index by subject - facility association · 2008-06-12 · radius 203 5 rating territory 202 4...

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Section D - CommercialFACILITYASSOCIATION

RULE 200: COVERAGES AVAILABLE AND MINIMUMDEDUCTIBLES . . . . . . . . . . . . . . . . . . . . . . . . . .2

RULE 201: DEFINITIONS . . . . . . . . . . . . . . . . . . . . . . . . . . .2A.COMMERCIAL VEHICLE . . . . . . . . . . . . . . . . . . . .2B. VEHICLE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2C. TRAILER . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2D. OWNED/LEASED . . . . . . . . . . . . . . . . . . . . . . . . . .3E. RATING INFORMATION . . . . . . . . . . . . . . . . . . . .3F. TYPES OF COMMERCIAL VEHICLES . . . . . . . . .3G. GROSS VEHICLE WEIGHT (“GVW”) . . . . . . . . .4H. MACHINERY OR APPARATUS . . . . . . . . . . . . . . .4

RULE 202: RATING TERRITORY . . . . . . . . . . . . . . . . . . . . .4

RULE 203: RATING CLASS . . . . . . . . . . . . . . . . . . . . . . . . .5A. MULTIPLE USES . . . . . . . . . . . . . . . . . . . . . . . . . . .5B. LOAD CLASSIFICATION . . . . . . . . . . . . . . . . . . . .5C. RADIUS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5D. EXCLUSIVE CONTRACT . . . . . . . . . . . . . . . . . . .5E. ROAD TRACTOR WITHOUT TRAILER . . . . . . . .5F. VEHICLES IN TRANSIT . . . . . . . . . . . . . . . . . . . . .5G. ELECTRICALLY-POWERED VEHICLES . . . . . . .5H. COMMERCIAL VEHICLES AND UNDERAGE . .5

OPERATORS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5I. FARM TRUCKS . . . . . . . . . . . . . . . . . . . . . . . . . . . .5J. ARTISAN CLASS 35 . . . . . . . . . . . . . . . . . . . . . . . .5K. RATING CLASS TABLE . . . . . . . . . . . . . . . . . . . . .6

RULE 204: DRIVING RECORD . . . . . . . . . . . . . . . . . . . . . .12A. CLEAR RECORD . . . . . . . . . . . . . . . . . . . . . . . . . .12B. DRIVING RECORD ENTITLEMENT . . . . . . . . .12C. SEASONAL USE . . . . . . . . . . . . . . . . . . . . . . . . . .13D. INCORRECT CLASS OF LICENCE . . . . . . . . . . .13

RULE 205: RATE GROUP . . . . . . . . . . . . . . . . . . . . . . . . .13A. RATE GROUP TABLE I . . . . . . . . . . . . . . . . . . . .13B. RATE GROUP TABLE II . . . . . . . . . . . . . . . . . . . .13C. LIST PRICE NEW . . . . . . . . . . . . . . . . . . . . . . . . .13

RULE 206: TRAILERS . . . . . . . . . . . . . . . . . . . . . . . . . . . .14A.TYPES AND USES OF TRAILERS . . . . . . . . . . . .14

Non-Cargo Trailer . . . . . . . . . . . . . . . . . . . . . . . . . .14Cargo Trailer . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .14Common Trailer . . . . . . . . . . . . . . . . . . . . . . . . . . .14Semi-trailer . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .14Pup Trailer . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .14Low-bed Float Trailer . . . . . . . . . . . . . . . . . . . . . . .14Gooseneck Trailer . . . . . . . . . . . . . . . . . . . . . . . . . .14Trailer Converter Dolly . . . . . . . . . . . . . . . . . . . . . .14Tractor-trailer-train or Tandem Rig . . . . . . . . . . . . . . . . . .14

B. RATING OF TRAILERS . . . . . . . . . . . . . . . . . . . .141. Owned Trailer . . . . . . . . . . . . . . . . . . . . . . . . . . .142. Non Owned Trailers . . . . . . . . . . . . . . . . . . . . . .153. Policy Covers Trailers Only . . . . . . . . . . . . . . . .154. Livestock Trailers . . . . . . . . . . . . . . . . . . . . . . . .15

RULE 207: ENDORSEMENTS . . . . . . . . . . . . . . . . . . . . . .16END 13C - DELETION OF GLASS . . . . . . . . . . . . . .16END 20 - LOSS OF USE . . . . . . . . . . . . . . . . . . . . . . . .16END 27B - LEGAL LIABILITY FOR DAMAGE TONON-OWNED AUTOMOBILES . . . . . . . . . . . . . . . .16END 30 - MACHINERY OR EQUIPMENT . . . . . . . . . . .16END 31 - NON-OWNED EQUIPMENT . . . . . . . . . . . . . .16END 37, END 38 - ELECTRONIC EQUIPMENT . . .16

RULE 208: PREMIUM DETERMINATION . . . . . . . . . . . . . .17A. CALCULATING PREMIUM NO U.S. EXPOSURE: . .17B. CALCULATING PREMIUM WITH U.S.

