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HomeMy WebLinkAbout12-1080SLED-O - OF THE PRRTHCNO ia^ 'DOUGLAS LAW OFFICE 43 WEST SOUTH STREET CARLISLE PA 17013 TELEPHONE 717-243-1790 29 12 FEB 21 PM 12: C Z WILLIAM P. DOUGLAS, ESQ. Supreme Court I.D.# 37926 Mi vs State Farm Mutual Automobile Insurance Company CUMBERLAND COUNTY PENNSYLVANIA In the Court of Common Pleas of Cumberland County Pennsylvania Plaintiff No. 12- ?jW Civil Term Defendants Civil Action Law Lrv Trial Demanded NOTICE YOU HAVE BEEN SUED IN COURT. IF YOU WISH TO DEFEND AGAINST THE CLAIMS SET FORTH IN THE FOLLOWING PAGES, YOU MUST TAKE ACTION WITHIN TWENTY DAYS AFTER THIS COMPLAINT AND NOTICE ARE SERVED, BY ENTERING A WRITTEN APPEARANCE PERSONALLY OR BY ATTORNEY AND FILING IN WRITING WITH THE COURT YOUR DEFENSES OR OBJECTIONS TO THE CLAIMS SET FORTH AGAINST YOU. YOU ARE WARNED THAT IF YOU FAIL TO DO SO, THE CASE MAY PROCEED WITHOUT YOU AND A JUDGMENT MAY BE ENTERED AGAINST YOU BY THE COURT WITHOUT FURTHER NOTICE FOR ANY MONEY CLAIMED IN THE COMPLAINT OR FOR ANY OTHER CLAIM OR RELIEF REQUESTED BY THE PLAINTIFF. YOU MAY LOSE MONEY OR PROPERTY OR OTHER RIGHTS IMPORTANT TO YOU. YOU SHOULD TAKE THIS PAPER TO YOUR LAWYER AT ONCE. IF YOU DO NOT HAVE A LAWYER, GO TO OR TELEPHONE THE OFFICE SET FORTH BELOW. THIS OFFICE CAN PROVIDE YOU WITH INFORMATION ABOUT HIRING A LAWYER. IF YOU CANNOT AFFORD TO HIRE A LAWYER, THIS OFFICE MAY BE ABLE TO PROVIDE YOU WITH INFORMATION ABOUT AGENCIES THAT MAY OFFER LEGAL SERVICES TO ELIGIBLE PERSONS AT A REDUCED FEE OR NO FEE. Cumberland County Bar Association 32 S. Bedford Street Carlisle PA 17013 717-249-3166 BY Q DATE: February 20, 2012 %03- ?5?? • a? Complaint 1. The plaintiff, Michele Stricker, is an adult individual residing at 119 Cherry Lane, Dillsburg, York County, Pennsylvania. 2. The Defendant, State Farm Mutual Automobile Insurance Company, is a business entity licensed to and doing business in the Commonwealth of Pennsylvania, with a place of business located at One State Farm Plaza, Bloomington, Illinois, 61710. Said defendant is hereinafter referred to as 'State Farm'. 3. On or about July 14, 2004, and for successive 6 month terms thereafter, the plaintiff was sold an automobile insurance policy by State Farm currently bearing policy number 004 9095-C02-38F. The contract consists of the Declaration Page in effect at the time of the loss (attached hereto and marked Exhibit A) and Policy Plan Booklet 9838A (attached hereto and marked Exhibit B). The aforesaid policy was to provide $100,000.00 in primary underinsured motorists benefits (Coverage W3), in the event the plaintiff is injured by an underinsured motorist. 4. On or before July 26, 2007, and for successive 12 month periods thereafter, the plaintiff was sold another policy of insurance by State Farm bearing policy number 1167104-A26-38A-001. The Declaration Page in effect at the time of the loss (attached hereto and marked Exhibit C), pursuant to it's terms the policy was to provide $50,000.00 in excess underinsured motorist benefits (Coverage W), in the event the plaintiff was injured by an underinsured motorist while occupying a non-owned vehicle. Both policies use the same Policy Plan Booklet 9838A (Exhibit B). See page 26, column 2, paragraph 1. c. of said booklet. 5. On or about July 17, 2011, both of the aforesaid policies were in full force and effect. 6. On July 17, 2011, the plaintiff was a passenger on a vehicle owned and operated by Darwin Appleby and was severely injured as a direct and proximate result of the negligence of Mr. Appleby. The injuries, expenses and losses suffered and incurred by Michele Stricker, are in an amount that exceeds all potentially available liability and underinsured motorist coverage. 7. Said vehicle owned by Darwin Appleby was insured by a policy of insurance issued by Progressive Insurance Company bearing policy number 42887924 - 005 and the applicable loss was handled by Progressive under claim number 111731146. Progressive tendered their liability policy limits to Michele Stricker in the amount of $50,000.00 and pursuant to Michele Stricker's policies with State Farm, she obtained State Farm's written consent to settle with Appleby/ Progressive. A copy of the October 6, 2011, consent letter from Michael Grove to Michele Stricker (attached hereto and marked Exhibit D). 8. On November 2, 2011, State Farm Claims Representive Michael Grove, wrote to Michele Stricker and in said letter stated: "Enclosed is our draft in the amount of $50,000.00 in full and final settlement of your Underinsured Motorist Claim. This tenders your policy limits." (attached hereto and marked Exhibit E). 9. Prior to January 2012, Michele Stricker was not represented by counsel in her dealings with Progressive Insurance Company and State Farm Automobile Insurance Company. In January 2012, Michele Stricker, met with counsel to review her claim including her insurance contracts. 10. In reading the policies it was apparent that the $50,000.00 policy limit exhaustion letter sent to Michele Grove by State Farm was false. 11. Counsel for the plaintiff wrote a letter to State Farm on January 17, 2012, (attached hereto and marked Exhibit F) and informed them that the claim of an exhausted $50,000.00 policy limit was incorrect and that pursuant to the terms of the policies issued to Michele Stricker she was entitled to payment under both policies of insurance and actually had a combine policy limit of $150,000.00, specifically, State Farm policy number 004 9095-C02-38F provides primary Underinsured Motorist Coverage (Coverage W3) in the amount of $100,000.00 and State Farm Policy number 1167104-A26-38A-001 provides excess Underinsured Motor Vehicle Coverage (Coverage W) in the amount of $50,000.00 pursuant to the language of said contracts. 12. After State Farm was contacted by Plaintiff's counsel, State Farm paid an additional $50,000.00 but they are still refusing to honor the promises they made to their insured in the aforesaid policies of insurance. A copy of the letter denying the remaining $50,000.00 in coverage, is attached hereto (and marked Exhibit G). 13. State Farm is refusing to abide by the terms of the contract they wrote and they're ignoring the plain language in the contract which makes it clear that they owe their insured the full $150,000.00 they promised her. State Farm has frivolously, and with no proper foundation for their actions, has knowingly and intentionally misrepresented and refused to pay proceeds under their policies of insurance and has failed to provide benefits in accordance with the terms of the policies. 14. The bad faith conduct of State Farm gives rise to a cause of action pursuant to 42 Pa. C.S.A. §8371. 15. The defendant is claiming that even though they sold the plaintiff a primary underinsured motorist policy in the amount of $100,000.00 and an excess underinsured motorist policy in the amount of $50,000.00 which they told her she could stack they are now refusing to honor the promise they made with no legal or factual basis to support the denial. 16. The defendant State Farm has not acted in good faith to effectuate prompt, fair and equitable resolution of their insured's claims, knowing that liability to pay underinsured motorist benefits in the amount of $150,000.00 is clear and coverage applies, and as a result, the plaintiff has been forced to incur fees and expenses to protect her interests. 17. The defendant has ignored the plain meaning of the language in the contract which would provide coverage to Michelle Stricker and they have failed to promptly provide a factually and legally sound explanation for the basis of their denial. 18. When one reviews the second contract of insurance purchased by Michele Stricker which provides $50,000.00 in "W" underinsurance the contract clearly states on Page 26: "If Other Underinsured Motor Vehicle Coverage Applies - Coverage W 1. If underinsured motor vehicle coverage for bodily injury is available to an insured from more than one policy provided by us or any other insurer, any coverage applicable: C. under this policy shall apply on an excess basis if the insured sustains bodily injury while occupying a vehicle other than your car. 2. Subject to item 1 above, if this policy and one or more other policies provide coverage for bodily injury: . . b. on an excess basis, we are liable only for our share. Our share is that percent of the damages payable on an excess basis that the limit of liability of this coverage bears to the total of all applicable underinsured motor vehicle coverage provided on an excess basis." 19. The defendant has willfully, maliciously and/or recklessly withheld benefits from the plaintiff without a proper legal basis to do so. Said conduct constitutes a breach of an implied covenant of good faith and fair dealing. 20. The defendant, in bad faith, has denied payment of applicable coverage to their insured without a sound legal basis for their denial nor have they fully inquired into the possible basis which might support the insured's claim of coverage. 21. State Farm has deliberately acted in conscious disregard and with reckless indifference to the rights of their insured. 22. The defendant impliedly and/or expressly warranted that they would, in good faith, provide insurance coverage to Michele Stricker in accordance with the contracts and abide by the terms of said contracts. 23. As a result of the aforesaid, the defendant breached its contract and/or contracts, which breach resulted in financial loss to the plaintiff and has caused her great aggravation, inconvenience and distress. 24. The plaintiff hereby requests all remedial relief as provided in 42 Pa. C.S.A. §8371 and payment in full of all available insurance benefits due under the contracts of insurance sold to her by State Farm. Wherefore it is prayed that judgment be entered in favor of the plaintiff and against the defendant in an amount in excess of that requiring compulsory referral to arbitration. A trial is hereby demanded. Respectfully submitted, William P. Douglas, Es February 20, 2012 Attorney for Plainti AFFIDAVIT I hereby swear or affirm that the foregoing is true and correct to the best of my knowledge and/or information and belief. This is made subject to the penalties of 18 Pa.C.S.A. § 4904 relating to unsworn falsification to authorities. William P. Douglas for February 20, 2012 State Faun Mutual Automobile Insurance Company One State Farm Dr Concordville PA 19339 NAMED INSURED AT1 003737 STRICKER, MICHELE L 119 CHERRY LN DILLSBURG PA 17019-1115 38-6490-5WG A W N r° wo 67635.5-G MUTL VOL L-' DECLARATIONS PAGE NAIC1t 25178 POLICY NUMBER 004 9095-C02-38F POLICY PERIOD JUN 14 2011 to SEP 02 2011 12:01 A.M. Standard Time STATE FARM PAYMENT PLAN NUMBER 0392620913 AGENT DENISE DOMBACH 325 MANOR DR MECHANICSBURG, PA 17050-3082 PHONE: (717)761-6410 DO NOT PAY PREMIUMS SHOWN ON THIS PAGE. IF AN AMOUNT IS DUE, THEN A SEPARATE STATEMENT IS ENCLOSED. YOUR CAR ,..,. ?.tt >v f xa+-,. may,: ;a-nKcre Y,an* tt a,?f?"+x?,'gtrg'z;: :c :. 2010 TOYOTA CAMRY 4DR 4T1BF3EK7AU515439 1FO05OA000 a , Bodily Injury Limits $100,000 $300,000 Each Accident .. .. ?.'fi .7- ... tip. :7.. .. Owl C2 Medical Pa?rments Coverage $22.07 -f3 .:: . S .:if .... .. .. ;:.. .:::..:.,:. _. .;; '::. ,. .. $26=1 G G v?r? e - $500 Deductible CoNis ' $57.59 ? 1D w $.78 R1 Car Rental and Travel Expenses Coverage # hf `? $5.46 .?I Each Day, Each Loss U3 Uninsured Motor Vehicle Coverage $2.39 Each Person, Each Accident W3 Underinsured Motor Vehicle Coverage $11.99 Each Person, Each Accident F Funeral Benefits Coverage $.28 $2,500 Z4 Loss of Income Coverage $11.08 Exhibit A Replaced policy number 0049095-38E. Your total renewal prse - for LIAR 02 2011 to SEP 02 2011 Is $449.43. Eli -AIL l lNlriifrE, ftere?sr? tsirdift s.) Please read the policy carefully. If there is an accident, contact your State Farm agent or one of our Claim Offices at once. (See "INSURED'S DUTIES" in this policy booklet.) State Farm® Car Policy Booklet Pennsylvania Policy Form 9838A Exhibit 8 CONTENTS THIS POLICY ..............................................3 DEFINITIONS ............................................. . 4 LIABILITY COVERAGE .......................... . 7 Additional Definition ................................. . 7 Insuring Agreement .................................... . 7 Supplementary Payments ........................... . 8 Limits ......................................................... . 8 Nonduplication ........................................... . 9 Exclusions ................................................... 9 If Other Liability Coverage Applies .......... 10 Required Out-of-State Liability Coverage 11 Financial Responsibility Certification....... 11 FIRST PARTY COVERAGES .................. 12 Additional Definitions - Coverages C2, Q , Z, Y, and F .... .............................................. 12 MEDICAL PAYMENTS - COVERAGE C2 ....................................... 12 Insuring Agreement - Coverage C2 .......... 12 EXTRAORDINARY MEDICAL PAY- MENTS - COVERAGE Q .......................13 Insuring Agreement and Limits - Coverage Q ...............................................13 LOSS OF INCOME - COVERAGE Z.....14 Insuring Agreement - Coverage Z ............ 14 DEATH, DISMEMBERMENT AND LOSS OF SIGHT -- COVERAGE Y ...................14 Additional Definition - Coverage Y ......... 14 Insuring Agreement - Coverage Y............ 14 Payments of Benefits - Coverage Y ......... 15 FUNERAL BENEFITS - COVERAGE F .......................................... 15 Insuring Agreement - Coverage F ............ 15 Limits - Coverage C2 ............................... 15 Limits - Coverage Z ................................. 15 Limits - Coverage Y ................................. 15 Limits - Coverage F .................................. 15 Limits - Coverages C2, Q, Z, Y, and F ..... 15 Priorities for the Payment of First Party Benefits - Coverages C2, Q, Z, Y, and F.. 15 Exclusions -- Coverages C2, Q, Z, Y, and F....16 Mental or Physical Examination - Coverages C2, Q, Z, Y, and F .....................................16 COMBINED BENEFITS - COVERAGE M .........................................17 Insuring Agreement - Coverage M ........:..17 Limits - Coverage M .................................17 Time Limitation - Coverage M .................17 Other Provisions - Coverage M ................17 UNINSURED MOTOR VEHICLE COVERAGES ..................................................17 Additional Definitions - Coverages U and U3 .......................................................17 Insuring Agreement - Coverages U and U3: ...................................................... 18 Consent to Settlement - Coverages U and U3 .......................................................19 Deciding Fault and Amount - Coverages U and U3 .......................................................19 Limits - Coverages U and U3 ...................19 Limits - Coverage U3 ...............................20 Nonduplication - Coverages U and U3 ..... 20 Exclusions - Coverages U and U3 ...........20 Exclusions - Coverage U .........................20 Exclusions - Coverage U3 .......................21 If Other Uninsured Motor Vehicle Coverage Applies - Coverage U ................................. 21 If Other Uninsured Motor Vehicle Coverage Applies - Coverage U3 ............................... 21 Our Payment Options - Coverages U and U3 .......................................................22 UNDERINSURED MOTOR VEHICLE COVERAGES ............................................. 23 Additional Definitions - Coverages W and W3 ......................................................23 Insuring Agreement - Coverages W and W3 ......................................................24 Consent to Settlement - Coverages W and W3 ......................................................24 Deciding Fault and Amount - Coverages W and W3 ......................................................24 Limits - Coverages W and W3 ..................25 Limits - Coverage W3 ..............................25 Nonduplication - Coverages W and W3 ...25 2 9838A Exclusions - Coverages W and W3 .......... 26 Exclusions - Coverage W ......................... 26 Exclusions - Coverage W3 ....................... 26 If Other Underinsured Motor Vehicle Coverage Applies - Coverage W .............. 26 If Other Underinsured Motor Vehicle Coverage Applies - Coverage W3 ............ 27 Our Payment Options - Coverages W and W3 ...................................................... 28 PHYSICAL DAMAGE COVERAGES .... 28 Additional Definitions ............................... 28 Insuring Agreements ................................. 29 Supplementary Payments - Comprehensive Coverage and Collision Coverage............. 31 Limits and Loss Settlement - Comprehensive Coverage and Collision Coverage ............... 31 Limits - Car Rental and Travel Expenses Coverage ................................................:.. 33 Nonduplication .........................................: 33 Exclusions ......: ...............:.......::..:............ 33 If Other Physical Damage Coverage or Similar Coverage Applies ....... ..... Financed Vehicle ....................................... 36 Our Payment Options ............................... 36 INSURED'S DUTIES .................................37 Notice to Us of an Accident or Loss.......... 37 Notice to Us of a Claim or Lawsuit ........... 37 Insured's Duty to Cooperate With Us........ 37 Questioning Under Oath ............................ 37 Other Duties Under the Physical Damage Coverages ....................................38 Other Duties Under First Party Coverages, Uninsured Motor Vehicle Coverages, and Underinsured Motor Vehicle Coverages ...38 GENERAL TERMS ....................................39 When Coverage Applies ............................ 39 Where Coverage Applies ........................... 39 Newly Owned or Newly Leased Car......... 39 Changes to This Policy .............................. 40 Premium ............... Renewal ..................................................... 41 Nonrenewal ........... ................ ............ 41 Cancellation ...:.... ............. . 41 Assignment ................................................ 42 Bankruptcy or Insolvency of the Insured.. 42 Concealment or Fraud ........ . 42 Our Right to Recover Our Payments ......... 42 Legal Action Against Us ........................... 42 Choice of Law ........................................... 43 Severability ................................................ 43 THIS POLICY 1. This policy consists of b. any of our agents. a. the most recently issued Declarations 3. We agree to provide insurance according to Page; the terms of this policy: b.- the policy booklet version shown on that Declarations Page; and c. any endorsements that apply, including those listed on,that Declarations Page as well as those issued in connection with any subsequent renewal of this policy. 2. This policy contains all of the agreements between all named insureds and applicants and: a. us; and a. based on payment of premium for the coverages chosen; and b. unless otherwise stated in EXCEP- TIONS, POLICY BOOKLET, AND ENDORSEMENTS on the Declarations Page, in reliance on the following state- ments: (1) The named insured is the sole owner of your car. (2) Neither you nor any member of your household has, within the past three years, had: 3 9838A (a) vehicle insurance canceled or nonrenewed by an insurer; or (b) either: (i) a license to drive; or (ii) a vehicle registration suspended, revoked, or re- fused. (3) Your car is used for pleasure and business. 4. All named insureds and applicants agree by acceptance of this policy that: a. the statements in 3.b. above are made by the named insured or applicant and are true; and b. we provide this insurance on-the basis those statements are true. DEFINITIONS 'd define certain words and phrases below for use throughout the policy:. Each coverage in- cludes additional definitions only for ,use with that coverage. These definitions` apply to the singular, plural, and possessive forms of these words and phrases. , Defined words and phrases are printed in boldface italics. ` . Bodily Injury means bodily injury to a :person and sickness, disease, or death:-that results from it. Car means a land motor vehicle with four or more wheels, designed for use primarily on public roads. It does not include: 1. Any vehicle while located for use as a dwelling or other premises; or 2. A truck-tractor designed to pull any type of trailer. Car Business means a business or job where the purpose is to sell, lease, rent repair, ser- vice, modify, transport, store, or park land mo- tor vehicles or any type of trailer. Fungi means any type or form of fungus or fungi and includes: 1. Mold; 2. Mildew; and 3. Any of the following that are 'produced or released by fungi: a. Mycotoxins; b. Spores; C. Scents; or d..Byproducts. Newly Acquired Car means a car. newly owned by you. A car ceases to be a newly ac- quired car on the earlier of: 1. the effective date and time of apolicy, in- cluding any binder, issued by us or any other company that describes such car as an insured vehicle; or 2. the end of the 14th calendar day immedi- ately following the date such car is deliv- ered to you. If a newly acquired car is not otherwise a (- forded comprehensive coverage or collision coverage by this or any:other ?pnl cy, then this policy will provide Comprehensive Coverage or Collision Coverage for that newly acquired car, subject to a deductible of $500. Any cov- erage provided as a result of this paragraph will -apply only until the end of the 5th calen- dar day immediately following the date the newly acquired car is delivered to you. Non-Owned Car means a car that is in the lawful possession of you or any resident rela- tive and that'neither: 1. is owned by: a. you; 4 9838A b. any resident relative; c. any other person who resides primar- ily in your household; or d. an employer of any person described in a., b., or c. above; nor 2. has been operated by, rented by, or in the possession of: a. you; or b. any resident relative during any part of each of the 31 or more consecutive days immediately prior to the date of the accident or loss. : Occupying means in, on, entering, or exiting. Our means the Company issuing this policy as shown on the Declarations Page. Owned By means: 1. owned by; 2. registered to; or 3. leased, if the lease is written fora period of 31 or more consecutive days, to. Pedestrian means a person who is not occupy- ing: 1. a motorized vehicle; or 2. a vehicle designed to be pulled by a motor- ized vehicle. Person means a human being. Private Passenger Car means: 1. a car of the private passenger type, other than a pickup truck, van, minivan, or sport utility vehicle, designed primarily to carry persons and their luggage; or 2. . a pickup truck., van, minivan, or sport utility vehicle: a. that is not used for: (1) wholesale; or (2) retail pick up or delivery; and b. that has a Gross Vehicle Weight Rating, of 10,000 pounds or less. Resident Relative means a person, other than you, who resides primarily with the first person shown as a named insured on the Declarations Page and who is: 1. related to that named insured or his or her spouse. by blood, marriage, or adoption, including an unmarried and unemancipated child of either who is away at school and otherwise maintains his or her primary residence with that named insured; or 2. a ward or a foster child of that named in- sured, his or her spouse; or a person de- scribed in 1. above. See First Party. Coverages for the definition of Resident Relative used there. Serious injury means a personal injury result- ing in death, serious impairment of body_ func- tion or permanent serious disfigurement. Unless the injury sustained is a serious injury, each person who is bound by the limited tort election shall be precluded from maintaining an action for any noneconomic loss, except that: 1. An individual otherwise bound by the lim- ited tort election who sustains damages in a motor vehicle accident as the conse- quence of the fault of another person may recover damages.as if the individual dam- aged had elected the full tort alternative whenever the person at fault: a. is convicted, or accepts. Accelerated Rehabilitative Disposition (ARD): for driving under the influence of alcohol or a controlled substance in that acci- dent; b. is operating a motor vehicle registered in another state; c. intends to injure himself or another person, provided that an individual does not intentionally injure himself or another person merely because his act 5 9838A or failure to act is intentional or done with his realization that it creates a grave risk of causing injury or the act or omission causing the injury is for the purpose of averting bodily harm to himself or another person; d. has not maintained financial responsi- bility as required by Chapter 17 of Ti- tle 7:5 of the Pennsylvania Consolidated Statutes, - provided that, nothing in this paragraph shall affect the limitation of section 1731(d)(2) of Title 75 of the Pennsylvania Consoli- dated Statutes (relating to availability, scope and amount of coverage); or e. is occupying a vehicle both owned by a resident relative and to which the full tort election applies. 2. An individual otherwise bound. by the - lim- ited tort election shall retain full tort rights with respect to claims against a person in the business of designing, manufacturing, repairing, servicing or otherwise maintain- ing motor vehicles arising out of a defect in such motor vehicle which is caused by or not corrected by an act or omission in the course of such business, other than a defect in a motor vehicle which is operated by such business. 3. An individual otherwise bound by the lim- ited tort election shall retain full tort rights if injured while an occupant of a motor ve- hicle other than a private passenger motor vehicle. State Farm Companies means one or more of the following: 1. State. Farm Mutual Automobile Insurance Company; 2. State Fann Fire and Casualty. Company; and 3. Any of their affiliates. Temporary Substitute Car means a car that is in the lawful possession of the person operating it and that: 1. replaces your car for a short time while your car is out of use due to its: a. breakdown; b. repair; c. servicing; d. damage; or e. theft; and 2. neither you nor the person operating it own or have registered. If a car qualifies as both a non-owned car and a temporary substitute car, then it is consid- ered a temporary substitute car only. Trailer means: 1. only those trailers: a. designed to be pulled by a private pas- senger car; b. not designed to carry persons; and c. while not used as premises for office, store, or display purposes; or 2. a farm implement or farm wagon while being pulled on public roads by a car. Us means the Company issuing this policy as shown on the Declarations Page. We means the Company issuing this policy as shown on the Declarations Page. _1You or Your means the named insured or named insureds shown on the Declarations Page. If a named insured shown on the Decla- rations Page is a person, then "you" or "your" includes the spouse of the first person shown as a named insured if the spouse resides pri- marily with that named insured. 6 9838A Your Car means a vehicle shown under YOUR l . the end of the 30th calendar day immedi- CAR on the Declarations Page. Your Car does ately following the date the car newly not include a vehicle that you no longer own or owned by you is delivered to you; lease. If a car is shown on the Declarations Page un- 2. the date this policy is no longer in force; or der YOUR CAR, and you ask us to replace it with a car newly owned by you, then the car 3. the date you no longer own or lease the car being replaced will continue to be considered being replaced. your car until the earliest of: LIABILITY COVERAGE This policy provides Liability Coverage to the b. a newly acquired car; vehicles for which symbol "A" and a corre- sponding premium are shown on the Declara- tions Page. Additional Definition Insured means: 1. you and resident relatives for: a. the ownership, maintenance, or use of: (1) your car; (2) a newly acquired car; or (3) a trailer; and b. the maintenance or use of: (1) a non-owned car; or (2) a temporary substitute car.; 2. the first personshown as a named insured on the Declarations Page and that named insured's spouse who resides primarily with that named insured for the mainte- nance or use of a car, that is owned by, or -furnished by an employer to, a person who resides primarily in your household, but only if such car is neither owned by, nor furnished by an employer to, the first per- son shown as a named insured on the Dec- larations Page or that person's spouse; 3. any other person for his or her use of a. your car; c. a temporary substitute car; or d. a trailer while attached to a car de- scribed in a., b., or c. above. Such vehicle must. be used within the scope of your consent; and 4. any other person or organization vicari- ously liable for the use of a vehicle by an insured as defined' in 1:, 2., or 3. above, but only for such vicarious liability. This provision applies only if the vehicle is nei- ther owned by, nor hired by, that other per- son or organization. Insured does not include the United States of America or any of its agencies. Insuring Agreement 1. We will pay: a. damages an insured becomes legally liable to pay because of. (1) bodily injury to others; and (2) damage to property caused by an accident that involves. a ve- hicle for which that insured is provided Liability Coverage by this policy; b. attorney fees for attorneys chosen by us to defend an insured who is sued for such damages; and 7 9838A c. court costs charged to an insured and resulting from that part. of a lawsuit: (1) that seeks damages payable under this policy's Liability Coverage; and (2) against which we defend an in- sured with attorneys chosen by us. We have no duty to pay attorney fees and court costs incurred after we deposit in court or pay the amount due under this pol- icy's Liability Coverage. 2. We have the right to: a. investigate, negotiate, and settle any claim or lawsuit; b. defend an insured in any claim or law- suit, with attorneys chosen by us; and c. appeal any award or legal decision for damages payable under this policy's Liability Coverage. Supplementary Payments We will pay, in addition to the damages, fees, and costs described ,in the- Insuring Agree- ment above; the interest, premiums, costs, and expenses listed below, that result from such accident: 1. Interest on damages owed by the insured that accrues: a. before a judgment, where owed by law, but only on that part of the judg- ment we pay; and b: after a judgment. We will not pay in- terest on damages paid or payable by a party other than the insured or us. We have no duty to pay interest that ac- crues after we deposit in court, pay, or of- fer to pay, the amount due under this policy's Liability Coverage; 2. Premiums for bonds, .provided by a com- pany chosen by us, required to appeal a de- cision in a lawsuit against an insured. We have no duty to: a. pay for bonds that exceed this policy's applicable Liability Coverage limit; b. furnish or apply for any bonds; or c. pay premiums for bonds purchased af- ter we deposit in court, pay, or offer to pay, the amount due under this policy's Liability Coverage; and 3. The following costs and expenses if related to and incurred after a lawsuit has been filed against an insured: a. Loss of wages or salary, but not other income, up to $200 for each day an in- sured attends, at our request: (1) an arbitration; (2) a mediation; or (3) a trial of a lawsuit; and b. Reasonable expenses incurred by an. insured at our request other than loss of wages, salary, or other income. The amount of any of the costs or expenses listed' above that are incurred by an in- sured must be reported to us before we will pay such incurred costs or expenses. Limits The Liability Coverage limits for bodily injury are shown on the Declarations Page under "Li- ability Coverage -Bodily Injury Limits - Each Person; Each Accident." The limit shown under "Each Person" is the most we. will pay for all damages resulting from bodily injury to any -one person injured in anyone accident, including all damages sus- tained by other persons as a result of that bod- ily injury. The limit shown under "Each Accident" is the most we will pay, subject to the limit for "Each Person", for all damages resulting from bodily injury to two or more persons injured in the same accident. The Liability Coverage limit for damage to property is shown on the Declarations Page under "Liability Coverage - Property Damage Limit - Each Accident". The limit shown is 8 9838A the most we will pay for all damages resulting from damage to property in any one accident. These Liability Coverage limits are the most we will pay regardless of the number of: 1. insureds; 2. claims made; 3. vehicles insured; or 4. vehicles involved in the accident. Nonduplication We will not pay any damages or expenses under Liability Coverage that have already been paid under Uninsured Motor Vehicle Coverage or Underinsured Motor Vehicle Coverage of any policy issued by the State Farm Companies to you or any resident relative. Exclusions THERE IS NO COVERAGE FOR AN IN- SURED: 1. WHO INTENTIONALLY CAUSES BODILY INJURY OR DAMAGE TO PROPERTY; 2. FOR BODILYINJURY TO: a. YOU; b. RESIDENT RELATIVES; AND c. ANY OTHER PERSON WHO BOTH RESIDES PRIMARILY WITH AN INSURED AND WHO: (1) IS RELATED TO THAT INSURED BY BLOOD, MARRIAGE, OR ADOPTION; OR (2) IS A WARD OR FOSTER CHILD OF THAT INSURED; employee who is neither covered, nor re- quired to be covered, under workers' com- pensation insurance; 5. FOR BODILY INJURY TO THAT IN- SURED'S FELLOW EMPLOYEE WHILE THE FELLOW EMPLOYEE IS IN THE COURSE AND SCOPE OF HIS OR HER EMPLOYMENT. This exclu- sion does not apply to you and resident relatives who are legally liable for bodily injury to fellow employees; 6. FOR DAMAGES ARISING OUT OF THE OWNERSHIP, MAINTENANCE, OR USE OF A VEHICLE WHILE IT IS RENTED TO OR LEASED TO OTHERS BY AN INSURED; 7. FOR DAMAGES ARISING OUT OF THE OWNERSHIP, MAINTENANCE, OR USE OF A VEHICLE WHILE IT IS BEING USED TO CARRY PERSONS FOR A CHARGE. This exclusion does not apply to the use of a private passenger car on a share-the-expense basis; 8. WHILE MAINTAINING OR USING A VEHICLE IN CONNECTION WITH THAT INSUREDS EMPLOYMENT IN OR ENGAGEMENT OF ANY KIND IN A CAR BUSINESS. This exclusion does not apply to: a. you; or b. any resident relative 9. 3. OR FOR THAT INSUREDS INSURER 10 FOR ANY OBLIGATION UNDER ANY TYPE OF WORKERS' COMPENSA- TION, DISABILITY, OR SIMILAR LAW; 4. FOR BODILY INJURY TO THAT IN- SURED'S EMPLOYEE WHICH ARISES OUT OF THAT EMPLOYEE'S EMPLOYMENT. This exclusion does not apply to that insured's household while maintaining or using your car, a newly acquired car, a temporary substitute car, or a trailer;, WHILE THAT INSURED IS VALET PARKING A VEHICLE; WHILE MAINTAINING OR USING ANY VEHICLE OTHER THAN YOUR CAR, A NEWLY ACQUIRED CAR, A TEMPO- RARY SUBSTITUTE CAR, OR A TRAILER IN ANY BUSINESS OR OC- CUPATION OTHER THAN A CAR BUSI- NESS OR -VALET PARKINCi This exclusion does not apply to the mainte- nance or use of a private passenger car; 9 9838A 11. FOR DAMAGE TO PROPERTY WHILE 16. WHO IS AN EMPLOYEE OF THE IT IS: UNITED STATES OF AMERICA OR PRO- a. OWNED BY, ANY OF ITS AGENCIES, IF THE PRO- VISIONS OF THE FEDERAL TORT b. RENTED TO; CLAIMS ACT APPLY. c. USED BY; If Other Liability Coverage Applies d. IN THE CARE OF; OR e. TRANSPORTED BY YOU, A RESIDENT RELATIVE, _ OR THE PERSON WHO IS LEGALLY LI- ABLE FOR THE DAMAGE.- This exclu- sion does not apply to either damage to a residence while rented to. or leas'e&to an insured or damage to a private garage while rented to or leased-to an insured; 12. FOR LIABILITY ASSUMED UNDER ANY CONTRACT OR AGREEMENT; 13. FOR ANY ORDER OF RESTITUTION ISSUED BY A COURT IN A CRIMINAL PROCEEDING OR EQUITABLE AC- TION 14.. WHILE USING A TRAILER WITH A MOTOR VEHICLE. IF THAT INSURED IS NOT PROVIDED LIABILITY COV- ERAGE BY THIS POLICY FOR : THE USE OF THAT MOTOR VEHICLE 15. FOR THE OWNERSHIP, MAINTE- NANCE, OR USE OF ANY VEHICLE WHILE IT IS: a. OFF PUBLIC ROADS AND, BEING PREPARED FOR, USED IN PRAC- TICE, FOR, OR OPERATED IN ANY RACING CONTEST, SPEED CON- TEST, HILL-CLIMBING CONTEST, JUMPING CONTEST, OR ANY SIMILAR CONTEST; OR b. ON A TRACK DESIGNED PRIMAR- ILY FOR RACING OR HIGH SPEED DRIVING. This exclusion does. not apply if the vehicle is being used in connection with an activity other than racing; high speed driving, or any type of competitive driving; OR If two or more Liability Coverages pro- vided by the State Farm Companies to you or any resident relative apply to the same accident, then: a. such Liability Coverage .limits will not be added together to, determine the most that may be paid; and b. the maximum amount that may be paid from all such coverages combined is the single highest applicable' limit pro= vided by any. one of the coverages. - We may choose one or more coverages from which. to male payment. The Liability Coverage provided by this policy applies as primary coverage for the ownership, maintenance; or use of your ear or a trailer attached to it. 1. 