premises. 4. Accidental death while operating any vehicle other than the insured auto, which is owned by or furnished or available for regular use of any insured person. 5. Accidental death while occupying a vehicle without the express or implied permission of the owner. 6. Accidental death while occupying a vehicle when it is being used in the business of an insured person. 7. Accidental death while occupying a vehicle when it is being used in any auto business. 8. Accidental death caused by the discharge of a nuclear weapon (even if accidental), war (declared or undeclared), civil war, insurrection, rebellion or revolution or any consequence of any of these. 9. Accidental death from any nuclear reaction, radiation or radioactive contamination, all whether controlled or uncontrolled or however caused, or any consequence of any of these. 10. Accidental death while the motor vehicle is used for racing. 11. Accidental death where the accident occurs and arises out of the use of a motor vehicle while the insured person is in the commission of a crime. LIMIT OF LIABILITY Regardless of the number of insured persons, policies or bonds applicable, claims made or the insured autos to which this coverage applies, the limit of our liability under Accidental Death Benefit Coverage Is the limit of liability shown on the Declarations Page per insured person. GENERAL PROVISIONS Part F of the policy applies to this coverage. The following endorsement applies only if Form Number 13752LCC01 appears on your Declarations Page LIMITED COMPREHENSIVE COVERAGE In consideration for a premium discount to your Comprehensive premium, it is agreed that the policy is amended as follows: Amendment 1 The definition of "Comprehensive" is deleted and replaced by the following: "Comprehensive" means only loss caused by fire, theft or breakage of glass. If breakage of glass results from collision, you may elect to have it treated as a loss caused by collision. Amendment 2 The following definition is used in this Part only: "Theft' means the unlawful taking of the insured auto in its entirety during a single incident. Amendment 3 Coverage under this policy does not apply to theft of parts or equipment, unless the entire vehicle has been stolen. The following endorsement applies only if E Form Number 13752NOE01 appears on your Declarations Page NAMED DRIVER NON-OWNER COVERAGE INSURING AGREEMENT If you purchase a Named Driver Non-owner policy, it is agreed that the policy is amended as follows. AMENDMENT 1 The Liability Coverage Insuring Agreement used in Part A - Liability Coverage is deleted in its entirety and replaced by the following: We will pay damages except for punitive or exemplary damages, for which an insured person is legally liable because of bodily injury or property damage resulting from the use of your insured auto.. The bodily injury or property damage must not be expected nor intended from the standpoint of the insured person. We will defend any suit or settle any claim for damages, as we think appropriate. We will not defend or settle after our limit of liability has been paid. We have no duty to defend any suit or settle any claim for bodily injury or property damage not covered under this policy. NDMENT 2 The following definitions replace those found in the section titled Definitions Used Throughout this Policy: "You' and "your" mean only the individual person named as the insured on the Declarations Page. "Your insured auto" means any non-owned auto or trailer provided that you have the express permission of the owner to use the auto or trailer. No coverage shall apply for you while operating an auto owned by you, a resident, or a relative of the household in which you reside. AMENDMENT 3 As used throughout this policy, "insured person" means you. No person shall be considered an insured person if that person uses an auto without having the express permission of the owner. AMENDMENT 4 The Other Insurance provision in Part A-Liability Coverage is deleted in its entirety and replaced by the following: OTHERINSURANCE The insurance provided by this Part is excess over any other collectible auto liability insurance. AMENDMENT 5 No coverage applies under Part E - Coverage for Damage to the Insured Auto of this policy. Form No. 13752PVA01 Page 26 AMENDMENT 6 - Exclusion number 14 in Part A -- Liability Coverage is deleted in its entirety. AMENDMENT 7 The terms and conditions of this endorsement and state statutes also apply to Part C - Uninsured Motorist Coverage and Part D - Underinsured Motorist Coverage of this policy. The following endorsement applies only if Form Number 13752LLE01 appears on your Declarations Page LESSOR LIABILITY ENDORSEMENT In exchange for your increased premium, this endorsement has been added to your insurance policy. The provisions in this endorsement are effective only while the insured auto is leased by you, for a period of at least six (6) months, as documented by a standard form lease agreement with expressly stated insurance coverage requirements. During the term of this policy, the limits of coverage for