EXPOSURE, . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .17

Prince Edward Island - March 2006

Subject Rule Page

Clear Record 204 12Coverages 200 2Definitions 201 2

Commercial Vehicle 201 2Types of Vehicles 201 3Gross Vehicle Weight 201 4Trailer 201 2Types of Trailers 206 14

Driving Record 204 12Endorsements 207 16List Price New 205 13Minimum Deductibles 200 2

Subject Rule Page

Premium Determination 208 17Rate Group 205 13Rating Class 203 5

Light vs Heavy 203 5Multiple Use 203 5Radius 203 5

Rating Territory 202 4Trailers 206 14

Types 206 14Rating 206 14

U. S. Exposure 208 17

TABLE OF CONTENTS

INDEX BY SUBJECT

Rule: 200: Coverages Available andMinimum Deductibles

A. Liability

Not more than $1,000,000 except

a) when required by Canadian or American federal or provincialstatute, by regulation issued under authority thereof, or bymunicipal by-laws (but not by other local authorities such asschool boards except as provided for in b). The Liability limitmay not exceed the amount required.

b) where the insured is required by his/her employer to have$2,000,000 limits in order to obtain a contract of work (e.g.Driver Training vehicle) and, where failure to do so, will result inloss of the contract. The insured may, at the Servicing Carrier’sdiscretion, be required to provide proof of the contractrequirement for $2,000,000 limits.

c) that a maximum of $5,000,000 will be provided for “Trucks”meaning vehicles rated as Truckmen. If a limit higher than$1,000,000 is requested on a vehicle normally eligible for acommercial class other than Truckmen, and it does not qualifyunder a) or b) above, such limit may be granted only if the vehicleis rated under Truckmen or the eligible class, whichever developsthe greater premium.

The amounts shown on any proof of insurance may not exceed thoserequired by the authority concerned. For example: The Liability limitchosen by the Applicant is $1,000,000. Proof of insurance is requiredfor $500,000. The policy will be issued at $1,000,000 but the proof ofinsurance shall only show $500,000.

The policy states that an automobile and trailer are held to be onevehicle; a trailer and any towing vehicle must be insured for the sameLiability limit.

B. Accident Benefits – as prescribed by statute.

C. Physical Damage

Physical damage shall not be provided or continued forCommercial/Interurban Vehicles valued at $500,000 or more.

Physical damage shall not be provided for Off-Road CommercialVehicles e.g. logging trucks used solely in the bush.

Under this coverage, a motor vehicle and one or more trailers areseparate automobiles, consequently, different deductibles for trailersand towing vehicles are permitted.

Deductibles

The following table indicates the minimum deductibles.

For risks with claims, refer to Rule 1:C.

*Example: if the list price new is $123,000, 5% is $6,150. Thedeductible shall be $6,250 and the rating factor for $2500 or moreapplies.

D. Uninsured Automobile

As provided in the policy.The premium for this coverage is shown on the rate page. Whereno premium is shown, charge $6.

E. Family Protection Coverage (END 44)

For brief description see the Endorsement Section. The premium isdependent on the END 44 limit. The END 44 limit is the sameamount as the Liability limit subject to a maximum of $1,000,000.

Rule 201: Definitions

A. Commercial VehicleA motor vehicle used primarily to transport materials, goods, toolsor equipment in connection with the applicant’s occupation, andincludes a police department truck, a fire department truck, drivertraining truck, a vehicle designed specifically for construction ormaintenance purposes, a vehicle designed to perform a function bymeans of motive power which is both separate from and additionalto the function of transportation and travel, or a trailer intended foruse with a commercial vehicle.

Commercial vehicle does not include vehicles:

a) Used primarily for the transportation of persons, in which casesee the Private Passenger or Public section.

b) Held for sale, demonstration and/or testing, in which case see the Garage section.

B. Vehicle

For the purposes of this section of the manual, the unqualified word“vehicle” shall include “trailer” unless otherwise indicated.

C. TrailerA unit not equipped with its own motive power designed to betowed by a motor vehicle and intended to be used with acommercial vehicle.

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Section D - Commercial FACILITYASSOCIATION

Prince Edward Island - 1 March 2008

Rate Group Minimum Deductibles

All Perils/CollisionComprehensive/Specified Perils

15 and under $500

16-18 $1,000

19-21 $2,500

22 and over 5% of LPN rounded to the nearest $250(minimum deductible $2,500).

All RG’sEND 40 is mandatory for any vehicleswith a prior fire or total theft losswithin the last 60 months.

D. Owned/Leased

The expression “owned by” (as in a vehicle owned by the applicant)includes “leased to” if the applicant is/was responsible for obtainingthe Liability insurance for the leased vehicle/item concerned. Asimilar interpretation applies to “owns, ownership”, etc.