2. 10 9838A a. If: (1) this is. the only. Car Policy issued to you, or any resident relative by the 'State Farm Companies that provides Liability Coverage which applies to the 'accident as' primary coverage; and (2) liability coverage' provided by one or .more sources other than the State Farm ;Companies also ap- plies, as primary coverage for the same accident, then we will pay the proportion of damages payable AS, primary that our applicable - limit bears to the sum of our applicable limit and the limits of all other liability, coverage -that apply as primary coverage. b. If: (1) more than one Car Policy issued to you or any resident relative by the State Farm Companies provides Liability Coverage which applies to the accident as primary cover- age; and (2) liability coverage provided by one or more sources other than the State Farm Companies also ap- plies as primary coverage for the same accident, then the State Farm Companies will pay the proportion of damages payable as primary that the maximum amount that may be paid by the State Farm Companies as determined, in L above bears to the sum of such amount and the limits of allother liability, coverage that apply as primary coverage. 3. Except as provided in 2. above, the Liabil- ity Coverage provided by-this policy ap- plies as excess coverage. a. If: (1) this is the only Car Policy issued to you or any, resident relative by the ' State Farm Companies that provides Liability. Coverage which applies to the accident as excess coverage; and (2) liability coverage provided by one or more sources other than the State Farm Companies also ap- plies as ' excess coverage for the same accident, then we will pay the proportion of damages payable as excess that our applicable limit bears to the sum of our -applicable limit and the limits of all other liability coverage that apply as excess coverage. b. If: (1) more than one Car Policy issued to you or any resident relative by the State Farm Companies provides Li- ability Coverage which applies to the accident as excess coverage; and (2) liability coverage provided by one or more sources other than the State Farm Companies also ap- plies as excess coverage for the same accident, then the State Farm Companies will pay, the pro-portion of damages payable as excess that the maximum amount that may, be paid by" the, Siaie Farm Companies as determined in 1. above bears to the sum of such amount and the limits of all other liability coverage that apply as excess coverage., Required Out-of-State Liability Coverage If: 1. an insured is in another state of the United States of America, a territory or possession of the United, States: of America, the Dis- trict of. Columbia; or any province or terri- tory, of Canada,,.I-and as a nonresident becomes subject to its. motor vehicle com- pulsory insurance law, financial, responsi- bility law, or similar law; and 2. this policy does not provide : at least the minimum liability coverage required by such -law 'for such nonresident, then this policy will be interpreted to provide the minimum liability coverage required by such law. This provision does not apply to liability cov- erage required by law for motor.;'carriers of passengers or motor carriers of property. Financial Responsibility Certification When this policy is certified under any law as proof of future financial responsibility, and while required during the policy period; this policy will comply with such law to the extent required. 11 9838A FIRST PARTY COVERAGES The coverages under this section are provided in accordance with and subject''to the Pennsyl- vania Motor Vehicle Financial Responsibility Act, as amended. Additional; Definitions Coverages C2, Q, Z, Y,andF Bodily Injury means, accidental bodily harm to a person and that person's. resulting illness, disease or death.. First Party. Benefits means :benefits paid or payable to an insured under Coverages C2, Q, Z,YorF. Insured means: 1. you and resident relutives and' 2. any otherperson: a. occupying your car or a newly ac- quired car; or b. not occupying. a. -motor vehicle :if in- jured as the result of an accident in- volving your car;- or :a' newly acquired car. A. parked` and unoccupied-motor vehicle is not a motor; vehicle involved in the accident unless it was parked so as to cause unreasonable risk of injury. Motor Vehicle means a vehicle =which. is self- propelled except one which: is propelled: 1. solely by human power; or 2. upon rails. Resident Relative means: 1. your spouse; 2. anyone related to you by blood, marriage or adoption; and 3. a minor in the custody of you, your spouse or a resident relative resident in your household, even if temporarily residing elsewhere. MEDICAL PAYMENTS - CO-VERAGE C2 This policy provides Coverage C2 to the vehi- cles for which symbol "C2" and a correspond- ing premium are shown on the Declarations Page. Insuring Agreement -Coverage C2 We wall pay , for medical expenses for bodily injury to an insured arising: out of the mainte- nance or use of a motor vehicle. Medical expenses are _ expenses, incurred for reasonable" and necessary medical treatment and rehabilitation services. This includes ex- penses =-for 1. hospital,. dental, surgical, psychiatric, psy- chological, osteopathic, ambulance, chiro- practic, riursing and''optometric services; 2. licensed physical therapy, vocational reha- bilitation,, occupational therapy, speech pa- thology and audiology; 3. medications, medical supplies and pros- thetic devices; and 4, nonmedical remedial , care : and.. treatment rendered in accordance with- a recognized religious method of healing. 'Medical expenses-will be paid: 1.' if incurred within 18 months from the date of the accident causing the bodily injury; or 2. without limitation as to time, provided that, within 18 months from the date of the accident causing the bodily injury, it can be determined with reasonable medical probability that further expenses may be incurred as a result of the bodily injury. The amount we will pay for medical expenses is subject to the limitations of Title 75 of the Pennsylvania Consolidated Statutes. 12 9838A EXTRAORDINARY MEDICAL PAY- MENTS - COVERAGE Q- This policy provides Coverage Q to the vehi- cles for which symbol "Q" and a correspond- ing premium are shown on the Declarations Page. Insuring Agreement and Limits- Coverage Q We will pay up to the lifetime aggregate limit of $1,000,000 for those reasonable medical expenses which exceed $100,000. The medi- cal expense must be for bodily injury to an insured caused by accident arising` out of the maintenance or use of a motor'velicle.` Medical expenses are expenses:' incurred for reasonable and necessary medical .treatment and rehabilitation services. This includes .ex- penses for: 1. hospital, dental, surgical, psychiatric, psy- chological,' osteopathic, ambulance, chiro- practic, nursing and optometric services 2. licensed physical therapy, vocational reha- bilitation, occupational therapy; speech pa- thology and audiology; 3. medications, medical supplies and' pros- thetic devices; and 4. nonmedical remedial' eare and treatment rendered in accordance with a recognized religious method ofliealing: Medical expenses will be,paid: 1; if incurred within 18 months from 'the.'date of the accident causing the bodily injury; or 2. without limitation as to time, provided that within 18 months from the date of the ac- cident causing the bodily injury, it can be determined with reasonable medical prob- ability that further expenses may be in- curred as a result of the bodily injury. The most we will pay in any 12 month period beginning 18 months after the date the in- sured's reasonablemedical expenses exceed $100,000 as a result of the bodily injury is $50,000. These expenses must be: 1. for: a. services performed, or b. medical supplies, medication or drugs prescribed by a medical provider licensed-by the state to provide the specific medical 'services; and 2. for diagnosis, direct care or treatment of the bodily injury. The diagnosis; direct care or treatment must be: a. within the standards of good medical practice, and b. not primarily for the convenience of the patient or:medical provider. We have the right to make or obtain an inde- pendent review of the medical expenses and services performed to determine if ,they are reasonable and "necessary for the bodily injury sustained. The amount we will pay for medical expenses is subject to the imitations of Title 75 of the Pennsylvania Consolidated Statutes. REASONABLE MEDICAL EXPENSES DO NOT INCLUDE EXPENSES FOR TREAT- MENT, SERVICES,: PRODUCTS : OR 'PRO- CEDURES THAT ARE . 1.1; o 1. FOR RESEARCH, OR NOT PRIMARILY DESIGNED- TO. SERVE A MEDICAL OR REHABILITATIVE PURPOSE;.OR 2. NOT COMMONLY AND CUSTOMAR- ILY RECOGNIZED THROUGHOUT THE MEDICAL PROFESSIONS AND WITHIN THE UNITED STATES AS AP- PROPRIATE FOR THE TREATMENT OF THE BODILYINJURY. 13 9838A LOSS OF INCOME - COVERAGE Z This policy provides Coverage Z to the vehi- cles for which. "Z" with a number beside it and a corresponding premium are shown on the Declarations Page. "Z" with a number beside it is your coverage symbol. Check your cov- erage symbol with the Coverage Z schedule in this provision for the limits you have chosen. Insuring Agreement - Coverage Z We will pay income loss benefits with respect to bodily injury to an insured,ari sing out of the maintenance or use of a motor vehicle. In- come loss benefits are: I. 2 80% of the insured's actual loss of gross income from work the insured would have performed except for the bodily injury; reasonable expenses actually incurred for: a. hiring a substitute to perform self- employment services to reduce loss of ..''gross income; or b. :hiring special help thereby, enabling the insured to work and reduce loss of gross income. Income loss benefits do not include: 1 2. 3. loss of expected income for any period following the death of an insured; expenses incurred. for services performed following the death of an insured; or any loss of income during the first five working days the insured did not work after the accident because of the bodily injury. .\ Schedule - Coverage Z Coverage Symbol Maximum Payable Per Month Total Maximum Benefits Z1 $1,000 $ 5,000 Z2 1,000 15,000 Z3 1,500 25,000 Z4 2,500 50000 DEATH, DISMEMBERMENT AND LOSS OF. SIGHT - COVERAGE Y This policy provides Coverage Y to the vehi- cles for which "Y" with a number beside it and a corresponding premium are shown on the Declarations Page. "Y" with a number beside it is your coverage symbol. Check your cov- erage symbol with the Coverage Y schedule in this provision for the limits you have chosen. Additional Definition Coverage Y Loss means the loss of: 1. the foot or hand, cut off through or above the ankle_or wrist; or 2. the whole thumb or finger; or 3. all. sight.. Insuring Agreement - Coverage Y We will pay the amount shown in the schedule that applies for death. of, or loss to, an insured.aris- ing out of the maintenance or use of a motor vehi- cle. The death or loss must be the direct result of the accident and not due td any other cause. The death must occur within 24 months from the date of the accident. If the death occurs within 24 hours after the accident, we will pay only the amount that applies to death. Loss must occur within 90 days of the accident. 14 9838A Schedule - Coverage Y Coverage Symbol Y l Y2 Y3 Death $5,000 $10,000 $25,000 Loss of: hands, feet; sight of eyes; one hand & one foot; or one hand or one foot & sight of one eye 5,000 10,000 25,000 one hand or one foot; or sight of one eye 2,500 5,000 12,500 thumb & finger on one hand; or three fingers 1,500 3,000 7,500 any two fingers 1,000 2,000 5,000 Payments of Benefits - Coverage. Y The death benefit shall be paid to the executor or administrator of the insured's estate. FUNERAL BENEFITS - COVERAGE F This policy provides Coverage F to the vehi- cles for which symbol "F" and a corresponding premium are shown on the Declarations Page. Insuring Agreement - Coverage F We will pay for funeral expenses directly re- lated to the funeral, burial, cremation or other form of disposition of the remains of an in- sured. The death must be the result of the ac- cident. The expenses must be incurred within 24 months from the date of the accident. Limits - Coverage C2 The amount of coverage for medical expenses is shown on the Declarations Page under "Medical Payments Coverage - Limit - Each Person". Limits - Coverage Z The most we will pay an insured for income loss benefits per month and in the aggregate are shown in the coverage Z schedule next to your coverage symbol. Limits - Coverage Y The amount we will pay because of the death of the insured is shown under your coverage symbol in the Coverage Y schedule. The maximum amount payable to an insured for all loss, as shown in the, schedule, shall not exceed the death benefit amount shown for your cov- erage symbol. The amount shown in the schedule for death of or loss to the insured is doubled for an insured who, at the time of the accident, is using the vehicle's complete restraint system as recom- mended by the vehicle's manufacturer. Limits - Coverage F The amount of coverage for funeral ex- penses is shown on the Declarations Page under "Funeral Benefits Coverage - Limit - Each Person Limits - Coverages C2, Q, Z, Y, and F These coverages are excess over, but shall not duplicate, any amount paid or payable to or for the insured under any workers' compensation law. Priorities for the Payment of First Party Benefits Coverages C29 Q, Z, Y, and F 15 9838A When more than one policy applies, the person who suffers bodily injury shall re- cover first party benefits against applica- ble insurance coverage in the following order of priority: a. The policy on which the person is a named insured. b. The policy providing coverage be- cause the person is residing in the household of a named insured and is: (1) a spouse or other `relative of a named insured; or (2) a minor in the custody of either a named insured or a relative of a named insured. c. The policy covering the motor vehicle occupied by the injured person at the time of the accident. d. For a person who is not the occupant of a motor vehicle, the policy on any motor vehicle involved in the accident. A parked and unoccupied" motor-vehi- cle is not a motor vehicle involved in the accident unless it was parked so as to cause unreasonable risk of 'injury. 2. THIS POLICY ;DOES NOT APPLY IF THERE IS ANOTHER POLICY AT A HIGHER PRIORITY: LEVEL. Item a. above is considered the highest priority. Item d. is the lowest priority. 3. Subject to.the above, if an insured is enti- tled to first party benefits under more than one coverage, the rnaximuim recovery un- der all coverages for any first party benefit will not, exceed the, amount payable Linder the coverage with the highest limit of 11- ability for that first party benefit. Exclusions.- Coverages C2, Q, Z, Y, and F THERE IS NO COVERAGE FOR BODILY INJURY. 1. TO ANY PERSON WHOSE CON- DUCT CONTRIBUTED TO HIS OR HER BODILY INJURY IN ANY OF THE FOLLOWING WAYS: a. WHILE INTENTIONALLY IN- JURING OR ATTEMPTING TO INJURE HIMSELF, HERSELF OR ANOTHER; b. WHILE COMMITTING A FEL- ONY; OR c. WHILE SEEKING TO ELUDE LAWFUL APPREHENSION OR ARREST BY A LAW EN- FORCEMENT OFFICIAL. 2. TO ANY PERSON WHO KNOW- INGLY CONVERTS A MOTOR VE- HICLE if the bodily injury arises `out of the maintenance or use of the con- verted vehicle. This does not apply to you or any resident relative. 3. TO ANY PERSON WHO OWNS A CURRENTLY REGISTERED' MO- TOR VEHICLE AND DOES NOT HAVE THE REQUIRED _,FINAN- CIAL RESPONSIBILITY, EVEN IF THAT PERSON IS _6CCUPYING-OR STRUCK BY A MOTOR VEHICLE FOR WHICH FINANCIAL RE- SPONSIBILITY IS PROVIDED. This does not apply to you or your spouse while occupying a vehicle insured tun- der the liability coverage of this policy or when struck as a pedestrian. 4. TO ANY PERSONWHILE OPERAT- ING OR OCCUPYING: a. A RECREATIONAL VEHICLE NOT , INTENFDED ., FOR HIGH- WAY USE; OR b, A MOTORCYCLE, MOTOR DRIVEN CYCLE, MOTORIZED PEDALCYCLE OR LIKE TYPE VEHICLE REQUIRED-TO 3E REGISTERED UNDER TITLE 75 OF THE PENNSYLVANIA CON- SOLIDATED STATUTES. Mental or Physical . Examination Cover- ages C2, Q,. Z, Y, and F Whenever the mental or physical condition of a person is material to any 'claim for medical expenses or income loss benefits, a court of competent jurisdiction may order the person to submit. to mental or physical examination by a physician. If a person fails to comply with the order, the court may order that the person be denied benefits until he or she complies. 16 9838A COMBINED BENEFITS - COVERAGE M This policy provides Coverage M to the vehi- cles for which symbol "M" and a correspond- ing premium are shown on the Declarations Page. Insuring Agreement - Coverage M We will pay for bodily injury to an insured arising out of the maintenance or use of a mo- tor vehicle: 1. Medical expenses as payable under Cover- age C2; 2. Income loss benefits as payable under Coverage Z; 3. The benefits as payable under Coverage Y3; and 4. Funeral expenses as payable under Coverage F: Limits - Coverage M 1. The aggregate limit of liability is shown on the Declarations Page under "Combined Benefits Coverage- Limit- Each Person". This is the maximum amount payable for bodily injury to an insured as the result of an accident. 2. The most we will pay to or for an insured is as follows: UNINSURED MOTOR This policy provides -Uninsured Motor Ve- hicle - Coverage U (Stacking Option) to'the vehicles for which symbol "U" and a corre- sponding premium are shown on the Decla- rations Page. This policy provides Uninsured Motor Ve- hicle - Coverage U3 (Non-Stacking Option) to the vehicles for which symbol "UY' and a corresponding premium are shown on the Declarations Page. Benefit Limit Medical Expenses Up to the Aggregate Limit Income Loss Up to the Aggregate Limit Death $25,000 Funeral Expenses Up to $2,500 3. Any amount payable for medical expenses greater than $100,000 shall be excess over any amount paid or payable under Ex- traordinary Medical Payments Coverage Q Time Limitation Coverage M Subject to the limit. of liability: 1. benefits are only payable for expenses and toss incurred up to three years from the date of the accident. 2. ' the death benefit is payable only if death occurs within three years of the date of the accident. Other Provisions - Coverage M Except as amended above, all provisions relating to Coverages -C2, Z; Y, and ° F apply to expense, loss or death benefits of Coverage M. VEHICLE COVERAGES Additional Definitions - Coverages U and U3 Insured means: 1. you; 2. resident relatives; 3. any other person while occupying: a. your car, a temporary substitute car, or a trailer attached to such a car. Such other person is an insured only under the coverage applicable to the vehicle 17 9838A which that person was occupying and such person is not an insured under the coverage applicable to any other -vehicle 'insured by this policy. Such vehicle has to be used within the scope of your consent; or b. a newly acquired car or a trailer at- tached to such a :car. If the newly ac- quired car replaces your car, such other person is an, insured only under the coverage applicable to the vehicle that was replaced If the, newly ac- quired car does not replace.your, car, such other person is an insured. only under the coverage applicable to any one vehicle insured by this policy or any other policy, issued- by us 7-to you. or your spouse. Such car has,to he used within the scope of your, consent. Such other person occupying: a vehicle used to carry persons for a charge is-not an insured; and 4. any person entitled to recover compensa- tory damages as a result of bodily4njury,to an insured as defined in 1., 2., or 3. above. Uninsured :Motor Vehicle means a land motor vehicle: 1. the ownership, maintenance, and use of which is: a. not insured or bonded for bodily injury liability at the time of the accident; or b. insured or bonded for bodily injury. li- ability at the time of the accident; but (1) the limits are less than required by the financial responsibility act of Pennsylvania; or (2) the insuring company: (a) denies that .its. policy provides liability coverage for compen- satory damages that result from the accident; or (b) is or becomes insolvent; or 2. the owner and driver of which remain un- known, and which causes bodily injury to the insured.If there is no physical contact between that land motor vehicle and the insured or the vehicle the insured is occu- pying, then the, facts of the accident, must be corroborated by a disinterested person who witnessed the accident. You, resident relatives, and persons occupying the same vehicle as the insured are not disinterested persons.' Uninsured Motor Vehicle does not include a land motor vehicle 1. whose ownership, maintenance, or use is provided Liability Coverage by this policy; 2. owned: by, rented to, or furnished or avail- able for. the regular use of you or any"resi- dent relative; 3. owned.by, rented to, or operated.by a self- insurer ' under any motor vehicle financial responsibility law, any motor carrier law, or any similar law; 4. designed for use primarily off public roads except while on public roads; or 5. while located for use as a dwelling or other premises. Insuring Agreement - Coverages U and U3 We will pay compensatory damages for bodily injury an insured- is legally entitled to recover from the owner or driver of an uninsured mo- tor vehicle. The bodily injury must be: 1. -sustained. by an insured; and 2. caused by an accident that involves the ownership, maintenance, or use of an un- insured motor vehicle as a motor vehicle. The amount we will pay for damages is subject to the limitations of Title 75 of the Pennsyl.- vania Consolidated Statutes. 18 9838A Consent to Settlement - Coverages U and U3 The insured must inform us of a settlement offer, if any, proposed by or on behalf of the owner or driver of the uninsured motor vehi- cle, and the insured must request our written consent to accept such settlement offer. If we: 1. consent in writing, then the insured may accept such settlement offer. 2. inform the insured in writing that we do not consent, then the insured may not ac- cept such settlement offer and: ' a. we will make payment to the insured in an amount equal to such settlement offer. This payment is considered a payment made by or, on behalf of the owner or driver of the uninsured mo- tor vehicle; and b. any recovery, from or on behalf of the owner or driver of the uninsured motor vehicle shall first be'used to repay us. Deciding Fault and Amount - Coverages U and U3 1. a. The insured and we must agree to the answers to the following two questions: (1) Is the insured; legally, entitled to recover compensatory damages from the owner or driver of the uninsured motor vehicle? (2) If the insured; and we agree that the answer to La.(1) above is yes, then. what is the amount of the compensatory damages that the in- sured is legally entitled.. to recover from the ` owner or driver- of the uninsured motor vehicle? b. if there is no agreement on the answer to either question in l.a. above, then the insured shall: (1) file a lawsuit, in a state or federal court that has jurisdiction, against: (a) us; (b) the owner and driver of the uninsured motor vehicle unless we have consented to a settlement offer proposed by or on behalf of such owner or driver; and (c) any other party or parties who maybe legally liable for the insured's damages; (2) consent to a jury trial if requested by us; (3) agree that we may contest the is- sues of liability and the amount of damages; and - (4) secure a judgment in that action. The judgment mustbe the final re- sult of an actual trial and any ap- peals, if any appeals-are taken. 2. We are not bound by any: a. judgment obtained without our written consent; and b. default judgment against. any person or organization other than us. 3. Regardless of the amount of any award, including: any judgment or default judg- ment, we are not obligated to pay any amount in excess of the` available limits under this coverage of this policy. Limits - Coverages U and U3 The Uninsured Motor Vehicle Coverage limits are shown on the Declarations Page under "Uninsured Motor Vehicle Coverage - Bodily Injury Limits - Each Person, Each Accident". The limit shown under "Each Person" is the most we will pay for all damages resulting from bodily injury to any one insured injured in any one accident, including all damages sus- tained by other insureds as a result of that bod- ily' injury. The limit shown under "Each Accident" is the most we will pay, subject to the limit for "Bach Person", for all damages resulting from bodily injury to two or more insureds injured in the same accident. 19 9838A These Uninsured Motor Vehicle Coverage lim- its are the most we will pay regardless of the number of: 1. insureds; 2. claims made; or 3 uninsured motor vehicles involved in the accident. Limits - Coverage U3 1. If there is more than one ;vehicle insured under this policy, the maximum limit of li- ability available is: a. the limit applicable to the vehicle that was involved in the accident: while oc- cupying yourcar; b. the limit applicable to the vehicle that was replaced while occupying a newly acquired car that replaces your, car; or c. the limit applicable to anyone vehicle insured under this policy while injured as a pedestrian or injured while occu- pying a newly acquired car'that does not replace your car, a temporary?sub- stitute car, or a non-owned car. - I . FOR AN INSURED WHO, WITHOUT OUR WRITTEN CONSENT, SETTLES WITH ANY PERSON OR ORGANIZA- TION WHO MAY BE LIABLE FOR THE BODILYINJURY; 2. FOR. PAIN, SUFFERING OR OTHER NONMONETARY DAMAGES SUS- TAINED BY AN INSURED IF THE BODILY INJURY IS NOT A SERIOUS INJURY AND THE LIMITATION OF SECTION .17.31.(d)(2):, OF TITLE 75 OF THE PENNSYLVANIA CONSOLI- DATED STATUTES APPLIES; 3. FOR. AN, INSURED WHOSE. BODILY INJURY ; RESULTS FROM . THE DIS- CHARGE -OF A FIREARM; 4. TO THE EXTENT IT BENEFITS: a. ANY WORKERS' COMPENSATION OR DISABILITY BENEFITS IN- SURANCE COMPANY, b. A SELF-INSURER UNDER ANY WORKERS' COMPENSATION LAW, DISABILITY BENEFITS LAW, OR SIMILAR LAW; OR c. ANY GOVERNMENT , OR ANY OF ITS POLITICAL SUBDIVISIONS OR AGENCIES; FOR -PUNITIVE OR EXEMPLARY DAMAGES; OR 2. The limits of liability are ; not. increased because more than one vehicle is insured under this policy. 5.. Nonduplication - Coverages U and U3 We will not pay under Uninsured Motor Vehi- cle Coverage any damages that have already been paid to or for the insured:. 1. by or on behalf of any person or organiza- tion who is or may be held legally liable for the bodily injury to the insured, or 2. for bodily injury under Liability Coverage of any policy issued by the State Farm Companies, to you or any resident relative. Exclusions - Coverages U and U3 THERE IS NO COVERAGE: 6 FOR ANY ORDER OF RESTITUTION ISSUED BY A COURT IN A CRIMINAL PROCEEDING OR EQUITABLE AC- TION. Exclusions - Coverage U THERE IS NO COVERAGE FOR AN IN- SURED WHO SUSTAINS BODILY INJURY WHILE OCCUPYING A MOTOR VEHICLE OWNED BY THAT INSURED IF THE VE- HICLE IS NOT INSURED FOR UNIN- SURED MOTOR VEHICLE COVERAGE UNDER THIS POLICY OR ANY OTHER POLICY. 20 9838A Exclusions - Coverage U3 THERE IS NO COVERAGE FOR AN IN- SURED WHO SUSTAINS BODILY INJURY WHILE OCCUPYING A MOTOR VEHICLE OWNED BY YOU OR ANY RESIDENT RELATIVE IF IT IS NOT YOUR CAR OR A NEWLYACQUIRED CAR. This exclusion does not apply to the first per- son shown as a named insured on the Declara- tions Page and that named insured's spouse who resides primarily with that named insured, while occupying a motor vehicle not owned by one or both of them. If Other Uninsured Motor Vehicle Coverage Applies - Coverage U 1. If uninsured motor vehicle coverage for bodily injury is available to an insured from more than one policy provided by us or any other insurer, any coverage applica- ble: a: under this policy shall apply on a pri- mary basis if the insured sustains bod- ily injury while not occupying a motor vehicle or trailer. b. to the vehicle covered under this pol- icy which the insured was occupying when the bodily injury was sustained shall apply on a primary basis. Any other coverage provided by this policy shall apply on an excess basis. c. under this policy shall apply on an ex- cess basis if the insured sustains bod- ily injury while occupying a vehicle other than your car. 2. Subject to item 1 above, if this policy and one or more other policies provide cover- age for bodily injury: a. on a primary basis, we are liable only for our share. Our share is that per- cent of the damages payable on a pri- mary basis that the limit of liability of this coverage bears to the total of all applicable uninsured motor vehicle coverage on a primary basis. b. on an excess basis, we are liable only for our share. Our share is that per- cent of the damages payable on an ex- cess basis that the limit of liability of this coverage bears to the total of all applicable uninsured motor vehicle coverage provided on an excess basis. If Other Uninsured Motor Vehicle Coverage Applies - Coverage U3 1. If Uninsured Motor Vehicle Coverage pro- vided by this policy and one or more other vehicle policies issued to you or any resi- dent relative by one or more of the State Farm Companies apply to the same bodily injury, then: a. the Uninsured Motor Vehicle Coverage limits of such policies will not be added together to determine the most that may be paid; and b. the maximum amount that may be paid from all such policies combined is the single highest applicable limit_provided by any one of the policies. We may choose one or more policies from which to make payment. 2. The Uninsured Motor Vehicle Coverage provided by this policy applies as primary coverage for an insured who sustains bod- ily injury while occupying your car. a. If: (1) this is the only vehicle policy is- sued to you or any resident rela- tive by the State Farm Companies that provides Uninsured Motor Vehicle Coverage which applies to the accident as primary coverage.; and (2) uninsured motor vehicle coverage provided by one or more sources other than the State Farm Com- panies also applies as primary coverage for the same accident, 21 9838A then we will pay the proportion of damages payable as primary that our applicable limit bears to the sum of our applicable limit and the limits of all other uninsured motor vehicle cov- erage that apply as primary coverage. b. If: (1) more: than one vehicle policy is- sued to you or any resident rela- tive by the State Farm Companies provides Uninsured Motor Vehicle Coverage which applies to the ac- cident as primary coverage; and (2) uninsured motor vehicle coverage provided by one or more sources other than the State Farm Com- panies also applies as primary coverage for the same accident, then the State Farm Companies will pay the proportion of damages payable as primary that the maximum amount that may be paid by the State Farm Companies 'as determined in 1. above bears to the sum of such `amount and the limits of all other uninsured motor vehicle coverage that apply as primary coverage. 3. Except as provided in 2. above, the Unin- sured Motor Vehicle Coverage provided by this policy applies as excess. coverage. a. If: (1) this is the only vehicle policy is- sued to you or any resident rela- tive by the State Farm Companies that provides Uninsured Motor Vehicle Coverage which applies to the accident as excess coverage; and other than the State Farm Com- panies also applies as excess cov- erage for the same accident, then we will pay the proportion of damages payable as excess that our applicable limit bears to 'the sum of our applicable limit and the limits of all other uninsured motor vehicle° cov- erage that apply as excess coverage. b. If: (1) more than one vehicle policy is- sued to you or any resident rela- tive by the State Farm Com anies provides Uninsured Motor Vehicle Coverage which applies to the ac- cident as excess coverage; and (2) uninsured motor vehicle coverage provided by one or more sources other than the State Farm Com- panies also applies as excess cov- erage for the same accident, then the State Farm Companies will pay the proportion of damages payable as. excess that the maximum amount that may. be paid. by the State Farm Companies as determined .in 1. above bears to the sum of such amount and the limits of all other uninsured motor vehicle coverage that apply.as excess coverage. Our Payment Options - Coverages U and U3 We may, at our option, make payment to one or more of the following: 1. The insured; 2. The insured's surviving spouse; 3. A parent or guardian of the insured, if the insured is a minor or an incompetent per- son; or (2) uninsured motor vehicle coverage 4. A person authorized by law to receive provided by one or more sources such payment. 22 9838A UNDERINSURED MOTOR VEHICLE COVERAGES This policy provides Underinsured Motor Ve- hicle - Coverage W (Stacking Option) to the vehicles for which symbol "W" and a corre- sponding premium are shown on the Declara- 4. tions Page. This policy provides Underinsured Motor Ve- hicle - Coverage W3 (Non-Stacking Option) to the vehicles for which symbol "W3" and a cor- responding premium are shown on the Decla- rations Page. Additional Definitions - Coverages W and W3 Insured means: 1. you; 2. resident relatives; 3. any. other person while occupying: a. your car, a temporary substitute car, or a trailer attached to such a car. Such other person is an insured only under the coverage] applicable to the vehicle which that person was occupy- ing and such person is not an insured under the coverage applicable to any other vehicle 'insured by this policy. Such vehicle has to be used within the scope of your consent; or b. a newly acquired car or a trailer at- tached to such a car. If the newly ac- quired car replaces your car, such other person is an insured only under the coverage applicable to the vehicle that was replaced. If the newly ac- quired car does not replace your car, such other person is an insured only under the coverage applicable to any one vehicle insured by this policy or any other policy issued by us to you or your spouse. Such car has to be used within the scope of your consent. Such other person occupying a vehicle used to carry persons for a charge is not an insured; and any person entitled to recover compensa- tory damages as a result of bodily injury to an insured as defined in 1., 2., or 3. above. Underinsured Motor Vehicle means a land motor vehicle: 1. the ownership, maintenance, and use of which is either: a. insured or bonded for bodily injury li- ability at the time of the, accident; or b. self=insured under any motor vehicle financial responsibility law, any motor carrier law, or any similar law; and 2. for which the total :limits of insurance and self-insurance for bodily injury liability from all sources: a. are less than the amount of the in- sured's damages; or b. have been reduced by payments to persons other than you and resident relatives to less than the amount of the insured's damages. Underinsured Motor Vehicle does not include a land motor vehicle: 1. whose ownership, maintenance, or use is provided Liability Coverage by this policy; 2. owned by, rented to, or furnished or avail- able for the regular use of you or any resi- dent relative; 3. designed' for use primarily off public roads except while on public roads; 4. while located for use as a dwelling or other premises; or 5. defined as an uninsured motor vehicle under Uninsured Motor Vehicle Coverage of this policy. 23 9838A Insuring Agreement -.Coverages W and W3 We will pay compensatory damages for bodily injury an insured is legally entitled to recover from the owner or driver of an underinsured motor vehicle. The bodily injury must be: 1. sustained by an insured; and 2. caused by an accident that involves the ownership, maintenance, or use of an underinsured motor vehicle as a motor vehicle. We will pay only if the full amount of all avail- able limits of all bodily injury liability bonds, policies, and self-insurance plans that apply to the insured's bodily injury have been used up by payment of judgments or settlements, or have been offered to the insured in writing. The amount we will pay for damages is subject to the limitations of Title 75 of the Pennsyl- vania Consolidated Statutes. Consent to Settlement - Coverages W and W3 The insured must inform us of a settlement offer for the full amount of all available limits pro- posed by or on behalf of the owner, or, driver of the underinsured. motor vehicle, and the insured must request our written consent .to accept such settlement offer. If we: 1. consent in writing, then the insured may accept such settlement offer. 