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Maryland Automobile Underwriting Rules and Guidelines

Revised October 28, 2015

Paramount Insurance Company

New Business Effective 10/28/2015 2 Paramount Insurance Company Renewal Business Effective 12/1/2015

Mailing Address: PO Box 47520

Paramount Insurance Company

Baltimore, MD 21244

Company website: www.paramountinsurancemd.com

Business Hours: 9:00AM to 4:15PM Monday – Friday

Business Hours: 9:00AM to 4:15PM

Monday – Friday

Claims Department Telephone Numbers: Baltimore Area (410) 944-6882 Outside of Baltimore (240) 533-3001 Fax Number: (410) 505-1717

Underwriting Department Binders and Customer Service: Telephone Numbers: Baltimore Area (410) 944-1267 Outside of Baltimore (240) 533-3000 Fax Number: (410) 505-1708

http://www.paramountinsurancemd.com/�


MARYLAND TABLE OF CONTENTS

Binders 4 Limits of Liability 5 Eligibility 5 Vehicle Acceptability 6 -Unacceptable Vehicles by Manufacturer 6 -Specific Unacceptable Vehicles 6 Unacceptable Risks 7 Proof of Maryland Ownership 7 Policy Expense Constant 8 Policy Period 8 Short-term Policies 8 Territory Definitions 9 Age Group Determination 9 Comprehensive and Collision Deductible Options 9 Driver Class 9 Preferred Class 10 Drivers 10 Phantom Driver 10 Inexperienced Drivers 11

Optional Coverages 11 -Towing & Labor 11 -Rental Reimbursement 11 -Full Window Glass 11 Discounts 12 Transfer Discounts 12 Safe Driver Discounts 13 Multi-Car Discounts 14 Business Use 15 Extra Hazard Surcharge 15 Applications 15 Voided Applications 17 Inspection of Vehicles 17 Sound Reproducing Equipment 17 Driving Records 18 At Fault Accidents 18 Point Surcharge 20 -Driving Record Surcharge 20 Exclusion Procedures 23 Endorsements 24 Cancellations 25 Rewrites and Reinstatements 27 Claims 28


BINDERS Obtaining Binders: Paramount writes 1 vehicle per policy. A binder will need to be obtained for each vehicle placed with Paramount. Binders are good for 30 days (unless a prior written agreement has been approved by Paramount Insurance Company). Binders with properly executed No Loss Letters will be considered with effective dates within the previous 60 days (See reinstatements). Electronic Binding (Internet Rating System Only): If you are using Paramount’s Internet Rating System, the New Business, Renewal & Re-Write application is AUTOMATICALLY BOUND in Paramount’s main computer system when you press the SUBMIT button. The binder number will be automatically placed on the Binder Declaration Page, Automobile Application, Exclusion Form, etc.

No further action is required to bind the policy.

Manual Binding (Hand-Written Applications Only): ALL BINDERS (New Business, Renewals & Re-writes) MUST BE CALLED OR FAXED

(see inside cover page for phone numbers) to Paramount at the time the application is signed and the premium or down payment has been paid to the producer. Binders will be effective the date and time called in (unless a later date is requested) and will expire at 12:01am on the 30th day following the effective date. ANY BINDER NOT CALLED OR FAXED TO PARAMOUNT WILL NOT BE EFFECTIVE UNTIL THE DATE RECEIVED IN PARAMOUNT’S OFFICE. Binders may not be extended.

All new binders issued are subject to a 45-day Underwriting Period (starting with the effective date of coverage) and may be cancelled if it does not meet our Underwriting Guidelines by sending the insured a cancellation notice to be effective no less than 15 days after the mailing of the notice.

Cancellation of Binders: If coverage was afforded under the binder, the earned premium and expense fee for the time the binder was in force MUST

be remitted to Paramount. Binders not received at Paramount’s office will be cancelled for Nonpayment to Paramount and the appropriate Cancellation Notice provided. If a binder is to be cancelled, a written request to cancel the binder must be faxed to Paramount, indicating the reason the binder is to be cancelled (duplicate binder, placed coverage elsewhere).

Binders will Expire if the appropriate paperwork (THE APPLICATION, MVR, LEGIBLE COPY OF THE MARYLAND MD TITLE OR MD REGISTRATION (IN THE OWNER’S NAME), AND A CHECK FOR THE APPROPRIATE PREMIUM) is not received in our office within 30 days after the binder is effective.


LIMITS OF LIABILITY

1. Statutory limits of 30/60/15 BI/PD and Uninsured Motorist limits equal to the BI/PD limits. Increased BI/PD limits may be available. UM does not have to equal BI/PD limits when BI/PD are above the minimum, but cannot be greater than the BI/PD limits (appropriate disclosure forms may be required).

2. Full Personal Injury Protection (PIP) must be provided unless a form is signed for Limited PIP. The PIP form MUST be completed in its entirety and signed by the applicant or the FULL PIP premium will be charged.

3. LIABILITY ONLY IS ACCEPTABLE (see #6 under Unacceptable Vehicles).

Comprehensive & Collision Coverage for vehicles over 20 years old are NOT acceptable – except for Preferred Class drivers with a 2yr or greater Safe Driver Discount. Model Years are calculated as of October 1st each year (example: in October 2013 – model years 2014-1994 are acceptable) ELIGIBILITY

In order to be eligible for coverage, the following rules apply: The applicant MUST

be the owner or co-owner of the vehicle being insured.

The applicant MUSTA. be a resident of (live in) the State of Maryland, unless military risk stationed in

Maryland;

:

B. have a VALID driver’s license or VALID Maryland learner’s permit (MUST be accompanied by an individual with a VALID Maryland driver’s license) at the time the application is written. Any applicant not having a VALID driver’s license or VALID Maryland learner’s permit MUST be excluded from the policy. Any other individual who regularly drives the vehicle and lives outside the household that is not eligible for coverage MUST

**Applications received without A and B listed above will be cancelled for non-qualified driver.

be excluded from the policy at the time the application is written.

The vehicle being insured MUST be registered in the State of Maryland and MUST

meet Paramount’s Underwriting Guidelines to be eligible for coverage.

A non-U.S. citizen licensed with a VALID Maryland

driver’s license and proof of Maryland residency is eligible for coverage.

Post Office Boxes are acceptable as a mailing address, however a garaging address MUST

be provided for rating purposes. If a policy has been written and the applicant moves out of state, we will send the proper cancellation notice since the application then becomes ineligible for coverage.

Leased vehicles (from leasing companies) may be written as long as a copy of the lease agreement is provided. There can be no outstanding premium due Paramount by the applicant(s).