E. Rating Information

The information in the application and the Commercial VehicleSupplement is used to determine classification and rating territory.

When a commercial vehicle is operated within a certain radius fromdifferent bases where required by different contracts, the territoryshall be that of the highest rated location and the radius shall be theroad distance of operation from that base.

F. Types of Commercial Vehicles

Standard Production The following truck types are generally light and, if standardproduction models, are rated from Rate Group Table I.

Pickup - A truck with a open box behind the vehicle cab (identifiedby Body Code 0 in Rate Group Table I). The cab may be extended toaccommodate additional seating behind the regular driving seat – maybe referred to as crew, extended, or super cabs.

Utility - A ”jeep” like truck which may be completely open, have a cabsimilar to a pickup or have a canvas or full top (identified by Body CodeM in Rate Group Table 1).

Van - A truck with a box like design (identified by Body Code 1 in RateGroup Table 1). Formerly known as panel trucks. Vans have thedriver’s compartment and the cargo area within the body.

Wagon - A truck built from a van or pickup chassis with seating forpassengers (identified by Body Code W in Rate Group Table 1).

Non Standard ProductionOther truck types that are built from a chassis (the basic frame of avehicle, including the engine, wheels, and other mechanical parts butnot the body) or chassis and cab (a chassis equipped with a driver’scompartment ) by the addition of a body to carry goods or forspecialized uses. Because these vehicles vary greatly even within aparticular body style, Rate Group Table II must be used to establish arate group.

The ‘body’ may be flat platform (platform or flat deck) or with racks(stake). Stake trucks often have canvas tops. With the addition of afully enclosed box the vehicle is known as a van. Some have thecargo area open to the driver’s compartment (Step Van); others haverear or side doors for access to the cargo.

Road Tractor - is a motor vehicle with a fifth wheel coupling devicefor attaching semi-trailers. A fifth wheel is a coupling device mountedon a road tractor and used to connect a semi trailer. It acts as a hingepoint to assist longer vehicles in turning corners.

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In addition, a Commercial vehicle:

a) may be of the private passenger or station wagon body type, inother words, a vehicle built on a private passenger chassis. UseRate Group Table II.

b) is a Snow Vehicle with a GVW in excess of 1 tonne (2,200 lbs.),or a snow groomer regardless of weight. Use Rate Group Table II.

c) may be another specialized vehicle such as road machinery (forexample, graders). Use Rate Group Table II.

d) is a Motorcycle designed and used for commercial purposes. UseRate Group Table II.

G. Gross Vehicle Weight (“GVW”)

The Gross Vehicle Weight is the curb weight of the vehicle plus themaximum load capacity. Generally the vehicle permit (licence) willshow the Gross Vehicle Weight. The gross vehicle weight is shown inmanufacturer’s specification and all truck data books. The GVW is notto be confused with load capacity such as a 3 ton van or 1/2 ton pickup– the GVW for 1/2 ton pickup will range from 3000 to about 6600pounds (1.4 to 3.5 metric tonnes).

H. Machinery or Apparatus

Commercial vehicles are often equipped with machinery or apparatus.There are two types:

1. The equipment is designed to perform a function by means ofmotive power. This function is both additional to and separatefrom the functions of transportation and travel (e.g., welding,spraying, excavating, well drilling, cooking equipment). Insurancemust be made subject to END 30 (Excluding Attached Machinery)which excludes coverage under Liability and Accident Benefitswhile at the site of the work (operation of the machinery orapparatus). See Endorsements in this section.

2. Some equipment is permanently attached to and used for theloading/unloading operations of the vehicle (e.g., fuel oildelivery pumping equipment, or, small hoisting equipmentnormally found on brick trucks) or the equipment requires thevehicle to be in motion on a public road in order for it to do thework (e.g. snow plows, street sweepers). END 30 is not used inthese situations.

Some equipment owned by others may be attached to the vehicle. e.g.the applicant owns the truck but uses a tank body and pumpingequipment owned by another. The coverage may be extended byattaching END 31 (Non-owned Equipment). The physical damagecoverage may only be the same as that provided on the vehicle.

END 30 and 31 cannot be attached to the vehicle at the same time. Incircumstances where coverage for attached machinery is excluded byendorsement from the commercial vehicle, coverage may be purchasedon a commercial property/general liability policy.

Rule 202: Rating Territory

Commercial vehicles registered and used in Prince Edward Island arerated using Prince Edward Island premiums.

If a filing is required for another jurisdiction, the Outside Prince EdwardIsland exposure surcharge must be used regardless of the percentage oftotal mileage driven in that other jurisdiction.

The applicable rating territory is that in which the vehicle “is and willbe chiefly used”. If however, the vehicle is operated regularly i.e. morethan 12 trips per year to or through other territories, the highest rated ofthose territories is to be used. A vehicle that travels through a higherrated territory from a lower rated territory where it is garaged, toanother lower rated territory where the work is performed, shall becharged at the higher rated territory. This applies to all classes in theCommercial section including Truckmen. Outside Prince EdwardIsland exposure surcharge and currency differential surcharge are to beapplied where required.