2. inform the insured in writing that we do not consent, then the insured may not ac- cept such settlement offer and: a. we will make payment to the insured in an amount equal to such settlement of- fer. This payment is considered a pay- meat made by or on behalf of the owner or driver of the underinsured motor vehicle; and b. any recovery from or on behalf of the owner or driver of the underinsured motor vehicle shall first be used to re- pay us. Deciding Fault and Amount - Coverages W and W3 1. a. The insured and we must agree to the answers to the following two ques- tions: (1) Is the insured legally entitled. to recover compensatory damages from the owner or. driver of the underinsured motor vehicle? (2) If the insured and we agree that the answer to l.a.(1) above is yes, then what is the amount of the compensatory damages that the in- sured is legally entitled to recover from the owner or driver of the underinsured motor vehicle? b. If there is no agreement on the answer to either question in La. above, then the insured shall: (1) file a lawsuit, in a state or federal court that has jurisdiction, against: (a) -us; (b) the owner and driver of the underinsured motor vehicle unless we have consented to a settlement offer proposed by or on behalf of such owner or driver; and (c) any other party or parties who may be legally liable for the insured's damages; (2) consent to a jury trial if requested by us; (3) agree that we may contest the issues of liability and the amount of dam- ages; and (4) secure a judgment in that action. The judgment must be the final re- sult of an actual trial and any ap- peals, if any appeals are taken. 24 9838A 2. We are not bound by any: a. judgment obtained without our written consent; and b. default judgment against any person or organization other than us. 3. Regardless of the amount of any award., including any judgment or default judg- ment, we are not obligated to pay any amount in excess of the available limits under this coverage of this policy. Limits -Coverages W and W3 1. The Underinsured Motor Vehicle Coverage limits are shown on the Declarations Page under "Underinsured Motor Vehicle Cov- erage - Bodily Injury Limits Each Per- son, Each Accident a. The most we will pay for all damages resulting .from bodily injury to any one insured injured in any one accident, including all damages sustained by other insureds as a result of that bodily injury, is the lesser of: (1) the limit shown under "Each Per- son"; or (2) the amount of all damages result- ing from that bodily injury re- duced. by the sum of all `payments for damages resulting from that bodily injury made by or on behalf of any person or organization who is or may be held. legally, liable for that bodily injury. b. Subject to a. above; the most we will pay for all damages resulting from bodily injury to two or more insureds injured in the same accident is the limit shown under "Each Accident" reduced by the sum of all payments for bodily injury made to all insur- eds by or on behalf of any person or organization who is or may be held legally liable for the bodily injury. 2. These Underinsured Motor Vehicle Cover- age limits are the most we will pay regard- less of the number of: a. insureds; b. claims made; or c. underinsured motor vehicles involved in the accident. Limits - Coverage W3 1 If there is. more than one vehicle insured under this policy, the maximum limit of li- ability available is: a. the limit applicable to the vehicle that was involved in the accident while oc- cupying your car; b. the limit, applicable to the vehicle that was replaced while occupying a newly acquired car that replaces your car; or c. the limit applicable to any one vehicle insured. under this policy while injured as a pedestrian or injured while occu- pying a newly acquired car that does not replace your car, a temporary sub- stitute car, or a non-owned ear. 2. The limits of liability are not increased because more, than one vehicle is insured under this policy. Nondu.plication - Coverages W and W3 We will not pay under Underinsured Motor Vehicle Coverage any damages that :have al- ready been paid to or for the insured: 1. by or on behalf of any person or organiza- tion who is or may be held legally liable for the bodily injury to the insured, or 2. for bodily ;injury under Liability Coverage of any policy issued by the State Farm Companies to you or any resident relative. 25 9838A Exclusions - Coverages W and W3 THERE IS NO COVERAGE: 1. FOR AN INSURED WHO, WITHOUT OUR WRITTEN CONSENT, SETTLES WITH ANY PERSON OR ORGANIZA- TION WHO MAY BE LIABLE FOR THE BODILYINJURY; 2 3 FOR PAIN, SUFFERING OR OTHER NONMONETARY DAMAGES SUS- TAINED BY AN INSURED IF THE BODILY INJURY IS NOT A SERIOUS INJURY AND THE LIMITATION OF SECTION 1731(d)(2) OF TITLE .75 OF THE PENNSYLVANIA CONSOLIDATED STATUTES APPLIES; FOR AN INSURED WHOSE BODILY INJURY RESULTS FROM THE DIS- CHARGE OF A FIREARM; 4. TO THE EXTENT IT BENEFITS: a. ANY WORKERS' COMPENSATION OR DISABILITY` BENEFITS IN- SURANCE COMPANY, b. A SELF-INSURER UNDER ANY WORKERS' COMPENSATION LAW, DISABILITY BENEFITS LAW, OR SIMILAR LAW, OR, c. ANY GOVERNMENT OR ANY OF ITS POLITICAL SUBDIVISIONS OR AGENCIES; 5. FOR PUNITIVE OR ` EXEMPLARY DAMAGES; OR 6. FOR ANY ORDER OF RESTITUTION ISSUED BY A COURT IN A CRIMINAL PROCEEDING OR EQUITABLE AC- TION. Exclusions - ('overage W THERE IS NO COVERAGE FOR AN IN- SURED WHO SUSTAINS BODILYINJURY WHILE OCCUPYING A MOTOR VEHICLE OWNED BY THAT INSURED IF THE VE- HICLE IS NOT INSURED FOR UNDERIN- SURED MOTOR VEHICLE COVERAGE UNDER THIS POLICY OR ANY OTHER POLICY. Exclusions - Coverage W3 THERE. IS NO COVERAGE FOR AN IN- SURED WHO SUSTAINS BODILY INJURY WHILE OCCUPYING A MOTOR VEHICLE OWNED BY YOU OR. ANY RESIDENT RELATIVE IF IT IS NOT YOUR CAR OR A NEWLYACQUIRED CAR. This exclusion does not apply to the first person shown as a named insured on the Declarations Page and that named insured's spouse who resides primarily with that named insured, while occupying a motor vehicle not., owned by one or both of them. If Other Underinsured Motor Vehicle Cov- erage Applies Coverage W 1. If underinsured motor vehicle coverage for bodily injury is available to an in- sured from more than 'one policy pro- vided by us or any other, insurer, any coverage applicable: a. under this policy shall apply on a pri- mary basis if the insured sustains bod- ily injury while not occupying a motor vehicle or trailer. b. to the vehicle covered under this pol- icy which the insured was occupying when the bodily injury was sustained shall apply on a primary basis. Any other coverage provided by this policy shall apply on an excess basis. c. under this policy shall apply on an ex- cess basis if the insured sustains bod- ily injury while occupying a vehicle other than your car. 2. Subject to item I above, if this policy and one or more other policies provide cover- age for bodily injury: a. on a primary basis, we are liable only for our share. Our share is that per- cent of the damages payable on a pri- mary basis that the limit of liability of this coverage bears to the total of all 26 9838A applicable underinsured motor vehicle coverage on a primary basis. b. on an excess basis, we are liable only for our share. Our share is that per- cent of the damages payable on an ex- cess basis that the limit of liability of this coverage bears to the total of all applicable underinsured motor vehicle coverage provided on an excess basis. If Other Underinsured` Motor Vehicle Cov- erage Applies - Coverage W3 1. If Underinsured Motor Vehicle Coverage provided by this, , policy and one or more other vehicle policies issued to you or any resident relative by one or more of the State Farm Companies apply to the same bodily injury, then: a. the Underinsured Motor Vehicle Cov- erage limits of such policies will not be added together to determine the most that may be paid; and b. the maximum amount that may be paid from all such policies combined is the single highest applicable limit provided by any one of the policies. We may choose one or more policies from which to make payment. 2. The Underinsured Motor Vehicle Coverage provided by this policy applies as primary coverage for an insured who sustains bod- ily injury while occupying your car a. If: (1) this is the only vehicle policy is- sued to you,,or any resident rela- tive by the State Farm Companies that provides Underinsured Motor Vehicle Coverage which applies to the accident as primary coverage; and (2) underinsured motor vehicle cover- age provided by one or more sources other than the State Farm Companies also applies as primary coverage for the same accident, then we will pay the proportion of dam- ages payable as primary that our applica- ble limit bears to the sum of our applicable limit and the limits of all other underinsured motor vehicle coverage that apply as primary coverage. b. If: (1) more than one vehicle policy is- sued to you or any resident rela- tive by the State Farm Companies provides Underinsured Motor Ve- hicle Coverage which applies to the accident. as primary coverage; and (2) underinsured motor vehicle cover- age provided by one or more sources other than the State Farm Companies also applies as primary coverage for the same accident, then the State Farm Companies will pay the proportion of damages payable as primary that the maximum amount that may be paid by the State Farm Companies as determined in 1. above bears to the sum of such amount and the limits of all other underinsured motor vehicle coverage that apply as primary coverage. 3. Except as provided in 2. above, the Under- insured Motor Vehicle Coverage provided by this policy applies as excess coverage. a. I£ (1) this is the only vehicle policy is- sued to. you or any resident'rela- tive by the State Farm Companies that provides Underinsured Motor Vehicle Coverage 'which' applies to the accident as excess coverage; and (2) underinsured motor vehicle cover- age provided by one or more sources other than the State Farm Companies also applies as excess coverage for the same accident, 27 9838A then we will pay the proportion of damages payable as excess that our applicable limit bears to the sum of our applicable limit and the limits of all other underinsured motor ve- hicle coverage that apply as excess coverage. b. If: (1) more than one vehicle policy issued to you or any resident relative by the State Farm Companies provides Underinsured Motor Vehicle Cover- age which applies to the accident as excess coverage; and (2) underinsured motor vehicle cover- age provided by one or more sources other than the State Farm C.'ompanies also applies as excess coverage for the same accident, then the State Farm Companies will pay the proportion of damages payable as ex- cess that the maximum amount that may be paid by the State Farm Companies as determined in 1. above bears to the sum of such amount and the limits of all other un- derinsured motor vehicle coverage that ap- ply as excess coverage. Our Payment Options - Coverages W and W3 We may, at our option, make payment to one or more of the following: 1. The insured, 2. The insured's surviving spouse; 3. A parent or guardian of the insured, if the insured is a minor or an incompetent per- son; or 4. A person authorized by law to receive such payment. PHYSICAL DAMAGE COVERAGES The physical damage coverages are Com- Additional Definitions prehensive Coverage, Collision, Coverage, Emergency Road Service Coverage, and Car Covered Vehicle means: Rental and Travel Expenses Coverage. 1. your car; This policy provides: 2. a newly acquired car; 1. Comprehensive Coverage if "D"; 3. a temporary substitute car; 2. Collision Coverage if "G"; 4. a camper that is designed to be mounted on a 3. Emergency Road Service Coverage if "H"; pickup truck and shown on the Declarations Page; 4. Car Rental and Travel Expenses Coverage if 5 a non-owned car while it is: to the vehicles for which the corresponding sym- bols and premiums are shown on the Declara- tions-Page. If a deductible applies to Comprehensive Cov- erage, then it is shown on the Declarations Page. The deductible that applies to Collision Coverage is shown on the Declarations Page. a. being driven by an insured, or b. in the custody of an insured if at the time of the loss it is: (1) not being driven; or (2) being driven by a person other than an insured and being occu- pied by an insured; and 28 9838A 6. a non-owned trailer and a non-owned c. an employer of any person described camper while it is being used by an in- in a. or b. above; nor sured; 2. has been used by, rented by, or in the pos- including its parts and its equipment that are session of an insured during any part of common to the use of the vehicle as a vehicle. each of the 31 or more consecutive days However, parts and equipment of trailers and immediately prior to the date of the loss. campers must be securely fixed as a pennanent Non-Owned Trailer means a trailer that is in part of the trailer or camper. the lawful possession of an insured and that Daily rental charge means the sum of: neither: 1. the daily rental rate; 2. mileage charges; and 3. related taxes. Insured means you and resident relatives. Loss means: 1. direct, sudden, and 'accidental damage to; or 2. total or partial theft of a covered vehicle. Loss does not include any reduction in the value of any covered vehicle after it has been repaired, as compared to its value before it was damaged. Loss Caused By Collision means a loss caused by: 1. a covered vehicle hitting. or being hit by another vehicle or other object; or 2. the overturning of a covered vehicle. Any loss caused by missiles, falling objects, windstorm, hail, fire, explosion, earthquake, water, flood, total or partial theft, malicious mischief, vandalism, riot, civil commotion, or hitting or being hit by a bird or an animal is not a Loss Caused By Collision. Non-Owned Camper means a camper de- signed to be mounted on a pickup truck that is in the lawful possession of an insured and that neither: - 1. is owned by: a. an insured, b. any other person who resides primar- ily in your household; or c. an employer of any person described in a. orb. above; nor 2. has been used by rented by, or in the pos- session of an insured during any part of each of the 31 or more consecutive days immediately prior to the date of the loss. Insuring Agreements 1. Comprehensive Coverage We will pay: a. for loss; except loss caused by colli- sion, to a covered vehicle; and b. transportation expenses incurred by an insured as a result of the total theft of your car or::a newly acquired car. These transportation expenses are payable: (1) during the period that: (a) starts on the date you report the theft to us; and (b) ends on the earliest of. 1. is owned by: a. an insured; b. any other person who resides primar- ily in your household; or (i) the date the vehicle is re- turned to your possession in a drivable condition; (ii) the date -_we offer to pay you for the loss if the ve- hicle has not yet been re- covered; or 29 9838A (iii) the. date we offer to pay 4. you for the loss if the ve- hicle is recovered, but is a total loss as determined by us, and (2) during the period that: (a) starts on the date the vehicle is left at a repair facility if the stolen vehicle is recovered, re- turned to your possession in a drivable condition, and has un- repaired damage that resulted from the total theft; and (b) ends on the date the vehicle is repaired. These transportation expenses must, be reported to us before we will pay such incurred expenses. 2. Collision Coverage We will pay for loss caused by collision to a covered vehicle. Car Rental and Travel Expenses Coverage a. Car Rental Expense We will pay the daily rental charge in- curred when you rent a car from a car business while your car or a newly acquired cards: (1) not drivable; or (2) being repaired as a result of a loss which would be payable under Comprehensive Cover- age or Collision Coverage. We will pay the daily rental charge in- curred during a period that: (1) starts on the date: (a) the vehicle is not drivable as a result of the loss; or (b) the vehicle is left at a repair facility if the vehicle is driv- able; and 3. Emergency Road Service Coverage We will pay the fair cost incurred by an in- sured for- a. up to one hour of labor to repair a cov- ered vehicle at the place of its break- down; b. towing to the nearest repair facility where necessary repairs,-can- be made if a covered vehicle is not drivable; c. towing a covered vehicle out of a loca- tion where it is stuck if the vehicle is on or immediately next to a public road; d. delivery of gas, oil, battery, or tire nec- essary to return a covered vehicle to driving condition. We do not pay the cost of the gas, oil, battery, or tire; and e. up to one hour of labor for locksmith services to unlock a covered vehicle if its key is lost, stolen, or locked inside the vehicle. (2) ends on the earliest of: (a) the date the vehicle has been f repaired or replaced; (b) the date we offer to pay you for the loss if the vehicle is repair.- able but you choose to delay re- pairs; or (c) five days after we offer to pay you for the loss. if the vehicle is: (i) a total loss as determined by us; or (ii) stolen and not recovered. The amount of any such daily rental charge incurred by you must be re- ported to us before we will pay such amount. b. Travel Expenses We will pay expenses for commercial transportation, lodging, and meals if your car or a newly acquired car is not 30 9838A drivable as a result of a loss which would be payable under Comprehensive Cover- age or Collision Coverage. The loss must occur more than 50 miles from your home. We will only pay these expenses if they are incurred by: (1) an insured during the period that: (a) starts after the loss occurs; and (b) ends on the earlier of: (1) the insured's arrival at his or her destination or home if the vehicle is left behind for repairs; or (ii) the repair of the vehicle if the insured waits for re- pairs before. continuing on to his or her destination or returning, home; and (2) you, or any person you choose, to travel to retrieve the vehicle and drive it to either, the original desti- nation or your home if the vehicle was left behind for repairs. These expenses must.be reported to us before we will pay such incurred ex- penses. c. Rental Car - Repayment of De- ductible Expense We will pay the comprehensive de- ductible or collision deductible an in- sured is required to pay the owner of a car rented from a car business. 1. tow the covered vehicle immediately after the loss: a. for a reasonable distance from the lo- cation of the loss to any one repair fa- cility chosen by an insured or the owner of the covered vehicle, if the covered vehicle is not drivable; or b to any one repair facility or commer- cial storage facility, neither of which was chosen by an insured or the owner of the covered vehicle. We will also pay reasonable expenses incurred to tow the covered vehicle for a reason- able distance from this facility to any one repair facility chosen by an in- sured or the owner of the covered ve- hicle, if the covered vehicle is not drivable. 2. store the cov..ered vehicle, if it is not driv- able immediately after the loss, at: a. any one repair facility or commercial storage facility, neither of which was chosen by an insured or the owner of the covered vehicle; and b. any one repair facility chosen by the owner of the covered vehicle, and we determine such vehicle is a total loss. If the owner of . the covered vehicle con- sents, then we inay,move the covered vehi- cle at our expense, to reduce storage costs. If the owner of the covered vehicle does not consent, then we-wil pay only the stor- age costs that would have resulted if we had moved, the damaged covered vehicle, and Supplementary Payments - Comprehensive Coverage and Collision Coverage 3 If Symbol "D" is shown on the Declarations Page and the corresponding. covered vehicle sustains loss- for which we make a payment under Comprehensive Coverage, or if Symbol "G" is shown on the Declarations. Page and the corresponding covered vehicle sustains loss for which we make a payment under Collision Coverage, then we will pay reasonable ex- penses incurred to: clean up debris from the covered vehicle at the location of the loss. The most we will pay to clean up the debris is $250 for any one loss. Limits and Loss Settlement Comprehen- sive Coverage and Collision Coverage 1. We have the right to choose to settle with you or the owner of the covered vehicle in one of the following ways: 31 9838A a. Pay the cost to repair the covered ve- hicle minus any applicable deductible. (1) We have the right to choose one of the following to determine the cost to repair the covered vehicle: (a) The cost agreed to by both the owner of the covered vehicle and us; (b) A bid or repair estimate ap- proved by us, or (c) A repair estimate that is writ- ten based upon or adjusted to: (i) the prevailing competitive price; (ii) the lower of paintless dent repair pricing established by an agreement we have with a third party or the paintless dent repair price that is competitive in the market; or' (iii) a combination of (1) and (ii) above. The prevailing competitive price means prices charged by a ma- jorty, of the repair market in the area where the covered vehicle is to be repaired as determined by a survey made by us. If asked, we will identify some facilities that will perform the repairs at the prevailing competitive price. The estimate will include parts suffi- cient to restore the covered vehi- cle to its pre-loss condition. You agree with us that the repair estimate may include new, used, recycled, and reconditioned parts. Any of these parts may be either original equipment manufacturer parts or non-original equipment manufacturer parts. You also agree that replacement glass need not have any insignia, logo, trademark, etching, or other marking that was on the replaced glass. (2) The cost to repair the covered ve- hicle does not include any reduc- tion. in the value of the covered vehicle after it has been repaired, as compared to its value before it was damaged. (3) If the repair or replacement of a part results in betterment of that part, then you or the owner of the covered vehicle must pay for the amount of the betterment. (4) If you and we agree, then wind- shield -glass will be repaired in- stead of replaced. b. Pay the actual cash value of the cov- ered vehicle minus any applicable de- ductible. (1) The owner of the covered vehicle and we must agree upon the actual cash value of the covered vehicle. If there is disagreement as to the actual cash value of the covered'; vehicle, then the disagreement will be resolved by appraisal upon written request of the owner or us, using the following procedures: (a) The owner and we will each select a competent appraiser. (b) The two appraisers will select a third competent appraiser. If they are unable to agree on a third appraiser within 30 days, then either the owner or we may petition a court that has jurisdiction to select the third appraiser. (c) Each party will pay the cost of its own appraiser, attorneys, and expert witnesses, as well as any other expenses incurred 32 9838A by that party. Both parties will share equally the cost of the third appraiser. (d) The appraisers shall only de- termine the actual cash value of the covered vehicle. Ap- praisers shall have no author- ity to decide any other questions of fact, decide any questions of law, or conduct appraisal,,. on a class-wide or class-representative basis. (e) A written appraisal that is both agreed upon: by and signed by any two appraisers,. and that also contains an explanation of how they, arrived at their ap- praisal; will be binding on the owner of the covered vehicle and us. (f) We do not waive any of our rights by submitting to an ap- praisal: (2) The damaged covered vehicle must be given to us in exchange for our payment, unless we agree that the owner may keep it. If the owner keeps the covered vehicle, then our payment will be reduced by the value of the covered vehicle after the loss. c. Return the stolen covered vehicle to its owner and pay, as described in La. above, for any 'direct, sudden, and ac- cidental damage that resulted from the theft. 2. The most we will pay for transportation ex- penses under ` Comprehensive Coverage is $25 per day subject to an aggregate limit of $750 per loss. 3. The most we will pay for loss to a non- owned trailer or a non-owned camper is $2,500. Limits - Car Rental and Travel Expenses Coverage 1. Car Rental Expense The limit for Car Rental Expense is shown on the Declarations Page under "Limit - Car Rental Expense - Each Day, Each Loss". a. The limit shown under `Bach Day" is the most we will pay for the daily rental charge. If: (1) a dollar amount is shown, then we will pay the daily rental charge up to that dollar amount; (2) a percentage amount is shown, then we will pay that percentage of the daily rental charge. b. Subject to the "Each Day" limit, the limit shown under "Each Loss" is the most we will pay for Car Rental Ex- pense incurred as a result of any one loss. 2. Travel Expenses The most we will pay for Travel Expenses incurred by all insureds as a result of any one loss is $500. 3. Rental Car - Repayment of Deductible Expense The most we will pay for Rental Car - Re- payment of Deductible Expense incurred as a result of any one loss is $500. Nonduplication We will not pay for any loss or expense under the Physical Damage Coverages for which the insured or owner of the covered vehicle has already received payment from, or on behalf of, a party who is legally liable for the loss or ex- pense. Exclusions THERE IS NO COVERAGE FOR: 1. ANY COVERED VEHICLE THAT IS: 33 9838A a. INTENTIONALLY DAMAGED; OR b. STOLEN BY OR AT THE DIRECTION OF AN IN- SURED; 2. ANY COVERED VEHICLE WHILE IT IS RENTED TO OR LEASED TO OTH- ERS BY AN INSURED; 3. ANY COVERED VEHICLE WHILE IT IS USED TO CARRY PERSONS FOR A CHARGE. This exclusion does not apply to the use of a private passenger car on a share-the-expense basis; 4. ANY COVERED VEHICLE DUE TO: a. THEFT; b. CONVERSION; c. EMBEZZLEMENT; OR d. SECRETION BY AN INSURED, A CONSIGNEE, AN AGENT OF A CONSIGNEE, OR A PER- SON WHO OBTAINS POSSESSION OF THE COVERED VEHICLE WITH THE PERMISSION OF A CONSIGNEE OR AGENT OF A CONSIGNEE; 5. LOSS TO YOUR CAR OR A NEWLY ACQUIRED CAR IF AN INSURED VOLUNTARILY RELINQUISHES POS- SESSION OF THAT CAR TO A PERSON OR ORGANIZATION , UNDER AN AC- TUAL OR PRESUMED SALES AGREEMENT; 6. ANY COVERED VEHICLE TO THE EX- TENT OUR PAYMENT WOULD BENEFIT ANY CARRIER OR OTHER BAILEE FOR HIRE THAT IS LIABLE FOR LOSS TO SUCH COVERED VEHICLE; 7. LOSS TO ANY COVERED VEHICLE DUE TO FUNGI. THIS APPLIES RE- GARDLESS OF WHETHER OR NOT THE FUNGI RESULT FROM A LOSS THAT IS PAYABLE UNDER ANY OF THE PHYSI- CAL DAMAGE COVERAGES. WE WILL ALSO NOT PAY FOR ANY TESTING OR REMEDIATION OF FUNGI, OR ANY ADDITIONAL COSTS REQUIRED TO REPAIR ANY COVERED VEHICLE THAT ARE DUE TO THE EXISTENCE OF FUNGI; 8. LOSS TO ANY COVERED VEHICLE THAT RESULTS FROM: a. NUCLEAR REACTION; b. RADIATION OR RADIOACTIVE CONTAMINATION FROM ANY SOURCE; OR c. THE ACCIDENTAL OR INTEN- TIONAL DETONATION OF, OR RELEASE OF RADIATION FROM, ANY NUCLEAR OR RADIOAC- TIVE DEVICE; 9. LOSS TO ANY COVERED VEHICLE THAT RESULTS FROM THE TAKING OF OR SEIZURE OF THAT COVERED VEHICLE BY ANY GOVERNMENTAL AUTHORITY; 10. LOSS TO ANY COVERED VEHICLE THAT RESULTS FROM WAR OF ANY KIND; 11. YOUR CAR WHILE SUBJECT TO ANY: a. LIEN AGREEMENT; b. RENTAL AGREEMENT; c. LEASE AGREEMENT; OR d. SALES AGREEMENT NOT SHOWN ON THE DECLARA- TIONS PAGE; 12. ANY NON-OWNED CAR WHILE IT IS: a. BEING MAINTAINED OR USED BY ANY PERSON WHILE THAT PERSON IS EMPLOYED IN OR ENGAGED IN ANY WAY IN A CAR BUSINESS; OR b. USED IN ANY BUSINESS OR OC- CUPATION OTHER THAN A CAR BUSINESS. This exclusion (12.b.) does not apply to a private passenger car; 34 9838A 13. ANY PART OR EQUIPMENT OF A COVERED VEHICLE -IF THAT PART OR EQUIPMENT: 16 a. FAILS OR IS DEFECTIVE; OR b. IS DAMAGED AS A DIRECT RE- SULT OF: (1) WEAR AND TEAR; (2) FREEZING; OR (3) MECHANICAL, ELECTRICAL, OR ELECTRONIC BREAK- DOWN OR MALFUNCTION OF THAT PART OR EQUIPMENT. This exclusion does not apply if the- loss is the result of theft of the covered vehicle; 14. ANY PART OR EQUIPMENT: a. THAT IS NOT LEGAL FOR USE IN OR ON THE COVERED VEHICLE IN THE JURISDICTION WHERE THE COVERED VEHICLE IS REG- ISTERED;.OR . b. THE USE OF WHICH IS NOT LE- GAL IN THE JURISDICTION WHERE THE COVERED VEHICLE IS REGISTERED BECAUSE OF HOW OR WHERE THAT PART OR EQUIPMENT IS INSTALLED IN OR ON THE COVERED VEHICLE. However, if there is a legal version of the part or equipment that is necessary for the safe operation of the covered vehicle, then we will pay the cost that we would other- wise have paid to repair the vehicle with the legal version of the part or equipment. We will not pay any cost necessary to modify the vehicle for installation of the legal version of the part or equipment; 15. TIRES. This exclusion does not apply if: a. loss is caused by missiles, falling ob- jects, windstorm, hail, fire, explosion, earthquake, water, flood, total or par- tial theft, malicious mischief, vandal- ism, riot, civil commotion, or hitting or being hit by a bird or an animal; or b. loss caused by collision to another part of the covered vehicle causes loss to tires; REMOVABLE PRODUCTS USED FOR STORAGE OF AUDIO, VIDEO, OR OTHER DATA, INCLUDING BUT NOT LIMITED TO TAPES, DISCS, AND MEMORY CARDS, NOR IS THERE COVERAGE FOR THE RECONSTRUC- TION OF DATA CONTAINED THEREIN; 17. ANY EQUIPMENT USED TO DETECT OR INTERFERE WITH SPEED MEAS- URING DEVICES; 18. A CAMPER, INCLUDING ITS PARTS AND ITS EQUIPMENT, THAT IS: a. DESIGNED TO BE MOUNTED ON A PICKUP TRUCK; b. OWNED BYAN INSURED; AND c. NOT SHOWN ON THE DECLARA- TIONS PAGE; OR 19. ANY COVERED VEHICLE WHILE IT IS: a. BEING PREPARED FOR, USED IN PRACTICE FOR, OR OPERATED IN ANY RACING CONTEST, SPEED CONTEST, HILL-CLIMBING CON- TEST, JUMPING CONTEST, OR ANY SIMILAR CONTEST; OR b. ON A TRACK DESIGNED PRIMAR- ILY FOR RACING OR HIGH SPEED DRIVING This exclusion does' not apply if the vehicle is being used in connection with an activity other than racing, high speed driving, or any type of competitive driving. If Other Physical Damage Coverage or Similar Coverage Applies I. If the same loss or expense is payable un- der more than one of the physical damage coverages provided by this policy, then only the one coverage that pays the most for that loss or expense applies. 35 9838A 2. If any of the physical damage coverages However, if this policy is cancelled or non- provided by this policy and one or more other policies issued to an insured by one renewed, then we will provide coverage for the creditor' i t t il or more of the State Farm Companies ap- s n eres unt we notify the creditor of the termination of such cov- ply to the same loss or expense, then only erage. This coverage for the creditor's in- one policy applies. We will select a policy terest is only provided for a loss that would that pays the most for the loss or expense. have been payable to you if this policy had 3. The physical damage coverages provided not been cancelled or nonrenewed. The by this policy apply as primary coverage date such termination is effective will be at for a loss to your car. least 10 days after the date we mail or elec- If similar coverage provided by one or tromcally transmit a notice of the termina- tion to the creditor. The mailing or more sources other than the State Farm electronic transmittal of the notice will be Companies also applies as primary cover- sufficient proof of notice. age. for the same loss or expense, then the State Farm Companies will pay the pro- 2• If we pay such creditor, then we are enti- portion of the loss or expense payable as tied to the creditor's right of recovery primary that the maximum amount that against you to the extent of our payment. may be paid by the State Farm Companies Our right of recovery does not impair the bears to the sum of such amount and the creditor's right to recover the full amount limits of all other similar coverage that ap- of its claim.- plies as primary coverage.; 4. Except as provided in 3. above, the physi- Our Payment Options cal damage coverages provided by this 1• Comprehensive Coverage and Collision policy apply as excess coverage. Coverage If similar coverage provided by one or a. We may, at our option, make payment more sources other than the State Farm to one or more of the following for Companies also applies as excess cover- loss to a covered vehicle owned by age fore the same loss or expense, then the you: State Farm. Companies will pay the pro- (1) You; portion of the loss or expense payable as (2) The repairer; or excess that the maximum amount that may be paid by the State Farm Companies (3) A creditor shown on the Declara- bears to the sum of such amount and the terns Page, to the extent of its in- limits of all other similar coverage that ap- plies as excess coverage. b. We may, at our option, make payment Financed Vehicle to one or more of the following for loss to a covered vehicle not owned by 1. If a creditor is shown on the Declarations you: Page, then any Comprehensive Coverage (1) You; or Collision Coverage provided by this policy applies to that creditor's interest in (2) The owner of such vehicle; your car. Coverage for the creditor's (3) The repairer; or interest is only provided for a loss that is (4) A creditor to the extent of its in- payable to you. , terest. 36 9838A 2. Emergency Road Service Coverage and Car Rental and Travel Expenses Coverage We may, at our option, make payment to one or more of the following: a. You, b. The insured who incurred the expense; or c. Any party that provided the service for which payment is owed. INSURED'S DUTIES I Notice to Us of an Accident or Loss b. The insured must not, except at his or The insured must give us or one of our her own cost, voluntarily: agents, notice of the accident or loss as (1) make any payment to others; or soon as reasonably possible. The notice must give us: (2) assume any, obligation to others 2. 3. a. your name; unless authorized by the terms of this policy b. the names and addresses of all persons involved in the accident or loss; c. Any person or organization` making claim under this policy must, when we c. the hour, date, place, and facts of the require, give us proof of loss on forms accident or loss; and ' we furnish. This does not apply under d. the. names and addresses of witnesses the First Party Coverages if we fail to supply the forms within 10 days after to the accident or loss. receiving the notice of claim. Notice to Us of a Claim or. Lawsuit 4, Questioning Under Oath a. If a claim: is made against an insured, Under. then that insured must immediately send us every demand, notice, and a. Liability Coverage, each insured; claim received. b. First Party Coverages, Uninsured Mo- b. If a lawsuit is filed against an insured for Vehicle Coverages, and, Underin- , then that insured must immediately send sured Motor Vehicle Coverages, each us every summons and legal process re- insured, or any other person or or- ceived.. ganization making claim or. seeking payment; and Insured's Duty to Cooperate With Us c. Physical Damage Coverages, each in- a. The insured must cooperate with us sured or owner of a covered vehicle and, when asked, assist us in: , or any Other person Or organization (1) making. settlements; making claim:. or seeking payment; (2) securing and giving evidence; and must, at our option, submit to- an examina- tion under oath, provide a statement under (3) attending, and getting. witnesses to oath, or do both, as reasonably often as we attend, depositions, hearings, and require. Such person or organization must trials. answer questions under oath, asked by 37 9838A anyone we name, and sign copies of the answers. We may require each person or organization answering questions under oath to answer the questions with only that person's or organization's legal representa- tive, our representatives, any person or persons designated by us to record the questions and answers, and no other per- son present. 