VEHICLE ACCEPTABILITY Refer to the chart below for unacceptable vehicles by manufactuer and specific unacceptable vehicle by make and model. The following are unacceptable: 1. Any altered, customized or modified vehicles (includes cars, vans, pick-ups, or

SUV’s). 2. Vans or Pickups used for ANY type of delivery (see Business Use Surcharge on page

12). 3. Any vehicle valued higher than $50,000 (subject to reinsurance availability) (before any

rebates) based on the lesser of cost new (Not including tax, title, license, etc) or current N.A.D.A. value. Applies to Comprehensive and Collision coverages ONLY.

4. Liability Only is acceptable for ALL vehicles (regardless of symbol) unless the vehicle is on the “Specific Unacceptable Vehicles” chart listed below.

5. Collision coverage written without Comprehensive coverage. 6. Comprehensive and/or Collision coverage for any vehicle with a model year over 20

years old are NOT acceptable as new risks, but existing coverage may continue – except for Preferred Class drivers with a 2yr or greater Safe Driver Discount. Model years are calculated as of October 1st each year (example: in October 2013 - model years 2014 -1994 are acceptable).

7. Pick-up trucks and bans exceeding ¾ ton capacity. 8. Conversion Vans or Pick-ups (Acceptable for Liability only). 9. Vehicles used for commercial purposes. 10. Vehicles CAN NOT be rented or leased to others

11. Any vehicle

. We DO accept vehicles leased from leasing companies.

NOT12. Any vehicle registered in the State of Maryland as antique.

registered (titled) in the State of Maryland.

13. Motorcycles. 14. Dune buggies. 15. Vehicles equipped for racing or speed competition. 16. Two-seat sports cars. Any unacceptable vehicle sent to Paramount will be surcharged 7 points + 200% (UM and PIP Coverages not applicable).

UNACCEPTABLE VEHICLES BY MANUFACTURER

Alfa Romeo Lada MG Triumph Bertone Lancia Opel Yugo DeLorean Maserati Porsche

SPECIFIC UNACCEPTABLE VEHICLES 2-Seat Sports Cars Ford F350 Nissan NV Antique or Historic Vehicles Ford Transit Connect Nissan Z’s & ZX’s Chevrolet Corvette GMC G-Series Vans Pontiac Fiero Chevrolet G-Series Vans Honda CRX Scion/Toyota iQ Chevrolet Spark Honda CR-Z Smart Fortwo Dodge Ram Van Hummer (All) Subaru XT Dodge Sprinter Lexus LX’s Suzuki Samurai Dodge Stealth Mitsubishi 3000 Suzuki X-90 Ford E-Series Vans Nissan Armada Toyota Celica Supra


UNACCEPTABLE RISKS The following are unacceptable: 1. Comprehensive and Collision Coverage for vehicles over 20 years old are NOT

2. Any individual who DOES NOT possess a VALID driver’s license or VALID Maryland learner’s permit (

acceptable – except for Preferred Class drivers with a 2yr or greater Safe Driver Discount. Model years are calculated as of October 1st each year (example: in October 2013 – model years 2014 -1994 are acceptable).

MUST

3. Any individual with more than 7 points as defined by the Paramount Driving Record Surcharge Chart.

be accompanied by an individual having a VALID Maryland driver’s license).

4. Any individual with more than one D.U.I. or D.W.I. 5. Any individual with two(2) or more chargeable at fault accident. 6. Any risk for which ALL drivers are not Maryland residents, unless military risks

stationed in Maryland. 7. Applicants who have been convicted of insurance fraud, or who have given false

information on a previous application. 8. Physical Damage ONLY is not acceptable. PROOF OF MARYLAND OWNERSHIP Proof of Maryland ownership MUST

be provided with the application.

The following will be accepted as proof of Maryland ownership: • A valid Maryland registration (temporary or permanent) in the applicant’s name

(applicant MUST be owner or co-owner of the vehicle). Out-of-State registrations are NOT

• A Maryland title in the applicant’s name (applicant acceptable as proof of Maryland ownership.

MUST be owner or co-owner of the vehicle). Out-of-State titles or titles signed over are NOT

• Maryland bill of sale in the applicant’s name. Out-of-State bill of sales are

acceptable as proof of Maryland ownership.

NOT

• A Maryland Title/Registration Receipt from the Motor Vehicle Administration.

acceptable as proof of Maryland ownership.

If an application is received in one person’s name without proof of ownership, and then it is determined that a different person owns the vehicle once the policy has been issued, Paramount will need all new paperwork (Application, PIP Form, Driver Exclusion Form(s) (if applicable) and a No Loss Letter signed by the owner. A NEW policy number will then be given under the current owner and the old policy cancelled.


POLICY EXPENSE CONSTANT

(hereinafter referred to as “Expense Fee”) Liability and Physical Damage will each have an expense fee added to the developed premium (see chart below).

Expense fee will be pro-rated if the policy is cancelled.

POLICY PERIOD Annual term only (see Short Term Policies for exceptions). SHORT TERM POLICIES Paramount policies are written on a yearly basis. Short term policies MAY be written if the insured purchases an additional vehicle mid-term and wants to match expiration dates with an existing policy. These policies will be written on a pro-rata basis, with the total short-term premium calculated using the standard pro-rata premium calculation. Re-writes may also be written short-term.

If you are unsure of the correct pro-rata factor, please call our Underwriting Department. Expense Fees for short-term policies will be calculated in the following manner:

7 MONTHS TO 1 YEAR

LESS THAN 7 MONTHS

LIABILITY

PHYSICAL DAMAGE

$60

$70

$30

$35

7 MONTHS TO 1 YEAR

LESS THAN7 MONTHS

LIABILITY

PHYSICAL DAMAGE

$60

$70

$30

$35


TERRITORY DEFINITIONS Territory definitions are determined by zip code (see back page of this book). AGE GROUP DETERMINATION

Determination of the vehicle’s age group is by model year. COMPREHENSIVE AND COLLISION DEDUCTIBLE OPTIONS

For Comprehensive and Collision deductibles options, see the rate guide. If you need further assistance for any deductibles not shown, call our Underwriting Department. DRIVER CLASS

Liability Driver Class is based on Marital Status, Sex and Age. Rating will be based on the highest rated licensed driver (whether residing in the household or outside the household), even if that person is already rated with another insurance company. *SINGLE includes persons who are not married, widowed, divorced, separated or living apart from their spouse. Drivers who have a birth date within thirty (30) days of inception of the policy, where the driver’s class changes, will be rated based on the older age. Proof of Marriage is required when one of the following conditions exists (the insured will be rated as single until proof of marriage is received): When the insured and subsequent driver has different last names but listed as married on the application. When the insured is listed as married and the spouse does not live in the household or does not have a driver’s license. When the insured is listed as married and no spouse information is listed on the application. Proof of Marriage is also required for married males under 25 years of age or married females under 25 years of age. EXCEPTIONS WILL BE MADE IF THE CURRENT CARRIER DEC PAGE SHOWS MARRIED.