Prince Edward Island rates apply if the vehicle is operated outsidePrince Edward Island but within Nova Scotia, New Brunswick,Newfoundland or Labrador.

Prince Edward Island rates and a surcharge apply if the vehicle isoperated outside Prince Edward Island, Nova Scotia, NewBrunswick, Newfoundland and Labrador. Refer to Rule 28A.


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Section D - CommercialFACILITY ASSOCIATION

Rule 203: Rating Class

A. Multiple Uses

If a vehicle is used for more than one purpose, rate for the use withthe highest percentage of exposure. See Rule 4: Method of Rating formore than one use.

B. Load Classification

Vehicles with a Gross VehicleWeight not in excess of 4.5 tonnes(10,000 pounds) Light (L)Vehicles with a Gross VehicleWeight of more than 4.5 tonnes(10,000 lbs.) Heavy (H)Road Tractors used to haul trailers Heavy (H)

C. Radius

Radius means the road distance from the boundary of the city or townin which the vehicle is usually kept. Operation within a city or townor within 40 km (25 miles) of the boundaries of a city or town shallbe regarded as within a 40 km (25 mile) radius. A radius of 80 km(50 miles) means that the vehicle is being operated within 80 km (50miles) of the boundaries of the city or town in which it is kept.

Notes:1. A vehicle used for more than 12 trips per year (6 trips on a six

month policy) beyond a radius of 80 km (50 miles) is to be ratedas Class 61 (81-160 km 51-100 miles) or Class 51 (beyond 160km 100 miles) Class 61B or 51B (Hazardous Cargo) rates are tobe used if the vehicle is transporting Dangerous Goods. Thisrule only applies to vehicles hauling cargo for compensation.

For example: A vehicle hauling dangerous goods is used 13 times ayear to haul those goods 100 km. Class 61B rates are applicable.

2. For policies issued for less than 6 months, Note 1 shall apply ifthe percentage of mileage used beyond 80 km (50 miles) for thepolicy period, exceeds 5%.

Note 2 does not apply if the vehicle is in transit and is not beingused to transport goods or for the specialized purpose for whichit was designed.

D. Exclusive Contract

A truckman’s vehicles that are operated under contract exclusivelyfor one party, other than for mail or milk transportation may beclassified as if owned and operated by that party if the vehicles areused within a radius of 40 km (25 miles). If used beyond a 40 kmradius, rate as Truckmen.

For example:Acme Trucking has some trucks which are used solelyfor the delivery of Superior Drug Wholesaler’s products to theircustomer drug stores within a 40 km radius. Superior DrugWholesaler’s do not have their own trucks. Rate the Acme trucksthat are used solely for this purpose as Drug Manufacturer &Wholesalers.

E. Road Tractor Without Trailer

When a road tractor is insured it is presumed that it will be used withone or more trailers. Accordingly, the semi-trailer Liability premium(see Rule 206B: Rating of Trailers) must be charged even if nospecific trailer is described.

F. Vehicles in Transit

A vehicle that is in transit through the jurisdiction and not used totransport goods or for the special purpose for which it wasmanufactured is treated as a vehicle “not specifically classified”.For example: The insured lives in Prince Edward Island andpurchases a road tractor in Ontario which is now driven back toPrince Edward Island to be registered in that jurisdiction. Thevehicle is in transit and not being used for the purpose for which itwas designed. It shall be rated Class 44 (heavy vehicle not specif-ically classified).

G. Electrically Powered Vehicles

Discount no longer available.

H. Commercial Vehicles and Underage Operators

A light commercial vehicle principally operated by a driver under 25is to be rated as a private passenger vehicle if the private passengerpremium shall be higher than if the vehicle was rated as acommercial vehicle. This provision shall not apply if the ServicingCarrier has evidence of insurance for a private passenger vehicle thathas the same principal operator as the commercial vehicle.

I. Farm Trucks

The vehicle of a farmer who has no other gainful occupation andis residing on the farm may be rated as a farm truck. Vehiclesowned by farm managers, farm labourers, transient harvesters andpart-time workers may not be rated as farm trucks.

Class 33 is permissible only when the applicant owns both acommercial and private passenger vehicle and is a listed driverrated on both. If the private passenger vehicle is not insured withthe Servicing Carrier, the Agent/Broker must confirm in writing tothe Servicing Carrier at each renewal that the applicant owns andinsures a private passenger vehicle; otherwise, the commercialvehicle (or the one with the highest rate group, if there are two ormore) is to be rated as if it were a private passenger vehicle.Classes 33 and 34 are not permissible if there is any use forretail/wholesale delivery or any use not considered part of thedaily operation of a farm.