5. Other Duties Under the Physical Damage Coverages When there is a loss, you or the owner of the covered vehicle must: a. protect the covered vehicle from addi- tional damage. ` We will pay any rea- sonable : expense incurred to do so that is reported to us; b. make a prompt report to the police when the loss is the result of theft; c. allow, us to: (1) inspect any damaged property be- fore its repair or disposal; (2), test any part. or equipment before that part-. or, equipment is removed or repaired; and (3) move the covered vehicle at our expense in order to conduct such inspection or testing; d. provide us all: (1)' records; (2) receipts; and (3) invoices that we request and allow us to make copies; and e. not abandon the covered vehicle to us. 6. Other Duties Under First. Party Cover- ages, Uninsured Motor Vehicle Cover- ages, and Underinsured Motor Vehicle Coverages A person making claim under: a. First Party Coverages,. Uninsured Mo- tor Vehicle Coverages, and- Underin- sured Motor Vehicle Coverages must notify us of the claim and give us all the details about the death, injury, treatment, and other information that we may need as soon as reasonably possible after the injured insured is first examined or treated for the injury. If the insured is unable to give us no- tice, then any other person may give us the required notice; b. First Party Coverages must authorize us to obtain all medical, bills, reports, and records. If the person. is dead or unable to act, his or her legal represen- tative shall give us the authorization; c. Uninsured Motor Vehicle. Coverages and Underinsured Motor Vehicle Cov- erages must: (1) be examined as reasonably often as we may require by. physicians chosen and paid by us. A copy of the report will be sent to the per- son upon written request; (2) provide written authorization for us to obtain: (a) `medical bills; (b) medical records; (c) wage, salary, employment, tax, business, and financial infor- mation; and (d) any other information we deem necessary to substantiate the claim. If an injured insured is a minor, unable to act, or dead, then his or her legal representative must pro- vide us with the written authoriza- tion. If the holder of the information re- fiises to provide it to us despite the authorization, then at our request 38 9838A the person making claim or his or her legal representative must ob- tain the information and promptly provide it to us; and (3) allow us to inspect the vehicle that the insured occupied in the accident; (4) send us immediately a copy of all lawsuit papers if the insured files a lawsuit against the party liable for the accident; and d. Uninsured Motor Vehicle Coverages must report an accident, involving a motor vehicle whose owner and driver remain unknown, to the police as soon as practicable and to us within 30 days or as soon as practicable. GENERAL TERMS 1. When Coverage Applies The coverages provided by this policy are .shown on the Declarations Page and apply to accidents and losses that occur during the policy period. The policy period is shown on the Declarations Page and is for succes- sive periods of six months. each for which the renewal premium is paid. The policy period begins and ends at 12:01 AM Stan- dard Time at the address shown on the Dec- larations Page. 2. Where Coverage Applies The coverages provided by this policy are shown on the Declarations Page and apply to accidents and losses that occur: a. request we replace a car currently shown on the Declarations Page of this policy with the car newly owned by you and pay us any added amount due. If you make such request while this policy is in force and: (1) before' the- car newly owned by you ceases to be a newly acquired car, then that car newly owned by you will be insured by this policy as your car beginning on the date the car newly owned by you is de- livered to you. The added amount due will be calculated based on that date; or a. in the United. States of America and its territories and possessions; b. in Canada; and c. while a vehicle for which coverage is provided, by this policy is being shipped between the ports of the United States of America, its territo- ries, its possessions, and Canada. 3. Newly Owned or Newly Leased Car If you want to insure a car newly owned by you with the State Farm Companies after that car ceases to be a newly acquired car, then you must either: (2) after the car newly owned by you ceases to be a newly acquired car, then that car newly owned by you will be insured by this policy as your car beginning on the date and time you make the request. The added amount due will be calcu- lated based, on that date; or b. apply to the `State Farm Companies for separate coverage to insure the car newly owned by you. Such coverage will be provided only if both the appli- cant and the vehicle are eligible for coverage at the time of the application. 39 9838A 4. Changes to This Policy a. Changes in Policy Provisions We may only change' the provisions of this policy by: (1) issuing a revised policy booklet, a 5. revised Declarations Page, or an endorsement; or (2) revising this policy to give broader coverage without an additional pre- mium charge. If any coverage pro- vided by this policy is changed to give broader coverage, then we will give you the broader coverage as of the date we make the change effec- tive in the state of Pennsylvania without issuing a revised policy booklet, a revised Declarations Page, or an endorsement. b. Change of Interest (1) No change of interest in this policy is effective unless we consent in writing. (2) Except under Death, Dismember- ment and Loss of Sight Coverage, if a named insured.dies, then the definition of insured. under each of the coverages provided by this policy is changed to include: (a) any person with lawful custody of your car, a 'newly acquired car, or a temporary substitute car until a legal representative is qualified; and then (b) the legal representative of the deceased named insured. This only applies while such per- son is maintaining or using your car, a newly acquired car, or a temporary substitute car. Policy notice requirements are met by mailing the notice to the de- ceased named insured's last known address. c. Joint and Individual Interests If you consists of more than one per- son or entity, then each acts for all to change or cancel the policy. Premium a. Unless as otherwise provided by an al- ternative payment plan in effect with the State Farm Companies with re- spect to the premium for this policy, the premium is due and payable in full on or before the first day of the policy period shown on the most recently is- sued Declarations Page or Renewal Notice. b. The renewal premium for this policy will be based upon the rates in effect, the coverages carried, the applicable limits, deductibles, and other elements that affect the premium that apply at the time of renewal. c. The premium for this policy may vary based upon the purchase of other in- surance from the State Farm Compa- nies. d. The premium for this policy is based upon information we have received from you or other sources. You must inform us if any information regarding the following is incorrect or incom- plete, or changes during the policy pe- riod, and you must answer questions we ask regarding the following: (1) Your car, or its use, including an- nual mileage; (2) The persons who regularly drive your car, including newly licensed family members; (3) Your marital status; or (4) The location where your car is primarily garaged. If the above information or any other information used to determine the premium - is incorrect, incomplete, 40 9838A changes during the policy period, or is will provide the date cancellation is ef- not provided to us when we ask, then fective. we may decrease or increase the pre- mium during the policy period. If we The mailing of the notice will be suffi- decrease the premium during the pol- cient proof of notice. icy fund period, then we will provide a re- or a credit in the amount of the (1) If we mail or deliver a cancellation decrease. If we increase the premium notice: during the policy period, t hen you (a) during the first 59 days fol- must pay the amount of the increase. lowing this policy's effective 6. Renewal date; or We agree to renew this policy for the next (b) because the premium is not paid policy period upon payment of the renewal when due or a named insured's premium when due, unless we mail or de- driver's license or motor vehicle liver a nonrenewal notice or a cancellation registration has been under sus- notice as set forth in 7. and 8. below. pension or revocation during the 7. Nonreaewal policy period If we decide n.ot to renew this policy: then the date cancellation is effec- tive will be at least 15 days after a. because a. named insured's driver's li- the date we mail or deliver the cerise or motor `vehicle registration has cancellation notice. been under suspension or revocation (2) If we mail or deliver a cancellation during the policy period, then at least notice after this policy has been in 1.5 days before, the end of the current force for more than 59 days and policy period; or, because the insured has misrepre- b. for any other reason, then at least 60 sented or concealed facts material days before the end of the current pol- to our acceptance of the risk, then icy period. the date cancellation' is - effective we will mail or deliver a nonrenewal no- will be at least 60 days after the date we mail or deliver the cancel- tice to the most recent address provided to , lation notice us by you as the policy address. The mail- . ing of the notice will be sufficient proof of n ti (3) After this policy has been in force for more than 59 da s we will not o ce. y , cancel this policy before the end of 8. Cancellation the current policy period unless: a How You May Cancel (a) the premium is not paid when You may cancel this policy by provid- due; ing to us advance notice of the date (b) a named insured has had his or cancellation is effective. We may con- her driver's license or motor firm the cancellation in writing. vehicle registration `under sus- b. How and When We May Cancel pension or revocation during We may cancel this policy by mailing the policy period. 1f we cancel this policy solely because a or delivering a written notice to the named insured's driver's II- most recent address provided to us by tense was suspended or re- you as the policy address. The notice voked due to such named 41 9838A insured's failure to respond to a citation, we will reinstate this policy to provide continu- ous coverage if you furnish to us, before the cancellation ef- fective date, proof that such named insured has: (1) responded to all citations; and - (ii) paid all fines and penalties in connection with them; or . intent to conceal or misrepresent any mate- rial fact or circumstance in connection with any claim under this policy. 12. Our Right to Recover Our Payments Death, Dismemberment and Loss of Sight Coverage payments are not recoverable by us. Under all other coverages the follow- ing apply: a. Subrogation If we are obligated under this policy to make payment to or for a person or organization who has a legal, right to collect from another person or organi- zation, then we will be subrogated to that right to the extent of our payment. The person or organization to or for whom we make payment must help us recover our payments by: (1) ,doing nothing to impair that legal right; (2) executing any documents we may need to assert that legal right; and (3) taking legal action through our representatives when we ask. b. Reimbursement (c) the insured has misrepresented or concealed facts material to our acceptance of the risk. c. Return of Unearned Premium If you cancel this policy, then premium may be earned on a short rate basis. If we cancel this policy, then premium will be earned on a pro rata basis. Any unearned premium will be re- turned at, the time of cancellation or within: (1) 30 days after we cancel this policy; or (2) areasonable time after cancella- tion if you cancel this policy. Delay in the return of any unearned premium. does not affect the cancella- tion date. 9. Assignment No assignment of benefits or other transfer of rights is binding upon us unless ap- proved by us. 10. Bankruptcy or Insolvency of the Insured Bankruptcy or insolvency of the insured or his or her estate will not relieve us of our obligations under this policy. It. Concealment or Fraud There is no coverage under this policy if you or any other person insured under this policy has made false statements with the If we make payment under this policy and the person or organization to or for whom we make payment recovers or has recovered from another person or organization, then the person or or- ganization to or for whom we make payment must: (1) hold in trust for us the proceeds of any recovery; and (2) reimburse us to the extent of our payment. 13. Legal Action Against Us Legal action may not be brought against us until there has been full compliance with all the provisions of this policy. In addi- tion, legal action may only be brought against us regarding: 42 9838A a. Liability Coverage after the amount of damages an insured is legally liable to pay has been finally determined by: (1) judgment after an actual trial, and any appeals of that judgment if any appeals are taken; or (2) agreement between the claimant and us. b. Uninsured Motor Vehicle Coverages and Underinsured Motor Vehicle Cov- erages if the insured or that insured's legal representative within two years immediately following the date of the accident: (1) presents either an Uninsured Mo- tor 'Vehicle Coverage claim or an Underinsured Motor Vehicle Cov- erage claim to us; and (2) files a lawsuit in accordance with the Deciding Fault and Amount provision of the involved cover- age. Except as provided in c.(2) above, no other legal action may be brought against us relating to Uninsured Motor Vehicle Coverages or Underinsured Motor Vehicle Coverages for any other causes of action that arise out of or are related to these coverages until there has been full compliance with the pro- visions titled Consent to Settlement and Deciding Fault and Amount. c. Physical Damage Coverages if the le- gal action relating to these coverages is brought against us within one year immediately following the date of the accident or loss. 14. Choice of Law Without regard to choice of law rules, the law of the state of. a. Pennsylvania will control, except as provided in b. below, in the event of any disagreement as to the interpreta- tion and application of any provision in this policy; and b. Illinois will control in the event of any disagreement as to the interpretation and application of this policy's: (1) Mutual Conditions provision found on the most recently issued Declarations Page, if this policy was issued by the State Farm Mu- tual Automobile Insurance Com- pany; or (2) Participating Policy provision found on the most recently issued Declarations Page, if this policy was issued by any subsidiary or af- filiate of the State Farm Mutual Automobile Insurance Company. 15. Severability If any provision of this policy is held inva- lid or unenforceable by a court that has ju- risdiction, then: a. such provision will remain in full force to the extent not held invalid or unen- forceable; and b. all other provisions of this policy will remain valid and enforceable. 43 9838A I? 00 M N 0 U o, 0 01 It 0 z? 0= av? N W 0 O u a O A0 O O U a a O S[i/4?`\Ff,?I s ? M INSVRF 4CE' 6938A.1 AMENDATORY ENDORSEMENT This endorsement is a part of the policy. Except fob the changes this endorsement makes, all other provisions of the policy remain the same and apply to this endorsement. 1. THIS POLICY The following is added: 5. Your purchase of this policy may allow you to purchase certain cov- erages, coverage options, coverage deductibles, coverage limits, or coverage terms on other policies from the State Farm Companies, subject to their applicable eligibil- ity rules. 2. DEFINITIONS a. Serious injury is changed by deleting item Le. and adding the following: 4. An individual otherwise bound by the limited tort election shall retain full tort rights if in- jured while an occupant of a private passenger motor vehi- cle if that vehicle is described on a policy under which full tort rights were elected and that individual is: a. residing in the household of any individual identi- fied by name as an insured under that policy; and b. either: (1) a spouse or other rela- tive of any individual identified by name as an insured under that policy; or (2) a minor in the custody of either such named insured or relative of such named insured. b. State Farm Companies is changed to read: State Farm Companies means one or more of the following: 1. State Farm Mutual Automobile Insurance Company; 2. State Farm Fire and Casualty Company; and 3. Subsidiaries or affiliates of ei- ther 1. or 2. above. 3. LIABILITY COVERAGE Exclusions a. Exclusion 2. is deleted. b. The exception to exclusion 8. is changed to read: This exclusion does not apply to: a. you; b. any resident relative;, or c. any agent, employee, or busi- ness partner of a. or b. above while maintaining or using your car, a newly acquired car, a tem- porary substitute car, or a trailer owned by you; c. The exception to exclusion 11. is changed to read: This exclusion does not apply to damage to a: a. motor vehicle owned by the employer of you or any resident relative if such damage is caused by an insured while op- erating another motor vehicle; Page 1 of 2 6938A.1 ©, Copyright, State Farm Mutual Automobile Insurance Company, 2008 residence while rented to or leased to an insured: or private garage while rented to or leased to an insured. 4. UNINSURED MOTOR VEHICLE COVERAGES Additional Definitions - Coverages U and U3 Item 2. under "Uninsured Motor Vehicle means a land motor vehicle:" is changed to read: 2. the owner and driver of which re- main unknown and which causes bodily injury to the insured. 5. GENERAL TERMS a. The following is added to 2. Where Coverage Applies: Liability Coverage, Medical Pay- ments Coverage, Extraordinary Medical Payments Coverage, Loss of Income Coverage, Funeral Benefits Coverage, and Physical Damage Coverages also apply in Mexico within 50 miles of the United States of America border. A Physical Damage Coverage loss in Mexico is determined on the ba- sis of cost at the nearest United States of America point. Death, Dismemberment and Loss of Sight Coverage applies any- where in the world. b. The following is added to 4. Changes to This Policy: d. Change of Policy Address We may change the named in- sured's policy address as shown on the Declarations Page and in our records to the most recent address provided to us by: (1) you; or (2) the United Service. States Postal c. 7. Nonrenewal is changed to read: 7. Nonrenew al If we decide not to renew this policy: a. because a named insured's driver's license or motor vehicle registration has been under suspension or revocation during the policy period, then at least 15 days before the end of the current policy period; or b. for any other reason, then at least 60 days before the end of the current policy period we will mail or deliver a nonre- newal notice to the most recent policy address that we have on record for the named insured who is shown on the Declara- tions Page. The mailing of the notice will be sufficient proof of notice. d. The first sentence of b. How and When We May Cancel of 8. Cancel- lation is changed to read: We may cancel this policy by mailing or delivering a written notice to the most recent policy address that we have on record for the named insured who is shown on the Declarations Page. e. Item b. of 13. Legal Action Against Us is deleted. Page 2 of 2 6938A. I (0, Copyright, State Farm Mutual Automobile Insurance Company, 2008 LO 0) N State Farm Mutual Automobile Ineuranoe Company One State Farm Dr Concordville PA 19339 AT2 5566 -6490 A 076 STRICKER, MICHELE 119 CHERRY LN DILLSBURG PA 17019-1115 POLICY NUMBER 116 7104_A26-38A POLICY PERIOD JUL 26 2010 to JUL 26 2011 ?_... DATE DUE ?_..._.... ??. PLEASE PAY THIS AWUW i.. _. ...._. THIS IS NOT A BILL.... Your premium is based on the following... It not correct, contact your agent. 1 2008 HONDA VT75UC2F JH2RC53448M102486 COVERAQ TWO See policy for explanation of coverages. Vehicle 1 Property Damage 50,000 D ; toodbodut" apr+ahe"iVe.. Inc 1 uded : G 500 Deductible Collision I U" .; .Ufw, =l M9ADd9t Soddy Itwry 50,00fflfo,000 128.89 21.91 :... E W Underinsured Motorist Bodily Injury 50,0001100,000 100.21 Exhibit C n?er3r DENISE DOMBACH Teteorane (717)761-6410 See reverse side for important information. f',? 49 7999 3718 Please keep this part for your record. State Farm Insurance Companies October 6, 2011 Michele Stricker 119 Cherry Ln Dillsburg, PA 17019-1115 RTATR FAIN INRYRANCI e State Farm Insurance Companies P.O. Box 82 Concordville, PA 19331 RE: Claim Number: 38-M173-246 Date of Loss: July 17, 2011 Our Insured:Michele Stricker Dear Ms. Stricker: It is my understanding that Progressive has tendered their liability limits of $50,000. Please be advised that we are waiving our subrogation rights and providing consent to you to settle the liability claim, including execution of a general release. We will move forward with settlement'of your underinsured motorist claim once I receive the records from Hershey Medical Center. Please contact me if you have any questions or concerns. Sincerely, Michael Grove Claim Representative (610) 361-5772 State Farm Mutual Automobile Insurance Company CC: David Spahr Progressive Insurance Exhibit D HOME OFFICES: BLOOMINGTON, ILLINOIS 81710.0001 fTATI FARM State Farm Insurance Companies 46 IMfYRANGF State Farm Insurance Companies P.O. Box 82 November 2, 2011 Concordville, PA 19331 Michele Stricker 119 Cherry Ln Dillsburg, PA 17019-1115 RE: Claim Number: 38-M173-246 Date of Loss: July 17, 2011 Our Insured: Michele Stricker - Dear- Ms~St-ric : - - - - --- Enclosed is our draft in the amount of $50,000 in full and final settlement of your Underinsured Motorist claim. This tenders your policy limits. Sincerely, Michael Grove Claim Representative (610) 361-5772 State Farm Mutual Automobile Insurance Company Enclosure(s): Draft kp Exhibit E HOME OFFICES: BLOOMINGTON, ILLINOIS 61710-0001 DLO DoWWAU s z.a-Ew Oirice 43 West South Street Carlisle, Pennsylvania 17013 Tel: (717) 243-1790 Fax: (717) 243-8955 doitglaslaw@earthliiik.net January 17, 2012 Mr. Michael Grove, Claim Representative Stake Farm Mutual Automobile Insurance Company Post Office Box 82 Concordville, PA 19331 Dear Mr. Grove: In re: Claim Number: 38-M173-246 Policy number 004-9095-C02-38F Policy number 1167104-A26-38A-001 Date of Injury: July 17, 2011 I have been retained by Michele Stricker to represent her interests with respect to injuries she sustained in a motor vehicle accident that occurred on July 17, 2011. Please direct any and all contact and correspondence with Ms. Stricker through this office. As you are aware, Michele was severely injured as a result of the negligence of Darwin Appleby. Progressive Insurance Company insured Mr. Appleby with a liability policy limit in the amount of 50,000.00 that has been paid. Pursuant to your letter of November 2, 2011 you tendered a draft payable to Michele in the amount of $50,000.00 and represented to her that "This tenders our policy limits." when, in fact, your policy limits were not $50,000.00 but rather $150,000.00. As you and I both know the injuries she has sustained are severe and justify the payment of your policy limits. At this time we are demanding payment of the balance of your policy limits in the amount of $100,000.00. Please advise as to your position at your earliest convenience. Exhibit F Willium P. Douglas, Esquire Sincerely, William P. Douglas, Esq. Board Certified Civil Trial Attorney State Fanne tr?n rwfN Providing Insurance and Financial Services ,Nf YI/NCf? Home Office, Bloomington, Illinois 61710 January 31, 2012 WILLIAM DOUGLAS ESQ 43 W SOUTH Sl' CARLISLE PA 17013 RE: Claim Number: 38-M173-246 Date of Loss: July 17, 2011 Our Insured/Your Client: Michele Stricker State Farm Pennsylvania Aub Injury Claims PO Box 106115 Atlanta GA 30348.6115 Dear Mr. Douglas: This letter is in follow-up to our telephone conversation of January 27, 2012. As discussed, it is our position that our insured is entitled to receive a total of $100,000 in UIM Coverage. You confirmed that you have a specimen copy of our insured's policy which was in effect at the time of this loss. Enclosed please find a copy of page 27 which details the provision titled "If Other Underinsured Motor Vehicle Coverage Applies - Coverage W3." The policy confirms that the maximum amount that our insured is entitled to recover is the single highest applicable limit provided,by,any one of the policies. The highest applicable limit provided is $100,000. Since we Iave already issued payment in the amount of $50,000, our insured is entitled to receive an additional $50,000 for a total of $100,000 in UIM Coverage. I have enclosed a draft for the additional $50,000. If you disagree with our assessment of the amount of UIM Coverage available, please provide statutory or case law support for your position. Thank you for your assistance. Sincerely, Michael Grove Claim Representative 610 361 5772 State Farm Mutyal AutomoOile Insurance.Cona,pany 19/267/581862 Enclosure C ; Exhibit G page 1 applicable underinsured motor vehicle coverage on a primary basis. b. on an excess basis, we'are liable only for our share. Our share 'is that per- cent of the damages payable on an ex- cess basis. that the limit of liability of this coverage bears to the total of all b. applicable underinsured motor vehicle coverage provided on an excess basis. If Other Underinsured Motor Vehicle Cov- erage Applies - Coverage W3 1. If Underinsured Motor Vehicle Coverage provided by ,this policy and one or more other vehicle policies issued to you or any resident relative by one or more of the State Farm Companies apply to the same bodily injury, then: a. the Underinsured :Motor Vehicle Cov- erage limits of such policies will not be added together to determine the most that may be paid; and b. the maximum amount that may be paid from all such policies combined is the single highest applicable limit provided by any one of the policies. We may choose one or more policies from which to make payment. 2. The Underinsured Motor Vehicle Coverage provided by this policy, applies. as primary 3. coverage for an insured who sustains bod- ily injury while occupying your car. a. If: (1) this is the only vehicle policy is- sued to you or any resident rela- tive by the State Farm Companies that provides Underinsured Motor Vehicle Coverage which applies to the accident as primary coverage; and (2) underinsured motor vehicle cover- age provided by one or more sources other than the State Farm Companies also applies as primary coverage for the same accident, Exhibit G then we will pay the proportion of dam- ages payable as primary that our applica- ble limit bears to the sum of our applicable limit and the limits of all other underinsured motor vehicle coverage that apply as primary coverage. If.. (1) more than one vehicle policy is- sued to you or any resident rela- tive by the State Farm Companies provides Underinsured Motor Ve- hicle Coverage which applies to the accident as primary coverage; and (2) underinsured motor vehicle cover- age provided by one or more sources other than the State Farm Companies also applies as primary coverage for the same accident, then the State Farm Companies will pay the proportion of damages payable as primary that the maximum amount that may be paid by the State Farm Companies as determined in 1. above bears to the sum of such amount and the limits of all other underinsured motor vehicle coverage that apply as primary coverage. Except as provided in 2. above, the Under- insured Motor Vehicle Coverage provided by this policy applies as excess coverage. a, If. (1) this is the only vehicle policy is- sued to you or any resident. rela- tive by the State Farm Companies that provides, Underinsured Motor Vehicle Coverage which applies to the accident as excess coverage; and 21 9838A (2) underinsured motor vehicle cover- age provided by one or more sources other than the State Farm Companies also applies as excess coverage for the same accident, page 2 GARY A. DRAKAS, ESQUIRE Attorney ID No. 73440 FORRY ULLMAN One Bethlehem Plaza Broad and New Streets Suite 400 Bethlehem, PA 18018 610.332.3400 / FAX 610.332.3401 Y 1•i ' '?Of's?? ;SO ?np?torneys For Defendant State Farm va "NR ,t;S6L,?O COU N"I C u"is'(, MICHELE STRICKER, Plaintiff VS. IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PA CIVIL ACTION - LAW STATE FARM MUTUAL AUTOMOBILE 2012-1080 INSURANCE COMPANY, Defendant Jury Trial Demanded PRAECIPE FOR ENTRY OF APPEARANCE TO THE PROTHONOTARY OF CUMBERLAND COUNTY: Kindly enter my appearance on behalf of Defendant, State Farm Mutual Automobile Insurance Company, in the above-captioned matter, and designate One Bethlehem Plaza, Broad and New Streets, Suite 400, Bethlehem,. PA 18018, as the place where papers, process and notices may be served. FORRY ULLMAN Dated: 03/07/12 Y A. S, ESQUIRE Attorney ID #73440 Attorney for Defendant, State Farm One Bethlehem Plaza Broad and New Streets, Suite 400 Bethlehem, PA 18018 610.332.3400 / FAX 610.332.3401 GARY A. DRAKAS, ESQUIRE Attorneys for Defendan' State Farm Attorney ID No. 73440 FORRY ULLMAN one Bethlehem Plaza Broad and blew Streets Suite 400 Bethlehem, PA 18018 610.332.3400 / FAX 610.332.3401 MICHELE STRICKER, IN THE COURT OF COMMON PLEAS Plaintiff OF CUMBERLAND COUNTY, PA vs. CIVIL ACTION - LAW STATE FARM MUTUAL AUTOMOBILE 2012-1080 INSURANCE COMPANY, Defendant Jury Trial Demanded CERTIFICATION OF SERVICE I, GARY A. DRAKAS, ESQUIRE, the undersigned, hereby certify that on March 7, 2012, a true and correct copy of my Entry of Appearance on behalf of State Farm Mutual Automobile Insurance Company, was served upon the Plaintiff, by mailing the same to Plaintiff's counsel of record, by United States First Class Mail, postage prepaid, addressed as follows: William P. Douglas, Esquire Attorney for Plaintiff Douglas Law Office 43 West South Street Carlisle, PA 17013 I understand that the statements herein are made subject to the penalties of 18 Pa. C.S.A. §4904 relating to unsworn falsification to authorities. Y Dated: 03/07/12 GARY A. DRAKAS, ESQUIRE Attorney for Defendant 0 THE PROTH0140T,,,'i 2012 MAR 21 PM 12:28 CUM PBENNSRLAYNDANIA COUNTY WILLIAM P. DOUGLAS, ESQUIRE ATTORNEY I.D. # 37926 DOUGLAS, LAW OFFICE 43 West South St. Carlisle, Pa. 17013 Telephone: 717-243-1790 Attorney for Plaintiff MICHELE STRICKER, Plaintiff, V. STATE FARM AUTOMOBILE INSURANCE COMPANY, Defendant IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNA. CIVIL ACTION -LAW NO. 2012-1080 CIVIL TERM JURY TRIAL DEMANDED Praecie Attached for filing is proof of service on the defendant in accordance with service on an out of state defendant under 42 PA C.S.A. 5323. William P. Douglas, Esquire Attorney for Plaintiff March 16, 2012 ¦ Complete items 1, 2, and 3. Also complete Item 4. if Restricted Delivery is desired. ¦ Print your name and address on the reverse so that we can retum the card to you. ¦ Attach this card to the back of the mailpieoe, or on the front if space permits. 1. Article Addressed to: STATE FARM INS. STATE FARM MUTUAL AUTOMOBILE INS 1 STATE FARM PLAZA BLOOMINGTON, IL 61701 A. Signature 11 Agent B. Received by (PNnliad ??iiGG Vw) Date of Delivery .Ak D. Is delivery address ditrent from item 1? 0 Yes If YES, enter delivery address below: 0 No ;0 Type tiled Mall _ C?Exprm Ma" ? Registered atum Receipt for Merchandise ? Insured Mail ? C.O.D. 4. Restricted Delivery? (Extra Fee) 13 Yes 2. Article Number 7000 1670 0001 8793 6788 ('transfer from service AW PS Form 3811, February 2004 Domestic Return Receipt 102595-02-M-1540 r 40 GARY A. DRAKAS, ESQUIRE Attorney ID No. 73440 FORRY ULLMAN One Bethlehem Plaza Broad and New Streets Suite 400 Bethlehem, PA 18018 610.332.3400 / FAX 610.332.3401 MICHELE STRICKER, Plaintiff ? ?• ..ice, 19p?X : efendant State Farm ^ ?„ 7o r;,'I -l ns 0, IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PA VS. CIVIL ACTION - LAW STATE FARM MUTUAL AUTOMOBILE 2012-1080 INSURANCE COMPANY, Defendant Jury Trial Demanded TO: The Prothonotary of Cumberland County: Pursuant to 28 U.S.C. § 1446 (e), Defendant, State Farm District of Pennsylvania, on March 28, 2012, to Docket No. 12- cv-00565. FQ Y U Dated: 05/07/12 By: ?J GARY A. DRAKAS, ESQUIRE Attorney for Defendant Fire and Casualty Company, hereby files the attached copy of the Notice of Removal filed with the Clerk of Court for the Middle ? C e13]MeA4EMY1DoGmn (K0 FRWOM 122 F e11oK77 IN THE UNITED STATES DISTRICT COURT FOR THE MIDDLE DISTRICT OF PENNSYLVANIA MICHELE STRICKER, Plaintiff VS. STATE FARM MUTUAL AUTOMOBILE INSURANCE COMPANY, Defendant CIVIL ACTION No. ASSIGNED TO?:.LLhie?- LX (AT: Y V e JURY TRIAL DEMANDED NOTICE OF REMOVAL Defendant State Farm Mutual Automobile Insurance Company, (hereinafter "State Farm"), by and through its attorneys, Forry Ullman, hereby files the following Notice of Removal: 1. A Complaint in the above-captioned civil action was filed in the Court of Common Pleas of Cumberland County, Pennsylvania, on February 21, 2012. A copy of the Complaint was mailed to State Farm's Bloomington, IL office and received on February 28, 2012. The Complaint was docketed as Cumberland County Court of Common Pleas No. 12-1080. A true and correct copy of the Complaint is attached hereto as Exhibit "A". 2. The Complaint alleges that Plaintiff, Michele Stricker, is an adult individual and is a citizen of the Commonwealth of Pennsylvania, residing at 119 Cherry Lane, Dillsburg, York County, Pennsylvania, as of the date of the filing of the Complaint. It is further believed that Plaintiff remains a citizen of the Commonwealth of Pennsylvania, as of the date of the filing of this Petition for Removal. ? 1310aA(1lESMYEDo rr6eQ31 FFRi MA122 Ff ?2oft77 3. The Complaint further alleges that at all times relevant hereto, Plaintiff was insured by State Farm under two automobile insurance policies which provided coverage, inter alia, for primary underinsured motorists benefits in the amount of $100,000 and excess underinsured motorist benefits in the event the Plaintiff was injured by an underinsured motorist while occupying a non-owned vehicle, in the amount of $50,000.00, in accordance with the Declaration Pages attached to Plaintiff's Complaint (hereinafter the "Policy"). 4. Plaintiff avers that on or about July 17, 2011, she "was a passenger on a vehicle owned and operated by Darwin Appleby and was severely injured as a direct and proximate result of the negligence of Mr. Appleby. The injuries, expenses and losses suffered and incurred by Michele Stricker, are in an amount that exceeds all potentially available liability and underinsured motorist coverage." See Complaint at Paragraph 6. 5. Plaintiff further avers that Darwin Appleby's vehicle was insured by Progressive Insurance Company and that after obtaining State Farm's written consent to settle with Appleby/ Progressive, Progressive tendered their liability policy limits to Plaintiff in the amount of $50,000.00. See Complaint, at Paragraph 7. 2 N 1: M6Y Y6)o8weFYbel31 MWCMMA122 3aff77 6. The Complaint contends that on "November 2, 2011, State Farm Claims Representative Michael Grove, wrote to Michele Stricker and in said letter stated: "Enclosed is our draft in the amount of $50,000.00 in full and final settlement of your Underinsured Motorist Claim. This tenders your policy limits." See Complaint, at Paragraph 8. 7. The Complaint further contends that in January 2012, Plaintiff met with counsel to review her claim and insurance contracts and her counsel determined that it was apparent that the $50,000.00 policy limit exhaustion letter sent to Plaintiff by State Farm was false. Thereafter, counsel for Plaintiff communicated with State Farm by letter stating that the claim of the exhaustion of the $50,000-00 policy limit was incorrect and that she was entitled to payment under both Policies which had a combined policy limit of $150,000.00. See Complaint, at Paragraphs 9, 10 and 11. 8. Plaintiff alleges that "(a)fter State Farm was contacted by Plaintiff's counsel, State Farm paid an additional $50,000.00 but they are still refusing to honor the promises they made to their insured in the aforesaid policies of insurances", thereby denying the remaining $50,000.00 in coverage. See Complaint, at Paragraph 12. 3 13MeaAM6W&YEDo FTheU FFlWM2NA122 RbWO 77 16 9. Plaintiff further alleges that State Farm is "claiming that even though they sold the plaintiff a primary underinsured motorist policy in the amount of $100,000.00 and. an excess underinsured motorist policy in the amount of $50,000.00 which they told her she could stack they are now refusing to honor the promise they made with no legal or factual basis to support the denial" which resulted in plaintiff being "forced to incur fees and expenses to protect her interests." See Complaint, at Paragraphs 15 and 16. 10. Although the Complaint fails to state specific Counts against State Farm, the Complaint appears to contain claims for Breach of Contract, Underinsured Motorists Benefits and Bad Faith under 42 Pa. C.S.A. Section 8371, in an amount in excess of that requiring compulsory referral to arbitration, plus fees and costs. 11. Defendant State Farm is an Illinois corporation in the business of insurance, with its principal place of business located at One State Farm Plaza, Bloomington, Illinois 61710, at the time of the commencement of this action as well as at the time of the filing of this Petition for Removal. 