PREFERRED CLASS

The rated driver must be 30 years of age or older and must be validly licensed for a minimum of 24 continuous months. Drivers with a learner’s permit, suspended, revoked, or eligible status not acceptable for Preferred Class. A maximum of one minor violation (our Driving Record Surcharge C) per driver within the last 35 months for Physical Damage Coverage and a maximum of two minor violations (our Driving Record Surcharge C) per driver within the last 35 months for Liability Coverage. The rated driver must have been continuously insured for at least one year and have been offered a renewal with Paramount or another carrier. DRIVERS

Paramount requires that the following individuals be shown on EACH application:

• Vehicle Owner must be listed first on the application as the Named Insured but may be excluded as a driver.

• Co-Owner of the vehicle (if applicable) whether they are licensed or residing in the same household.

• Any individual age 14 or over who resides in the same household as the applicant, regardless if they drive the vehicle or not.

• Anyone who drives the vehicle not residing in the same household. • Any individual shown on the C.L.U.E. or similar Report as having driven the

applicant’s vehicle whether living in the same household or not. • Any individual shown on proof of prior insurance either as a driver or excluded

driver. • Any individual added from the Claims Department as either living in the household

or having driven the named insured’s vehicle. Individuals added to the policy will be rated on based on their Age, Points, and Driving Record. If the individual is the Highest Rated Driver, the policy will be rated on this driver and the policy premium re-calculated. Any individual on the policy not meeting Paramount’s Underwriting guidelines MUST be excluded from coverage. See Paramount’s Exclusion Producers. PHANTOM DRIVER A Phantom Driver will be used when there are more vehicles than drivers. Paramount will rate the correct Driver Class and Points on the highest rated vehicle; all subsequent vehicles with Paramount will be rated with a Phantom Driver (0 points).


INEXPERIENCED DRIVERS

Any driver who has a valid driver’s license (consisting of a valid regular and/or provisional license) for less than a total of 18 months shall be subject to an inexperienced driver point charge. Suspended or revoked licenses count towards the 18 months. OPTIONAL COVERAGES

Paramount offers the following coverages, each of which is only available for purchase at the original inception of the policy: Towing and Labor must be purchased at policy inception and cannot be added mid-term. Rental Reimbursement is subject to a maximum limit of 30 days or $1500, whichever is less. This benefit is payable with any Collision or Comprehensive claim. Payout per day is determined by the table above. Quote for any other coverage please call. For an additional premium, the deductible for glass breakage paid under comprehensive will be reduced to $0. Use the following table to determine the appropriate premium: Full Window Glass is NOT available on Liability only

policies.

You can increase your commission on the ENTIRE policy by an additional 2% by writing the usual Comprehensive and Collision along with our Towing & Labor, Rental Reimbursement AND Full Window Glass Coverage. ALL THREE coverages MUST

be written with the Comprehensive and Collision policy AT INCEPTION or RENEWAL in order to get the additional commission.

1. TOWING & LABOR: Annual Prem. - $12 Limit/Occur. - $50

3. FULL WINDOW GLASS:

Comp. Deductible Rate

$500 $55 $750 $63 $1000 $70

Comp. Deductible Rate

$100 $33 $250 $46 $350 $50 $400 $52

2. RENTAL REIMBURSEMENT: Annual Prem. - $35 $65 $130 $260 Limit/Day - $15 $25 $50 $100


DISCOUNTS If the “rated” driver has a violation or chargeable At Fault Accident, the discounts for new policies will be calculated in the following manner: Group A (7pts): Remove ALL

Safe Driver and Transfer Discounts;

Group B (5pts): No Change in Discounts; Group C (1,2pts): No change in discounts; Group F (At Fault Accident – 5pts) Remove 1 Safe Driver year (If transferring to Paramount, also reduce 1 Transfer Discount). For Paramount Renewals or Companions, we will penalize Safe Driver Discount only. TRANSFER DISCOUNTS

ANY vehicle being transferred from another carrier to Paramount is entitled to a Transfer Discount. Transfer Discounts above 1 year will always EQUAL the Safe Driver Discounts. Transfer and Safe Driver Discount year(s) are always the same above 1 year. For example, if getting a 2yr Safe Driver will get a 2yr Transfer. Refer to the Rate pages in this manual for the Transfer Discount percentages for Liability and Physical Damage. A newly purchased vehicle that does not have prior insurance is not entitled to a Transfer Discount. Transfer Discounts can be given if coverage is being transferred from a deleted vehicle to a new vehicle. When adding a second vehicle, if the second vehicle is not currently insured with another carrier, the Transfer Discount will not apply. Transfer Discounts apply to the following coverages: Liability Coverage Comprehensive and/or Collision Coverage. Transfer Discounts do NOT apply to Paramount Renewals.

They apply only to the first year coverage is transferring.


To qualify for the Transfer Discount, the POLICY MUST

meet the following requirements:

SAFE DRIVER DISCOUNTS

To qualify for any of the Safe Driver Discounts, an offer to renew from the previous carrier and/or declaration page(s) showing the appropriate period of time, must accompany

Refer to the Rate pages in this manual for the Safe Driver Discount percentages by Territory for Liability and Physical Damage.

the original application. Drivers who have been driving and licensed over 3 years with no chargeable accidents and/or violations but not owned their own cars, are deemed to have had prior insurance and entitled to the 1 year Safe Driver Discount.

Safe Driver Discounts apply to the following coverage(s) only: Liability Coverage Comprehensive & Collision Coverage. Discounts will not be endorsed on to policies after inception if proof of a renewal offer and/or declaration page(s), showing the appropriate period of time, is not provided with the application. Renewal quotations issued by Paramount will include all applicable discounts, BASED ON THE INFORMATION AVAILABLE AT THE TIME OF THE QUOTE

.

ADDING DRIVERS MID-TERM: If a request is received to add a Driver mid-term, his/her rates will be based on: -Driver Age -Driver Points -Chargeable accidents/violations in last 35 months prior to the effective date of being added to the policy. -Driver Safe Driver Discounts, if any If the new driver being added is the Highest Rated Driver, the policy will be rated on this driver and the policy premium re-calculated.

Discount Year

Policy MUST have

Must be eligible for a 1 year Safe Driver Discount and

transferring from another insurance carrier.

1 year



2 year



3 year

4 year

Must be eligible for a 4 year Safe Driver Discount and be transferring from another insurance carrier.