J. Artisan Class 35

This class is permissible for a commercial purpose vehicle (Referto Rule 201:A.) that is largely immobile i.e. parked during thebusiness hours of the applicant, at or near the place ofemployment. A vehicle used to go to more than two jobs in a dayis not to be rated Class 35. Wholesale or retail delivery is notpermitted. The applicant also must have a private passengervehicle insured for mandatory coverage.

Prince Edward Island - 1 August 2008

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Section D - Commercial FACILITY ASSOCIATION

Rule 203: Rating Class (continued)

K. Rating Class Table

Class CodeVehicle Type / Use Light Heavy

All Commercial vehicles not specifically classified herein:Retail delivery of goods sold or serviced by the applicant 43 45Excluding retail delivery (wholesale and no delivery) 36 44

All-Terrain Vehicles:GVW not more than 1 tonne (2,200 lbs.) – see Recreational Section.GVW more than 1 tonne (2,200 lbs.) – rate according to use.

Ambulances – see Public Section.Armored Cars 46 46Artisan 35 n/a

This class is permissible only for those vehicles that are largely immobile i.e. parked,during the business hours of the applicant, at or near the place of employment.A vehicle used to go to more than two jobs in aday is not to be rated as Class 35.Wholesale or retail delivery is not permitted.

Automobile Hauling – see TruckmenFacility Association does not provide legal liability cover for cargo.

Auto Accessories and Parts:Retail delivery 43 45Wholesale delivery 36 44

Bakeries and Distributors 44 45Brewers and Distributors 45 45Building materials – including bricks and blocks (excluding dump trucks) 46 46Buses – see Public SectionButchers: Wholesale Butchers – see Meat Packers

Retail delivery 43 45

Caterers 43 45Canteen Vendors, including Chip Wagons (Use END 30) 43 45

If equipped with deep fat fryer, multiply premium by factor shown on Special Rating factor page.Cement Blocks – see Building MaterialsCement Mixers (Mix-in-transit) 45 45Chemical Products – see Dangerous GoodsChip Hauling (Wood) – see LogsCleaners & Dyers 44 45

Coal & Wood Dealers 44 44

ContractorsExcluding cement mixers, dump trucks and transportation of bricks or other 35 44building materials, logs, pulpwood and petroleum productsClass 35 is permissible only for those vehicles that are largely immobile i.e. parked,during the business hours of the applicant, at or near the place of employment.A vehicle used to go to more than two jobs in a day isnot be rated as Class 35. Wholesale or retail delivery is not permitted.

Courier Service Maximum Radius 80 km (50 miles) 44 46Pickup and delivery of documents and small parcels/package where an element ofspeed or timeliness is involved, excluding wholesale and retail delivery.In excess of 80 km rate as Truckmen.

Cranes (licensed, mobile) (Use END 30) 44 44


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Vehicle Type / Use Class CodeLight Heavy

Logs, Wood Chips, Pulpwood: Maximum radius 80 km (50 miles) 47 47Multiply the Class 47 premium by the factor on the Special Rating factor page.

Radius beyond 80 km (50 miles):Use Class 61 (81-160 km 51-100 miles) or Class 51 (beyond 160 km 100 miles) if the PremiumTable II total premium is higher than the Class 47 total premium; otherwise Class 47 rates apply.

Lumber Dealers 46 46

Mail Trucks 44 46Market Gardeners – see GardenersMeals – Home Delivery of Fast Foods (Pizza, Chinese Food and the like) 43 45Meat Packers and Dealers 47 47Messenger Service – see Courier ServiceMotorcycles designed for and used as a Commercial Vehicle 57 n/a

Liability: apply the applicable Commercial Vehicle premium less 50%All other coverages: apply applicable Commercial Vehicle premium in full

Moving Vans – see TruckmenMunicipal Corporation – see Public Service Vehicles

Newspaper Delivery (daily newspapers)From or in cities of over 15,000 in population 47 47Smaller cities and towns – see Delivery

Nurserymen – see Gardeners

Oil Drilling, Exploration and Seismograph (use END 30) 54 54Multiply premium that would otherwise apply by the factor on the Special Rating factor page.

Oil Tank Trucks – see Dangerous GoodsOn-premises Trucks (unlicensed) 55 55

Trucks used solely on applicant’s premises, not designed for road use and which donot fall into any other category.

Multiply premium that would otherwise apply by the factor on the Special Rating factor page.

Parcel Delivery – see Courier ServicePetroleum Products - see Dangerous GoodsPilot Vehicles travelling in front or behind a vehicle with oversize cargo - rate as ‘not specifically classified’Photo or Film Delivery:

Retail delivery 43 45Wholesale delivery 36 44

Police Department Trucks 53 53See Private Passenger Section if private passenger or station wagon type, orRecreational Section if Motorcycle type.Multiply premium that would otherwise apply by the factor on the Special Rating factor page.