12. Thus, for purposes of diversity jurisdiction, State Farm is a citizen of the State of Illinois. 4 ?e13lMe&t@EWN?YEDo rrha1 HHWOM A122 f77 a 13. State Farm is filing this Notice of Removal in that diversity of citizenship exists between Plaintiff, a citizen of Pennsylvania, and State Farm, a citizen of Illinois. 14. In addition, the amount in controversy exceeds the jurisdictional amount of $75,000.00. In particular, Plaintiff has allegedly asserted three (3) separate causes of action, which ostensibly demand a combined amount in excess of the jurisdictional limits. Furthermore, Plaintiff appears to be asserting a cause of action for bad faith pursuant to 42 Pa.C.S. §8371. In this regard, Section 8371 provides that a court may award punitive damages, interest, costs and attorney fees if it determines that an insurer acted in bad faith toward the insured. 15. Although State Farm vigorously disputes punitive damages are warranted or available in this matter, punitive damages are properly considered in determining whether the amount in controversy has been satisfied Bell v. Preferred Life Assur. Soc. Of Montgomery, Ala., 64 S.Ct. 5 (U.S. Ala. 1943); Henderson v. Nationwide Mutual Ins. Co., 169 F.Supp.2d 365, 368 (E.D.Pa. 2001) (attorneys fees, interest and "punitive damages are included in the amount in controversy if they are available to successful plaintiffs under a statutory cause of action") (citing Markowitz v. Northeast Land Co., 906 F.2d 100, 103 (3d Cir. 1990)). 5 Q e13MawtMfflMYEDo FYb(M0 RkHM2MA122 f77 16. Removal is timely under 28 U.S.C. § 1446 (b), because less than thirty (30) days have elapsed since service of the Complaint on State Farm. 17. State Farm will give written notice of the filing of this Notice to Plaintiff, as required by 28 U.S.C. § 1446 (d). 18. A copy of this Notice will be filed with the Prothonotary of Cumberland County, as required by 28 U.S.C. § 1446 (d). WHEREFORE, Defendant State Farm Fire and Casualty Company requests that this action proceed in this Court as a Civil Action properly removed. FORRY ULLMAN Dated: 03/28/12 By: /s/ Gary A. Drakas GARY A. DRAKAS, ESQUIRE Attorney ID No. 73440 Attorney for Defendant One Bethlehem Plaza Broad and New Streets Suite 400 Bethlehem, PA 18018 610.332-3400 gdrakas@forryullman.com 6 Ci e13MaAMEMY6)o0nmenh(240 F RWOM ffiA'P2 RhW77W77 IN THE UNITED STATES DISTRICT COURT FOR THE MIDDLE DISTRICT OF PENNSYLVANIA MICHELE STRICKER, CIVIL ACTION Plaintiff No. VS. ASSIGNED TO: STATE FARM MUTUAL AUTOMOBILE INSURANCE COMPANY, Defendant JURY TRIAL DEMANDED CERTIFICATE OF SERVICE The undersigned hereby certifies that on the 28tr day of March, 2012, a true and correct copy of State Farm's Notice of Removal was served upon the Plaintiff, by mailing the same to Plaintiff's attorney of record, by First Class United States Mail, postage pre-paid, addressed as follows: William P. Douglas, Esquire Douglas Law Office 43 West South Street Carlisle, PA 17013 This statement is made subject to the penalties of 18 U.S.C. § 1621, relating to perjury. FORRY ULLMAN Dated: 03/28/12 By: /s/ Gary A. Drakas GARY A. DRAKAS, ESQUIRE Attorney ID No. 73440 Attorney for Defendant One Bethlehem Plaza Broad and New Streets Suite 400 Bethlehem, PA 18018 610.332-3400 gdrakas@forryullman.com 7 I S E C T I O N A Supreme Court of Pennsylvania CourtW Common Pleas Civil Cover SIeet t-? Cumberland County For Prothonotary Use Only: Docket No: .;I- . EXHIBIT The in fo+-nration collected on this form is used solely for court administration purposes. This form does not supplement or reploce? the filing and service of pleadings or other papers as required by law or rules of cowl. Commencement of Action: ® Complaint ? Writ of Summons ? Petition ? Notice of Appeal ? Transfer from Another Jurisdiction ? Declaration of Taking Lead Plaintiff s Name: Michele Stricker Lead Defendant's Name: State Farm Mutual Automobile Insurance Co. ? Check here if you are a Self-Represented (Pro Se) Litigant Name of Plaintiff/Appellant's Attorney: William P. Douglas, Esq. Are money damages requested? : ®Yes ? No Dollar Amount Requested: within arbitration limits (Check one) X outside arbitration limits is this a Class Action Suit? ? Yes M No Nature of the Case: Place an "X" to the left of the ONE case category that most accurately describes your PRIMARY CASE. If you are making more than one type of claim, check the one that you consider most important. TORT (do not include Mass Tort) D Intentional Malicious Prosecution Motor Vehicle Nuisance CONTRACT (do not include Judgments) 0 Buyer Plaintiff El Debt Collection: Credit Card Debt Collection: Other CIVIL APPEALS Administrative Agencies Board of Assessment Board of Elections El Dept. of Transportation D Premises Liability Zoning Board Product Liability (does not include mass tort) Employment Dispute: Statutory Appeal: Other Slander/Libel/ Defamation Discrimination Other: El Employment Dispute: Other l A eal J di i pp s u c a t MDJ dl d/T L an or enan - El E Oth MDJ -Money Judgment MASS TORT er: 42 Pa. C.S.A. ?8371 Other: 0 El b Insurance k3acl Faith As estos 0 T b o acco Ll Toxic Tort - DES Toxic Tort -Implant Toxic Waste Other: ALPROPERTY 0 Ejectment 0 Eminent Domain/Condem nation [3 G d R t MISCELLANEOUS Common Law/Statutory Arbitration Declaratory Judgment M d roun en El L ndl d/T t Di t amus an ti R l ti D El N a or enan spu e omes c e a ons on- El Mort a e Foreclosure Order Restrai i PROFESSIONAL LIABLITY Dental Legal [3 Medical Other Professional: g g 0 Partition [I Quiet Title El Other: n ng Quo W arranto El Replevin El Other: 212010 F!LEG-OFFICE OF THE PROTHONO TAP.Y DOUGLAS LAW OFFICE 20122 FEB 2 ! PM 12: 5-5 WILLIAM P. DOUGLAS, ESQ. 43 WEST SOUTH STREET CARLISLE PA 17013 Supreme Court I.D.4 37926 TELEPHONE 717-243-1790 CUMf'CMN YLYAN A TY ......__._...... ............. ._._..... ........... ....... ........... ..... ._...-- 1vlchele Stri?lcer y In the Court of Common Pleas of j Cumberland County Pennsylvania Plaintiff vs State Farm Mutual Automobile Insurance Company Defendants NOTICE Civil Action Law jrv Trial Demanded YOU HAVE BEEN SUED IN COURT. IF YOU WISH TO DEFEND AGAINST THE CLAIMS SET FORTH IN THE FOLLOWING PAGES, YOU MUST TAKE ACTION WITHIN TWENTY DAYS AFTER THIS COMPLAINT AND NOTICE ARE SERVED, BY ENTERING A WRITTEN APPEARANCE PERSONALLY OR BY ATTORNEY AND FILING IN WRITING WITH THE COURT YOUR DEFENSES OR OBJECTIONS TO THE CLAIMS SET FORTH AGAINST YOU. YOU ARE WARNED THAT IF YOU FAIL TO DO SO, THE CASE MAY PROCEED WITHOUT YOU AND A JUDGMENT MAY BE ENTERED AGAINST YOU BY THE COURT WITHOUT FURTHER NOTICE FOR ANY MONEY CLAIMED IN THE COMPLAINT OR FOR ANY OTHER CLAIM OR RELIEF REQUESTED BY THE PLAINTIFF. YOU MAY LOSE MONEY OR PROPERTY OR OTHER RIGHTS IMPORTANT TO YOU. YOU SHOULD TAKE THIS PAPER TO YOUR LAWYER AT ONCE. IF YOU DO NOT HAVE A LAWYER, GO TO OR TELEPHONE THE OFFICE SET FORTH BELOW. THIS OFFICE CAN PROVIDE YOU WITH INFORMATION ABOUT HIRING A LAWYER. IF YOU CANNOT AFFORD TO HIRE A LAWYER, THIS OFFICE MAY BE ABLE TO PROVIDE YOU WITH INFORMATION ABOUT AGENCIES THAT MAY OFFER LEGAL SERVICES TO ELIGIBLE PERSONS AT A REDUCED FEE OR NO FEE. Cumberland County Bar Association 32 S. Bedford Street Carlisle PA 17013 717-249-31.66 BY_?JL, a DATE: February 20, 2012 TRUE COPY FROM RECORD In Testimony whereof, I here unto set my hand and the seat of said Court a Carlisle, Pa. This -c2L- day of . 20 /,,;-X Prothonotary No. 12- 10g? Civil Term Complaint 1. The plaintiff, Michele Stricker, is an adult individual residing at 119 Cherry Lane, Dillsburg, York County, Pennsylvania. 2. The Defendant, State Farm Mutual Automobile Insurance Company, is a business entity licensed to and doing business in the Commonwealth of Pennsylvania, with a place of business located at One State Farm Plaza, Bloomington, Illinois, 61710. Said defendant is hereinafter referred to as 'State Farm'. 3. On or about July 14, 2004, and for successive 6 month terms thereafter, the plaintiff was sold an automobile insurance policy by State Farm currently bearing policy number 004 9095-C02-38F. The contract consists of the Declaration Page in effect at the time of the loss (attached hereto and marked Exhibit A) and Policy Plan Booklet 9838A (attached hereto and marked Exhibit B). The aforesaid policy was to provide $100,000.00 in primary underinsured motorists benefits (Coverage W3), in the event the plaintiff is injured by an underinsured motorist. 4. On or before July 26, 2007, and for successive 12 month periods thereafter, the plaintiff was sold another policy of insurance by State Farm bearing policy number 1167104-A26-38A-001. The Declaration Page in effect at the time of the loss (attached hereto and marked Exhibit C), pursuant to it's terms the policy was to provide $50,000.00 in excess underinsured motorist benefits (Coverage W), in the event the plaintiff was injured by an underinsured motorist while occupying a non-owned vehicle. Both policies use the same Policy Plan Booklet 9838A (Exhibit B). See page 26, column 2, paragraph 1. c. of said booklet. 5. On or about July 17, 2011, both of the aforesaid policies were in full force and effect. 6. On July 17, 2011, the plaintiff was a passenger on a vehicle owned and operated by Darwin Appleby and was severely injured as a direct and proximate result of the negligence of Mr. Appleby. The injuries, expenses and losses suffered and incurred by Michele Stricker, are in an amount that exceeds all potentially available liability and underinsured motorist coverage. 7. Said vehicle owned by Darwin Appleby was insured by a policy of insurance issued by Progressive Insurance Company bearing policy number 42887924 - 005 and the applicable loss was handled by Progressive under claim number 111731146. Progressive tendered their liability policy limits to Michele Stricker in the amount of $50,000.00 and pursuant to Michele Stricker's policies with State Farm, she obtained State Farm's written consent to settle with Appleby /Progressive. A copy of the . I October 6, 2011, consent letter from Michael Grove to Michele Stricker (attached hereto and marked Exhibit D). On November 2, 2011, State Farm Claims Representive Michael Grove, wrote to Michele Stricker and in said letter stated: "Enclosed is our draft in the amount of $50,000.00 in full and final settlement of your Underinsured Motorist Claim. This tenders your policy limits. " (attached hereto and marked Exhibit E). 9. Prior to January 2012, Michele Stricker was not represented by counsel in her dealings with Progressive Insurance Company and State Farm Automobile Insurance Company. In January 2012, Michele Stricker, met with counsel to review her claim including her insurance contracts. 10. In reading the policies it was apparent that the $50,000.00 policy limit exhaustion letter sent to Michele Grove by State Farm was false. 11. Counsel for the plaintiff wrote a letter to State Farm on January 17, 2012, (attached hereto and marked Exhibit F) and informed them that the claim of an exhausted $50,000.00 policy limit was incorrect and that pursuant to the terms of the policies issued to Michele Stricker she was entitled to payment under both policies of insurance and actually had a combine policy limit of $150,000.00, specifically, State Farm policy number 004 9095-C02-38F provides primary Underinsured Motorist Coverage (Coverage W3) in the amount of $100,000.00 and State Farm Policy number 1167104-A26-38A-001 provides excess Underinsured Motor Vehicle Coverage (Coverage W) in the amount of $50,000.00 pursuant to the language of said contracts. 12. After State Farm was contacted by Plaintiff's counsel, State Farm paid an additional $50,000.00 but they are still refusing to honor the promises they made to their insured in the aforesaid policies of insurance. A copy of the letter denying the remaining $50,000.00 in coverage, is attached hereto (and marked Exhibit G). 13. State Farm is refusing to abide by the terms of the contract they wrote and they're ignoring the plain language in the contract which makes it clear that they owe their insured the full $150,000.00 they promised her. State Farm has frivolously, and with no proper foundation for their actions, has knowingly and intentionally misrepresented and refused to pay proceeds under their policies of insurance and has failed to provide benefits in accordance with the terms of the policies. 14. The bad faith conduct of State Farm gives rise to a cause of action pursuant to 42 Pa. C.S.A. §8371. . I 15. The defendant is claiming that even though they sold the plaintiff a primary underinsured motorist policy in the amount of $100,000.00 and an excess underinsured motorist policy in the amount of $50,000.00 which they told her she could stack they are now refusing to honor the promise they made with no legal or factual basis to support the denial. 16. The defendant State Farm has not acted in good faith to effectuate prompt, fair and equitable resolution of their insured's claims, knowing that liability to pay underinsured motorist benefits in the amount of $150,000.00 is clear and coverage applies, and as a result, the plaintiff has been forced to incur fees and expenses to protect her interests. 17. The defendant has ignored the plain meaning of the language in the contract which would provide coverage to Michelle Stricker and they have failed to promptly provide a factually and legally sound explanation for the basis of their denial. 18. When one reviews the second contract of insurance purchased by Michele Stricker which provides $50,000.00 in "W" underinsurance the contract clearly states on Page 26: "If Other Underinsured Motor Vehicle Coverage Applies - Coverage W If underinsured motor vehicle coverage for bodily injury is available to an insured from more than one policy provided by us or any other insurer, any coverage applicable: C. under this policy shall apply on an excess basis if the insured sustains bodily injury while occupying a vehicle other than your car. 2. Subject to item 1 above, if this policy and one or more other policies provide coverage for bodily injury: b. on an excess basis, we are liable only for our share. Our share is that percent of the damages payable on an excess basis that the limit of liability of this coverage bears to the total of all applicable underinsured motor vehicle coverage provided on an excess basis." 19. The defendant has willfully, maliciously and / or recklessly withheld benefits from the plaintiff without a proper legal basis to do so. Said conduct constitutes a breach of an implied covenant of good faith and fair dealing. 20. The defendant, in bad faith, has denied payment of applicable coverage to their insured without a sound legal basis for their denial nor have they fully inquired into the possible basis which might support the insured's claim of coverage. 21. State Farm has deliberately acted in conscious disregard and with reckless indifference to the rights of their insured. 22. The defendant impliedly and/or expressly warranted that they would, in good faith, provide insurance coverage to Michele Stricker in accordance with the contracts and abide by the terms of said contracts. 23. As a result of the aforesaid, the defendant breached its contract and/or contracts, which breach resulted in financial loss to the plaintiff and has caused her great aggravation, inconvenience and distress. 24. The plaintiff hereby requests all remedial relief as provided in 42 Pa. C.S.A. §8371 and payment in full of all available insurance benefits due under the contracts of insurance sold to her by State Farm. Wherefore it is prayed that judgment be entered in favor of the plaintiff and against the defendant in an amount in excess of that requiring compulsory referral to arbitration. A trial is hereby demanded. Respectfully submitted, William P. Douglas, Es February 20, 2012 Attorney for Plainti . AFFIDAVIT I hereby swear or affirm that the foregoing is true and correct to the best of my knowledge and / or information and belief. This is made subject to the penalties of 18 Pa.C.S.A. § 4904 relating to unworn falsification to authorities. William P. Douglas for February 20, 2012 O State Farm Mutual Automobile Insurance Company One State Farm Or Concordville PA 19339 NAMED INSURED AT I 38-6490-556G A 003737 STRICKER, MICHELE L 119 CHERRY LN a x2 DILLSBURG PA 17019-1115 w Ns 67635-5-G MUTL VOL u DECLARATIONS PAGE NAICar` 25178 POLICY NUMBER 004 9095-C02-38F POLICY PERIOD JUN 14 2011 to SEP 02 2011 12:01 A.M. Standard Time STATE FARM PAYMENT PLAN NUMBER 0392620913 AGENT DENISE DOMBACH 325 MANOR DR MECHANICSBURG, PA 17050-3082 PHONE: (717)761-6410 DO NOT PAY PREMIUMS SHOWN ON THIS PAGE. IF AN AMOUNT is DUE, THEN A SEPARATE STATEMENT IS ENCLOSED. YOUR CAR MO. 2010 TOYOTA CAMRY 4DR 4T1BF3EK7AU515439 1FO05OA000 .! : ?• .?s`+i. ' .t.. ! 1. h _ hZ \ - . ? ? MIN Y 4 :: Bddify lmary Limits - r< ++?? $100,000 $300,000 Each Accident ..- VYi; - -1b C2? Medical Payments Coverage, $22 07 $50 000 l " f ( am !+? ;y/y?Zt ry Fj 3 ,//• 'Y:.y <?'?•{ .'xgL}y??rl..?a ! . yx.. :D000PfI??R N'W2b.1?%'iLt dL t?? 4. yPiYC ZoJ%vY? G Collision Coverage 500 Deductible $57.59 '• R1 Car Rental and Travel Expenses Coverage Each Da Each Loss ti x U3 Uninsured Motor Vehicle Covera a $2.39 nt Each Person Each Aooide _ y WIN 6. .3 al a W3 Underinsured Motor Vehicle Covera a $11.99 MI SS 1? Each Person Each Accident -?:a?,.=:z°.:??.?'e'? ?y _ Apia . •+J.,,`?Ii . .... - .. w??k:- ` : " - ?'?Pi???t`1??.?'?de''Y? F Funeral Benefits Coverage $.28 , $2,500 A'L?S. I71 !*Ni?ro?e s a. ??t???'?+ a ENDOW, u > Y HIM Z4 Loss of Income Coverage $11.08 Exhibit A _. _. - .. 7:nYT"?r? ? ...,!? .Y S 4. 'y,-Er. .??` '"?y 3 s.`}l+. v+?3 ?.'Af-, i'fm_ ae'Z+ 9 ai.2 ",l._ }ilk ..?r .. ..?: Replaced policy number 0049095-38E. Your total renewal premium for MAR 02 2011 to SEP 02 2011 is $449.43. E][C POt #DY 8001Q?eT.A lSrw nallieY boddd A bu tvtdzial andarsemeWs for covermn dstails.1 . 4 Please read the policy carefully. If there is an accident, contact your Slate Farm agent or one of our Claim Offices at once. (See 'INSURED'S DUTIES" in this policy booklet.) State Farm® Car Policy Booklet Pennsylvania Policy Form 9838A Exhibit B I . I CONTENTS THIS POLICY .............................................. 3 DEFINITIONS ..............:............................... 4 LIABILITY COVERAGE .......................... . 7 Additional Definition ............. ..................... . Insuring Agreement .................................... . 7 Supplementary Payments ...... :.......::........... . 8 Limits ......................................................... . 8 Nonduplication ........................................... . 9 Exclusions .................................................. . 9 If Other Liability Coverage Applies.......... 10 Required Out-of-State Liability Coverage 11 Financial Responsibility Certification....... I I FIRST PARTY COVERAGES .................. 12 Additional Definitions - Coverages C2, Q , Z,Y,andF ................................................. 12 MEDICAL PAYMENTS - COVERAGE C2 ....................................... 12 Insuring Agreement - Coverage C2.......... 12 EXTRAORDINARY MEDICAL PAY- MENTS - COVERAGE Q ....................... 13 Insuring Agreement and Limits - Coverage Q ........................:..................... 13 LOSS OF INCOME - COVERAGE Z..... 14 Insuring Agreement - Coverage Z ............ 14 DEATH, DISMEMBERMENT AND LOSS OF SIGHT - COVERAGE Y ................... 14 Additional Definition - Coverage Y ......... 14 Insuring Agreement - Coverage Y............ 14 Payments of Benefits - Coverage Y ......... 15 FUNERAL BENEFITS - COVERAGE F .......................................... 15 Insuring Agreement - Coverage F ............ 15 Limits - Coverage C2 ............................... 15 Limits - Coverage Z ................................. 15 Limits - Coverage Y ................................. 15 Limits - Coverage F .................................. 15 Limits - Coverages C2, Q, Z, Y, and F..... 15 Priorities for the Payment of First Party Benefits - Coverages C2, Q, Z, Y, and F .. 15 Exclusions - Coverages C2, Q, Z, Y, and F....16 Mental or Physical Examination - Coverages C2, Q, Z, Y, and F ...:.....................: .:.:.. 16 COMBINED BENEFITS - COVERAGE M ................................::.....:..1:7 Insuring Agreement - Coverage. M .:..:::.:..17 Limits - Coverage M.................:....::...::::..17 Time'Limitation - Coverage M ................. 17 Other Provisions - Coverage M ................ 17 UNINSURED MOTOR VEHICLE COVERAGES .....................................:........... 17 Additional Definitions - Coverages U and U3 ....................................................... 17 Insuring Agreement - Coverages U and U3: ...................................................... 18 Consent to Settlement - Coverages U and U3 ....................................................... 19 Deciding Fault and Amount - Coverages U and U3 ....................................................... 19 Limits - Coverages U and U3 ................... 19 Limits -Coverage U3 ............................... 20 Nonduplication - Coverages U and U3 ..... 20 Exclusions - Coverages U and U3 ........... 20 Exclusions- Coverage U ......................... 20 Exclusions - Coverage U3 ....................... 21 If Other Uninsured Motor Vehicle Coverage Applies - Coverage U ................................. 21 If Other Uninsured Motor Vehicle Coverage Applies-Coverage U3 ............................... 21 Our Payment Options - Coverages U and U3 ....................................................... 22 UNDERINSURED MOTOR VEHICLE COVERAGES ............................................. 23 Additional Definitions - Coverages W and W3 ......................................................23 Insuring Agreement - Coverages W and W3 ..................................................... .24 Consent to Settlement - Coverages W and W3 ..................................................... .24 Deciding Fault and Amount - Coverages W and W3 ..................................................... .24 Limits - Coverages W and W3 ................. .25 Limits - Coverage W3 ............................. .25 Nonduplication - Coverages W and W3 .. .25 2 9838A Exclusions - Coverages W and W3 .......... 26 Exclusions - Coverage W ...................... :... 26 Exclusions - Coverage W3 ....................... 26 If Other Underinsured Motor Vehicle Coverage Applies - Coverage W .............. 26 If Other Underinsured Motor Vehicle Coverage Applies - Coverage W3 ..:......... 27 Our Payment Options= Coverages W and W3 ....................................................... 28 PHYSICAL DAMAGE COVERAGES .... 28 Additional Definitions ..........:..............:..... 28 Insuring Agreements ......:.....: .:.................. 29 Supplementary Payments - Comprehensive Coverage and Collision Coverage ............. 31 Limits and Loss Settlement - Comprehensive Coverage and Collision Coverage-- .:.......: 31 Limits - Car Rental and Travel Expenses Coverage ..............:.................................... 33 ............ Nonduplication.:.:...:...::. . `33 .... Exclusions ......:.. ............. 33 If Other Physical Damage Coverage or .. Similar Coverage Applies 35 Financed Vehicle.:.....:.::::......... . 36 Our Payment Options ..:...:::....:.... 36 INSURED'S DUTIES .................................37 Notice to Us of an Accident or Loss.......... 37 Notice to Us of a Claim or Lawsuit........... 37 Insured's Duty to Coopezate With Us........ 37 Questi oning Under Oath ............................ 37 Other Duties Under the Physical Damage Coverages.... .........................:.......38 Other Duties Under First Party. Coverages, Uninsured Motor Vehicle Coverages, and Underinsured Motor Vehicle Coverages ... 38 GENERAL TERMS..... ............................ 39 When Coverage Applies ............................. 39 Where Coverage Applies ........................... 39 Newly Owned or Newly Leased Car......:.. 39 Changes to This Policy ............................... 40 Premium . .................................. 40 Renetival.:... ....................... .. ..... .. 41 Nor renewal.:::.'.......::::...................... : 41 Cancellation::...:.::.....:................................ Assignment.......... .... ..... ...., ........ ... '_$an1criptcy or Iris,olvency of the Insured'.. 42 Concealment or Fraud:.:.:......... ..... . 42 OurRlght to Recover Our Payments.....:.. 42 Legal ActionAgainst.Us ......................:.:.. 42 Choice of Law ........................................... 43 Severability................ .................................. 43. THIS POLICY L ;This policy ,consists .o£ a. the- most recently issued, Declarations Page; b.,-, the `policy booklet version shown on that Declarations-Page; and c. any endorsements that apply, including those listed', on Ahat. Declarations Page as well as those issued in connection with any subsequent renewal of this .policy. 2. This policy contains all of the agreements between all named insureds and applicants and: a. us; and b. .any of.our agents,.. 3. We agree to provide insurance according to the terms of this policy: a. based on payment,of premium for the coverages chosen; and b. unless otherwise stated in EXCEP= TIONS, POLICY BOOKLET, AND ENDORSEMEN'T'S on the beclarations Page, in reliance on the following state- ments: 3 9838A (1) The named insured is the sole owner of your car. (2) Neither you nor any member of your household has, within the past three years, had: (a) vehicle insurance canceled or 4. All named insureds and applicants agree nonrenewed by an insurer; or by acceptance of this policy that: (b) either: (i) a license to drive; or a. the statements 'm 3.b. above are made (ii) a vehicle regista ation by the named insured or applicant and suspended, revoked, or. -re- are true; and fused. b... we provide this insurance: oq!. the basis (3) Your car is 'used 'for..pleasure and those statements are true. business. :DEFB We define certain words''and.phrases below for use throughout the policy. ` Each coverage.n- eludes additional definitions only for,use with that coverage. These definitions :appi-y .,to.-:the singular, plural, and possessive forms ofese words and hrases: ?efiried'.. , QT& "'and phrases are p rated in boldface itaji(s; - Bodily Injury.means.-bodily.injury.?to:;apefson acid sickness, disease; *or:death:'thatzesults:from it. - _.. Car means a land motor -vehicle' with four or more wheels, designed for use primarily on public roads. It does not include: 1. Any vehicle while located for use: as a dwelling or other premises; or 2. A truck-tractor designed to pull any type of trailel. Car Business means 'a -business or job where the purposeI'is to `sell; lease; rent; repair, ser- vice, modify, transport, store,.or. park land mo- tor vehicles or an,y.type:oftrailer. Fungi means . any type:.-Or :form of fungus or fungi and includes: 1. Mold; 2. Mildew; and 3. Any of the following that are -produced or released by fungi: a. Mycotoxins; ITIONS b. Spores; c. Scents, or d:' Byproducts... Newly Acquired Car means:.. a car,. -newly owned by you.- Acar ceases to'be a newly ac- gtiired caf on the earlier of: 1. ; the effective date and .time of a policy; m- cluding. any* binder, issued '.'by us .or, any other: company that 'describes such car as an insured, vehicle; of 2. the end of the 14th calendar day immedi- ately following the date such car is deliv- ered to you. If a newly acquired car is not otherwi$p af- forded comprehensive coverage or collision coverage-=by. this; or any:oth'er policy, ithen. this policy will provide Comprehensive -.Coverage or. Collision.,Co.verage for that newly acquired car,- subject,.to: a deductible of $5K Any cov- erage provided as' a result ` of , this .paragraph will ;apply only until - the end' of. the" 5th calen- dar -day --in rmdiately following the date the ne?rlji acquired -cdr is delivered to you. Non-Owned Car means a car ..that is in the lawful possession of you or any resident rela- tive anddthatneither: 1. is owned by: a. you; 4 9838A s t b. any resident relative; c. any other person who resides primar- ily in your household; or d. an employer of any person described in a., b., or c. above; nor 2. has been operated by, rented by, or in the possession of. a, you; or b, any resident relative during any part of each of the 31. or more consecutive days immediately prior to the date, of the accident or loss. Occupying means in,'on;.enfering, or exiting. Our means the Company issuing this policy as shown on the Declarations: Page. Owned By means: 1. owned by; 2. registered to; or 3. leased, if the lease is written for .a period of 31 or more consecutive days, to. Pedestrian means a person who is not occupy- 1. a motorized vehicle; or 2. a vehicle designed,to be pulled by amotor'- ized vehicle. Person mearis a human being. Private Passenger Car means: 1. a car of the private passenger: -type, -other than a pickup truck, van, minivan, or sport utility vehicle, designed piiman y to' catry persons-and their luggage; or 2. a pickup truck, van, minivan, or sport utility vehicle: a. that is not used for: ... b. that has a Gross Vehicle Weight Rating of 10,000 pounds or less. Resident Relative means a person, other than you, who resides primarily with the first person shown as a named insured on the Declarations Page and who is: 1, related to that named insured or his or her spouse. by blood, marriage, or adoption, including, an unmarried and unemancipated child of either..who is away at school and otherwise' maintains. his or her. primary residence with that named' insured; or I. a; ward or a foster child of that named in- sured, his or her. spouse; or a person de- scribed;in 1... above... See FirstTarty. Coveragesfor the definition of Resident Relative used: there. Serious injury.-means -a personal injury result- ing in death; -serious impairment` of body. func- tion or. permanent serious disfigurement. Unl(e§ -the ii}jury-sustained is a serious injury, each .person who is bound by the limited tort election shall be,'.pr&Il ded from maintaining an action fora 4ny noneconomic loss, except that: 1. An individual otherwise bound by the- lim- ited tort election who sustains damages in a motor vehicle accident as the conse- quence of the fault .of another person may recovet damages, as if the. individual .dam- aged 'had, elected the full tort alternative whenever the person at fault: a. is convicted, . or, accepts. Accelerated Rehabilitative -Disposition (ARD)for driving under the influence of alcohol or a controlled substance in that acci- dent; b. is operating a motor vehicle registered in another state; (1) wholesale; or c. intends to injure himself or another (2) retail person, provided that an individual does not intentionally injure himself or pick up or delivery; and another person merely because his act 5 9838A or failure to act is intentional or. done with his realization that it creates a grave risk of causing injury or the act or omission causing the injury is for the purpose of averting bodily harm to himself or another person; . d. has not maintained financial responsi- bility as required by Chapter .17 _of Ti- tle 75 of the Pennsylyania Consolidated Statutes,'.providedthat, nothing in this. paragraph, shall :affect the limitation of section 1731(d)..(2) of Title 75 of the Pennsylvania Consoli- . dated Statutes (relating to: availability, scope and amount of coverage); :or e. is occupying a vehicle both owned by a - resident relative and .to. which the full tort election applies. 2 3 An individual otherwise bound.by the?lim- ited tort election shall retain full: tort rights with respect. to claims against a person in the business of. designing, manufacturing, repairing,, servicing or otherwise maintain- ing motor vehicles arising .out of a 'defect in such motor vehicle `which is caused by or riot corrected by an act' or omission in the course of such business, other than a defect in a motor vehicle -which is operated by such business. An individual otherwise" bound by the lim- ited tort election shall retain full tort rights if injured while an,occupaut of a motor ve- hicle other than. a private passenger motor vehicle. State Farm Companies means one or more of the following: 1. State. Fann Mutual Automobile Insurance Company; 2. State Farm. Fire and Casualty. Company; and 3. Any of their affiliates. Temporary Substitute Car means a car that is in the.lawful possession of the person operating it and that: 1. replaces your car for. a, short time while your car is.out of use due to its:. a. breakdown; b. repair; c. servicing; d. damage; or e. thef t; and 2. neither you nor the person operating it own or.have. registered.; If a car, qualifies. as both a non-owned car and a temporary substitute ear, then it is consid- ered a temporary substitute car only. Trailer means : 1. only those trailers: a. designed to be pulled by a, private pas- senger car; b. not designed to carry persons; and c. while not used as premises for office, store, or display purposes; or 2. a farm implement or farm wagon while being pulled 'on'public roads by a car. Us means the Company issuing this policy as shown on the Declarations Page. We means the Company issuing this policy as shown on'the Declarations. Page..: JYou or Your means the named insured or named insureds shown on the Declarations Page. If a named insured shown on the Decla- rations Page is a person, then "you'? or "your" .includes the spouse of the first person shown as a named insured if the spouse resides pri- marily with that named insured. 6 9838A Your Car means a vehicle shown under YOUR CAR on the Declarations Page. Your Car does not include a vehicle that you no longer own or lease. If a car is shown on the Declarations Paae un- der YOUR CAR, and you ask us to repface it with a car newly owned by you, then the car being replaced will continue to be considered your car until the earliest of: 1. the end of the 30th calendar day immedi- ately following the date the car newly owned by, you is delivered to you; 2. the date this policy is no longer in force; or 3. the date you no longer own or lease the car being replaced. LIABILITY COVERAGE This policy provides Liability Coverage to the b. a newly acquired car vehicles for which syriibol "A" and a corre- c. a temporary substitute car; or sponding premium are shown on the Declara- tions Page. d. a trailer whi-le attached to wcar de- Additional Definition Insured means: 1. you and resident relatives for: a. the ownership,maintenance, or use of- (1) your car; (2) a newly acquired car; or (3) a trailer; and b. the maintenance or use of (1) a non-owned car; or (2) a temporary substitute car; 2. the first person --shown as a named insured .,on the Declarations Page and that, named insureds spouse:. who resides primarily with that named insured for -the mainte- nance or use- of a car.;that is owned by, or :furnished by an employer to, a person who resides primarily -in your household, but only if such car is neither owned by; nor furnished by an employer to, the first per- son shown as a named insured on the Dec- larations Page or that person's. spouse; 3. any other person for his or her use of. a. your car; scribed, an. a., b., or c, above. Such -vehicle must. be used within the scope of your consent; and 4. any other person, or ..organization vicari- ously liable for the' use of a vehicle by an insured as defined' iii L, 2., or 3. above, but only ford such vicarious. liability. This provision applies only-if the vehicle is riei- ther owned by, nor hired'by, that other- per-son or organization. Insured does not include the United States of America or any of its agencies. Insuring Agreement 1. We will pay: a. damages an insured becomes legally liable to pay because of; (1) bodily injury to others; and (2) damage to property caused by an accident that involves. a ve- hicle for which that. insured is ,provided Liability Coverage by this policy; b. attorney fees for attorneys chosen by us to defend an insured who is sued for such damages; and 7 9838A c. court costs charged to an insured and resulting from that part. of a lawsuit: (1) that seeks ' damages payable under this. policy's Liability Coverage; and (2)' agairist which we defend an in- sured with attorneys chosen by us. We have no duty to pay attorney fees and court costs incurred after we deposit in court or pay the amount due under this pol- icy's Liability Coverage. . 2. We have the right to: a. investigate, negotiate, and settle any claim or lawsuit; b. defend aiin'su"red in ariy clairh' or law- suit, with attorneys chosen by us, and c. appeal- any award or legal decision for damages payable ;under this policy's Liability Coverage.` ' Supplementary Payments , We will pay, in additilon-to the .damages, fees, and costs d-escriibed ,in the.-Jusuring Agree- ment above; the interest; promiums;.costs, and expenses-. listed below -that result from-:such accident: 1. Interest on damages -owed by-..the insured that accrues: a. before a judgment, where owed by law, but only on that part of the judg- ment we pay; and b. after a judgment. We will not pay in- terest on damages paid or payable by a party other than the insured or us. We have no duty to pay interest that ac- crues after we deposit in court,. pay, or of- fer to pay, the amount due under this policy's Liability Coverage;. 