To qualify for the Safe Driver Discount, the RATED DRIVER MUST

meet the following requirements (unless such operator is the highest rated driver on another Paramount policy:

Discount Year Rated Driver MUST Have:

1 year

1 year prior coverage (no more than a 30 day lapse) and no A/B violations in the last 12 months. *Drivers who have been licensed over 3 years with no chargeable accidents or violations but not owned their owner cars, are deemed to have had prior insurance and entitled to the 1 year Safe Driver Discount.

2 year

2 year prior coverage (no more than a 30 day lapse) and no A/B violations in the last 24 months.

3 year


4 year


5 year

Paramount Renewal or Companion Policies Only – Transfer Discounts are not applicable. (1 year minimum with Paramount) 5 years total prior coverage.

6 year


7 year


MULTI-CAR DISCOUNT A Multi-Car Discount of 5% on Liability and 10% on Physical Damage will be applied to any risk insuring more than one vehicle in the same household, even if the other vehicles carry Liability Only with another carrier

.

To apply the discount, please provide a copy of the current valid registration for the vehicle. If the other vehicle is already insured with Paramount, refer to the current policy number so that the discount can be applied to both policies. Two or more vehicles written at inception: All policies will be given a 5% Liability and 10% Physical Damage discount. Second or subsequent vehicle added mid-term: Both vehicles will receive a 5% Liability and 10% Physical Damage discount effective the date of the addition of the second or subsequent vehicle. If the second vehicle is for short term, the pro-rata premium will apply. When rating multiple cars, please assign the highest rated driver to the highest rated car. When there are more vehicles than drivers, the unassigned vehicle or vehicles are rated Preferred Class with 0 points (Phantom Driver).


Multi-car Discounts will be removed at renewal if the other vehicle is insured with another company, unless Proof of insurance on that vehicle is provided. We will accept copies of declaration pages from other carriers as proof of Multi-Car Discount. BUSINESS USE A 20% Business Use Surcharge is applicable to any vehicle used in business (not including commuting to and from work). Example are: Pizza Delivery (including part time), Sales People, etc. See #2 under Unacceptable Vehicles on page 3. EXTRA HAZARD SURCHARGE An Extra Hazard Surcharge of 20% will apply on all convertibles to Comprehensive and Collision Coverage. APPLICATIONS Paramount writes 1 vehicle per policy. A NEW APPLICATION and supporting paperwork IS REQUIRED for EACH VEHICLE placed with Paramount. All NEW

applications are subject to a 45-day Underwriting Period. The Underwriting Period starts on the POLICY EFFECTIVE DATE.

Applications MUST be cancelled during this 45-day Underwriting Period if: • Any or all risks on the policy do not meet our Underwriting Guidelines • The application is missing paperwork of ANY• Any application that has an Additional Premium

kind, or

Once an application meets our Guidelines, any missing paperwork is received and all money is received, the policy can be taken back to its original Policy Effective Date with a Signed No Loss Letter.

ELECTRONIC APPLICATIONS (Internet System):

The following documents must be received by paramount during the 30 day binding period

:

APPLICATION: Page 1 and 2 of the Maryland Automobile Insurance Application signed by the OWNER or CO-OWNER (NAMED INSURED(S)) of the insuring vehicle. PLEASE GIVE THE BINDER DECLARATION PAGE TO THE INSURED. PIP FORM: the form is automatically generated when the application is bound. It must be signed by the OWNER or CO-OWNER (NAMED INSURED(S)) of the insuring vehicle. EXCLUSION FORM: this form is automatically generated when the application is bound. It must be signed by the OWNER or CO-OWNER (NAMED INSURED(S)) of the insuring vehicle. FINANCE AGREEMENT: include a copy with the application.


NO LOSS LETTER: This form is automatically generated when you enter an effective date that is prior to TODAY’s DATE. It must be signed by the OWNER or CO-OWNER (NAMED INSURED(S)) of the insuring vehicle. DISCOUNT PAPERWORK

MARYLAND REGISTRATION, MARYLAND TITLE OR MARYLAND BILL OF SALE: a CURRENT copy MUST be included with the application.

: Provide any paperwork that will provide proof of the discount you chose on the application screen.

CHECK for FULL PREMIUM: MUST

be included with the application.

Any documentation submitted with the application must be completed in its entirety and signed by the applicant (owner or co-owner of the vehicle). MANUAL (HAND-WRITTEN) APPLICATIONS

:

In order to facilitate processing in the timeliest manner possible, all areas of the application must be COMPLETED IN ITS ENTIRETY

. This includes, but is not limited to, the following:

• NAMED INSURED• The applicant (named insured) MUST be the owner or co-owner of the vehicle.

;

• The original application must be COMPLETED IN ITS ENTIRETY (address, occupation and employer, phone numbers of both home and work of the owner), and MUST be SIGNED and DATED

• THE NAMED INSURED by the applicant.

MUST MATCH THE MARYLAND REGISTRATION, MARYLAND TITLE, OR MARYLAND

• BILL OF SALE.

LOSS PAYEE:

•

List the full name and address for the lienholder of the vehicle (if applicable). This is MANDATORY on all vehicles 4 years old and newer. POLICY PERIOD:

•

List BOTH policy inception date and expiration date on the application. COVERAGES: Fill in ALL coverages being purchased. Remember, the optional coverages can only be added at inception or at renewal. PHYSICAL DAMAGE ONLY is NOT acceptable

•

. Full Window Glass is not available on Collision Only or Liability Only policies. DRIVER INFORMATION: Paramount REQUIRES the names of the owner, co-owner, ALL persons 14 and over residing in the same household (licensed or not), and any other driver, regardless of residency. See the Drivers Section on page 7 for individuals who should be listed on the application. A copy of the MVR on all drivers listed on the application and an MVR on all members of the household must accompany the application

•

. If a driver or a member of the household is to be excluded or does not meet Paramount’s eligibility requirements, we need an exclusion form signed by the applicant (see page 21 for Exclusion Procedures). If the producer gets a “no hit” record from the MVA for an operator who produced a valid Maryland license, we will need a copy of the license and the no hit record from the MVA. Paramount will charge 3pts for any unverifiable driving record. ACCIDENTS/VIOLATIONS:

•

Paramount requires that the month, day, and year of all accidents and violations, including out of state, be shown. VEHICLE IDENTIFICATION NUMBER: MUST

• be shown clearly and accurately.

VEHICLE RATING INFORMATION: Year, make, model (including 2dr or 4dr), symbol and vehicle age MUST

be written clearly on the application.