Poultry Dealers:Retail delivery 43 45Wholesale delivery 46 46

Produce Dealers:Retail delivery 43 45Wholesale delivery 46 46

Public Service Vehicles (e.g. hydro or telephone) 43 44not Ambulance, Fire, Police or ‘Road Construction & Maintenance’

Pulpwood – see Logs


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Radioactive Materials – see Dangerous GoodsRadio or TV Sales and Service - see Television and Radio Sales & ServiceRadio Escort vehicles used on airport grounds 53 53

Use Fire Department emergency or non emergency rates.Road Construction and Maintenance (excluding Dump Trucks): 54 54

Graders, Snow Blowers & Plows, Snow Groomers, Street Sweepers, Tar Spreaders and likeequipment especially designed and used for road construction or maintenance.

Safe Dealers & Manufacturers 36 44Sand, Gravel, Stone Earth 47 47

Multiply premium that would otherwise apply by the factor on the Special Rating factor page.Radius beyond 80 km (50 miles):Use Class 61 (beyond 80 km) or Class 51 (beyond 160 km) if the Premium Table II totalpremium is higher than the Class 47 total premium, otherwise Class 47 rates apply.

Scrap (metal, paper, rags) Recycling see Garbage 47 47Sewer and Septic Tank Cleaning 43 44Slip Tanks-carrying dangerous goods, irrespective of tank capacity 48 48

(principal use is carrying petroleum products)Snow Blowers/Plows designed for that use – see Road ConstructionSnow Plows, removable blade 36 44Snow Groomers – see Road ConstructionSnow Vehicles:

GVW not more than 1 tonne (2,200 lbs.) – see Recreational SectionGVW more than 1 tonne (2,200 lbs.) – rate according to use

Soft Drink Manufacturers, Bottlers and Distributors 44 45Special Delivery (not Courier or similar services):

Including retail delivery 43 45Excluding retail delivery 36 44

Station Trucks – see On-premises TrucksSteam Trucks (use END 30) 44 44Steel Manufacturers & Distributors 46 46Stone – see Sand

Television and Radio Sales & Service:Including retail delivery and service 43 45Excluding retail delivery and service 36 44

Tow Trucks – see Tow Trucks in Garage SectionTractors, other than road haulage tractors:

Bush work, logging, lumbering 54 54Multiply premium that would otherwise apply by the factor on the Special Rating factor page.Farm 55 55Multiply premium that would otherwise apply by the factor on the Special Rating factor page.Road construction 54 54

Truckmen hauling or transport for others for compensation, where the use is not specifically classified:Maximum radius 40 km (25 miles) 46 46Maximum radius 80 km (50 miles) 47 47Premium Table II –Interurban Vehicles:Maximum radius 160 km (100miles) 61 61Radius over 160 km (100 miles) 51 51For Premium Table II vehicles only, if operating any distance outside Canada, code Class 99and rate as Class 51.


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Valet Service (if automobile parking see Garage Section). 44 45Van Pools – see Public sectionVegetable Dealers:

Retail delivery 43 45Wholesale delivery 46 46

Welders 36 44Well Drilling (use END 30) 36 44Wood Chip Hauling – see LogsWrecking Contractors 47 47


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Rule 204: Driving Record

Driving record is the number of years of verified “Clear Record”.This rule does not apply to coverages that are fleet rated.

All vehicles shall initially be rated at Driving Record 0 unless theapplication is accompanied by (or the Servicing Carrier already has)proof of the accident free period and the ownership period requiredfor a better driving record.

If the applicant claims entitlement to a driving record better than thatpermitted by the preceding paragraph and submits details of theprevious insurance(s), the Servicing Carrier shall attempt to obtainconfirmation of the previous experience. The claimed better drivingrecord shall not be granted unless and until the entitlement isverified, but the re-rating shall then be backdated appropriately.

A. Clear Record

Throughout the period concerned:

1. There has been no accident involving the described vehicleor one for which it has been substituted;

and

2. The applicant has owned the described vehicle or one of asimilar type for which it has been substituted.

Ownership is established from the date on which the applicanttakes possession of the vehicle.

There is no requirement that drivers be accident free on othervehicles – the rating is determined from the vehicle history notthe driver’s history.

B. Driving Record Entitlement

Period of Clear Record immediately preceding the commencement date Driving Record Entitlement of the period of Insurance

Less than 1 year 0

At least 1 year 1

At least 2 years 2

At least 3 years 3

Notes1. The driving record established applies to all coverages

concerned. A chargeable accident will affect the rating ofboth Liability and Collision coverages.

2. Where an applicant owns more than one vehicle, eachvehicle’s driving record is established separately. Where anadditional vehicle is acquired it shall develop its owndriving record (initially at Driving Record 0). Where avehicle is deleted, an accident charged for on the deletedvehicle shall be transferred to a remaining vehicle with thebest rated driving record.