2. Premiums for bonds,.provided by a corn- pany chosen by us, required to appeal a de- cision in a lawsuit against an insured. We have no duty to: a. pay for bonds that exceed. this policy's applicable Liability Coverage limit; b. furnish or apply for any bonds; or c. pay prey iurris for bonds purchased af- ter we deposit in court, pay, or offer. to pay, the amount due under this policy's Liability Coverage; and - 3. The following costs and expenses if related to and incurred after a lawsuit has been filed against an insured: a. Loss of wages or salary, but not other income, up to $200 for each day an in- sured attends, at our request: {l'} an arbitration;` (2) a mediation;.: or (3) a trial of a.lawsuit; and b. Reasonable expenses incurred by an insured at our request other than loss of wages, salary, or other income. The amount. of any of the costs or,expenses listed' above ' that are incurred by an in- sured must be reported.. to us before we will pay such incurred costs or. expenses. Limits The Liability Coverage limits for bodily injury are shown on the Declarations Page.. under "Li- ability Coverage - Bodily Injury Limits - Each Person; Bach Accident Th'iz =limit- shown under "Each' Person" lis the most 'we I .Will pay for all` damages `'resulting from bodily injury to anyone person injured in atiy':one accident, including all damages. sus- tained by other persons as a result of.tbat bod- ily ..injury. The - limit shown under "Each Accident" is the- most we will pay, subject to the limit for "Each -Person", for•all damages resulting from bodily injury to two or more persons injured in the same accident. The Liability Coverage limit for damage to property is shown on the Declarations Page under "Liability Coverage - Property Damage Limit - Each Accident". The limit shown is 8 9838A the most we will pay for all damages resulting from damage to property in any one accident. These Liability Coverage limits are the most we will pay regardless of the number of: 1. insureds; 2. claims made; 3, vehicles insured; or 4. vehicles involved in the-accident. Nonduplication We will not pay any darnages or expenses under Liability Coverage that have already been paid under Uninsured Motor Vehicle Coverage or Underinsured Motor Vehicle Coverage of any policy issued by the State Farm Companies to you or any resident relative. Exclusions THERE IS . NO COVERAGE FOR AN IN- SURED: 1. WHO INTENTIONALLY 'CAUSES BODILY 'INJURY OR DAMAGE TO PROPERTY; 2. FOR BODILYINJURY TO: . . a. YOU; b. RESIDENT RELATIVES; AND ` c. ANY OTHER PERSON WHO BOTH RESIDES PRIMARILY WITH AN INSURED AND WHO: (1) IS RELATED TO THAT INSURED BY BLOOD, MARRIAGE, OR ADOPTION; OR (2) IS A WARD OR.FOSTER CHILD OF THAT INSURED; 3. OR FOR THAT INSURED'S rNSURER FOR ANY OBLIGATION UNDER ANY TYPE OF WORKERS' COMPENSA- TION, DISABILITY, OR SIMILAR LAW; 4.? FOR BODILY INJURY TO THAT IN- SURED'S EMPLOYEE WHICH ARISES OUT OF THAT EMPLOYEE'S EMPLOYMENT. This exclusion does not apply to that insured's household 6- T 8. 9 employee who is neither covered, nor re- quired to be covered, under workers' com- pensation insurance; FOR BODILY INJURY TO THAT JN- SURED'S FELLOW EMPLOYEE WHILE THE FELLOW EMPLOYEE IS IN THE COURSE AND SCOPE OF HIS OR HER EMPLOYMENT. This exclu- sion does not apply to you and resident relatives who are legally liable for bodily injury to.fellow employees-''.. .-FOR FOR DAMAGES ARISING. OUT OF THE OWNERSHIP, ., MAINTENANCE, OR• USE OF A. VEHICLE WHILE IT IS RENTED TO OR LEASED .TO OTHERS BYAN INSURED;. F.OR DAMAGES ARISING.. OUT. OF THE . OWNERSHIP, MAINTENANCE, ...OR USE OF A VEHICLE WHILE IT IS BE1NG USED;' TO' CARRY :.PERSONS FOR. A CHARGE:. This exclusion does not apply to the use of a private passenger car on a share-the-expense basis; WHILE . MAINTAINING OR ' USING. A VEHICLE 1N CONNECTION' WITH THAT INSUREDS EMPLOYMENT IN OR ENGAGEMENT OF ANY KIND IN A CAR BUSINESS. This exclusion does not apply to:: . ': a. you; or b. any resident relative while maintaining or using your. car, a newly acquired car, a tem?orag, substitute car, or a trailer; WHILE THAT INSURED IS VALET PARKING A VEHICLE; WIME MAINTAD41NG OR USING ANY VEHICLE OTHER THAN YOUR CAR, A NEWLY ACQUIRED CAR, A TEMPO- RARY. SUBSTITUTE CAR, -OR A TRAILER IN . ANY -BUSINESS OR OC- CUPATION OTHER THAN A CAR BUSI- NESS. OR VALET PARKING. This exclusion does not apply to the mainte- nance or use of a private passenger car; 10. 9 9838A 11. FOR. DAMAGE TO PROPERTY WHILE 16 IT IS: a. OWNED BY; b:. RENTED70; c. USED BY; d. IN THE. CARE OF; OR e. TRANSPORTED BY YOU, A -RESIDENT RELATIVE,. OR THE PERSON WHO IS LEGALLY LI- ABLE FOR THE, DAMAGE- This exclur sion-;does, .not apply .to.. either damage' to a re'sidetiee-whi-l'e rented to or leased 4o an insured'` .or damage to a private - garage while rented to or leased" to an insured; 1.2. FOR . LIABILITY -ASSUMED UNDER ANY CONTRACT OR AGREEMENT; 13.: ?0k: A. Y' :ORDER: O.F RESTITUTION . ISSUED.'j3.Y A COURT:IN A CRWTNAL ;PRQEEDTNG OR' "EQUITABLE.: AC- 1.4. WHILE .:U SING . A TRAILER WITH A MOTOR VEHICLE-. IF THAT INSURED IS NOT > PROVIDED .-LIABILITY COV- .ERAGE .:BY THIS POLICY: FOR. THE USE OF. THAT MOTOR VEHICLE 15. FOR THE OWNERSHIP,': MA NTE- NANCE, OR USE OF ANY VEHICLE WHILE IT IS: a. OFF PUBLIC ROADS AND BEING Pj*?EPARED FOR; USED IN' PRAC- TICtFOR;' OR" OPERATEDb ' -IN `ANY RACING CONTEST, SPEED CON- TEST ,.:.HILL-CLIMBING CONTEST, JUMPING CONTEST, .'OR, . ANY SIMILAR CONTEST; OR b. ON A TRACK DESIGNED PRIMAR- ILY FOR RACING OR HIGH SPEED 'DRIVING. This exclusion does not .apply if the vehicle is being `used in connection with an activity other :than racing; high speed driving, or any type of competitive driving; OR WHO IS AN` ' EMPLOYEE OF THE UNITED STATES OF AMERICA OR ANY OF ITS AGENCIES, .IF THE PRO= VISIONS OF- TPIE . FEDERAL TORT CLAIMS ACT APPLY. If Other Liability Coverage Applies, 1. If two or more Liability Coverages pro- vided by the State Farm ,Companies to you or any resident relative apply to the same accident, then: a. such Liability Coverage limits will not be 'added together to,*.,, determine . the most that may :be"paid.:: and... `b: `the maximum amount that may be paid from all such coverages combined is, the single highest applicable" limit pro= °?ided by`any `one of the'coverages'. We may choose one. or more coverages from which, to make paXFnent, _ . :. 2. The' Liability Coverage povided by this policy applies as primarycoverage for the ownership, -'maintet ance or'e.use of your car or a trailer attached to it. a. If: (1.)..this.is the onLy.,Car Policy issued 'to; yoif or arr resident. relative by " the 'State Farm, Companies that provides I iab'ility Coverage which applies- to',tl ea&ident as-primary ,coverage; and (2) liability 'coverage -provided by one or-.rriore - soirees other 'than the Stdle-.- Edrm :Companies also ap- .plies as 'primary coverage for the same',acdiddnt.'. hen . we .w-ill.`:pay. the proportion of damages payable as primary that our applicable ,.limit bears to the;-,sum of our appl"icable limit and -the;.limits of all, oth.&Ii'ab?ility- coverage Ghat. apply as primary `coverage. 1-0 9838A 3 b. If: (1) more than one Car Policy issued to you or any resident relative by the State Farm Companies provides Liability Coverage which applies to the accident as primary cover- age; and (2) liability coverage provided by..one or. more sources other than the State.. Farm Companies' alIso ap- plies' as 'primary coverage; for `the same accident, then the State. Farm Companies. will ;pay the proportion of.damages :paydble as ,priTary- thaff the maxirnuw,. mount that may be paid' by 'the State. Farm Companies as determined. in l.. above beads Ito the sum of such amount and the lin its of all other liability coverage that apply as primary coverage. Except,.as provided in 2. aboye;:the:Liabil- ity Coverage provided byAhis: policy ap- . plies as. excess coverage. a. If "(1) this, is-the only Car Policy', issued 'to you or any resident -relative by the.! State' Farm 'C'ompani44 that provides Liability coverage ,which applies to the accident as. excess coverage; and (2) liability coverage provided by one or more sources other than the State Farm Companies also ap- p iies as 'excess' coverage for the same accident, then.. we. will - pay the proportion of damages payable as excess ..that our applicable limit bears to the sum of orir,applicable limit and the limits of all other liability coverage that apply as excess coverage. b. If: ' . (1) more than one Car Policy issued to you.. or any resident relative. by the State 'Farin . Companies provides Li- ability Coverage which applies to the accident as excess coverage; and (2) liability coverage provided by one or more sources other =than the State Farm Companies also ap- plies as' excess coverage. for the same accident, then the State Farm Companies will pay the..propportiort..of damages.:payable as excess tT *itrt the maximum amount that may be 'pa'd by" the Stare Farm Companies as determined in I above bears to the sum 'of such amount and the limits of all other liability coverage that apply:as.,excess. coverage.; Required Out-of-State Liability Coverage if. f. an insured is in another state of the United States of America, a territory or possession of-.the, united,?States,' of America,. the Dis- trict .of.Columbia;?or any province or teui- tory, _of Canada;;;;.and. as;: a nonresident becomes -subject to its= motor vehicle com- pulsory, insurance law,.. financial responsi- bility law, or similar law;..and...,-. . 2-.., ; this policy does -:note:, provide : at:: least the minimum liability coverage required by such-law: for such nonYesident,: then. this policy wih"be 'interpreted to, provide the minimum liability.... coverage required by such law. This provision does not apply fo liability cov- erage required by "law for motoi ", arriers of passengers or motor carriers of property. Financial Responsibility Certification When this policy is certified under, any law as proof of future financial responsibility, and while required during the policy period; this policy will comply with such ;law to the extent required. 11 9838A FIRST PARTY COVERAGES The coverages under this section are provided in accordance with and subject to the Pennsyl- vania MotorVehicle. Financial: `Responsibility Act, as amended. ` Additional; Definitions,-:Coverages C2, Q, Z, Y,andF. Bodily Injury, means accidental ,bodily harm to a person and that person's, :resulting illness, disease: or-death. First Party. BR nefts means; boeff9".. paid or payable to- ari.insured under C,overag.es C2, Q, Z,,Y_flr F..:.. Insured means: 1. you and resident-rel itives ' a Id.-`, 2. any otherpersoh: a.. occupying your car or a newly ac- quired car; or b. not : occupying.. a.-znoto_r,'.: ,vehicle. if in- jured as the-, result accident in- volving your oarsorrietivly ?acquired car. A parketl arid ?"trioccdp4ed motor vehicle is not a motor! vehicle involved in the accident unless it was parked so as to cause unreasonable risk'ofinjury, Motor Vehicle means: a yetiicle,w,hich. is. self- propelled except one which:is propelled,; 1. solely by -human 2. upon rails. Resident Relative means: 1. your spouse; 2. anyone related to you by blood, marriage or adoption; and . 3. a minor in the custody'of'dui , your spouse or a resident relative resident in your household, even -if temporarily residIng elsewhere. ME?ICAI; PA'S MENTS'' COViRAGE C2 This policy. provides, Coverage C2 to the vehi- cles for'which symbol "CT' and a correspond- ing premium are shown on the Declarations `page. . .... Insuri '1g,Agreenient -Coverage C2 -We .v?ill::pay;;for :medipal expenses for bodily injury to an insured ariing.out,:of the mainte- nance or use of a motor:venicle. Medical ' expenses are expenses incurred for r'easonabl'e' and. necessary medical 'treatment `aiidre?atation services. ` Th`.is '"incfudes ex- penses??dr.. 1. )zo$pital;, dental, surgical; psychiatric, psy- cMlogical,' * teopatliic; ambulance, chiro- piactic, nursing and optome`tnc services; 2. licensed physical therapy, vocational reha- ?,b litatiori occupational t'herapy,'speech pa- tb-olegy:.and%audiology; 3. medications, medical supplies'' and `pros- thetic devices; and ,4....._ponmedical ! remedial ,careand -treatment r, rendered in accordance :with. -a recognized religious:,method..,of healing,. WedYcat expenses will be paid-. I.; if incurred within 18..months from the date of the accident causing the bodily injury; or . 2. without limitation, ;as to.. time, provided that, within"1.8 months from the date of the accident causing the- bodily injury, it can be determined with reasonable medical probability that further expenses may be incurred as a result -of the bodily injury. The amount we. will pay for medical • expenses is .subject to the.limitations of Title 75 of the Pennsylvania Consolidated Statutes. 12 9838A EXTRAORDINARY MEDICAL PAY- MENTS - COVERAGE Q This, policy provides Coverage Q..to the' vehi- cles for which symbol "Q" and.a Correspond- ing premium are shown : on the -Declarations Page. Insuring-Agreement and Limits- Coverage Q We will' pay up to the lifetime aggregate limit of $100;000 for those reasonable medical expenses wh&h. exceed $100,000.. The. medi- k '.-. .? .?. ..', cal expense must . be for • :b'odily: injury to. pan insured caused by ' accident arising; out of :the maintenance or use of'a motor'?elticle ; - Medical . expenses are expenses;f inc r?ed_.-for reasonable, and necessary medical..-.treatment and rehabilitation services. 'This; i>ncludes;,ex perises €or: ..I ell 1. hospital, dental, surgi ;cal, psychiatric, `psy- chological;' osteopathic; ambulance, cltfro= practic, nursing and optojiaetr1c'services;` 2. licensed physical therapy, vocational' `eha= bilitation, occupational therapy; speech pa- thology and audiology, 3. medications, medical supplies.', and.;pros- thetic devices; and 4 -nonmedical rerriedfi"al'` Bare -and •'treatment rendered in accordance, 'with 'a recognized idf gious method of beahzig Medical. expenses. will`be;paid: 11: if-incurred within 18 months from 'the :date of the .accident causing the bodily ihft! or . 2. without limitation as to time, pi ovided.that within 18 months from the date of the. ac- cident causing the bodily injury, it can be determined with reasonable medical prob- ability that further expenses may be in- curred as a result of the bodily injury. The most we will pay in any '12. month period beginning 18 months after the date the in- sured's reasonable `medical expenses exceed $100,000- as a result of the bodily 'injury is $50,000. These expenses must be: 1 for: a. services perfon- red, or.:, ; b. medical supplies, rped.ication,.or drugs prescri bed' by a medical provider Jicensed, by the state to provide i the specific medical services; and 2.. for diagnosis, direct care, or treatment• `of the. bodily .injury.:: The diagnosis; direct care or treatm-must be ent a. within.:-.the standards, of.good medical practice, and. b. not primarily for the convenience of ;the-pa'tie'nt oT:rnedieal provider. We have'`tleright to make o'r,..obtain an inde- pendent review of the- riiedical` expenses and services p"rforrned to determine if. they , are reasonable and"necessary for- the -bodily injury sustained': The amount we will pay for medical `expenses is subject to ithe-In. itations ?of.:Titte 75--of: the Penfisylyani.a Consohdated Statutes REASONABLE MEI)ICA: F PENSES: DO NOT INCLUDE EXPENSES FOR TREAT- MENT, SERVICES;°"PRODUCTS`,,DR? PRO- CE DIM. - S,:THAT AREi . ' 1: ? ; F0R.'. RZSFARC.H; OR-NOT PRIMARILY DESIQNE- D.TQ SERVE.A',MEDICAL OR REHAB L'ITATNE:PLjRPOS -:OR-:. 2. NOT COMMONLY AND CUSTOMAR- ILY RECOGNIZED THROUGHOUT THE MEDICAL PROFESSIONS AND WITHIN THE UNITED STATES AS AP- PROPRIATE FOR THE. TREATMENT OF THE BODILYINJURY. .13 9838A LOSS OF:INCOME COVERAGE Z This .policy :provides Coverage Z to the vehi cles for.whiCb_"Z" with a .number beside-It-.and a corresponding premium are shown on -.the Declarations Page. "Z". with a number,beside it is your coverage symbol. Check your cov- erage symbol with the Coverage Z schedule in this provision for the liihits you have chosen. Insuring Agiament - Coverage Z We will pay.incoMe loss.benefits with respect to :bodil .lnjury .to an insured iarising out of the maintenance or use of a motor vehicle:;. In- come loss. benefits are: L &M;-of-the`:insured's actual loss of gross income from work,the insured would:have performed .except.'for the 'bodily injury; 2. reasonable expenses actually.incurred for: a. hiring a substitute to perform self- employment services to reduce loss of ;,. ,.,;gross income; .or ,. li. it ng special hielp thereby, enabling the insured to work and re'duce'loss.of gross income. Income toss benefits do not-include; 1. loss of `expected income for any `period following 'the death of an insured; 2. expenses -incurred. for services performed following the death of an insured; or - .; 3. any loss of income during the first five working days the insured did not work after the accident because of the, bodily injury.; 1` Schedule - Coverage Z Coverage mbol Sy Maximum Payable- Per Month Total ximum Benefits j Z1 $1,000' $ 5,000 Z2. 1,000 1.5,000.. Z3 13500 25,000 ?!`. Z4 21500 5:0,0.00 DEATH; DISMEMBERMENT'AND LOSS OF. SIGHT - b6VERAGE Y . This pol.icy.provioes ;Coverage.Y to.,the,vehi- cles for.which "Y" wiij -a number beside iti and a corresponding premium are ° shown on the Declarations Page. `.`Y with a.number beside it is-your :coverage symbol. Check your cov- erage symbol with the Coverage Y schedule in this provision for the limits you have chosen. Additional Definition`- Coverage Y Loss.means the loss of. 1.. the foot. or hand, cut off-through or above the anklq,gr, wrist;. or 2. the whole thumb .or .finger, or 3. ..all: sight., Insuring Agreement - Coverage Y We will .pay, the.ainougt. shown: in the, schedule that applies for death. of, or, loss to, an insured.aris- ing out of the maintenance or use.of a motor.,vehi- cle. The death or loss miist`be' the direct result of the accident and not due td any other cause.:,. The death must occur within:-24„ months from the date of the 'accident. If the death occurs within 24 hours after the accident; we will pay only the amount that applies to death. Loss must occur within 90 days of the accident. 14 9838A Schedule - Coverage Y Coverage Symbol Y1 Y2 Y3 Death $5,000 $10,000 $25,000 Loss of hands, feet; Sight of eyes; one hand &, one foot; or one hand or one foot. & sight ;? of one eye. .5;000 10,000 25,000 one hand.or . one foot;. or sight of one. eye 2;500 5,000 12,500 thumb & ` finger on one hand; or three fingers 1.,500 3,000. .7500 any two fingers. 1,000 2,000 5,000 ,. Limits - Coverage Z The most we will pay an insured for income loss benefits per month and in the aggregate are shown in the coverage Z schedule next to your coverage symbol. Limits - Coverage Y The amount we will pay because of the death of the insured is shown under your. coverage symbol in the Coverage Y schedule. The maximum amount payable to an insured for all loss,.as shown. in the. schedule, .shall not exceed the death .benefit amount shown for your cov- erage. symbol. The amount shown irr the schedule for death of or loss to the'insured is doubled for an insured who, at the time of the .accident, is using the vehicle's corripl.ete restraint system as recom- mended by the vehicle's manufacturer. Limits - Coverage F „ The amount of coverage for funeral ex- penses is shown. on the Declarations Page under "Funeral Benefits Coverage - Limit - Eacl Person Limits - Coverages C2;. Q, Z, Y, -and F. These coverages are excess over„but. shall not duplicate, any amount paid or payable to or for the insured under any workers' 'compensation law. Priorities for the Payment of First Party Benefits=- Coverages C2', Q, Z, Y, and F 1. When more than one policy applies, the person who suffers bodiiy injury shall re- cover first paro.benefits against applica- ble insurance coverage in the following order of priority: a. The policy : on which the person is a named insured. Payments of Benefits -- Coverage. Y The death benefit shall be paid to the executor or administrator of the insured's estate. FUNERAL BENEFITS - COVERAGE F This poll cy.:provides Coverage F to the vehi- cles for which symbol,' F" and a corresponding premium are, shown on' the Declarations Page. Insuring Agreement - Coverage F We will pay for funeral expenses directly re- lated to the funeral; burial, cremation or other form of disposition of the remains of an -in- sured. The death must be the result of the ac- cident. The expenses must be incurred within 24 months from the date of the accident. Limits - Coverage C2 The amount of coverage for medical expenses is shown on the Declarations 'Page under, ""Medical Payments Coverage - Limit - Each Person b. The policy providing coverage be- cause the person is residing in the household of a named insured and is: 15 9838.n (1) a spouse or other- relative of a named insured; or (2) a. rnmor :in the custody of either a naned insured or a relative of a named insured. c. The policy covering the motor vehicle occupied. by the. injured.. person .at the . , . ti meo f the accident: d, For r-a person who' is not the occupant of a 'moior -vehicle; the, policy on -any motor vehicle involved in the accident; A parked and unoceupied`mpi,6r roehi- cle is not a motor vehicle* involved in the.acci.dent unless it was parked so as to cause unreasonable ?i k'of injury. 2. THIS POLICY :.;DOES- NOT APPLY-IF THERE - IS ANOTHER POLICY-AT A HIGHER PRIORITY! ,LEVEL.. Item a. above is considered the, highest priority. Item d. is the lowest priority. 3. Subject t.0.1he .above, if an insured is enti- tled to first party benef<ts .under More" than one` coverage,' the rnaxiniurn,. recovery.: un= der all coverages for any first party benefit: will- no.t;.exceed the::ameunt :payable:,imdbr:. the coverage with the highest limit of li- ability for that first party, benefit. . Exclusions..- Coverages. C2, Q,.Z, Y, 4n& F THERE IS NO COVERAGE FOR BODILY INJURY: 1. TO ANY PERSON.,WHOSE . CQN DUCT CONTRIBUTED TO HIS OR HER BODILY INJURY'IN ANY OF THE FOLLOWING WAYS: a. WHILE .INTENTIONALLY IN- JURING OR ATTEMPTING TO INJURE HIMSELF, HERSELF OR ANOTHER; b. WHILE COMMITTING A FEL- ONY; OR c. WHILE SEETHING TO ELUDE LAWFUL APPREHENSION OR ARREST BY A LAW EN- FORCEMENT OFFICIAL. 2. TO ANY PERSON WHO.eKNOW-: JNGLY CONVERTS A MOTOR ICE HICLE if tbe: bodily injury arises ;out. of the maintenance or use of the. coon verted vehicle. This does not apply-to. you or any resident relative. 3. TO ANY PERSON WHO. 0, . A` CURRENTLY REGISTERR?, 1'?' '.YIO TOR VEHICLE AND D?OE?' .146T HAVE THE REQUIRED ,- INAk - ,CIAL.. RE,SPONSEBILITY, E'VEN 1". IF T_HAT. P?$ O.N IS -#&UPY.ING_O.R: STRUCK BY A MOTOR:; TxEiHICLE: FOR WHICH FINANCIAL.:RE SPONSIBILITY IS. PROVIDED. ? -This, `does not. apply to :yo:u or your spouse while .occupying a vehicle iri?ured' qh-'' der the liability coverage of this 'policy! or when struck as a pedestrian, 4. TO ANY PERSON:WI-TILE,:OPERAT ING OR OCCUPYING:.---.- a. A RECREATIONAL VEHICLE, NQT IN-TEI TPED,..EOR. -.HIGkh V TAY V1 E; OR b. A M+OTORGY.CLE; MOTOR 'DRIVEN.. CYCLE; .1ViC±TORIZBp PEDALCYCLE OR LIKE TYPE. ........'VEHICLE REQ. IRE ,,'TO `Bt REGIST'ERE]71LJ?T?F-9 TITLE 7:5 OF. THE.4PENNSYLVANIA CON- SOLIDATED STATUTES: Mental ox :Physical Examination Cover- ages C2, Q,.Z, Y, and .F Whenever the mental or physical condition of a person is material to any claim for medical expenses or income loss benefits, a court of competent jurisdiction may order the person to subrnit. to mental or physical examination by a physician. If a person fails to comply with the order, the court -may order that the person. be, denied benefits until he or she complies. 16 9838A COMBINED BENEFITS - COVERAGE M This policy provides Coverage M to the vehi- cles for which symbol "M" and a correspond- ing premium are shown. on the Declarations Page. Insuring Agreement - Coverage M We will pay for bodily injury to an insured arising out of the maintenance or use of a mo- tor vehicle: 1. Medical expenses as payable under Cover- age C2; 2. Income loss benefits as payable under Coverage Z; 3. The' benefits as ' payable under Coverage Y3; and 4. Funeral` expenses as payable-under Coverage Limits - Coverage M 1. The aggregate limit" of liability is shown on the.: Declarations : Page under "Combined Benefits Coverage= Limit-- Each Person". This is the. maximum amount payable for bodily injury to an insured as the result of an accident: 2. The most we will pay to or for an insured is as follows:- UNINSURED.- MOTOR This policy provides Uninsured Motofi_'Ve= hicle - Coverage U (Stacking Option) to the vehicles for which symbol "U" and a corre- sponding premium are shown on the Decla- rations Page. This policy provides Uninsured Motor. Ve- hicle -Coverage U3 (Non=Stacking Option) to the vehicles for which symbol "U3" and a corresponding premium are shown-onAhe Declarations Page. :Benefit Limit Medical Expenses Up to the Aggregate Limit Income Loss Up to the Aggregate Limit Death $25,000 Funeral Expenses Up to $2,500 3. Any amount payable for medical, expenses greater than $100,000 shall be excess over any amount paid.. or:payable under Ex- traordinary Medical Payments Coverage Q: Time Limitation Cover: age N1 '' Subject to the limit. of liability: 1. benefits are only payable for expenses and loss incurred tip to three years from the date.ofahe accident. 2. the death. benefit i's'" paya .l I only if death occurs within three years of the date of the . -accident. Other Provisions - Coverage M Except as amended above, all provisions relating to Coverages.CZ,:-Z;.Y; arid-,F apply to expense, loss or - death benefits of Coverage M. VEI1ICLE CQVEI"AGE5,; Additional Definitions - Coverages U and U3 Insured means: 1. you; 2. resident relatives; 3. -any other person while occupying: a. your car, a..temporary substitute car, or .a trailer attached. to such. a car. Such other person is an insured only under the coverage applicable to the vehicle 17 9838A which that person was .occupying and -such person is not an :insured under the coverage applicable' to any other vehicleinsured by this policy. Such vehicle has to be used within, the. scope of your consent; or b. a newly acquired car or a 'trailer at- tached o, such a '.Car. If. the ,newly- ac- quired car replaces your car; such other persons is? a,.-insured only,under the coverage applicable,.-to.- the vehicle that was replaced... If ;:the,- newly. ac- ;quired -car -does not, replace,yo.ur, car, such other person is an insured'. only under the coverage applicable to and! one vehicle insured b%' ?t is ' policy. ' or any other policy.- issued-by.,us=to.you -or' you, spouse. Such car-has to. be, used within the scope of your; consent. `.; Such other person occupyinga . vehicle used to carry persons for a,charge: is.no_ not an insured; and 4. any person entitled to recover compensa- tory damages as a result of Aodily.injury ;to an insured as defined n 1., 2., or 3. above. Uninsured ;Motor- Vehicle, means a land motor vehicle: the ownership, maintenance, and use of which is: a. not insured or bonded for bodily injury liability at the time of the accident; or b. insured or bonded. for bodily injury, li- ability at the time°:of t11e accident; b:ut (1) the limits are less than -required' by the financial responsibility act -of Pennsylvania; or (2) the insuring company: (a) denies that..,its...pplicy provides liability coverage for compen- satory damages that result from the accident; or (b) is or becomes insolvent; or 2. the: owner and `driver of which remain un- known; and which causes. bodily injury to the insured.. If there. 1s:no. physical contact between. that land motor.. vehicle and the insured or the vehicle the insured is occu- pying, ;then the, facts of the accident, must be corroborated by a disinterested person who Witnessed "the accident.. You, resident relative`; and persons occupyingahe'same' vehicle as the insured are not disinterested perwiis:? ` Uninsured Motor .Vehicle does. not include a. la id motor vehicle: 1. whose .o;Wgnership, maintenance., .or use is provided Liability Coverage by this policy; 2.:- -,owoed...;by;:;rent ' d,:;to; or furnished on avail-. able for;the regular use of you or any`resi- dent relative;, 3.. owned by, rented to,? or operated'by a self. insurer' utider-;any motor-:yeInOe "fin' responsibility .law, any motor carrier. law, or Any. sitnlar law; 4. designed for use primarily aft' public, roads except while on.public. roads, or 5. while located for use as a dwelling or other premises. Insuring Agreement - Coverages U'and U3 We will pay compensatory damages' for bodily injury an, insured;,is, legally entitled to recover from the owner or driver of an uninsured mo- tor vehicle: The bodily injury must be: 1.: sustained. by'dn. insured;: and 2. caused 'by an accident that involves the ownership, maintenance, or use of an un- insured motor vehicle as a motor vehicle, The amount we will pay for damages is subject to the limitations of Title 75 of the Pennsyl,? vania Consolidated Statutes. 18 9838A Consent to Settlement _- Coverages U and U3 The insured must inform us of a settlement offer, if. any, proposed by or on behalf of the owner or driver of the uninsured motor vehi- cle, and the insured must request our written consent to accept such settlement offer. if we: 1. consent in writing, then the insured may accept.such settlement offer. 2. inform -the insured in writing that we do not consent" th ii'Ahe i nsure, d may not. ac- cept-such sett1,&ment`offer and: a. `-.we will make='pat'ent to the insured in' an amOtYnVequair' -to: such •settlement offer.: -T-hi-s ?payinent- is.considered a payment. made. by. or -on: behalf Qf the owner or cinver of the uninsured mo- torvehicle; an$: b. any .recovery?finrra or. on bellilf of the owner or driver' of the uninsured motor `-vehiclesha11 first be-used to repay us-. Deciding l+ault and Amount:-'Coverages U and -U3 1. a. The insured arid, we_must agree to the answers to the fdU6W. ing two questions: (1) Is the insures;,,-legally:.::entitled to recover compensatory - damages from ihe o W- h& or drivel" of the uninsured motor. vehicle?- ._. O -If the insrired and, we, agree that the answer to-la.(1) above.is yes, then .: what is thi? `amount' of the compensatory damages that the in- sured is.legally entitled- to-recover from the' owner or driver -of the uninsured motor vehicle? b. If there is no agreement on theanswer to either .,question in La. above; then the insured shall: (1) file a lawsuit, in a state or federal court that. has jurisdiction,. against: (a) us; (b) the owner and driver. of the uninsured motor vehicle unless we have consented to a settlement offer proposed by or on behalf of such owner or driver; and (c) any other party or parties who may be legally liable for the insured's damages; (2) consent to a jury trial if requested by its; (3): agree that we` may-.contest the is- sues of liability and the ahio'lint of damages; and (4).-secure a. judgment in that action. The judgment must:-be the final re- suit of an actual trial and any ap- peals, if any appeals ar 1? ken. 2 ?'We are not -b ound by any a.. _ judgment obtained without our written 'consent; and b default judgment, agalnst. any person or organization other than, us,- 3...:. Regardless of the amount: of any award, . including any judgment. 4rdefault judg- ment, we are not obligated to pay, any amount- in "excess `of the' available limits under this coverage of this policy: . Limits -,Coverages U and:U3 The Uninsured Motor Vehicle Coverage limits are shown on the Declarations; Page under "Uninsured Motor Vehicle:Coverage --Bodily Injury Limits - Each-Person,'Each Accident" The. limit: shown under `.Eacfi Person?' is the most we-. will pay for all damages. resulting from bodily injury to any one insured. injured in any one accident, including. all damages sus- tained by other insureds as a result of that bod- ily:' injury. 'The . limit showq` under "Each Accident" is the most we will pay;. subject to the limit for ."Each Person", for... all; damages resulting from bodily injury to .tw.o.. oar more insureds injured in the same accident. 19 9838A These Uninsured Motor Vehicle Coverage lim- its are the most we will pay regardless of the number of: 1. insureds; 2. claims made; or 3. uninsured motor vehicles involved in the accident. Limits - Coverage U3 1. If there is more than one::,:vehicle insured under this policy, the maxirnum limit of li- ability available is: a. the limit applicable 10" - .1the vehicle that was involved in the aceidenti while oc- cupying your-car; b. the: limit. applicable tQ.the vehicle that was replaced while occupyin a newly acquired car that replaces yo .car; or c. the limit applicable to any..orie vehicle insured under this policy while injured as a pedestrian or injured while bccu- R pying''a newly acquired car' that does not replace your car, a teniporary,su&- stitute car, or a non-owned car 2. The limits 'of liability are ,..:not..iricreased because more . than one. vehicle .Unnsured under this policy. Nonduplicatio.n - Coverages .U and U3 We. will not pay under Uninsured: Motor Vehi- cle Coverage: any damages that have already been paid to or for.the insured' 1. by or on behalf of any person- or ?organiza- tion who is or may -be held= legally liable for the bodily injury to the insured;-or 2. for bodily injury under Liability Coverage of ariy policy issued by the State Farm Companies to you or any resident relative: Exclusions Coverages U and U3 THERE IS NO COVERAGE: 1. FOR AN. INSURED WHO, WITHOUT OUR WRITTEN.CONSENT,, SETTLES WITH ANY PERSON OR ORGANIZA TION WHO MAY BE LIABLE FOR THE BODILY INJURY; 2. FOR - PAIN, SUFFERING ' OR OTHER NONMONETARY DAMAGES SUS- TAINED BY AN INSURED IF THE BOD1L1Y INJURY IS NOT. A SERIOUS INJURY AND THE LIMITATION OF S.EGTION -1-.7,.31:(d)(2)?„OF TITLE -75 OF THE..;-. , ??YShT?ISYLVAIVIA: _ -: , CONSOLI- DATED -STATUTES .APPLIES; 3. FOR,; AN:; INS,UIiED,.: WHQSE; BODILY INJU,RT. RE;SLTLT& -FRO.Mr :.T-HE DIS- GHAR EOF A. FIREARM; t: 4: TO 141T EXTENT IT BENEFITS: a. ANY WORKERS' COMPENSATION OR. DISAB.1LITY BENEFITS IN- SUR.ANCE-COMPAN b:• .A SELF=INSLTR'ER UNDER ANY WORKERS', C.OMPENSATIOI LAW, DISABILITY BENEFITS LAVV, OR SIMILAR LAW; OR c, .:.ANY. GQV?RN11!X NT OR' ANY OF ITS POLITICAL SU$I7tVISIONS OR AGENCES; 5. FOR . -PUNITIVE.. • OR EXEMPLARY DAMAGES; OR 6.-.: FOR. ANY .ORDERS OF RESTITUTION ISSUED BY;A.COURT IN A. CRIMINAL PRQOEEDING OR., .EQUITABLE AC- TION Exclusions - Coverage U THERE IS NO COVERAGE FOR AN IN- SURED. WHO. SUSTAINS BODILY INJURY WHILE 'OCCUPYING A MOTOR VEHICLE OWNED BY THAT INSURED. IF THE VE- HICLE IS NOT INSURED FOR UNIN- SURED MOTOR VEHICLE COVERAGE UNDER THIS POLICY- OR- ANY OTHER POLICY. 20 9838A Exclusions - Coverage U3 THERE IS NO COVERAGE FOR AN IN- SURED WHO SUSTAINS BODILY INJURY WHILE OCCUPYING A MOTOR VEHICLE OWNED BY YOU OR ANY RESIDENT RELATIVE IF IT IS NOT YOUR CAR OR A NEWLYACQUIRED CAR. This exclusion does not apply to the first per- son shown as'a named insured on the Declara- tions Page and that named insured's spouse who resides primarily with that named insured, while.. occupying a motor vehicle not owned by one or both of them. If Other Uninsured Motor Vehicle Coverage 41 es - Coverage U* Appli 1. If uninsured motor vehicle'..coverage for bodily injury is available..io an insured from more than. one policy .provided by us or any other insurer, any coverage applica- ble: a: under this policy; shall -apply on a pri- mary basis if the insured sustains bod- ily injury while not occupying a motor vehicle or trailer.. b. to the vehicle covered under this pol- icy which the insured was occupying when the bodily. injury was sustained shall apply on a. primary basis. Any other coverage provided by this policy shall apply on an excess basis. c. under this policy shall apply on an ex- cess basis if the insured sustains bod- ily injury while occupying.a vehicle other than your car. 2. Subject to item 1 above,.if:this policy and .one or more other policies provide:-cover- age for bodily injury: a. on a primary basis, we are liable only for our share. Our share is that per- cent of the damages payable on a pri- mary basis that the limit of liability of this coverage bears to the total of all applicable uninsured motor vehicle coverage on a primary basis. 