The following documents must be received with the application during the 30-day binding period:


• PREMIUM FINANCE AGREEMENT (if applicable) • CHECK for the FULL PREMIUM matching the application (less commission, if

applicable); • MOTOR VEHICLE REPORTS (MVRS) on ALL DRIVERS• Any paperwork necessary to give the Safe Driver and/or Transfer Discount;

;

• Signed EXCLUSION FORM (if applicable for ANY driver in the household not having a VALID driver’s license, or ANY driver (whether living in the household or not) who does not meet Paramount’s Eligibility Requirements.

• A copy of the MARYLAND REGISTRATION, MARYLAND TITLE, and/or MARYLAND BILL OF SALE IN THE APPLICANT’S NAME (showing the applicant as the owner or co-owner of the vehicle);

Exclusion forms must include the appropriate policy number(s) and completed in its entirety;

• Signed PIP Form. The PIP Form MUST be COMPLETED IN IT’S ENTIRETY and SIGNED BY THE APPLICANT (OWNER OR CO-OWNER OF THE VEHICLE) or the Full PIP Premium will be charged. PIP Forms MUST

include the policy number.

**If PIP is to be changed at Renewal, a NEW PIP FORM with the correct PIP Coverage checked MUST

be received with the Renewal Application and MUST be signed by the Named Insured. If this form is not included with the Renewal Application, PIP Coverage will remain the same until the new form is received.

VOIDED APPLICATIONS Paramount does NOT void applications, binders or policies. To cancel a binder, please refer to the “Cancellation of Binders” Section on page 1 of this manual. To cancel a policy, please refer to the “Cancellations” Section. INSPECTION OF VEHICLES

Usually inspections of the vehicle are not required. Applications requesting Liability and Comprehensive only may require proof of condition on cars over 10 years old (photos, agent statement of vehicle condition, etc.).

SOUND REPRODUCING EQUIPMENT

Coverage is excluded unless the equipment is permanently installed by the manufacturer.

Paramount reserves the right to change the quoted premium to a developed premium on all applications (electronic and hand-written).


DRIVING RECORDS

It is suggested that you determine the proper rate for all drivers of the vehicle from their driving record BEFORE

you submit the application to the company.

You MUST send a copy of the driving records of ALL

driver’s listed on Paramount’s application (for hand-written applications ONLY).

Any unverifiable driving record will be charged 3 points. Charges (points) for chargeable accidents and/or moving violations are for incidents that occurred within the immediate 35 mo. period prior to the effective date of the policy. AT FAULT ACCIDENTS All chargeable at fault accidents are charged at the inception of the policy and at renewal. Accidents cannot be charged mid-term. Please see the current rate book for the points assigned each at fault accident. If adding an additional vehicle mid-term, that policy is subject to all normal Underwriting Guidelines. Accidents cannot be charged mid-term UNLESS a request has been received to add a driver to a policy, or an exclusion on a previously excluded driver is being lifted (see “Lifting an Exclusion” procedures). Any added driver(s) or previously excluded driver(s) will be rated on the highest rated policy with all applicable violations and/or accidents and will be subject to all applicable discounts, if any.

Paramount uses Loss and/or accident information reports such as C.L.U.E. (Comprehensive Loss Underwriting Exchange) to determine at fault accidents. At fault accidents are charged for: Any accident involving total Property Damage and/or Bodily Injury in excess of $750 unless the insured or company was reimbursed by or on behalf of the other party. Accidents payable under UM, UN, UMPD or payment made under Medical Payment or PIP Coverage are not chargeable. Claim Types as specified on the C.L.U.E. reports are indicated as follows: CO = Collision CP = Comprehensive UN = Underinsured Motorist BI = Bodily Injury ME = Medical Expenses TL = Towing & Labor PD = Property Damage MP = Medical Payment RR = Rental Reimbursement PI = Personal Injury Protection UM = Uninsured Motorist OT = Other

Current Policyholders:


Paramount will offer a Discount to any policyholder CURRENTLY insured with Paramount Insurance Company

at renewal, who has had no more than one chargeable At Fault Accident or Group B violation (5pts) during the policy year. The maximum discount is 7 year.

The Discount for CURRENT policyholders will be applied to the renewal policy in the following manner:

*Preferred Class will be removed on the renewal policy.

Paramount will offer a “B” Violation Discount to any New Business policy transferred to Paramount from another company with a MINIMUM two years continuous insurance coverage and no more than one Group “B” violation or At Fault Accident.

New Business Policies:

The Discount for NEW BUSINESS policies (adding an additional vehicle or transferring in from another carrier) will be applied to the new policy in the following manner: *Policies being transferred from another carrier will be eligible for a Transfer Discount equal to the Safe Driver Discount.

6 Year Safe Driver Discount

5 Year Safe Driver Discount + 5pts*

CURRENT PARAMOUNT POLICY

RENEWAL POLICY












No Safe Driver Discount + 5pts*

CURRENT POLICY

PARAMOUNT POLICY








POINT SURCHARGE TABLE

Refer to the following Driving Record Surcharge chart to determine points in the experience period. Group “C” Violations: Paramount charges 1 point for the FIRST moving violation, 2 points for EACH ADDITIONAL

moving violation.

Group “B” Violations: Paramount charges 5 points for the first (1) moving violation, 5 points for EACH ADDITIONAL

Group B Violation.

Group “A” Violations: Paramount charges 7 points for the first (1) moving violation PLUS REDUCES THE SAFE DRIVER DISCOUNT TO -0- (none), and charges 7 points for EACH ADDITIONAL

Group A Violation.

Group “F” Violations (Chargeable At Fault Accidents): Paramount charges 5 points PLUS REDUCES THE CURRENT SAFE DRIVER AND TRANSFER DISCOUNT (if applicable) for the FIRST chargeable at fault accident, and 5 points for EACH ADDITIONAL

chargeable at fault accident.

Individuals with more than 7 points (as defined by the chart below) are unacceptable.