For example: There are three vehicles on the policy all ratedClass 36. Vehicle 1 is rated Driving Record 0 (due to anaccident), vehicle 2 is rated Driving Record 1 and vehicle 3 israted Driving Record 3. Vehicle 1 is deleted from the policy. Theaccident will be transferred to vehicle 3 and the rating will beamended to Driving Record 0.

3 Where a vehicle replaces another it acquires the drivingrecord of the replaced vehicle.

4. Gaps in insurance coverage within the 3 years immediatelypreceding the effective date of the insurance shall have thefollowing effect on the assignment of the driving record:

– If the total gap in insurance coverage is less than 1 year inthe past 3 years, the driving record will not be impacted.

– If the total gap in insurance coverage is 1 year or more inthe past 3 years, the driving record will be reduced by 1 foreach year’s gap in coverage.

For example: The applicant has proof of accident free insurancefrom June 1, 1999 to February 15, 2003. Effective date of FApolicy is July 1, 2003. Since the gap is less than 1 year (February15, 2003 to July 1, 2003), there is no impact on the drivingrecord. Risk qualifies for Driving Record 3.

The applicant has proof of accident free insurance from June 1, 1999to May 20, 2002. Effective date of FA policy is July 1, 2003. Sincethe gap is more than 1 year but less than 2 years (May 20, 2002 toJuly 1, 2003), the driving record is reduced by 1 year. Risk qualifiesfor Driving Record 2.

5. A loss history report or letter from the prior carrier isrequired to confirm claims-free experience for all drivingrecords on individually-rated vehicles. Where a loss historyreport or letter from the previous insurer verifying claims-free experience in Canada or the U.S. is not available, theinsured shall be eligible for a maximum of Driving Record0.


D15


B. Rating of Trailers (continued)

Here are Rating Examples:

Road Semi-Trailer Pup Trailer

TractorTractor-Trailer-Train each trailer 25%

Accident Benefits, Uninsured AutomobileNo charge, unless the trailer is used for purposes likeliving/dwelling, show room, office, demonstration or changingrooms. In these cases, apply the Non-Pleasure Use rate in theRecreational Vehicles Section of this manual.

Physical DamageEach trailer is rated as if it were a separate vehicle. Rate GroupTable II is used to determine the rate group.Trailers develop their own Collision driving record, independentlyof the vehicles with which they may be used. (For reporting underthe Automobile Statistical Plan, the trailer is identified by the useof Driving Record Code “7”).

Apply U.S. Exposure Surcharge if required.

2. Non Owned TrailersLiabilityCharge the premium applicable to an owned trailer.

Accident Benefits, Uninsured AutomobileNo charge unless the trailer is used for purposes likeliving/dwelling, show room, office, demonstration or changingrooms. In these cases apply the Non-Pleasure Use rate in theRecreational Vehicles section of this manual.

Physical DamageCharge the premium applicable for these coverages as thoughtrailer was owned. The rate group is based on the limit stated inEND 27B.

3. Policy Covers Trailers OnlyLiabilityIf it is not known how the trailer is being used, charge 25% of Class51 Driving Record 0. If the purpose for which the trailer is beingused is known (e.g. local haulage) charge 10% of the appropriateclass (e.g. Class 47) at Driving Record 0.

Accident Benefits, Uninsured AutomobileNo charge unless the trailer is used for purposes likeliving/dwelling, show room, office, demonstration or changingrooms. In these cases apply the Non-Pleasure Use rate in theRecreational Vehicles section.

Physical DamageEstablish the rate group and rate accordingly. If the trailer is being used with a tractor insured under another FApolicy with the same Servicing Carrier, the non-owned charge onthat other FA policy can be eliminated, whether or not the sameinsured owns both the tractor and trailer.

4. Livestock TrailersWhere the trailer is used for transporting livestock (includinghorses) as part of the insured’s business, the trailer is to be rated asa commercial cargo trailer, either ‘semi’ or ‘cargo other’ dependingon the type of trailer. Where the trailer is used for transportinglivestock for pleasure purposes, the trailer is to be rated as a utilitytrailer in the Recreational Vehicles Section.


D16


Rule 207: Endorsements

END 13C – Deletion of Glass CoverageThe coverage provided under Comprehensive for damage to glassmay be amended by attaching 13C. This endorsement is onlyapplicable to vehicles listed in Rate Group Table I and PrivatePassenger type vehicles.

The premium charged for the reduced Comprehensive coverage isthe Specified Perils premium plus 10% of the Comprehensivepremium.

Where the deductible is $1000 or higher, there is no premiumreduction.

END 20 – Loss of UseFacility Association does not provide this coverage for vehiclesthat are used or rated commercially.

Machinery or Equipment EndorsementsEND 30 Excluding Operation of Attached MachineryThe description of the machinery or apparatus shall read:“all or any machinery or apparatus designed to perform a functionadditional to and separate from the function of travel”Where the equipment is used on a public road and the vehicle issubject to compulsory automobile insurance, the END 30 mustexclude only non road use of the equipment by adding “while thevehicle is not being used upon a public highway”.