21 9838A b. on an excess basis, we are liable only for our share. Our share is that per- cent of the damages payable 'on an ex- cess basis that the limit of liability of this coverage bears to the total of all applicable uninsured motor vehicle coverage provided on an excess basis. If Other. Uninsured Motor Vehicle Coverage Applies-`Coverage U3 1. If Uninsure.d..Motor Vehicle Coverage pro- vided by this policy and one or more other vehicle policies issued. to you or any resi- dent relative by one or. more of the State Farm Companies apply. to. the same bodily injury, then: %. a. the Uninsured Motor Vehicle Coverage limits 'of- such policies will not be added together to determine..the most that, may be paid; and b: the maximum amount that niay be paid from all such policies combined is the single highest applicable limit-provided by`- any one of the policies:; We may cho,ose:. one or more policies from which to make payment. 2.. The Uninsured Motor Vehicle Coverage provided,by this'policy applies 'as primary coverage for an insured who sustains bod- ily injury while occupying your car. a. If: . .(l) this is the only vehicle policy is- sued` to you or any resident rela- tive'by the State Farm Companies that -provides Uninsured Motor Vehicle Coverage which applies to the accident as primary coverage.; and. (2) uninsured motor vehicle coverage provided by one or more sources other than the State Farm Com- panies also applies as primary coverage for the same accident, then we will pay the proportion of damages. payable as primary that our applicable limit bears to the sum of our applicable limit and the limits of all other uninsured motor vehicle cov- erage that apply as primary coverage. b. If: (1) more than one. vehicle policy is- sued to you or. any :.resident rela- tive by the State Farm Companies -provides Uninsured Motor Vehicle -Coverage which applies to the ac- cident as primary coverage; and (2) uninsured mot f vehicle coverage provided ,by otie` or-more sources other than the State Farm - Com- panies also. applies - as primary coverage. for the same accident, then 'the State Farm Companies will pay the proportion of damages payable as primary that the maximum amount that .may be paid by the State Farm Companies "as determined in .1. above bears to the" `of such amount and the limits of all other, .uninsured motor vehicle coverage that. apply as primary coverage. 3. Except as provided in 2. above, the Unin- sured Motor Vehicle Coverage provided by this policy applies as excess: coverage. a. If. other than the State Faun. Com- panies also applies as excess cov- erage for the same accident, then we will pay the proportion of damages payable as excess that our applicable limit. bears to 'the sum of our applicable limit and the' limits. of all other uninsured motor, vehicle° cov- erage that apply as excess. coverage. b: If (1) more than one vehicle policy is- sued to,yyou or any resident Wit- tive -bythe State Farm 'Companies provides Uninsured Motor Vehicle Coverage which applies. to the ac- cident as'excess coverage; and .(2) uninsured motor vehicle„coverage provided. by one or. more sources other than the State Farm Com- p`anies also- applies as -excess cov- erage for the same accident; then the State Farm Companies will pay the proportion. of damages payable as, excess that the .maximum amount that. may be paid, by the . State Farm Companies as. determined, in .1. above bears to the sum of such amount and the limits of all other uninsured motor vehicle .coverage that apply as excess coverage: Our Payment Options:- Coverages U and U3 We may,.at our option, make payment to one or more of the following: (1) this is the only vehicle policy is- 1 The insured; sued to. you or any resident rela- tive by the State Farm Companies 2. The insured's surviving spouse; that provides Uninsured Motor Vehicle Coverage which applies to 3. A.parent: or guardian of the insured, if the the accident as excess coverage; insured is a. -minor or an incompetent per- and son; or (2) uninsured motor vehicle coverage 4. A person authorized by law to receive provided by one or more sources such payment. 22 9838A UNDERINSURED MOTOR VEHICLE COVERAGES This policy provides Underinsured Motor Ve- hicle - Coverage W (Stacking Option) to the vehicles for which symbol "W" and a porre- sponding premium are shown on the Declara- 4. tions Page. This policy provides Underinsured Motor Ve- hicle - Coverage W3 (Non-Stacking Option) to the vehicles for which symbol "W3" and a cor- responding premium are shown on the Decla- rations Page. Additional Definitions - Coverages W and W3 Tiisured'means: ' 1. you, 2. resident relatives; 3. _anyzther person -while occupying: a. your car, a IMmporary,,substitute car, or a trailer attached to such a car. Such-other person is an insured only under the`'coverage-- applicable to the vehicle which that person was occupy- ing and such person is not an insured under the coverage 'applicable to any other vehicle "insured by this policy. Such vehicle has 'fo 'be used within the scope of your consent; or b. a newly acquired car or a trailer at- tached to such a car. If the newly ac- gidred car replaces your car, such other person is an insured only under the coverage applicable to the..vehicle that was replaced.:'- If the newly ac- quired car does not replace your car, such other person; is an insured only under the .coverage. applicable to any one vehicle insured by this policy or any other policy issued by us to you or your spouse. Such car has to be used within the scope of your consent. Such other person occupying a vehicle used to carry persons for a charge is not an insured; and any person entitled to recover compensa- tory damages as a result of bodily injury to an insured as defined in 1.; 2.; or 3. above. Underinsured Motor. Vehicle means a land motor vehicle: 1. the ownership, maintenance, and use of which is.either: a. insured or bonded. for bodily injury II- ability at the time of the.accident; or B: serf- insured under any motor vehicle "'financial -responsibility law, any, motor carrier law, or- any similar law; and 2. for which the total-limits `of insurance and selfinsurance for.', bodily injuty -liability from all sources.'" a: are' less° than the `amount ?of the in- sured's damages; or . li: have been reduced by payments - to persons* other` tl ain you and resident relattives td--"less -.than the`amoun-f 6f the insured's - damages. Underinsured Motor Vehicle does not include a land motor vehicle: 1. whose ownership, maintenance, "or use is provided Liability Coverage by this policy; 2. owned by, rented to; or finmished or avail- able-for the regular use of you bor any resi- dent relative;, 3. designed` for use primarily off public roads except while-onpublic roads; 4. while located for. use as a dwelling or other premises; or S. defined as an uninsured motor vehicle under. Uninsured Motor_ Vehicle Coverage of this policy. 23 9838A Insuring Agreement -.Coverages. W and W3 Deciding Fault and Amount - Coverages W We will pay compensatory damages for and W3 bodily. injury an insured-:is legally entitled 1. a. The insured and we must agree to the to recover from the owner or driver..of -an answers to the following two ques- underinsured motor vehicle. I' The bodily tions: injury must be: (1) Is the insured legally entitled to 1. sustained. by an insured;. and recover compensatory damages 2. caused by an. accident that involves the from the owner or, driver of the ownership, maintenance, or. use of, an underinsured motor vehicle? motor vehicle as a motor underinsured , vehicle. (2) If the insured and we agree that We will pay only if the. full amount of all avail- the answer to l .a.(l) above is yes, able limits of all bodily injury liability bonds, then what is the amount . of the policies, and self-insurance plans that apply to compensatory damages that the. in- the insured's bodily injury have.b.een. used up sured is legally entitled to recover by payment of judgments or.. settlements, or from the owner or driver. *1 of the have been offered•to the insured in-.writing. underinsured motor vehicle.? The amount we will pay for damages is subject b. If there is no agreement: on the answer to the limitations of Title 75- of the Pennsyl- to either question in La. above, then vania Consolidated Statutes... the insured shall: Consent to Settlement - Coverages W and W3 (1) file a lawsuit, in a state or federal The insured must inform us of a-settlement offer court that has jurisdiction, against: for the full amount of. all available .limits pro- (a)- us;. posed by or on behalf. of the .owner: or..driver of the underipsured. motor vehicle,.andjhe insured (b} he owner and driver of the must request our written consent,to, accept such underinsured.. motor vehicle settlement offer. unless we have consented to a If we: settlement offer proposed by or on behalf of such owner or 1. consent in writing, then the insured may drives; and accept such settlement offer. 2. inform the insured in. writing that we do (c) any other party or parties who may be legally liable for the not consent, then the insured may not ac- insured's damages; cept such settlement offer and: ; a. we will make payment to the insured in (2). consent to a jury trial if requested by an amount equal, to such settlement of- its; fer. This payment is considered.,a pay- (3) agree that we may contest the'issues ment made by or on behalf of the owner of liability and the amount of dam- or driver of the underinsured motor ages; and vehicle; and b. any recovery from or on behalf -of the (4) secure a judgment in that action. owner or driver of the underinsured The judgment must be the final re- motor vehicle shall first be used to re- sult of an actual trial and any ap- peals, if any appeals are taken. pay its. 24 9838A 2. We are not bound by any: a. Judgment obtained without our written consent; and b. default judgment against any person or organization other than us. 3. Regardless of the amount of any award., including any judgment or default judg- ment, we are not obligated to pay any amount in excess of the available limits under this coverage of this policy. Limits -..Coverages. W and W3 T. The Underinsuted Motor Vehicle Coverage limits are shown- on'the'Declarations Page under "`Under" sured'Motor Vehicle Cov- erage - Bodily Injury Limits -Each Per- son, Each- Arxident", y a: The `those we willpay' for all damages resulting from bodily injury to.any one insured injured. in,.ariy, one accident, including all damages sustained by other`insuieds as a resuWof that bodily injury, is.the lesser of: (1) the limit shown under"Each Per- son"; or (2) the amount of all. "damages result- ing from that ' bodily . injury re- duced by 'the sum of _all.' ayments for damages resulting,.-from that bodily injury, made by or, on behalf of.any person or organization who is or may be, held -l'egally liable for that bodily injury. b. . Subject to, a. above;. the most we will pay for al.ldamages resulting from bodily injury to two :or more insureds injured in the same accident is the limit shown under "Each Accident" reduced by the sum of all payments for bodily' injury made to all insur- eds by or on behalf of any person or organization who is or may be held legally liable for the bodily injury. 2. These Underinsured Motor Vehicle Cover- age limits are the most we will pay regard- less of the number of: a. insureds; b. claims made; or. c. underinsured motor vehicles involved in the :accident. . Limits- Coverage W3- 1 if there is. more . than one vehicle insured under this policy;`the. maximum limit.of li- ability available is: a. -the lirriit 'applicable -to the vehicle that was involved; in. the accident while oc- cupying y.our...car; b. .;the limit applicable. to the vehicle. that was replaced while occupying a newly acquired,,car that replaces your car; or c. the limit applicable to any one vehicle insured; under this policy while injured as a pedestrian or injured while occu- pying a newly -acquired car that does not replace,your-- car, a, temporary sub- stitute car, or, anon-owned car. 2. The limits of lia67 ity are not increased because -more,-than °one vehicle is: insured under this policy. Nonduplieatian -..Coverages W and W3 We Will not pay under Underinsured Motor Vehicle Coverage` any` damages that ;have al- ready been paid to or for the insured: 1. by or on behalf of any person or organiza- tion, who is.-or; may be held legally-Iiable for the bod ly:injury to the insured; or 2. for -bodilyInjury under Liability Coverage of any policy issued by the State Farm Companies: to you :or any resident relative. 25 9838A Exclusions - Coverages W and W3 THERE IS NO COVERAGE: FOR AN INSURED WHO, WITHOUT OUR WRITTEN CONSENT, SETTLES WITH ANY PERSON OR. ORGANIZA- TION WHO MAY BE LIABLE FOR THE BODILYINJURY, 2. 3 4. a ANY, WORKERS' COMPENSATION OR DIS.ABILITY BENEFITS IN- SURANCE COMPANY, b. A' SELF-INSURER UNDER ANY WORKERS' COMPENSATION LAW, DISABILITY : BENEFITS LAW, OR SRVMAR LAW OR::> c. ANY. GOVERNMENT OR ANY OF ITS POLITICAL "SUBDIVISIONS OR AGENCIES; 5. 6 FOR PAIN, SUFFERING OR OTHER NONMONETARY : DAMAGES SUS- TAINED BY AN INSURED IF THE BODILY INJURY IS NOT A SERIOUS INJURY AND THE .LIMITATION. OF SECTION 17.3.1(d)(2) OF TITLE. 75 OF THE PENNSYLVANIA' CONSOLIDATED STATUTES APPLIES; FOR AN INSURED WHOSE BODILY INJURY RESULTS FROM THE DIS- CHARGE OF AFIREARIVI; TO THE EXTENT IT BENEFITS: FOR PUNITIVE, "OR -., EXEMPLARY DAMAGES; OR FOR -ANY ORDER OF RESTITUTION ISSUED BY. A COURT IN A.CRIMINAL PROCEEDING OR. EQUITABLE AC- TION. Exclusions - Coverage W THERE IS NO OVERAGE FOR AN IN- SURED WHO SUSTAINS BODILY INJURY WHILE OCCUPYING A MOTOR VEHICLE OWNED BY THAT INSURED' IF THE VE- HICLE IS NOT INSURED FOR UNDERIN- SURED MOTOR VEHICLE COVERAGE UNDER THIS POLICY OR ANY OTHER POLICY. Exclusions - Coverage W3 THERE. IS NO COVERAGE FOR AN. IN- SURED WHO SUSTAINS BODILYINJURY WHILE OCCUPYING A MOTOR VEHICLE OWNED BY YOU.- .OR. ANY RESIDENT RELATIVE. IF IT. IS NOT YOUR CAR OR A NEWLYACQUIRED GAR. This exclusion does not apply. to thefirst person shown as .a. nnamed insured on the Declarations Page andthat named insured's spouse who resides 'primarily with that named insured., while occupying a.. motor vehicle not, owned by one or both of them. If Other Underinsured Motor Vehicle Cov- erage Applies. Coverage W 2 If underinsured motor`<vehicle coverage for . bodily injury is available to an in- sured from more than one. policy 'pro- vided by us or any other insurer, any coverage applicable: a: .'under this policy shall apply on a pri- mary basis if the insured sustains bod- ily injury'while not occupy rMj a motor i,yehicle or trailer. b. to the vehicle covered under this pol- icy which., the insured was occupying when the 'bodily'injury was sustained shall. apply on a primary basis. Any tither coverage provided by this policy . shall apply on-an excess basis. .c. tinder. this policy shall apply on an ex- cess basis if .the insured sustains bod- ily injury while occupying a vehicle other than your car. Subject to item I above, if this policy and one or more other policies provide cover- age for bodily injury. . on a primary basis, we are liable only for our share. Our share is that per- cent of the damages payable on a pri- mary basis that the limit of liability of this coverage bears to the total of all 26 9838A applicable underinsured motor vehicle coverage on a primary basis. b. on an excess basis, we are liable only for our share. :Our share is that' per- cent of the damages payable on an ex- cess basis that the: limit of.liability of this coverage bears to the total of all applicable underiisured motor vehicle coverage provided on an excess basis. If Other Underinsured -Motor Vehicle Cov- erage Applies - Coverage W3 ' 1. If Underinsured Motor Vehicle ; Coverage provided.by- this:,.policy and. one or: more other. vehicle:.policies issued to you or any resident relative by .one-'ar more of the State `Farhi Companies apply to "the, same bodily injury, then: a.' ! the Underinsured Motor _Vehicle::Cov- erage limits of such policies will not be added together to' determine the most that may be paid; 'and b. the maximum amount that may be paid from all such policies combined is the single highest applicable limit provided by any one of the policies., We.. may choose one or more'policies froir which to make payment. 2. The Underinsured Motor Vehicle Coverage provided by this policy: applies as,:pTimary coverage for an insured who sustains bod- ily injury while occupying your cur:.' a. If: (1) this is the only vehicle policy is- then we will pay the proportion of dam- ages payable as primary that our applica- ble limit bears to the sum of our applicable limit and-the. limits of all. other underinsured motor vehicle coverage that apply as primary coverage. b. If: (1) more than' one vehicle policy is- sued to you or any resident rela- :tive -by, the State Farm Companies provides Underinsured Motor Ve- .hicle Coverage., which applies to the accident:; as -primary coverage; and .(2) underinsured motor vehicle cover- age provided by one or more sources other than the State Farm Companies"also applies as primary ..coverage for the same,-accident, then the State Farm Companies will pay the proportion of damages payable as primary that the maximum amount that may be paid by the State Farm Companies as determined in 1. above 13ears to the sum of such amount and the limits of all. other underinsured motor vehicle coverage that: appI':as primary coverage.. 3.. Except as provided in 2. above, the Under-' insured Motor Vehicle Coverage ,provided by this policy applies as. excess coverage. a.. If: (1) this is the only vehicle policy is` sued to .you: oz, any ire "dent rela- sued to-you or any resident. 7tela- tive by ,the State Farm C'om`panies that provides tive by the State Farm Companies that provides Underinsured Motor Underinsured Motor Vehicle Coverage which applies to the accident.Vehicle Coverage `which" applies to ,;as pninary coverage; an the accident as excess coverage; and and (2) underinsured motor vehicle cover- Wage . provided ..by one or more sources. other than. the State Farm Companies also applies as primary coverage for the salve accident, 27 9838A (2) underinsured motor vehicle cover- age provided by .,one or more sources other than the State Farm Companies also applies as excess coverage for the same accident, then we will pay the proportion of damages payable as excess that our applicable limit bears to the sum of our applicable limit and the limits of all other underinsured motor ve- hicle coverage that apply as excess coverage. b. If: (1) more than one vehicle policy issued to you or any .resident relative by the State Farm Companies provides Underinsured Motor. Vehicle Cover- age which -applies to the accident as excess coverage;'and (2) underinsured motor vehicle cover- age provided by one or more sources other than the State Farm Companies.also applies as excess coverage for -the same accident, then the State Farm Companies will pay the proportion of damages payable as ex- cess that the maximum amount that may be. paid by the State Farm Companies as deternined in 1. above bears to the sum of such. amount and the limits of all other un- derinsured motor vehicle coverage that ap- ply as excess coverage: Our.Payment Options - Coverages .W and W3 We may, at our option, make payment to one or more of the following: 1. The insured; 2. The insured's surviving spouse; 3. A .parent or guardian of the insured, if the insured is a minor or an incompetent per- son; or 4.. A .person authorized by law to receive such payment. PHYSICAL DAMAGE COVERAGES The, physical damage coverages are Corn- kddi0q.4AI1)efiniti6ns prehensiveCoverage, Collision Coverage, Covered Vehicle means:: Emergency Road Service Coverage,-and Car Rental. and Travel Expenses Coverage. 1. yoorcar; This policy provides: 1. Comprehensive, Coverage -if "D"; 2. Collision Coverage if "G"; I. Emergency Road Service Coverage if."H"; 4. Car Rental and Travel Expenses Coverage if to the vehicles for which the corresponding sym- bols and .premiums are shown on the Declara- tions-Page. If a deductible applies to Comprehensive Cov- erage, then it is shown on the Declarations Page. The deductible that applies to Collision Coverage is shown on the. Declarations Page. 2. a newly acquired car; 3. a temporay. r substitute car; 4. a camper that is designed to be mounted on a pickup truck and shown on the Declarations :Page;- 5. a non-owned car while it is: a. being driven by an insured; or b. 'in the custody of an insured . if at the -time of the loss it is: (1) not being driven; or (2) being driven by a person other than an insured and being occu- pied by an insured; and 28 9838A 6. a non-owned trailer and a non-owned camper while. it is being used by an in- sured; including its parts and its equipment that are common to the use of the vehicle as a vehicle. However, parts and equipment of trailers and campers must be securely fixed as d 'permanent part of the trailer or camper. Daily rental charge means the sum of: 1. the daily rental rate; 2. mileage charges;,and.'. 3. related taxes. Insured means:you and resident relatives. Loss means: 1. direct, sudden, and accidental: damage to; or 2-; . total or partial theft?of a covered vehicle."' Loss does not include any reduction in -the value' of any covered vehicle after it has been repaired, as compared to its value before it. was damaged. Loss Caused By-Collision means a loss caused by h - a covered vehicle. hitting-or being hit by another vehicle_or other.object; or 2. the overturning of a coWred vehicle. Any loss :caused 'by . z ssil'eg,: falling objects, windstorm; halt,"' fire, 'explosion, earthquake, water, flood, total or partial theft, malicious mischief, vandalism, riot, civil commotion, or hitting or being hit by a bird or an animal is not a Loss Caused By Collision. Non-Owned Camper means a camper de- signed to be mounted on a pickup truck that is in the lawful possession of an insured and that neither:` 1. is owned by: a. an insured; b. any other person who resides primar- ily in your household; or c. an employer of any person described in a, or b. above; nor 2. has been used by, merited by, or in the pos- session of an insured during any part of each of the 31 or more consecutive days immediately prior to the date of the loss. Non-Owned Trailer means a trailer that is in the lawful possession of an insured and that neither: 1. is owned.by:, .. . a. ari`hOured; b. any other person who resides primar- -ily in your household; or c. an employer of any person described in a. orb: above; not' 2. has been used by :.-rente.d- by; or. in.the pos- session of an insured„ during any part of each of the 31 or more consecd ive days immediately.-priorto they date. o.Mhe loss. Insuring Agreements 1. Comprehensive Coverage We will pay: a. for,loss,-exce% loss caused by colli- sion, to, a, covered vehicle; and. b. transportation expenses incurred by an insured, as. a result of the total theft of your car: ona,newly.acquired car. These transportation expenses are.payable: (1) during.: the period that: (a) starts on the date you report the -theft to us; and (b) ends on the earliest of: (i) the date. the vehicle is re- turned to,'your possession in a.drivable condition; (ii) the date .we offer to pay you. for the-loss if the ve- hicle has not yet been re- covered; or. _. 29 9838A 2. 3. (iii) the. date we offer to. pay you for the loss if the ve- hicle is. recovered, but is a total loss as determined by us; and (2) during the period that:. _ (a) starts on the date the vehicle is left at a repair.;facility if the stolen vehicle is recovered, re- turned to your possession in a drivable condition, and has un- repaired.. damage. that resulted from the total theft; and (b). ends of ;the date the vehicle is repaired. These transportation expenses must, be reported to`'us before.we will pay such incurred expenses. Collision, Go: Vera ge We will.pay for loss caused by collision to a covered vehicle. Emergency Road Service Coverage We will pay the fair cost incurred by an in- sured for: a. rip to ,one hour of labor to -zepair a'cov- ered vehicle of the-' place of its break- down; b. towing to the -nearest repair facility where necessary' ? repairs=- cars be made if .. a covered 'vehicle.is notdrivable; . c. towing a covered vehicle out of a loca- tion where it is stuck if the vehicle is on or immediately next to a public road; d. delivery of gas, oil, battery, or tire nec- essary to return a covered vehicle to driving condition. We do not pay the cost of the. gas, oil, battery, or tire; and e. up to one hour of labor for locksmith services to unlock a covered vehicle if its key is lost, stolen, or locked inside the vehicle. 4. Car Rental and Travel Expenses Coverage a. Car Rental Expense We will pay the daily rental charge in- cursed when you rent a car from a car ,, business whiles your car or a newly, acquired car' is: (1) not drivable; or (2) being repaired i. as a result of a loss - which , would be payable under Comprehensive Cover- age or Collision Coverage. f We will pay the daily rental charge in- curred during .a period that (1) starts on the date: (a) .the.vehicle is not drivable as .a k result of the loss; or (b) the vehicle is... left: at a repair facility if the vehicle is driv-_ able; and (2) ends on the earliest of: (a) (b) (c) the date the vehicle has been . repaired or replaced; . . r the date we offer to pay you for the loss if the vehicle is, repair- able but. you choose to delay re- pairs; or five days after we offer. to pay you for the loss. if the vehicle is: . (i) a total loss as determined by us; or (ii) stolen and not recovered. The amount of any such daily rental charge incurred. by you must be re- ported to us before we will pay such ` amount. b. Travel Expenses We will pay expenses for commercial transportation, lodging, and meals if your car or a newly acquired car is not 30 9838A f' drivable as a result of a loss which would be payable under Comprehensive Cover- age or Collision Coverage. The loss must occur more than 50 miles fi-om your home. Ph? will only pay these expenses if they are incurred by: (1) an insured during the period that: (a) starts after the loss occurs; and (b) ends on the earlier of (i) the insured's arrival at his or her destination or home if _the vehicle is left behind for repairs; or (ii) the repair. of the vehicle if the insured waits for re- pairs before: continuing on to hi,s;or her, destination or returning home; and (2) you,,.or any person you choose, to travel to retrieve the vehicle and drive it to either the original desti- r a. t ion: or your home if the vehicle was, le ft' be, hind for repairs. ;These expenses must.be reported to us before we will pay such incurred ex- penses: C. Mental Car - Repayment' of De- dui ible Expense We will pay the comprehensive de- ductble or 'collision deductible an in- sured is required to pay the owner of a car rented from wear business. Supplementary Payments Comprehensive Coverage and.Collision Coverage If . Symbol "D" is shown on the Declarations Page. and the corresponding. covered vehicle sustains loss for which°,we make a payment under Comprehensive Coverage, or if Symbol "G" is shown on the Declarations. Page and the corresponding covered. vehicle sustains loss for which we make a 'payment under Collision Coverage, then we will. pay reasonable ex- penses incurred to: I. tow the covered vehicle immediately after the loss:. a. for a reasonable distance from the lo- cation of the loss to any one repair fa- cility, chosen by an insured or the owner of the covered vehicle, if the covered vehicle is not drivable;.or b. to any one repair facility or commer- cial storage facility, neither of which was :chosen by an insured :or the owner of the covered vehicle. We will also pay ' reasonable expenses incurred to tow the covered vehicle for a reason- able distance from this facility to any one repair ..faci.lty chosen by an irr- sured or the owner of the covered ve- hicle, if the covered vehicle is not drivable. 2. store the.coy#red vehicle, if it is not driv- able immediately after the loss, at: a." any one repair :facility or commercial storage- -facility, .neither of which was chosen by an insured or the owner of the covered. vehicle,, and b. any one repair facility chosen by the owner of the covered vehicle,' and we deterihine such vehicle is a total loss. If .the. owner of . the covered vehicle con- serits; 'then. we may- move the covered vehi- dl .. at o.ur expense. to reduce storage costs. If the owner. of the .covered: vehicle does not consent, then we -will pay only the stor- age.. costs that would have resulted if we ..had moved the, damaged, covered vehicle; and 3: clean up debris from the :covered vehicle at the location .of the loss. The most we will pay.to clean up the debris is $250 for any one loss.' Limits and Loss Settlement _ Comprehen- sive Coverage an&.Collision.Coverage 1. We have the right to choose to settle with yo'u or the owner of the covered vehicle in one of the following ways: 31 9838A a. Pay the cost to repair the covered ve- hicle minus any applicable deductible. (1) We have the right to choose one of the following to determine the cost to repair the covered vehicle: (a) The cost agreed to by both the owner of the covered vehicle and us; (b) A -bid or 'repair estimate ap- proved by us; or (c) A repair estimate that is writ- ten based upon or adjusted to: (i) : th& 'prevailing competitive price; (ii) the lower of paintless dent repair pricing established by an - agteement we. have with a third party or the paintless dent repair price that is competitive in the market; or (iii) a. combination 'of (i) and (ii) above. The. prevailing competitive price .means prices charged by a ma- j of t of the repair' market in the area where,the covered vehicle is tole repaired as determined by a survey made by us. If asked; we wi11"'identify some facilities that will perform the repairs `at the prevailing competitive. price. The estimate will include parts suffi- cient to restore the covered vehi- cle to its pre-loss condition. You agree with us that the repair estimate may include new, used, recycled, and reconditioned parts. Any of these parts may be either original equipment manufacturer parts or non-original equipment manufacturer parts. You also agree that replacement glass need. not have any insignia, logo,. trademark, etching, or other marking thatmas on-the replaced glass. "(2)' The cost to -repair the covered ve- hicle does not include -any reduc- tion. in the value of.-the covered- vehicle after it has been repaired, as compared to its value before it was damaged. (3) If the repair or replacement of a part results in betterment of that part, then you or the owner of the covered vehicle must pay for the amount:of the betterment. (4) If you, and we agree, then wind-, shield'. . will be repaired in- .stead; of replaced. b. Pay the 'actual 'cash value of the cov- ered' .vehicle minus any applicable de- ductible. (1) The owner of the covered vehicle and we must agree upon the actual cash value of the covered vehicle. :If there, is disagreement as to the( .actual cash value of 'the covered vehicle, then the disagreement will be. resolved by appraisal upon i written request of the .owner or us, using the following procedures: (a), The owner and . we will each select a.competent.ap- aiser. (b): The.tw.o. appraisers will select a third competent appraiser. If they are unable to agree on a third appraiser within," t6 days, then either the owner or we may. petition a. court that has jurisdiction to select the third appraiser. (c) Each party will pay the cost of its own appraiser, attorneys, and expert witnesses, as well as any other expenses incurred 3? 9838A C. by that party. Both parties will share equally the cost of the third appraiser. (d) The appraisers shall only de- termine the actual cash value of .the covered vehicle. Ap- praisers shall have no-author- ity to ` decide any other questions of fact, decide any questions of. law, or, conduct appraisa-L -bri a class-wide or class-representative basis. (e) A written..appraisal.that is both agreed upor ,.by and signed by any or.`appr.aisers;..and that also containa ah explanation of how-they.,,a rived at-Aheir ap- pia saI will be :binding qn the owner of A h& covered vehicle and* us (f) We do riot: waive any of our rights:.by.s.ubmitting. to an ap- praisal; (2) The damaged covered vehicle must `bte give: h".1o' us in exchange for our payment; unless we agree that the owner may keep it. 'If the owner ,keeps .the - covered vehicle, then.,ourpayment .will be reduced by the yalue of the covered vehicle after the `loss. Return the stolen covered vehicle to its owner and pay, as described in La. above, foz any..direct, sudden., ..and ac- cidental damage that resulted. from the theft. 2. The most we 'will pay for-transportation ex- penses under, Comprehensive Coverage is $25 per day subject to an aggregate limit of $750 per loss.. 3., The most we will pay, foir loss to a non- owned trailer or a non-owned camper is $2;500. Limits - Car Rental and Travel Expenses Coverne L. Car Rental Expense The limit for Car Rental Expense is shown on the Declarations. Page under "Limit - Car Rental Expense Each Day, Each Loss". a. The limit shown under "Each Day" is the most we will pay for the daily rental charge. If: (1) a -dollar, amount is =shown, then we will pay-the daily. rental charge up to. that dollar amount; . (2) a percentage amount is shown, then we will .pay that percentage of the daily renfal - charge: b. Subject to the 'Each Day" limit, the limit shown under "Each Loss" is the most we will pay for Car. Rental Ex- pense: incurred.:as a result' of .any one loss.:' 2. Travel Expenses, The most.we will pay .for Travel Expenses incurred by all insureds as a result - of any :one, loss is MO., 3. Rental Car - Repayment of Deductible Expense The most -we will..pay for Rental Car - Re- payment .of' Deductible Expense incurred as a result of any one loss is $500. Nondu:plication We::will not pay for any loss or. expense under the Physical. Damage Coverages for which the insured or owner of the covered vehicle has already received payment from, or on behalf of, a party who is legally liable for the loss or ex- pense. Exclusions THERE IS NO COVERAGE FOR:- 1. ANY COVERED VEHICLE THAT IS: 33 9938A a. INTENTIONALLY DAMAGED; OR b. STOLEN 2. 3 BY OR AT THE DIRECTION OF AN IN- SURED; ANY COVERED VEHICLE WHILE IT IS RENTED TO ;OR LEASED TO.OTH- ERS BY AN INSURED; ANY COVERED VEHICLE' WHILE IT IS USED TO CARRY PERSONS FOR A CHARGE. This exclusion does not apply to the use of a private passenger,car on a share-the-expense basis; 4. ANY COVERED VEHICLE DUE TO: a. THEFT; b. CONVERSION; c. EMBEZZLEMENT; OR d. SECRETION 5. 6. 7 BY AN INSURED, A CONSIGNEE, AN AGENT OF A CONSIGNEE, OR A PER- SON WHO OBTAINS POSSESSION OF THE COVERED VEHICLE WITH THE PERMISSION OF A. CONSIGNEE OR AGENT OF A CONSIGNEE; LOSS TO YOUR CAR -OR A NEWLY ACQUIRED CAR 'IF AN INSURED VOLUNTARILY' RELINQUISHESPOS- SESSION OF THAT CAR TO A PERSON OR ORGANIZATION: UNDER AN AC- TUAL OR PRESUMED SALES AGREEMENT; . ANY COVERED VEHICLE?TO THE EX- TENT OUR PAYMENT WOULD BENEFIT ANY CARRIER OR OTHER BAILEE FOR HIRE THAT IS LIABLE FOR LOSS TO SUCH COVERED VEHICLE; LOSS TO ANY COVERED VEHICLE DUE TO FUNGI. THIS APPLIES RE- GARDLESS OF WHETHER OR NOT THE FUNGI RESULT FROM A LOSS THAT IS PAYABLE UNDER ANY OF THE PHYSI- CAL DAMAGE COVERAGES. WE WILL ALSO NOT PAY FOR ANY TESTING OR REMEDIATION OF FUNGI, OR ANY ADDITIONAL COSTS REQUIRED TO REPAIR ANY COVERED VEHICLE, THAT ARE DUE TO THE EXISTENCE OF FUNGI;' 8. LOSS TO ANY COVERED VEHICLE : THAT RESULTS FROM: a. NUCLEAR REACTION; b. RADIATION OR RADIOACTIVE CONTAMINATION FROM ANY SOURCE; OR c. THE ACCIDENTAL OR INTEN- TIONAL DETONATION OF, OR RELEASE OF RADIATION FROM, • ANY NUCLEAR OR RADIOAC- a TIVE DEVICE; ? 9. LOSS To. ANY COVERED VEHICLE ' THAT' RESULTS FROM THE TAKING OF OR SEIZURE OF THAT COVERED VEHICLE BY ANY GOVERNMENTAL AUTHORITY; k 10. LOSS -TO`-ANY COVERED VEHICLE THAT RESULTS FROM WAR OF ANY 4 KIND;.. 11. YOUR CAR WHILE SUBJECT TO ANY: , a. LIEN AGREEMENT; 3 r b. RENTAL AGREEMENT; c. LEASE AGREEMENT, OR d. SALES AGREEMENT NOT SHOWN ON THE DECLARA- TIONS PAGE; 12. ANY NON-OWNED CAR WHILE IT IS: a.' BEING MAINTAINED OR USED BY ANY PERSON WHILE THAT PERSON IS EMPLOYED IN OR ENGAGED IN ANY WAY IN A CAR BUSINESS; OR b. USED IN ANY BUSINESS OR OC- CUPATION OTHER THAN A .CAR BUSINESS. This exclusion (12.b.) does not apply to a private passenger car; 34 9838A 13.. ANY PART OR EQUIPMENT OF A COVERED VEHICLE IF THAT PART OR EQUIPMENT: a. FAILS OR IS DEFECTIVE; OR b. IS DAMAGED AS A DIRECT RE- SULT OF: (l) WEAR AND TEAR; (2) FREEZING; OR (3) MECHANICAL, ..ELECTRICAL, OR ELECTRONIC .. BREAK- DOWN OR MALFUNCTION. OF THAT PART OR EQUIPMENT. This exclusion. does not- applyif the, loss is the result of theft of the covered vehicle; 14. ANY PART OR EQUIPMENT: a. THAT IS NOT LEGAL FOR USE IN OR ON THE-COVERED VEHICLE IN THE JURISDICTION WHERE THE COVERED VEHICL.E..IS REG- ISTERED; OR b. THE USE OF WHICH IS. NOT LE- GAL IN THE JURISDICTION WHERE THE COVERED VEHICLE IS REGISTERED BECAUSE OF HOW OR WHERE THAI'?PART OR EQUIPMENT IS INSTALLED IN OR ON THE COVERED VEHICLE. However, if there is a legal version of the part or equipment that is necessary for the safe operation of the covered vehicle, then we will pay the cost that we would other- wise have paid to repair the vehicle with the legal version of the part or equipment. We will not pay any cost necessary to modify the vehicle for installation of the legal version of the part or equipment; 15. TIRES. This exclusion does not,-apply if: loss is caused by missiles, falling ob- jects, windstorm, hail, fire, explosion, earthquake, water, flood, total or par- tial theft, malicious mischief, vandal- ism, riot, civil commotion, or hitting or being hit by a bird or an animal; or b. loss caused by collision to another part of the covered vehicle causes loss to tires; 16. REMOVABLE PRODUCTS USED FOR STORAGE OF AUDIO, VIDEO, OR OTHER DATA, INCLUDING BUT NOT LIMITED.. TO TAPES, DISCS, AND MEMORY -CARDS, NOR IS THERE COVERAGE FOR THE RECONSTRUC- TION OF DATA CONTAINED THEREIN; 17. ANY. EQUIPMENT USED TO DETECT OR INTERFERE WITH. SPEED;.M',tAS- URING:DEVICES; . 