Driving Record Surcharges

Group Description Pts Code ENT HWY FROM/CROSSOVER W/O YIELD RIGHT OF WAY

Code 1 C FTY

ENT/EMERGE FROM ALLY/DRWAY/BLDG W/O STOP 1 C FTY FAIL TO EXERCISE DUE CARE FOR PEDESTRIAN 1 C FTY FAIL TO SOP/YIELD AT INTERSECTION/THRU HWY 1 C FTY FAIL TO STOP AND PROCEED SAFELY AT RR 1 C FTY FAIL TO STOP FOR PEDESTRIAN CROSSING IN CROSSWALK 1 C FTY FAIL TO STOP,GRANT BLIND DEAF PED RIGHT OF WAY 1 C FTY FAIL TO STOP/YIELD WHEN ENTERING HWY 1 C FTY FAIL TO YIELD RGHT MAKING LEFT OR U TURN 1 C FTY FAIL TO YIELD RGHT OF WAY AT INTERSECTION 1 C FTY FAIL TO YIELD RGHT OF WAY AT T INTERSECTION 1 C FTY FAIL TO YIELD RIGHT OF WAY TO EMERG VEHICLE 1 C FTY FAIL TO YIELD RIGHT OF WAY TO FUNERAL 1 C FTY FOLLOWING ANOTHER VEH TOO CLOSELY 1 C FTY DR VEHICLE IN VIO OF LIC RESTRICTION 1 C LIC DR/ATMPT TO DR MV ON HWY WITH EXP LIC 1 C LIC DR/ATMPT TO DR MV ON LEARNERS W/O SUPERV 1 C LIC DR/ATMPT TO DR MV WITH IMPROPER CLASS LIC

1

C

LIC


FAIL TO CARRY/DISP LIC GIVE FALSE IDENTITY 1 C LIC CROSS PROP-LEAVE ROADWAY AVOID TRAF CTRL DEV 1 C MOV DR A MOTOR VEH ON A SIDEWALK 1 C MOV DR A VEH WITH VIEW OBSTRUCTED/NOT IN CTRL 1 C MOV DR IMPROPERLY ON DIVIDED HWY 1 C MOV DR IN IMPR MANNER TO CAUSE SKID/SPIN WHL 1 C MOV DR ON CNTL ACCESS HWY WHEN PROHIBITED 1 C MOV DR TO LEFT OF CNTR OF RD WHERE PROHIBITED 1 C MOV DR TO THE LEFT IN A NO PASSING ZONE 1 C MOV DR VEH ON HWY WHILE CONSUMING ALCOHOL 1 C MOV DRIVE MOTOR VEH IN NEGLIGENT MANNER 1 C MOV FAIL TO DR ON EXT RIGHT SIDE OF RD 1 C MOV FAIL TO DR ON RD IN DESIGNATED LANE 1 C MOV FAIL TO OBEY A LANE OF DIR CONTROL SIGNL 1 C MOV FAIL TO STOP AT RED TRAF SIG B4 RT TURN 1 C MOV FAIL TO STOP AT STEADY CIRC RED SIGNAL 1 C MOV FAIL TO STOP FOR VEH OPER FLASH RED LTS 1 C MOV IMPR PASSING/FAIL PERMIT VEH TO PASS 1 C MOV PASSING ON RGHT WHEN NOT PERMITTED 1 C MOV UNSAFE BACKING OF MOTOR VEH 1 C MOV WILFULY DISOBEY ORD-DIR-SUMONS OF OFFICR 1 C MOV ILLEGAL CELL/MOBILE PHONE; GENERALLY 1 C MOV TEXTING VIOLATIONS 1 C MOV COAST DWNGRADE IN NEUTRAL W/CLUTH DISENG 1 C MSC DR KNOWINGLY PERM VEH DR W/O REQ SECURIT 1 C MSC DR OVER UNPROTECTD FIRE HOSE W/O CONSENT 1 C MSC DR PASSENGER VEH WITH IMPR PROJECTG LOAD 1 C MSC DR/DAMAGING HWY ROADWAY NOT OPEN TO PUBL 1 C MSC DR/MOVE HEAVY EQUIP VEH ON/ACROSS RR 1 C MSC DRIVING THRU/IN A SAFETY ZONE 1 C MSC DROP/THROW/PLACE TRASH INJ SUBST ON HWY 1 C MSC DRV/TAKING VEH WITHOUT OWNERS CONSENT 1 C MSC FAILURE BY OWNER TO MAINTAIN REQ SECURIT 1 C MSC FOLLOW OR PARK WITHIN 500FT FIR APPARATS 1 C MSC KNOWINGLY PERMIT UNAUTH PERSON TO DR VEH 1 C MSC OPEN/FAIL CLOSE DOOR WHEN UNSAFE 1 C MSC PERM/OCCUPY MOB HOME BEING TOWED ON HWY 1 C MSC PLACING TRAFFIC HAZARD ON HWY 1 C MSC UNAUTHORIZE ENT/LEAVNG CNTRL ACCESS HWY 1 C MSC VIOLATE SPECIAL PROV DR THRU TUNNEL 1 C MSC DR AT SPEED NOT REASONABLE AND PRUDENT 1 C SPD DRIVE BELOW MIN POSTED SPEED LIMIT 1 C SPD EXCEED SPEED LIM/FAILURE TO REDUCE SPEED 1 C SPD EXCEED MAX SPEED BY 1-9 MPH 1 C SPD


EXCEED MAX SPEED BY 10 MPH 1 C SPD FAIL TO MAINTAIN PSTD MIN SPD ON VEH CRS 1 C SPD FAIL OBEY SIGN/SIGNL/ORDER DIR AT VEH CR 1 C STP FAIL TO OBEY FLASHING TRAFFIC SIGNAL 1 C STP FAIL TO OBEY STOP SIGN AT RR GRADE CROSG 1 C STP FAIL TO OBEY TRAFFIC CONTROL DEVICE 1 C STP FAIL TO OBEY TRAFFIC SIGNAL/SIGN 1 C STP FAIL TO STOP AT RR WHEN CARRNG PASS/CARG 1 C STP FAIL TO STOP AT STOP SIGN/YIELD AT YIELD 1 C STP FAIL TO STOP FOR LIVESTOCK AT LS CROSSNG 1 C STP FAIL TO STOP/PASSING SCH VEH FLASH WARN 1 C STP FAIL TO USE HAND/ARM SIGNL WHEN REQ 1 C TRN IMPROP HAND/ARM SIGNL TO STOP/TURN 1 C TRN MAKE A PROHIB TURN ON VEH CROSSNG/CROSOV 1 C TRN MAKE U TURN ON CURV/CREST/GRADE W/PROHIB 1 C TRN START/MOVE VEH UNSAFELY W/O GIVING SIGNL 1 C TRN UNAUTH TURNING/SLOWING/STOPP W/O REQ SIG 1 C TRN USE IMPROPER POSITION/METHOD MAKING TURN 1 C TRN UNVERIFIABLE DRIVING RECORD 3 D UDR INEXPERIENCED DRIVER 3 E INX DR AFTER LIC REF/CANC/SUSP/REVOKED 5 B REV DR WHILE LIC DRIVING PRIV SUSPENDED 5 B REV DR WHILE LIC SUS/REF/REV IN ANOTHER JURS 5 B REV DR/ATMPT TO DR MV/MC ON HWY W/O LICENSE 5 B REV DRIVE MOTOR VEH IN RECKLESS MANNER 5 B RKD EXCEED MAX SPEED BY 30 MPH 5 B RKD FAIL TO CNTRL/REDUCE SPD TO AVOID ACC 5 B RKD DR ACR CNTR LINE/FAIL TO DR RGHT OF RD 5 B WWO FAIL TO DR IN DESIGNATED DIRIEC ONE WAY 5 B WWO DR PARTIC AS TIME KEEPR IN RACE/SPD CTST 7 A DRG DR/ATMPT TO DR UNDER INF DRUGS/ALCOHOL 7 A DUI DR/ATMPT TO DR WHILE INTOXICATED 7 A DUI DR/ATMPT TO DR WHILE UND INFL OF ALCHL 7 A DUI DR/ATPMT TO DR UNDER INF CNTRL DANG SUBS 7 A DUI FLEEING/ATTEMPT TO ELUDE POLICE OFFICER 7 A FLE TURNING OFF VEH LGHTS TO AVOID IDENTIFTN 7 A FLE FRAUD IN APPL FOR LIC MISUSE LIC TO DRIV 7 A FRD DR FAIL STOP/REMAIN AT ACC OF INJ/DEATH 7 A HAR DR FAIL TO STOP/GIVE INFO ACC UNATT VEH 7 A HAR DR FAIL TO STOP/REMAIN AT PROP DAMG ACC 7 A HAR HOMICIDE BY MOTOR VEH WHILE INTOXICATED 7 A HOM MANSLAUGHTER BY AUTOMOBILE 7 A MSL