END 31 – Non-owned EquipmentUse of this endorsement is not permitted in respect of a vehicle towhich END 30 applies.

The physical damage coverages may only be the same as thoseprovided in respect of the vehicle. The required limit must bespecified. The rate group is based on Rate Group Table II using thelist price new of the vehicle and the non-owned equipment.

END 27B - Legal Liability for Damage to Non-OwnedAutomobilesThe applicant must specify the types of vehicle/trailer that may bein the applicant’s custody and provide the required limit peroccurrence.

The premiums to be charged are those applicable to the highestrated vehicle that may be in the applicant’s custody as though thevehicle was an owned vehicle. The rating is based upon the drivingrecord, the type and use of the vehicle/trailer. The limit peroccurrence is used to determine the rate group and the model yearis assumed to be the current model year.

After Market Sound and Electronic CommunicationEquipmentWhere the vehicle is equipped with sound or electronic communi-cation equipment, other than factory installed equipment,application of either the END 37 or END 38 is mandatory.

END 37 - Limitation to Automobile Sound and ElectronicCommunication EquipmentThis endorsement limits the amount of coverage on suchequipment to $1,500. Where a vehicle is covered for All Perils,Comprehensive or Specified Perils, this endorsement must beadded if the applicant does not wish to purchase additionalcoverage. The endorsement must be signed by the insured.

END 38 – Increased Limit, Automobile Sound andElectronic Communication EquipmentWhere a vehicle is covered for All Perils, Comprehensive orSpecified Perils, and the applicant wishes to purchase additionalcoverage for the equipment, this endorsement may be added.Additional coverage may be purchased at a rate of $30 per $1,000of value in excess of $1,500 or part thereof. Documentation(appraisal or receipts) is necessary to substantiate the value statedin the endorsement. The endorsement must be signed by theinsured.

For example: END 38 has a limit of $4,300. The premium forEND 38 shall be $90.


D17


Rule 208: Premium Determination

A. Calculating Premium with No Outside PrinceEdward Island Exposure:

Steps1. Ensure that the vehicle qualifies as a Commercial Vehicle;

–see Rule 201A: Definitions.

2. Establish the rating territory (see Rule 202).

3. Establish the rating class (see Rule 203).

4. For Liability and Collision coverages, establish the drivingrecord (see Rule 204).

5. For physical damage, establish the rate group and theminimum deductible (see Rule 200 and 205).

6. Establish what, if any, special rating factors apply.

7. Refer to the Schedule of Rates in this section and establishthe ‘manual” premium for each coverage.

8. Where a premium for a rate group or deductible is notshown on the rate page, first calculate the rate grouppremium by multiplying the base premium by the rate groupfactor, then multiply the rate group premium by thedeductible Factor. For trailers, also see Trailers in thissection.

9. Apply any special use factor

10 Apply fleet rating or accident/conviction surcharges ifrequired.

B. Calculating Premium with Outside Prince EdwardIsland Exposure

Towing VehiclesCalculate the ‘manual’ premium for the required coverages anddeductibles in accordance with Rule 208:A.

Liability – Calculate the Outside Prince Edward Island exposuresurcharge for Liability and add to that the currency differentialsurcharge (if applicable). Apply to the premium. Then apply anyfleet rating or accident/conviction surcharge to the resultingpremium.

Accident Benefits, Uninsured Automobile – Apply the OutsidePrince Edward Island exposure surcharge for Liability to thepremium.

All Perils/Collision – Calculate the Outside Prince Edward Islandexposure surcharge for physical damage and apply to the premium.Then apply any fleet rating or accident/conviction surcharge to theresulting premium.

Comprehensive/Specified Perils – Apply the Outside PrinceEdward Island exposure surcharge for physical damage to thepremium.

END 44 – Apply the Outside Prince Edward Island exposuresurcharge for Liability to the premium.

Trailers Liability, Accident Benefits, Uninsured Automobile –Determine the premium for the Towing Vehicle in accordance withRule 208:B above. Apply the appropriate Trailer percentage chargeto obtain the premium. Do not apply Outside Prince Edward Islandexposure, currency differential or accident/conviction surcharge. Ifthe trailer is the only vehicle on the policy, apply theaccident/conviction surcharge.

All Perils/Collision – Calculate the premium for the requiredcoverages and deductibles in accordance with Rule 208:A, plusany fleet rating surcharge or discount. Calculate Outside PrinceEdward Island surcharge for physical damage and apply to thepremium. Then apply any accident/conviction surcharge to theresulting premium.

Comprehensive/Specified Perils – Calculate the premium for therequired coverage and deductibles in accordance with Rule 208:A,plus any fleet rating surcharge or discount. Apply the OutsidePrince Edward Island exposure surcharge for physical damage tothe premium.


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