18 A CAMPER, INCLUDING` ITS-.'PARTS AN D. ITS, EQUIPMENT, T a: DESIGNED .TO BE, MOUNTED ON A PICKUP TRUCK; b. OWNED RYAN INSURED; AND c. NOT SHOWN ON THE DECL,ARA TIONS PAGE; OR 19. ANY COVERED VEHICLE WHILE IT IS: a. BEING PREPARED FOR,,.USED IN PRAC'T'ICE FOR, OR OPERATED IN ANY ` RACING CONTEST, SPEED CONTEST,. HILL-CLIMBING' CON- TEST, JUMPING CONTEST, OR ANY SIMILAR CONTEST;.OR b.. ON-A TRACK DESIGNED PRIMAR- ILY FOR RACING OR HIGH:. SPEED DRIVING.- This exclusion does' not apply ..if the vehicle is being used in connection with an activity other than racing, high speed driving, or any type of competitive driving. If Other Physical Damage Coverage or Similar Coverage Applies I. If the same loss or expense is payable un- der more than one of the physical damage coverages provided by this policy, then only the one coverage that pays the most for that loss or expense applies. 35 9838A 2. If any of the physical damage coverages provided by-this policy and one or more other policies issued to an insured by one or more. of the.State Farm Companies ap- ply to the same. loss or expense, then only one policy applies. We will select a policy that pays the most for the loss or expense. 3.. The .physical damage coverages provided by this policy apply as primary coverage for a loss to your car. 4 If. similar coverage provided 'by. one or more sources other than the State Farm Companies also applies as primary cover- age for the same loss or expense, then the State Farm Companies will pay the pro- portion of ;be 'loss or expense. payable as primary . that the maximum amount that may be paid by the State.Farrri Companies bears to the sum of such :amount and the limits of all other similar coverage that ap- plies as primary coverage..,_. Except as provided in 3. above, the physi- cal damage coverages provided by. this policy apply as excess coverage. If. similar coverage provided by, one or more sources other than'"the .Mate Farm Companies also applies as excess cover- age for' the -same loss or, expense; then the State Farm Companies will pay the pro- portion of the loss or expense payable as excess that the maximum amount that may be ' paid by the State Farm Companies bears to the sum of such amount and the limits of all other similar coverage that ap- plies as excess coverage. Financed Vehicle If a creditor is shown on the Declarations Page, then any- Comprehensive Coverage or Collision Coverage provided by this policy applies to that creditor's interest in your car. Coverage for the creditor's interest is only provided for a loss that is payable to you. However, if this policy is cancelled or non- renewed, then we will provide coverage for the creditor's interest until we notify the creditor,of the termination of such cov- erage. This coverage for the. creditor's in- terest is only provided for a loss that would have been payable to you if this policy had not been cancelled or noarenewed. The date such termination is-effective will be at least 10 days after the date we mail or elec- tronically..tran-smit a notice of.the tennina- 'tion ..,,to the:. creditor. The mailing or . electronic transmittal of the notice will be sufficient proof'of notice; , . 2. If we pay .such creditor, then we are enti- tied. to the creditor's -right -of recovery against you to the extent of our payment::. Dur right of. recovery does not . impair the creditor's right to.* recover 'the full amount I of its claim., Our.Paymeni Options 1. Comprehensive Coverage and Collision Coverage a, We may,- at our option, make payment to.. one, ?.or more of the.. following for loss.. jo a covered vehicle owned by you:.. f (1) You; M The -repairer; or (3) A creditor shown on the Declara- tions Page,. to the extent of its in- tere.st. . b. We may, at our option, make payment to one' or more of the following for loss. to a covered vehicle not owned by you: (1) You; (2) The owner of such vehicle; (3) The repairer; or (4) A creditor, to the extent of its in- terest. 36 9838A 2 Emergency Road Service Coverage and Car Rental and Travel Expenses Coverage We may, at our option, make payment to one or more of the following: . a. You; b. The insured who incurred the expense; 1 0l• c. Any party that provided the service for which payment is owed. INSURED'S DUTIES 1. 2. 3. Notice to. Us ofan Accident. or Loss The - nsaredrust. give _ us or one of our agents -notice of the accident or, loss as soon. as _teasonably po'ssil?le: The notice must° give 'us: a. your. name; b. the names and addresse&.of all persons involved in the accident or loss; c..:- the -hour, date, place, and facts of the accident'or loss; and ? - d. 'the-names and addresses Hof witnesses to the accident or Loss. Notice to Us of a Claim or Lawsuit a. If a claim is..made,against an insured, then that insured must immediately send us- eveky, demand; notice, and claim:received. b. If a -lawsuit,is filed against an insured, then that insured must immediately send us-every summons and legal process re- ceived. Insured's Duty to'Cooperate With Us a. The insured must * cooperate with its and, when 'asked, assist 'us. in: (1) making: settlements; (2) securing and giving evidence; and (3) attending, and getting. witnesses to attend, depositions, 'hearings, and tri a] s. b: The insured must .not, except at his or her own cost,-voluntarily: (1). make any paynZentto'others; or (2) assume any.obligation:to others unless authorized by ' the terms of this policy. C. ° Any Person ''or, 'organization making claim under this policy-mus''.when we re.quire,. give ..us proof. o f loss on forms tine, furnish. This .noes ;not apply under the First Party tCoverages if we fail to supply:ihe foie s?. within X10 'days after receiving the notice `of claim. 4. Questioning Under Oath Under: a. Liability Coverage,: each insured; b. First Party Coverages, .Uninsured:: Mo- tor Vehicle Coverages., ..and, Underin- sured Motor Vehicle Coverages, each insured, or any other person or or- ganization making claim or. seeking payment; and c. Physical Damage Coverages, each in- sured or owner ,of a covered vehicle, or any- other person or organization making claim, or, seeking; payment; must, at our option, submit to an examina- tion under oath; provide a'statement under oath, or do both, as reasonably often as we require. Such person or organization must answer questions under oath, asked by 37 9838A anyone we name, and sign copies of the answers.. We may require, each person or organization answering questions under oath to answer the-questions with only that person's or organization's` legal representa- tive, our, representatives; any person or persons designated by us to record the questions and answers, and no other per- son present. 5. Other.. Duties Under the Physical Damage Coverages When there is a loss, you or the owner of the cove' i*d vehicle must:' a: protect the covered vehicle from addi- tiornal damage. We will pay any rea- s.onable:expense: incurred to do so that is reported to us; b. make a prompt reportto the police when,;the,lo,ss is the result of theft; c. allow, us :to: (1) `inspect 'any darraged `property be- fore its repair or disposal; ..(2).test dby part.. or equipment before aliat part,ot: equipment. is -removed or repaired; and: (3) move the covered vehicle at our expense in order to conduct such insp.ection or testing; d. provide us.-all: (1)' records; (2) receipts; and (3) invoices, - that we request and allow us to snake copies and e. not abandon the covered. vehicle to us. 6. Other Duties Under First. Party Cover- ages, Uninsured Motor. Vehicle Cover- ages, and Underinsured Motor ,Vehicle Coverages. A person making claim under: a. First Party Coverages, Uninsured Mo= for Vehicle.. Coverages, and- Underin- sured Motor Vehicle Coverages must notify us of the claim and give us. all the details about the death, injury, treatment, and other informatioi•i that we may need as, soon as reasonably possible after the injured insured is first examined or treated for the injury. If the insured is unable to give us no- tice, then any other person. may give us the required notice; b.. 7irst,Party Coverages..inust?:authorize us, to obtain all medial. bills, reports, and records. 'If. the person is dead or unable to act, his or. her legal represen- iative shall give': us the'authorization;. c. Uninsured Motor Vehicle ; Coverages r and Underinsured Motor Vehicle. Cov- erages must: (1)'be examined as reasonably often as .we. may require by ..physicians chosen and:.poid by us i A: copy of the report will be sent to the per- son-upon written request; t. ?2) provide written authorization for . us to obtain: (a) inedicalbills; (b) medical records; (c) wage, salary, employment, tax, business, -and: financial infor- mation; and -(d) any other information we deem necessary to substantiate the claim. If an injured insured is a minor, unable to act, or dead,- then his or her legal representative must pro- vide 'us with the written authoriza- tion. . If the. holder of the information re- fuses to provide it to us despite the authorization, then at our request 38 983 8A the person making claim or his or a lawsuit against the party liable her legal representative must ob- for the accident; and tain the information and promptly d. Uninsured Motor Vehicle Coverages provide it to us; and must report an accident. involving a (3) allow us to inspect the vehicle that motor vehicle whose owner and driver, the insured occupied in the accident; remain. unknown, to the police as soon (4) send its immediately -a copy of all as practicable and to us within 30 days lawsuit papers :if the insured files or as soon as practicable. GENERAL TERMS 1. When Coverage Applies a. request we.` replace a car currently shown on the-Declarations Page of this :The coverages provided by this policy are - car newly owned by policy with*. .the shown on the Declarations Page and apply . added amount due. you and pay us any to- accidents-and losses that occur during the , If you make- such request while this olicy`period. The policy period is shown p policy is in forceand: on the Declarations--Page- and is for succes- .per..iods of : six. mQpths . each. for which sive (1) before the 'cdr' 'newly owned by . the renewal .premium is paid:. The policy you `ceases to` be a newly acquired period 'begins and ends at:` 12::01 AM Stan- car, then that car newly owned by dard Time at the address shown: on the Dec- you will be insured -by `this policy larations Page. as your car beginning on the date 2. Where Cove rage. Applies. the car newly owned :by you is de- The coverages provided by this policy are `livered to you. The added amount ' shown on the Declarations Page and apply e calculated based on due wilf b to accidents and losses that occur: that date; or a. in the United. States of America and its (2): after, the car newly owned by you temtones and possessions, ; .. ceases,to be a newly acquired car, then that car newly owned by you b. in_.Canada and will' lie insured by this policy as c. while a vehicle for which coverage is your car-beginning on the date and provided by., this policy. is being time 'you make ';the, request. The shipped.' .between the . ports of the added amount diie will be calcu- United States of America, its territo- lated based on that date; or ries, its possessions, and Canada. b. apply to the 'State Farm Companies 3. Newly Owned or Newly Leased Car for separate coverage to insure the car if you want to insure'a car: newly owned by newly owned by, you. Such coverage you with the State Farm Companies after will be provided only if both the appli- that car ceases to be a newly acquired car, cant and the vehicle are eligible for then you must either: coverage at the time of the application. 39 9838A 4. Changes.to This Policy a. Changes in Policy Provisions We may only change the provisions of this policy by: (1) issuing a revised policy booklet, a ?'. revised Declarations Page, or an endorsement; or (2) revising this policy to give broader coverage without an additional pre- mium charge. If any coverage pro- vided by this policy is changed to give broader coverage, then we will give you the broader coverage as of the date we make the change effec- tive in the state of -'Pennsylvania without issuing a revised policy booklet, a revised Declarations Page, or an endorsement. b. Change of Interest (1) No. change of interest in this policy is effective unless we consent in writing. .(2) Except under Death, Dismember- ment and Loss of:Sight Coverage, if a..named insured:.dies, then the definition of insured..under each of the coverages provided by this policy is changed to include: (a) any person with :lawful custody .of your car, a. newly acquired car; or a temporary substitute car until a legal: representative is qualified; and then (b) the legal representative of the deceased named insured. This only applies while such per- son is maintaining or using your car, a newly acquired car, or a temporary substitute car. Policy notice requirements are met by mailing the notice to the de- ceased named insured's last known address. 40 9838A c. Joint and .Individual Interests If you consists of more than one per- son or entity, then each acts for all to change or cancel the policy. Premium a. Unless as otherwise provided by an al- ternative payment plan in effect with the State Farm Companies with re- spect to. the premium for this policy, the premium is due and payable in full on or before the first day of the policy period shown on the most recently is- sued Declarations. Page or Renewal Notice. b. The renewal premium for this policy will be based upon the rates.in effect, the. coverages carried, the applicable limits, deductibles, and other elements that affect the premium that apply at the time of renewal. c. The premium for this policy may vary based:upon the purchase of. other in- surance from the State Farm Compa- nies. d. The premium for this policy is based upon information we have received from You or other sources; - You must inform us if any information regarding the following is incorrect : or incom- plete, or. changes during the policy pe- riod, and you must answer questions we ask regarding the following: (1) Your car, or its use, including an- nual mileage; (2) The persons who regularly drive your car, including newly licensed family members, (3) Your marital status; or. (4) The location where your car is primarily garaged. If the above information or any other information used to determine. the premium is incorrect, incomplete, A changes during the policy period, or is not provided to its when we ask, then we May. decrease or increase the, re- mium during the policy period. Ifpwe decrease the premium during the pol- icy period, then we will provide a re- fim or a credit in the amount of the decrease. If we increase the premium during the policy 'period, .then you must pay the amount of the increase. 6. Renewal will provide the date cancellation is ef- fective. The mailing of the notice will be suffi- cient proof of notice. (1) If we mail or deliver a cancellation notice: We agree,tQ. repb* this policy. for, the next policy period, upori: payment of the renewal premium when due, unless we mail or de- liver a nonreiiewal"notice. or a cancellation notice as.sef fojrth in ,7.., apd8. below. 7. Nonrenewal: If we decide not,to renew ths'policy: a. because a named insured's. driver's li- cense .or,motor'vehicleTegistration has been under suspensiois - or revocation during.jhe policy 'period; then at least 15, days before; the end of the current policy peri od; or b. for any other reason; then at least 60 days before the end of the; current,pol- i cy period we will. mail, or deliver a nonrenewal no- tice to the, most recent address. provided to us by you as.-the policy.address: The mail- ing of the notice will be sufficient proof of notice. 8. Cancellation a How You May Cancel You may cancel this policy by provid- ing to us advance notice of the date cancellation is effective: 'We may con- firm the cancellation in writing. . b. How And.-When We May Cancel . We'may cancel this policy by mailing or delivering a written notice to the most recent address provided to pus by you as the policy address. Thee notice 41. 9838A (2 (a) during the first 59 days fol- lowing this policy's effective date; .or (b) because the preinitnn is not paid when due or a named insured's driver's license. or, motor vehicle registration has' been under sus- pension or revocation during the policy period- then' the" date caicellation is effec- tive-will: be at .least 15 : days after the `date 'we.:snail or' .deliver the cancellation notice. If we snail `or'deliver 'a cancellation notice, after this :policy has been in force',_-.for more than 59 ;days and because the insured has misrepre- sented or..concealed : facts material to our acceptance of fhe risk, then the date cancel)atiOrf is ' effective wily be at least: 60 -days after the datee, we mail or. deliv.erAhe cancel- lation notice (3) After this policy has-=been in force for more than 59 days., we will not cancel this policy before the end of the current,policy period>unless: (a) the premium is not paid when due; (b) a named insured l as 'T ad his or her driver's license .or'motor vehicle-registration`under sus- pension or:revoca'tion during the policy per..iod..:l.f.we cancel this policy- solely because a named insured°s driver's li- cen'se was suspended or-re- voked 'due to such named A insured's, failure to respond to a , citation, we will reinstate this policy to provide continu- ous coverage if you furnish to us, before the cancellation ef- fective date, proof that such named insured has, (i) responded. to all citations; (ii) paid all fines and penalties in connection with them; or .: (c ....the. insured has misrepresented of.;concealed facts material to ou."r, acceptance of the risk. c. 'Return of Unearned Premium If you cancel.this policy,.then premium may be earned o' a:.short rate basis. If we cancel, this. policy, then premium will be earned on a pro rata basis. 0. Any unearned premium will be re- turned at .the. time -of -cancellation or within: (1) 30 days after we'cancel this policy; or (2) a reasonable. time after cancella- tion if you, cancel thispolicy. Delay in the return of. any unearned premium does not affect the cancella- tion date. Assignment-. No assignment of benefits or other transfer of rights is binding upon its unless ap- proved by its. 10. Bankruptcy or Insolvency of the Insured Bankruptcy or insolvency of the insured or his or her estate will not relieve its of our obligations under this policy. 14. Concealment or Fraud There is no coverage under this policy-if you or any other person insured under this policy has made false statements with the intent to conceal or misrepresent any mate- rial fact or circumstance in connection with any claim under this policy. 12.. Our Right to. Recover Our Payments Death, Dismemberment and Loss of Sight Coverage payments are not recoverable by us. Under all other coverages the follow- ing apply: a. Subrogation If we are obligated under this policy to make payment. to or for ,a person or organization who has ,,a legal; right to collect from another person or organi- zation, then we w,ill':be,..'subrogated to that right-to the extent of our payment. The person or organization 'to- or for wliom° we, make payment. must help us recover our payments by: (1) doing nothing to. impair. that legal right, (2) executing any documents we may need to assert that legal right; and (3) taking legal action through our representatives when we ask. b. Reimbursement If we make payment under this policy and the person or organization to or for. whom we make payment recovers or has- recovered from,another person or organization; then the person. or or- ganization to or for whom we make payment must: (1) hold in trust for us the proceeds of any recovery; and (2,) reimburse as to the extent of our payment. 13. Legal Action Against Us Legal action may not be brought against its until there has been full compliance with all the provisions of this policy. In addi- tion; legal action may only be brought against us regarding: 42 9938A a. Liability Coverage after the amount of damages an insured- is legally liable to pay has been finally determined by: (1) judgment after an actual trial, and any appeals of that judgment if any appeals are taken; or (2) agreement between the claimant and us. b. Uninsured Motor Vehicle Coverages and Underinsured Motor Vehicle Cov- erages if the insured or that insured's legal representative within two years immediately following the date of the accident: (1) presents either an Uninsured Mo- tor,Vehicle Coverage claim or an Underinsured Motor Vehicle Cov- erage claim to us; and (2) files a lawsuit in accordance with the Deciding Fault and Amount provision of the involved cover- age. Except as provided in c.(2) above, no other legal action may be brought against us relating to Uninsured Motor Vehicle Coverages or Underinsured Motor Vehicle Coverages for any other causes of action that arise out of or are related to these coverages until there has been full compliance with the pro- visions titled Consent to Settlement and Deciding Fault and Amount. c. Physical Damage Coverages if the le- gal action relating to these coverages is brought against us within one year immediately followinQ the date of the accident or loss. 14. Choice of Law Without regard to choice of law rules, the law of the state of: a. Pennsylvania will control, except as provided in b. below, in the event of any disagreement as to the interpreta- tion and application of any provision in this policy; and b. Illinois will control in the event of any disagreement as to the interpretation and application of this policy's: (1) Mutual Conditions provision found on the most recently issued Declarations Page, if this policy was issued by the State Farm Mu- tual Automobile Insurance Com- pany; or (2) Participating Policy provision found on the most recently issued. Declarations Page, if this policy was issued by any, subsidiary or af- filiate of the State Farm Mutual Automobile Insurance Company. 15. Severability If any provision of this policy is held inva- lid or unenforceable by a court that has ju- risdiction, then: a. such provision will remain in full force to the extent not held invalid or unen- forceable; and b. all other provisions of this policy will remain valid and enforceable. 43 9838A 00 M N O a? 0 rn IT w a? a 0 Z. a? o=?/? a Vl F aW x O U a O a O O h V d H d W W a St?iF /?L®R\)M iNSUeaHCo 6938A.1 AMENDATORY ENDORSEMENT This endorsement is a part of the policy. Except fob the changes this endorsement makes, all other provisions of the policy remain the same and apply to this endorsement. 1. THIS POLICY The following is added: 5. Your purchase of this policy may allow you to purchase certain cov- erages, coverage options, coverage deductibles, coverage limits, or coverage terms on other policies from the State Farm Companies, subject to their applicable eligibil- ity rules. 2. DEFINITIONS a. Serious injury is changed by deleting item l.e. and adding the following: 4. An individual otherwise bound by the limited tort election shall retain full tort rights if in- jured while an occupant of a private passenger motor vehi- cle if that vehicle is described on a policy under which full tort rights were elected and that individual is: a. residing in the household of any individual identi- fied by name as an insured under that policy; and b. either: (1) a spouse or other rela- tive of any individual identified by name as an insured under that policy; or (2) a minor in the custody of either such named insured or relative of such named insured. b. State Farm Companies is changed to read: State Farm Companies means one or more of the following: 1. State Farm Mutual Automobile Insurance Company; 2. State Farm Fire and Casualty Company; and 3. Subsidiaries or affiliates of ei- ther 1. or 2. above. 3. LIABILITY COVERAGE Exclusions a. Exclusion 2. is deleted. b. The exception to exclusion 8. is changed to read: This exclusion does not apply to: a. you; b. any resident relative; or c. any agent, employee, or busi- ness partner of a. or b. above while maintaining or using your car, a newly acquired car, a tem- porary substitute car, or a .trailer owned by you; c. The exception to exclusion 11. is changed to read: This exclusion does not apply to damage to a: a. motor vehicle owned by the employer of you or any resident relative if such damage is caused by an insured while op- erating another motor vehicle; Pagel of 2 6938A.1 ©, Copyright, State Farm Mutual Automobile Insurance Company, 2008 b. residence while rented to or ' leased to an insured: or ' c, private garage while rented to or leased to an insured. 4. UNINSURED MOTOR VEHICLE COVERAGES Additional Definitions - Coverages U and U3 Item 2. under "Uninsured ?Motor vehicle means a land motor vehicle:" is changed to read: 2. the owner and driver of which re- main unknown and which causes bodily injury to the insured. 5. GENERAL TERMS a. The following is added to 2. Where Coverage Applies: Liability Coverage, Medical Pay- ments Coverage, Extraordinary Medical Payments Coverage, Loss of Income Coverage, Funeral Benefits Coverage, and Physical Damage Coverages also apply in Mexico within 50 miles of the United States of America border. A Physical Damage Coverage loss in Mexico is determined on the ba- sis of cost at the nearest United States of America point. . . Death, Dismemberment and Loss of Sight Coverage applies any- where in the world. b. The following is added to 4. Changes to This Policy: d. Change of Policy Address We may change the named in- sured's policy address as shown on the Declarations Page and in our records to the most recent address provided to us by: (1) you; or (2) the United States Postal Service. c. 7. Nonrenewal is changed to read: 7. Nonrenewal If we decide not to renew this policy: a. because a named insured's driver's license or motor vehicle registration has been under suspension or revocation during the policy period, then at least 15 days before the end of the current policy period; or b. for any other reason, then at least 60 days before the end of the current policy period we will mail or deliver a nonre- newal notice to the most recent, policy address that we have on record for the named insured who is shown on the Declara- tions Page. The mailing of the notice will be sufficient proof of notice. d.. The first sentence of b. How and When We Mav Cancel of 8. Cancel- lation is changed to read: We may cancel this policy by mailing or delivering a written notice to the most recent policy address that we have on record for the named insured who is shown on the Declarations Page. e. Item b. of 13. Legal Action Against Us is deleted. Page 2 of 2 6938A.1 C), Copyright, State Farm Mutual Automobile Insurance Company, 2008 a N I, #0 Slata Farm Mutual Automobile Inauranoe Company One State Farm Or Concordville PA 19339 AT2 5560 -6490 A 005076 STRICKER, MICHELE 119 CHERRY LN DILLSBUR6 PA 17019-1115 _ POLICY NUMBER 116 7104•A26-33A POLICY PERIOD JUL 26 2010 to JUL 26 2011 DATE DUE PLEASE PAY THIS AMOUNT THIS IS NOT A BILL. i i Exhibit C :agent DENISE DOMBACH Telc-pnore (717)761-6410 I I I See reverse side for important information. 49 7999 3716 Please keep this part for your record. i ? r1 I 1UT! FARM State Farm Insurance Companies A iwtut?wc? State Farm Insurance Companies P.O. Box 82 October 6, 2011 Concordville. PA 19331 Michele Stricker 119 Cherry Ln Dillsburg, PA 17019-1115 RE: Claim Number: 38-M173-246 Date of Loss: July 17, 2011 __._Our IggVXedt_.__Michele- Str.icker Dear Ms. Stricker: It is my understanding that Progressive has tendered their liability limits of $50,000. Please be advised that we are waiving our subrogation rights and providing consent to you to settle the liability claim, including execution of a general release. We will move forward with settlement`of your underinsured motorist claim once I receive the records from Hershey Medical Center. Please contact me if you have any questions or concerns. Sincerely, Michael Grove Claim Representative (610) 361-5772 State Farm Mutual Automobile Insurance Company CC: David Spahr Progressive Insurance Exhibit D HOME OFFICES: BLOOMINGTON. ILLINOIS 61710-0001 • ?; iTiTi !YY State Farm Insurance Companies IMiY¦?NCI o State Farm Insurance Companies P.O. Box 82 November 2, 2011 Concordvilis, PA 19331 Michele StriCker 119 Cherry Ln Dillsburg, PA 17019-1115 RE: Claim Number: 38-M173-246 Date of Loss: July 17, 2011 Our Insured: Michele Stricker Enclosed is our draft in the amount of $50,000 in full and final settlement of your Underinsured Motorist claim. This tenders your policy limits. Sincerely, Michael Grove Claim Representative (610) 361-5772 State Farm Mutual Automobile Insurance Company Enclosure(s): Draft kp Exhibit : E HOME OFFICES: BLOOMINGTON, ILLINOIS 81710-0001 DLo__ ll<?uglas La?sr Office 43 West South Street Carlisle, Pernnsyhranva 17013 Tel: (717) 243-1790 Fax: (717) 243-8955 doliginslaw@earthlbik.net January 17, 2012 Mr. Michael Grove, Claim Representative State Farm Mutual Automobile Insurance Company Post Office Box 82 Concordville, PA 19331 In re: Claim Number: 38-MI73-246 Policy number 004-9095-C02-38F Policy number 1167104-A26-38A-001 Date of Injury: July 17, 2011 Dear Mr. Grove: I have been retained by Michele Stricker to represent her interests with respect to injuries she sustained in a motor vehicle accident that occurred on July 17, 2011. Please direct any and all contact and correspondence with Ms. Stricker through this office. As you are aware, Michele was severely injured as a result of the negligence of Darwin Appleby. Progressive Insurance Company insured Mr. Appleby with a liability policy limit in the amount of 50,000.00 that has been paid. Pursuant to your letter of November 2, 2011 you tendered a draft payable to Michele in the amount of $50,000.00 and represented to her that "This tenders our policy limits." when, in fact, your policy limits were not $50,000.00 but rather $150,000.00. As you and I both know the injuries she has sustained are severe and justify the payment of your policy limits. At this time we are demanding payment of the balance of your policy limits in the amount of $100,000.00. Please advise as to your position at your earliest convenience. Exhibit F Sincerely, William P. Douglas, Esq. William P. Douglas, Esquire Board Certified Civil Trial Attorney • • . 1 State Farme Providing Insurance and Financial Services IYf YY/,YCI Home Office, Bloomington, Illinois 61710 C January 31, 2012 WILLIAM DOUGLAS ESQ 43 W SOUTH ST CARLISLE PA 17013 RE: Claim Number: 38-M173-246 Date of Loss: July 17, 2011 Our Insured/Your Client: Michele Stricker Dear Mr. Douglas: State Farts Pennsylvania Auto Injury Claims PO 5)x 106115 Atlanta GA 30348.6115 This letter is in follow-up to our telephone conversation of January 27, 2012. As discussed, it is our position that our insured is entitled to receive a total of $100,000 in UIM Coverage. You confirmed that you have a specimen copy of our insured's policy which was in effect at the time of this loss. Enclosed please find a copy of page 27 which details the provision titled "If Other Underinsured Motor Vehicle Coverage Applies - Coverage W3." The policy confirms that the maximum amount that our insured is entitled to recover is the single highest applicable limit pravided,by,any one of the policies. Toe highest applicable limit provided is $100,000. Since we Piave already issued payment in the amount of $50,000, our insured is entitled to receive an additional $50,000 for a total of $100,000 in UIM Coverage. I have enclosed a draft for the additional $50,000. If you disagree with our assessment of the amount of UIM Coverage available, please provide statutory or case law support for your position. Thank you for your assistance. Sincerely, Michael Grove Claim Representative 610 361 5772 State Farm Mutual Automobile Insurance,Company - 41 19/267/581862 r Enclosure Exhibit G page 1 t 0'-* ? r applicable underinsured motor vehicle coverage on a primary basis. b. on an excess basis, we are liable only for our share. Our share is that per- cent of the damages payable on an ex- cess basis, that the limit of liability of this coverage bears to the total of all applicable underinsured motor. vehicle coverage provided on an excess basis. If Other Underinsured Motor•Vehiele: Cov- erage Applies - Coverage W3 1. If Underinsured Motor Vehicle Coverage provided, by this policy and one or more other vehicle policies issued to you or any resident 'relative by one or, more of the State Farm Companies. apply .to the same bodily injury, then: a. the Underinsured Motor Vehicle,Cov- erage limits of such .policies will not be added together to determine the most that may be paid; and b. the maximum amount that may be paid from all such policies combined is the single highest applicable limit provided by any one of the policies. We may choose one or more policies from which to make payment. 2. The Underinsured Motor Vehicle Coverage provided by this policy. applies. as primary coverage for an insured who sustains bod- ily injury while occupying your car;' a If. (1) this is the only vehicle policy is- sued to you or any resident rela- tive by the State Farm Companies that provides Underinsured Motor Vehicle Coverage which applies to the accident as prunary.coverage; and (2) underinsured motor vehicle cover- age provided by one or more sources other than the State Farm Companies also applies as primary coverage for the same accident, then we will pay the proportion of dam- ages payable as primary that our applica- ble limit, bears . to the, sum of our applicable limit and the limits of all other underinsured motor.Vehicle.coverage that apply as primarycoverage. b. If: (1) more than one vehicle policy is- stied to-you or any resident rela- tive by the State Faris Companies provides- Underinsured Motor Ve- hicle Coverage -which applies to the accident.as primary coverage; and (2) underinsured motor vehicle cover- age provided by one or more sources other than the State Farm Companies also applies as primary coverage for the same accident, then the State Farm Companies will pay the proportion of damages payable as primary that the maximum amount that may be paid by the State Farm Companies;as determined in 1. above bears to the sum of such amount and the limits of all other underinsured motor vehicle coverage, that apply as primary coverage, Except as provided in 2.'above, the Under- insured Motor Vehicle Coverage provided by this policy applies as excess coverage. a. If: (I) this is the only vehicle policy is- sued to you or any resident.reld- tive by the State Farm Companies that provides, Underinsured Motor Vehicle Coverage which applies to the accident' as' excess coverage; and 3. (2)'underinsured motor vehicle cover- age' provided, by one, or more sources other than the State Farm 'Companies also applies as excess coverage for the same accident, 27 9838A Exhibit G page 2 • 16 GARY A. DRAKAS, ESQUIRE Attorney ID No. 73440 FORRY ULLMAN One Bethlehem Plaza Broad and New Streets Suite 400 Bethlehem, PA 18018 610.332.3400 / FAX 610.332.3401 Attorneys for Defendant State Farm MICHELE STRICKER, IN THE COURT OF COMMON PLEAS Plaintiff OF CUMBERLAND COUNTY, PA VS. CIVIL ACTION - LAW STATE FARM MUTUAL AUTOMOBILE 2012-1080 INSURANCE COMPANY, Defendant Jury Trial Demanded CERTIFICATION OF SERVICE I, GARY A. DRAKAS, ESQUIRE, the undersigned, hereby certify that on May 7, 2012, a true and correct copy of State Farm Mutual Automobile Insurance Company's Praecipe to File Notice of Removal with the Cumberland County Prothonotary, was served upon the Plaintiff, by mailing the same to Plaintiff's counsel of record by United States first class mail, postage prepaid, addressed as follows: William P. Douglas, Esquire Attorney for Plaintiff Douglas Law Office 43 West South Street Carlisle, PA 17013 I understand that the statements herein are made subject to the penalties of 18 Pa. C.S.A. §4904 relating to unsworn falsification to authorities. FORRY ULLMAN Zor Dated: 05/07/12 By: Gltfkf S, ESQUIRE Attorney for Defendant