EXCLUSION PROCEDURES

Who to Exclude: Any individual residing in the household without a VALID Maryland Driver’s License (SUSPENDED, REVOKED, or ELIGIBLE license) MUSTAny individual (whether residing in the household or not) who drives the insured vehicle and who fails to meet Paramount’s Eligibility Requirements

be excluded from coverage.

MUSTAny individual the named insured wishes to exclude from coverage that resides

be excluded from coverage. in

Any individual the named insured wishes to exclude from coverage that resides

the household can be excluded (rate drivers or exclude drivers).

outside

the household can be excluded.

Any individual added by Paramount from a C.L.U.E. Report who does not meet Paramount’s Eligibility Requirements will create a minimum 15 day cancellation on the policy if added during the 45-Day Underwriting Period. How to handle driver exclusions: Fill out the exclusion form in its entirety. If an insured has more than 1 policy, an exclusion form should be filled out for each policy OR include ALLWe do NOT automatically exclude drivers on each policy if only 1 form or 1 policy is shown. Exclusions are applicable to ALL

of the insured’s policy numbers on the same exclusion form.

future

Names CANNOT be crossed out on the Exclusion Form (see “Lifting an Exclusion” below).

policies with Paramount unless we are notified IN WRITING to lift the exclusion (see “Lifting an Exclusion” below).

The exclusion form MUST

be signed by the applicant (owner or co-owner of the vehicle).

If a request is received to exclude a driver on an existing Paramount policy, and that driver has had a claim, the exclusion will be effective the day AFTER

the loss occurred.

Lifting an Exclusion: Any individual that has been excluded and wishes to be covered at a later date:

• MUST

•

meet all of Paramount’s eligibility requirements. Proof of eligibility will be required before an exclusion can be removed. MUST

be added back onto the policy by endorsement only, by written request, subject to approval by Paramount, before coverage can be provided to any individual that had been previously excluded. Crossing off names from a Driver Exclusion Form does not void the Exclusion.

If a previously excluded driver becomes the Highest Rated Driver, the policy will be re-rated accordingly and a bill will be sent.

Paramount has the right to use the exclusion date requested or to use another date.

ADDING DRIVERS MID-TERM: If a request is received to add a Driver mid-term, his/her rates will be based on: -Driver Age -Driver Points -Chargeable Accidents/violations in last 35 months prior to the effective date of adding the driver.


If an endorsement is generated by the agent and the policy premium needs to be adjusted, any additional premium due will be handled like any other addition to the policy.

ENDORSEMENTS

Change requests are to be received within 30 days of the date the agent is notified by the insured. If we receive the request past 30 days, the postmark date or the date received will be used as the effective date. An endorsement change form should be filled out for any changes on the policy. We will bill for an increase in premium unless the policy is to expire within 60 days. In this case, a check for the additional premium MUST

accompany the endorsement or the endorsement will not be processed.

To change a driver from “suspended” to “valid”, we require a copy of the reinstatement letter from the MVA, showing the reinstatement of the license. Paramount does not automatically adjust the driver classification. We require that the producer of the policy send us a written request. This also applies to marital status. A copy of the marriage license is required, along with a change request. If the new driver being added is the Highest Rated Driver, the policy will be rated on this driver the policy premium re-calculated. COVERAGE: If coverage is added to a policy after issuance, such as adding Physical Damage to a Liability Only policy, a check MUST accompany the request for change, and MUST

include the insured’s signature (this also applies to deleting coverage). If PIP is changed from FULL to LTD, the coverage date is the date received in the office.

Full Window Glass, Towing & Labor, and Rental Reimbursement Coverages can only be added at the time of the inception of the policy or on the renewal date or when changing vehicles. DEDUCTIBLE: To raise deductibles on the policy, the insured’s signature MUST

accompany the change request.

VEHICLE CHANGES: If there is a change in vehicle, the vehicle that is being added will not be covered if we are not notified within 30 days of the change. If an additional vehicle is being added, we require a new binder be called in. This must be followed up with a

We will bill for an increase in premium unless the policy is to expire within 60 days. In this case, a check for the additional premium MUST accompany the exclusion or the exclusion will not be lifted.

ADDING DRIVERS MID-TERM: If a request is received to add a Driver mid-term, his/her rates will be based on: -Driver Age -Driver Points -Chargeable Accidents/violations in last 35 months prior to the effective date of adding the driver.


completed application and a check. When there is a change in vehicle and the new vehicle is in another person’s name, the current policy will be cancelled and a new policy started. The new owner MUST

sign a new application and ALL APPROPRIATE FORMS.

LIENHOLDERS:1. A copy of the clear title, or

To remove a Lienholder from a policy, Paramount will need:

2. A letter from the Lienholder (on their letterhead) authorizing removal. We will no longer accept requests to remove Lienholders without one of the documents listed above. CANCELLATIONS

Cancellations are effective 12:01am on the date of cancellation. Once a cancellation is received by Paramount, it MUST

be processed.

UNDERWRITING PERIOD CANCELLATIONS: All NEW

applications are subject to a 45-day Underwriting Period. The Underwriting Period starts on the POLICY EFFECTIVE DATE.