damages you become legally obligated to pay, as defined by your policy, shall be those limits listed on your Declarations Page. The endorsement provides the following additional liability coverage for your lessor: Bodily Injury: $100,000 per person $300,000 per accident Property Damage: $50,000 per accident This additional coverage will apply to damages your lessor becomes legally obligated to pay that arise from and are legally related to a loss covered under your policy. The coverage provided by this endorsement is in addition to that listed on your Declarations Page and is available only to indemnify your lessor pursuant to the terms listed herein. The provision of the coverages in this endorsement shall in no event increase our limits of liability for any damages you become legally obligated to pay, pursuant to the terms of your policy. If we terminate this policy, notice will also be mailed to the lessor. The lessor is not responsible for payment of premiums. PENNSYLVANIA SURCHARGE DISCLOSURE STATEMENT In compliance with 75 Pennsylvania Consolidated Statutes Section 1793(b), we provide this surcharge disclosure plan to explain our system of driving record points. This statement provides an overview; more detailed information is available on request. Driving record points are assigned to operators for chargeable accidents and violations. All accidents and violations occurring in the 35-month period prior to policy inception are considered in developing a driver's policy premium. If a driver is added midterm, accidents and violations will be charged for the entire 35-month period prior to the driver being added to the policy. Point surcharges follow the driver. To determine if the accident or violation took place in the chargeable period, we use the accident date instead of the conviction date. We charge for accidents and a violation occurring while a driver is operating a private passenger automobile, commercial vehicle, motorcycle, or recreational vehicle. Accidents. We assess a surcharge of approximately 30% for each at-fault accident charged to an operator. Accidents are chargeable if, as a result of the accident, the insurer incurs at feast $1,150 in losses in excess of any deductible for personal injury or damage to property, including the insured person's property. Each accumulation of $1,150 in aggregate losses from incidents not otherwise charged represents an at-fault accident, if the insured can demonstrate that any of the facts of loss described in 31 Pennsylvania Code Section 67.33 (non-chargeable accidents) apply to an accident, the accident will not be charged to the operator. Minor Violations. We assess a surcharge of approximately 15% for the second and each subsequent conviction of routine traffic infractions like speeding or failure to yield. Most of these infractions are listed in 75 Pennsylvania Consolidated Statutes Section 1535, Major Violations. We assess a surcharge of approximately 45% for each conviction of a violation, which suggests the presence of a materially Increased risk in a motorist. Such major violations include vehicular homicide, leaving the scene of an accident involving death or injury, or fleeing a police officer. Driving While Intoxicated, We assess a surcharge of approximately 15% for each Driving While Intoxicated conviction under 75 Pennsylvania Consolidated Statutes Section 3731 (Driving under the influence of alcohol or controlled substance), notice of acceptance of Accelerated Rehabilitative Disposition under 75 Pennsylvania Consolidated Statutes Section 1534, or similar infraction. Form No. 13752PVA01 Page 27 r IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA DONNA MOWRY, Plaintiff V. INFINITY INSURANCE, Defendant NO. 11-4632 CIVIL TERM CIVIL ACTION - LAW JURY TRIAL DEMANDED CERTIFICATE OF SERVICE AND NOW, this ,"7+y,? day of June, 2011, I, Michael B. Scheib, Esquire, a member of the firm of Griffith, Strickler, Lerman, Solymos & Calkins, hereby certify that I have this date served a copy of the Respondent, Infinity Insurance's Answer to Petitioner's Petition to Compel Arbitration, by United States Mail, postage prepaid, addressed to the party or attorney of record as follows: Karl E. Rominger, Esquire Rominger & Associates 155 South Hanover Street Carlisle, PA 17013 (Attorney for Plaintiff) GRIFFITH, STRICKLER, LERMAN, SOLYMOS & CALKINS „ By: MICHAEL B. SCFLEM, PA 63868 110 South Northern Way York, PA 17402-3737 Phone (717) 757-7602 Fax (717) 757-3783 Mscheib pslsc.com Attorney for Respondent, Infinity Insurance CA'Al. DONNA MOWRY, IN THE COURT OF COMMON PLEAS OF Petitioner CUMBERLAND COUNTY, PENNSYLVANIA vs. CIVIL ACTION - LAW NO. 11-4632 CIVIL r -; INFINITY INSURANC -M E' Respondent JURY TRIAL DEMANDED IN RE: PETITION TO COMPEL ARBITRATION Na ORDER - AND NOW, this q' day of October, 2011, the Prothonotary is ordered and directed to list this matter for the regular session of Argument Court to be held on December 16, 2011. ? Karl E. Rominger, Esquire For the Petitioner ? Michael B. Scheib, Esquire For the Respondent :rlm Npies Mai 1"Nif 00 BY THE COURT,