Applications MUST be cancelled during this 45-day Underwriting Period if: Any or all risks on the policy do not meet our Underwriting Guidelines The application is missing paperwork of ANYAny application that has an Additional Premium

kind, or

Once an application meets our Guidelines, any missing paperwork is received and all money is received, the policy can be taken back to its original Policy Effective Date with a Signed No Loss Letter. 15 Day Cancellation (Underwriting Period Cancels):

This is for non-qualified driver (1 person on the policy only), non-qualified vehicle. This type of cancellation is company generated and is cancelled pro-rata.

45 Day Cancellation (Underwriting Period Cancels):

This is for non-qualified driver (only if there is more than 1 driver on the policy). This type of cancellation is company generated and is cancelled pro-rata.

Equity Cancel (Cancel Carry):

This is for non-payment of an additional premium to Paramount Insurance Company. This type of cancellation is company generated and is cancelled pro-rata.

**IF A POLICY IS CANCELLED BY PARAMOUNT FOR MORE THAN 1 REASON, WE WILL USE THE EARLIEST CANCEL DATE. Example: non-qualified driver (45-day cancel) and additional premium (equity cancel) – a 45-day notice will be issued since this cancel comes first.**


Premium Finance Cancellations: We will honor Premium Finance request date as long as we receive the request in our office within thirty (30) days of the requested cancel date. If the request is received after the thirty (30) days, we will cancel the policy using the postmark date. On faxed cancels, we look at the date on the top of the faxed copy. This type of cancel is pro-rata and a gross check is sent to the finance company of record. The agent will owe Paramount Insurance Company the unearned commission

.

Insured’s Request to Cancel: We need either the insured’s copy of Paramount’s declaration page, or a written request signed by the insured, advising the effective date and reason for the cancellation. This type of cancel is pro-rata

. We will accept tag return receipts from the Motor Vehicle Administration to cancel insured’s request without a signature from the insured.

10 Day Cancellation:

This is for non-payment of an additional premium to Paramount Insurance Company. This type of cancellation is company generated and is cancelled pro-rata.

Flat Cancellation:-the insured’s down payment check bounces. We require a copy of the front and back of the bounced check. We will immediately or on the next business day, send written notice by Certificate of Mail stating that the check or other remittance for the initial down payment was not honored on presentation to the financial institution. We will continue or reinstate the policy or binder without a lapse in coverage if: the financial institution erroneously failed to honor the check or other remittance and you promptly notify us of the error and provide documentation of the financial institutions error to us as it becomes available and upon our request, or you or any secured creditor pays us the amount of the initial premium within five (5) business days after we sent notice that the check or other remittance for the initial premium was not honored.

There will be no flat cancellation after inception of the policy, unless:

-if we receive proof of duplicate coverage with the same effective date and we receive the request within thirty (30) days. -Proof that insurance was in force with another carrier at the time of issue. -Request to cancel the policy is received prior to the effective date of the policy -Policy bound but insured did not take possession of the vehicle.(Dealer letter required) Rescinding Cancellations: Paramount does not rescind cancellations. If the policy has been cancelled in error, we will handle it just like any other reinstatement. We require a letter stating this along with proof of payment made prior to the cancel date. This means a copy of the payment log, copy of money log that was taken in for that date, copy of the receipt given to the insured, along with copies of the receipt before and after the insured’s receipt and a signed No Loss Letter back to the Cancellation Date will be required.


REWRITES AND REINSTATEMENTS

Re-writes:

Policies can be rewritten, with a lapse in coverage, on a pro-rata basis. A binder must be obtained on all rewrites. Re-Writes entered online thru our electronic system will be bound automatically. Discounts will remain in effect if the Paramount policy is rewritten within six (6) months of cancellation**. Loss of 1 year discounts will apply if the policy is rewritten after six (6) months of cancellation unless there has been continuous insurance or no need for insurance during that period**. **Unless you’ve had a chargeable at fault accident or violation during the policy period.

Reinstatements:

A policy must be acceptable to Paramount in order to reinstate. Paramount has the right to reject or deny any reinstatement requested. Paramount also has the right to have a No Loss Letter or Named Driver Exclusion at any time prior to the reinstatement being approved. Requests for reinstatement MUST be received within 60 days of the effective cancel date. After 60 days, Paramount reserves the right to deny any reinstatement request. Reinstatement requests must be submitted with the Return Premium and a signed No Loss Statement.

Premium Finance Cancellations: Policies cancelled for non-payment to the Premium Finance Company will be reinstated without a lapse in coverage if:

1. Payment is made to the Premium Finance Company 2. The return premium check is returned to Paramount. Any additional premiums on

the policy MUST be paid at the time of rewrite or reinstatement; 3. A No Loss Letter is signed by the insured for the cancellation date (policy number

MUST be on the No Loss Letter); and 4. A request is received from the Premium Finance Company to reinstate the policy.

If ANY of the above items are missing and not received within 30 days, the policy will remain cancelled.

PLEASE NOTE: IF AN INSURED CANNOT SIGN A NO LOSS LETTER DUE TO AN ACCIDENT, THE POLICY WILL NOT BE REINSTATED.


Cancellation for Nonpayment to Paramount: Policies cancelled for non-payment to Paramount Insurance Company will be reinstated, without a lapse in coverage, if within 60 days of cancellation:

1. Payment for the additional premium is received by Paramount; 2. The return premium check is returned to Paramount; and 3. A No Loss Letter is signed by the insured for the cancellation date (policy number

MUST be on the No Loss Letter), or proof is received that the additional premium was paid PRIOR TO the cancellation date.

Missing Information or Non-Qualified Driver Cancellations: Policies cancelled for Missing Information, Non-Qualified Driver will be reinstated without a lapse in coverage if:

1. The missing information or completed signed exclusion is received; 2. The return premium check is returned to Paramount. Any additional premiums on

the policy MUST be paid at the time of rewrite or reinstatement; and 3. A No Loss Letter is signed by the insured for the cancellation date if the missing

paperwork is received after the cancellation date (policy number MUST be on the No Loss Letter). If the proof is received PRIOR TO the cancellation date, a No Loss Letter is NOT required.

CLAIMS

All accidents or losses should be immediately reported to Paramount’s Claim department: by telephone either by your office or the insured directly. Even if the insured indicates they will report the event, if the agent is aware of a loss, the agent should notify Paramount as soon as possible, in case the insured has not reached us directly. This notice from the agent can be by email. Call (410) 944-6882 in the Baltimore Area or (240) 533-3001 outside of Baltimore. Claims can be reported Monday through Friday from 9:00am until 4:15pm. If you are calling to report a claim during non-business hours, you will receive a recording asking you to leave your name and telephone number where you may be reached during the day. A representative will contact the insured the next business day to take the report.

maryland - paramount insurance company book verbiage final copy...must be registered in the state of...

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